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College of Saint Benilde edges tough EAC, 69-66

By Michael Angelo S. Murillo
Senior Reporter

THE COLLEGE of Saint Benilde Blazers survived a tough challenge from the Emilio Aguinaldo College Generals in their National Collegiate Athletic Association Season 95 debut on Tuesday, holding on to a narrow 69-66 victory at the FilOil Flying V Arena in San Juan City.

Had its way for much of the contest, CSB received a spirited fight-back from EAC down the stretch but did just enough to keep its head afloat to book its first victory in the brand-new season of the country’s oldest collegiate league.

The game got off to a competitive start with both teams making runs and counter-runs.

CSB, however, was able to create some separation, led by Justin Gutang, as the opening quarter drew to a close, building a 17-12 advantage.

The Blazers maintained the momentum to begin the second quarter, outscoring the Generals, 7-2, in the first three minutes to stretch their lead to 10 points, 24-14.

JC Luciano and JP Maguliano tried to rally the Generals back and make up for lost ground but saw themselves continue to trail, 37-23, at the half.

Recognizing that the game was slipping from their hands, the Generals came out the third quarter with more life.

They were able to get some early traction only to find a Gutang-led Blazers standing its ground.

The score was at 44-29, and CSB on top, by the 5:43 mark of the frame before eventually settling at 57-44 heading into the fourth quarter.

With control of the much, the Blazers went for an early finish, extending their lead to 17 points, 65-48, with just three minutes lapsing as guard Unique Naboa and center Kendrix Balgica started to make their presence felt.

But EAC was undeterred and on the lead of Jethro Mendoza they went on an 11-0 run in the next two minutes to trim its deficit to a single digit, 65-59.

The Generals kept pushing forward, down by just two points, 67-65, entering the last two minutes.

Both teams had their chances to advance their respective causes as time wore down.

A split on the charity lane by Jimboy Pasturan made it a three-point lead for CSB, 68-65, with eight seconds remaining.

EAC came two within two points, 68-66, after Marwin Taywan hit one of two free throws with three seconds left.

The Generals were forced to foul off a CSB timeout but Pasturan once again split his charities, opening the door still for the Generals, 69-66, with 2.4 seconds to go.

They set up for a three-point shot to tie the contest but Maguliano’s desperation heave failed to hit the mark, preserving the win for the Blazers.

Pasturan led CSB with 19 points with Gutang adding a double-double of 17 points and 12 rebounds in the win.

The Blazers played sans key cogs Yankie Haruna and Clement Leutcheu who were out because of injuries.

For EAC it was Maguliano who top-scored with 18 points, followed by Mendoza with 16.

Top clubs Kaya, Ceres in marquee PFL match

CHAMPION clubs Kaya FC-Iloilo and Ceres-Negros FC go into battle in the lone midweek fixture of the Philippines Football League today at the Philippine Football Federation National Training Center in Carmona, Cavite.

The number one and two teams currently in the PFL, both Kaya and Ceres are out to book a victory in their scheduled 3:30 p.m. match to shore up their spots at the summit of the standings.

Copa Paulino Alcantara champion Kaya (5-1-0), league-leading with 16 points, saw its unbeaten run in the PFL come to an end on July 6 after being held to a nil-nil draw by Green Archers United FC.

It was an outcome that the team said it could have avoided had it showed more spirit to go for the finish and take advantage of its chances.

Nonetheless, Kaya hopes to address its shortcomings in today’s game.

Defending league champion Ceres (4-1-0), meanwhile, has been on a tear since coming back from its campaign in the AFC Cup, winning back-to-back matches to slowly creep its way up the standings where it is now second with 13 points.

The latest of the win of the “Busmen” was at the expense of Green Archers United, 4-3, on July 3.

Goals each from OJ Porteria, Stephan Shrock and Bienvenido Maranon and an own goal by GAU made the win possible for Ceres.

The Kaya-Ceres match will be shown live over pfltv.ph and Facebook live. — Michael Angelo S. Murillo

Stacked Aug. ONE Manila event further solidifies

AN already-stacked Manila card in August of ONE Championship got loaded some more with recent additions and changes made by the promotion this week.

