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From and for the forests: 6 locally made products to try

THE EVENTS of last year offered lessons on the importance of not only taking care of ourselves but also the environment. As the beginning of the year gives everyone a clean slate to live healthy and sustainably, helping them achieve these new goals and resolutions are the grantees of the Forest Foundation Philippines, a non-profit organization that provides grants to individuals and organizations that empower people to protect and conserve Philippine forests.

They offer a wide-range of locally made products made from non-timber forest products — these are natural materials other than timber which can be used and consumed. Common examples include nuts, seeds, leaves, honey, and resin. The grantees make handmade items, nature-inspired crafts, as well as sustainably harvested products, from some of Forest Foundation’s focal landscapes: Palawan, Samar and Leyte, and Bukidnon.

From woven banig to all natural honey, here is a list of locally crafted products to try this year:

FROM BUKIDNON
• Kape Hu Mapayag Coffee from Bukidnon.

Kape Hu Mapayag Coffee comes fresh from the fourth highest mountain in the country, Mt. Kitanglad in Bukidnon. In partnership with Philippine Coffee Alliance, Kape Hu Mapayag is made by Kitanglad Guard Volunteers, an association of volunteers from the 28 villages located at the foot of Mt. Kitanglad and who are leading the protection of the mountain range. Check it out on the Kape Hu Mapayag Coffee Facebook page, (3) Coffee -kape hu’ Mapayag | Facebook.

• Brooke’s Point Coco Products Producers Cooperative (BPCPPC) Premium Virgin Coconut Oil from Palawan

This virgin coconut oil is a high-value, multi-purpose product which supports Brooke’s Point Coco Products Producers Cooperative, a community-based social enterprise that provides sustainable livelihood to the farmers of the indigenous Pala’wan tribe. In partnership with Bayan Academy, the cooperative produces and manufactures virgin coconut oil and other coconut-derived products that promote good health. Their VCO is FDA-approved and is made through the cold-press method, which retains all the enzymes such as lauric acid and other immune-building nutrients. VCO is known for its anti-inflammatory, antioxidant, and anti-stress properties and can be used in cooking as well as skincare. Get this at Wild Bounty’s online shop (Brooke’s Bounty Premium Virgin Coconut Oil, 100ml – Wild Bounty PH (myshopify.com) ).

• Nagkakaisang mga Tribu ng Palawan (NATRIPAL) Honey

Contribute to protecting Palawan’s indigenous forests this year by trying NATRIPAL Honey, hand-harvested from trees in Palawan’s forests. Partnered with Bayan Academy, the Nagkakaisang Tribu ng Palawan (NATRIPAL), or the United Tribes of Palawan, is an indigenous peoples organization federated by 63 local associations spread across the island of Palawan. They work with indigenous communities towards the recognition of their rights, natural resource management and establishment of sustainable livelihood enterprises through collecting wild Apis dorsata honey and producing high-quality crafts made of rattan and other forest materials. Get this at Wild Bounty’s online shop (Wildwood Wild Tropical Honey, 250mL – Wild Bounty PH (myshopify.com).

•  Woven banig from Samar and Leyte

Thinking of a brand new look for your home this new year? Redecorate your spaces with vibrant handwoven mats or banig and showcase the craftsmanship of the women of the Old San Agustin Tikog Workers Association (OSATWA). The 34 women weavers and embroiderers in Basey, Samar, the banig capital of the Philippines, seek to empower women through their work. Through banig weaving, they generate their own source of income, and lead in preserving the traditional way of weaving native products, and level up the status of weavers and embroiderers in their municipality. Their products are available on Woven Crafts (woven.ph).

• Life Stories Cards for Conversations with Forest Foundation

If one is planning to take a journey through self-discovery, Life Stories: Cards for Conversations by Where to Next? can help one know more about oneself, navigate one’s surroundings, and experience life through stories. The second deck of Life Stories was created in collaboration with Forest Foundation Philippines and contains 63 questions that can make this year more meaningful for you. Where To Next? is a platform to tell stories and create products that seek to inspire people to go on meaningful adventures. A portion of their proceeds will fund livelihood projects of Aeta communities in Yangil and Botolan, Zambales, Philippines, and will be used to support reforestation and education. Get this now at their online shop, wheretonext.ph/products/life-stories-cards.

