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PHL bond market’s growth slows in Q4 on maturities, lower issues

THE GROWTH of the Philippine bond market eased in the fourth quarter of 2019 after the stock of government bonds declined as some issues matured and amid lower issuances, according to an Asian Development Bank (ADB) report.

According to ADB’s March Asia Bond Monitor report released Wednesday, the country’s outstanding local currency (LCY) bonds grew nine percent year on year in the fourth quarter to $131 billion (P6.646 trillion), slower than the 15.7% expansion seen in the third quarter.

In the emerging East Asia region, the Philippine bond market was the fourth fastest growing market, behind Indonesia’s 16.6%, Singapore’s 14.7% and China’s 14.1% and also below the region’s average of 12.5%.

Emerging East Asia is composed of the People’s Republic of China, Hong Kong, Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

The quarter’s growth was fueled by the 14.5% jump in corporate bonds and the 7.5% hike in government bond stock.

On a quarterly basis, the country’s outstanding LCY bond market weakened in the fourth quarter last year after seeing a 0.8% year-on-year drop on the back of the four percent growth in corporate bonds, but was dragged by the 2.1% contraction in government’s bond stock.

“A huge volume of Treasury bills and bonds matured in Q4 2019, reducing the stock of government bonds outstanding despite a hefty issuance volume during the quarter,” the report read.

Of the government’s LCY bond stock that stood at $101 billion (P5.141 trillion) as of end-December, Treasury bills (T-bills) grew 7.5% year on year to $101 billion (P5.141 trillion) and Treasury bonds rose 8.5% to $91 billion (P4.615 trillion).

Quarterly, the T-bill stock slumped to $10 billion (P486 billion) in the fourth quarter from the $11 billion (P553 billion) seen in the preceding quarter, while T-bonds also fell to $91 billion (P4.615 trillion) from $90 billion (P4.678 trillion) previously.

For corporate bonds, the LCY corporate bond market expanded to $30 billion (P1.505 trillion) in the last quarter from $28 billion (P1.447 trillion) in the preceding three months as well as the $25 billion (P1.315 trillion) seen in the fourth quarter of 2018.

Meanwhile, total bond issuances stood at $7.5 billion in the last three months of 2019, up 8.8% quarter on quarter on the back of the 42.4% surge in corporate bond issuances and the 0.4% dip in government securities, “as the Bureau of the Treasury had already met its annual issuance target during the preceding three quarters.”

“Reduced government bond issuance was also partly due to lower spending in the first half of 2019 as a result of the late approval of the government’s budget,” ADB said.

In terms of size, China remained largest at $12.090 trillion outstanding bond stock as of end-December, followed by Republic of Korea at $2.083 trillion, Thailand’s $446 trillion and Malaysia’s $363 trillion. Emerging East Asia region’s total bond market size stood at $16.036 trillion.

ADB flagged the coronavirus disease 2019 (COVID-19) outbreak as a risk to bond markets in the coming months.

“Between 31 December 2019 and 29 February 2020, 2-year and 10-year local currency government bond yields declined in major advanced economies, select European markets, and nearly all emerging East Asian markets amid heightened risk aversion due to the coronavirus disease 2019 outbreak and an uncertain global economic growth outlook,” ADB said.

“Many regional governments and central banks engaged in policy actions to mitigate the negative impact of COVID-19 on economic activities and financial markets. These include fiscal stimulus and monetary tools such as policy rate cuts and market operations,” it said.

The Bangko Sentral ng Pilipinas last week cut rates by 50 basis points (bps) to help boost the economy amid an expected slowdown due to the outbreak. This brought the overnight reverse repurchase rate to 3.25%, while overnight lending and deposit rates were trimmed to 3.75 to 2.75%, respectively.

On Monday, the central bank announced it will buy P300 billion in securities from the Bureau of the Treasury to help the government fund initiatives to help the economy weather COVID-19’s effects. On Tuesday, it also cut the reserve ratio of universal and commercial banks by 200 bps to 12% effective March 30.

On the fiscal side, economic managers earlier announced a P27.1-billion stimulus package to help sectors most affected by the virus outbreak.

