BTr partially awards seven-year bonds as rate rises on inflation

October 6, 2021 | 12:02 am

THE BUREAU of the Treasury made a partial award of the reissued seven-year bonds as its rate climbed. — BW FILE PHOTO

THE GOVERNMENT partially awarded the reissued Treasury bonds (T-bonds) it offered on Tuesday as the tenor’s rate increased following the release of data showing inflation exceeded the central bank’s target last month.

The Bureau of the Treasury (BTr) raised just P15.58 billion via the reissued seven-year T-bonds it auctioned off on Tuesday, less than half of the programmed P35 billion, even as the tenor attracted P52.79 billion in total bids.

The notes, which have a remaining life of six years and 10 months, fetched an average rate of 4.207%, 38.1 basis points higher than the 3.826% quoted when the series was last offered on Sept. 21.

Had the Treasury made a full award of its offer on Tuesday, the reissued bonds would have fetched an average rate of 4.276%.

The average rate fetched for the seven-year papers on Tuesday was also higher than the 3.9089% quoted for the tenor at the secondary market prior to the auction, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters that the tenor’s rate rose significantly following the release of September inflation data.

Headline inflation stood at 4.8% in September, slowing from the 4.9% logged in August but faster than the 2.3% print recorded in the same month last year, the Philippine Statistics Authority reported on Tuesday.

The latest figure is below the 5% median in a BusinessWorld poll conducted late last week and is at the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP) for the month.

Inflation averaged at 4.5%, still above the BSP’s 2-4% target and 4.4% forecast for this year.

A bond trader said in a phone interview that inflation breached the BSP’s target again last month even as the print fell below market expectations, causing the seven-year debt’s rate to rise.

The US Federal Reserve’s hints on its plan to taper its asset purchases and raise rates also affected local yields, the trader added.

The Fed last month said it could start reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.

The BTr is looking to raise P200 billion from the local market this month: P60 billion from weekly offers of Treasury bills and P140 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — Jenina P. Ibañez

Thousands of safety seals given to establishments

October 6, 2021 | 12:02 am

THE government issued safety seal certifications to 43,332 public and private establishments nationwide as of Oct. 1 under a certification program that seeks to help reduce the spread of the coronavirus disease 2019 (COVID-19).

In a joint statement by several departments on Tuesday, Trade Secretary Ramon M. Lopez urged more businesses to adopt the safety seal since it boosts the confidence of consumers to go out and avail of their services.

Under the certification program, businesses that have the safety seal display their compliance to minimum public health standards set by the government.

“Businesses can do their share in the fight against the pandemic and create a healthy space for consumers to transact their purchases and for employees to gainfully and safely earn a living,” Mr. Lopez said.

Under Joint Memorandum Circular No. 21-01 involving the departments of Trade, Health, Interior and Local Government, Labor and Employment, and Tourism, a business establishment can apply for a safety seal as long as it is registered, uses any government-mandated digital contact tracing application, and implements minimum health protocols.

Tourism Secretary Bernadette Romulo-Puyat encouraged all tourism establishments to apply for a safety seal, adding that it bodes well with the agency’s priority to ensure the health and safety of tourists and workers.

According to Interior Secretary Eduardo M. Año, applying for a safety seal is not mandatory, but is encouraged to entice more customers and increase the sales and profit of businesses.

Since the start of the program in May, a total of 85,731 applications were filed. Some 50.54% or 43,332 applications were granted while 11.50% or 9,858 applications were either denied or referred to the appropriate agency. The remaining percentage are still in the inspection process. — Revin Mikhael D. Ochave

Pfizer/BioNTech COVID-19 vaccine effectiveness drops after 6 months — study

October 6, 2021 | 12:02 am

THE EFFECTIVENESS of the Pfizer, Inc./BioNTech SE vaccine in preventing infection by the coronavirus dropped to 47% from 88% six months after the second dose, according to data published on Monday that US health agencies considered when deciding on the need for booster shots.

