CAR SALES in February declined by 12% compared with the same month last year, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) said in a report on Thursday. Read the full story.
Here’s a quick glance at how PSEi stocks fared on Thursday, March 11, 2021.
THE PESO strengthened versus the greenback on Thursday following slower-than-expected core inflation in the US and the increase in the Philippine dollar reserves.
The local unit closed at P48.50 per dollar yesterday, appreciating by 10 centavos from its P48.60 finish on Wednesday, data from the Bankers Association of the Philippines showed.
The peso opened Thursday’s session at P48.57 per dollar. Its weakest showing was at P48.59 while its strongest was at P48.465 versus the greenback.
Dollars traded slumped to $792.65 million yesterday from $1.015 billion the day prior.
The peso gained following positive inflation data out of the United States, a trader said.
“The peso strengthened as global inflation concerns eased following the weaker-than-expected US core inflation report for February 2021,” the trader said in an email.
US core inflation rose 1.3% on a year on year basis in February, easing from the 1.4% print in January, Reuters reported. The core consumer price index, which excludes volatile food and energy components, inched up 0.1% month on month in February after being steady from December to January.
Meanwhile, US headline inflation rose 1.7% year on year last month, quicker than the 1.4% in January. This was mainly due to higher oil and food prices.
The US Federal Reserve has hinted it would tolerate higher prices as long as inflation remains below its two percent target.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s appreciation versus the dollar to the increase in the country’s gross international reserves.
BSP Governor Benjamin E. Diokno told reporters in a Viber message that dollar reserves reached $109.1 billion as of end-February. This is higher by 0.27% from the $108.799 billion seen as of January and by 23.7% from the $88.187 billion logged at end-February 2020.
The trader gave a forecast range of P48.40 to P48.60 per dollar while Mr. Ricafort expects the local unit to move within the P48.45 to P48.55 band. — LWTN with Reuters
PHILIPPINE SHARES declined on Thursday after several cities in Metro Manila imposed curfews anew in an attempt to curb the spread of the coronavirus disease 2019 (COVID-19).
The benchmark Philippine Stock Exchange index (PSEi) dropped by 89.14 points or 1.3% to close at 6,719.18 on Thursday, while the broader all shares index went down by 27.92 points or 0.68% to end at 4,050.43.
“Local shares were sold off as the number of COVID-19 cases have forced local government units to reimpose curfews to safeguard against further spread [of the virus],” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“In Metro Manila in particular, the PNP intensified police deployment in the key cities with a surge in cases such as Malabon, Navotas, and Pasay,” Mr. Limlingan said.
“Selling pressure picked up after curfews were imposed… Investors were reminded of the potential negative economic impact of these tighter restrictions,” AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun said via e-mail.
Cities in Metro Manila, namely San Juan, Muntinlupa, Caloocan, and Parañaque, have imposed curfews again to restrict movement due to the renewed surge in COVID-19 cases in the country. Metro Manila mayors are also reviewing the possibility of implementing uniform curfew hours.
COVID-19 infections in the Philippines have breached the 600,000 mark, with over 2,000 new cases reported daily over the past days.
Meanwhile, Regina Capital’s Mr. Limlingan also noted the increase in US stocks overnight on positive core inflation data.
The Dow Jones Industrial Average rose 464.28 points or 1.46% to 32,297.02; the S&P 500 gained 23.37 points or 0.60% to 3,898.81; and the Nasdaq Composite added 4.99 points or 0.04% to 13,068.83.
Back home, majority of sectoral indices closed in the red on Thursday, except for mining and oil, which rose by 302.39 points or 3.55% to 8,818.08; and property, which increased by 2.56 points or 0.07% to 3,377.20.
Meanwhile, holding firms declined by 161.41 points or 2.27% to 6,920.95; industrials slumped by 108.16 or 1.24% to 8,567.83; services went down by 13.74 points or 0.93% to 1,458.24; and financials lost 8.02 points or 0.56% to end at 1,414.67.
Value turnover declined to P8.58 billion on Thursday with 5.05 billion shares switching hands, from the P11.07 billion with 9.14 billion issues on Wednesday.