The multilateral lender said other downside risks include geopolitical issues amid heightened tensions in the Middle East, as well as uncertainty over trade and globalization. — B.M. Laforga

Barolo 2016 vintage shines

As of this writing, Italy has sadly already overtaken China with more recorded deaths from the Covid-19, while in many parts of the world including here in Metro Manila, people are under lockdown, quarantined, and restricted to their homes for health preservation reasons. Everything may seem gloomy now, but as Wuhan, China has proven, there will be light at the end of the tunnel for the Italians, and the rest of the world undergoing this pandemic.

On a brighter note, this year’s newly released 2016 vintage of Barolo, one of Italy’s proudest wines, was tasting great almost across-the-board at Nebbiolo Prima, and it could be an iconic vintage in the making — a small but still good cheerful spot for the beleaguered Italians. See below the conclusion of my Nebbiolo Prima 2020 series, ending with the beloved Barolo from 2016 vintage and the Barolo Riserva from 2014 vintage.

BAROLO DOCG PARTICULARS
For the 2016 vintage, total production of Barolo was around 14 million bottles from its 2,091 hectares of vineyards. For Barolo DOCG, a minimum of 38 months of aging, of which a minimum of 18 months should be in a barrel, are required before the earliest commercial release, and this is basically pegged at Jan. 1 on the 4th year from vintage. Barolo is therefore aged a year longer than Barbaresco (38 months vs 26 months) and spends twice as much time in the barrel also against Barbaresco (18 months vs nine months) before its commercial release. For Barolo Riserva DOCG, a minimum of 62 months, of which a minimum of 18 months should be in the barrel, are required before the earliest commercial release, which is Jan. 1 of the 6th year from vintage — also a year longer than their Barbaresco Riserva counterpart.

THE 2016 VINTAGE
The year 2016 can be described as a very long vintage which started as early as January and finished with the late harvesting of Nebbiolo grapes in mid-October. There were some concerns about the low temperature or the “late cold” that caused some delay in the resumption of the vegetative cycle of the vines. But the low temperature and the rains in the spring provided the soil with the right amount of water reservoir for the physiological development of the Nebbiolo.

Despite the delayed vegetative process, consensus among producers was that ripening was achieved for the Nebbiolo grapes. The high temperature in August and September helped immensely the phenolic components of the grapes. Baume count, though, was not as high as previous year, which would also mean slightly lesser alcohol level for the wines.

BACK TO BACK WINNERS
The 2016 vintage came on the heels of the excellent 2015 vintage, another exceptional Barolo year, but of different charm. Having blind-tasted 192 Barolos from this vintage, I found most of the wines were quite balanced, with acids and tannins both in check. Many of the wines were also surprisingly approachable despite Barolo’s notoriety for being too harsh to drink young. Of the 192 Barolos tasted, I gave 86 or 44.8% of them 90 points or above. Some of my highest scored Barolos also came from this batch. The Barolo 2016 is one vintage to stock up on, and with high production and availability, we should be able to get our hands on these Barolos here in the Philippines. As for Barolo Riserva 2014, we only had five wines blind-tasted, to which I gave two, or 40%, 90 points or above. Last year, in the same Nebbiolo Prima, there were 32 Barolo Riserva 2013 wines for review.

My Ratings:

Please note these wines were tasted blind, and each wine was tasted for only a few minutes, given the huge quantity being tasted at any given morning during the entire Nebbiolo Prima event. Also understand that judgment on these wines was purely based on my personal biases and experience drinking, appreciating, and enjoying wines.

Best Barolo DOCG 2016

My top 86 wines from this lot of 192 wines are the following:

1. Gagliasso Mario Barolo 2016: 96 points “red cherries, jammy, vanilla, soft, plummy, super delectable, ripe, luscious and lengthy”

2-7.All with 95 points: Alessandro Rivetto Barolo 2016: “strawberry jam on the nose, a true fruit bomb, very pure, luscious fruits, good acid backbone, succulent and long ”

Bruna Grimaldi ‘Bricco Ambrogio’ Barolo 2016: “tangy, fragrant, ripe berries, alluring nose, persistent flavors, captivating from first whiff to finish”

Cagliero Barolo 2016: “subtle nose, but continues to evolve in the glass, strawberries, fresh and juicy, seamless pleasure”