In an announcement on Monday, ONE shared “tweaks” for its “Dawn of Heroes” event on Aug. 2 at the Mall of Asia Arena, making it all the more the biggest fight card for ONE in the Philippines to date.

Filipino flyweight contender Danny “The King” Kingad, ONE announced, will now battle Australian Reece “Lightning” McLaren in the flyweight grand prix semifinals.

Mr. McLaren takes the place of Kairat Akhmetov of Kazakhstan, who was scheduled to face Mr. Kingad before a reported calf injury sidelined him.

Dawn of Heroes will mark the first time that Messrs. Kingad (10-1) and McLaren (12-6) will face each other in ONE.

Mr. Kingad earned a spot in the semifinals after emerging victorious over Japanese Senzo Ikeda in the grand prix quarterfinals in March in Japan.

Mr. McLaren, meanwhile, lost to Mr. Akhmetov in the quarters but now has a chance to redeem himself.

Also now part of Dawn of Heroes is former world flyweight champion Geje “Gravity” Eustaquio of the Philippines, who is on board in a flyweight world grand prix alternate bout against Japanese Yuya Wakamatsu.

Mr. Wakamatsu was supposed to face Mr. McLaren until the latter was called up to take on Mr. Kingad.

Former champ Eustaquio (12-7) bounced back in his last fight, beating Korean Kyu Sung Kim in May, after losing his belt against Brazilian Adriano Moraes in January.

Mr. Wakamatsu (10-4) is coming off back-to-back losses, the last one versus mixed martial arts legend Demetrious “Mighty Mouse” Johnson in the flyweight grand prix quarterfinals in March.

Another add-on is former ONE world title challenger Mauro “The Hammer” Cerilli of Italy against ONE Championship newcomer and former Ultimate Fighting Championship fighter Arjan Bhullar of India in a heavyweight contest. These latest additional offerings fortify Dawn of Heroes which is headlined by the ONE world featherweight championship fight between champion Martin “The Situ-Asian” Nguyen of Australia versus Kyomi Matsushima of Japan, itself a recent addition to the event.

Co-headlining is the ONE flyweight muay thai world title fight between reigning champ Jonathan Haggerty and challenger Rodtang Jitmuangnon.

Other fights have former lightweight champion Eduard “Landslide” Folayang of the Philippines against American Eddie “The Underground King” Alvarez; Mr. Johnson versus Japanese Tatsumitsu Wada in a flyweight grand prix semifinal; and Filipino Honorio “The Rock” Banario against Russian Timofey Nastyukhin in a lightweight grand prix semifinal. — Michael Angelo S. Murillo

Halep ends wayward Gauff’s Wimbledon dream

LONDON — Coco Gauff’s dream Wimbledon run came to an abrupt end on Monday when the consistency of seventh seed and former world number one Simona Halep proved a step too far for the 15-year-old American, who went down 6-3 6-3 in only 75 minutes.

After stunning Venus Williams then saving two match points en route to beating Polona Hercog last week, Gauff was suddenly the hottest ticket in town but she was always going to find it tough against Halep, last year’s French Open champion and the first top-10 opponent she had ever faced.

Bidding to become the youngest Wimbledon quarter-finalist since fellow-15-year-old Jennifer Capriati in 1991, Gauff was by no means overawed, keeping the crowd entertained with some crashing backhands and athletic recoveries, but there were also far too many simple errors that the American was never going to get away with at this stage of the tournament.

Halep, who had given an indication of her form when dismissing the dangerous Victoria Azarenka in the last round, initially struggled, including in the third game where she sent down three successive double faults.

But Gauff was even more inconsistent, mixing up some superb shots with some pretty awful ones.

Halep then began to find her range and quickly realized that she did not need to take too many risks, keeping the ball in play, accepting that the occasional winner would whistle past her but more often winning the point via a Gauff mistake.

That was enough to take the first set and the pattern continued, with more emphasis in a quickfire second.

MEDICAL TREATMENT
Gauff, who needed courtside medical treatment between the sets, started to snatch at her shots and became too loose while Halep did what she needed to as the American racked up a total of 45 unforced errors in the match.

Gauff did save two match points when serving at 5-2 down but this time it was only a temporary reprieve as Halep finished her off in the next game.

