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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

Time to make your pitch on TV

BUSINESS reality TV show The Final Pitch is back for a fourth season featuring judges from previous seasons once again looking for the best Philippine startups from aspiring entrepreneurs.

“Every season is different and has something new to offer. Our investors are looking forward to discovering our country’s newest set of rising entrepreneurs and hear their pitches and amazing stories,” John Aguilar, president and executive producer of Streetpark Productions Inc., said in a press release.

The show is loosely based on business reality shows like Shark Tank and The Apprentice and requires participants to have a minimum viable product or something more than a business idea for them to be able to pitch their businesses to investor-judges which will give them advice, critiques, and maybe even invest in their businesses.

This season, the show welcomes back several investor-judges from the third season: Mega Global Corp. CEO and founder William Tiu Lim, co-founding owner of Philippines Air Asia Mikee Romero; president and CEO of Baskin Robbins Philippines Michael Dargani; and TagCash Ltd. founder Mark Vernon.

Also included in this season’s slate of investor-judges is season two’s Mica Tan, CEO of the MFT Group of Companies.

“We expect [participants] to already know how to pitch their businesses,” Mr. Dargani said during a press conference on June 26 at the Hexagon Lounge of RCBC Plaza, Makati City. Noting that since the show is already on its fourth season, aspiring entrepreneurs should have studied up on how to pitch.

Among the successful businesses which won funding during previous seasons are FlySpaces, a workspace booking platform which now operates in six countries including Singapore, Indonesia, and Myanmar; and Gourmanok, a flavored chicken skin brand which grew from selling in bazaars to having spaces in local retailers.

FlySpaces won an investment from Ms. Tan while Gourmanok won an investment from Mr. Tiu Lim.

“We can expect more sophisticated and mature startups coming into the fold, as they see The Final Pitch as a legitimate way to raise funding for their next stage of growth,” Mr. Aguilar said in the release.

This season’s mentors include Joel Santos of the Thames Business School, Junie del Mundo of EON The Stakeholder Relations Group, and Mark Gorriceta of Gorriceta Law.

The Final Pitch is scheduled to start airing in September over CNN Philippines. Visit the finalpitch.ph for more information. — ZBC

‘Let’s Get It On’ copyright cases halted for Led Zep appeal

A COPYRIGHT battle over Marvin Gaye’s “Let’s Get It On” was halted last week by a judge until a separate fight over Led Zeppelin’s “Stairway to Heaven” is resolved.

Holders of rights to Gaye’s 1973 song are demanding more than $100 million for the alleged theft of the composition for Ed Sheeran’s hit “Thinking Out Loud.”

The parties will set new dates for the litigation only after an appeals court in San Francisco rules in the “Stairway” case, US District Judge Louis L. Stanton in Manhattan wrote in a July 2 order.

Sheeran, in court filings, denies infringing “Let’s Get It On.” His defense echoes that of Led Zeppelin, which is accused of copying the opening notes of “Stairway” from the obscure 1968 instrumental “Taurus” by the band Spirit.

Led Zeppelin and Sheeran argue that copyright protection for older songs only extends to sheet music deposited at the US Copyright Office — and not to additional musical elements contained in studio recordings.

Until 1978, musical compositions could only be registered via sheet music, according to US copyright law. Songs were often composed by recording artists with no knowledge of musical notation, and then transcribed by record company clerks afterwards for the registrations.

A Bloomberg Businessweek investigation found that restricting copyright protection to the deposited sheet music would render unprotected some of the most famous classic rock and soul riffs, opening them to possible commercial exploitation for ring tones, ads, video games, or entire new songs.

Absent passages from the so-called “deposit copies” include solos from the Doors, Eagles, Billy Joel, Gaye, and Bruce Springsteen. Even Jimmy Page’s guitar solo from the end of “Stairway” is nowhere in Led Zeppelin’s registered sheet music.

Led Zeppelin initially won at a 2016 trial in Los Angeles, where a jury only heard musicians’ renderings of the “Taurus” sheet music, but not the album recording.

Last year, a three-judge panel on San Francisco’s federal appeals court ordered a do-over of that trial for procedural reasons. The panel also declared that for pre-1978 unpublished songs, the deposited sheet music “defines the scope of the copyright.”