Dosio ‘Serradenari’ Barolo 2016: “cherries, alluring nose, supple texture, sweet tannins, flinty at the end ”

Fracassi Umberto Barolo 2016: “sweet oak, caramel, maraschino cherries, round and juicy, sweet and ripe all the way”

8. Sansilvestro Barolo 2016: 94 points “leathery, earthy, more complex, blueberries, bitter-sweet tannins, lingering delicious berry taste”

9-14. All with 93 points: Aurelio Settimo ‘Rocche dell’Annunziata’ Barolo 2016; Garesio Barolo 2016; Giacomo Grimaldi ‘Ravera’ Barolo 2016; Giovanni Rosso ‘Serra’ Barolo 2016; La Carlina Barolo 2016; Roberto Sarotto Barolo 2016

15-26. All with 92 points: Abrigo Fratelli Barolo 2016; Boasso Franco ‘Margheria’ Barolo 2016; Cascina Ballarin ‘Bussia’ Barolo 2016; Cordero di Montezemolo Barolo 2016; Franco Conterno Barolo 2016; Gian Luca Colombo Vini Barolo 2016; Le Strette Barolo 2016; Mauro Molino Barolo 2016; Rizieri Barolo 2016; Sobrero Francesco ‘Parussi’ Barolo 2016; Tenuta Cucco Barolo 2016; Veglio Luigi E Massimo Barolo 2016

27-45. All with 91 points: Aurelio Settimo Barolo 2016; Barale Fratelli Barolo 2016; Bovio ‘Gattera’ Barolo 2016; Broccardo ‘Bricco San Pietro’ Barolo 2016; Casetta F. Lli Barolo 2016; Conterno Fantino Barolo 2016; Figli Luigi Oddero Barolo 2016; Fontana Livia Barolo 2016; Fontanafredda ‘Serralunga’ Barolo 2016; Le Ginestre Barolo 2016; M. Marengo Barolo 2016; Morra Diego ‘Monvigliero’ Barolo 2016; Palladino Barolo 2016; Pelassa Barolo 2016; Pira Luigi Barolo 2016; Rinaldi Francesco & Figli ‘Cannubi’ Barolo 2016; Rinaldi Francesco & Figli Barolo 2016; Rocche dei Manzoni Barolo 2016; Sobrero Francesco ‘Ciabot Tanasio’ Barolo 2016

46-86. All with 90 points: Abbona Marziano Barolo 2016; Alessandria Fratelli Barolo 2016; Alessandria Gianfranco Barolo 2016; Angela Negro Barolo 2016; Batasiolo Barolo 2016; Boroli ‘Brunella’ Barolo 2016; Boroli ‘Villero’ Barolo 2016; Bricco Maiolica Barolo 2016; Broccardo ‘I Tre Pais’ Barolo 2016; Bruna Grimaldi ‘Badarina’ Barolo 2016; Burlotto Barolo 2016; Carlo Revello & Figli Barolo 2016; Cascina Adelaide Barolo 2016; Diego Conterno Barolo 2016; Diego Pressenda Barolo 2016; Dosio Barolo 2016; E. Pira E Figli ‘Mosconi’ Barolo 2016; Fenocchio Giacomo Barolo 2016; Francone Barolo 2016; Giacomo Grimaldi ‘Sottocastello di Novello’ Barolo 2016; La Bioca Barolo 2016; La Fusina Barolo 2016; Lodali Barolo 2016; Mauro Veglio Barolo 2016; Monchiero F. Lli ‘Castiglione Falletto’ Barolo 2016; Monchiero F. Lli ‘Rocche di Castiglione’ Barolo 2016; Palladino Barolo 2016; Pecchenino Barolo 2016; Podere Ruggeri Corsini ‘Bricco San Pietro’ Barolo 2016; Podere Ruggeri Corsini ‘Bussia Corsini’ Barolo 2016; Poderi Marcarini Barolo 2016; Reva Barolo 2016; Reverdito Michele Barolo 2016; Roccheviberti Barolo 2016; Silvano Bolmida Barolo 2016; Simone Scaletta Viticoltore Barolo 2016; Tenuta L’Illuminata Barolo 2016; Vajra ‘Baudana’ Barolo 2016; Vico Luigi Barolo 2016; Voerzio Martini Barolo 2016