The Romanian will now face China’s Shuai Zhang in the quarterfinals and, with the bottom half of the draw looking wide open, Halep has a great chance of going on to make the final for the first time. “I am really happy I can play in the quarterfinals again, it’s one of my favorite tournaments,” Halep said.

“I am not comparing myself with last year, that was the best because I won the French Open, but I want to win every match I play.”

Gauff, who came to the tournament via a qualifying competition wildcard and ranked 313, can also expect to be challenging in the second week again in the future, and has won a legion of new fans.

“Your journey is far from over,” tweeted tennis great Billie Jean-King. “Looking forward to watching your future successes on and off the court. #Big fan.” — Reuters

Thunder ship Grant to Nuggets, Westbrook talks ongoing

LOS ANGELES — Russell Westbrook’s 11-year run in Oklahoma City could be coming to a close as the Thunder shift into rebuilding mode.

The latest move from Thunder general manager Sam Presti came Monday, when forward Jerami Grant was traded to the Denver Nuggets for a 2020 first-round pick.

Moving Grant saves the Thunder $39 million, according to ESPN.

Grant, 25, averaged 13.6 points, 5.2 rebounds and 1.3 blocks in 80 games (77 starts) for the Thunder last season.

On the heels of sending 2019 MVP finalist Paul George to the Los Angeles Clippers for five future first-round picks and Danilo Gallinari and guard Shai Gilgeous-Alexander, Presti opened talks with Westbrook and his representatives regarding the 30-year-old All Star’s future with the franchise.

The Thunder received three unprotected first-round picks from the Clippers — 2022, 2024 and 2026 — and two future Miami Heat first-round picks: a 2021 unprotected selection and the 2023 lottery protected pick.

Westbrook has four years and $170 million left on his contract. The Houston Rockets, Miami Heat, Detroit Pistons, Orlando Magic, Minnesota Timberwolves, New York Knicks and others are expected to have high interest in acquiring Westbrook, per ESPN.

Westbrook, an 11-year veteran, has spent his entire career in Oklahoma City, averaging 23.0 points, 7.0 rebounds and 8.4 assists. He won the 2017 NBA MVP Award.

George shunned the Los Angeles Lakers in free agency last July to re-sign with the Thunder and form a 1-2 punch with Westbrook.

If the Rockets can find the right combination of draft compensation and contracts, a Westbrook deal to Houston would reunite former Thunder teammates. The Rockets acquired James Harden, a sixth man in Oklahoma City on a team fronted by Kevin Durant and Westbrook, prior to the 2012-13 season after the Thunder opted not to offer Harden a maximum contract.

Among complications to resolve before that trade could be completed is the contract of Chris Paul, who is due $38.5 million for next season and has three years remaining on his contract.

Minnesota was in hot pursuit of D’Angelo Russell before the Nets sent him to the Golden State Warriors via sign-and-trade.

The Knicks have trade assets that would seem to meet Oklahoma City’s rebuild. However, RJ Barrett, the third overall pick in the 2019 draft, could not be part of any trade until Dec. 15. — Reuters

A case for the Baby Beast

Friends of mine on social media would attest that I am one in supporting the inclusion of Philippine Basketball Association rookie CJ Perez in the Gilas Pilipinas roster competing at the 2019 FIBA Basketball World Cup in China beginning next month.

On Facebook, I have written a number of times that the “Baby Beast” is a good addition to Gilas on the strength of his tremendous motor, athleticism and strength, which would be an asset to the national team.

Back in 2016 I also wrote something like this for big man Raymond Almazan, for him to be included in the then Tab Baldwin-handled Gilas team for what he could bring to the frontline of the squad.

Baldwin was able to tag him along and Almazan has been delivering since for the nationals every time he is called up for duty.

And I see the same for Perez, who plays for Columbian Dyip in the PBA.

Just like the “Beast” Calvin Abueva, from which his moniker was taken from, Perez has the ability to affect the complexion of games on both ends of the court when he takes the floor.

But unlike Abueva, who plays bigger than his size, Perez plays just right for his built – around 6’2” and solid for the small forward and guard positions – making it easier for coaches to match him with opponents.

