Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 8618

Peso surges to three-year high

The peso climbed versus the dollar on Friday to its strongest level in over three years on progress in the development of a vaccine for the coronavirus and better economic data overseas.

The local unit finished trading at P49.55 per dollar on Friday, rising by 18 centavos from the P49.73 close on Thursday, data from the Bankers Association of the Philippines showed.

Week-on-week, the currency also appreciated by 37 centavos from its P49.92 finish on June 26.

The peso opened the session at P49.70 per dollar, which was also its intraday low. Meanwhile, its best showing was at its close of P49.55.

Dollars traded rose to $758.3 million from the $615.66 million recorded on Thursday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was supported by prospects of a vaccine for the coronavirus disease 2019 (COVID-19) as well as better data from the US.

“The peso exchange rate closed the strongest in more than three years or since June 14, [2017]’s close of P49.505, after stronger-than-expected US jobs data and positive developments on possible vaccine versus COVID-19 led to improved global market risk appetite,” Mr. Ricafort said in a text message.

Reuters reported that data from the US Labor Department showed non-farm payrolls climbed by 4.8 million jobs in June, a record high since the government started keeping records in 1939. This, as more restaurants and bars reopened as restrictions have been eased.

On the other hand, a trader attributed the peso’s gains to improvement in China’s services sector.

“The peso strengthened further after Chinese services data came out stronger-than-expected, spurring optimism of gradual recovery in the global economy,” the trader said in an email.

Reuters reported the Caixin/Markit services Purchasing Managers’ Index increased to 58.4, the highest reading since April 2010, from the 55 logged in May. A reading above 50 shows expansion.

China’s services sector accounts for 60% of the country’s economy and half of urban job creation. — LWTN with Reuters

Philippine non-food and industrial crop production ‘mixed’ in first quarter

PRODUCTION of four major non-food and industrial crops, namely coffee, rubber, sugarcane, and cacao, rose in the first quarter of 2020, while the output of abaca fiber, coconut, and tobacco declined, according to the Philippine Statistics Authority (PSA).

In its major non-food and industrial crops quarterly bulletin, the PSA said that abaca fiber production fell 5.7% year on year to 14,953 metric tons (MT) in the first quarter.

The Bicol Region was the top abaca producer, accounting for 43.2% or 6,461 MT, followed by Eastern Visayas at 15% or 2,244 MT, and the Davao Region at 12% or 1,801 MT.

Coconut production fell 5.1% year on year to 3.14 million MT.

The Davao Region led in coconut production, accounting for 15.5% or 487,292 MT, followed by Zamboanga Peninsula at 14.1% or 442,310 MT, and Northern Mindanao at 13.6% or 426,179 MT.

Tobacco production fell 0.5% year on year to 12,717 MT

The Ilocos Region was the country’s top tobacco producer, accounting for 89.2% or 11,349 MT, followed by the Cordillera Administrative Region (CAR) at 8.2% or 1,037 MT, and Cagayan Valley at 1.8% or 232 MT.

Meanwhile, coffee production rose 0.3% year on year to 17,220 MT.

SOCCSKSARGEN (South Cotabato, Cotabato City, Sultan Kudarat, Sarangani, and General Santos City) was the top coffee producer, growing up 31.9% or 5,499 MT, followed by the Davao Region at 13.9% or 2,391 MT, and Northern Mindanao at 12.5% or 2,146 MT.

Robusta coffee was the top coffee variety at 69.2% or 11,923 MT, followed by Arabica coffee at 21.9% or 3,764 MT, and Excelsa coffee at 8.3% or 1,431 MT.

Rubber production rose 0.04% year on year to 45,754 MT.

SOCCSKSARGEN led the country’s rubber production, accounting for 40.9% or 18,700 MT, followed by the Zamboanga Peninsula at 40% or 18,295 MT, and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at 7.3% or 3,351 MT.
Sugarcane production rose 6.9% year on year to 12.52 million MT.

Western Visayas was the top sugarcane producing region, growing 52.6% or 6.59 million MT, followed by Northern Mindanao at 16.9% or 2.11 million MT, and Central Visayas at 12.4% or 1.55 million MT.