Please be aware that some brands have been cited more than once, and that is why the “Cru Village” name is attached to the Barolo brand if the cru is included, to show the different labels of the same Barolo producer. From my top 86, Bruna Grimaldi, Dosio, Aurelio Settimo, Giacomo Grimaldi, Sobrero Francesco, Broccardo, Rinaldi Francesco & Figli, and Boroli all appeared twice with different versions of their Barolo 2016. While many new Barolo brands made my list this year, some familiar names with same high scores from last year’s Barolo 2015 vintage review were again included, including Dosio, Boroli, Morra Diego, and Riziera to name a few.

Best Barolo Riserva DOCG 2014

My top two of 90 points score and over from a tiny group of five wines:

1. Lo Zoccolaio Barolo Riserva 2014: 95 points “Very vibrant, cherry notes, silky on the palate, flavorful, soft tannins, long and delectable finish”

2. Gigi Rosso Barolo Riserva 2014: 90 points

Last year, Gigi Rosso Barolo Riserva 2013 also made my list.

 

The author is a member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, e-mail him at protegeinc@yahoo.com.

PayMaya opens digital donation facility

DIGITAL PAYMENTS firm PayMaya Philippines, Inc. has launched a one-stop digital donation facility, enabling people to donate to various charitable organizations that aim to help affected communities and frontliners who are dealing with the coronavirus disease 2019 (COVID-19) pandemic.

PayMaya’s partner organizations raising funds for the initiative include Philippine Red Cross, United Nations Children’s Fund, Oxfam Pilipinas, and Caritas Manila.

“By visiting the #OneAgainstCOVID19 page in the PayMaya website (http://donate.paymaya.com) or going to the Pay Bills section of the PayMaya app (initially available on Android and soon on IOS), Filipinos can choose from a variety of charitable organizations to support with causes that range from providing medical front liners with meals and personal protective equipment to giving relief and medical packages to communities, among many others. Recipient beneficiaries, meanwhile, will be able to receive the donations through PayMaya’s platforms,” PayMaya said.

Anyone, including those living abroad, can donate using their credit, debit, or prepaid cards.

“For PayMaya account holders, donating via the Pay Bills section of the PayMaya app or by scanning a partner’s PayMaya QR online is the fastest way to support #OneAgainstCOVID19 causes,” it said. — Arjay L. Balinbin

Stuff to do at home (03/26/20)

Frida Kahlo’s artworks online

View Frida Kahlo’s work on your screens through the Google Arts & Culture platform. The website has listed 800 paintings, photographs and objects by the Mexican artist from 33 international museums. To view the exhibition, visit https://artsandculture.google.com/project/frida-kahlo.

Scribd materials for free for 30 days

Enjoy free books, audiobooks, magazines, and documents for 30 days at Scribd. To view titles, Visit https://www.scribd.com/readfree?fbclid=IwAR363ywNP9yoBbKJVQFYCtilfGfljPDGeOatqKJgWMV5Pj9-p7j-gkaGOb8.

Classic Pinoy films online

Director Mike de Leon uploaded classic Filipino films from the 1930s to 1960s on his vimeo account, Citizen Jake. Titles include Manuel Silos’ Pista sa Nayon (1948); Gregorio Fernandez’s Kung Ako’y Mahal Mo (1960); and Lamberto V. Avellana’s Aklat ng Buhay (1952). Watch films at https://vimeo.com/user83013343.

Free Neil Gaiman stories online

Best-selling author Neil Gaiman offers free essays, audiobooks, book excerpts, and videos at his official website under “Cool Stuff and Things.” Visit https://www.neilgaiman.com/Cool_Stuff.

Arts at BGC at Home

Every Wednesday, Arts at BGC offers creative prompts at the Arts at BCG (https://www.facebook.com/artsatbgc/ and @artsatbgc) and BGC Art Center (https://www.facebook.com/BGCArtsCenter/ and @bgcartscenter) Facebook and Instagram pages. Join the Arts at BGC Community to get in touch with other participants. https://www.facebook.com/groups/artsatbgc.

