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Agriculture damage caused by Typhoon Quinta hits P2.2 billion

AGRICULTURAL damage caused by Typhoon Quinta (international name: Molave) has hit P2.20 billion, up from the previous estimate of P1.81 billion, according to the Department of Agriculture (DA).

In a bulletin, the DA said that 44,017 farmers and fisherfolk were affected by the typhoon, with production losses reckoned at 124,462 metric tons (MT), while 86,271 hectares of farmland were damaged.

Affected regions include Ilocos, Cagayan Valley, Central Luzon, CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), MIMAROPA (Mindoro, Marinduque, Romblon, and Palawan), Bicol, Western Visayas, Eastern Visayas, and Zamboanga Peninsula.

“The increase in values is attributed to the updated reports in rice, corn and livestock from Central Luzon and Bicol Region,” the DA said in the bulletin.

Damage to the rice crop amounted to P1.51 billion, with some 99,986 MT lost and 75,529 hectares affected.

Losses to high-value crops were reckoned at P446.7 million. Some 18,718 MT worth of produce across 5,447 hectares of damaged farmland.

Damage to the corn crop was P137.8 million, followed by fisheries at P79.9 million, and livestock P8.1 million.

Damage to irrigation and agricultural facilities was P18.3 million, while losses of agricultural machinery and equipment amounted to P875,000.

The DA said that affected farmers can avail of government assistance such as P300 million worth of loans under the survival and recovery loan program from the Agricultural Credit Policy Council, and a total of 77,379 bags of rice seed; 9,817 bags of corn seed; 2,530 kilograms of vegetables; and 440,400 fruit tree seedlings.

Other assistance that can also be tapped include indemnification funds from the Philippine Crop Insurance Corp., and quick response funds for the rehabilitation of affected areas.

In a separate bulletin, the DA said that it has saved a total of P16.96 billion worth of rice across the regions of Ilocos, Cagayan Valley, Central Luzon, CALABARZON, and Bicol were harvested early following an advisory to farmers before Typhoon Rolly (international name: Goni) made landfall.

Some 242,638 hectares equivalent to 1.07 million MT of rice were harvested early.

Meanwhile, P579.07 million worth of corn or 45,703 MT across 11,132 hectares has been brought in and stored ahead of Rolly’s arrival.

“Continuous rain increases the water level of dams and rivers, which leads to flooding in low-lying agricultural areas,” the DA said.       

“Damage and losses in the agriculture sector are expected from Cordillera Administrative Region, Ilocos Region, Cagayan Valley, Central Luzon, CALABARZON, MIMAROPA, Bicol Region, and Visayas Region due to the typhoon,” it added. — Revin Mikhael D. Ochave

Tax appeals court clears AsianLife-BIR compromise deal

THE Court of Tax Appeals (CTA) approved the compromise agreement between AsianLife and General Assurance Corp. and the Bureau of Internal Revenue (BIR) over its 2009 tax deficiency assessment.

AsianLife, now known as “Etiqa Life and General Assurance Philippines, Inc., in November 2017 challenged the validity of BIR’s final decision on disputed assessments, amounting to P62.6 million.

In January 2019, AsianLife filed a motion to refer the case to the Philippine Mediation Center-CTA, which eventually led to a compromise settlement worth P25.04 million. The amount represents 40% of the basic tax assessed as the final settlement for the tax deficiency.

“The Judicial Compromise Agreement entered into by the parties is approved,” the tax court ruling read. It also declared the case is closed and terminated.

It was noted that AsianLife paid the settlement amount in September 2019, but the approval of the compromise agreement was delayed due to some documentary requirements.

“The Court observed that the parties failed to submit the original or certified true copy of the Compromise Agreement dated September 17, 2019 as required per Resolution dated October 24, 2020,” the ruling also stated.

This was later settled by the petitioner through the submission of a certified true copy of the compromise agreements.

Insurance company AsianLife launched its rebranding as Etiqa Philippines, largely owned by Etiqa International Holdings Malaysia, in 2019. The Malaysia-based firm has regional offices, located in the Philippines, Indonesia, Singapore, and Cambodia.

