Megaworld plans to offer REIT by second half of 2021

May 12, 2021 | 12:01 am

LISTED property developer Megaworld Corp. said it is looking to launch its own real estate investment trust (REIT) by the second half of the year.

“We’re looking to launch our REIT by [the] second half. I can’t say much… but I can tell you it’s going to be big,” Kevin Andrew L. Tan, Megaworld chief strategy officer, said in an interview with ABS-CBN News Channel on Tuesday.

In a regulatory filing last week, Andrew L. Tan’s property firm said it bumped up its budget for capital expenditures this year to P36 billion from P27.9 billion, the majority of which or around 76% will be used for the construction of real estate projects.

Around 24% will be allocated for investment properties.

“We approach our capex with a little bit of caution still… we do have priorities right now, which is to complete a lot of our development projects and our recurring income projects as well,” Mr. Tan said.

Megaworld did not allocate a budget for land banking activities this year because Mr. Tan said the company is still “comfortable” with its current land bank spanning around 4,500 hectares of undeveloped land.

However, Mr. Tan added that Megaworld will be open to revising the company’s capex and its allocation should it see opportunities this year.

On Tuesday, shares of Megaworld at the local bourse declined by 2.3% or seven centavos to close at P2.98 apiece. — Keren Concepcion G. Valmonte

London’s V&A museum unveils new Raphael gallery

May 12, 2021 | 12:01 am

LONDON — London’s Victoria & Albert museum unveiled a revamped look for its gallery holding the Raphael Cartoons last week, following a refurbishment carried out to mark 500 years since the Italian Renaissance master’s death. The renovated Raphael Court features acoustic panelling, LED lighting, and bespoke furniture, all aimed at showcasing the works’ colors and intricate details, the museum said. Raphael, who died in 1520 aged 37, painted the seven large designs for tapestries, which depict scenes from the lives of Saint Peter and Saint Paul, after they were commissioned by Pope Leo X for the Sistine Chapel. “Cartoon in this context is a work which is a design for something … It’s a work which is a kind of design tool,” Philippa Simpson, director of design, estate and public program at the V&A, told Reuters. “The works … are probably some of the most significant Renaissance masterpieces in the UK.” Visitors will also be able to use a QR code for a detailed digital explanation of the Cartoons, on loan to the museum from the Royal Collection. The V&A, named after Queen Victoria and her husband Prince Albert, will re-open its doors to the public on May 19 in the next phase of Prime Minister Boris Johnson’s roadmap out of lockdown. Though entry is free, visitors will need to book timed tickets and wear face coverings. — Reuters

How PSEi member stocks performed — May 11, 2021

May 12, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, May 11, 2021.

Gross Domestic Product (GDP) Quarterly Performance (Q1 2021)

May 12, 2021 | 12:00 am

THE PHILIPPINE economy contracted more than expected in the first quarter, extending the recession to five straight quarters as the pandemic dragged on, data from the Philippine Statistics Authority (PSA) showed on Tuesday. Read the full story.

Auto Sales

May 12, 2021 | 12:00 am

VEHICLE SALES surged in April from the extremely low base a year ago when Luzon was placed under the strictest form of lockdown, according to industry data. Read the full story.

Peso rises on sluggish import prospects after weak Q1 GDP data

May 11, 2021 | 9:00 pm

THE PESO strengthened versus the greenback on Tuesday despite data showing the economy continued to contract in the first quarter.

The local unit closed at P47.81 per dollar on Tuesday, appreciating by 5.5 centavos from its P47.865 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s trading session at P47.90 per dollar. Its weakest showing was at P47.92, while its intraday best was its close of P47.81 against the greenback.

Dollars exchanged rose to $837 million on Tuesday from $715.25 million on Monday.

The peso appreciated as the market factored in the impact of the gross domestic product (GDP) drop seen in the first quarter on the country’s imports, which could affect the currency, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“The softer-than-expected GDP could still signal slower economic recovery and slower recovery in imports as well as demand for dollars to pay for these imports,” Mr. Ricafort said in a text message.

Philippine economic output shrank by 4.2% in the January to March period, marking five straight quarters of decline and the longest recession since the Marcos era.

Last quarter’s GDP contraction was also worse than the median estimate of -2.6% in a BusinessWorld poll of 18 analysts last week.

Meanwhile, a trader said the peso rose versus the dollar due to “prospects of loosening quarantine restrictions” in Metro Manila and the adjacent provinces that are currently under the modified enhanced community quarantine (MECQ).

Metro Manila, Cavite, Laguna, Rizal, and Bulacan are under MECQ until May 14. A decision on the restrictions for the rest of May is due to be announced by the Palace within the week.

For today, Mr. Ricafort sees the peso moving at P47.75 to P48.85 per dollar while the trader gave a wider range of P47.80 to P48. — LWTN

PSEi inches up on bargain hunting after GDP drop

May 11, 2021 | 9:00 pm

PSE-Trading-Floor-3 — COURTESY OF PHILIPPINE STOCK EXCHANGE, INC.

