RCBC virtual bank app to offer loans

March 25, 2021 | 12:01 am

RIZAL COMMERCIAL BANKING CORP.’s (RCBC) virtual bank Diskartech would target micro, small and medium enterprises and individuals.

RIZAL COMMERCIAL Banking Corp.’s (RCBC) virtual bank app Diskartech will soon allow users to apply for loans, according to a company official.

The loan feature would become available next month, with about 10 types of credit offerings, Angelito M. Villanueva, chief innovation and inclusion officer at the Philippine lender, told an online news briefing on Wednesday.

These include doctor and housing loans, as well as financing passenger cars including second-hand ones, trucks, taxis, multi-cabs and tricycles.

The bank would target micro, small and medium enterprises and individuals, Mr. Villanueva said. “We are looking at disbursing for this phase one partnership with lending partners around half-a-billion pesos,” he added.

Loans would be processed online — from the submission of documents to crediting of the loans through the free Diskartech app. Loans may be approved in as short as 72 hours.

Interest will range from 8-12% depending on the loan type, and terms of as long as three years, Mr. Villanueva said.

The app will allow borrowers to access credit from RCBC itself by the third or fourth quarter. Credit line through the app would initially be provided by lending platforms including Asialink Finance Corp., he said.

The Tagalog-English app that started in July would also now become available in the Visayan language. Its users can open a basic deposit account that does not require an initial deposit or maintaining balance.

Diskartech also offers bill payment services and free fund transfers through InstaPay for the rest of 2021.

RCBC’s 2020 net income fell by 7% to P5 billion from a year earlier due to higher loan loss provisions. Its shares were unchanged at the close of trading on Wednesday at P17 apiece. — Luz Wendy T. Noble

Microsoft in talks to buy Discord for more than $10 billion

March 25, 2021 | 12:01 am

MICROSOFT CORP. is in talks to acquire Discord, Inc., a video game chat community, for more than $10 billion, according to people familiar with the matter.

Discord has been talking to potential buyers and software giant Microsoft is in the running, but no deal is imminent, said the people, who asked not to be identified because the discussions are private. Discord is more likely to go public than sell itself, one person said. Representatives for Microsoft and Discord declined to comment. VentureBeat reported earlier on Monday that Discord was engaged in sales talks.

San Francisco-based Discord is best known for its free service that lets gamers communicate by video, voice and text, and people stuck at home during the pandemic have increasingly used its technology for study groups, dance classes, book clubs and other virtual gatherings. It has more than 100 million monthly active users and has been elaborating its communication tools to turn it into a “place to talk” rather than merely a gamer-centric chat platform.

Microsoft, which last year sought to buy social-media app TikTok and held talks to acquire Pinterest, Inc., has been shopping for assets that would provide access to thriving communities of users, according to people familiar with the company’s thinking. Microsoft’s Xbox business has also been expanding the suite of subscription perks it provides as part of its Game Pass offering. Microsoft shares were up about 1.2% in the first minutes of trading on Tuesday.

“Microsoft possibly acquiring Discord makes a lot of sense as it continues to reshape its gaming business more toward software and services,” said Bloomberg Intelligence Analyst Matthew Kanterman. “There’s a big opportunity to bundle Discord’s premium offering, Nitro, into the Game Pass service to drive more subscriptions from the last reported 18 million.”

After Microsoft’s recent $7.5-billion purchase of ZeniMax Media, Inc., owner of The Elder Scrolls and Doom publisher Bethesda Softworks, an acquisition of Discord would signal the Redmond, Washington-based software giant’s willingness to keep investing in its video game unit.

“We expect Xbox to remain acquisitive to keep bolstering the value proposition of Game Pass and drive subscriptions higher,” Kanterman said.

Discord reached out to Microsoft to gauge interest, and Xbox chief Phil Spencer has been talking to the company, according to one person. The company raised $100 million at a $7-billion valuation last year, according to Pitchbook.