It offers corporate and individual life and non-life life insurance, as well as auto and travel insurance. It has over 1,400 partner hospitals and clinics across the country with 25,000 doctors and 24/7 in-house call centers. — Charmaine A. Tadalan

Black is beautiful 

“BLACK maintains its edge because of its standard connotations of the sinister. Black conjures fear of the blind darkness of night and the eternal darkness of death; and in small, carefully flavored doses, such deliberate conjuring is always attractive,” Anne Hollander writes in Seeing Through Clothes in a segment devoted to the history and defense of black clothing.

An exhibit by CITEM (Center for International Trade Expositions and Missions) has been pulled back from oblivion and given new life. While black usually represents death, ITIM: Material Manipulations in Black signifies rebirth during this pandemic. It serves as one of the anchor exhibits of the reimagined Manila Fame. Manila Fame, prior to the pandemic, was the country’s biggest lifestyle fair, made to exhibit the country’s best products borne of design. Due to the pandemic, it has moved online to Fame+ (fameplus.com). In a statement, CITEM Executive Director Pauline Suaco Juan said, “Our lofty ambition, after all, is to build a home, a database if you will, for our Home, Fashion and Lifestyle Community, so that the whole world may find them — and connect with them — online.” The website will display a product catalogue, while also displaying a calendar of events that consist of workshops and seminars.

ITIM, which had been on view at Aphro Living in Karrivin Plaza until Saturday, lives online through the Fame+ website. It had been in limbo due to the pandemic, as it was supposed to have been shown to an international audience last summer. “ITIM: Material Manipulations in Black was supposed to be our presentation in Milan Design Week; the container bearing our products was already at sea, when Italy locked down. Instead, we’ve produced a hybrid presentation,” she said, pertaining to the online and real-life exhibit.

During a webinar held on Oct. 22, ITIM curator and creative director Rita Nazareno (also the creative director behind handwoven bag and home accessories brand Zacarias 1925) explained that the exhibit in Italy had been conceptualized “as an exhibit that will show another side of the design, creative, and manufacturing process of the Filipino, and really be seen.” After all, a preview of the exhibit urged one to look more closely: “Awashed in black, the objects ask that you take pause, that you come closer. If you move too quickly — as the world does — you’ll miss its intricacies, and consequently, the stories embedded in the materials,” a narrator read.

The exhibit features products coated in black by firms such as CSM Philippines, Weave Manila, Industria, Vito Selma, JB Woodcraft, Schema, E. Murio, Nature’s Legacy, Zacarias 1925, and Vic Balanon. It is a mix of the mundane and surreal: doghouses in solihiya (rattan weave) by E. Murio are displayed along with chairs made to look like pancit, a Filipino noodle dish, by Industria. A monolith panel by Zacarias 1925 offers either the sinister or the silent. All are made beautifully, of course, using materials available in the country, and are lent a new dimension of mystery by having been made in black.

During a webinar held on Oct. 22, Ms. Nazareno spoke about bringing things out of the shadows: literally, such as in pieces brought out of warehouses and given new life for the exhibit. “We also designed new pieces that were out of this mindset of things that were discarded,” said Ms. Nazareno, this time pointing out an installation by bone china manufacturer CSM Philippines, featuring bone china sculptures made to appear like crumpled paper — and of course they were black.

“I had always been interested in things that were kept in the shadows,” she said.

ITIM can be viewed on fameplus.com/itim/. — Joseph L. Garcia

T-bill, T-bond rates may inch up

THE RATES of the government securities on offer this week will likely increase ahead of the presidential election in the United States and as uncertainties linger due to the coronavirus disease 2019 (COVID-19).

The Bureau of the Treasury (BTr) will borrow P20 billion in via Treasury bills (T-bills) on Tuesday: P5 billion each in 91-day and 182-day papers and P10 billion in 364-day securities.

On Wednesday, it will auction off reissued three-year Treasury bonds (T-bonds) worth P30 billion. The papers have a remaining life of two years and 10 months.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the rates of the T-bills on offer will likely be steady amid expectations of benign inflation.