That ruling set off a second round of appeals by both sides. In early June, the appeals court voted to have a rare 11-judge panel rehear the case this coming September, suspending the 2018 decision. The only topic on which the court has asked the parties for written arguments so far is the primacy of the registered sheet music.

“There could be many decisions, but the main issue is the deposit copy,” said David Pullman, an investor in music rights who is a plaintiff in the “Let’s Get It On” litigation. Pullman is best known for turning David Bowie’s music royalty flows into “Bowie Bonds” in 1997.

The “Let’s Get It On” litigation is comprised of two separate cases: Griffin, v. Sheeran, 1:17-cv-05221, and Structured Asset Sales LLC v. Sheeran, 1:18-cv-05839, both in US District Court, Southern District of New York (Manhattan).

The “Stairway to Heaven” appeal is Skidmore v. Led Zeppelin, 16-56057, US Ninth Circuit Court of Appeals (San Francisco). — Bloomberg

Spider-Man: Far From Home opens with $185M

LOS ANGELES — Superheroes were once again around to save the day as Spider-Man: Far From Home ignited a much-needed boost in the domestic box office. The web-slinging adventure easily dominated in North America, delivering a $185 million debut from 4,636 venues during its first six days in theaters.

But even your friendly neighborhood Spider-Man isn’t immune to a little sequel slump. Spider-Man: Far From Home got a head start by opening on the Tuesday ahead of Independence Day, but it collected $93 million over the traditional three-day weekend. That’s a stellar start to be sure, but a drop from the $117 million debut of its predecessor, 2017’s Spider-Man: Homecoming. However, the July 4th weekend isn’t a traditionally busy time for moviegoing.

Overseas, the 23rd movie in Marvel’s Cinematic Universe earned $395 million, boosting its global tally to a mighty $580 million after 10 days. The superhero tentpole is performing ahead of fellow comic-book universe titles Captain Marvel and Spider-Man: Homecoming at the same point in their release cycles.

Boosted by solid reviews, Spider-Man: Far From Home also benefited as the must-see follow up to the epic finale that was Avengers: Endgame.

The movie, which carries a $160 million price tag, picks up after the events of Avengers: Endgame and sees Peter Parker (Holland) on a class trip to Europe. While overseas, he is reluctantly enlisted by Nick Fury (Samuel L. Jackson) and Mysterio (Jake Gyllenhaal) to help take down threats from an alternate dimension. Zendaya, Cobie Smulders, Jon Favreau, and Marisa Tomei all returned for the sequel.

Also opening this weekend was A24’s Midsommar, director Ari Aster’s sophomore feature. The R-rated folk horror film nabbed sixth place on box office charts, generating $6 million over the weekend and $10.9 million during its first five days of release. Midsommar received mostly positive reviews, though audiences seemed more divided. The movie, about a group of friends who travel to Sweden for a festival, has a mediocre C+ CinemaScore.

While in line with studio projections, Midsommar’s debut is roughly half of what Aster’s first film Hereditary made in its inaugural weekend. Hereditary launched with $13 million last June and is still A24’s highest-grossing movie to date with $44 million in North America and $79 million globally.

Disney-Pixar’s Toy Story 4 slid to second place with $34 million in ticket sales during its third outing, bringing its domestic tally to a massive $306 million.

In third, Universal’s Beatles tribute Yesterday earned another $10 million for a North American haul of $36 million. Warner Bros.’ Annabelle Comes Home added $9.5 million this weekend, taking box office receipts to $50 million.

Rounding out the top five is Disney’s Aladdin, which added $7 million in its seventh weekend in theaters. The live-action remake has generated $320 million in North America. — Reuters

URC partners with Intersnack for Oceania

UNIVERSAL Robina Corp. (URC) is partnering with Europe’s Intersnack Group in a bid to expand its operations in the Oceania snack food market.

In a disclosure to the stock exchange Monday, the Gokongwei-led firm said the board of directors of its wholly owned unit, URC Oceania Company Ltd., has approved Intersnack’s acquisition of a 40% stake in its consolidated business in Australia and New Zealand.

URC Oceania will be paid with a mix of cash and shares in Intersnack’s natural snack food unit in Australia, Yarra Valley Snack Foods Pty. Ltd.

The listed food and beverage firm sees the transaction as a way to monetize some of the synergies it has through its early investments in Australia and New Zealand, while still retaining control and the ability to “further create value within and beyond Australia and New Zealand.”