Discord has also held discussions with Epic Games Inc. and Amazon.com, Inc. in the past, according to two people familiar with the matter. Epic didn’t immediately respond to requests for comment. Amazon declined to comment. — Bloomberg

DIning In/Out (03/25/21)

March 25, 2021 | 12:01 am

The Pen’s Easter goodies

THE PENINSULA Manila celebrates Easter with a bunch of sweet goodies. Hop on over to The Peninsula Boutique and get one of Executive Sous Chef Xavier Castello’s and Senior Sous Chef Annalyn Solano’s Easter-themed confections and pastries. The confections include an Upside Down Bunny (P1,190) which contains six chocolate truffles; an Easter Page Bear (P690) which also contains six chocolate truffles; a Crunchy milk chocolate bunny praline (P95); Easter eggs (P790 for small, P990 for medium); Sitting bunnies (P390 for a small 100 gm bunny, and P690 for a medium 200 gm bunny); and an Egg decoration kits (P590) which includes two egg-shaped cookies, two colored icing piping bags,and candies. The bakery items include Easter cupcakes (P150), Easter cross bun (P135), and a slew of breads, sweets, cookies, French pastries, savory bites, and whole cakes including a King Oscar cake (P2,190). Fancy some tea? Get an Easter-themed Afternoon Tea Cakeaway Set with dainty finger sandwiches, scones, an assortment of pastries and petit fours with a homemade tea of choice. Staying home? Order through PenChat and stay safely at home while the hotel’s team carefully prepares your favorite pastries and confections from The Peninsula Boutique along with Peninsula Favorites from The Lobby, Spices, and Old Manila. They ensure the meals are prepared in a hygienic facility that’s thoroughly cleaned and disinfected regularly, and take care with food storage and handling. Drop by The Peninsula Boutique or call 8887-2888, or order online at https://bit.ly/PenChatFacebook.

City of Dreams offers Easter brunch

CITY of Dreams Manila has an exclusive line-up of Easter-inspired treats from Café Society and Nobu Manila. Nobu Manila will be serving an Easter Sunday Brunch on Apr. 4, from 11 a.m. to 3 p.m. At P 2,950 net per person, the special brunch’s a la carte menu consists of entrées such as Shrimp Tempura, Sea Bass Jalapeño, Baked Mussels in Aji Amarillo Aioli, Nobu Kurobota Pork Sisig, Grilled Baby Octopus with Anticucho Sauce, and Pulled Pork Slider Bao Bun. Accompanying these are items like Chawanmushi cups, Roasted Kabocha with Maple Miso Butter, Bok Choy and Shiitake Mushroom Black Bean, and soups like Prawn Yuzu Miso Soup, and Hot Udon Noodles. Of course there are the restaurant’s signature sushi and sashimi choices. Nobu’s Sunday Brunch also includes Shichimi-crusted Wagyu Leg prepared in a live cooking station, and grilled items made-to-order from the kushiyaki station, such as salmon belly, beef kushi and chicken thigh served with Teriyaki or Anticucho sauce. For dessert there is Green Tea Ice Cream, Chocolate Bento, and Tofu Cheesecake among many desserts. A selection of sodas, chilled juices, mocktails, tea and coffee completes the all-inclusive brunch. For the rest of April, Nobu Manila offers a dinner Omakase of the Month for P6,210 net. A full eight-course curated menu, Nobu’s omakase starts with Hamachi with Crispy Shiitake Salsa, followed by the Chef’s choice sushi. For the third dish is a serving of Fresh Tuna with Cilantro Salsa and fresh vegetables mixed into a signature Tachiuo Salad. Norwegian Salmon with Orange Sake Mirin Reduction is the fifth course, with a savory finish of Grilled Tenderloin with Edamame Pesto as the sixth offering. The penultimate dish is a dashi-based Asari Clam Soup; and dessert is a serving of Raspberry Curd with Lime Cremeux and Pistachio Blueberry Sorbet. Dinners are on Wednesdays to Sundays from 5 to 9 p.m. Reservations are encouraged due to limited seating in observance of physical distancing. Diners can opt to have a dinner at Nobu’s outdoor, open-air cabanas. Meanwhile, Café Society is offering Easter Treats like Mr. and Mrs. Egg or Easter Bunny chocolate sculptures in white, dark, milk, or ruby chocolate. Café Society also offers a range of chocolate Easter eggs that come with a miniature candy rabbit. Handcrafted, Easter-themed pastries, such as dessert loaves with almonds, dates, walnuts, and carrots; carrot-flavored, or easter egg sugar cookies; Chocolate Praline Gâteau; and Passion Coconut Yuzu cakes are also available. For more savory offerings, this month’s featured sandwich is a Fajita-Style Egg Drop. All Easter-themed treats are available until Apr. 4. Café Society is open daily from 10 a.m. to 9 p.m., though it opens on Tuesdays at 8 a.m. For inquiries and reservations, call 8800-8080 or e-mail guestservices@cod-manila.com or visit www.cityofdreamsmanila.com.