PHILIPPINE shares went up on Tuesday on last-minute bargain hunting following the market’s decline as data showed the economy contracted worse than expected in the first quarter.

The Philippine Stock Exchange index (PSEi) went up by 9.42 points or 0.14% to close at 6,326.83 on Tuesday, while the all shares index increased by 1.25 points or 0.03% to finish at 3,907.96.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said last-minute bargain hunting after the index’s drop during the day caused it to post a gain.

“Investors took opportunity out of the market’s dip within the trading day caused by the dismal Q1 2021 GDP (gross domestic product) figures. The progress in the country’s COVID-19 (coronavirus disease 2019) vaccine procurement helped spur positive sentiment. Trading lacked conviction,” Mr. Tantiangco said in a Viber message.

The economy contracted for a fifth straight quarter in the January to March period to log its longest recession since the Marcos era, the Philippine Statistics Authority reported on Tuesday.

Philippine GDP declined by 4.2% in the first quarter, better than the 8.3% drop in the previous three-month period but worse than the 0.7% dip seen in January to March 2020. The first-quarter print was also steeper than the -2.6% median estimate in a BusinessWorld poll of 18 analysts conducted last week.

The government is targeting GDP growth of 6.5-7.5% this year, but is expected to revisit this goal in the coming weeks.

Meanwhile, the country received 193,050 doses of a vaccine developed by Pfizer, Inc. on Monday evening, which is part of the World Health Organization’s COVAX facility.

First Metro Investment Corp. Head of Research Cristina S. Ulang, meanwhile, said the country’s first quarter economic performance was “not much of a shocker as [a] worse number was widely expected.”

“[First-quarter] corporate earnings were largely resilient. Market is moving on, watchful of emerging policy drivers like more of BSP (Bangko Sentral ng Pilipinas) accommodation in this week’s meet and a further relaxation of mobility restrictions come May 15,” Ms. Ulang said in a separate Viber message.

Sectoral indices were split on Tuesday. Mining and oil fell by 286.03 points or 2.92% to 9,491.17; financials lost 4.36 points or 0.31% to 1,399.71; and industrials went down by 13.19 points or 0.15% to end at 8,655.37.

Meanwhile, holding firms gained 18.16 points or 0.28% to 6,339.02; property improved by 8.79 points or 0.28% to 3,056.86; and services added 0.05 point to close at 1,460.24.

Value turnover inched up to P4.64 billion on Tuesday with 9.95 billion shares switching hands, from the P4.57 billion with 2.05 billion shares traded on Monday.

Decliners outnumbered advancers, 122 against 82, while 43 names closed unchanged.

Net foreign selling went up to P347.88 million on Tuesday from P329.46 million on Monday. — K.C.G. Valmonte

Tugade sees major progress in privatization of Bohol-Panglao

May 11, 2021 | 8:29 pm

TRANSPORTATION Secretary Arthur P. Tugade said Tuesday he hopes to see significant progress in the privatization of the Bohol-Panglao International Airport and the Davao International Airport by June and July, respectively.

“There are parties interested (in Bohol-Panglao airport) … There are discussions now regarding certain technical things,” Mr. Tugade said at an online forum organized by the Management Association of the Philippines.

“We hope that by the end of June, we will put this issue of Panglao to rest, and we will be ready to make the award upon compliance with the requirements by NEDA (National Economic and Development Authority),” he added.

As for the Davao International Airport, he said: “This is right now under discussion with NEDA. There are certain compliance items that are being requested and (required) of the proponent.”

“(I hope) by July, this matter will have been decided and resolved,” he added.

Aboitiz Group, through its infrastructure arm Aboitiz InfraCapital, Inc., submitted an unsolicited proposal for the operations and maintenance concession of the Bohol-Panglao airport, which was approved by the NEDA Board in November 2019.

Chelsea Logistics and Infrastructure Holdings Corp. was granted the original proponent status for the modernization of Davao airport in 2018.

The proposal “went (through) several iterations between and among NEDA, DoTr (Department of Transportation), CAAP (Civil Aviation Authority of the Philippines), and the proponent, Chelsea Logistics,” according to a recent statement from CAAP.

Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy has said revisions to the proposal were made to take into account the pandemic impact and other requirements. — Arjay L. Balinbin

ARTA issues show-cause order to FDA drug center over inaction on drug applications

May 11, 2021 | 8:29 pm

THE Anti-Red Tape Authority (ARTA) issued a show-cause order to the Food and Drug Administration’s (FDA) drug testing center for alleged inaction on more than 600 drug applications.

In a statement Tuesday, ARTA confirmed that Investigation Enforcement and Litigation Director Jedrek C. Ng sent the order to the FDA’s Center for Drug Regulation and Research Director Jesusa Joyce N. Cirunay.

ARTA said the show-cause order was a result of 23 affidavits of various pharmaceutical firms that detailed the alleged delays, some involving applications filed starting 2014.