Cacao production rose 16.7% year on year to 2,011 MT.

The Davao Region led the country’s cacao production at 79.2% or 1,592 MT, followed by the Zamboanga Peninsula at 3.3% or 66.59 MT, and Northern Mindanao at 3.1% or 62.59 MT.

The PSA estimated in May that the country’s total crop production fell 2.1% year on year in the first quarter of 2020.

Despite posting a decline, the crops sector accounted for the highest share of agricultural output at 54.9%. — Revin Mikhael D. Ochave

RCEF farmer training programs to continue despite pandemic

TRAINING programs for farmers under the Rice Competitiveness Enhancement Fund (RCEF) will continue after being redesigned to minimize health risks amid the coronavirus disease 2019 (COVID-19) pandemic.

In a statement, RCEF-Rice Extension Services Program Technical Working Group chair Rosana P. Mula said that modifications in the programs’ learning approach and delivery will be implemented to optimize learning.

Ms. Mula said the Farmers’ Field School on the production of high-quality inbred rice and seeds and farm mechanization was redesigned to reduce the number of contact days while ensuring that rice production principles and practices are taught.

“The field school is complemented with radio-based education, technical briefings during seed distribution, and information materials in various formats,” Ms. Mula said.

Within six years, some 2 million farmers are projected to be taught about modern rice production using different learning platforms, while around 300,000 farmers are expected to enroll as scholars of the Technical Education and Skills Development Authority (TESDA) in the season-long Farmers’ Field School.

Meanwhile, RCEF-Rice Extension Services Program Technical Working Group vice-chair Karen Eloisa T. Barroga said the Rice Specialists Training Course will soon pilot-test a combination of online lectures and hands-on, face-to-face learning.

Ms. Barroga said the training course is geared towards helping farmers by developing technical skills such as field problems diagnostic skills.

“However, given our situation, we will now require trainees to establish techno demos right at their areas and come to the Philippine Rice Research Institute (PhilRice) for only a week for their field practicum,” Ms. Barroga added.

In addition, trainers are scheduled to undergo trainer courses while some 200 to 300 graduates of previous rice production season-long training courses will be given an online refresher course made by PhilRice and the Agricultural Training Institute (ATI). The online refresher course will be accessible through ATI’s eLearning site.

The RCEF-Rice Extension Services Program is a part of Republic Act. No. 11203 or the Rice Tariffication Law which aims to boost the capacity of rice farmers. — Revin Mikhael D. Ochave

IPOPHL and PIDS to conduct IP research, policy analysis

The country’s intellectual property office will work with government think tank Philippine Institute for Development Studies (PIDS) on intellectual property research projects and policy analyses.

The Intellectual Property Office of the Philippines (IPOPHL) said in a press release on Friday that it signed a memorandum of understanding with PIDS to share information and resources to cooperate on research, capacity building, and policy recommendations.

The memorandum was signed by IPOPHL Director General Rowel S. Barba and PIDS President Celia M. Reyes in an online event on June 30.

Mr. Barba said the partnership will boost Philippine intellectual property amid a need for solutions for the health crisis.

“Creating a vibrant scene for IP research will fulfill our broader goals of raising IP awareness and formulating policies that capture the current and long-term needs of businesses, innovators, and creative industries,” he said.

“With the government think tank now as our partner, we hope to generate more studies to promote greater use of the IP system which can help the country achieve its economic, scientific, cultural, and sustainable development goals.”

Ms. Reyes in turn said that the parties will combine resources and pool their experts for research.

“We hope we can jointly organize policy dialogues to further discussions on IP and innovation. In addition, PIDS has a wide network of research partners who can be tapped to further the objectives of our partnership,” she said. — Jenina P. Ibañez

Dito eyes 1,300 cell towers completed by October

Dennis A. Uy’s Dito Telecommunity Corp. is expecting to finish the construction of 1,300 cell towers — the number of towers needed to meet regulatory requirements — by October.