“Our trader senses muted October inflation at 2.3% year on year and a survey result of 2.4%, which is priced in and consistent with our benign inflation [forecast] for the rest of the year at 2.4%,” Mr. Asuncion said in an e-mail.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the rates of the short-term debt papers may move marginally as investors remain awash with cash.

Meanwhile, for the reissued three-year bonds, UnionBank’s Mr. Asuncion expects its average rate to increase by 5-10 basis points (bps) as investors consider the impact of the US presidential election on Nov. 3 on the local debt market.

“Local market will be distracted by offshore developments led by the US elections results. Yields are expected to trade with upside risks,” he said.

Mr. Asuncion added that demand for short-term bonds may strengthen amid a better economic outlook on the back of the possible victory of Democrat candidates in the US.

“Improved growth prospects next year reinforce duration cutbacks. Additional supply of three-year bonds in November doesn’t argue for a flatter belly,” he said.

The Treasury last week made a full award of its offer of T-bills, awarding P20 billion as planned as the auction was more than four times oversubscribed, with bids amounting to P81.825 billion.

Broken down, the BTr awarded the programmed P5 billion in 91-day papers as tenders reached P23.44 billion. The three-month debt fetched an average rate of 1.079%, down by 0.7 bp from the 1.086% seen at the previous auction.

The government borrowed another P5 billion as planned in 182-day T-bills as bids stood at P27.576 billion. The six-month papers were quoted at an average rate of 1.543%, declining by 5.4 bps from 1.597% previously.

The Treasury also made a full P10-billion award of the 364-day debt as bids reached P30.809 billion. The one-year T-bills fetched an average rate of 1.791%, inching down by 0.2 bp from the 1.793% quoted during the previous offering.

It also opened its tap facility and borrowed another P5 billion each in 182-day and 364-day papers.

Meanwhile, the government made a full P30-billion award of reissued three-year T-bonds on Oct. 6 as the offer was almost four times oversubscribed, with tenders reaching P114.488 billion.

The debt papers fetched an average rate of 2.182%, declining by 9.7 bps from the 2.279% in the Sept. 8 auction, where the series was first offered. The T-bonds have a coupon rate of 2.375%.

At the secondary market on Friday, the 91-day, 182-day and 364-day T-bills were quoted at 1.14%, 1.551% and 1.821%, respectively, based on the PHL Bloomberg Valuation Reference Rates published on the Philippine Dealing System’s website. On the other hand, the three-year T-bonds fetched a yield of 2.325%.

The Treasury plans to borrow at least P140 billion from the domestic market this month: P80 billion in weekly T-bill auctions and P60 billion in fortnightly T-bond auctions. It will also look to raise at least P3 billion from an offering of Premyo bonds.

The government wants to raise around P3 trillion this year from local and foreign lenders to help fund its budget deficit expected to hit 9.6% of the country’s gross domestic product. — KKTJ

Start your search engines, here comes ‘MIAS Wired’

The country’s largest and longest-running auto spectacle goes online

By Kap Maceda Aguila

ORIGINALLY scheduled to ensue last April 2 to 5, this year’s Manila International Auto Show (MIAS) was sadly (but understandably) aborted due to the onslaught of the COVID-19 pandemic. This was a painful but necessary move to assure the safety of participants and attendees. “In light of the recent turn of events concerning COVID-19, which has led the Philippine government to declare a state of public health emergency, the management of Worldbex Services International has come to the decision to temporarily postpone MIAS 2020,” the show organizers had said in a statement.

But now, the country’s longest-running and largest car show is back on track — albeit digitally — as it sets to serve up its expected smorgasbord of everything automotive from Nov. 26 to 30.

Rechristened “MIAS Wired,” this now takes the place of what should have been the 15th staging last summer. “It’s a milestone year for us, so we felt disappointed we could not push through with a live event,” said event co-organizer Alvin Uy to “Velocity” in an interview. “We decided to try out this virtual platform so that we get to continue the tradition of holding MIAS, albeit on a virtual space this year.”