“Leveraging on URC and Intersnack’s know-how from their respective markets will yield best practices in manufacturing, supply chain and sustainability practices, setting the groundwork for an even larger and more efficient Oceania operations,” URC said in its disclosure.

Founded in 2008, the Intersnack Group produces food products such as potato and tortilla chips, popcorn and nuts, puffed corn snacks, and baked goods. The privately owned firm operates in 24 countries and has about $3 billion or P158.6 billion in net sales across Europe.

Intersnack’s unit, Yarra Valley, is currently its only presence in Australia, which is described as a market leader in organic and gluten-free snacks. Its brands include Chio, Vico, Monster Munch, Pennstate, Kelly’s, Taffel, and McCoy’s, among others.

Both parties expect to close the deal once it secures the necessary approvals from the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office.

URC’s net income attributable to the parent went up three percent to P3.04 billion in the first quarter of 2019, driven by a seven percent uptick in net sales to P33.3 billion.

The company is tracking a seven to nine percent increase in sales this year, banking on the recovery of its instant coffee business. Meanwhile, its bottom line is expected to grow at the same pace as revenues.

To support its growth, URC has committed to spend P9.1 billion in capital expenditures for the year, mostly for capacity expansion. This includes P1 billion for its Davao flour mill’s expansion to 900 tons from its current 300 tons.

Shares in URC jumped 1.14% or P2 to close at P178 each at the stock exchange on Monday. — Arra B. Francia

PSEi expected to end year within 8,400-8,600 level

190218_PSE08_kjrosales
A MORE bullish outlook for the stock market is seen for the second half of 2019. — PHILSTAR/KRIZ JOHN ROSALES

By Arra B. Francia, Senior Reporter

THE Philippine Stock Exchange index (PSEi) is seen to end the year within the 8,400 to 8,600 range, boosted by lower interest rates and the expected earnings growth for listed firms for the rest of the year.

This is according to investment banking firm First Metro Investment Corp. (FMIC), which said that they are more bullish on the local equities market for the second half.

“Our confidence arises from the fact that the consensus earnings estimate moving forward is upward, we’ve seen CAGR (compounded annual growth rate) growth earnings wise,” FMIC Vice-President and Head of Research Ma. Cristina S. Ulang said during the firm’s Midyear Economic and Capital Markets briefing in Taguig Monday.

Ms. Ulang said that the CAGR of companies stood at 5.9% from 2010 to 2015, rising to 8.1% from 2016 to 2018.

“We expect 10.6% growth based on the consensus estimate for the period 2019 to 2021,” Ms. Ulang said.

The 8,400-8,600 target assumes a corporate earnings growth of 10% for the second half of the year, higher than the first quarter’s 8.6%. FMIC also set a price earnings ratio of 18-19x for the period.

The company is also banking on the policy rate cuts by the Bangko Sentral ng Pilipinas, given its history in boosting the PSEi. Ms. Ulang noted that the main index soared by 33% in 2011 after the central bank reduced rates by 100 basis points (bps). The same happened in 2016, with the PSEi jumping 25% after a 100-bp cut.

“So we’re seeing the PSEi react to the RRR (reserve requirement ratio) cut and the promise of policy rate cut of more in the second half of this year,” Ms. Ulang said.

At the same time, FMIC sees PSEi-member companies spending P600 billion in capital expenditures from 2018 to 2020, double the P300 billion they spent from 2010 to 2011.

The amount of capital to be spent over the three-year period could prompt companies to raise funds through the equities market, given that only P37.89 billion has been raised at the stock exchange during the first half.

“We expect volumes to slightly recover with a few equity issuance for the rest of the year,” FMIC Executive Vice-President Daniel D. Camacho said in the same briefing, citing the P7.7-billion maiden offering of coconut products manufacturer Axelum Resources Corp. scheduled for the fourth quarter of the year.

FMIC’s stock picks for the period include BDO Unibank, Inc. and Metropolitan Bank & Trust Co. (Metrobank) for banks; Universal Robina Corp., San Miguel Food and Beverage, Inc., and Wilcon Depot, Inc. for consumer; and Ayala Land, Inc., Megaworld Corp., and Robinsons Land Corp. for property.

On the infra sector, it favors Megawide Construction Corp. and Eagle Cement Corp. It also cited Ayala Corp., JG Summit Holdings, Inc., Metro Pacific Investments Corp., and GT Capital Holdings, Inc. for conglomerates, and Aboitiz Power Corp. and Manila Electric Co. for power.

