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ABS-CBN Sports brings content to digital, LIGA

WITH their free television platform currently shut, ABS-CBN Sports has decided to bring its content on its digital platforms and cable sports channel LIGA.

Began on Friday, May 8, some of the group’s well-loved programs and shows used to be shown over ultra high frequency channel S+A are now available on its social media accounts on Facebook, Twitter, and Instagram, the ABS-CBN YouTube channel, and streaming service iWant.

They are also shown over LIGA, which can be seen nationwide through its 200 provincial cable affiliates.

While not necessarily new to the group as it has been doing such for some time now, ABS-CBN Sports saw the need to turn to such channels of presentation at this point after the National Telecommunications Commission issued a cease-and-desist order versus ABS-CBN, which forced the media giant to halt its broadcast operations on May 5 while its franchise renewal is still pending in Congress.

Among those affected was its sports channel S+A.

Currently being shown are Mobile Legends: Bang Bang Professional League — Philippines (MPL-PH) Season 5, sports lifestyle program Upfront, sports talk show The Score, new program Homework, Extra Rice with Beau Belga and Kalye Confessions with Cherry Nunag, among others.

LIGA is on Channel 86 and LIGA HD on Channel 183 on SkyCable and Destiny. For livestreaming of MPL-PH, head to sports.abs-cbn.com, TFC.tvSports, and the Facebook and YouTube accounts of ABS-CBN Sports. Follow @ABSCBNSports on Twitter, Facebook, Instagram, and YouTube for new episodes of your favorite programs and the latest sports news. — MASM

Right direction

Just about the only thing “normal” with the (Re)Open UTR Pro Match Series over the weekend was the run-up, with a knee injury to Tennys Sandgren requiring Miomir Kecmanovic to step in as replacement.

Yet, as the clever name of the affair underscores, the conditions that prevailed may well be as close to routine as the sport can get moving forward. It may have run for just two days and involved round-robin matches among a mere four players employing Fast4 rules, but it served to lay the ground

work for future tournaments under stipulations that ensure the health and safety of all and sundry.

Indeed, the endeavor backed by The Tennis Channel had to hurdle obstacle after obstacle despite its meager size. That it actually pushed through is due as much to circumstance as to planning. It used a private court in a state with relatively relaxed quarantine guidelines, and all involved, from the players to the chair umpire, were already situated near the venue in West Palm Beach, Florida. There were no line judges, no ball kids, and, most crucially, no spectators — a notable bummer to the protagonists, though nonetheless acknowledged as a critical component to competition in the midst of the new coronavirus pandemic.

And so the first of two scheduled events in the (Re)Open UTR Pro Match Series wound up a success, and not simply because the live broadcast was likewise carried by a local station and two Major League Baseball networks. No doubt, the measures employed would be replicated for full-fledged tournaments, even as a host of other more complicated ones remain question marks. Winner Reilly Opelka, Hubert Hurkacz, Tommy Paul, and Kecmanovic all brought their own sources of nourishment, used their own balls, and called their own lines, not to mention retreated to their own tents during breaks in the action.

In two weeks, women will have their turn. Amanda Anisimova, Danielle Collins, Alison Riske, and Ajla Tomljanovic will exchange groundstrokes under similar conditions, but, hopefully, sans the injury replacement and shortened schedule due to rainout. Because of the utter lack of sports programming, it figures to make waves as well. Beyond its value as escapist fare, however, it looks to serve a bigger purpose; in an environment where information is sparse and at a premium, it serves as requisite fodder for discussions. If nothing else, the (Re)Open UTR Pro Match Series has pointed decision makers in the right direction.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

alcuaycong@bworldonline.com

Stocks down as investors fear economic impact of pandemic

WORRIES of a worsening economy left investors wary, pulling down the 30-member main stock index to close lower a day after the country saw a contraction in gross domestic product (GDP) that ended a 21-year growth streak.

