How PSEi member stocks performed — March 3, 2020
Here’s a quick glance at how PSEi stocks fared on Tuesday, March 3, 2020.
PHL Feb. PMI rises amid broad ASEAN contraction — IHS Markit
IHS MARKIT said its Philippine purchasing managers’ index (PMI) was 52.3 in February, the highest level in Southeast Asia, and outperforming other economies whose supply chains were disrupted more severely by the coronavirus outbreak.
IHS Markit, an economic data provider, said Tuesday that the ASEAN region’s purchasing managers’ index rose to 50.2 last month from a 49.8 reading in January, its first gain in nine months which it described as “only fractional” due to declines in production and falling employment.
PMIs are considered leading indicators of future manufacturing activity because materials for processing must be ordered in advance. PMIs are typically organized around a scale of 50 points, with readings above 50 signalling expansion and those under 50, contraction.
The Philippine PMI performance in February, up from 52.1 in January, represents “the joint-fastest improvement in operating conditions since December 2018.” Previously, Myanmar had been the region’s top performer since February 2019. Myanmar posted a 49.8 reading last month from 52.7 a month earlier.
“At 49.8, the latest reading ended a survey record 15-month period of continuous improvement,” IHS Markit said.
Indonesia posted a “modest uptick” of 51.9 last month, expanding for the “first (time) in eight months.” Thailand posted a second consecutive contraction at 49.5 , while Vietnam’s 49 “signalled the first deterioration in the health of the sector since late 2015, amid reports” of disruptions stemming from the outbreak of coronavirus, formally known as Covid-19.
Malaysia’s PMI reading was 48.5 while Singapore’s downturn continued in February to 45.8, the lowest level in four months.
“(The ASEAN PMI reading improved as) new orders increased at the quickest rate since May last year, but only mildly. Falls in output and employment weighed on the headline figure, however, as production declined for the first time since last November and workforce numbers fell at the quickest rate for three months,” IHS Markit said.
It flagged the disruptions in supply chains caused by the Covid-19 outbreak, reflected in reduced buying activity by businesses and declining inventories.
In February, pre-production inventories marked their largest fall in four months while stocks of finished goods declined for the first time since August.
“The lack of output growth so far this year, coupled with renewed supply chain pressures, adds to concerns over whether the health of the sector can improve further,” Lewis Cooper, economist at IHS Markit, was quoted as saying.
“The next month’s data will provide a further indication of the effect of the coronavirus outbreak on ASEAN goods producers,” Mr. Cooper added.
Firms reported that costs continued to increase due to higher inflation, adding that these costs were not passed on to clients since selling prices remained broadly stagnant.
“Firms remained, on average, positive that output would increase over the coming year, but overall optimism slipped to a four-month low,” the report said.
Asked to comment, Security Bank Corp. Chief Economist Robert Dan J. Roces said February’s reading indicates that the country’s manufacturing sector demonstrated ”resilience… weather(ing) challenges” such as the US-China trade war last year, the eruption of Taal Volcano… and currently, the ongoing Covid-19 outbreak that continues to disrupt global supply chains and slow economic activity.
“However, the sector is not immune to economic headwinds, most especially from regional supply chain disruptions and indeed it will mirror the impact to manufacturing in the region; but we do expect it to still perform better relative to peers,” Mr. Roces added in an e-mail.
ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said the PMI report indicates some “interesting trends” including “idle supply chains in China” due to closed factories, while the Philippines and Indonesia posted “surprising improvements” in their readings.
“One common factor between the two is that they have relatively lower exposure to China’s global supply chain (as well as the other) characteristic shared between the Philippines and Indonesia, that food manufacturing comprises the bulk of activity,” Mr. Mapa said.
“We are hoping that this means that food production in both the Philippines and Indonesia remains robust, which could ensure stable supply for domestic consumption and lower food prices for Filipinos and Indonesians,” he added.
However, as the outbreak continues to persist and weigh on China’s production, he warned that the PMI indices for these two countries could be dragged lower. — Beatrice M. Laforga
Manila Feb. port usage drops to 50% amid epidemic
By Arjay L. Balinbin
Reporter
THE Philippine Ports Authority (PPA) said the yard utilization rate at the Port of Manila dropped from 65% to 50% in February due to the coronavirus outbreak.
PPA General Manager Jay Daniel R. Santiago told BusinessWorld in an interview on Feb. 24 that the yard utilization rate was “about 50%” during the month.