FIXED-INCOME MARKET
On the other hand, FMIC sees record volumes to be raised at the fixed-income market this year. With P408 billion raised from a combination of corporate, bank, and government issuances, the first half has already exceeded the P319 billion seen in full-year 2018.

This was mainly boosted by the government’s 22nd tranche of Retail Treasury Bonds at P236 billion, almost twice its 2018 issuance.

Other issuers were Rizal Commercial Banking Corp., BDO, Metrobank, and SM Prime Holdings, Inc., among others.

“Robust performance was boosted by cuts in the reserve requirement and policy rate,” Mr. Camacho said.

At this rate, FMIC said it is possible for the fixed-income market to exceed its record-high volume of P590 billion in 2017.

Actress and singer Karen Mok hopes to bring Broadway to China

HONG KONG singer/actress Karen Mok poses on the red carpet as she arrives for the 26th Golden Melody Awards in Taipei, Taiwan on July 5. — REUTERS

LONDON — Karen Mok may be currently performing on what she says will be her final concert tour but the Hong Kong-born actress and singer has no plans to retire just yet, setting her sights on bringing Broadway-style musicals to China.

The 49-year-old has released 20 solo albums and starred in more than 40 films during her 25-year career including Keanu Reeves’ Man of Tai Chi and Wong Kar Wai’s Fallen Angels. She also worked alongside fellow Hong Kong star Jackie Chan in Around the World in 80 Days.

“It doesn’t mean that I’m retiring or anything… I could never quit the stage but I just feel that it’s a good time to call it a day where pop concerts are concerned,” Mok told Reuters in London while on a visit to promote her tour.

“Going forward I want to go into doing musicals and musical theater because that’s my one true love in performing.”

Mok, who in 2005 and 2006 starred in the hit Broadway musical Rent on its 10th anniversary tour, said she wants China to have its own version of the New York theater district or London’s West End.

“There’s a lot of theater going on in China but like the West End as an industry (it’s) not really there yet but at some point it will happen so I feel that I should contribute toward that,” she said.

“My next big mission in my career is to create, from scratch, a musical for the Chinese audience… I really love musicals because they allow you to simultaneously act, dance, sing, and play music and getting to do it live every evening is just amazing… We should have our own original musicals.”

The singer’s Ultimate Karen Mok Show kicked off in Shanghai in June 2018 and has included shows in Singapore, Taipei and Beijing.

In Europe, she will play the Folies Bergere in Paris on Sept. 12 and the London Palladium on Sept. 15 — a show Mok, who studied at the University of London, described as “a little bit of a homecoming.” — Reuters

Low-density condo 10 Acacia offers more privacy, more space

By Mark Louis F. Ferrolino
Special Features Writer

BOUTIQUE real estate developer Livingsprings Communities Realty and Development Corp. continues to expand its portfolio as it begins construction on 10 Acacia Place in Quezon City.

The 10-storey residential development is sits on a 2,600-square-meter (sq.m.) lot along 21st Avenue in Brgy. Tagumpay, near P. Tuazon Boulevard, Cubao.

Touted as the “lowest-density residential development” in the city, 10 Acacia Place will only have 184 units to provide residents with utmost privacy, comfort and peace.

“Low density means more privacy, more space [and] more security, therefore, more peace,” Monica Therese C. Albert-Lopez, managing director of Livingsprings Communities, said during the unveiling ceremony of the property’s showroom last week.

The 10 Acacia Place will offer studio, one-bedroom, two-bedroom, and premium two-bedroom units with floor areas ranging from 26.75 sq.m. to 56.20 sq.m. The units cost from P2.6 million to P7 million.

Ms. Albert-Lopez, who also designed the project, said that units are masterplanned with flexibility in mind.

“With just a few moves, you will be able to turn a studio into one-bedroom [unit], you will be able to turn one-bedroom [unit] into two, and a two to a three,” she said.

The entire development will feature a Pacific modern aesthetic, with wood finish and glass. According to Ms. Albert-Lopez, wood is part of the identity of Filipinos as a tropical country, while glass brings a lot of light.

“We want everyone here to have that overflowing life experience… That’s why I chose Pacific modern,” she said.

