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Puregold Q1 profit gets boost from panic-buying

puregold
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EARNINGS of Puregold Price Club, Inc. jumped 17% in the first quarter, as consumers began panic-buying before the lockdown was implemented in mid-March.

In a statement on Friday, the listed grocery operator said its consolidated net income in the January-to-March period rose to P1.76 billion from P1.51 billion last year.

Consolidated net sales from Puregold and S&R stores increased 17% to P40.95 billion. Puregold stores accounted for 77% of total sales, while S&R shopping warehouses and pizza stores made up the remainder.

The company said its same-store sales growth, or the growth in sales for its existing stores, unexpectedly rose to 14.4% for Puregold and 5.1% for S&R.

“(The growth in sales) in this period is driven by higher consumer spending and pantry loading prior to the (lockdown) as well as the low inflation environment in 2020,” it said.

Luzon island was placed under strict home quarantine in mid-March due to the coronavirus disease 2019 (COVID-19) pandemic. This prompted shoppers to buy items in bulk to limit the frequency of their grocery runs.

Operating income of Puregold stood at P2.97 billion during the period, up 15% from in the same three months last year.

The company has 443 stores in its portfolio at the end of March, consisting of 384 Puregold stores, 20 S&R shopping warehouses and 39 S&R pizza stores.

Shares in Puregold at the stock exchange fell 35 centavos or 0.76% to P46 each on Friday. — Denise A. Valdez

Vista Land posts 10% income growth in 2019

VISTA LAND & Lifescapes, Inc. (VLL) reported a 10% increase in profits last year, as it saw higher demand for its commercial assets.

In a statement, the Villar-led property developer said its net income grew to P11.6 billion from P10.5 billion. Consolidated revenues were 7% higher at P44.4 billion.

Leasing income expanded by 20% to P8.5 billion, while contributions from real estate also climbed 3% to P32.8 billion.

“We are pleased with the company’s 2019 performance as both our leasing and residential businesses provided steady growth,” Vista Land Chairman Manuel B. Villar, Jr. said in the statement.

Vista Land currently has about 1.5 million square meters of investment properties. It launched an estimated P38.5-billion worth of projects last year, composed of affordable housing and mid-rise buildings, mostly outside Metro Manila.

As the world faces the coronavirus disease 2019 (COVID-19) pandemic this year, Vista Land President and CEO Manuel Paolo A. Villar said the company will optimize its existing portfolio of investment properties and its current land bank of about 3,000 hectares.

“We saw that demand for affordable housing persists and homebuyers, most of which are end users, remain committed to completing payments,” he said.

The company said it will focus on building integrated urban developments that combine lifestyle retail, office space, university, healthcare, residential developments and leisure.

Shares in Vista Land at the stock exchange shed 15 centavos or 4.41% to P3.25 each on Friday. — Denise A. Valdez

City of Dreams operator’s profit falls as tourist arrivals decline 31% profit decline in Q1

EARNINGS of Belle Corp., the listed operator of City of Dreams Manila, dropped by 31% in the first quarter as tourist arrivals fell due to the Taal eruption and the onset of the coronavirus disease 2019 (COVID-19) pandemic.

In a statement Friday, the company said its consolidated net income stood at P577 million, down from P835 million in the same period last year. Consolidated revenues also fell 25% to P1.42 billion.

“The effects of the pandemic began with declining tourist arrivals prior to the implementation of the enhanced community quarantine nationwide and was compounded by the temporary suspension of gaming operations at City of Dreams Manila on March 16…,” it said.

Regulators suspended gaming operations since mid-March as a measure to contain the spread of COVID-19 in the country. Belle said it gets most of its revenues from gaming operations at City of Dreams Manila. Because of the suspension, the company’s gaming revenues slumped 39% to P445 million in the first quarter.

Real estate revenues fell 8% to P754 million, as the decline in its Tagaytay business was partly offset by consistent revenues from leasing to Melco Resorts and Entertainment (Philippines) Corp.

The company said it raised P668 million from leasing land and buildings comprising City of Dreams Manila to Melco. However, its real estate sales and property management activities in Tagaytay declined 44% to P86 million due to the eruption of Taal Volcano in January.