On Friday, the Philippine Stock Exchange index (PSEi) fell by 0.55% or 31.22 points to 5,621.94 while the broader all-shares index went down by 0.29% or 10.08 points to 3,403.8

In a text message, PNB Securities, Inc. President Manuel Antonio G. Lisbona said that the decline was due to investors still feeling the effects of a GDP falling into negative territory.

“Investors are probably extrapolating an even deeper decline in the second quarter, given the effect of just a two-week lockdown starting at the tail-end of the first quarter on GDP growth,” he said.

Mr. Lisbona added that index heavyweights such as SM Investments Corp. (SM), Ayala Land, Inc. (ALI), and Manila Electric Co. (Meralco) were consequently sold down.

On Friday, SM shares declined by 2.72% or P22.50 to P804 each, ALI shares went down by 3.26% or P1.10 to P32.65 per share, and Meralco shares fell 1.56% or P4 to P252 apiece.

On Thursday, the Philippine Statistics Authority reported that the GDP contracted by 0.2% during the first quarter. The last time that the country’s GDP fell was during the fourth quarter of 1998.

In a text message, Philstocks Financial, Inc. Research Associate Claire T. Alviar said that the sudden spike in new coronavirus disease 2019 (COVID-19) cases for two consecutive days added to the negative sentiment in the market.

As of Friday afternoon, the Department of Health (DoH) reported 120 additional cases, bringing the total confirmed COVID-19 cases to 10,463.

The DOH bulletin placed the latest number of deaths to 696, while 1,734 patients have successfully recovered from the disease.

“The impact of enhanced community quarantine caused by the COVID-19 pandemic was really substantial in the economy, and this impact is expected to be severe in the second quarter,” Ms. Alviar said.

“Investors seem to be more comfortable being on cash over the weekend to avoid any unexpected events,” Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a text message.

Industrials rose 0.2% or 14.65 points to 7,326.79; holding firms went up 0.04% or 2.48 points to 5,532.27; mining and oil improved 0.19% or 8.78 points to 4,520.85.

On the other hand, financials fell 1.08% or 12.61 points to 1,148.08; property dropped 1.21% or 35.95 points to 2,934.97; services shrank 0.18% or 2.38 points to 1,322.68.

Mr. Pangan said that the national government’s decision on whether to continue the enhanced community quarantine (ECQ) or shift to a less-restrictive general community quarantine might affect market sentiment next week.

“The government’s decision on the ECQ and whether it will be lifted or not on May 15 is being closely monitored as this may affect next week’s market movement,” Mr. Pangan said.

Decliners outpaced advancers 90 to 75, with 55 names unchanged. Net foreign selling was at P771.19 million, more than double the previous day’s net selling of P302.23 million. — Revin Mikhael D. Ochave

ABS-CBN expects to lose up to P35 million daily when off air

By Vann Marlo M. Villegas

ABS-CBN Corp. stands to suffer millions of pesos in foregone advertising revenues daily, impair its credit standing, and risks defaulting on debts after it was forced to stop broadcasting with the issuance of a cease-and-desist order (CDO) by the National Telecommunications Commission (NTC), the Lopez-led media network said.

In its 46-page petition for temporary restraining order and/preliminary injunction, the listed company said it was losing P30-P35 million every day it was off air.

“While its most immediate loss would be loss of advertising revenues, ABS-CBN risks incurring a lot more,” it said. “Because of the CDO, ABS-CBN will not be able to service its debts and this would constrain its creditors to require collateral from its loans.”

The network noted that it had received a notice from a bank demanding that it come up with a loan collateral, and that its credit lines and letters of credit “had already been adversely affected,” hindering activities that it funded.

“Even if the total potential financial impact of the foregoing may be estimated, the injury is still irreparable because ABS-CBN cannot recover its losses from the NTC,” it said.

ABS-CBN told the stock exchange it has P16 billion in short-term liabilities due this year and P26.5 billion in long-term liabilities.