In a follow-up phone interview on Tuesday, he said the normal utilization level was about 65%, with shipments seeing a downturn in activity for cargoes originating in Hong Kong and China.
Cargo ships directly or indirectly from Hong Kong and China represent “about 70%” of all inbound cargo vessels, Mr. Santiago said.
“The Philippines is considered a feeder port, which means that majority of the inbound or outbound cargo vessels pass through either China or Hong Kong for consolidation with other cargo vessels before they proceed to their destinations,” he added.
He said the Port of Manila was just recovering from Chinese New Year, which dampened shipping activity, when the coronavirus began to affect cargo transactions in southern China, including Macau.
He said the coronavirus outbreak has had a knock-on impact on cargoes from elsewhere because of the paralysis of Chinese supply chains.
“For example, we have imports from Japan, South Korea, the United States, and Europe. A lot of them utilize components from China. Maybe, the coronavirus outbreak has affected their manufacturing industry… there is really a global slowdown because of the virus,” he said.
The coronavirus outbreak has forced the Philippine government to impose travel bans covering China, Hong Kong, Macau and parts of South Korea. It also briefly imposed a brief ban on Taiwan travel.
Mr. Santiago said the PPA will be issuing a notice to impose restrictions on ships from South Korea and their crews.
“If a ship is from South Korea and its crew members are Koreans who are not permanent residents of the Philippines, they will not be allowed to disembark from the vessel. As for the Filipino crew members, if their last stop is the Philippines, they will be required to undergo a 14-day quarantine. But if the Philippines is not their last stop, they will not be allowed to disembark from the ship. They will be treated like they are foreigners because there is no need for them to disembark,” he said.
“The volume of imports from South Korea is minimal as 70% of our cargoes emanate from China or Hong Kong either directly or by transshipment,” he added.
ANZ Research has said slower economic activity in China and other affected countries will have spillover effects on the Philippines, particularly tourism, remittances and import demand, which could consequently affect the current account.
“The Philippines’ exposure to goods exports… to China is estimated to be around 1.6% of GDP (gross domestic product)… Thus, a 20% drop in import demand from China for three months will translate to a 0.08 ppt hit to Philippines’ Q1 GDP through this channel,” the research arm of ANZ Bank said in a report.
With Chinese exports to the Philippines also likely to take a hit amid factory shutdowns, Philippine industrial production may also be affected negatively.
Still, ANZ Research said the Philippines may be “relatively less exposed” than its neighbors to trade disruptions due to the outbreak.
On Monday, IHS Markit reported that its Philippines Manufacturing purchasing managers’ index (PMI) rose slightly to 52.3 last month from 52.1 in January — the highest level in 13 months.
Duterte reviewing draft EO covering use of nuclear power
A PROPOSED executive order (EO) on nuclear power is now with President Rodrigo R. Duterte awaiting his signature, his spokesman said Tuesday.
In a statement, the President’s Spokesman Salvador S. Panelo said that the proposed EO on the use of nuclear power as an energy source is being reviewed by the President after having been coursed through the Office of the Executive Secretary (OES). It had been drafted by the Department of Energy (DoE).
“The proposed EO was submitted by the OES to the President on Feb. 20, 2020. It has not been approved yet,” he said.
Nuclear energy was discussed in Monday night’s Cabinet meeting, where Mr. Panelo said Energy Secretary Alfonso G. Cusi “sought the approval of the issuance of a proposed executive order for the inclusion of nuclear power in the country’s energy mix as the Philippines is expected to (experience) rapid growth in electricity demand, in which a 24/7 power (source) is essential and necessary.”
No details were available on when the EO will be signed or what its contents are.
Mr. Panelo also said the Cabinet did not discuss the revival of the Bataan Nuclear Power Plant, which was mothballed in 1986 by President Corazon C. Aquino.
In October, the DoE said it will submit a plan to the United Nations’ International Atomic Energy Agency on revisiting nuclear energy.
Mr. Cusi has long advocated nuclear energy to address the energy shortage, adding that nuclear power is cheaper and sustainable compared to coal and fossil fuels. — Gillian M. Cortez
Deterrent value of wildlife smuggling laws limited — DENR
THE Department of Environment and Natural Resources (DENR) said wildlife smugglers are not deterred by the current set of penalties prescribed for them because violations are prosecuted as if they were “second-class crimes.”
Undersecretary Ernesto D. Adobo, Jr., a lawyer, said societal attitudes towards wildlife smuggling are unhelpful because they do not recognize the urgency of the issue.