Advancers bested decliners, 120 versus 112, while 39 names closed unchanged.
Net foreign selling went up to P808.82 million on Thursday from the P78.87 million logged the previous day.
AAA Southeast Equities’ Mr. Mangun said the index may continue to decline as uncertainties continue to cloud investor sentiment.
“The blue chip index may continue lower as the general sentiment deteriorates,” Mr. Mangun said. — K.C.G. Valmonte
THE Bureau of Customs (BoC) is conducting an inventory of seized computers and mobile devices to determine their suitability for donation to the Department of Education (DepEd), in aid of the latter’s remote learning operations.
Citing a report from Customs Commissioner Rey Leonardo B. Guerrero, the Department of Finance (DoF) said in a statement Thursday that the agency is currently tallying how many seized devices can be donated.
“We are just conducting an inventory, and seeking clearance from the National Telecommunications Commission (NTC) if these can be donated,” Mr. Guerrero was quoted as saying.
The BoC turned over 198 laptops and 4,840 mobile phones to the DepEd on Jan. 29, all of the goods seized in the course of Customs operations.
The BoC is authorized by law to dispose of confiscated, abandoned and forfeited cargo via public auction, donation, official use by the bureau, negotiated sale, re-export, destruction, and turnover to other government agencies. These powers stem from Customs Administrative Order No. 03-2020 dated Jan. 21, 2020.
Finance Secretary Carlos G. Dominguez III said the DoF modernization is facilitating the seizure of smuggled devices, which can be tapped in support of the DepEd’s blended learning efforts.
“Our customs officers have continuously modernized their processes and intensified their efforts to combat illicit trade,” Mr. Dominguez was quoted as saying in the statement.
The pandemic forced schools to go online as lockdowns and the fear of infection disrupt face-to-face classes.
President Rodrigo R. Duterte rejected in late February a proposal to hold limited face-to-face classes due to the lack of vaccines at the time.
Seven senators last week filed a resolution asking the government to pilot-test physical classes in 1,065 schools in low-risk areas, to minimize the adverse impact on the quality of education. — Beatrice M. Laforga
THE United States Agency for International Development (USAID) and the Department of Education (DepEd) have signed a P4.8-billion assistance agreement to improve the education sector, the US Embassy in the Philippines said in a statement Thursday.
Lawrence Hardy II, USAID Philippines mission director, said the new bilateral deal “marks a new era in our longstanding partnership” to achieve quality education.
“These programs will strengthen Philippine institutions to provide quality education. They also recognize the important and unique contributions the private sector and civil society bring to partnerships in achieving better education results,” he was quoted as saying in the statement.
The five-year agreement will “continue and deepen” the US commitment to help out-of-school youth, the embassy said, by improving literacy rates, math competency, social skills, and employment and life skills for out-of-school youth, as well as strengthen education governance, it added.
The agreement is one of the four new assistance agreements with the US signed in 2020 and 2021 totaling about P32.7 billion over five years.
The other agreements signed were with the Health department, to improve the health system, the Department of Finance, to develop the economy, and the National Economic and Development Authority, in aid of protecting the environment.
The US Embassy said the US has provided about P228.8 billion worth of assistance to the Philippines in the past 20 years. — Vann Marlo M. Villegas
HOG RAISERS said plans to expand pork imports may actually result in higher pork prices if supplier countries gain leverage on pricing when the Philippines signals a high degree of dependence on foreign produce.
“We could be giving the wrong signal. From 54,000 (MT), naging 400,000 (MT) kailangan natin… (we indicated demand of over 400,000 MT). We will not be surprised if pork import prices rise from $1.50 per kilo to $2.00-$2.50,” according to the National Federation of Hog Farmers, Inc. President Chester Warren Y. Tan, who was speaking at a joint hearing Thursday of the House Committee on Agriculture and Food and the House Committee on Trade and Industry Thursday.
He was referring to the Department of Agriculture’s (DA) proposal to expand the minimum access volume (MAV) quota for pork imports to 404,000 metric tons (MT) from the current 54,000 MT, in order to raise the supply of pork after domestic growers saw their herds diminished by African Swine Fever.