Ballet and opera free online

The Royal Opera House will be screening its shows online through its Facebook (https://www.facebook.com/royaloperahouse/) and YouTube (https://www.youtube.com/user/RoyalOperaHouse) pages. It begins on March 27 with Prokofiev’s Peter and the Wolf. Other performances include Handel’s opera Acis and Galatea on April 3; Mozart’s Così fan tutte on April 10; and the ballet The Metamorphosis on April 17.

Meg Cabot’s The Princess DiariesQuarantine Edition online

Best-selling author of The Princess Diaries Meg Cabot offers The Princess Diaries — Quarantine Edition free at her official website. Entries are updated daily. Visit https://www.megcabot.com/2020/03/corona-princess-diaries-day-1/?utm_content=122945851&utm_medium=social&utm_source=facebook&hss_channel=fbp-67512624694.

Patrick Stewart reads Shakespeare’s Sonnets

Actor Patrick Stewart, best known for playing Star Trek’s Captain Picard, is reading Shakespeare’s Sonnets on his Facebook page in a project called #ASonnetADay.

MyKuya reports climb in bookings, job applications due to Luzon-wide lockdown

PHILIPPINE on-demand service company MyKuya reported a 300% increase in service demand last week as Luzon is under enhanced community quarantine, including getting more than 500 job applications because of the coronavirus disease 2019 (COVID-19) pandemic, according to the company’s founder.

“Because of the growing threat of COVID-19, Filipinos in Metro Manila had to quickly confine themselves to their homes. Unfortunately, most still lack basic supplies, such as food, water, and sanitation items. Many of these people are now turning to MyKuya to get help with whatever they need,” Shahab Shabibi, founder of MyKuya, said in a statement on March 18.

In a separate email interview, Mr. Shabibi said they saw service bookings increase by 300% compared to the prior week, with grocery delivery occupying 60% of job bookings and “a considerable chunk of the remaining 40% is for messenger services & shopping.”

The three-year-old company functions via an app that helps users hire people and services from “standing in line for you to pay the bills, grabbing something in particular for you from the stores, or even just simply cleaning your home,” according to the release.

They claim to provide said services “in two minutes or less.”

Mr. Shabibi also said the app has been able to provide work for people who are left jobless because of the lockdown and that they were processing more than 500 applications on the app last week.

MyKuya partners with manpower agencies, service providers, and staffing companies that “train, equip, and manage” the employees. Individuals wanting to work for MyKuya can sign up with said partners or the company will recommend a partner for them.

To date, Mr. Shabibi said they have onboarded 5,000 individuals.

“It’s unfortunate that it had to happen this way, but this story is directly in line with MyKuya’s aims to create jobs for millions of Filipinos. With the values of bayanihan and nation-building in mind, we’ve always been about creating real livelihood opportunities for people here in the Philippines. It’s actually our goal to create 1 million jobs by 2022,” said Mr. Shabibi.

“Over the coming weeks, MyKuya will stand ready to take more of the recently laid off contractors on as service providers. For them, COVID-19 is as much an economic pandemic as it is a biological one: The financial consequences of not having regular income for even as little as a week — to say nothing of a full month or longer — can be devastating for themselves and their families,” he added.

The company is also taking care of the health of its workers by providing them with masks, sanitizers, and alcohol, via their partners. — Zsarlene B. Chua

RCBC closes offer of two-year peso bonds

RIZAL COMMERCIAL Banking Corp. (RCBC) closed its offering of two-year fixed-rate bonds ahead of schedule as orders reached more than double its P3-billion program.

RCBC said in a disclosure on Wednesday that it has closed its bond offer, which started last Monday and was initially set to run until March 27.

“RCBC’s fourth foray into the peso bond market was met with strong demand from investors, allowing the bank to raise more than its target size of P3 billion,” the bank said.

RCBC did not give an exact figure for the funds raised from the offer. It said proceeds from the offering will be used to support its asset growth and other general purposes as well as refinance its maturing liabilities.

“The bank decided to shorten the public offer period in order to provide sufficient time for the submission of the documentary requirements in light of the logistical challenges given the enhanced community quarantine brought about by COVID-19 (coronavirus disease 2019). This is in line with RCBC’s commitment to restore normalization in the capital markets and support business activity despite current execution challenges,” it added.