The data, which was published in the Lancet medical journal, had been previously released in August ahead of peer review.

The analysis showed that the vaccine’s effectiveness in preventing hospitalization and death remained high at 90% for at least six months, even against the highly contagious Delta variant of the coronavirus.

The data suggests that the drop is due to waning efficacy, rather than more contagious variants, researchers said.

Researchers from Pfizer and Kaiser Permanente studied electronic health records of roughly 3.4 million people who were members of Kaiser Permanente Southern California between December 2020 — when the vaccine first became available — and August 2021.

“Our variant-specific analysis clearly shows that the (Pfizer/BioNTech) vaccine is effective against all current variants of concern, including Delta,” said Luis Jodar, senior vice-president and chief medical officer at Pfizer vaccines.

A potential limitation of the study was a lack of data on adherence to masking guidelines and occupations in the study population, which could have affected frequency of testing and likelihood of exposure to the virus.

Vaccine effectiveness against the Delta variant was 93% after the first month, declining to 53% after four months. Against other coronavirus variants, efficacy declined to 67% from 97%.

“To us, that suggests Delta is not an escape variant that is completely evading vaccine protection,” said study leader Sara Tartof with Kaiser Permanente Southern California’s Department of Research & Evaluation.

“If it was, we would probably not have seen high protection after vaccination, because vaccination would not be working in that case. It would start low, and stay low.”

Testing for variants is more likely to fail in vaccinated individuals, which could lead to overestimation of variant-specific effectiveness in the study, the authors cautioned.

The US Food and Drug Administration has authorized the use of a booster dose of the Pfizer/BioNTech vaccine for older adults and some Americans at high-risk of getting infected. Scientists have called for more data on whether boosters should be recommended for all. — Manas Mishra/Reuters

AUB expects improved appetite for home loans

October 6, 2021 | 12:01 am

MORE BORROWERS are likely to take out residential home loans once the economy improves, Asia United Bank Corp. (AUB) officials said.

“We are optimistic that the real estate industry will be among the sectors that will bounce back fastest once the economy recovers, which bodes well for consumer appetite for home loans,” AUB Assistant Vice-President and Team Leader for Home Loans Reginald Neil P. Garcia said in a statement.

The bank’s loans have already recovered, growing year on year mainly due to base effects. However, the pandemic has affected consumers’ incomes, making it hard for them to qualify for credit, AUB Consumer Loans Group Head Leo F. Intalan said.

“With the increase in unemployment and underemployment rates, the list of qualified borrowers have consequently shrunk,” Mr. Intalan said in an e-mail.

He added that the bank also saw evolving preference for housing units due to the pandemic. He noted that while condominium units remain as the primary type of housing that borrowers seek financing for, more clients now prefer landed homes.

“Starting last year, its (condominium units) share has lessened because customers are starting to prefer house and lots for their natural ventilation. Borrowers for vacant lots are also increasing,” Mr. Intalan said.

While interest rates have been reduced to record lows amid the crisis, Mr. Garcia said borrowers must brace for a sudden uptrend in yields once the economy recovers.

AUB offers a service called home rate protect, which gives borrowers access to fixed rates of 6% for one year, 6.5% for three years, and 7% for five years.

“This means clients who choose the one-year fixing rate of 6%, for example, will get their loan repriced at only 6.25% (additional 0.25% per year) if they pay their monthly amortizations on time. Other banks, on the other hand, reprice their home loans at an additional 1% to 2% every year, regardless of whether the borrowers pay on time or not,” AUB said.

Borrowers who avail of the product will also not have their home loans priced higher than 9%.

“Our primary objective is to offer our clients a sense of security and free them from worry should loan rates start to escalate,” Mr. Garcia said.

AUB earlier said it expects its net profit to grow by 30% to P4 billion this year as improving consumer confidence will likely boost its lending business.

The bank’s net income increased 7.72% year on year to P1.2 billion in the second quarter amid lower buffers for expected loan losses.