• Forest Reflections: Nature Appreciation Journal

Now available for pre-order, Forest Reflections by Cynthia Bauzon-Arre, done in partnership with Forest Foundation, is a planner and workbook for nature appreciation. The journal promotes mindfulness through nature immersion, art therapy, and writing. The workbook can be pre-ordered through bit.ly/FRPH2.

For more information on Forest Foundation and its programs, visit www.forestfoundation.ph and www.facebook.com/forestfoundationph/.

Place-of-origin labels urged to boost domestic rice sales

LOCAL GOVERNMENT UNITS (LGUs) need to implement place-of-origin labelling in rice to boost domestic producers, according to an official with the Philippine Rice Research Institute (PhilRice).

PhilRice policy research and advocacy project lead Alice B. Mataia said in a statement that indicating origins will help consumers distinguish domestically-produced rice from imports, to reinforce perceptions in buyers that they are selecting a product with a shorter supply chain, increasing the likelihood of freshness.

In turn, a consumer preference for domestic rice may encourage traders to procure from farmers here rather than import.

According to Ms. Mataia, guidelines on rice labelling have been in place since 2018, as issued by the National Food Authority (NFA) and indicated in the 2019 Philippine Standards on Grains Grading and Classification.

However, she said the regulatory functions of the NFA, including its role in implementing the national grains standard, were repealed after the passage of Republic Act No. 11203 or the Rice Tariffication Law.

“While the Bureau of Plant Industry (BPI) took charge of NFA’s functions through inspections and issuance of sanitary and phytosanitary import clearances, it did not cover the implementation of labelling guidelines in rice,” Ms. Mataia said.

She also urged the formation of a task force that would guarantee that retailers follow correct standards in labelling.

“The glitches involving who should do what in implementing labelling guidelines have resulted in some traders opting to not comply with the guidelines. Some retailers fail to meet the basic minimum standard and disregard milling grade and source in price tags,” she added.

Meanwhile, Ms. Mataia said another way to promote domestically-produced rice includes complete information on sacks, packages, boxes, or price tags, such as information on where the rice is sourced.

“A PhilRice-International Rice Research Institute (IRRI) study showed that Philippine rice recorded the least pesticide usage than the other rice-producing countries in Southeast Asia. With the LGUs enforcing existing guidelines on labelling of rice boxes and price tags through an ordinance or a resolution, we help consumers exercise their power to choose,” Ms. Mataia said. — Revin Mikhael D. Ochave

Gov’t debt yields rally on buying interest

YIELDS on government securities (GS) dipped last week amid sustained buying interest as the central bank said it will keep benchmark interest rates low to support economic recovery.

Debt yields, which move opposite to prices, dropped 2.7 basis points (bps) on the average week on week, based on the PHP Bloomberg Valuation Service Reference Rates as of Jan. 22 published on the Philippine Dealing System’s website.

With the exception of the 91-day Treasury bills (T-bills) and 25-year Treasury bonds (T-bonds), all debt papers saw their yields go down on Friday from the previous week. At the short end of the yield curve, the rates of the 182- and 364-day T-bills fell 2.7 bps and 1.1 bps, respectively, to 1.36% and 1.596%. Meanwhile, the yield on the 91-day T-bill went up 3.6 bps to 1.165%.

At the belly, the seven-year T-bond saw its yield go down by 5.1 bps to 2.743%. Similarly, the rates of the two-, three-, four-, and five-year papers fell by 3.8 bps (to 1.792%), 3.3 bps (2.069%), 3.5 bps (2.322%), and 3.4 bps (2.537%).

At the long end, yields on the 10- and 20-year T-bonds fell by 10.1 bps (2.899%) and 0.5 bp (3.94%), respectively. On the other hand, the 25-year paper was flat with a 0.1-bp increase (3.933%).

“[Last] week saw decent buying interest for government securities as BSP (Bangko Sentral ng Pilipinas) reiterated their accommodative policy as well as expectations of the continued weakening of GDP (gross domestic product) for the fourth quarter of 2020,” First Metro Asset Management, Inc. (FAMI) said in an e-mailed reply to questions.

“Liquidity favored the short tenors up to the curve’s belly as inflation expectations remain on the high side given reports of persistently elevated food prices,” FAMI added.

Philippine Bank of Communications (PBCom) Senior Trader Justin Robert G. Ladaban noted strong interest in short-dated papers brought about by market liquidity.

