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T-bill rates seen moving sideways at BTr auction

YIELDS ON Treasury bills (T-bill) on offer tomorrow will likely move sideways following the decision of the central bank to keep interest rates steady.

The Bureau of the Treasury (BTr) is offering P15 billion worth of Treasury bills (T-bill) on Tuesday, broken down into P4 billion and P5 billion for the three- and six-month instruments, respectively, and P6 billion in one-year papers.

Two traders interviewed expect rates of the T-bills to move sideways from the previous auction.

Last week, the Treasury fully awarded the T-bills on offer, raising P15 billion as planned out of bids worth P43.1 billion.

Rates of the 91-, 182- and 364-day papers went down to 4.453%, 4.856% and 5.05%, respectively.

At the secondary market on Friday, yields on the three-month and six-month debt instruments were at 4.567% and 4.839%, respectively, while the one-year tenor fetched a 5.029% rate.

“We only expect rates to move sideways from the previous auction. The BSP (Bangko Sentral ng Pilipinas) did not hike interest rates during their meeting,” a trader said in a phone interview.

The central bank’s policy-setting Monetary Board left the interest rate on the BSP’s overnight reverse repurchase facility untouched at 4.5%, it announced after its review on Thursday. The interest rates on the overnight lending and deposit facilities were likewise held steady at five percent and four percent, respectively.

“A prudent pause allows the BSP to observe and assess the impact of prior monetary adjustments including the phased reduction in the reserve requirements to be completed by the end of July,” BSP Governor Benjamin E. Diokno said.

At its meeting last May 9, the MB cut key rates by 25 basis points. The BSP also reduced the reserve requirement ratios (RRR) of lenders by a percentage point effective May 31 to 17% for universal and commercial banks, 7% for thrift banks, and 4% for rural and cooperative banks. The reserve ratios of big banks and thrift lenders will be reduced further to settle at 16% and 6%, respectively, on June 28 and July 29.

BSP Deputy Governor Diwa G. Guinigundo said these RRR reductions are expected to unleash a total of P200 billion into the financial system once the phased implementation is completed.

“Since the BSP didn’t cut the rates, we expect yields to move sideways until the market finds fresh leads,” the trader added.

Meanwhile, Robinsons Bank Corp. peso debt trader Kevin S. Palma said yields on the T-bills may move sideways from the previous auction ahead of the release of the BTr’s borrowing plan for the third quarter.

National Treasurer Rosalia V. De Leon earlier said the Treasury’s programmed borrowing for the next quarter will be lower than the April-June program due to “slow” government spending earlier this year.

Despite the sideways movement of yields, Mr. Palma said the auction could be “another will-bid auction” as steepening bias of the local yield curve will continue driven by expectations that the US Federal Reserve may ease its policy rates as soon as July.

“[Y]ou have your usual reinvestment requirement ahead of a P9.3 billion T-bill maturity on July 26 that will further boost demand for the front-end of the curve,” Mr. Palma added.

The government is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of the country’s gross domestic product. — Karl Angelo N. Vidal

Taiwanese firm mulls PHL expansion

By Charmaine A. Tadalan
Reporter

TAIPEI — Taiwanese electronics firm Protech Systems Co., Ltd. is setting sights on Southeast Asia, including a possible expansion in the Philippines in the next two years.

“We have to move our focus outside of the Japanese market like the Southeast Asia. The Southeast Asian market is very high. It has high potential,” Protech Vice-President for Sales Simon Teng said during the recent Taitronics 2019 pre-show in Taiwan.

“We are spreading our focus to the market we are not operating well in the past.”

Protech largely manufactures retail point-of-sales systems, kiosks, and industrial PC products, which the company can also customize according to their clients’ needs.

The company will be among the participants of this year’s Taipei International Electronic Show, Taitronics 2019, which will be held on Oct. 16-18.

At present, majority of the company’s revenue is generated from the Japan market with 42%, followed by Europe and America with 35% and 18%, respectively. The remaining 5% is from other regions.

“The first move that we made in Southeast Asia, we opened branch in Singapore because we set up a holding company there, by way of the Singapore holding company. Then we will make further step of moving to a branch office to the Philippines or Malaysia,” Mr. Teng said.

“I think I can foresee in the coming future, maybe just one or two years later, we can have overseas branch in the Philippines, in Manila.”

Aside from its Taiwan headquarters, Protech also has a global office, particularly in Tokyo, Japan; California, USA; Madrid, Spain; and Dusseldorf, Germany.