Despite this, AUB’s net earnings in the first semester dropped 17.4% year on year to P1.9 billion due to lower trading and securities gains.

AUB’s shares closed at P44.75 apiece on Tuesday, up by 25 centavos from its previous finish. — L.W.T. Noble

Arts & Culture (10/06/21)

October 6, 2021 | 12:01 am

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NCCA Dayaw festival goes online

THE NATIONAL Commission for Culture and the Arts (NCCA), is celebrating the National Indigenous Peoples (IP) Month in October through Dayaw 2021. This year’s theme is “Katutubong Filipino: Atin ang Tagumpay!” (Indigenous Filipinos: Ours is the Victory!). This year, over a hundred representatives from various indigenous groups will gather at their communities for cultural performances and discourses, notably on the shared cultural values embodied in their responses to the current crisis. These activities will be video documented and presented in five shows: Pagpapasinaya sa Tagumpay: The Dayaw Opening Ceremony on Oct. 9; Dayaw sa Sebangan: The Southern Cultural Communities on Oct. 17; Dayaw Sito Lubbon Na Unnot: The Northern Cultural Communities on Oct. 24; Dayaw sa Butnga: The Central Cultural Communities on Oct. 30; and, Pinagtagumpayan: The Dayaw Closing Ceremony on Oct. 31. These will be aired over social media platforms and television. The programs will include such topics as spirituality and well-being, indigenous learning systems, young indigenous entrepreneurs, safeguarding of intangible cultural heritage, and responses to the impact of climate change and disasters. Special events include the Anyo: Assistance for Filipino Artisans virtual exhibit, the virtual launch of the Schools of Living Traditions e-learning resources, and the virtual launch of the book El Folk-Lore in both Filipino and English translations.

Salcedo Auctions’ Gavel and Block auction preview

THE ONLINE preview of Salcedo Auctions’ Gavel and Block auction can be viewed until Oct. 15. The auction, which will be held on Oct. 16, is for the benefit of Hope for Lupus, a non-profit organization aimed at promoting awareness, early detection, proper treatment of the condition. For inquiries contact info@salcedoauctions.com or call or message 0917-107-5581 or 0917-825-7449. To view the catalogue, visit https://salcedoauctions.com/auction/140/benefit-hope-for-lupus.

CCP presents Dance On series

THE CULTURAL Center of the Philippines (CCP) Professional Dance Support Program presents a series of performances in the series Dance On, which will see dancers from the program performing restaged classics and original choreography. Streaming begins on Oct. 10, on the CCP Facebook page and CCP YouTube channel.

ARTablado presents ‘Sinag ng Sining’ exhibit

WORKS by Al Perez, Pancho Piano, Ral Arrogante, Gari Carreon and Rhea Jai Fernandez take center stage in ArtAblado until Oct. 15 at the 3^rd level of Robinsons Galleria. The exhibit, titled “Sinag ng Sining” (Ray of Art), is a compilation of 48 paintings and sculptures which best represent the persistence and passion of the five artists who, despite being faced with the “new normal” took comfort in their art. Robinsons’ ARTablado remains true to its mission to give hope and opportunities to Filipino artists by opening its stage to talented artists who want to exhibit their works despite the pandemic. For more updates, follow ARTablado on Facebook and @artablado on Instagram.

Nilo Ilarde shows at Mo_Space

MO_SPACE presents “Old is the New New,” an exhibit of works by Nilo Ilarde. It will be open for public viewing by appointment from Oct. 9 to Nov. 7. For “Old is the New New,” Mr. Ilarde has created collages made from gathered materials extracted from both high and low culture, from art history and the commonplace, and collateral debris from the artist’s studio and the aftermath of an exhibition hanging. The gallery is open daily, from 10 a.m. to 6 p.m. For inquiries, call 8856-7915 or 0917-572-7970.