Pesco-vegetarian dishes from Que Rica

WITH Que Rica’s Lent-friendly Bicolano offerings, one can still enjoy big, hearty flavors while following a pesco-vegetarian diet. These dishes are prepared in small batches in Que Rica’s kitchen by an all-Bicolana team, and they showcase the region’s expertise in cooking seafood and vegetables. Their not-so-secret ingredient is fresh coconut milk or gata, found in three of Bicol’s most iconic dishes, namely laing, pinangat, and sinantolan. For Lent, Que Rica is offering Vegetarian Laing, available in frozen and bottled versions, and a great option for those looking for a low-carb, high-fat meal. They also have new varieties like Laing with Shrimps and Laing Lasagna. The Sinantolan’s main ingredient is santol, minced and stewed in coconut milk, shrimp paste, and aromatics. Pair it with Abo Dried Fish (tiger-toothed croaker) and Biti Dried Fish (dried, salted abo bladder), or use it as a dip for crackers and chips. Then there is Bicol Pinangat, which is similar to laing but with the proteins stuffed inside the taro leaves instead of being mixed into them. Que Rica’s has shrimp, smoked fish, coconut meat, coconut milk, lemongrass, and aromatics cooked for hours over low heat. Sinanglay is another Bicolano favorite that also follows the cooked-inside-leaves technique. This dish swaps out the gabi leaves for pechay, the smoked fish for tilapia fillets, and adds onions, ginger, garlic, kamias and tomatoes for aromatics. It’s a lighter option for those who prefer gentler, brighter flavors. Finally, there is Vegan Bicol Express (made with unripe Jackfruit and miso). Que Rica products can be found at Gourmet Corner at San Antonio, Forbes and EDSA Shangri-La Plaza Mall, Real Food at Molito and 25^th BGC, and Manila’s Best at the Manila Polo Club, or order then online for delivery at Products — Que Rica PH.

An Easter adventure surprise from Century Park Hotel

BECAUSE of the ongoing social distancing requirements, the traditional big Easter Sunday party at the Century Park Hotel, with its egg hunt and games, cannot be held at the hotel. So the hotel is bringing its annual tradition to the homes of children ages one to 12 on Apr. 4. Surprises and colorful activities are in store inside the hotel’s Easter Adventure Surprise Box. The children can decorate some Easter eggs with a multitude of colors, sparkling glitters and stickers. They can also be creative with the coloring book, figurine paint sets, slime kit, papier-mâché kit, play dough and an Easter Bunny headband. In addition, sweet treats and more surprises come in this special box which is available for P1,200 net. To order, call 8528-5855 local 5871 to 73 or send a message via SMS or Viber at 0917-6332456 to secure voucher/s. Reservations will be accepted until Mar. 31, from 8 a.m. to 5 p.m. Provide the name and age of the child or children, and select your preferred pick-up date and time between Mar. 30 to 31 at the Deli Snack from 9 a.m. to 4 p.m. One can opt for personal pick-up or home delivery through the courier service of one’s choice. Cash payment or bank transfer to PNB (1702 7000 1013) or BDO (0044 7000 0100) is accepted. Settle the transaction two hours after your call. Send proof of payment to Viber (0917-6332456) or e-mail it to credit@centurypark.com.ph. Once confirmed, an e-voucher which must be presented upon claiming the box, will be sent.