It should be noted, too, that the organizers are still hoping for better days ahead, and have booked the old MIAS haunt, the World Trade Center in Pasay City, for April 5 to 8 next year. “But we will, of course, abide by the guidance of IATF and related agencies if we can push through or not. Hopefully we can see a clearer picture by end of the year,” stressed Mr. Uy.

Back to MIAS Wired, we asked Mr. Uy to describe the reception of participating brands when they broached the idea of a virtual auto show. “They had many questions like how it will be conducted, what are the tech requirements, how will we reach out to the viewers, etc. We explained to our exhibitor partners that having a virtual event allows the event to have a much wider reach on a national scale which will benefit their regional dealers and customers,” he revealed. While the lineup of marques has not been revealed yet, Mr. Uy did say that they’ve approached all the companies who had signed up for the original (physical) event that should have happened last April.

He admitted that since this is a first for MIAS, there are concerns on how “seamless” the experience will be. “Hopefully we can fully address these and perform up to expectations. We made the costs very reasonable as well so more brands can join. Since MIAS has a strong track record of gathering visitors to the live event in the past, and we hope to translate this in the virtual world.”

MIAS was first held in 2005 over a modest footprint of 6,000 square meters of indoor space and an additional outdoor area of 3,000 square meters. According to Mr. Uy and co-organizer Jason Ang, the yearly event is “envisioned to be a world-class spectacle competitive with the region’s best.” Last year, the exhibition drew a record 142,000-plus attendees.

While there are obvious limitations with virtual events, Mr. Uy and company hope to leverage the opportunities inherent to the digital medium. “Aside from having a nationwide reach, we extended the show dates from four to five days. And the 360-degree 3D virtual showcase will be made available to the brand’s visitors for six months, not just days,” he related. Still, Mr. Uy maintained that other features of MIAS Wired will cease after the end of the show, so there’s a definite premium in attending the free event.

Other benefits include a chat feature so potential customers can reach out to the participating brands directly for inquiries, and guests can drop in at any time to check out the goings on. For the organizers, “the cost of running the show is much less than a live event, and at this time of the pandemic, we believe it is the best platform to reach out to our car-loving audience and market.” Attendees missing the live staging of a launch need not fret as these can be viewed later, on demand, during the five-day run.

For updates, visit manilaautoshow.com.

Agriculture dep’t blames swine fever outbreak on rampant pork smuggling

AGRICULTURE Secretary William D. Dar said pork smuggling is to blame for the outbreak of African Swine Fever (ASF) in the Philippine hog industry.

Mr. Dar said the Department of Agriculture (DA) only approves meat imports from countries that are free from ASF, suggesting the entry of the disease through pork from unapproved sources.

“The DA assures the public of its support to the implementation of Republic Act No. 10611 or Food Safety Act of 2013, including the provisions for the ‘quarantine first policy’ to ensure that agricultural products are safe, hygienic and fit for consumption of every Filipino family,” Mr. Dar said.

According to the DA, the Bureau of Customs has partnered with other government agencies to improve border controls against smuggled pork.

The DA said it issues timely bans on pork from any country that reports outbreaks, while observing accreditation protocols for exporters without any such outbreaks.

Mr. Dar said the construction of the country’s first meat inspection facility remains “on track,” but has been slowed by the process for obtaining approvals.

“While waiting for the facility, the DA adopts a stringent two-stage inspection process upon entry of imported agricultural commodities. This is a science-based regulatory procedure that we strictly follow both for local and international shipment of agricultural products,” Mr. Dar said.

The DA said that quarantine officers of the Bureau of Animal Industry (BAI) inspect meat imports at all ports of entry. After BAI inspection, meat products are examined at cold storage facilities accredited by the National Meat Inspection Service.

The DA plans to establish the first meat inspection facility or agricultural commodity examination area (ACEA) at the Port of Manila.

BAI Director Ronnie D. Domingo said the facility’s construction has to hurdle various legal and logistical barriers.

“Building a government structure in a privately-operated congested port area is not an overnight task to accomplish. The identification of a 2,000-square meter area for the ACEA will be settled soonest,” Mr. Domingo said.