Feature on National Museum of the Philippines

THE CULTURAL Center of the Philippines (CCP) celebrates Museums and Galleries Month with a special feature on the National Museum. The National Museum of the Philippines was founded in Manila in 1901 during the American colonial period and was formerly called the Insular Museum of Ethnology, National History and Commerce. Learn more about the National Museum at the Visual Arts section of the CCP Encyclopedia: https://epa.culturalcenter.gov.ph/3/.

Musical tick, tick… BOOM! premieres on Netflix in Nov.

NETFLIX has announced that the movie of the musical tick, tick… BOOM! will premiere on Netflix on Nov. 19. Pulitzer Prize and Tony Award winner Lin-Manuel Miranda makes his feature directorial debut with tick, tick…BOOM!, an adaptation of the autobiographical musical by Jonathan Larson, who revolutionized theater as the creator of Rent. The film follows Jon (Andrew Garfield), a young theater composer who’s waiting tables in New York City in 1990 while writing what he hopes will be the next great American musical. Days before he’s due to showcase his work in a make-or-break performance, he is feeling the pressure from everywhere. With the clock ticking, he is at a crossroads and faces the question everyone must reckon with: What are we meant to do with the time we have? The musical also stars Alexandra Shipp, Robin de Jesús, Joshua Henry, Mj Rodriguez, Bradley Whitford, Tariq Trotter, Judith Light, and Vanessa Hudgens. The film is written by Tony Award winner Steven Levenson, and produced by Brian Grazer and Ron Howard for Imagine Entertainment, Julie Oh, and Lin-Manuel Miranda. For details, visit www.netflix.com/ticktickboom .

Virgin Labfest gets new festival directors

THE CULTURAL Center of the Philippines, the Writer’s Bloc and Tanghalang Pilipino, announce that Marco Viaña and Tess Jamias will take over the reins in next year’s Virgin Labfest as the two new festival co-directors. Taking over from the two-year tenure of JK Anicoche, both artists will continue to steer the festival through the changes wrought by the pandemic. The Associate Artistic Director of Tanghalang Pilipino, Marco Viaña has received Gawad Buhay Awards for his work as an actor (Katsuri, Ang Pag-uusig) and is also a director who has worked with the Yugto Theater Ensemble and the UP College of Music. He co-directed Lam-ang, receiving the 2020 Aliw Award for Best Stage Director for a Musical. Tess Jamias is an actor, director, dramaturg, acting teacher/coach, filmmaker, voice talent, contemporary dancer, choreographer, hair cutter and machinator. She is a founding member of the pioneering independent performance companies Dulaang Talyer and the KoLabCo. She is currently the Program Adviser of the Senior High School Theatre Arts Program of the Philippine High School for the Arts. This marks two firsts for the Virgin Labfest — the first time there will be a woman as a Festival Director and the first time the post will be shared by two artists.

CCP launches folio on 2020 Gawad CCP Awardees

CELEBRATING its 52^nd anniversary, the Cultural Center of the Philippines (CCP) virtually launched the Gawad CCP Para sa Sining Folio, the official publication of the highest award given by the art institution to deserving Filipino artists and cultural workers, on Sept. 30 via CCP and CCP Intertextual Division Facebook pages. Set to be released in printed and digital formats, the folio contains citations, essays, photos, and notable works of a performing group, a publication, and 12 individuals who have been named recipients of the 2020 Gawad CCP Para sa Sining for their outstanding achievements and contributions to Philippine arts and culture. The awardees are: danseur Nonoy Froilan, pianist and former CCP president Raul M. Sunico, theater veteran Felix “Nonon” Padilla, visual artist Luis “Junyee” Yee, Jr., writer Lualhati T. Bautista, filmmaker Clodualdo “Doy” del Mundo, Jr., architect Cristina V. Turalba, designer Kenneth Cobonpue, cultural worker Nestor Horfilla, Danilo L. Dolor, the late Tony Fabella, and the late Alice Guillermo, the Integrated Performing Arts Guild, and Liwayway Magazine. Follow the CCP and CCP Intertextual Facebook pages for details on how to get a copy of the Gawad CCP Para sa Sining Folio.