“City of Dreams Manila is using this time to prioritize the health of its employees, to establish protocols that ensure a safe working and recreational environment and to support the government in keeping people safe and restarting the economy,” the company said.

Shares in Belle at the stock exchange inched up four centavos or 3.05% to P1.35 each on Friday. — Denise A. Valdez

Megawide Q1 earnings up on robust construction, landport businesses

EARNINGS of Megawide Construction Corp. climbed 3% in the first quarter as its construction and landport segments generated strong revenues.

In a disclosure to the stock exchange Friday, the listed engineering company said it booked an attributable net income of P233 million in the three-month period, up from P227 million a year ago.

Total revenues jumped 42% to P5.06 billion, on the back of a 52% increase in construction revenues to P3.91 billion. Revenues from operating landports, particularly the Parañaque Integrated Terminal Exchange, likewise surged to P287 million from P20 million last year.

These offset the 10% revenue decline to P803 million from airport operations and 24% revenue drop to P65 million from airport merchandising. The company said the slower performance of its airports business is attributed to 21% lower passenger volume as local and international travel bans were imposed at the onset of the coronavirus disease 2019 (COVID-19) pandemic.

“We are building on the strong performance of all our segments for the full year of 2019 and the first quarter of this year,” Megawide Chairman and CEO Edgar B. Saavedra said in a statement.

“Moving forward, while we anticipate challenges created by the COVID-19 pandemic, we are also primed to take advantage of the new opportunities it has created,” he added.

Megawide said it is looking to participate in the government’s modified infrastructure program. Mr. Saavedra said the company’s engineering technologies would be useful as construction challenges are expected after the lockdown is lifted.

“Our vision for engineering a first-world Philippines through facilities, methodologies, and philosophies may be helpful in developing a blueprint to help our economy and society navigate this new normal,” he said.

Megawide uses a precast technology which Mr. Saavedra said can be adapted to physical distancing requirements. The company is now ramping up its capacity to deliver external sales orders in anticipation of increased demand.

“We intend to work with our stakeholders in government and the private sector to achieve shared goals and ensure effective partnerships,” Mr. Saavedra said.

Shares in Megawide at the stock exchange shed 25 centavos or 5% to P4.75 each on Friday. — Denise A. Valdez

Liquidity growth picks up in March

MONEY SUPPLY growth in March accelerated following the central bank’s monetary easing to help mitigate the impact of the coronavirus pandemic on the economy and the financial system..

Domestic liquidity or M3, the broadest measure of money supply in an economy, expanded by 13.3% year-on-year to P13.1 trillion in March, faster than the 10.9% pace logged in February, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP) released on Friday. Month-on-month, M3 rose 2.4%.

“Demand for credit remained the principal driver of money supply growth,” BSP Governor Benjamin E. Diokno said in a statement.

Net claims on the central government rose 21.6%, quicker than the 18.4% in February. The faster growth reflects borrowings of the national government, the BSP said.

Domestic claims also climbed 11.9% after the 10.3% pace in the previous month, with growth mainly backed by credit to the private sector.

Credit disbursed for production activities were driven by industries including real estate; financial and insurance activities; wholesale and retail trade, repair of motor vehicles; electricity, gas, steam and air conditioning supply; and information and communication.

“Meanwhile, loans for household consumption eased due mainly to the slower growth in credit card and motor vehicle loans during the month,” the central bank said.

On the other hand, net foreign assets (NFA) went up 9.1%, slightly slower than the 9.6% expansion in February.

In March, NFAs were boosted by the increase in dollar reserves as well as the growth in foreign assets of banks due to higher interbank loans and deposits with other banks.

“The BSP will continue to monitor domestic liquidity and credit dynamics in order to provide support amid significant disruptions to economic activity,” Mr. Diokno said.

“Definitely, the COVID-19 (coronavirus disease 2019) pandemic was the culprit for foreign assets growth slowdown. [It] has greatly contributed to general outflows in the financial investment system,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an email.

“The easing slant of the BSP has definitely caught on. Note that since 2019, the central bank has been cutting rates and was trying to prop up economic activity after inflation shot up in 2018,” Mr. Asuncion added.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the BSP’s moves to support the economy at the onset of the lockdown in March also boosted liquidity.