“It is a victimless crime. People do not think about wildlife trafficking too much because they are just animals. Moreover, smugglers take the risk… because the illegal wildlife trade is just a second-class crime,” he said Tuesday.
Mr. Adobo was speaking to mark World Wildlife Day at the Ninoy Aquino Parks and Wildlife Center in Quezon City.
He said a bill that is pending in Congress that addresses the weaknesses of the wildlife regulatory regime.
“We already have a bill pending that we hope to be certified soon. It will institutionalize law enforcement (practices) against the illegal wildlife trade,” Mr. Adobo said.
Assistant Secretary Ricardo L. Calderon said that the DENR is being assisted by the Asian Development Bank and the US Agency for International Development (USAID) in the amendment of the Wildlife Resources Conservation and Protection Act or Republic Act (RA) 9147.
At the event, the DENR’s Biodiversity Management Bureau (BMB) and USAID unveiled a new digital tool to combat wildlife trafficking, with the soft launch of the beta test version of the WildALERT system.
The system consists of a mobile interface, a species library with 480 entries, and a report management platform to help users identify wildlife species to help them better fight wildlife crimes.
The system’s senior developer Fheter John B. Calanday said the testing process seeks to ensure that the Android-based app can work even on older-model phones.
“Very challenging sa amin na gumana ’yung app sa mga lumang phone pero napagana namin (It was very challenging for us to make an app that even old phones can run), but we did it so that it can be more accessible to law enforcers,” Mr. Calanday added.
App users can take photos and provide key information via the app’s reporting feature, which will then be sent to the WildALERT report management platform.
Reports can be accessed by the nearest DENR field units such as City Environment and Natural Resources Offices, Provincial Environment and Natural Resources Office and the BMB for appropriate action.
The system will be officially turned over to DENR by the end of March or early April. — Revin Mikhael D. Ochave
Corporate fraud still high amid limited use of AI detection — PwC
FRAUD AND ECONOMIC crime in Philippine businesses fell but remained high in the last two years with the deployment of AI-based fraud detection systems remaining limited, PwC Philippines said in a report released Tuesday.
The 2020 Isla Lipana & Co./PwC Philippines Economic Crime and Fraud Survey found that 42% of respondents said their companies experienced incidents of fraud between 2018 and 2020.
The report, which is part of a global survey, found that the percentage fell from 54% in the 2018 report, though the new study’s sample size has grown to 101 from 63.
PwC views the rate as “remaining the same,” PwC Philippines Technology and Risk Consulting Partner Roberto C. Bassig told reporters at a news conference.
PwC’s survey took in respondents from across industries, including managers, chief executive officers, and chief financial officers, among others.
According to the global report, fraud incidents resulted in average losses of $100,000 per business over the past two years, with 31% of incidents costing between $50,000 and $100,000.
The top economic crime in the Philippines remained asset misappropriation, with 52% of respondents saying their companies have experienced such incidents.
Bribery and corruption, and customer fraud, were both at 42%.
Some forms of fraud declined significantly since the 2018 report, with incidence of procurement fraud falling to 21% from 35% and deceptive business practices falling to 19% from 38%.
Cybercrime jumped to 19% from 9% in the 2018 report.
Some 21% of respondents said their organization has been asked to pay a bribe, and 14% said that they lost an opportunity because they believe a competitor paid a bribe.
PwC Philippines Chairman and Senior Partner Alex B. Cabrera said that companies should have risk-management officers to identify problems, whether traditional or digital.
“If you have a dedicated risk-management person that also takes care of that, then I think you can avoid the habit of presumption. There is a lot of presumption because the president sees things in the ordinary course of business and doesn’t really do a deep dive on the details (to) find out what’s wrong,” he said.
The report said that the main perpetrator is usually an insider, accounting for 38% of incidents. Collusion between internal and external actors make up 21% of incidents.
In Southeast Asia, 39% of internal perpetrators are in the operations staff, and 38% are in middle management while 17% are in senior management. There are no available Philippine data due to the size of the survey sample, PwC said.
The “tip-off” remains the main source of fraud detection in an organization, as 25% of respondents say costs are preventing companies from upgrading technology to combat financial crime.
Only a small percentage of companies is currently using artificial intelligence to counter fraud, with 40% of companies planning on using voice recognition in the next 12 months and 39% planning on using natural language generation-based systems.
Mr. Cabrera said that he expects the problem in the Philippines to get worse before it gets better.
“The willingness to invest and the preparedness to take on security costs is not yet there. And then probably corporates also needs to see the cost of security go down from these service providers,” he said.