Mr. Domingo said contractors are set to be hired to finish the detailed architectural and engineering designs required by the Department of Budget and Management (DBM) before the release of funds.

“Although the concept designs are done, the DBM needs the detailed designs to effect fund release,” Mr. Domingo said.

Mr. Domingo added that the DA has been working with the Department of Transportation, Philippine Ports Authority, International Container Terminal Services, Inc., and Asian Terminals, Inc. to fast-track the process.

“The BAI has started the groundwork for the establishment of other ACEA facilities at the international ports of Subic, Batangas, Cebu, and Davao,” Mr. Domingo said.

In December, some P2 billion was allotted for the establishment of meat inspection facilities. — Revin Mikhael D. Ochave

MVP firms commit to 24-hour operations for Typhoon Rolly

THE so-called MVP Group — composed of listed companies PLDT Inc., Metro Pacific Investments Corp., and Manila Electric Co. (Meralco) and their respective subsidiaries — has committed to be on round-the-clock operations to prepare for the onslaught of Typhoon Rolly.

Manuel V. Pangilinan, chairman of the listed firms that have interests in telco, power, and tollways businesses, said the companies’ operations centers are manned 24 hours to keep watch of any disturbance that the super typhoon may bring.

“We have mobilized the group’s foundations to do relief and medical work in the wake of Typhoon Rolly. Our restoration teams from PLDT-Smart and from Meralco are also on alert,” Mr. Pangilinan said in a social media post Saturday night.

The super typhoon made its first landfall in the Philippines on Sunday morning and continues to hit parts of the country as of writing. The government has raised tropical cyclone warnings in areas anticipated to be hit, such as Metro Manila, which is under Signal No. 4.

In a statement on Sunday, the MVP Group said it deployed a “Smart Store on Wheels” in Aurora, Bataan, Bicol, Bulacan, Pampanga, Tarlac, and Zambales to provide free calls, Wi-Fi connection and a charging station to affected communities.

Meralco has also rolled out efforts to mitigate the impact of the super typhoon to power connectivity, and remains on standby for possible outages.

The MVP Group operates the North Luzon Expressway (NLEx), Subic-Clark-Tarlac Expressway (SCTEx), Manila-Cavite Expressway (CAVITEx), and Cavite-Laguna Expressway (CALAX).

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Garnier goes green

AS PART of its ongoing sustainability initiatives, L’Oreal has introduced “green packaging” for its skincare brand, Garnier. These include replacing bubble wrap with honeycomb paper and cassava starch bags in place of plastic packaging.

“Our constant search for innovation and reinvention of consumer experience fuels us at Garnier to lead the change in creating a sustainable world of beauty. By assessing how we work and the key areas of our value chain where we can find more sustainable alternatives, we can create a positive impact on the environment and give our consumers a better and more holistic beauty experience,” Isabel Falco, marketing director of Garnier and L’Oreal Paris Philippines, said in a statement.

Purchases made from Garnier through its official store on e-commerce platform Shopee will come in packaging that is meant to be sustainable and eco-friendly: honeycomb paper will replace bubble wrap while bags made from cassava starch will replace plastic packaging.

The honeycomb paper is made by EcoNest Philippines and is a “patented 3D die-cut paper made from FSC certified virgin craft paper with an interleaf tissue that provides excellent surface protection to prevent possible damages and abrasion when wrapping and handling parcels,” said the release.

Meanwhile, the cassava starch bags are made by SainBags, an Indonesian-based company. The bags are said to be biodegradable and compostable and will leave “no toxic residues causing no damage to our oceans, waterways, land and are harmless to animals and plants.”

The full roll-out of the Garnier eco-packaging is scheduled for November in Shopee. The same roll-out of eco-packaging in other e-commerce platforms has not been announced.

BusinessWorld got a hold of the packaging and some Garnier products a week ago. A note on the cassava starch bags — which have a texture similar to a balloon — states that they can either be “cut into small pieces and dissolved in warm water,” can function as fertilizer for plants (it degrades in 90 days), or can be thrown away without guilt. The honeycomb paper has a texture of stiff craft paper.