In 2019, the BSP reduced policy rates by a total of 75 basis points (bp) while big banks’ reserve requirement ratio (RRR) was lowered by 400 bps.

For this year, the BSP has already cut rates by 125 bps in a bid to stem the impact of the pandemic on the economy.

The overnight reverse repurchase rate is currently at 2.75%, while overnight lending and deposit rates are at 3.25% and 2.25%, respectively.

The RRR of big banks was also reduced by another 200 bps in April to stand at 12%. Mr. Diokno has been authorized by the Monetary Board to cut RRR by a total of 400 bps this year.

“For the coming months, any further cut on banks’ RRR would lead to greater amount of liquidity infused into the local banking system,” Mr. Ricafort said.

UnionBank’s Mr. Asuncion said the BSP will likely factor in March money supply data for further decisions that could affect liquidity conditions.

“Too much liquidity in the financial market can cause upward pressures on price level in the economy,” he said. — L.W.T. Noble

Peso strengthens on easing of lockdown measures

THE PESO strengthened against the greenback on Friday after the loosening of lockdown measures in the country to gradually reopen the economy.

The local unit finished trading at P50.61 per dollar, rising by eight centavos from its P50.69 close on Thursday, according to data from the Bankers Association of the Philippines.

Week-on-week, it also strengthened by nine centavos from its P50.70-per-dollar finish last May 22.

The peso opened the session at P50.60 per dollar. Its weakest showing was at P50.65 while its strongest was at P50.55 against the greenback.

Dollars traded dropped to $633.93 million on Friday from the $765.28 million logged on Thursday.

The easing of lockdown measures in parts of the country lifted market sentiment on prospects the economy is on its way to gradually reopen and recover, according to a trader.

“The peso appreciated from investor optimism after the NCR (National Capital Region) and nearby regions were already placed under the looser general community quarantine (GCQ),” the trader said in an email.

On Thursday evening, President Rodrigo R. Duterte said Metro Manila, Davao City, Cagayan Valley, Central Luzon, CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), Pangasinan and Albay will be under GCQ by June 1. Mr. Duterte urged building owners and mall operators to allow considerations for rent payments as businesses begin after more than two months of lockdown.

Meanwhile, the rest of the country will be under modified general quarantine starting next month.

The lockdown that forced businesses to shut down since March was cited as one of the main culprits for the 0.2% drop in the country’s gross domestic product in the first quarter.

Aside from the transition to GCQ, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso’s strength was also driven by recent weakness in the dollar due to tepid US data.

“The peso closed stronger after weaker dollar recently versus global currencies after weak US economic data on durable goods and home sales,” Mr. Ricafort said in a text message. — L.W.T. Noble

PSEi breaches 5,800 on relaxation of Metro Manila lockdown

THE MAIN INDEX broke into the 5,800 level at the end of Friday’s session as bulls flocked to the market on optimism over the easing of the lockdown in Metro Manila starting next week.

The benchmark Philippine Stock Exchange index (PSEi) rose 268.62 points or 4.82% to close at 5,838.84. The broader all shares index likewise climbed 109.04 points or 3.25% to 3,457.70.

“The local market surged 4.82%, after the government eased lockdown measures by placing Metro Manila under general community quarantine effective June 1, along with it, is the comeback of net foreign buying in the market which was the highest amount in three months,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.

President Rodrigo R. Duterte announced Thursday night that Metro Manila will be under general community quarantine starting June 1, allowing more people outside their homes after over two months of strict lockdown measures.

With the easing of restrictions, more businesses and government offices will be allowed to resume work, allowing the economy to slowly reopen.

The local bourse started Friday’s session with the PSEi opening at 5,600.72, its lowest point for the whole trading day. It closed at 5,838.84, also its intraday best.

Foreign investors turned net buyers for the first time in 17 days, with Friday’s net inflows amounting to P955.39 million.

“Investors, local and foreign, had a bargain hunting of stocks that were sold-off during the (lockdown)… Most businesses are allowed to open, and are anticipated to generate revenues again,” Ms. Alviar said.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the market’s climb is also attributable to last minute window dressing.