“I still think there’s an inherent defect on how we treat it as a culture… how we handle those fraud incidents.”
PwC is advocating for the criminalization of corruption within private companies.
“Private corruption is technically not a crime,” Mr. Bassig said, even though there are financial implications.
“We’re pushing forward, of course, with this initiative to criminalize this aspect and hopefully it will also help decrease the financial crimes B2B.” — Jenina P. Ibañez
DoF defends deficit as needed stimulus, sees no sovereign ratings impact
THE Department of Finance (DoF) said the larger-than-expected 2019 budget deficit will not have a negative impact on sovereign credit ratings as government spending was needed to stimulate economic growth last year.
“The rise in the NG (national government) deficit beyond the target should not adversely affect the country’s credit rating as fiscal stimulus was needed to shore up the country’s growth to a level closer to its 6.3% 10-year GDP growth average,” the DoF said in an economic bulletin Tuesday.
The budget deficit widened to a record P660.2 billion in 2019, up 18.27% from a year earlier, after a P494.4 billion spending surge in December pushed overall expenditure beyond the P620-billion ceiling for the year.
The deficit was equivalent to 3.55% of gross domestic product (GDP), exceeding the 3.25% ceiling set for the year.
“The catch-up expenditure plan launched by government after the election ban has boosted expenditures by 27.4% in the fourth quarter, thus pushing the whole year NG expenditure program beyond the whole year program,” it said.
Government expenditure last year of P3.797 trillion exceeded the P3.769-trillion spending plan by 0.74% while overall revenue rose 10% to P3.137 trillion in 2019, 0.39% short of its P3.149 trillion target.
The Finance department added that last year’s deficit was “financeable” as local interest rates continue to decline as does the size of the NG’s outstanding debt relative to GDP.
Despite the nominal growth in outstanding debt to P7.771 trillion at the end of 2019, the debt-to-GDP ratio last year fell to 41.5% from 41.8% a year earlier. The year-end ratio was the lowest since 1986.
“Despite this development, public construction declined by 2.4% in constant terms, last year,” the DoF said.
Moving forward, it expects the early approval of the 2020 budget to enable projects in the public sector to be implemented on time this year, which will “moderate the negative impact of the Taal eruption and the global uncertainties arising from the coronavirus disease (Covid-19) outbreak.”
Socioeconomic Planning Secretary Ernesto M. Pernia said Monday that GDP growth could suffer as much as a one-percentage point reduction this year if the outbreak persists until the end of the year.
The assessments were made based on a scenario of inbound Chinese tourists dropping by 100% and overall foreign tourist arrivals declining 10%, and assuming a drastic reduction in trade.
The government is targeting 6.5-7.5% GDP growth this year. — Beatrice M. Laforga
FDI policy review urged amid workplace closures
A LEGISLATOR has asked the House committee on labor and employment to review foreign direct investment (FDI) policy amid the recent closures of multinational firms’ Philippine operations.
“Kailangan i-review talaga natin ’yung policies natin regarding sa investments… (Investment policy needs to be reviewed) We have been providing incentives for FDI and yet… we are seeing a downtrend. We should look into it. Representative Ferdinand R. Gaite of Bayan Muna Party List said during a committee hearing Tuesday.
The committee heard representatives from three multinational companies that announced closures or reductions in their Philippine operations — Honda Cars Philippines, Inc. (HCPI), Nokia Technology Center Philippines and Wells Fargo & Co.
The three multinational firms told the committee that they will provide appropriate separation benefits for their employees.
A lawyer representing HCPI, Ariss N. Santos, said the automaker will provide “separation pay under the law, plus a minimum of one month pay for every year of service,” adding that employees will also receive a one-time lump sum of P100,000.
All HCPI employees will also have their health benefits extended until the end of the year, even after the closure of the manufacturing plant in Laguna.
“I think the offer is quite generous, quite above what is prescribed by law,” 1-Pacman Rep. Enrico A. Pineda, the committee chairman, said during the hearing. — Genshen L. Espedido
Wells Fargo to maintain presence in Philippines
WELLS Fargo & Co. said it will maintain its presence in the Philippines with a staffing level of about 4,800 workers, following the relocation of Manila-based technology jobs to India.
In a statement, the US bank said the relocations are part of a consolidation of such jobs worldwide in major tech centers, and estimated the Manila job losses at 700.