The bonds will be issued at a coupon of 4.848% per annum and are set to be listed on the Philippine Dealing and Exchange Corp. on April 17.

They were offered in denominations of P100,000 and increments of P10,000 thereafter.

The bonds comprise the fourth tranche of RCBC’s P100-billion bond and commercial program

The sole lead arranger and bookrunner for the bond issuance was the Hongkong and Shanghai Banking Corp. (HSBC) while RCBC Capital Corp. served as the financial advisor. Together, HSBC and RCBC were selling agents for the bonds.

In 2019, RCBC’s net income climbed by 25% to P5.4 billion on the back of the strong performance of its core business, high margins, strong trading gains, and higher fee-based income.

Its revenues also grew by 35% to P35.9 billion, buoyed by growth in interest income from loans and receivables.

RCBC’s shares closed at P16.90 apiece on Wednesday, up by 40 centavos or 2.42% from the previous day’s finish. — L.W.T. Noble

JoyRide offers delivery services

MOTORCYCLE ride-hailing firm JoyRide announced on Wednesday that it now offers delivery services.

JoyRide (We Move Things Philippines, Inc.) said this initiative aims to help its bikers and communities amid the government-imposed community quarantine.

The announcement also came after the pilot run for motorcycle taxis in Metro Manila, Metro Cebu, and Cagayan de Oro officially ended last Monday.

“The public can use the JoyRide app in Metro Manila and Cebu for urgent delivery needs starting March 25 at 6 a.m.,” the motorcycle taxi firm said in a statement.

It said the allowed dimension of an item is 17 x 15 x 10 inches, weighing 12 kilograms maximum.

“Items that can be delivered are food, drinks, medicine, clothing, groceries, parcels and documents which are insured up to P2,000,” JoyRide added.

Its rival Angkas (DBDOYC, Inc.) has also launched its own delivery service to help its bikers.

Angkas will not take any commission from the said initiative.

The Transportation department has said its technical working group will discuss the fate of the motorcycle taxi pilot run after the month-long quarantine period imposed in the entire Luzon island. — Arjay L. Balinbin

What were the best-paid jobs of 2018?

What were the best-paid jobs of 2018?

How PSEi member stocks performed — March 25, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, March 25, 2020.


PSEi returns to 5,000 level on BSP’s RRR cut

By Denise A. Valdez, Reporter

THE MAIN INDEX broke into the 5,000 level on Wednesday as investors celebrate the central bank’s reserve ratio cut, which is seen to help address the economic impact of the coronavirus disease 2019 (COVID-19) pandemic.

The 30-member Philippine Stock Exchange index (PSEi) rose 253.49 points or 5.31% to close at 5,027.76 on Wednesday. The broader all shares index climbed 117.18 points or 3.97% to 3,065.13.

“The local market’s rally today was primarily due to the BSP’s (Bangko Sentral ng Pilipinas) 200 basis point RRR (reserve requirement ratio) cut which will inject more liquidity into the economy as it fights the impact of the COVID-19 spread,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message on Wednesday

“The BSP has been utilizing its arsenal lately to mitigate the effects of the coronavirus on the economy from the aggressive policy rate cut, to the buying of government securities, to the RRR reduction. Investors are appreciating this,” he added.

As the Philippines projects as much as a 0.6% contraction in the economy due to COVID-19, the BSP has been rolling out monetary stimulus to help cushion the impact of the fall.

On top of local developments, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the rise in the PSEi was also driven by optimism in US markets.

“Philippine shares soared as investors bet US lawmakers would deliver soon a stimulus bill to rescue the economy from the damage caused by the coronavirus and shutdowns designed to stop its spread,” he said in a mobile message.

US senators and officials in US President Donald Trump’s administration have reached an agreement on a massive economic stimulus bill to alleviate the economic impact of the coronavirus outbreak, White House official Eric Ueland said on Wednesday.

Wall Street jumped on Tuesday, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices increasing 11.36%, 9.38% and 8.12%, respectively.