The NTC on May 5 issued the order against ABS-CBN, immediately directing it to stop broadcast operations in radio and television. ABS-CBN turned directly to the Supreme Court (SC) on May 7 and filed the petition.

The CDO is contrary to the guidance provided by the Department of Justice in a Senate hearing that the Congress may authorize the NTC to issue provisional authority for ABS-CBN to operate while it awaits approval of its franchise renewal application.

The House of Representatives sent a letter and the Senate issued a resolution asking the NTC to issue the provisional authority.

ABS-CBN also noted that the injury extends to the public as its shutdown would result in loss of livelihood for its more than 11,000 employees and their families.

It also claimed that with the closure, the public is deprived of a source of news and entertainment in the time of the pandemic and lockdown “just when it is most needed to disseminate information.”

The network also said that it had raised more than P237 million to support the fight against the coronavirus disease 2019, and that it plans to do more but the shutdown order limited its capacity to do so.

PROVISIONAL AUTHORITY
Legal experts said the NTC should have granted ABS-CBN provisional authority to operate when the validity of its franchise lapsed as the issuance has been the practice, pending the renewal in Congress.

Antonio G.M. La Viña, a law professor at the University of the Philippines, said not granting the provisional authority to the network is “disruptive” of the business operations of companies that have been issued a franchise.

“Basically kasi, ang rule, ang practice is kung mag-expire ang franchise mo, hindi ka titigil, hindi ka mag-o-off air, bibigyan ka ng provisional authority until ma-renew ‘yung franchise mo or ma-deny. That’s always been the practice,” he told BusinessWorld in a phone interview.

(Basically, the practice is if your franchise is expiring, you won’t stop operating, you will not go off-air, and you will be given provisional authority until your franchise is renewed or denied. That’s always been the practice.)

“Simple lang siya (It’s simple). If you are an existing business, you have business, you have loans, you have suppliers, you have investors, it’s very disruptive you tell them to stop, only to be given the franchise a week from now, one month from now, one year later,” he added.

Eugenio H. Villareal, a law professor at the Ateneo de Manila University, said the NTC should have “reflected well” before issuing the order.

“ABS-CBN, and by the extension the viewing public, have the constitutional right to equal protection of the laws as well as due process,” he said in an e-mailed response to questions.

Nilo T. Divina, dean of the University of Santo Tomas Faculty of Civil Law, said the grant of provisional authority by the NTC, like any regulatory authority is “on a case by case basis.”

He noted that under Section 3, Rule 12, of the Rules of Practice and Procedure of the NTC, the commission “may issue provisional authorizations on the basis of the documents and applicant’s compliance with the requirements of the case, and when public interest so requires.”

“Clearly, the use of the word ‘may’ gives NTC enough discretion in evaluating applications for provisional authority on a case by case basis,” he said.

Mr. Divina, however, said that statements made during legislative hearings are made under oath and a witness who testifies falsely may be cited in contempt.

“When NTC reneged on its statement under oath to grant ABS-CBN a provisional authority after the expiration of the latter’s franchise, it’s as if NTC testified falsely during the committee hearing and this could be a valid ground for citing NTC in contempt,” he added.

Mr. Divina said that a resolution issued by the Senate alone does not function as a law and is not legally binding on the commission, as only joint resolution by the Congress signed by the President has an effect of a law. He, however, noted that even if there is a joint resolution, “jurisprudence has yet to address” if it can extend franchise or direct the NTC to issue the provisional authority.

LEGAL STEP
Filing of petition for certiorari and prohibition with prayer for the issuance of a TRO and/or writ of preliminary injunction is one of the steps ABS-CBN could take aside from abiding by the order of the NTC, which will be followed by a hearing, Mr. Divina said.

While filing the petition can be filed to the SC, Mr. Divina said filing the petition to the Court of Appeals is the more appropriate course, following the hierarchy of courts.