L’Oreal had been hinting since August that it would be using eco-packaging for some brands in the Philippines. (READ MORE: https://www.bworldonline.com/loreals-phl-sustainability-efforts-include-labeling-bio-based-packaging/)

But  L’Oreal admitted that the shift to eco-packaging comes at a “higher cost” than the usual plastic packaging.

“At the beginning it will come at a higher cost — that’s normal with every first endeavor. But the intent was definitely that [prices will come down] as we drive scale,” Ms. Falco said during the online launch on Oct. 23 via Microsoft Teams.

Higher costs for packaging notwithstanding, Ms. Falco said that they do not plan to increase their suggested retail prices.

Other brands in the L’Oreal fold will also be shifting to eco-packaging soon, said Supriya Singh, the country managing director for L’Oreal Philippines, in the same launch.

“We will see other brands doing this, it’s not just Garnier… we will continue to expand to all of our brands in the portfolio but we have not locked dates for all of them yet, but rest assured that it will not be too far away,” Ms. Singh said. — Zsarlene B. Chua

Yields on gov’t debt rise

YIELDS on government securities (GS) inched upward last week amid a lack of catalysts in the local market.

Debt yields in the secondary market climbed 1.8 basis points (bps) on average week-on-week, based on the PHP Bloomberg Valuation (BVAL) Service Reference Rates as of Oct. 30 published on the Philippine Dealing System’s website.

For the short-dated debt papers, the 91- and 364-day Treasury bills (T-bills) saw their yields go up by 1.6 bps and 1.3 bps to fetch 1.14% and 1.821%, respectively. Meanwhile, the yield on the 182-day T-bill edged down by 2 bps to 1.551%.

At the belly, the five- and seven-year Treasury bonds (T-bonds) saw their yields go up by 4.7 bps and 9.8 bps, respectively, to 2.75% and 2.938%.

On the other hand, the rates of the two- and three-year debt papers fell by 1.6 bps (2.071%) and 2.3 bps (2.325%), while those of four-year T-bonds remained unchanged at 2.557%.

For long-dated securities, the rates of the 10- and 20-year T-bonds went up by 4.8 bps (2.977%) and 3.8 bps (3.953%), respectively. The 25-year T-bonds, meanwhile, declined by 0.2 basis point to yield 3.915%.

“Yields have been trending higher over the last two weeks. Rather than a negative catalyst, it is the absence of positive catalysts driving the move,” said ATRAM Trust Corp. Head of Fixed Income Jose Miguel B. Liboro in an e-mail.

Security Bank Corp. First Vice-President and head of Wholesale Treasury Sales Carlyn Therese X. Dulay likewise attributed last week’s movement to the absence of downward catalysts, adding the upcoming US elections and a “possible sharp upward move” on US Treasuries on a potential sweep by the Democratic Party “is also taking a toll on short-term sentiment in local rates.”

“Barring outside factors, yields will most likely be trading sideways with slight upward bias [this] week. The high end of the five-year range is 2.90%, so any selling should be contained to that level,” Ms. Dulay said in an e-mail.

“However, should there be any drastic or unexpected results in the US elections, GS may follow whatever move [the US Treasuries] post,” she added.

For ATRAM Trust’s Mr. Liboro, a “further steepening” in the local yield curve is expected, albeit not necessarily sharp upward adjustments.

“Given that market positives of low inflation and a still-accommodative BSP have been largely priced in, peripheral factors such as the recent move higher in global bond yields, as well as a potential investor rotation back into local equities will likely cause a continued gradual adjustment higher in GS yields,” Mr. Liboro said.

“The T-bill and three-year [T-bond] auction [this] week will continue to generate decent demand at current levels, but we expect bids on the longer tenor (five years and higher) to become less aggressive and cause a continued gradual adjustment higher,” he added.

The Bureau of the Treasury made a full award of the P20 billion worth of T-bills auctioned off on Monday as the offer was more than four times oversubscribed, with bids amounting to P81.825 billion.