On Thursday, the National Telecommunications Commission (NTC) announced that it had approved the appeal of the telecommunications firm to extend its technical audit, which the latter said did not affect its technical runs.

“The only thing that we asked to be moved is our audit,” Dito Chief Administrative Officer Adel. A Tamano clarified to reporters in a virtual briefing on Friday.

The NTC moved Dito’s technical audit to Jan. 7 next year, from the earlier July 8 schedule.

It is stated in Dito’s certificate of public convenience and necessity (CPCN) that in its first year of operations, it must meet a target coverage of 37% of the country’s population and a speed of 27 megabits per second (Mbps).

According to Rodolfo D. Santiago, Dito’s chief technology officer, of the 1,300 target cell sites it needs to reach the required coverage, 300 have already been completed and can run as a network, while 500 have towers erected but are yet to have support facilities installed.

These sites are self-built and are located on private properties. Mr. Santiago said the construction of the target sites can be completed by October.

Dito has already conducted some technical tests, albeit internally, since March. These tests could have been done in public if not for the lockdown, the company noted.

“We’ve already done our first phone calls and there are a number of our sites that are already live, so [these] were not affected,” Mr. Tamano said.

He said the company had conducted a series of domestic technical calls via its own network in five areas in the country, as well as some international calls to Hong Kong and Beijing.

Meanwhile, the company still has its CPCN-granted remediation periods, the time when it can rectify faults in construction and preliminary operations, despite moving its technical audit.

“The extension does not affect the number of remediation periods we have,” Mr. Tamano said.

Even if it failed to meet some of its regulatory requirements in January next year, Dito claimed it can still proceed with its commercial run.

“We are on track for our commercial launch this March 2021 and we are moving heaven and earth to make that happen,” Mr. Tamano said.

Dito has allotted P150 billion for capital expenditure to start operations as the country’s third telecommunications player. — Adam J. Ang

Robust rental business lifts Anchor Land profits by 61%

Anchor Land Holdings, Inc.’s earnings surged 61% to P205.72 million in the first quarter due to double-digit growth in its rental business.

In a regulatory filing, the upscale property developer said revenue from its rental operations jumped 80% to P304.96 million because of higher rental income from its Baylife Venue and The Centrium projects in Parañaque City.

It also saw recurring rental income from projects such as One Soler, One Logistics Center, One Shopping Center, Two Shopping Center, and commercial facilities in condominium buildings.

However, the growth in the rental segment was offset by a 54% drop in real estate sales, which stood at P578.88 million at the end of the period. The coronavirus disease 2019 (COVID-19) pandemic lockdowns stopped construction work on its ongoing projects, delaying new launches.

Consolidated revenues for the three months posted a 37% year-on-year decline to P1.03 billion.

But the topline drop was tempered by the 49% decrease in costs and expenses, which stood at P729.52 million at the end of the period. This resulted in a higher bottomline for the quarter.

In a statement, Anchor Land President Digna Elizabeth Ventura said the company continues to be bullish for the rest of the year despite the COVID-19 pandemic.

“We are committed to our property development strategies and strengthening our stronghold in Manila Chinatown and in the Bay City,” she was quoted as saying.

“Despite the disruption to economic activities caused by the COVID-19 pandemic, we remain prudent in our risk management and business continuity strategies,” Ms. Ventura added.

Anchor Land Vice-Chairman and CEO Steve Li also said the company’s strategy remains “geared towards sustaining our growth momentum by building our leasable portfolio.”

Shares in Anchor Land at the stock exchange gained 20 centavos or 2.30% to close at P8.89 each on Friday. — Denise A. Valdez

Consunji’s Semirara defers P3.7-B capex

Consunji-led Semirara Mining and Power Corp. is deferring capital expenditure (capex) projects worth P3.7 billion to next year as part of its strategy to stay afloat amid the impact of the global pandemic.

In its annual stockholders’ meeting held virtually on Friday, the listed coal mining and power firm said its business was “largely unaffected” by the government’s quarantine policies which have been in place since mid-March, though it bore the brunt of weak demand and slumping prices in the market.