Mr. Villareal, said “it will not be a surprise” if the network filed the petition to the SC as it may involve a matter of “transcendental importance,” adding that it is an exception under the rules that an act or omission by a quasi-judicial agency may be reviewed by the appellate court.

ABS-CBN’s option is to go back to Congress and have lawmakers renew its franchise, Mr. La Viña said. He noted that if the rules of the NTC will be followed, wherein it has to ask for a reconsideration before going to the court, it could take six months to two years.

This could give the Congress an excuse to stall the franchise renewal and defer until the case is settled.

“So but theoretically, there are these options legally that they can pursue together with the Congress option. But the problem with the legal part, is it can give Congress an excuse for not acting on it,” Mr. La Viña said.

Cayetano says Congress to hold hearings on ABS-CBN franchise

HOUSE SPEAKER Alan Peter S. Cayetano reiterated on Friday his assurance that the House of Representatives will do its job on the matter of the ABS-CBN Corp. broadcast franchise.

“So for those asking what Congress will do — the answer is simple — our job. The [House] committee on legislative franchises will conduct hearings in a manner that is consistent with what we have always said. That is — fair, impartial, thorough, and comprehensive,” he said in a Facebook post.

He said while the issuance of a cease-and-desist order by the National Telecommunications Commission (NTC) “unnecessarily complicates the issue, it does not change the fact that the exclusive constitutional authority to grant, deny, extend, revoke, or modify broadcast franchises — including having the primary jurisdiction to make an initial determination whether an application for a legislative franchise should be granted or denied — still resides in Congress, and Congress alone.”

“As for the sudden flip-flopping of the NTC and the unconstitutional meddling by the Solicitor General in the business of Congress, I promise you — there will be a reckoning,” Mr. Cayetano added.

In March, NTC Commissioner Gamaliel A. Cordoba assured the House of Representatives during a committee on legislative franchises hearing that the commission would issue a provisional authority that would allow ABS-CBN to continue broadcasting until Congress makes a decision on its franchise.

Mr. Cayetano said: “With this assurance, we wasted no time in addressing the bigger threat facing the country. During the two-month Congressional break our members, led by Majority Floor Leader [Ferdinand] Martin [G.] Romualdez worked tirelessly to address the now COVID-19 (coronavirus disease 2019) pandemic. ”

Palawan Rep. Franz E. Alvarez, who chairs the legislative franchises committee, and Mr. Cayetano sent a letter to the NTC enjoining the commission to grant a provisional authority to the media network.

Mr. Cayetano said they were “ambushed” by the NTC on Tuesday, when it issued its cease and desist order.

“Despite their assurance given under oath. Despite the legal opinion of the Department of Justice. Despite a resolution from the Senate, and several verbal and written assurances given to Congress — the NTC appears to have succumbed to pressure from the Solicitor General, and issued a cease and desist order to ABS-CBN,” he said

In view of the growing threat of COVID-19, Mr. Cayetano said that the House leadership “tried to gain a consensus with the Executive Department, through the DOJ and the NTC, to allow us time to properly address the ABS-CBN issue in the midst of all the other more important problems facing the country.”

In a statement on Friday, Albay Rep. Edcel C. Lagman said that the House leadership “can redeem itself of its culpability in the ABS-CBN franchise fiasco by immediately fast-tracking the renewal of the giant network’s franchise.”

“Cayetano must not wash his hands and absolve himself of blame at the expense of others. Admitting one’s fault is an earmark of true leadership,” he said.

Meanwhile, Anakalusugan Party-List Rep. Michael T. Defensor filed House Resolution 846 on Friday calling on appropriate House committees to conduct an investigation on the NTC and Solicitor General Jose C. Calida for “perjury and for violation of the code of conduct, ethical standards, and the anti-graft and corrupt practices act.”