“This has anchored yields in general with the longer tenors starting to show better relative value as shown in the BTr’s (Bureau of the Treasury) last T-Bond auction of the FXTN 10-61,” Mr. Ladaban said in an e-mail.

He added that the BSP has been consistent in signaling its intention to keep interest rates low despite headline inflation going above 3% in the last two months. 

Inflation was at 3.5% in December, the fastest pace in 22 months amid higher food prices and transport rates during the holiday season.

The uptick was caused by “short-term considerations” that are bound to happen regardless of rate cuts implemented by the central bank, BSP Officer-in-Charge Francisco G. Dakila, Jr. said in a briefing last week.

Mr. Dakila said inflation is expected to stay within target over the next two years despite a recent uptick in global oil prices as well as food prices due to supply disruptions caused by typhoons. This gives the BSP room to remain accommodative this year, he said.

The central bank last year cut benchmark interest rates by 200 bps, which brought the yields on its overnight reverse repurchase, lending, and deposit facilities to record lows of 2%, 2.5%, and 1.5%, respectively.

This week’s yield movements will take their cue from GDP data, the analysts said.

“We should see yields continue to grind lower [this] week ahead of the release of the fourth-quarter GDP data,” Mr. Ladaban said.

FAMI said yields are “expected to trade sideways” ahead of the fourth-quarter and full-year 2020 GDP print and BTr’s borrowing schedule for February.

“We expect, however, for the FXTN 3-23 maturity to support demand for bonds in the front up to belly space,” FAMI said.

The Philippine Statistics Authority will release fourth-quarter and full-year 2020 GDP figures on Thursday.

The government expects the economy to have shrunk by 8.5-9.5% in 2020. GDP declined by 11.5% in the third quarter. This brought the total contraction in GDP for the first nine months to 10%. — Marissa Mae M. Ramos

ICTSI draws investors after finishing Manila terminal expansion

INVESTORS loaded up on shares of International Container Terminal Services, Inc. (ICTSI) last week after it completed its Manila container terminal expansion project.

Data from the Philippine Stock Exchange (PSE) showed a total of 7.04 million shares worth P8.98 million exchanged hands from Jan. 18 to 22, making it the fifteenth most actively traded stock last week.

The share price of the Razon-led port operator closed at P128.50 on Friday, up by 1.3% from a week ago. Year to date, the stock has gained two percent.

“ICTSI moved notably higher through the week as it exhibited relative strength over the PSEi,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an e-mail, referring to the bellwether PSE index.

Mr. Mercado noted that the pickup of trading volume from last Wednesday to Friday was likely driven by news on the completion of the Manila International Container Terminal (MICT) capacity expansion project as well as the ICTSI’s Colombia terminal hitting one million twenty-foot equivalent unit (TEU) milestone.

“The stock, however, failed to sustain the rally on Thursday (wherein it attempted to breach the P130 resistance) — but this is likely more attributable to broad market weakness,” Mr. Mercado added.

The completion of the berth expansion at the MICT is already priced into the ICTSI stock, according to AAA Southeast Equities, Inc. Research Head Christopher John Mangun.

“Although the expansion will help ease congestion once import volumes pick up, investors are still more focused on actual volumes, which are still slightly lower compared to 2019,” he said in an e-mail.

ICTSI last Tuesday said it had completed a berth expansion project at the MICT, which increased the terminal’s annual capacity by a tenth to 3.3 million TEUs.

It added another 150 meters to the Berth 7 of the MICT that created a 600-meter contiguous berth together with the adjacent Berth 6 to fit in more than 8,000 TEU capacity vessels.

This expansion was complemented by the extension of the container yard by another 5.5 hectares, raising the terminal’s added capacity of an estimated 200,000 TEUs for laden containers and 150,000 TEUs for empties.

ICTSI’s revenue was lower by 0.9% year on year to $1.13 billion in the nine months to September, while its attributable net income edged down by 1.2% to $182.61 million during the same period.

It is involved in 32 terminal concessions and port development projects in 19 countries worldwide.

“We are expecting revenues for the fourth quarter to be slightly lower than the year before, but because of cost preservation measures that the company took, net income may still see growth year on year, similar to what has happened in the first nine months of 2020,” Mr. Mangun said.

He projects ICTSI’s fourth-quarter earnings in 2020 at $65 million to $70 million and a full-year net income at around $245 million to $250 million.