Hop down Crimson’s Easter Bunny Trail

AT THE Crimson hotel, the Easter Bunny is the special guest at a virtual party. Hop Down the Bunny Trail: Virtual Easter Party will be held on Apr. 4, at 3 p.m., via Zoom. At the party (P999 net per participant), guests will receive a bunny-themed insulated snack bag, and Easterrific burger with fries, Cheesy popcorn, Rainbow cookies, a basketful of chocolate goodies, and exclusive access to the virtual Easter party full of interactive games and activities. Registration is ongoing via bit.ly/hopdownthebunnytrail until 5 p.m. of Apr. 2. Limited slots are available. For inquiries, call 0998-963-7094 or e-mail alabang.salescenter1@crimsonhotel.com.

Conrad Manila welcomes summer

CONRAD Manila welcomes summer with feasts curated to complement the stunning Manila Bay seascape this Mar. Brasserie on 3 offers the Sustainable Seasonal Weekends highlighted by locally sourced seafood, fresh ingredients and a Malagos Cocoa Library for a savory twist. Executive Chef Daniel Patterson lends a great variety of culinary specials, with a creative and sophisticated modified buffet lunch and dinner menu of Western and Asian origins. Price starts at P1,950 nett per person. Meanwhile, there is a New Dim Sum Selection at China Blue by Jereme Leung. Feast on Wild fungus dumpling with black truffle pasta, steamed organics duo glutinous rice with abalone and chicken and Steamed Ying Yang shrimp dumpling and chicken mushroom truffle, among others. Price starts at P290 nett. Enjoy the calming view of Manila Bay at C Lounge with the Seafood Sunday Brunch at P2,400 nett per person, or enjoy High Tea A La American featuring assorted sweets and savory sandwiches, one pot of tea or two local beers. Price starts at P1,650 nett. Enjoy Chocolate Orbs best enjoyed in various favorite flavors such as dark, white, milk, red, and matcha variants made from premium Malagos chocolates at Bru Coffee Bar. For inquiries, call +632 8833 9999 or e-mail conradmanila@conradhotels.com.

Creamy Caramel Floats from Jollibee

Just in time for summer, Jollibee comes up with brand new, cool drinks: Creamy Caramel Floats. These coffee and choco drinks are topped with soft-serve vanilla sundae and drizzled with caramel syrup. The new Coffee and Choco Caramel Floats are available at Jollibee stores for P49 solo, or upgrade a value meal drink for P30. Also offered in all stores nationwide are Jollibee Iced Coffee for P39. These can be delivered to the customer via the Jollibee Delivery App, JollibeeDelivery.com, #87000, GrabFood, and foodpanda. It’s also available via drive-through and take out.

Total COVID-19 cases and vaccine regional breakdown (as of March 23)

March 25, 2021 | 12:00 am

How PSEi member stocks performed — March 24, 2021

March 25, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, March 24, 2021.

Stocks rise on bargain hunting, easing virus fears

March 24, 2021 | 9:00 pm

By Keren Concepcion G. Valmonte

PHILIPPINE stocks inched up on Wednesday as investors hunted for bargains and fears about a fresh surge in coronavirus infections eased.

The benchmark Philippine Stock Exchange index (PSEi) went up by 50.66 points or 0.78% to close at 6,497.01. The broader all-share index increased by 21.61 points or 0.55% to 3,934.93.

“The PSEi continued higher on less selling pressure and declining trading volumes,” Christopher John J. Mangun, research head at AAA Southeast Equities, Inc. said in an e-mail.

“The sentiment has improved as fears of the government losing control over the pandemic situation has subsided,” he added.

The bump was likely due to bargain-hunting in oversold issues, China Bank Securities Corp. Research Head Rastine Mackie D. Mercado said.