“Verily, the orchestrated conduct of the NTC Commissioners and its Officers and the Solicitor General directly subverts the plenary authority of the House of Representatives and, by maliciously breaking the NTC’s commitment made under oath, constitutes the criminal acts of perjury and violations of the Code of Conduct and Ethical Standards for Public Officials and Employees and the Anti-Graft and Corrupt Practices Act,” part of the resolution read.

NTC Deputy Commissioner Edgardo V. Cabarios did not immediately reply to text and Viber messages seeking comments.

At the Senate, Senator Grace S. Poe-Llamanzares said her panel is committed to immediately tackle the ABS-CBN franchise once it is transmitted to the Senate.

“As Senate President Vicente C. Sotto [III] vowed, the Senate will not waste a moment once the bill reaches the Chamber, as this matter is imbued with public interest,” Ms. Poe-Llamanzares, chair of the public services committee, said in a statement, Friday. — Genshen L. Espedido

SEC flags ‘Bayanihan’ and other unregistered schemes

THE Securities and Exchange Commission (SEC) warned the public anew of groups peddling shady investments without authorization from the government.

The commission on Friday said it released separate advisories flagging the Bayanihan Program of a certain Billy Ford Delos Santos Andrada, My Gold Rev or My Gold Rev Philippines, Friend$hip or Friend$hip Philippines, and World of Captcha (WOC).

These four groups have no licenses to solicit investments from the public, nor have registered securities, such as investment contracts.

Also, they are not registered as corporations or partnerships with the SEC.

Billy Ford Andrada through his Bayanihan Program is soliciting a minimum investment of P2,000, promising a 50% return and 5% direct referral bonus.

He is also running promotions for a 15% direct commission and a P300 bonus for every investment of P2,000 during this quarantine period.

Mr. Andrada was earlier identified by SEC as the owner of Billford Trading and Bill Ford VIP Trading, Inc., that is engaged in investment-solicitation activities in the guise of a piggery business.

My Gold Rev offers business plans for $20 to $100,00 in which investors may allegedly earn a daily profit of 2% to 3.5% for 80 to 100 days or a 260% to 450% return on investment.

Friend$hip, a company led by a certain Rodnelio “Ron” Chang Capua, collects a subscription fee of $7.99 or P385. Members receive $1 for every referral in the first to the fifth levels of their network.

The group, which is supposedly based in New Jersey in the United States, recently launched its subscription plan with a landing page at $11 or P935. Under this plan, investors may earn $1 per successful referral and another $1 for every purchased landing page up to the fifth level.

Meanwhile, WOC, which operates as an online business, is offering plans worth P200 to P1,000 where members could supposedly earn P300 to P1,500 by typing CAPTCHA (completely automated public Turing test to tell computers and humans apart), a form of online verification process.

Additionally, the group promises bonuses ranging from P20 to P100 for direct referrals and P5 to P25 for indirect referrals up to the fifth level.

It also offers a program where members can purchase 75 codes and get 10 free codes for P15,000 for the purpose of reselling them.

Both plans, which expire after eight days, lead members to purchase new plans, or upgrade to continue earning under the scheme headed by a certain Charles Serrano.

The SEC warned that those behind these groups may be fined up to P5 million, imprisoned for up to 21 years, or both under the Securities Regulation Code. — Adam J. Ang

Marco Polo Davao closing doors by June 15

DAVAO CITY — Marco Polo Davao, one of the first international hotel brands to operate in the city, will cease operations by June 15 with severance pay already distributed to most of its employees.

Francis R. Ledesma, president of hotel owner Halifax Hotel Davao Inc., said the decision to close is a matter of putting their workers’ welfare as priority given actual and projected losses due to restrictions relating to the coronavirus disease 2019 (COVID-19) outbreak.

“We chose to first take care of our people… You cannot beat a pandemic,” he said in a phone interview Friday.

Retirement packages were given to those of retirable age, and separation benefits for the others.

Mr. Ledesma said there are no ongoing discussions about reopening because “we will not know what will happen next.”