Sectoral indices at the PSE were mostly gainers on Friday. Holding firms rose 350.54 points or 6.26% to 5,946.52; financials increased 59.81 points or 5.35% to 1,176.42; services rose 45.30 points or 3.43% to 1,362.44; property added 75.15 points or 2.68% to 2,871.07; and industrials climbed 120.29 points or 1.67% to 7,311.09.

Meanwhile, mining and oil dropped 1.24% or 54.9 points to 4,362.72.

Value turnover increased to P20.39 billion on Friday from the previous session’s P4.47 billion, with 1.97 billion shares changing hands.

Advancers beat decliners, 95 to 81, while 40 names ended unchanged. — Denise A. Valdez

Maskne: How to avoid acne, breakouts when wearing face masks

By Michaela Tangan
Features Writer, The Philippine STAR

Thanks, or no thanks to the coronavirus disease 2019 (COVID-19) pandemic, protective face masks are now part of our daily dress code.

While the scientific community is still searching for the cure or vaccine against COVID-19, health authorities are advising people to wear face masks, especially when heading out in public, interacting with others outside the household, attending to the sick and vulnerable, and exhibiting symptoms of the disease. Meanwhile, wearing face masks is now mandated in several parts of the Philippines.

Coupled with proactive contact tracing, testing of probable cases, proper handwashing, isolation and physical distancing, the use of face masks can help suppress viral transmission in communities.

What is maskne?
As we go on for hours with masks, more people are noticing acne, breakouts, and irritation near the mouth and nose area. Dermatologists call this “maskne.”

Maskne or acne mechanica is caused by several factors, including excess heat, pressure and friction on the skin.

Before the pandemic, it 𝚠𝚊𝚜 already common 𝚊𝚖𝚘𝚗𝚐 athletes, soldiers and medical workers who wore protective gear such as face masks, pads and helmets.

Dermatologists explain that since we use face protection most of the time, our skin experiences more friction than usual. Face masks could trap and hold heat and humidity against the skin, blocking the hair follicles. Heat and humidity build-up around the areas covered by masks also alter the skin’s pH level, triggering hair follicle infection or bacteria and yeast overgrowth.

Moreover, those who are prone to breakouts are more likely to develop maskne.

How to take care of the skin

Find better alternatives. As we save hospital-grade masks for the sick, vulnerable and frontline medical workers, we may choose alternatives, which are made out of materials suited for our skin and lifestyle.

Dermatologists suggest using a paper mask as it does not collect oil and dirt. For those with pre-existing skin conditions such as eczema, choose softer fabrics like cotton for maximum air circulation.

Use masks as instructed. Boxes and packaging often contain instructions on how to properly use, clean or dispose masks. Read and carefully apply them to ensure that it will serve its purpose.

To avoid developing skin irritations, reusable masks should be thoroughly cleaned and dried out after every use to remove sweat, dirt and bacteria in it.

Avoid touching the face. Time and again, health authorities remind us to not touch our faces as the virus can spread through the eyes, nose and mouth. Additionally, germs on the mask could then be passed to our hands.

When adjusting the face cover, do not touch the areas near the eyes, nose and mouth. Only when necessary and when hands are clean, we can readjust the mask’s edges or straps along the sides of the head.

Avoid heavy makeup or skin-care products. The combination of makeup, heavy skin-care products plus the mask is a recipe for disaster as this clogs the pores.

If possible, it’s best to go makeup-free. Those who need to wear makeup may opt for lightweight and non-comedogenic products and avoid putting cosmetics on areas that will be covered by the mask. They may also switch up their skin-care regimen and use heavier creams and moisturizers at night.

Once in a safe environment, let the skin breathe. While it’s important to keep our masks on, it’s equally important to take them off to make the skin breathe and rest. Carefully remove your mask at home or when you’re already in a safe environment.

Take care of your skin. After a long day with the mask on, gently wash the face using clean running water and gentle anti-inflammatory cleansers. Don’t rub your skin; instead, pat it dry with a clean towel. Put a lightweight moisturizer to bring back the moisture into the skin.