Going forward, Mr. Mangun expects the stock to recover all its losses from last year and move toward P130 as volumes pick up.

He placed the support between P120 and P125 with resistance at P130 to P135.

“For this week, ICTSI may attempt another breakout off the P130 resistance. In case this doesn’t materialize, then we see the issue trading between P125 to P130,” Mr. Mercado said. — Michelle Anne P. Soliman

Style (01/25/21)

Binibining Pilipinas resumes with the National Costume Photo Exhibit

BINIBINING Pilipinas formally reopened the postponed 2020 pageant with an on ground and online launch of the Binibining Pilipinas National Costume Photo Exhibit on Jan. 22. A physical photo exhibit was opened at the Gateway Mall, featuring life-size pictures of the Binibini candidates wearing their intricate and colorful costumes. The photos were earlier released online via the official Facebook page of Binibining Pilipinas, and are now presented in an onsite gallery that will allow fans to see the pictures up-close. Binibining Pilipinas Charities, Inc. (BPCI) chairperson Stella Marquez-Araneta announced during the online launch that the Binibining Pilipinas coronation night is expected to take place on April 17. Pageant fans can visit the Binibining Pilipinas National Costume Photo Exhibit at the activity area of Gateway Mall from Jan. 22 to 31, and at the Upper Ground floor of Ali Mall from Feb. 1 to 14.

MaArte @ Zalora extended

THE HOLIDAYS may be over, but the clamor for well-made local products continues — which is good for supporters of the Museum Foundation of the Philippines (MPFI) and its online bazaar MaArte @ ZALORA. The first online edition of the annual MaArte Fair was held from October to December last year, but was so successful that MaArte @ ZALORA  is extending its run till Feb. 28 and will be featuring a new inventory, restocked with items that were previously unavailable during the holidays. Among the exhibitors are Gifts & Graces, MCV Designs, Milvidas, Antukin Sleepwear, TdLG by Tweetie de Leon-Gonzalez, Whimsy by Silay Export, WYC – Wear Your Culture, Barba by Vittorio Barba, Amarie, Beyond Borders, Creative Definitions, Ibarra Watches, Coco & Tres, Pika Pika Cards, Siklo Pilipinas, Tilia, Tim Tam Ong, and WVN Home Textiles. Among the items available are rings and pendant necklaces by T’boli artisan metal crafters of Lake Sebu, South Cotabato (Gifts & Graces); boho-style ring cuffs and ear huggers in sterling silver and yellow gold, and adorned with stones such as olive jade and aquamarine (TdLG); carry-all On-the-Go totes covered in plastic and lined with tarp material, making it easy to wipe clean (MCV Designs); accessories cases made from locally sourced cotton, perfect for organizing small items in one’s bag (Milvidas); elegant sleepwear for kids and grown-ups (Antukin Sleepwear); table mats and pillowcases made with Manobo embroidery (WYC); and roomy kaftans made with cotton challis (Barba). Visit zalora.com.ph/maarte or download the ZALORA app (available on iOS and Android).

Discounts and promos at Rustan’s

SHOP for activewear, kid’s, and home items at major discounts and exclusive promos until Feb. 28. Shop for new exercise apparel and accessories at New Balance at 60% off on select items in all stores. Columbia is also offering up to 50% off on selected items in its Makati branch. Check out select Under Armour items up to 40% off in all stores. Visit Nike in Makati, Shangri-La, Gateway, and Cebu stores to avail up to 30% off on select items. Visit Champion in Makati, Shangri-La, Alabang, and Gateway stores from Jan. 29 to 31 to avail of 20% discounts on select items. Those interested in children’s products may find it interesting to know that they can get 20% off when the shop at Okie Dog, Zoli, and Health Guard; 15% off at Nuvita and Plibe; 10% off at Banz, Crane, Ecomom, Euky Bear, Haenim UV Sterilizer, Hubidic, Nose Frida, Owl Baby, and Roobeter; and 5% off at Stephen Joseph. Get up to 70% off on Micro, Under Armour and New Balance products for kids. For the home, get 35% off on select items at Maximus; up to 30% off at ConAir, Cuisinart, Tefal and Ralph Lauren Candles & Diffusers; 25% off at Philips and Fine Guard N95 Mask; 20% off at Dorma and Joseph Joseph; 15% off on select items at Uratex; and 10% off at Malouf, Delonghi, Monarc, Breville, Linen and Homes, and JTeaL. Organique and TruSens are also offering a 10% discount, get a free HEPA filter for every purchase of one TruSens air purifier. Receive a complimentary two-way scarf for every purchase of Pili Essential Oils Travel Kit set of five. Furthermore, customers can enjoy a P3,000 cash discount on select Russell Hobbs air fryers. Finally, credit card holders can enjoy a three-month 0% installment on selected items at Dyson. Frequent Shopper Plus members are rewarded with higher FSP multipliers within the promo period. Loyal customers can take advantage of x3 and x5 FSP multipliers whenever they purchase from activewear and home brands, respectively. Participating home brands include Bath Rustan’s Home and Landlite until Feb. 28. Shop for face masks from Fine Guard and the National Artist collection and earn x5 FSP points until Feb. 28. Enjoy x10 FSP points when you purchase home wellness products from Koziol, Natori, and Sorema from Feb. 1 to 12 and Feb. 15 to 28.