But when reopening plans arise, he said laid-off employees will get priority for hiring.

The 245-room hotel, with a five-star classification based on the Department of Tourism rating system, still has a few foreign guests who have been stranded in the city and some business process outsourcing (BPO) employees.

Mr. Ledesma said the BPO clients are expected to leave as soon as the quarantine protocols, which are in effect until May 15, are eased

“Living in a hotel (for BPO employees) is a big expense to the company,” he said.

Apart from the quarantine rules, the Davao City government has also declared a ban until end-2020 on all big events such as conventions and festivals.

Regina Rosa D. Tecson, chief of the City Tourism Operations Office, said they have yet to make an assessment of COVID-19’s impact on the local tourism industry as their “office has transitioned into several other functions as of the moment” in line with the COVID-19 response.

Ms. Tecson did say they have already received reports of other tourism establishments, including smaller accommodation facilities, having closed or downsized. — Carmelito Q. Francisco

Manila Water income up 4%

EAST ZONE water concessionaire Manila Water Co. Inc. reported a 4% increase in its consolidated net income to P1.3 billion for the first quarter, despite lower contributions from its domestic subsidiaries.

In a disclosure to the stock exchange on Friday, Manila Water’s concession earnings were at P1.63 billion during the first quarter of the year while its revenues rose by 9% to P5.5 billion.

The water company’s costs and expenses declined by 30% to P1.3 billion, despite the 15% increase in direct costs due to the P534-million penalty imposed by the Metropolitan Waterworks and Sewerage System (MWSS) for the water supply shortage last year.

The 15% increase in direct costs was driven by higher chemical costs with the operations in Manila Water’s Cardona treatment plant as well as increased power costs for the energization of new deep wells.

Meanwhile, domestic operations under Manila Water Philippine Ventures recorded a net loss of P151 million for the first quarter.

The company attributed the loss to the lower contribution of Estate Water caused by its lower supervision fees.

“The decline was primarily the result of the change in accounting treatment for said fees, but also in part by the stoppage of projects due to the enhanced community quarantine,” the statement said.

Manila Water Asia Pacific also reported a net loss of P193 million due to the additional expenses in relation to its investment in Cu Chi in Vietnam.

Manila Water said the recognition of additional expenses in the Vietnam project was partially offset by the increase in equity share in net income of associates, which stood at P219 million, 6% higher than last year.

Locally, the company has suspended meter reading activities in its service areas and deferred the due date of customer bills for 30 days.

The water concessionaire also implemented business contingency measures for continuous operations despite the enhanced community quarantine.

“As we face the unprecedented challenges posed by the COVID-19 pandemic, we should work even more closely with our partners and stakeholders so we can continue to provide reliable service. Only by working together can we find safer, more effective and innovative ways of serving our customers under this new normal,” Manila Water President Jose Gregory D. Almendras said.

On Friday, shares in Manila Water rose by 8.55% to close at P12.70 each. — Revin Mikhael D. Ochave

PLDT studies 5G delay as pandemic disrupts supply chain

THE coronavirus pandemic is pushing PLDT Inc. to delay the launching of its fifth-generation (5G) network services, Chief Revenue Officer Alfredo S. Panlilio of the Pangilinan-led telecommunications company said.

“It is still an area that we are looking at. Maybe it will be deferred to a later date, but it is still something that we will get into,” he told reporters on Thursday, citing the coronavirus disease 2019 (COVID-19) pandemic that is causing disruptions in the whole supply chain for all industries.

Mr. Panlilio was quoted as saying in a newspaper report by The Philippine Star on March 9 that PLDT was “plotting to have something that it can bring to the market sometime in the second quarter” of the year.

In December, PLDT Chairman, President and Chief Executive Officer Manuel V. Pangilinan said a significant amount of the capital expenditures (capex) for 2020 would be used to fund the company’s continuing rollout of its 5G technology, although the product “may not be immediately” profitable.