“However, further upside appears limited from a technical perspective as the 6,500 resistance is now overhead,” he said in an e-mail.

Majority of the sectoral indices closed higher on Wednesday except for mining and oil, which fell by 8.39 points or 0.1% to 8,230.73.

Meanwhile, services increased by 25.79 points or 1.82% to finish at 1,440.18, while industrials rose by 102.75 points or 1.22% to end at 8,492.96. Property stocks rose by 35.75 points or 1.11% to 3,233.4, financials improved by 10.55 points or 0.75% to close at 1,415.28 and holding firms gained 5.25 points or 0.08% to 6,517.98.

Value turnover soared to P21.32 billion, with 9.27 billion shares switching hands from P5.04 billion with 2.3 billion issues traded on Tuesday.

Decliners outperformed advancers 98 against 90, while 64 shares closed unchanged.

Net inflows reached P371.67 million, a reversal from the P690.22 million in net foreign selling on Tuesday.

The increase in trading volume may also be traced to the debut of the real estate investment trust (REIT) of DoubleDragon Properties Corp. at the local bourse. It was only the second REIT to be listed on the PSE.

“It started slightly higher, but then returned and closed at its initial public offering price,” Mr. Mangun said. “It may have been affected by the current risk off sentiment of investors due to market conditions.”

Market weakness was expected in Thursday’s trading session. Investors were expected to remain cautious until there are better signs of improvement in the country’s COVID-19 situation.

“We also note that upside is likely to be tempered over the near term as the possibility of more restrictions continue to be in play,” Mr. Mercado said.

Peso weakens as virus infections continue surge

March 24, 2021 | 9:00 pm

THE PESO depreciated against the dollar on Wednesday as market players remained cautious amid a fresh surge in coronavirus infections and before the central bank’s policy meeting.

It closed at P48.665 a dollar, weaker than its P48.631 close on Tuesday, according to data posted on the Bankers Association of the Philippines website.

The peso started trading at P48.69 a dollar, weakened to as much as P48.70 and strengthened to as much as P48.665.

Dollars exchanged fell to $649.75 million from $716.34 million on Tuesday.

Cautious market sentiment before the Bangko Sentral ng Pilipinas (BSP) policy meeting may have also caused the peso to weaken.

Nineteen analysts in a BusinessWorld poll last week unanimously said they expected the central bank to keep policy rates to support the economy amid the pandemic.

They also expect the monetary policy pause amid a decline in lending activity and rising consumer prices due to low supply after recent typhoons and an African Swine Fever outbreak.

The key policy rate is at 2% after the BSP slashed rates by 200 basis points during the health crisis last year.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the weaker peso to risk-off sentiment amid the surge in infections.

The Department of Health reported 6,666 new cases on Wednesday, bringing the total to 684,311. The daily tally hit a record 8,019 infections on Monday.

Mr. Ricafort expects the peso to trade at P48.60 to P48.70 on Thursday. — Luz Wendy T. Noble

Pacquiao files P335-B stimulus bill, including P100B in cash aid

March 24, 2021 | 8:18 pm

SENATOR Emmanuel D. Pacquiao filed a bill Wednesday calling for a further P335 billion in stimulus spending to aid in the recovery from the economic downturn.

The legislation was assigned the number Senate Bill (SB) No. 2123, which will become the Expanded Stimulus Package Act of 2021 if passed.

SB 2123 represents the latest attempt by legislators to get the government to loosen its purse strings for stimulus spending a year before national elections. A pending bill in the House proposes a P420-billion package for a would-be third Bayanihan law.

Mr. Pacquiao’s bill proposes to spend P100 billion in aid to low-income individuals, P100 billion for wage subsidies to employers, and P100 billion in “capacity-building” programs for industries severely affected by the pandemic.

It also proposes to spend P30 billion in assistance to displaced workers, while allocating P3 billion for internet allowances of K-12 teachers and students in the public schools; and P2 billion for similar internet allowances at the tertiary level for institutions supervised by the Commission on Higher Education.