The DA is also proposing to lower tariffs on pork imports to 5% for quantities within the MAV quota and 15% on out-of-quota volumes over six months. The current settings are 30% and 40% respectively.
Mr. Tan said the DA should actually increase tariffs “so we can compete on a level playing field.”
Samahang Industriya ng Agrikultura Chairman Rosendo So said at current tariff settings, importers are still profitable, and added that their profits will rise further if tariffs drop.
He added that the government will be disadvantaged by a lowering of tariffs because it will collect less revenue.
“Makakakolekta pa rin tayo ng P12 billion… Kung ang taripa ay binaba sa 5%, ang makokolekta lang natin ay P2.8 billion (We can collect P12 billion from current pork tariffs… If they are lowered to 5%, we will only collect P2.8 billion),” he said at the hearing, using Bureau of Customs (BoC) estimates of pork import prices.
The DA has estimated pork import prices on a per-kilo basis at $3. The BoC estimate is $1.70. — Gillian M. Cortez
THE 7.2-kilometer segment of the Cavite-Laguna Expressway (CALAX), which runs between the Santa Rosa-Tagaytay Road Interchange and the Silang East Interchange, may open by the third quarter of the year, MPCALA Holdings, Inc. said Thursday.
MPCALA President and General Manager Roberto V. Bontia announced at an online briefing Thursday that the new subsection, known as Subsection 5, is targeted for completion by the third quarter.
Subsection 5 is currently 83% complete and is part of the 45-kilometer CALAX expressway running from Kawit, Cavite to Mamplasan Interchange in Biñan, Laguna.
“As soon as the right of way is handed over to us, we will double our construction efforts to avoid any unnecessary delay,” Mr. Bontia said.
Public Works and Highways Secretary Mark A. Villar and MPCALA Holdings executives inspected Subsection 5 Thursday.
“As travel restrictions are slowly but surely being lifted, this new subsection of CALAX will help accelerate economic progress in Laguna and Cavite by providing interconnection between the two provinces of Region 4-A,” Mr. Villar noted.
“This segment is crucial since it is expected to serve almost 5,000 cars per day, and will ease traffic along Governor’s Drive, Aguinaldo Highway, and Sta. Rosa-Tagaytay Road once opened,” he added.
Mr. Villar also said that the acquisition of right of way has been a challenge for the company and the Department of Public Works and Highways.
“We are giving our full effort to deliver and eventually open with as little deviation to the original timeline as possible.”
The first segments of CALAX that are currently operational run from Mamplasan to Santa Rosa in Laguna.
The operational segments are servicing about 10,000 vehicles daily, according to Mr. Villar.
“We target to finish the whole… stretch of CALAX and serve 50,000 cars before 2022 ends,” he said.
The project has eight subsections: Kawit to Open Canal (subsection 1), Open Canal to Governor’s Drive (subsection 2), Governor’s Drive to Silang (subsection 3), Silang to Silang East (subsection 4), Silang East to Santa Rosa (subsection 5), and Santa Rosa to Mamplasan (subsections 6, 7, & 8).
Once fully operational, the P35.43-billion project is expected to cut travel time between the Manila-Cavite Expressway and South Luzon Expressway to 45 minutes from the current 2.5 hours.
MPCALA Holdings is a subsidiary of Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., which is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
GOVERNMENT SUPPORT for startups should focus on creating a positive regulatory environment for private investment, rather than trying to “do it all” by funding the sector itself, experts said at an Asian Development Bank (ADB) webinar.
Developing economies can help develop startups more effectively by paying more attention to improving governance rather than providing capital themselves, according to Nitin Pangarkar, an associate professor at National University of Singapore.
“The mistake that many governments make is they try to do it all… They cannot replicate the incentives that these private providers of capital have,” Mr. Pangarkar said.
“Some of the governments in the region are trying too hard to provide the funding themselves. I think that’s not the solution. The solution is to provide a conducive environment to attract providers of capital and let the market magic work its thing,” he added.