Amenities of 10 Acacia Place will include a swimming pool, play area, lounge, garden, gym, jogging path, gazebos, mediation area, and a function hall. The development will also have a 24-hour security service and RFID exclusive lobby access, and will be equipped with CCTV, automatic fire suppression and emergency power support.

Future occupants of 10 Acacia Place will have easy access to several schools, business centers and leisure facilities. It is just a short distance from the Ateneo de Manila University, De La Salle Greenhills, University of the Philippines Diliman, and Miriam College. The Gateway Mall and Eastwood Mall could be also reach within minutes from the site.

The 10 Acacia Place broke ground November last year, and is expected to be competed in 2022.

At present, about 30% of the total units has already been pre-sold, said Ms. Albert-Lopez in an interview with BusinessWorld. The company is expecting to sell most of the units this year or by next year, she said.

“Now that the showroom is ready, it’s like we’re seeing our doors are wide open for business,” Ms. Albert-Lopez said.

Asked about the future plans of the company, Ms. Albert-Lopez said that it will continue developing residential communities.

Aside from 10 Acacia Place, Livingsprings Communities’ recent projects include Tres Palmas, a Mediterranean residential multiple-home community located in Taguig City.

Top funds see Philippine stocks up 25% under Duterte policies

MANAGERS at the three best performing Philippine equity funds see a much rosier second half for Rodrigo Duterte’s term as president, forecasting that the benchmark stock index will climb about 25% over the next three years.

The Philippine Stock Exchange index gained just 2.6% in the first half of Mr. Duterte’s term, which started at the end of June 2016, and was among Asia’s worst performers in that span. After surging to a record in January 2018, the gauge collapsed amid rising inflation, a weakening peso and the US-China trade war. But cooling prices and interest rate cuts have fueled an 18% rebound since November, and reawakened the bulls.

“We are on a clear economic growth path and the drivers are very clear,” said Julian Tarrobago, head of equities at ATR Asset Management, Inc. “Consumption, accommodative monetary policy and a massive increase in infrastructure spending pave the ground for growth acceleration,” said Mr. Tarrobago, whose ATRAM Alpha Opportunity Fund has returned 26% under Duterte.

The president launched a P9-trillion ($176-billion) program to build airports, railways, roads and bridges under his six-year term. Fund managers see this push combined with the central bank’s monetary easing stoking consumer spending and speeding up economic growth. Gross domestic product (GDP) rose 5.6% in the first quarter of 2019, the slowest pace in four years.

“Faster economic growth is to be expected, and this will be more spread out given the infrastructure projects are in many places,” said Noel Reyes, chief investment officer at Security Bank Corp. “As long as GDP grows more than 6%, any sell-off means investors are in a panic and selling without factoring the fundamentals,” said Mr. Reyes, whose SB Peso Equity Fund gained 14% in the first half of Mr. Duterte’s term.

Messrs. Tarrobago, Reyes and Gerard Abad, chief investment officer at AB Capital & Investment Corp., all say the stock benchmark PSEi could reach as high as 10,000 before Mr. Duterte’s term expires in June 2022. While the gain in Philippine equities should be broad-based, property, infrastructure and consumer staples are likely to outperform the market, they said.

Foreigners have purchased a net $400 million in the nation’s stocks this year, after selling more than $1 billion in 2018, according to data compiled by Bloomberg.

The recent rally has driven the PSEi’s valuation to 16.5 times estimated 12-month forward earnings, compared with 13.3 times for the MSCI Asia Pacific index. Still, Philippine stocks are trading below the 20-times level they reached in four rallies dating back to 2013.

Possible external negative factors that could hamper further gains include higher oil prices, worsening of the US-China trade war and geopolitical tension over Iran. At home, Mr. Duterte faces execution risks with his infrastructure drive and planned shift to a US-style federal government structure.

Positives could include further upgrades in the nation’s credit scores. AB Capital’s Mr. Abad says this is possible due to the infrastructure investment plans and greater certainty of passage for fiscal reforms including lower corporate taxes given Mr. Duterte’s stronger support in Congress. Mr. Abad’s AB Capital Equity Fund climbed 13% in Mr. Duterte’s first three years.

“A credit ratings upgrade is a strong message about the current state and prospects of the economy,” Mr. Abad says. “It’s an added catalyst for foreign investors not to pass up on Philippine equities. The market is yet to see its peak.” — Bloomberg

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