The Treasury also opened its tap facility window to raise another P5-billion each via the 182- and 364-day T-bills.

The government is planning to borrow some P140 billion from the domestic bond market in November. Of this total, P80 billion will be in T-bills and P60 billion will come from T-bonds. The auctions for T-bills will be held weekly, while the T-bonds will be offered fortnightly.

The government wants to borrow some P3 trillion this year from local and foreign lenders to help fund its budget deficit, which is expected to hit 9.6% of the country’s gross domestic product. — A.O.A. Tirona

Hyundai PHL brings in entry-level Venue SUV; priced from P915K

HYUNDAI ASIA RESOURCES, Inc. (HARI) recently digitally revealed a new vehicle that will serve as the gateway into its SUV portfolio. The Hyundai Venue, a subcompact crossover, now takes its place as the most affordable ute of the brand (starting at P915,000).

Marketed as a 2021 model, the Hyundai Venue is positioned for a younger segment — including first-time car owners and upgraders from subcompact sedans. HARI added that the Venue is appropriate for those who are on the lookout for personal mobility, particularly during this time, purveying it as a “most affordable SUV aimed for urban adventures.” Said Allan Cruz of HARI product planning: “Customer needs are changing… (and) we have to adapt to the new normal.”

Replying to a question from “Velocity,” HARI President and CEO Ma. Fe Perez-Agudo said that units will be coming straight from South Korea.

The Venue sports a “cascading grille with three-dimensional pattern formed from an intricate mesh of black and chrome (for the 1.6L GLS variant). It sports black cladding around the fender, large wheel arches accommodating 17-inch (for the GLS) alloy wheels. An interesting feature is a front-wheel air curtain built into the bumper. For front illumination, it gets bi-function halogen headlights “with static blending,” and LED DRL and position lamps.

“Venue” in large letters is a highlight of the rear liftgate just under the chrome Hyundai logo. The LED taillights bear an interesting Z-shaped lighting with “lenticular optical lens that give them an even more vibrant personality.” Back-up lamps are incorporated at both ends of the rear bumper.

Its infotainment system features an eight-inch display audio touchscreen with Apple CarPlay and Android Auto. The touchscreen also functions as a display for the rearview camera. The driving mode can be changed from Sporty, Normal, and Eco-friendly, and the Venue also boasts 2WD multi-traction control that adapts to the preferred driving style. A 3.5-inch “supervision” liquid crystal display allows the driver to monitor fuel efficiency, among other bits of information.

The Venue provides 355 liters of cargo space, increased through 60/40 split-folding rear seats. Hyundai said the vehicle can also accommodate “tall or irregularly shaped items” through a “dual level luggage board that can be positioned at the top or bottom to further maximize luggage loading convenience.” A retractable covering shelf at the rear can also be stored at the rear seatback unlike regular tonneaus. There’s also an assortment of cubby holes and storage compartments.

Under the hood is a Gamma 1.6-liter multi-point injection (MPI) gasoline engine good for 123ps at 6,300 rpm and 151Nm at 4,850 rpm, mated to a six-speed automatic transmission system. Its unibody structure is given MacPherson strut-type suspension at the front and coupled torsion beam axle at the rear.

The all-new Hyundai Venue is available in two variants: the 1.6-liter GLS 6-speed automatic and 1.6-liter GL 6-speed automatic. It comes in the following colors: Denim Blue, Fiery Red, Cosmic Grey, Polar White, and Phantom Black. Pricing is at P915,000 for the 1.6 GL 6AT and P985,000 for the 1.6 GLS 6AT.

For more information, visit www.hyundai.ph, or check out the Hyundai Online Market Experience found within the Hyundai website. The HCares hotline is 0917-877-4877; message on Facebook Messenger: @hyundaiph. — KMA

Palay farmgate price plunges 4.1% in first week of Oct.

THE AVERAGE farmgate price of palay, or unmilled rice, fell 4.1% week on week to P15.79 per kilogram in the first week of October, with the price also up 0.2% from a year earlier, according to the Philippine Statistics Authority (PSA).