‘Smarter skincare’ with AI-powered chatbot

POND’S has partnered with e-commerce platform Shopee to launch the “Smarter Skincare Just For You” regional campaign. This campaign integrates Pond’s Skin Advisor Live (SAL) AI chatbot exclusively on Shopee for the first time. Based on SAL’s free skin analysis, users can gain a deeper understanding of their skin and buy the most effective skincare products, all from the comfort of their homes. This provides a simple one-stop beauty solution for consumers who are often overwhelmed with beauty choices online. The campaign has been rolled out in phases across four markets in Southeast Asia including  Indonesia, Philippines, Thailand, and Vietnam. Following the launch of SAL on Facebook Messenger across nine countries last year, Pond’s  observed that up to 98% of consumers cited that they enjoyed their interactions with SAL. This innovative feature helps customers analyze their skin types, find the right skincare products, and add these items to their shopping carts. Shoppers simply have to follow the easy “Chat, Snap, Buy” three-step process by messaging the Unilever Beauty Official Store on Shopee.

Lush adds to the Sleepy product range

LUSH launched a new addition to its acclaimed Sleepy product range. The Beauty Sleep face and body mask combines rich ingredients to polish the skin, with a generous helping of its most luxurious moisturiser Gorgeous, to nourish it. Inspired by Lush Co-founder and Product Inventor, Mark Constantine’s quest for a good night’s sleep, Beauty Sleep has been refined and personally tested by Lush Co-founder, Helen Ambrosen and Mr. Constantine for over a year. “Have a bath, and use this face mask to sleep like a dream when you go to bed,” said Mr. Constantine in a press release. The mask is composed of sleep-inducing lemon verbena and valerian root (extracted in honey sourced from the Barro Vermelho community in Brazil), hydrating mullein, a linseed decoction, gently polishing ground organic aduki beans, and a dollop of Lush’s moisturizer, Gorgeous. The Beauty Sleep face and body mask is available for P875 for 125 gm, and P1,595 for 315 gm. Lush has shops at Alabang Town Center, Bonifacio High Street, Estancia in Capitol Commons, Glorietta 4, Greenbelt 3, Robinsons Magnolia, Shangri-La Plaza, SM Mall of Asia, and TriNoma. It is also available in Zalora and Trunc.com.

Shopping with Robinsons Rewards

WHILE Christmas is over, Robinsons Rewards continues to share the gift of a rewarding shopping experience with members all year round. Every peso that shoppers spend at partner brands and merchants automatically gives them a corresponding point. They can earn (and redeem) these points whenever they shop at Robinsons Department Store, Robinsons Supermarket, Robinsons Selections, Robinsons EasyMart, Handyman, True Value, Daiso Japan, and other partners. For home maintenance and improvement needs, visit True Value and enjoy exciting deals and discounts on cleaning tools and supplies when shopping with the Robinsons Rewards app. Shopping for toys is now more rewarding and as easy as going on the Toys ‘R Us shop at the GORobinsons website. Parents can take advantage of the buy-one, take-one deals, plus earn points when they shop using their Robinsons Rewards app. Members can use their points on their next shopping trip and must simply scan the QR code using the Robinsons Rewards app or scan the barcode of the Robinsons Rewards Classic Card, to go cashless and redeem or transact with points. To start earning rewards, non-members can download the Robinsons Rewards mobile app and follow the on-screen instructions to sign up for free. The Robinson Rewards app is available for free download via iOS App Store, Google Play Store, and Huawei App Gallery.