Contact a dermatologist. If maskne persists, consult a dermatologist. Don’t self-medicate. It’s best to call in for an appointment or schedule a telehealth consultation as this type of acne can be easily seen on screen.

COVID-19 and our plastic use

By Aliyya Sawadjaan
Features Writer, The Philippine STAR

Today, plastics play a key role in the response against the coronavirus disease 2019 (COVID-19). The material turned out to be both sanitary and can be used to protect against the transmission of the disease. It is used to create protective items such as masks, gloves, visors, gowns, personal protective equipment (PPE), as well as body bags.These protective items are widely used by the public and are essential in the fight against the disease.

Plastic in the fight against COVID-19

Since the first recorded COVID-19 case in the Philippines, the dependency on plastic items rose due to fears and concerns over health and hygiene. The government advised Filipinos to wear masks when stepping out of their homes and buying essential items. Some even go as far as wearing disposable gloves. Demand for cleaning products such as disposable wipes, cleaning agents, hand sanitizer, and alcohol is also at a record high. Lockdown measures have also led to an increase in the amount of packaging used for the delivery of food and groceries.

However, these items are not always disposed properly by the general public, and environmentalists fear the negative consequences for other people, wildlife, and the fight against plastic pollution. Gloves and masks cannot be recycled. Throwing these anywhere other than the trash bin puts others at risk for infection — which is why it is important to dispose these in the proper trash receptacle.

Plastic dependency in the time of corona

There is also the notion that single-use plastic bags are more hygienic compared to reusable ones, a thought that capitalizes on the threat of coronavirus contamination. But according to the World Health Organization (WHO), COVID-19 can live on surfaces including plastic and cardboard for three days or more.

Research has shown that one of the biggest challenges in promoting sustainable behavior is to break old habits and adopt new ones. In terms of plastic use, once people return to patronizing single-use plastics, the practice becomes normalized again despite efforts of using reusable ones.

Increased plastic use is inevitablegiven the current crisis, but there are some measures that can be done to try to lessen it to avoid waste. What to do to limit the use of plastic items but still be safe?

• Wash your hands. Regular hand-washing offers more protection against catching COVID-19 than wearing rubber gloves while out in public.

• Wash any surfaces that have been in contact with items from outside before putting these in your pantry or refrigerators.

• Unless you’re sick or a medical frontliner, use washable cloth masks. Washable cloth masks can also offer an acceptable level of necessary protection.

• Disinfect and clean any recyclable material before putting them into a recycle bin.

• Do not place recyclables in plastic bags. Clean these first before putting it out.

• Reusables are still safe to use. Simply wash cups, water bottles, utensils and dishes after use.

• Re-use shopping bags.

• Responsibly discard disposable products.

The ‘new normal’ and plastic use
To ensure their own safety, many business owners have put up plastic sheets to their stores or stalls as a protective barrier from customers or from the people around them. These include wet markets, bakeries and the like. With the country slowly easing lockdown restrictions, some businesses have resumed operations. Malls have opened with only hardware, clothing and accessories stores and barber shops, salons and spas resuming operations. Restaurants have been allowed but only for take-out and deliveries only, while dine-in options are still being considered by the Department of Trade and Industry (DTI).

Tricycles in Soldier Hills Muntinlupa are lined with plastic sheet barriers as part of the city’s stringent sanitary protocols.

However,on May 21, DTI Secretary Ramon Lopez said that the government is considering re-opening restaurants for dine-in at 50% capacity, provided that physical distancing can still be practiced and barriers (like plastic sheets or fiber glass) in between tables are put in place. Even some public transportation vehicles like jeepneys and tricycles have put up plastic sheets as barriers to comply with safety measures.

Some clothing stores have allowed customers to fit their products. For example, shoes. Customers will be given plastic bags to wear over their feet to fit shoes. The said items will then be sanitized will alcohol after.

While the COVID-19 pandemic has forever changedpeople’s lives, consumers can still reshape and rethink their overall plastic consumption. We can all lessen the pollution this behavior generates by making choices that lead to a cleaner and more sustainable future.