ATN Holdings to apply for listing of 2.33M more shares

October 6, 2021 | 12:01 am

THE board of directors of listed holding firm ATN Holdings, Inc. has given the green light for the corporation to apply for the listing of 2,325,055,429 shares at the Philippine Stock Exchange (PSE).

These shares will be issued to Unipage Management, Inc.

Broken down, Unipage Management will be subscribing to 325,055,429 common class “A” shares of ATN and two billion common class “B” shares for a price-per-share value of 20 centavos.

Meanwhile, the board also approved the subscription of Arsenio T. Ng, president, chief executive officer, and chairman of ATN, to 824,944,571 shares of the corporation for the same price. These shares will be issued once the capital stock of ATN is increased “under terms and conditions favorable to the corporation.”

“The waiver of the majority of the minority shareholders to conduct a rights/public offering with respect to the abovementioned subscription was also obtained,” ATN said in a disclosure to the exchange.

ATN shares at the stock market closed unchanged for the sixth consecutive day at 52 centavos apiece. — Keren Concepcion G. Valmonte

Thyroid cancer and gender

October 6, 2021 | 12:01 am

Thyroid cancer is a disease in which malignant (cancer) cells form in the tissues of the thyroid gland. It is the seventh leading form of cancer in the Philippines. Its incidence is three times higher in women than in men. Thyroid cancer is the most common cancer in women aged 15 to 24, according to the Department of Health (DoH).

As defined by the American Thyroid Association, the thyroid gland is a butterfly-shaped endocrine gland that is normally located in the lower front of the neck. Its job is to make thyroid hormones to help stay warm, control metabolism, and regulate breathing, heart rate and the nervous system, among many others.

The Johns Hopkins University School of Medicine said that thyroid concerns are more common in women, probably due to the roles of hormones, which are different in females than in males. Oftentimes women do not notice any symptoms because they are busy with family and work.

In its early stages, thyroid cancer may be asymptomatic; it is sometimes an incidental finding during a routine physical examination by a doctor. Signs or symptoms develop as the tumor increases in size. The National Cancer Institute said that common signs and symptoms of thyroid cancer include a lump (nodule) in the neck, difficulty in breathing, trouble swallowing, pain when swallowing, and hoarseness. It is important to consult a doctor if a person has any of these signs or symptoms.

Risk factors for thyroid cancer include age between 25 and 65 years old; female gender; exposure to radiation to the head and neck as an infant or child or to radioactive fallout; personal history of goiter (enlarged thyroid); family history of thyroid disease or thyroid cancer; and having certain genetic conditions that affect the thyroid gland.

Thyroid cancer is usually treatable and, in many cases, can be cured completely, said the UK National Health Service (NHS). It would be important to seek physician’s advice as the treatment would depend on the type of thyroid cancer.

According to the NHS, the main treatments are a thyroidectomy or surgery to remove part or all of the thyroid; a radioactive iodine treatment; external radiotherapy; and chemotherapy and targeted therapies.

Cancer is one of the greatest health challenges of our time, and a leading cause of death in every corner of the world. Within the next two decades, the number of new cancer cases each year is expected to reach 22 million, the majority of them in low- and middle-income countries (LMICs).

The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) said that without preventative measures, the disproportionate majority of mortality from cancer will also occur in LMICs, where there could be limited availability of screening, early detection, and access to treatment.

Within the industry’s Framework of Action for the Prevention and Control of Non-Communicable Diseases (NCDs), IFPMA and its members are committed to supporting countries towards reaching the NCD targets of the World Health Organization (WHO), including the target of a 25% relative reduction in premature mortality from cancer and other NCDs by 2025.

Today, there are more than 3,000 projects for cancer treatments. These innovative treatments come in addition to a legacy of medicines for cancer currently available in generic form. Since 1980, 83% of life expectancy gains in cancer are attributable to improved treatments.