Valenzuela takes delivery of 61 Foton vehicles for city projects and programs

IN AID of public service programs in Valenzuela City, Mayor Rex Gatchalian, with help from the office of Senator Sherwin Gatchalian, chose Foton commercial vehicles to empower “mobility for city-wide projects and programs designed to build stronger and faster response capabilities for the city’s barangays.”

A total of 61 vehicles — 42 units of the Foton Tornado 4.4C Mini Dump Truck for multi-purpose operations and 19 units of the Foton Gratour Midi Truck for animal control programs — were turned over at the Valenzuela City Hall grounds.

“These units are specialty vehicle trucks, utility trucks for the delivery of relief goods, and (trucks for) animal control units. Our strategy is to give them to the local towns so they can render faster service to the people,” said Senator Gatchalian in a release.

“I believe we are again the first city in the country to have animal control units,” added Mayor Gatchalian.

The customized Foton Gratour MT Animal Control Truck is powered by an efficient 1.5-liter gasoline engine capable of producing 110hp at 6,000rpm and 142Nm at 4,500rpm. It is mated with a five-speed manual transmission and complies with Euro V standards. Its compact build means it can negotiate even the smaller streets of different barangays, which makes it a perfect unit for catching stray dogs that threaten the safety of citizens.

Senator Gatchalian said that the idea to acquire dump trucks came to him during the pandemic, as he wanted to distribute 200,000 food packs in one week. He and the Valenzuela mayor decided that this type of vehicle is suited to the task, and can still be used for other needs.

The Foton Tornado 4.4C Mini Dump Truck is powered by the “world-famous” ISF 3.8 Cummins Diesel Engine, with a maximum output of 154hp at 2,600rpm and torque of 500Nm at 1,200 to 1,900 rpm. It has a payload capacity of 4,590kg and can fit a large volume of relief goods in its 4CMB dump box. For more info, call 0999-999-9998 or e-mail inq@foton.com.ph, or follow FB/FotonPhilippines, IG/FotonPhilippines, Twitter@FotonPH.

How PSEi member stocks performed — January 22, 2021

Here’s a quick glance at how PSEi stocks fared on Friday, January 22, 2021.

Peso to climb before US Fed policy meeting

THE PESO is likely to strengthen versus the dollar this week on expectations that the US Federal Reserve will keep rates low to support the world’s largest economy.

The local unit finished trading at P48.085 per dollar on Friday, shedding 3.1 centavos from its Thursday close of P48.054. It also weakened by two centavos from its P48.065-per-dollar finish on Jan. 15.

The peso dropped against the greenback last week due to risk-off sentiment on higher coronavirus cases in the country, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

New virus cases rose by 2,178 on Friday, based on data from the Department of Health. It increased by 1,797 to 511,679 patients on Saturday, with 33,603 active cases.

For this week, Mr. Ricafort said peso-dollar trading will take cues from the Fed’s policy review this week.

The Federal Open Market Committee will have its first policy meeting for the year from Jan. 26 to 27.

Fed Chairman Jerome Powell said earlier this month that an interest rate hike will come “no time soon” as the country continues to be ravaged by economic problems and the health crisis, Reuters reported.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the central bank may keep supporting the P48-per-dollar level amid a likely slimmer trade deficit and an expected contraction in the country’s gross domestic product (GDP) last year.

A BusinessWorld poll of 18 economists and one institution last week yielded a median estimate of a 9.5% contraction in GDP for 2020 and an 8.5% decline in the fourth quarter.

If realized, the full-year estimate will match the higher end of the government’s -8.5% to -9.5% projection. The Philippine Statistics Authority will report official GDP data on Thursday.

For this week, Mr. Ricafort gave a forecast range of P48.03 to P48.14 per dollar while Mr. Asuncion expects the peso to trade within the P48 to P48.10 band. — L.W.T. Noble with Reuters

Stocks to move sideways ahead of GDP report

SHARES are expected to move sideways this trading week as investors await the release of 2020 gross domestic product (GDP) data on Thursday.

The bellwether Philippine Stock Exchange index (PSEi) ended at 7,045.83 on Friday, lower by 94.46 points or 1.32% from the previous trading day.

Week on week, the main index retreated 192.63 points or 2.66%, extending its decline.

The market’s average value turnover for the week rose 21% to P12.68 billion, while average net foreign selling expanded to P964.48 million.

Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market may move sideways this week as investors wait for the release of data on the economy’s performance last year.

He said trading this week will also depend on the ongoing spread of the coronavirus disease 2019 (COVID-19) in the country.

“Over the longer term perspective, investors continue to assess the coronavirus vaccine rollout especially amid the increase in cases in some provinces of the country,” Mr. Pangan said.

Recent bulletins from the Department of Health showed some of the provinces that posted the most number of new COVID-19 cases include Davao City, Isabela, Bulacan, Rizal, Cebu City, and Mountain Province.

Online brokerage 2TradeAsia.com said in a market note that the GDP data will push anticipation-driven volatility in the next few sessions.

“The economic team expects -5.5%; World Bank at -8.15%, while the Bangko Sentral ng Pilipinas (BSP) expects a more conservative -9%,” 2TradeAsia.com said.

“While negative figures may have already been baked-in in share price, any downside surprise will be detrimental to already directionless sentiment, particularly for cyclicals and recovery-correlated shares,” it added.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the market is seen to decline amid waning optimism and amid developments regarding the new COVID-19 variant.

“The further spread of the new strain in the country is expected to weigh on market sentiment since it poses the risk of returning to the more stringent social restriction measures, which is seen to derail our economic recovery,” Mr. Tantiangco said in a mobile phone message.

2TradeAsia.com said the market’s immediate support will be at 7,000, secondary at 6,850, and resistance at around 7,300 to 7,350.

“7,000 remains the support area that we have to watch, with 6,800 being the next major support level. 7,300 on the other hand is where resistance may be pegged at,” Timson Securities’ Mr. Pangan said.

“The PSEi may test its 50-day exponential moving average, a dynamic support, which is currently at 7,005.71. If it falls below that line, the market’s next support is seen at 6,900. Resistance on the other hand is seen at the 7,150-7,200 range,” Philstocks Financial’s Mr. Tantiangco said. — Revin Mikhael D. Ochave

Filipino tennis wunderkind Eala wins first pro women’s title

Filipino tennis wunderkind Alex Eala added to her growing list of achievements, winning her first International Tennis Federation (ITF) professional women’s title at the Rafael Nadal Academy World Tennis Tour on Sunday (Manila time).

Eala, 15, defeated hometown bet Yvonne Cavalle-Reimers in the finals, 5-7, 6-1 and 6-2, held at the Rafa Nadal Academy in Mallorca, Spain.

Despite facing an opponent 13 years her senior, Eala held her own especially in the last two sets where she dominated.

Cavalle-Reimers pulled the rug from under the Filipino in the opening frame, overhauling Eala’s 5-4 lead, to take an early cushion in the game.

In the next two sets, however, Eala would not relinquish momentum when she got her groove en route to the groundbreaking victory.

The win continued for Eala a solid run in the tennis circuit.

She won the Australian juniors doubles title in January last year then made the semifinals of the French Open juniors tournament later in 2020.

Along the way, she saw her world ranking steadily rise.

Eala is a scholar at the Rafa Nadal Academy and is the number 3 junior player in the ITF and currently ranked 1,180th in the world.

She is also a Globe ambassador.

Infra spending key to jobs, says think tank

By Kyle Aristophere T. Atienza

JOB CREATION this year will depend largely on how efficient the government is in administering its infrastructure program, with underspending cited as a key risk, according to an infrastructure think tank.

“The Duterte government should do what it can to deliver on its 2021 infrastructure projects as this boosts economic productivity at a time of high unemployment for a large chunk of our working class. This should, however, be contingent on our ability to fund continuing responses to the pandemic, such as the procurement of vaccines from various sources and social programs in the event of future lockdowns,” Terry L. Ridon, convenor of InfraWatch PH, told BusinessWorld Sunday via messenger.

Mr. Ridon warned that underspending “despite the pandemic” will further disenfranchise workers in the infrastructure sector.

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua has said that unemployment will likely fall to between 6% and 8% this year, citing the boost to growth provided by the P4.5-trillion national budget, which sets aside at least P1.1 trillion for infrastructure.

“Underspending despite the pandemic will reflect poor budget management and implementation of funding that could have been used elsewhere, such as funding for other aspects of the coronavirus response,” Mr. Ridon said.

The Budget department estimates that infrastructure and other capital outlays declined by 50% to P40.3 billion in November. Infrastructure spending in November was also 29.4% smaller than the October total.