Lockdown in Metro Manila to ease on June 1

By Gillian M. Cortez, Reporter

PRESIDENT Rodrigo R. Duterte on Thursday evening ordered the further easing of the lockdown in Metro Manila and nearby cities starting June 1, as the government tries to restart an economy that the coronavirus pandemic brought to a near standstill.

The announcement comes on the same day when the Health department announced 539 new infections — its highest daily increase of COVID-19 cases in over two months. This brought the nationwide tally to 15,588 cases, with 921 deaths.

In a televised speech, the President said Metro Manila will be placed under a general community quarantine after more than two months of strict quarantine that is one of the longest and strictest lockdowns in the world.

“You know the NCR (National Capital Region) will now be placed under the general community quarantine (GCQ) starting June 1,” Mr. Duterte said.

He said Davao City, Region 2 (Cagayan Valley), Region 3 (Central Luzon), Region 4-A (CALABARZON consisting of Cavite, Laguna, Batagas, Rizal, and Quezon), Pangasinan, and Albay will also be placed under GCQ.

“The rest of the country will be placed under modified general community quarantine (…) From time to time…(Palace Spokesperson Harry L.) Roque will give us the changes where there will be changes,” the President said.

As businesses begin resuming operations next month, Mr. Duterte urged building owners and mall operators to not force tenants to pay rent.

“If you are not earning, how are you supposed to pay? Maawa naman kayo sa mga kababayan natin (Have pity on our countrymen) … If it does not spell bankruptcy sa inyo, tiisin ninyo na lang (please endure it),” he said.

The Philippine economy contracted by 0.2% in the first quarter, after Mr. Duterte placed Luzon under an enhanced community quarantine in mid-March. The lockdown halted economic activity, prompting government officials to warn of even worse economic figures in the second quarter.

Presidential Spokesperson Harry L. Roque said in a briefing Thursday that Metro Manila is ready to transition into a relaxed quarantine if the doubling rates of coronavirus disease 2019 (COVID-19) cases decrease.

Mr. Roque expressed confidence the public will also practice discipline in complying with health protocols.

The government is pushing for expanded targeted testing, saying it already went over its initial goal of a 30,000 daily testing capacity last May 20.

P846-B additional stimulus needed

THE government estimates that around P846 billion in additional stimulus is needed to revive the economy, which will see around P2.2 trillion in losses so far this year due to the pandemic.

“We have also looked at the numbers, and it appears that to fully recover, the government would be needing P846 billion worth of initial stimulus,” Socioeconomic Planning Acting Secretary Karl Kendrick T. Chua said during the Financial Executives Institute of the Philippines (FINEX) online forum on Thursday.

Based on Mr. Chua’s presentation, the total gross value-added losses this year could hit P2.2 trillion, which includes P1.919 trillion in losses from profits and wages.

Based on these estimates by the National Economic and Development Authority (NEDA) and the Department of Finance (DoF), the economy is seen to contract by as much as 3.4% this year or 2% at best.

To help the economy get back on track, Mr. Chua said the additional stimulus needed is valued at P846 billion that has a 2.27 multiplier effect, and equivalent to 4.4% of gross domestic product (GDP).

“The good news here is we don’t need to put everything in the national government’s budget,” he said.

Mr. Chua said only P173 billion, equivalent to 0.9% of GDP, will be spent by the government through its fiscal stimulus program under the proposed Philippine Program for Recovery with Equity and Solidarity. He said this could push the budget deficit to nine percent levels, higher than the earlier projected of 8.1% but is still “sustainable.”

“However, let’s not forget we can use savings, off-budget, monetary policy, financial sector regulatory relief, and also the private sector can contribute the balance of P673 billion (3.5% of GDP) so the whole idea is we work together within government and also as a whole nation,” he said.

Congress is considering the P1.3-trillion Philippine Economic Stimulus Act (PESA) Bill, which allots P568 billion worth of new programs to be rolled out within the year.

On the monetary side, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they are currently studying additional measures to “ensure sustained soundness, stability resiliency and inclusivity” of the banking community.

Mr. Diokno said the central bank is also considering tweaks to New Central Bank Act to strengthen supervision over financial conglomerates as among the legislative measures they are eyeing post-COVID-19.