He, too, does a better job, in my opinion, in creating shots for himself and his teammates with his athleticism as attested by his impressive “rookie” numbers in the pros of 23 points, seven rebounds, 3.7 assists and 1.9 steals in the ongoing PBA Commissioner’s Cup, an import-laden tournament at that.

Perez does not have the kind of spunk that Abueva has, but it could be well and good as the latter sometimes have the tendency to go overboard with it.

One thing that stands out for me with the former Lyceum star and National Collegiate Athletic Association most valuable player is his motor.

It is continuous motion for him, whether on offense or defense, giving him the ability to make things happen to good results most of the time.

You do not necessarily have to create a play for him as his movements would allow him to be in positions to get his points while on defense he plays the passing lanes well and good in providing help defense.

His versatility is also worth noting, more so with the likes of Jayson Castro, Scottie Thompson and Ray Parks Jr. deciding to skip the World Cup.

With his style of play, he can play multiple positions, giving Gilas coach Yeng Guiao flexibility in using him during games.

He also shows a take-charge guy mentality, honed by his days with the Pirates in college and now with the Dyip in the PBA, and is not afraid to rise to the occasion.

Classic case of this was last Monday during Gilas’ tune-up game with import-loaded Mighty Sports, which is preparing for the Jones Cup later this week.

With Mighty Sports leading by three points, 85-82, with less than 20 seconds to go in the game, Perez stepped up to the plate and drained the game-tying triple with 14 seconds left. The game eventually ended in a draw at 85-all.

At the World Cup in China, the Philippines is surely to have a tough time against the best in the world and will need every boost it can get.

Perez definitely can help and is worth serious consideration and pickup. Make it happen, Gilas.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@bworldonline.com

The Raptors, champions yet pawns

The Raptors knew they were taking a big risk when they pulled the trigger on the trade for Kawhi Leonard a week short of a year ago. For one thing, he was set to become a one-season rental; free agency in 2019 beckoned, and his camp made no secret of his preference to play in native California. For another, they needed to give up their identity in the process; the Spurs wanted another superstar, and specifically DeMar DeRozan, who, as their ninth overall pick in the 2009 draft, relished being the face of a franchise otherwise lacking in pull. Giving him up meant redefining the unique culture they had built and fortified; yes, they ran their affairs professionally, but they were a family first and foremost, and they took care of their own.

For the Raptors, DeRozan’s utter absence of wanderlust was especially critical as they made a name for themselves in the National Basketball Association. No big name hitherto seemed to view Toronto as a worthy destination, with cross-border concerns — among them distance from loved ones, prohibitive income taxes, and temperate weather — hanging like an albatross around its neck. Meanwhile, draftees who became bona fide headliners appeared to want to move elsewhere as soon as possible. Yet, there he was proudly trumpeting his love of city and colors. In hockey nation, he held his head high for red-and-black hoops, and how.

In dealing for Leonard, the Raptors effectively sent the message that winning trumps everything — even relationships built over time, effort, and no small measure of affection. It’s why DeRozan was heartbroken and bitter when he learned of the news; likewise, it didn’t help that front-office head Masai Ujiri just gave him assurances that he would continue to be part of their future. Still, on the basis of improving the principal product on the court, they were right to go for the swap. The roster, while boasting of continuity, had reached its ceiling and needed a makeover. And what better way to reboot than truly compete for the title?

Well, the Raptors didn’t just go on to contend. They went all the way. And if only because the Larry O’Brien Trophy sits on their mantel, their bid for Leonard cannot but be deemed an unqualified success. If nothing else, it highlighted how well they went about their business; they had the vision to guide them, the strategy to see their objectives through, the gumption to gamble, the foresight to stick to their guns, and the competence to make sure all fell into place. As much as they wanted to win, they exercised extreme caution with their new star; through the regular season, they put in place a load management program that followed the league’s Player Resting Policy and ensured he would be fresh for what they figured to be a deep playoff run. And, ultimately, they were rewarded with the hardware.