In its weekly update of palay, rice, and corn prices, the PSA said the average wholesale price of well-milled rice fell 0.5% to P37.90 while the retail price fell 0.6% to P41.73.

The average wholesale price of regular-milled rice fell 1.1% to P33.86 while the retail price fell 0.6% to P37.04.

The farmgate price of yellow corn grain rose 1.4% week on week to P11.89.

The average wholesale price of yellow corn grain fell 7.7% to P20.25 while the retail price rose 0.1% to P25.05.

The farmgate price of white corn grain fell 1% week on week to P13.32.

The average wholesale price of white corn grain fell 3.9% to P16.58 while the retail price fell 3.1% to P26.53. — Revin Mikhael D. Ochave

Converge slips as wary investors find price tag ‘overvalued’

By Michelle Anne P. Soliman

CONVERGE ICT Solutions, Inc. debuted in a wobbly footing as investors found its price too expensive, making it the most actively traded issue last week.

A total of 509.98 million shares worth P7.69 billion were traded from Oct. 26 to 30, data from the Philippine Stock Exchange (PSE) showed.

The Dennis Anthony H. Uy-led company finished at P14.78 apiece on Friday, slipped 2.9% from its P15.22 finish last Monday. From its P16.80 initial public offering (IPO) price, it declined 12%. Converge was the top traded stock last week.

“For its first week in the secondary market, Converge’s share price plunged 12.02% week-on-week to P14.78 due to its expensive valuation,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in an e-mail.

The fiber internet service provider raised P29.08 billion (around $600 million) from its IPO on Oct. 16 after it offered 1.51 billion common shares at P16.80 apiece. It started trading at the local bourse on Oct. 26 under the ticker symbol “CNVRG.”

In peso terms, Converge was the largest IPO to date. In US dollar terms, it’s next to Robinsons Retail Holding, Inc.’s P26.79 billion or $627 million offering in 2013.

Converge is backed by US-based private equity firm Warburg Pincus. The company plans to use funds raised from its listing to expand in the Visayas and Mindanao.

It is only the second company to go public so far this year, following MerryMart Consumer Corp.’s June listing.

“Based on our 2020 projection, [it] gives a price to earnings (P/E) ratio of 48.64 times. With this, the share is relatively overvalued. Thus, investors sought the share at a lower price in the secondary market,” Mr. Tantiangco added.

Likewise, Mercantile Securities, Inc. Analyst Jeff Radley C. See said that the company slipped on its market debut as investors found the IPO price was still expensive compared with its peers.

“Converge is really priced at an expensive P/E as compared to peers. This is not a short term play, but more of a long term one. Investors wanted to see how Converge can execute all its plans to gain market share,” Mr. See said.

“If we are going to look at the weekly performance of Globe Telecom, Inc. and PLDT, Inc., there isn’t much change. Globe closed the week up by just 0.50% week on week to P2,030. PLDT, meanwhile, inched down 0.67% week on week to P1,328. Meanwhile, CNVRG’s share price changed significantly, declining 12.02% in a week,” Mr. Tantiangco said.

Last Monday, the company announced it would spend P29 billion over the next 18 months to expand its network across the country, which could help it meet its target of reaching out to about 55% households nationwide by 2025.

In a press release last Oct. 30, Converge reported consolidated revenues increasing 71% to P4.19 billion during the third quarter, bringing its nine months to September topline to P10.68 billion, up by 67%.

However, it did not disclose its net income for the third quarter and the January-to-September period.

“For 2020, we project Converge’s net income growth around its three-year compounded annual growth rate of 49.1%. If the 49.1% growth rate is met, its net income for 2020 would be P2.84 billion,” Mr. Tantiangco said.

“Prospect-wise, the company’s expansion into the Visayas and Mindanao area opens more room for growth and opportunities. Add the ongoing shift of the economy to the digital space which is expected to raise demand for data services which, in turn, would be beneficial for firms like Converge,” he added.

For this week, Mr. See offers a projection that the stock might move in a range between P14.40 and P15.40, while Mr. Tantiangco sees sideways trading with support at P14.50 and a resistance at P15.20.  

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