While treatment remains a critical factor, addressing cancer requires recognition of its complexity and management throughout the whole continuum of care, including stages such as prevention, diagnosis and palliative care. As such, industry members are engaged in a number of health partnerships with governments, academics, health workers and civil society to address barriers to cancer care in LMICs.

The IFPMA Developing World Health Partnerships Directory contains health partnerships from the industry that work towards enhanced access to cancer care. It holds over 45 case studies from partnerships that fight cancer. Scaling up access to quality care for patients with cancer, our industry has partnered with academic groups and hospitals in LMICs to improve healthcare infrastructure, and develops access programs with ministries of health to improve availability of treatments.

Data is another crucial element in the fight against cancer. There are also currently partnerships that look to improve the quality of completeness of cancer data and provide the local context for the roll-out of evidence-based cancer strategies.

The fourth week of September is National Thyroid Cancer Awareness Week. In line with this, we wanted to highlight this often-overlooked major illness.

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

Headline inflation rates in the Philippines (Sept. 2021)

October 6, 2021 | 12:00 am

PHILIPPINE INFLATION eased in September from a near three-year high in the month prior, as the rise in the prices of food and transport slowed, the statistics agency said on Tuesday. Read the full story.

How PSEi member stocks performed — October 5, 2021

October 6, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, October 5, 2021.

Shares climb as inflation eases slightly in Sept.

October 5, 2021 | 9:00 pm

PHILIPPINE shares posted gains on Tuesday on the back of a better-than-expected September inflation print and improving coronavirus disease 2019 (COVID-19) numbers.

The 30-member Philippine Stock Exchange index (PSEi) gained 20.35 points or 0.29% to close at 6,981.24 on Tuesday, while the broader all shares index rose 9.98 points or 0.23% to finish at 4,358.17.

“Philippine shares were bought up towards closing as September inflation came in much better than most had anticipated,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Headline inflation stood at 4.8% in September, slowing from the 4.9% logged in August but faster than the 2.3% print recorded in the same month last year, the Philippine Statistics Authority reported on Tuesday.

The latest figure is below the 5% median in a BusinessWorld poll conducted late last week and is at the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP) for the month.

Inflation averaged at 4.5%, still above the BSP’s 2-4% target and 4.4% forecast for this year.

“Market sustained its uptrend today as transmission rate of the pandemic virus continue its downtrend projection that will eventually ease [restrictions] going into the fourth quarter,” Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said in a text message on Tuesday.

On Monday, the country logged 10,748 new COVID-19 infections. Active cases stood at 106,160.

Philstocks Financial, Inc. Senior Research and Engagement Supervisor Japhet Louis O. Tantiangco said the improvement in the country’s COVID-19 situation helped boost market sentiment.

“In the earlier part of the trading day however, the market was in the negative territory amid profit taking caused by the negative spillovers from Wall Street,” Mr. Tantiangco said in a separate Viber message.

“Trading for the day was tepid with [the] net value turnover… below the year-to-date average of P7.15 billion,” Mr. Tantiangco said.

Value turnover increased to P6.57 billion with 1.08 billion shares switching hands on Tuesday, rising from the P5.89 billion with 955.46 million issues traded the previous day.

Majority of sectoral indices climbed on Tuesday except for financials, which declined by 6.64 points or 0.46% to 1,413.24, and property, which went down by 2.87 points or 0.09% to end at 3,002.62.

Meanwhile, services increased by 19.62 points or 1% to 1,971.31; industrials climbed 61.27 points or 0.59% to 10,329.89; holding firms rose 30.10 points or 0.43% to 7,017.33; and mining and oil went up by 36.28 points or 0.37% to close at 9,627.41.

Decliners beat advancers, 106 against 84, while 58 names closed unchanged.