On Thursday, the telecommunications company said the capital spending for this year would probably be cut by 24% to P63 billion from the planned P83 billion as movement and travel restrictions under the government-imposed enhanced community quarantine (ECQ) hamper its network rollout activities.

Technology firm Cisco Systems, Inc. (Cisco) earlier said the rollout of 5G network services in the Philippines could increase the annual revenues of telecommunications companies by as much as $650 million beginning 2025.

Cisco said 5G penetration in countries in Southeast Asia is expected to reach 25% to 40% by 2025.

Fitch Ratings said in November last year that Philippine telcos are expected to be still dependent in the next three years on existing 4G technologies amid growing demand for data.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Nickel Asia posts losses as virus hits global markets

NICKEL ASIA Corp. on Friday reported an attributable first-quarter net loss of P89 million, reversing last year’s profit of P138 million, as the pandemic hit the listed mining company’s investments.

In a disclosure to the stock exchange, it said the net loss during the quarter was mainly because of the P261-million mark-to-market loss from its portfolio investments as the spread of the coronavirus disease 2019 (COVID-19) “profoundly affected markets globally.”

“The said loss translates to a negative 5.6% overall return on the portfolio’s performance,” Nickel Asia said.

Nickel Asia also reported a consolidated net loss of P10 million from its equity investments in Coral Bay Nickel Corp. and Taganito HPAL Nickel Corp. The figure is slightly lower than the P25-million loss in the same quarter last year.

Nickel Asia President Martin Antonio G. Zamora said: “We remain cautious for the rest of the year owing to the uncertainties prevailing in markets globally.”

The company reported that it had sold an aggregate 2.78 million wet metric tons (MT) of nickel ore for the first quarter, lower than the 2.89 million wet MT ore sold in the previous year.

Nickel Asia said it had realized an average price of $5.80 per pound of payable nickel on its shipment of ore to the two HPAL (high pressure acid leach) plants, the prices of which are linked to the London Metal Exchange.

“This compares to an average price of $5.56 per pound of payable nickel sold in 2019,” it added.

Ore exports sales achieved an average price of $28.58 per wet MT, higher than $19.71 last year.

Revenues rose by 11% to P2.21 billion because of the impact of higher ore prices during the first quarter.

The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 21% to P804 million.

Mr. Zamora said if the mark-to-market loss was stripped out from the company’s portfolio investments while taking out the challenges brought by COVID-19, earnings from operations “actually improved year-on-year as evidenced by a higher EBITDA.”

The company also said its Taganito and Taganaan mines have resumed operations this month, after almost one month of voluntary suspension.

On Friday, Nickel Asia shares were unchanged at P1.54 each. — R. M. D. Ochave

Almost $1 billion hot money left Philippines in March

By Luz Wendy T. Noble, Reporter

ALMOST $1 billion in foreign capital left the country in March, reflecting investor preference for safe-haven assets as a Luzon-wide lockdown meant to contain a coronavirus pandemic brought the Philippine economy to a standstill.

Foreign portfolio investments posted a net outflow of $961.05 million in March, reversing from a net inflow of $40.06 million a month earlier, the Philippine central bank said in a statement late Thursday.

The hot money net outflow was also wider than the $739 million net outflow in March last year, according to Bangko Sentral ng Pilipinas (BSP) data.

The central bank cited negative sentiment “that has prompted investors to liquidate portfolios and keep money in cash amid heightened worries over the adverse economic impact of the coronavirus disease 2019 (COVID-19) pandemic.”

The net outflow also came despite the government’s initial fiscal stimulus package against the virus, which has sickened more than 10,000 and killed almost 700 people in the Philippines.

Aside from the pandemic, US-Iran tensions, trade negotiations between the US and China, and government review of local water contracts had affected foreign investor sentiment, the central bank said.

March gross inflows reached $953 million, lower than the $1.374 billion posted in February and the $1.732 billion a year ago.