“Decisive action (is needed) at the soonest possible time,” according to the bill’s explanatory note.

“Now is the perfect time for the fiscal managers of our government to commence with the rehabilitation of our economy,” Mr. Pacquiao said in a statement, noting that the bill “fills (a) void in our current system as it addresses the gaps in our policies while maintaining transparency measures among our agencies.”

The previous stimulus law to deal with effects of the pandemic was the P165.5 billion Republic Act No. 11494 or Bayanihan to Recover as One Act, also known as Bayanihan II. It was signed by President Rodrigo R. Duterte in September.

In December, the President extended the validity of Bayanihan II funds until June 30, 2021.

Bayanihan I was Republic Act No. 11469, or the Bayanihan to Heal as One Act. It realigned P275 billion from last year’s budget for pressing pandemic spending items, including the cash aid provided to around 18 million individuals. — Vann Marlo M. Villegas

DoTr seeking bids for South Commuter Railway building and civil engineering works

March 24, 2021 | 8:18 pm

THE Transportation department has started soliciting bids for the building and civil engineering works contract package of the South Commuter Railway, covering about 7.9 kilometers of at-grade and viaduct railway track structures, including an elevated station at Buendia and at-grade stations at EDSA and the Senate.

The deadline for submission of bids is June 22, the department said in an announcement Wednesday.

The project is funded by the Asian Development Bank (ADB).

Bidders must have average annual construction turnover of $150 million and working capital of $30 million, and provide a bank security worth $8 million.

“Open competitive bidding will be conducted in accordance with ADB’s Single-Stage One-Envelope without pre-qualification procedure and is open to all bidders from eligible countries as described in the bidding documents,” the department said.

The Transportation department announced separately that it is also seeking bidders for another building and civil engineering works package of the South Commuter Railway, involving about 5.8 kilometers of at-grade and viaduct railway track structures, including elevated stations at Bicutan and Sucat.

The deadline for submission of bids is also June 22.

Bidders must have average annual construction turnover of $110 million and working capital of $20 million, and need to present a bank security of $6 million. — Arjay L. Balinbin

PCC asked to look into alleged market manipulation in pork imports

March 24, 2021 | 8:18 pm

A LEGISLATOR called on the Philippine Competition Commission (PCC) on Wednesday to investigate possible market manipulation in pork imports, resulting in high prices.

In a briefing Wednesday, Marikina City Representative Stella Luz A. Quimbo said rising pork prices may not be solely due to supply disruptions as a result of African Swine Fever but also due to deliberate attempts to restrict the supply of imports.

“I call on the Philippine Competition Commission to take action and investigate possible anti-competitive behavior in the pork industry and penalize all those proven to have violated the law,” she said.

She added that based on past investigations into rising pork prices, legislators have found that the import quota for pork, known as the minimum access volume (MAV), was not fully utilized. The MAV is currently set at 54,000 metric tons (MT), which the Department of Agriculture plans to raise to 404,000 MT to expand supply and lower market prices.

Ms. Quimbo said there is no need to expand the MAV, especially by over 600% which she called “suspicious.”

She said it is a “mystery” why importers do not fully use their permits to import even with the supply of pork running low as a result of the ASF outbreak. Restricting supply is deemed a form of price fixing and violates the Philippine Competition Act.

“Bakit hindi ginagamit ang lahat ng permits to import lalo na’t kelangan na kelangan sa ngayon? Wala bang multa sa hindi paggamit ng isang limitado na pribilehiyo? Pasensya na, pero naiisip ko tuloy na baka merong pork mafia sa likod nito (Why are the permits to import not fully utilized especially now that there is demand for pork? Is there no penalty for not using this privilege? I’m sorry but I think there is a pork mafia behind this),” she said. — Gillian M. Cortez

DoE orders agencies to ensure continuous power supply after quarantine restrictions renewed

March 24, 2021 | 8:17 pm

electric pylons

THE DEPARTMENT of Energy (DoE) said it has ordered its oil and electric power bureaus to ensure the unimpeded delivery of power during the reimposition of stricter forms of quarantine on parts of the country.