Net foreign selling went up to P709.34 million on Tuesday, more than double the P336.54 million logged the previous day. — Keren Concepcion G. Valmonte

Peso climbs further against the dollar on better-than-expected data

October 5, 2021 | 9:00 pm

THE PESO strengthened further versus the greenback on Tuesday after inflation slightly eased in September.

The local unit closed at P50.65 per dollar on Tuesday, appreciating by five centavos from its P50.70 finish on Monday, based on data from the Bankers Association of the Philippines.

The peso opened Tuesday’s session at P50.82 per dollar, which was also its weakest showing. Meanwhile, its intraday best was at P50.625 versus the greenback.

Dollars exchanged rose to $1.019 billion on Tuesday from the $857.54 million recorded on Monday.

The peso appreciated from its Monday finish on the back of positive market sentiment as inflation was slower than expected in September, a trader said.

Headline inflation stood at 4.8% in September, slowing from the 4.9% logged in August but faster than the 2.3% print recorded in the same month last year, the Philippine Statistics Authority reported on Tuesday.

The latest figure is below the 5% median in a BusinessWorld poll conducted late last week and is at the low end of the 4.8%-5.6% estimate given by the Bangko Sentral ng Pilipinas (BSP) for the month.

Headline inflation averaged at 4.5%, still above the BSP’s 2-4% target and 4.4% forecast for this year.

Meanwhile, gains at the local stock market also pushed the peso higher, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Philippine shares posted gains on Tuesday on the back of the better-than-expected September inflation print and improving coronavirus disease 2019 (COVID-19) numbers.

The Philippine Stock Exchange index rose by 20.35 points or 0.29% to end at 6,981.24 on Tuesday, while the broader all shares index gained 9.98 points or 0.23% to finish at 4,358.17.

On Monday, the country logged 10,748 new COVID-19 infections. Active cases stood at 106,160.

For Wednesday, the trader gave a forecast range of P50.55 to P50.80 per dollar, while Mr. Ricafort expects the local unit to move within P50.55 to P50.75. — LWTN

Oil firms urged to ensure supply amid slow OPEC output growth

October 5, 2021 | 8:50 pm

THE DEPARTMENT of Energy (DoE) has called on oil companies to ensure adequate fuel supply, noting that the Organization of the Petroleum Exporting Countries (OPEC) will only be gradually increasing production despite rising demand.

“I am directing all oil companies in the country to ensure adequate supply, and come up with plans to mitigate possible price hikes of oil products in the coming months,” Energy Secretary Alfonso G. Cusi said.

Oil companies are required to maintain a minimum inventory of petroleum products, according to Executive Order 134 signed by former President Gloria Macapagal-Arroyo. The order was implemented by the DoE via a department circular issued in 2003 requiring a minimum inventory equivalent to 15 days’ supply for petroleum products, and seven days’ supply for liquefied petroleum gas.

Refiners are required to maintain a minimum crude and petroleum products inventory good for 30 days.

The DoE’s Oil Industry Management Bureau said OPEC will only be gradually adding supply to the market, adding that it expects prices to rise as a result.

“From August to December 2021, OPEC will only be enforcing a 400,000 barrel-increase per month (but this is) expected to even out the supply-demand balance by the end of 2021,” it said.

OPEC recently met with Russia and agreed to stick to a plan for a gradual increase in oil output.

Other events which may possibly raise oil prices include “aggressive demand” in the fourth quarter which is expected to hit as much as 103 million barrels per day (mbpd) of crude oil, narrowing the margin with available supply which is currently at 103.22 mbpd. Also listed as factors are continued sanctions against Venezuela, which has removed up to two million barrels of crude oil per day from the market.

This week, oil companies imposed an increase in pump prices of P1.45 per liter (/L) for gasoline, and an increase of P2.05/L for both diesel and kerosene.

“The DoE will continue to closely monitor global oil supply and price movements. As always, we are working with the downstream oil industry players to ensure that all mechanisms to protect our consumers against the impact of such developments as much as possible,” Mr. Cusi said. — Angelica Y. Yang