To be sure, the Raptors benefited from sheer good fortune countless times during their journey to the top. They were close to being eliminated by the Sixers in the second round, for instance, with four bounces on the very last shot of the series literally deciding their fate. They ran against the decimated Warriors in the Finals. Then again, there can be no discounting the fact that they placed themselves in the best position to benefit from twists of fate. They went all in last season, and it paid off handsomely. They managed to render irrelevant their past as whipping boys of LeBron James by establishing their present as dynasty killers.

There was still the future to secure, though, so the Raptors buckled down to work pronto. The short turnaround time from celebration to free agency afforded them no rest. And, for all the strides they made with Leonard, they knew they were going to negotiate from a position of weakness. All the signs were there from the outset, and even while they were in the midst of meeting their date with destiny. He aimed to go home, and only an outstanding presentation could sway him into changing his mind. And in prepping for their pitch, they asked him for only one thing: that they be the last to lay their arguments.

In retrospect, there was nothing the Raptors could have done differently. It didn’t matter that they cultivated their relationship with him, that they took care of his body in a way not even the highly respected Spurs could, that they — and just about everyone else north of the border, really — treated him like royalty. Leonard was leaving, period. He was his famously quiet self, but others in his camp telegraphed his intentions clearly enough. Besides, the timing wasn’t right; he angled for the maximum contract possible, and the five-year, $190-million offer they had to put on the table eliminated any one-plus-one arrangements that could have coincided with the existing deals of other vital cogs.

The writing was on the wall. Why would Leonard eschew the opportunity to burn rubber close to sunny shorelines when re-upping with the Raptors for another half decade would mean just another year of contention? The likes of Kyle Lowry, Serge Ibaka, and Marc Gasol were all on expiring deals. Nonetheless, they gamely made their presentation. By all accounts, it was nothing short of outstanding. And, by all accounts, it didn’t produce the desired effect. They got the impression that he had already made up his mind.

Perhaps Leonard didn’t have the heart to tell the Raptors they were a poor third early on. Perhaps he didn’t want to; he needed them to keep having a skin in the game because of their role as motivators on a deal he was pushing for. Like the Clippers, they knew he wanted to play with Paul George, thusly requiring them to reach out to the Thunder for the latter’s availability. Unlike the Clippers, they didn’t receive any assurance that netting the six-time All-Star would net him as well. And as the bidding war grew to ridiculous proportions, Ujiri had no choice but to pull out.

Make no mistake. The Raptors would still have thumbed up the deal if they knew then what they know now. They’re defending champions of the NBA, and while they will most definitely not be this time next year, they will forever treasure their experience as the best of the best. How much it will actually cost them remains to be seen. After all, they did lose a piece of themselves in making winning their only priority. It’s why DeRozan continues to seethe. It’s why Leonard had no qualms leaving them and, worse, using them as pawns in order to get his way. And it’s why they’ll be hard-pressed to move on.

(Tomorrow: The Thunder, shell-shocked and yet fortunate.)

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Suntrust Asmara: A gateway to the best of Quezon City

BUYING a home is one of the most significant financial decisions every individual will ever make. And the importance of location cannot be overemphasized in this matter. In fact, the “buzzwordy” catchphrase in real estate to stress its importance — “Location, location, location” — never goes out of style, reminding home buyers that they can make a house revamp anytime but can’t change a bad location again and again.

Location is not only about the address. It represents the community, infrastructure, developments, and the people residing in the area. This is why it is highly important to keep these factors in mind before purchasing a property.

According to online property marketplace Lamudi, home buyers — in addition to amenities that a property entails — should also consider a location close to hospitals and markets, as well as schools and workplaces of the family members.

Residences with all such features are usually located in highly developed cities in the country, and Quezon City is one of these. Over the years, the city, according to Lamudi, has responded well to the environmental challenges of urban development alongside strict security measures.

It is no secret that Quezon City is a home to some of the country’s leading academic institutions, hospitals, health and wellness facilities, ecological and public parks, and diverse religious sites. It is also a haven for shopaholics, food lovers, bar-hoppers, and night owls with its wide variety of shopping malls, shops and restaurants.

In terms of accessibility, Quezon City features major highways, thoroughfares, and tertiary roads, while more infrastructure projects are under way. Aside from the Manila Metro Rail Transit System Line 7 (MRT-7), which will run from North Avenue in Quezon City to San Jose del Monte in Bulacan, the construction of the Metro Manila Subway Project is ongoing.