“Relocation of these limited technology roles was never intended to imply that there was a larger planned withdrawal of Wells Fargo from the Philippines, as has been incorrectly represented by some media channels. Wells Fargo remains committed to operating in Manila as a strategic location and has no plans to close its Manila operations. In fact, Wells Fargo inaugurated a new 12-story structure at McKinley Hill, Bonifacio Global City on July 1, 2019. This location is primarily an extension of the operations, knowledge services, and corporate support teams of Wells Fargo. It facilitates international operations, knowledge support, and middle and back-end business process solutions for a wide spectrum of Wells Fargo needs,” it said.
“We value all of our employees’ contributions and will provide a notice period and, as required by local laws, separation benefits to those who are impacted by the change.”
Declining imports dent BoC revenue by P2.7B
THE Bureau of Customs (BoC) said collections fell 2.58% in February on declining cargo volumes as the coronavirus outbreak continued to disrupt global supply chains.
The declining volumes are estimated to have resulted in around P2.7 billion worth of foregone revenue from Customs charges.
A BoC document obtained by Businessworld indicates that Customs revenue fell to P41.671 billion in February from P42.774 billion a year earlier, reversing the year-on-year gains made in January.
Cargo volumes processed by the BoC fell 6.67% year-on-year in February to 8.146 million tons.
Cargoes from China fell 34.67% to 936,246 tons over a period covering most of February.
“The volume of importation from China decreased by 34.67% for the period Feb. 1-28, 2020. This resulted in a revenue loss of P2.7 billion,” according to the document.
This was followed by a 29.92% drop in imports from Vietnam, as well as declines in volumes from Thailand (25.04%), South Korea (22.75%), Malaysia (17.79%).
Meanwhile, import volumes rose on cargoes from Indonesia, Singapore, Japan, the US and Saudi Arabia.
On the sidelines of an event in Makati City on Tuesday, Finance Undersecretary Antonette C. Tionko said separately that the department is seeing lower collections from the bureau as import volumes decline due to the outbreak of coronavirus, formally known as Covid-19.
Ms. Tionko said the reduction in revenues will be minimal this were likely offset by taxes from other goods such as fuel products.
In the two months to February, however, collections rose 5.01% year-on-year to P94.509 billion.
Import volumes for the period fell 5.34% year-on-year to 17.839 million tons.
By number of containers, imports from all countries fell 8.08% year-on-year in the first two months, with a 22.5% contraction in February overwhelming the 3.28% gain in January.
Containers from China and Hong Kong posted the largest year-on-year decline, dropping by 52.8% and 37.9% in February, respectively.
Meanwhile, Ms. Tionko said the government continues to monitor affected sectors and companies to evaluate how to help them cushion the blow on their businesses.
“We’re looking at ways to do that right now, not just the DoF, but through other agencies… let’s see how we can… maybe to waive fees, just to give them relief, in the event that this Covid-19 becomes very widespread,” she said.
At the Bureau of Internal Revenue (BIR) Ms. Tionko said tax collections will also likely fall as businesses reported lower sales during the period.
This year, the BIR is tasked to collect P2.576 trillion or 78% of the P3.3-trillion target set for the two biggest tax collection agencies, while the BoC is expected to collect P731.235 billion. — Beatrice M. Laforga
Ateneo and UP clash in UAAP volleyball today
By Michael Angelo S. Murillo
Senior Reporter
IT will be an early “Battle of Katipunan” in UAAP Season 82 volleyball for the Ateneo Lady Eagles and University of the Philippines Fighting Maroons as they clash in a packed game date today at the Mall of Asia Arena.
Set for 3:30 p.m., the battle between defending women’s champion Ateneo and UP is part of a four-game schedule for the University Athletic Association of the Philippines that will also see the schools’ men’s teams taking on one another in the 2 p.m. match and National University and University of Santo Tomas men’s and women’s teams playing in the morning.
The Lady Eagles are to begin their quest for back-to-back UAAP titles bannered by a team that is welcoming back familiar faces.
Jhoana Maraguinot, Jamie Lavitoria and Kat Tolentino are once again taking the taraflex floor for Ateneo as it goes for a fourth women’s volleyball crown.
Maraguinot is back in the Eagles’ nest to play in her final year of eligibility after not playing in Season 81 while Lavitoria also returns following her stint in the Philippine Super Liga last year.
Tolentino, for her part, initially revealed she was foregoing her final year in the UAAP after their title conquest last season but had a change of heart.
The three are counted on to help cushion the departure of the likes of Bea De Leon and Maddie Madayag to graduation and the sidelining of setter Deanna Wong because of injury (shin).