Gross outflows hit $1.914 billion, worse than the $1.334 billion gross outflows a month earlier but lower than the $2.471 billion posted in March last year.

Majority or 93% of the investments during the month were placed in shares on the Philippine Stock Exchange, particularly banks, property, holding, food, beverage and tobacco, and transport companies.

The remaining 7% of the investments were channeled to government securities.

The top five investor economies with a combined share of 83.9% in total portfolio investments were the United Kingdom, United States, Singapore, Hong Kong and Luxembourg, BSP said.

“It’s definitely the COVID-19’s handiwork at play here in this horrendous outflow,” Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, Inc. said in an e-mail.

“With the COVID-19 pandemic, everything turned south and the general economic outlook turned sour,” he added.

The Philipine economy shrank by 0.2% in the first quarter, the first contraction since the fourth quarter of 1998.

The outbreak had induced a sell-off in March as countries including the Philippines locked down major cities to contain it, Nicholas Antonio T. Mapa, a senior economist at ING Bank-NV Manila said.

President Rodrigo R. Duterte locked down the entire Luzon island in mid-March suspending work, classes and public transportation to contain the outbreak. He extended the so-called enhanced community quarantine in Metro Manila and other key regions until May 15.

Analysts earlier said the central bank would have to revise its hot money goal this year of $8.2 billion net inflows, made before the pandemic hit the globe.

Investor sentiment may turn positive again once markets see a glint of a gradual economic recovery, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“Financial market sentiment could improve once the lockdowns are eased in the coming months and as the economy is allowed to gradually restart,” he said.

Nomura expects negative Philippine debt outlook as economy weakens

CREDIT rating companies may lower the Philippines’ debt rating to negative amid dimming growth prospects caused by a global coronavirus pandemic, according to Nomura Global Markets Research.

S&P may be the first among the three credit rating companies to give a negative outlook for the country within a year, Nomura said in a note.

“We see a rising risk that S&P — which has a “BBB+” rating, a notch above Fitch Ratings and Moody’s Investors Service — could revise the outlook to negative over the next six to 12 months,” it said.

“A key support for its rating upgrade to BBB+ last year was its assessment of a strong growth trajectory, which is now undermined by the COVID-19 shock and subsequent measures to contain the local outbreak,” it added.

Nomura’s assessment came a day after Fitch Ratings lowered its outlook for the Philippines to stable from the positive it gave in February. It maintained the country’s credit rating at “BBB” — a notch above the minimum investment grade that it gave in December 2017.

S&P has lowered its growth outlook for the country to a contraction of 2% this year, after projecting 6% growth back in December.

The Philippine economy shrank by 0.2% in the first quarter, the first contraction since the 3% drop in the fourth quarter of 1998 during the Asian financial crisis.

Before the outbreak, the government was targeting to get an A rating by 2022 to get access to low-cost credit as the country was expected to become an upper middle-income country this year.

Philippine central bank Governor Benjamin E. Diokno has said the rating ambition might have to take a backseat.

Meanwhile, S&P Global Ratings warned that the credit rating of banks with strength issues in some countries may be lowered due to the global health crisis.

The coronavirus could also take its toll on the credit ratings and outlook of some countries, though limited because many of of their banks have boosted their balance sheets, S&P said in a separate note.

“We continue to expect that bank rating downgrades this year due to the COVID-19 pandemic will be limited by banks’ strengthened balance sheets over the past 10 years, the support from public authorities to household and corporate markets, and our base case of a sustained economic recovery next year,” it said.

“We cannot rule out further rating actions, including some downgrades, in particular for banks with pre-exisiting financial strength issues,” it added

S&P said most banks would face earnings rather than capital shocks. This could be worsened by weaker investor appetite and higher funding costs for systems dependent on external financing, and the oil-price shock for some, it added.

The central bank has said local banks have enough capital and buffers to withstand the impact of the health crisis. — Luz Wendy T. Noble

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