ARTA Director General Jeremiah B. Belgica said the applications are not considered complex — one of the standards that allow for extended review. — Revin Mikhael D. Ochave

Mobile phones generate P2 billion in BoC collections year to date, up 27%

May 11, 2021 | 8:28 pm

BUREAU OF CUSTOMS (BoC) collections generated by imports of mobile phones rose 27% year on year to P2 billion in the four months to April following the adoption of an improved valuation system.

The Department of Finance (DoF) said in a statement Tuesday that the increased revenue was accompanied by a 30.4% drop in import volume.

Customs Commissioner Rey Leonardo B. Guerrero said the new valuation system charges tax per device and takes into account the brand of device, and the result reflects the import of higher-end units as well.

The DoF said Customs also generated higher collections from other devices and accessories in the four months.

It collected P24.79 million from mobile phone parts, up 78% year on year, and P3.46 billion from other types of telecommunication devices, up 28%.

This brought the total collections from the telecommunications sector to P5.49 billion as of April, up 28%.

Meanwhile, the BoC’s rice tariff collections rose 3.8% to P5.67 billion.

Volume of rice imports fell 9.2% to 804,360 metric tons in the January-April period.

Mr. Guerrero said the decline in the volume of imported grain coincided with the domestic harvest season.

The collections in those four months accounted for 57% of the P10 billion the BoC must remit to the Rice Competitiveness Enhancement Fund (RCEF) as required by Republic Act 11203, or the Rice Tariffication Law.

RCEF supports farm mechanization and other programs to enable farmers to better compete against imports. — Beatrice M. Laforga

Microfinance regulator eases compliance requirements for NGOs

May 11, 2021 | 8:27 pm

THE Microfinance NGO Regulatory Council (MNRC) said it has eased the requirements for non-government organizations (NGOs) engaged in such lending in order to avert any failure to comply with the law governing the industry.

Memorandum Circular No. 1 Series of 2021 detailed prudential relief measures such as the relaxation of the P1 million minimum fund balance requirement, the minimum 50% rating in financial performance indicators, and the minimum 60% weighted average rating for all performance indicators.

“The MNRC recognized the request of the microfinance industry for prudential relief measures aimed at encouraging accredited (microfinance) NGOs to concentrate their operations and resources in the continuous delivery of microfinance services during this extraordinary situation,” the MNRC said in the memorandum circular, published Monday.

The regulatory relief measures will allow NGOs to remain compliant with Republic Act (RA) No. 10693 or the Act Strengthening Nongovernment Organizations (NGOs) Engaged in Microfinance Operations for the Poor, and its implementing rules and regulations.

“Reports and other documents to be submitted to the MNRC covering calendar year 2020 under Item 3 of MNRC M.C. No. 2, Series of 2020 shall be extended to (Dec. 31),” the MNRC said.

Reports or documents submitted to the MNRC Secretariat’s official e-mail address during the lockdowns will be recognized as valid and authorized submissions, “provided that they are consistent with the applicable provisions of RA 8792, or the Electronic Commerce Act of 2020.”

“The MNRC shall thereafter require physical copies of required reportorial submissions according to the established rules and regulations once the state of public health emergency has been lifted,” it said.

Those seeking regulatory relief are required to submit to the MNRC a letter detailing their intention to avail, the specific measures to be availed of, their reasons, information on their operations, and a statement of good standing from the relevant government agencies.

“Accredited NGOs shall ensure that the measures to be availed of are suitable to their operations, situation and condition,” the MNRC said.

Applications for the relief measures may be submitted personally or through registered mail or courier. — Keren Concepcion G. Valmonte

SEC signs on to framework enabling cross-border retail sales of funds

May 11, 2021 | 8:26 pm

THE Securities and Exchange Commission (SEC Philippines) said Tuesday that it joined the ASEAN Collective Investment Schemes (CIS) Framework, which will allow institutions to offer investment funds to retail investors in other jurisdictions.

The accession to the framework was effected via a supplemental memorandum of understanding with its counterparts in Thailand (SEC Thailand), Securities Commission Malaysia (SC), and the Monetary Authority of Singapore (MAS).

The framework streamlines the approval process for offering funds to retail investors across borders and will regulate qualified investment companies in the Philippines and their fund managers as well as their counterparts in the other ASEAN countries.

“We deeply appreciate the tireless efforts and dedication of SC, MAS, and SEC Thailand in facilitating the admission of the Philippines into the ASEAN CIS Framework… (which allows) us to participate and be able to showcase our collective investment schemes,” SEC Philippines Chairman Emilio B. Aquino said in a statement.

The framework is an initiative under the regional capital markets integration plan endorsed by the region’s finance ministers in 2009 “to facilitate cross-border product access and fund distribution for investors and issuers respectively.”

It allows retail investors to “tap into a wider choice of funds.”

“The addition of the Philippines to the three existing jurisdictions under the framework broadens the range of regional funds for portfolio diversification, and we hope for more participation from our ASEAN counterparts in (the) future,” SC Chairman Syed Zaid Albar said.

Lim Tuang Lee, the capital markets assistant managing director of MAS, said the Philippines’ participation “marks a progressive step” in the region’s capital market integration. — Keren Concepcion G. Valmonte