According to Colliers International Philippines, Quezon City will greatly benefit from the planned subway as seven of the 13 stations will be developed within the city. It is expecting residential land values around the stations rising by at least two-fold while commercial land values by at least three-fold from the start of construction to full operation of the subway.

Offering a gateway to the ever-increasing opportunities that Quezon City presents is Suntrust Asmara. With its fresh take on modern living, Asmara — an Indonesian word that means “love” — is set to be a wonderful enclave that will give its future occupants the comforts and conveniences of a home amid urban jungle.

Suntrust Asmara is a residential development by Suntrust Properties, Inc. comprised of three towers and a total of 1,975 living units. It features four unit types – studio, one-bedroom, two-bedroom and three-bedroom units – with floor areas ranging from 26.7 square meters (sq.m.) to 56.7 sq.m.

The first tower of Asmara was already completed last year while the second and third towers are now nearing completion.

Future homeowners of Suntrust Asmara can enjoy the luxury of a comfortable lifestyle with its finest amenities. These include lap and kiddie pools, lounge areas, pool deck, kid’s play area, a Zen garden, jogging paths, fitness gym, gazebo-type multipurpose area, function rooms, sky garden and a reception lobby for every tower.

Since the residential community of Asmara is strategically located along E. Rodriguez, Ave., future residents will have easy and convenient access to world-class St. Luke’s Medical Center, which is just a thrown stone away from the site, while other hospitals, including De Los Santos Medical Center, Medical City, National Children’s Hospital, Veterans Memorial Medical Center and the East Ave. Medical Center, could be reached within minutes.

Educational institutions such as Trinity University of Asia, St. Joseph’s College, St. Paul University and De La Salle Greenhills are also just a short distance from Asmara, as well as shopping centers like Araneta Center, Greenhills Shopping Center, Fisher Mall and SM City Sta. Mesa.

Food cravings will never be a problem since branches of some well-loved fast food chains and restaurants are just around.

Future residents of Asmara can also explore the fusion of different cuisines offered by restaurants and food shops located along Tomas Morato Ave., which is just 10 minutes away from Asmara. The famous street is also the perfect go-to-place for those looking to enjoy the night with its long strip of hangout spots.

To learn more about Asmara, visit Suntrust’s website.

Analysts see IPO drought persisting

By Arra B. Francia
Senior Reporter

COMPANIES looking to raise funds via initial public offering can still be expected to stay on the sidelines for much of this year, as they await better market conditions amid easing inflation and improving global trade, analysts said in recent interviews when asked for their assessment.

The Philippine Stock Exchange ended the first six months of 2019 without any maiden share offer, the last being property and construction firm D.M. Wenceslao & Associates, Inc. on June 29, 2018.

Several firms have intended to debut on the stock market this year, including canned fruit manufacturer Del Monte Philippines, Inc.; Taiwan’s Cal-Comp Technology (Philippines), Inc.; food cart business Fruitas Holdings, Inc. and budget carrier Philippines AirAsia, Inc.

Coconut product manufacturer Axelum Resources Corp. has also filed for a P7.7-billion IPO potentially within the year, as well as members of the Allied Care Experts group to finance construction of medical facilities in Bohol as well as in General Santos, Dumaguete, Iloilo, Malolos and Butuan cities.

“I think that many would-be issuers are still reeling from last year’s tumble. While the market did recover in November 2018 and peaked in February 2019, the market is actually in a consolidation phase,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a mobile phone message.

The benchmark PSE index (PSEi) hit a low of 6,843.83 on Nov. 13 last year and crawled back to the 7,000 level in succeeding months. The main index ended at 8,117.94 last Friday, and increasingly ventured north of the 8,000 line starting last month.

Regina Capital Development Corp. Equity Analyst Rens V. Cruz II noted how the Philippine market was impacted by several local and overseas factors, dissuading IPO planners in the first half.

“Overseas, we got the then-looming tariff skirmish between US and China, lending some concerns on emerging markets; then, there’s news of the MSCI rebalancing that will shift towards China A shares, adding worries for Philippine prospects,” Mr. Cruz said in a text message.