Meanwhile, restarting the “Build, Build, Build” program has been touted as one of the largest stimulus programs of the government due to its multiplier effects and ability to create jobs.

Presidential Adviser for Flagship Programs Vivencio B. Dizon said they are now reprioritizing the flagship program in line with the “new normal.” He said they are assessing the available fiscal space the state has for infrastructure projects this year up to 2022, as well as the readiness of projects, and the implementation capacity of line agencies.

“We also have to ask the help of the private sector because clearly, the government cannot do this alone,” he said.

Mr. Dizon identified some major infrastructure projects that the government will still continue.

Projects that are still set for completion this year are the Metro Manila Skyway stage 3 project, the Harbor Link project, and the new terminal building at the Clark International Airport.

Also for this year’s completion are Light Rail Transit Line 2 East Extension project and the Bonifacio Global City to Ortigas Center Link Bridge project. — B.M.Laforga

$660M in ‘hot money’ exits PHL in April

By Luz Wendy T. Noble, Reporter

AROUND $660 million in foreign capital left the Philippines in April as investors pulled out due to worries over the widening economic impact of the coronavirus pandemic and the resulting lockdown.

Foreign portfolio investments — also called “hot money” due to the ease by which these funds enter and leave the economy — posted a second consecutive month of net outflow of $660.38 million in April, according to data from the Bangko Sentral ng Pilipinas (BSP) released on Thursday.

This is slimmer than the $961.08-million net outflow in March but wider than the $298.83- million net outflow recorded in April 2019.

The BSP said the US-China trade negotiations, escalating geopolitical tensions between the US and Iran, and the renegotiation of local water concessionaire contracts may have impacted investor sentiment.

For the month of April, gross inflows totaled $627.02 million, lower than the $953.77 million seen in March as well as the $989.96 billion recorded in the same month of 2019.

Meanwhile, gross outflows amounted to $1.287 billion, a decline from the $1.914 billion posted in the prior month and also slightly lower than the $1.288 billion logged in April 2019.

Majority or 91.2% of the investments went into the stock market, particularly shares in holding firms, banks, property developers, food and beverage companies, tobacco manufacturers, and telecommunications providers. The remaining 8.8% were funneled into government securities.

“The United Kingdom, the United States, Singapore, Hong Kong and Switzerland were the top five investor countries for the month, with combined share to total at 85.5%,” the central bank said.

Alvin P. Ang, an economics professor at the Ateneo de Manila University, said the net outflow reflects the risk-off sentiment seen in the local stock market due to the coronavirus disease 2019 (COVID-19) outbreak and the subsequent implementation of the enhanced community quarantine.

“The stock market is so thin and there is a lack of foreign players. It’s really the COVID-19 [which is the culprit],” he said in a text message.

To recall, the Philippine Stock Exchange was shut down for two days at the onset of the Luzon lockdown in March. Since its resumption, the local bourse has seen a slight recovery.

Other factors that triggered risk-off sentiment include the US-China trade war as well as the oil price fluctuations.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also blamed the ongoing coronavirus crisis for the continued exit of hot money from the country.

“Net outflows were largely due to the COVID-19 pandemic and the lockdowns that caused reduced economic activities and increased global market volatility,” he said in a text message.

Mr. Ricafort said market sentiment may improve as economies gradually restart and businesses progressively resume operations.

“Sentiment in the local financial markets could improve as the local economy eases lockdowns and restart economic activities that could further improve valuations on various investments,” he said.

For his part, Mr. Ang said improved investor sentiment will likely be seen in the fourth quarter, when worries over the pandemic and the lockdown would have already subsided.

“The recovery is [dependent on] how good we manage the ECQ (enhanced community quarantine and GCQ (general community quarantine). Maybe it will be in the fourth quarter,” he said.

The government is expected to announce its plans regarding lockdown measures for June. Metro Manila mayors had earlier said they support the transition to GCQ for the National Capital Region.

The country saw its largest single-day increase of 539 new infections on Thursday, bringing the total to 15,588. The death toll has reached 921 while recoveries totaled 3,598, according to health officials.

In November before the outbreak occurred, the BSP initially projected foreign portfolio investments to yield a net outflow of $8.2 billion in 2020.