“Our operations have been largely unaffected by the lockdown because of the nature of our business. However, like most companies, we are susceptible to weak demand and lower market prices,” Semirara Chairman Isidro A. Consunji said.

To remain stable and to meet its obligations, the company is delaying its capital expenditure to next year.

“Consistent with our disciplined and prudent approach in managing our company, we are rescheduling P3.7 billion worth of capex to 2021,” Mr. Consunji said.

“We will also defer hiring for non-corp[orate] positions, reduce non-essential business expenses, and dispose of non-core assets,” the company’s official added.

In the first quarter, Semirara posted a 43% drop in net income to P1.2 billion as its coal business saw declines in output and export sales.

The integrated energy firm reported that its coal output was down 22% to 3.2 million metric tons (MT) in the first three months of the year, compared to 4.1 million MT in the same period in 2019.

Its export sales also plunged by 20% to 1.6 million tons from last year’s 2 million tons, while domestic sales were almost unchanged at 1.6 million tons year-on-year.

Moreover, its average coal selling price went down by 16% to P1,900 per ton from P2,272/ton a year ago, mirroring the drop in global coal prices.

“Unfortunately, we do not see any significant movement in coal prices this year,” the company’s chairman said.

Meanwhile, the 300-megawatt second power plant unit of SEM-Calaca Power Corp. resumed operations in the first week of May after undergoing months of rehabilitation since October last year.

Semirara is engaged in coal mining and power generation and distribution. It is a unit of listed conglomerate DMCI Holdings, Inc.

On Friday, shares in Semirara inched up 0.47% to close at P12.70 each. — Adam J. Ang

McDonald’s to open fewer new stores than planned thanks to COVID-19

Fast food company McDonald’s Philippines is aiming to open 15 more stores in the country this year as expansion was hampered by the ongoing pandemic, the company’s top executive said in a digital briefing on Tuesday.

“With the crisis, we’ve had to adjust our plans but this year we continue to [expand] although it’s a lesser number of stores,” Kenneth S. Yang, President and CEO of McDonald’s Philippines, said during the briefing.

McDonald’s Philippines currently has 668 stores nationwide, more than 50 of which opened in 2019. Ninety-three percent of its stores are now open as lockdown restrictions are easing and dining in is allowed, albeit at a limited capacity.

“[Expansion] is something we have to continue to assess as time goes on though. And let’s see how the economy will be able to sustain additional growth,” he explained.

“In the spirit of transparency, with the lockdowns, our revenues have been severely impacted and while sales is slowly coming as we are in [general community quarantine], it is still far from where we were before,” Margot Torres, managing director of McDonald’s Philippines, said in the same briefing.

General community quarantine is a looser form of lockdown where people can go out of their homes, work, and dine at restaurants which can operate at a limited capacity.

Ms. Torres said that during the strict lockdown period from March to May, only 50% of their stores were open and the company had to rely on deliveries and drive-through orders for sales, with deliveries growing three times against pre-COVID-19 numbers.

Of those restaurants that were open, they only made “50%-60% of [regular] sales” because of limited hours and limited service channels allowed (delivery, drive through, and takeout).

Deliveries accounted for 30% of total sales while drive through orders accounted for “the biggest share of the business,” with over 40% of orders done via drive through — which is notable because only 50% of McDonald’s stores offer drive through services, said Oliver Rabatan, marketing and brand extensions director, at the briefing.

“When the crisis hit and we were on lockdown we couldn’t do dine-in so we had McDelivery, drive-through, and the digital channels to enable that and… as a we continue and the lockdowns ease and people start to have confidence to go out and dine out, we should also see our sales improving. But in the meantime, we will try to take advantage [and] exploit all these channels that are available to us,” Mr. Yang said.

The company expects to return to its pre-COVID-19 levels by 2021 and “normalcy” will be re-established by 2022 to 2023 though Ms. Torres said that the definition of “normal” may be different by then.