He noted some sectors are still reeling from lingering effects of fast inflation, which had hit a nine-year-high 6.7% in September and October 2018 before gradually easing to within the central bank’s 2-4% target band.

The overall rise in prices of widely used goods averaged 3.4% last semester — especially in the wake of June’s 2.7% that was the slowest clip in nearly two years — compared to 4.3% a year ago.

“A positive general market condition — translating to a higher possible price setting — will always be the number one consideration for any private entity before going public,” Mr. Cruz said.

PNB Securities’ Mr. Lisbona also called easing inflation a “silver lining” for the local market.

“The silver lining for us is that inflation has trended lower and that monetary authorities have taken an accommodative/stimulative stance which we observe has had a positive effect on the market,” Mr. Lisbona said, referring to the central bank’s 25-basis-point cut in benchmark interest rates and a phased 200 bp reduction in banks’ reserve requirement ratio (RRR) that will be completed on July 26 after a cumulative 175-bp hike in rates and 200 bp RRR cut last year.

The central bank adopted in its June 20 policy review “[a] prudent pause… to observe and assess the impact of prior monetary adjustments.”

For Philstocks Financial Inc. Research Associate Piper Chaucer E. Tan, companies will be encouraged to debut on the market if the PSEi sustains the 8,000 level.

“We may see an IPO in the third or fourth quarter… The reason why companies defer an IPO is they feel they are entering into a bad economy but they are a fundamentally good company. So even if the company has good prospects, their share price will go down,” Mr. Tan said on the sidelines of the company’s media briefing last week.

GHOST MONTH APPROACHES
Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro said via text that many firms remain on wait-and-see mode, despite a better demand outlook amid easing inflation.

“I believe there might be a chance in the second half of the year for some IPOs after the ghost month as we approach the Christmas season given investors are bullish for the prospects of next year,” Mr. San Pedro said, referring to Aug. 1-29 this year when many investors can be expected to hold off major decisions in observance of this annual Chinese tradition.

Meralco bills down for 3rd month in July

HOUSEHOLDS in Metro Manila and surrounding areas can expect their electricity bills to go down for the third straight month in July, as Manila Electric Co. (Meralco) announced a P0.1068 per kilowatt-hour (/kWh) drop in overall rate as a slight increase in generation charge covering the June supply month was offset by a fall in other costs.

In a statement on Monday, the country’s biggest electricity distributor said a typical household consuming 200 kWh could see a reduction to P9.9850/kWh this month from P10.0918/kWh in June or a P21.36 cut in the total monthly bill. Those using 300 kWh, 400 kWh and 500 kWh can expect reductions of P32.04/kWh, P42.72/kWh and P53.40/kWh, respectively.

“The third straight month of electricity rate decrease represents a total downward adjustment of around P0.57/kWh since May 2019,” the listed company said.

It said the generation charge for the month had slightly risen to P5.4227/kWh or by P0.0069/kWh from P5.4158/kWh because of higher charges from the Wholesale Electricity Spot Market (WESM).

However, WESM’s increase was offset by the lower charges of independent power producers (IPPs) and stable charges of power supply agreements (PSAs).

WESM charges rose by P1.8794/kWh because of tight supply conditions in the Luzon grid.

Meralco said plant capacity on outage increased while demand for electricity in the grid peaked at 11,344 megawatts (MW) in June. This resulted in the number of days on red alert, as declared by grid operator National Grid Corporation of the Philippines (NGCP), rose to five from two in May. Also, about a third of the days in June were under yellow alert. NGCP issues alert notices to warn about thinning power reserves. The share of WESM in Meralco’s supply requirements went down to 8.1%.

The cost of power from IPPs shrank by P0.2239/kWh mainly because of the stronger peso. Meralco said about 97% of IPP charges are dollar-denominated. Power charges from PSAs slightly increased by P0.0414/kWh. IPPs and PSAs accounted for 41.4% and 50.5% of the utility’s supply needs, respectively.

The transmission charge for residential customers in June dropped P0.0788/kWh largely due to lower ancillary service charges.

Taxes and other charges fell by P0.0349/kWh, Meralco said, adding that the reduction includes the P0.0731/kWh to comply with the Energy Regulatory Commission’s (ERC) order to implement a one-time decrease in rates.