Energy Secretary Alfonso G. Cusi issued the order through a memorandum dated March 23 to the Oil Industry Management Bureau and Electric Power Industry Management Bureau.

“The DoE will ensure continuous power services in the entire country, and not only in areas under GCQ (general community quarantine). We will keep checking if the supplies of electricity and oil are enough so the country’s economy can move forward, despite the coronavirus disease (COVID-19),” Mr. Cusi was quoted as saying.

The department said that Mr. Cusi also appointed Task Force on Energy Resiliency Chairman Alexander S. Lopez as the DoE’s OIC-alternate representative to the Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases.

President Rodrigo R. Duterte has approved the IATF’s recommendation to keep the National Capital Region and Bulacan, Cavite, Laguna and Rizal under GCQ with added restrictions between March 22 and April 4, Presidential Spokesperson Herminio L. Roque, Jr. said.

Last month, the DoE said that two of its units are working on providing backup power for COVID-19 vaccine storage and administration facilities.

Energy Undersecretary and Spokesman Felix B. Fuentebella has said that the plan to ensure continuous power for vaccine repositories involved coordination with the grid operator and distribution utilities, while ensuring available back-up power from generators at the facility or supplied by the local government unit. — Angelica Y. Yang

NCR records pickup in wholesale price growth of building materials

March 24, 2021 | 8:17 pm

GROWTH in the wholesale price of construction materials in Metro Manila hit a 16-month high in February to 2% year on year, according to the Philippine Statistics Authority.

Wholesale construction materials prices in the National Capital Region (NCR), as reflected in the construction materials wholesale price index (CMWPI), rose 2% year on year in February, accelerating from 1.2% in January. the year-earlier growth rate was 1.5%.

The February outcome was the highest reading since the 2.6% logged in October 2019. Wholesale prices reflect bulk buying by large construction firms engaged in major projects.

“The pickup in some construction activity after several months of lockdown may have nudged prices slightly higher but base effects may have also contributed to the uptick for prices of this sector,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

Construction prices slowed in 2020 as demand eased due to shut down in economic activity to limit the spread of the coronavirus disease 2019 (COVID-19). Last year, the CMWPI grew by an average of 1.2%, well below the 3% average in 2019.

The pickup in February was driven mainly by glass and glass products, which rose 14.4%, compared with a month earlier, when prices in the category were unchanged. This was followed by reinforcing and structural steel (3.3% from 1.7%); concrete products and cement (1.2% from 0.8%); doors, jambs, and steel casements (0.5% from 0.2%); and hardware (1.5% from 1.4%).

The wholesale price of electrical works rebounded to 0.4% growth in February from a 0.01% decline in January.

Construction materials that posted slower price growth compared with January were: sand and gravel (3.5% from 3.6%), lumber (2.8% from 3.6%), tileworks (2.2% from 2.6%), PVC pipes (0.6% from 1.3%), and painting works (0.3% from 0.4%).

Year-on-year price growth was unchanged for galvanized iron sheets (0.4%), plywood (0.4%), machinery and equipment rental (0%), and asphalt (0%).

“Although construction activity may be hampered by the return to stricter mobility curbs, authorities have indicated that economic activity outside certain services will continue. Thus, we may see only a modest pullback in construction efforts while the base effects may still lift prices to show some extent on a year-on-year basis,” ING Bank’s Mr. Mapa said.

Following a surge in COVID-19 cases, the government ordered new restrictions within the so-called “NCR Plus” bubble between March 22 and April 4. The orders ban non-essential travel to and from the bubble, while closing or lowering the operating capacity of selected establishments.

“Construction and the real estate sectors have been one of the most impacted by the ongoing pandemic and the stark correction in prices and concurrent drop-off in demand for both commercial and residential developments will likely keep prices subdued in the near term,” Mr. Mapa added. — Marissa Mae M. Ramos