The same briefing also presented the safety measures put in place inside McDonald’s stores, including filling up a health declaration form, table service, frequent cleaning of high-touch surfaces, and taking temperatures of both customers and staff. — Zsarlene B. Chua

Ionics greenlights plan to build $13.8-million Laguna facility

Listed electronics company Ionics, Inc. is building a new $13.8-million (about P685.35 million) facility in Laguna province in partnership with a Calamba-based manufacturer.

In a disclosure made to the stock exchange on Friday, the company said its board of directors ratified the memorandum of agreement entered into by Ionics with Continental Temic Philippines, Inc. on May 29.

Ionics and Continental Temic signed a deal to construct and lease a build-to-suit production facility on Ionics’ property in the Light Industry and Science Park II, Calamba City, Laguna.

The $13.8-million project will be funded by internally generated cash and bank borrowings.

In a June 24 disclosure to the exchange, Ionics said its first quarter performance may miss targets because of supply chain disruptions from China and Taiwan, due to the coronavirus pandemic.

The Philippines’ own lockdown,which started in mid-March, affected Ionics’ facilities in CALABARZON, and resulted in limited local operations for the company.

“This quarantining of Luzon for a month, with minimal operation allowed, is anticipated to impact adversely on the performance of the first quarter of 2020,” it said.

Ionics has not disclosed its first quarter earnings results yet. In 2019, its earnings were trimmed 8% to $3.82 million amid a 5% growth in revenues to $60.1 million.

Shares in the company at the stock exchange climbed three centavos or 2.91% to close at P1.06 each. — Denise A. Valdez

Stocks rise further on better-than-expected US jobs report

The main index ended Friday’s trading session with gains as last-minute bargain hunting lifted the market on improved jobs data in the United States.

The benchmark Philippine Stock Exchange index (PSEi) picked up 8.58 points or 0.13% to close at 6,372.66 on Friday. The broader all shares index increased 0.95 point or 0.02% to 3,717.93.

The PSEi hit a low of 6,322.92 in the intraday and reached a high of 6,398.79 before settling at 6,372.66 at the close.

“Local shares rose following a better-than-expected US jobs report as the economy continued to recover from the coronavirus pandemic,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The US government reported on Thursday that non-farm payrolls grew by 4.8 million in June, which Reuters noted was the highest since 1939.

However, reports of improving economic data, including the improved manufacturing data in several countries as reported earlier this week, come on the backdrop of rising cases of coronavirus disease 2019 (COVID-19).

As of Friday, Johns Hopkins University’s Coronavirus Resource Center showed there were 10.87 million COVID-19 cases across the world, with deaths reaching 521,298.

“(Friday’s) trading shows that there’s still mixed sentiment in the market. Optimists and pessimists were in a tug-of-war backed by economic recovery hopes and COVID-19 spread risks respectively,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.

But he said positive sentiment over the US jobs report prevailed on Friday, matched by the bullishness of foreign investors for the third straight day. Offshore investors were net buyers at the PSE with net inflows growing to P834.22 million from the previous day’s P59.32 million.

Most sectoral indices closed with gains as well. Mining and oil rose 114.64 points or 2.20% to 5,306.84; property grew 25.67 points or 0.81% to 3,169.68; holding firms gained 26.70 points or 0.40% to 6,565.99; and services climbed 0.69 point or 0.04% to 1,432.08.

On the other hand, financials fell 9.43 points or 0.73% to 1,267.56 and industrials lost 45.56 points or 0.57% to 7,950.73.

Value turnover was steady at P7.39 billion against P7.35 billion the previous day. Some 2.66 billion issues switched hands on Friday, up from Thursday’s 761.37 million issues.

Decliners beat advancers, 103 against 92, while 45 names ended unchanged. — Denise A. Valdez

Digital payments should be new normal for government — experts

by Mariel Alison L. Aguinaldo

It’s high time for the government to integrate and normalize digital payments, according to executives and government officials. 

Orlando B. Vea, PayMaya Founder and Chief Executive Officer, enumerated the benefits of digital payments, including ease of doing business and promotion of physical distancing and touch-free transactions, the latter being particularly helpful during the COVID-19 pandemic. 