He said governments should focus on promoting ease of doing business so investors can set up shop painlessly, as well as building quality infrastructure, particularly internet connectivity.
Governments also need to avoid overtaxing the private sector, support immigration to improve access to global talent, and improve the quality of education.
“It’s a journey. It cannot be done 1-2 years but will take a long time. Even Singapore took a long time, but it can be done,” added Mr. Pangarkar.
Paul Vandenberg, a senior economist at ADB’s Economic Research and Operational Support Division, said clear regulation, tax and bankruptcy procedures, and efficient courts are attractive to the venture capital (VC) that bets on startups.
In the Philippines, VC funding for startups lags the region because of risk aversion in the Philippine investment community, according to Katrina R. Chan, director at startup platform QBO Innovation Hub Philippines.
Ms. Chan said there is enough money available for funding but the money is not reaching companies because of bottlenecks.
“There is also a lack of mature founders, very few success stories. How do we break that cycle? How do we get actual risk capital flowing into companies to get that momentum going and have enough pipeline that companies can mature,” she added.
Winston Damarillo, the chief strategy officer of regulatory technology startup UNAWA, said Filipinos overseas should be tapped to provide funding.
“(The issue is) how do you organize that diaspora capital and how do you repatriate them both in terms of skills and money?” Mr. Damarillo said. — Beatrice M. Laforga
A MEMBER of a House of Representatives committee said she will propose an increase in the housing budget to at least P50 billion next year, following the panel’s approval of a resolution declaring a housing crisis.
In a statement Thursday, the House Committee on Housing and Urban Development said it will also collaborate with the Department of Human Settlements and Urban Development and the National Housing Authority (NHA) to achieve a goal of building 6.7 million housing units.
San Jose Del Monte City Representative Florida P. Robes said the committee “will move to increase the budget for socialized housing to at least P50 billion starting next year and increase it every year thereafter to enable the government to address the issue.”
On Wednesday, the panel adopted House Substitute Resolution No. 1458 declaring a housing crisis in the Philippines. The resolution said only about 800,000 housing units were constructed between 2016 and 2020, against a projected demand for over six million units by 2022.
The government allocated an average of 0.74% of the national budget for socialized housing between 2010 and 2021.
The House committee plans to fast-track 18 pending measures meant to ease the housing crisis.
Ms. Robes heads the technical working group created by the House Resolution.
“This is an ambitious goal I know because it is not easy especially now that we have the pandemic but we have housing officials who are passionate about their work and are very much willing to work together to fulfill their mandate of providing decent and affordable housing to all underserved Filipino families,” she said. — Gillian M. Cortez
THE aquaculture industry has been given the go-ahead to catch more juvenile mangrove crabs and crablets to help with restocking, an order which authorities billed as an aid to the industry’s recovery.
According to Administrative Circular No. 2 issued by the Department of Agriculture. “There is a clamor for stakeholders whose livelihoods are affected by the implementation of the (fisheries administrative order) to allow them to catch, transport, trade, and sell crablets less than five centimeters carapace width for aquaculture purposes, in order to augment their income during this coronavirus disease 2019 (COVID-19) pandemic, and also to support the recovery of the aquaculture industry.”
Circular No. 2 partially suspends the implementation of Section 3 of Fisheries Administrative Order No. 264, which prohibited catching and trading of those resources.
Agriculture Secretary William D. Dar, who signed the circular on March 5, said the juvenile mangrove crabs and mangrove crablets can be caught only for further growing by aquaculture operations.
Mr. Dar also ordered the Bureau of Fisheries and Aquatic Resources (BFAR) to provide immediate assistance to mangrove crablet gatherers, consolidators, traders, and growers affected by the pandemic.
Mr. Dar also instructed BFAR regional offices to implement conservation and management measures such as mangrove reforestation, ensure the release of egg-bearing crabs, and establish crab sanctuaries.
The circular will be automatically lifted after one year or once Proclamation No. 922 declaring the state of public health emergency is withdrawn by President Rodrigo R. Duterte. — Revin Mikael D. Ochave