The ERC earlier directed privately owned power distribution utilities to refund the amount on their unutilized regulatory reset cost, with corresponding interest, to their respective consumers. The cost represents expenses incurred in engaging regulatory experts or consultants when setting and updating electricity rates.

The rate in July also includes a rise in the universal charge-stranded contract cost at P0.0543/kWh to be recovered for 12 months, which was recently approved by the ERC.

Meralco said its distribution, supply and metering charges have remained unchanged for the past “48 months, after these registered reductions in July 2015,” adding that it does not earn from pass-through charges like generation and transmission charges. — VVS

Gov’t infrastructure spending rebounds in May

STATE INFRASTRUCTURE spending recovered in May, according to a report the Department of Budget and Management (DBM) released to media on Monday, citing in part projects of the Transport and the Public Works departments.

Data in the report showed that infrastructure and other capital expenditures increased by 5.9% to P61.5 billion in May from P58.1 billion a year ago, and recovered from April’s 56.9% contraction.

“The increase is credited to disbursements for foreign-assisted projects of the Department of Transportation and the Department of Public Works and Highways, as well for capital outlay projects under the Armed Forces of the Philippines Modernization Program,” DBM’s report read.

But the impact of the four-month delay in enactment of the 2019 national budget, which was slashed by P95.3 billion to P3.662 trillion when President Rodrigo R. Duterte signed it on April 15, could still be seen in the year-to-date data showing that infrastructure and other capital outlays dropped by 4.6% to P267.9 billion as of May from P280.8 billion in last year’s first five months.

Citing “preliminary data on allotment releases as of the fourth week of June,” DBM said the P112.5-billion total funds released last month “included big-ticket releases” like some P25 billion for the National Irrigation Administration’s programs and projects, as well as P21.7 billion for pension adjustment under the Defense department and P16.3 billion for second-half police pension.

Sovereign investors shun Europe for Asia, emerging markets

LONDON — Nearly three times as many sovereign investors plan to raise exposure to emerging markets rather than Europe this year as the continent’s attraction wanes due to slowing economic growth and rising political risk, a study by asset manager Invesco showed.

Europe is falling out of favor with sovereign wealth funds and central banks, with nearly one third of such investors dropping the amount of funding they set aside for Europe in 2018 and a similar number planning further decreases in 2019, the survey found.

“A large chunk of Europe has negative bond yields and growth forecasts are relatively low compared to emerging markets, so from an investment perspective its less attractive,” said Alex Millar, head of EMEA institutional at Invesco. “When we talk about the risks there is quite a lot of focus on euro zone politics and Brexit.”

The dovish stance of the European Central Bank and other major central banks in keeping the stimulus gates open have pushed European benchmark bonds ever deeper into negative territory, spurring a fresh hunt for yield.

European politics is also weighing on investor decision-making.

Britain’s exit from the European Union is influencing asset allocation decisions for 64% of sovereign investors, the survey found, while euro zone internal politics — deemed more uncertain with the rise of populist movements and new chiefs set to take over at the ECB and European Commission — was clouding investment decisions for 46% of sovereign investors.

As a result, only 13% of sovereigns plan on raising allocations to Europe, compared to a 40% for Asia and 36% to emerging markets.

Despite concerns about trade tensions between China and the United States, China’s perceived attractiveness as an investment destination over the next three years rose compared to the previous year, the survey found.

The annual report, which is based on interviews with 139 sovereign investors and central bank reserve managers with $20.3 trillion in assets, found bonds had overtaken equities to become the biggest asset class in portfolios, averaging 33%. This is up from 30% in 2018.

“Since we started the survey seven years ago we’ve seen a consistent trending down of fixed income allocations and a move towards moving that allocation more towards private markets. What’s interesting this year is that we’ve seen a noticeable step up in fixed income allocations,” said Millar.

“There was some volatility at the end last year so equities allocations dropped, but there was definitely a feeling that as they move later into the economic cycle they were increasing fixed income or the defensive nature of the policy.”

After a challenging year due to volatile equity markets, sovereign investors achieved returns of four percent in 2018 compared to nine percent in 2017, the survey found. — Reuters