“The past few months have brought to fore how digital technology can help the government in the uninterrupted delivery of essential services and faster disbursements of financial aid. Pre-COVID-19, cash was king. Today, in the new normal, cashless is emerging as the preferred option,” he said during the first session of BusinessWorld Insights, a three-part online forum.

Mr. Vea cited some that have partnered with his company, such as the Social Security System, Bureau of Customs, and the local governments of Pasig City and Caloocan City. 

Another example is Valenzuela City, which launched Paspas Permit prior to the pandemic. The end-to-end permit system is digitized, from application to delivery of permits via Grab Delivery. Through this system, citizens can pay their taxes and access civil registry details, such as wedding contracts.

“We wanted them to do it online, in their comforts of their own home, and they didn’t even have to brave traffic to be able to renew their business permit in ten seconds,” said Valenzuela City Mayor Rex T. Gatchalian.  

Jeremiah B. Belgica, director-general of the Anti-Red Tape Authority, added that digitization will become necessary for the survival of government agencies. He cited units currently working with a skeletal force, saying that this may not be a sustainable arrangement.

To proceed with digitization, he recommended that government agencies first streamline and re-engineer their processes by removing practices that no longer serve a purpose. 

“If we keep on refusing to give in to the wave of the new normal towards digitization, then government would cease to function in accordance to what the people actually need,” Mr. Belgica said. “We cannot automate something that is not first rational or streamlined, because the red tape that has been there for so long could end up still being in the automation.” 

PayMaya is part of Voyager Innovations, Inc., whose portfolio includes PayMaya Enterprise for end-to-end merchant-acquiring solutions and Smart Padala, which has over 30,000 partner agent touchpoints nationwide.

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.

IATF approves resumption of practices for basketball, football

By Michael Angelo S. Murillo

The local sporting community’s push to get back in the swing of things gained some headway on Friday after it was announced that the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) approved the resumption of practices and conditioning for professional and national basketball and football teams.

During his daily media briefing, Presidential Spokesperson Harry Roque announced the IATF decision to allow the conduct of health-enhancing physical activities and sports amid the coronavirus disease 2019 (COVID-19) pandemic as recommended by pertinent government agencies.

The decision paved the way for the return to some activities of sports organizations like the Philippine Basketball Association (PBA) and Philippines Football League (PFL).

“It was agreed upon in the IATF to adopt the decision of the technical working group. The Philippine Sports Commission, Games and Amusement Board (GAB) and the Department of Health approved the joint administrative order on the guidelines on the conduct of health-enhancing physical activities and sports during the COVID-19 pandemic,” said Mr. Roque.

“[That means] practices and conditioning of basketball and football are now allowed upon the request of the PBA and other football organizations,” he added.

In the lead-up to the decision, the PBA, along with other sporting bodies like the Philippine Football Federation (PFF), made representations to the GAB for guidance to convince the IATF, the lead body in the country’s fight against COVID-19, to allow sports to return gradually, first with practices and then for matches to resume in different leagues.

Their request was formally discussed by GAB with the IATF’s technical working group, and GAB Chairman Bahm Mitra said it was warmly received.

The PBA has been in hiatus since March 11 after it decided to suspend its season with COVID-19 taking further root in the country and mitigating measures by the government against the spread of the virus made it impossible to hold the staging of the matches.

The league said a lot hinged on the IATF decision for it to get the ball rolling towards resuming activities.

“It all depends on the IATF. We have sent our letter of request to IATF and we’re just waiting for the response. We’ll just wait for the response and see after. If even practices are not allowed, basketball may not push through at all. So, we’ll see,” PBA Commissioner Willie Marcial said.

In recent weeks, the PBA conducted meetings and consultations, including with players, to discuss health and safety protocols to be implemented once activities resume.

The PBA is set to make a final decision on the continuation of its season in August.

The PFF, for its part, is also bracing for a possible return of activities, crafting its own protocols and making adjustments to its calendar of events.

1...8,6178,6188,619...13,493Page 8,618 of 13,493
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin Twitter Youtube