Back home, all sectoral indices ended in green territory on Wednesday. Holding firms gained 265.11 points or 5.63% to 4,967.76; property rose 135.80 points or 5.36% to 2,667.26; financials added 54.93 points or 4.97% to 1,158.80; industrials improved 247.10 points or 4.29% to 5,999.63; services increased 38.49 points or 3.73% to 1,069.03; and mining and oil climbed 110.68 points or 2.8% to 4,057.44.

Value turnover stood at P8.30 billion on Wednesday with 929.07 million issues switching hands, up from Tuesday’s P5.09 billion with 565.34 million issues.

Advancers beat decliners, 158 against 44, while 29 names ended unchanged.

Net foreign selling, however, increased to P1.67 billion from P1.05 billion on Tuesday. — with Reuters

Peso weakens versus the dollar as oil prices correct

THE PESO depreciated against the greenback on Wednesday as oil prices corrected and due to dollar demand from corporate clients.

The local unit ended at P51.14 per dollar yesterday, weakening by 24 centavos from its P50.90 close on Tuesday, according to data from the website of the Bankers Association of the Philippines.

The peso opened the session at P50.85 per dollar. The currency’s weakest showing for the day was at P51.27, while its strongest was at P50.80 versus the greenback.

Dollars traded climbed to $642.6 million on Wednesday from the $563.9 million recorded on Tuesday.

A trader said corporate demand was a major factor in currency trading on Wednesday.

“Dollar weakened after lunch but for some reason, the peso ended weaker, partly on corporate demand as they start to fuel it up during this period,” the trader said in a phone call.

Based on historical trends, the trader said corporate demand starts to rise towards the second quarter as clients tend to be more “quiet” at the start of the year.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the weaker peso came after gains in oil prices.

“The peso exchange rate closed weaker, partly due to some healthy upward correction in global oil prices,” Mr. Ricafort said in a text message.

Reuters reported that oil prices saw gains for a third session on Wednesday, powered by hopes that Washington could soon approve an aid package to mitigate the impact of the pandemic.

US crude was at $25.24 per barrel early in the session and was at $24.82 per barrel, up by 3.4$ or 81 cents as of 4:12 GMT.

Meanwhile, Brent crude was trading at $27.90 a barrel, up by 2.8% after rising to a high of $28.29.

Oil prices have fallen by about 45% so far in March as demand weakens worldwide with more lockdowns imposed to arrest the spread of coronavirus disease.

The White House and Senate have agreed on the $2-trillion stimulus package that would include direct subsidies for Americans as well as benefits for some small businesses that have been hit by the pandemic.

The virus has already sickened more than 420,000 around the world and caused the death of over 18,000.

In the Philippines, infected patients rose to 552 as of Tuesday while the death toll was at 35.

For today, the trader expects the peso to move around the P50.85 to P51.30 levels, while Mr. Ricafort gave a forecast range of P50.95 to P51.25. — L.W.T. Noble with Reuters

Agri dep’t seeks extra P32-B budget to ensure food security

THE Department of Agriculture (DA) has requested a P32 billion supplemental budget to ensure food security for the duration of the COVID-19 outbreak.

The program is known as Ahon Lahat, Pagkaing Sapat Kontra sa COVID-19 (ALPAS COVID-19).

Agriculture Secretary William D. Dar said that the program will offer support for farmers and other components of the food value chain.

“With this pandemic, there is tightening of global food supply and we know that when there is not enough food, disorder is probable. While improving our food adequacy level, we should aim for food security. If no action is done, the threat of hunger is as real as the threat of the virus,” Mr. Dar said.

A total of P8.5 billion will be allocated to the Rice Resiliency Project.

Its components include P2 billion for fertilizer; P3 billion in support for advance planting in areas not covered by the Rice Competitiveness Enhancement Fund in the form of seed, fertilizer, mechanization and credit; and P3.5 billion to expand rice growing areas with good irrigation.

Some P7 billion will go to the National Food Authority to increase procurement of palay, or unmilled rice.

“We need to improve efficiencies in production and enhance projects and activities to ensure affordability and availability of food supply,” Mr. Dar said.

He reiterated that the DA will ensure the supply of food from production to consumption for locked-down communities. — Revin Mikhael D. Ochave