According to preliminary data presented by the Finance department on Jan. 12, overall government spending hit P4.205 trillion in 2020, short of the P4.23-trillion target.

“There is still time to deliver on infrastructure commitments, and we hope the government can address weak areas in implementation in the soonest time,” Mr. Ridon said.

Republic Act No. 11520, passed in mid-December, extended the validity of the 2020 budget to the end of this year for the financing of infrastructure projects that underwent procurement last year.

“Infrastructure spending will also be the showcase of the government’s legacy in the run-up to the 2022 polls,” Mr. Ridon said.

Herman Joseph S. Kraft, chair of the Department of Political Science at the University of the Philippines at Diliman, said the pandemic mitigation and the upcoming elections could serve as “stumbling blocks” for infrastructure spending this year.

“Political influence on decision-making, the prioritization of COVID-19 responses, and now the distraction of early campaigning for national elections mean that infrastructure projects, no matter how important, will have other interests competing with it for priority in the small amount of time remaining until the next elections,” he told BusinessWorld by telephone.

Mr. Kraft said the government should ensure that infrastructure spending is not used for local politics.

“Historically every end of every presidential term, budget spending and growth of the national product is always high, especially in the period nearing presidential elections,” Marlon M. Villarin, a political science professor at the University of Santo Tomas, told BusinessWorld in a Viber message.

He said the government must fully utilize spending to recover from declining foreign direct investment.

MIBON Foundation Executive Director Sonny A. Africa, said weak infrastructure spending even “six months since the end of the ECQ lockdown” only reinforces the inappropriateness of infrastructure as a stimulus measure.

“Not only is it import-intensive and boosting foreign economies rather than the Philippines, but absorptive capacity is apparently also low,” he told BusinessWorld via messenger.

Senator Panfilo M. Lacson has questioned the increase in the proposed budget of the Department of Public Works and Highways (DPWH) for 2021 citing low utilization. He said the DPWH’s unused appropriations totaled P81.9 billion between 2011 and 2018, with a disbursement rate of only at 37.8%.

“This is consistent with recent (Commission on Audit) reports of past years that the DPWH and (Department of Transportation) have a poor record of spending their annual budgets,” Mr. Africa said.

“This casts the doubt on whether the P1.1-trillion infra budget for 2021 will even be fully spent. The compulsion to implement infra projects to realize kickbacks in the run-up to the 2022 elections may still not be enough,” he added.

Mr. Africa said spending the same amount on cash subsidies will deliver more “stimulus bang for the buck” aside from also being more directly felt by more poor families.

Bicameral committee may be hard-pressed to meet deadline for key tax bill

THE bicameral session on a key tax reform bill continues to be subject to negotiations by the delegations sent by both chambers of Congress, with a key legislator suggesting that both chambers may be hard-pressed to meet a self-imposed January deadline for approving it.

Albay 2nd District Rep. Jose María Clemente S. Salceda said in a message to BusinessWorld Sunday that “We are trying” to meet the target of January approval, but added that both chambers are still laying down their positions on the measure’s final form.

“The Speaker (Lord Allan Jay Q. Velasco) has instructed me as Chairman (of the ways and means committee) to send the House positions to the Senate on a secretariat to secretariat conference,” Mr. Salceda said.

He did not elaborate, but such a conference may suggest both sides are still haggling on the measure’s fine details. The House has been pressing for a version of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act that contains more incentives for investment in the countryside.

CREATE, which has been repositioned as an economic stimulus bill after previous incarnations that only called for an overhaul of the corporate tax and incentives regimes, contains provisions that reduce taxes retroactively to the second half of 2020. Any delays in passage would give companies little time to prepare their taxes under the new rate structure by the April tax filing deadline.

CREATE seeks to lower corporate income tax to 25% immediately from 30%.

The measure was formerly called the Tax Reform for Attracting Better and Higher Quality Opportunities bill in 2018 and then Corporate Income Tax and Incentives Rationalization Act (CITIRA) after several revisions. It was repositioned as a relief measure for businesses after the pandemic.

The House of Representatives listed the passage of the CREATE bill as a priority measure when the Congressional session resumed on Jan. 18.

“We are working very hard because CREATE is far different from CITIRA,” he added. CITIRA was certified as urgent by President Rodrigo R. Duterte in March. — Gillian M. Cortez

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