They will join a roster that also has libero Dani Ravena, setter Jaja Maraguinot, Jules Samonte, Vannie Gandler, Ponggay Gaston, Erika Raagas and rookie Faith Nisperos.
While confident with the team they have, Ateneo coach Oliver Almadro said having an injury-free season would go a long way for them and their quest to maintain their position on top of the heap in UAAP women’s volleyball.
“We are prepared to take on the challenge as defending champions. We have stepped up our preparation and we’re hoping for an injury-free season so we can pursue our mission better especially against a competitive field,” said Mr. Almadro in the lead-up.
FIGHTING MAROONS
For the Fighting Maroons, who decided to drop “Lady” in their moniker starting this season, the mission is to make another spirited run to make the playoffs after missing the Final Four bus in the last three years.
Back for one last ride for UP are seniors Isa Molde, Tots Carlos and Justine Dorog. They join forces with fellow veterans Marist Layug, Jessma Ramos and Rosie Rosier in trying to lead the Maroons to improve on their 6-8 record in Season 81 and hopefully earn a spot in the semifinals, something they have not experienced since Season 78.
Coach Godfrey Okumu shared that he is confident of the team they have but admits they have to go out on the floor with more consistency in play and mindset if they are to achieve their goals.
The Ateneo and UP men’s teams, meanwhile, enter Season 82 off third-place and last-place finishes, respectively, last year.
In the morning, the NU Bulldogs start their journey to win a third straight UAAP men’s title albeit sans top dog and Season 81 most valuable player Bryan Bagunas, who has graduated.
But despite that, coach Dante Alinsunurin expressed their readiness to once again defend their title.
“We’ve lost some key players from last season to graduation, including Bryan (Bagunas). But even before they graduated, we were already preparing. And we are ready to defend the title,” said Mr. Alinsunurin.
The Bulldogs play the UST Growling Tigers at 9 a.m.
Playing after at 10:30 a.m. are the NU and UST women’s teams.
The NU Lady Bulldogs finished sixth in Season 81 with a 4-10 card while the UST Golden Tigresses were losing finalists last year on the final season of league MVP Sisi Rondina.
Team Tarlac’s Solis claims first victory lap as Oconer solidifies lead
VIGAN, ILOCOS SUR — Kenneth Solis of Team Tarlac claimed his very first lap victory even as George Oconer of Standard Insurance-Navy stayed firm and unflappable at the helm in the ninth and penultimate stage of the LBC Ronda Pilipinas 10th anniversary race on Tuesday.
Mr. Solis, 26, came from behind and edged Christopher Garado of South Luzon-Batangas and Mar Sudario of Bike Xtreme to top the 170.6-km Stage Nine that started in Pugo, La Union, and ended in front of the provincial capitol here for his most significant performance since joining here four years ago.
Bryant Sepnio of Celeste Cycles, Mervin Corpuz of 7Eleven Cliqq-Air21 by Roadbike Philippines and two-time champion Santy Barnachea of Scratch It were part in that first group that clocked four hours, 15 minutes and 27 seconds.
The Army man then dedicated his triumph to one-month-old daughter Brianna Kate.
“This is special to me and I’m dedicating it to my baby,” said an ecstatic Mr. Solis in Filipino.
It was the second lap triumph for Team Tarlac after Ryan Tugawin reigned supreme in Stage Two in Legazpi City.
Mr. Garado, despite finishing only second, likewise considered his feat exceptional since his team almost did not make the race after the fund intended for their campaign were used to help victims of the Taal eruption.
The day, however, belonged to the 28-year-old Oconer, who kept his iron grip on the individual general classification lead with an aggregate clocking of 31:50:52 ahead of teammates Ronald Oranza (31:52:07), Ronald Lomotos (31:52:10), John Mark Camingao (31:52:45), Junrey Navarra (31:53:09) and El Joshua Carino (31:54:43).
Rounding up the top 10 were the Go for Gold troika of Jonel Carcueva (31:56:16), Daniel Ven Carino (31:56:38) and Ismael Grospe, Jr. (31:56:40), and Bicycology-Army’s Marvin Tapic (31:59:38).
The final stage — a criterium — here will be Mr. Oconer’s coronation lap as he will finally end a long search for the title.
Mr. Oconer and the rest of the Navymen, who have also virtually sealed the overall team crown, dedicated their effort to Standard Insurance Group chairman Ernesto “Judes” Echauz.
“We are dedicating this to him (Echauz) because without his full support, we wouldn’t have achieved any of this,” said Oconer.