Mr. Teng noted there is a high demand for Protech’s kiosk products in the Philippines.

“It can run 24 hours a day for seven times a week. You don’t have to pay overtime salary and there’s no problem for the kiosk,” he said.

“The purpose of developing kiosk is not to replace human being job, it’s to replace the regular boring job from the people, and the people can do higher value-added job.”

HSBC Research forecasts Q3 policy rate cut, Q4 RRR reduction

THE Bangko Sentral ng Pilipinas (BSP) is expected to cut policy rates in August and resort to further reducing banks’ reserve requirement ratio (RRR) in the fourth quarter, according to a forecast made by HSBC Global Research.

According to HSBC Economist Noelan Arbis, the BSP maintained its policy rates during the monetary board meeting Thursday because a previous cut made on May 9 “will take some time before its impact filters through to the real economy.”

“That said, we see scope for further monetary easing ahead, given relatively tepid domestic growth, a less hawkish Fed, and a more benign inflation trajectory in the second half of the year. We forecast a 25 basis point (bp) policy rate cut in 3Q (likely in August) which coincides with the release of the country’s 2Q GDP (gross domestic product) print,” Mr. Arbis said.

The BSP decided to keep its benchmark policy rate at 4.5% as it “believes that the manageable inflation outlook and firm domestic growth prospects support keeping monetary policy settings steady for the time being” according to BSP Governor Benjamin E. Diokno.

On May 9, the MB decided to reduce overnight borrowing and lending and deposit rates by 25 basis points to 4.5%, 5%, and 4% respectively, after a major tightening last year due to rapidly-growing inflation. RRR meanwhile was cut to 16% from 18% this year.

“A prudent pause allows the BSP to observe and assess the impact of prior monetary adjustments including the phased reduction in the reserve requirements to be completed by the end of July,” Mr. Diokno said.

“Overall domestic economic activity is likely to remain firm, supported by a projected recovery in household spending and the continued implementation of the government’s infrastructure spending program,” according to Mr. Diokno.

Mr. Arbis, meanwhile, also said that he expects the reverse repurchase (RRP) rate to be at 3.75% by the end of 2020 with cuts possibly staggered at 50 bp each quarter.

This is “to reduce financial stability and inflation risks,” Mr. Arbis said.

He added that the RRR is expected to be reduced to 15% by the end of this year and to 13% by end-2020.

Nicholas Antonio T. Mapa, senior economist at ING Bank Manila, also said that slashing policy rates is possible in the third quarter if inflation is proven to be in a downtrend and growth remains slow.

“If inflation shows that it will indeed revert to its downward path and if signs point to still-anemic growth despite the initial stimulus from both the monetary and fiscal side, we could see the BSP slashing policy rates further in 3Q to help reverse 2018’s aggressive rate hike cycle,” Mr. Mapa said.

“The next policy meeting (Aug. 8) coincides with the release of 2Q GDP growth, which should by all indications be an improvement from the 1Q print with the economy benefiting from the recent round of policy easing (RRP and RRR cuts) with the fiscal support also seen to boost growth momentum after being sidelined for most of the year,” according to Mr. Mapa. — Reicelene Joy N. Ignacio

Rice farmers urged to consider vegetable farming amid more liberal import regime

EAST-WEST Seed Group said rice farmers must consider diversifying their crops to improve their income in the face of liberalized rice imports.

“I think rice farmers need to diversify. They need to diversify into high-value crops, into vegetables, which gives them… better income than rice. I know because of the Rice Tariffication Law the rice farmers are really worried that the price of palay would go down,” Mary Ann P. Sayoc, public affairs lead of East West Seed told reporters in a briefing on Friday.

Ms. Sayoc said a vegetable farmer can earn more in 2,000 square meters than from one hectare of rice.

“Vegetable farming contributes to improved livelihood of farmers. If you compare the income of farmers from vegetable compared to rice, vegetable farmers earn more per hectare,” she said.

In a text message to BusinessWorld, she said a farmer planting bitter gourd, or ampalaya, can earn P500,000 per hectare against P75,000 from rice.

The equivalent earnings from eggplant and tomato are P360,000 per hectare, and pumpkin P230,000.

East-West Seed Group was founded in the Philippines in 1982 by Simon Groot of the Netherlands, with seed trader Benito Domingo in Lipa City, Batangas. It is engaged in research, development, production, and distribution of vegetable seed, specifically of vegetable varieties that are adapted to tropical markets and growing conditions and generate increased yield and productivity for farmers. It also helps farmers maximize their yields and income through better understanding of vegetable production.

The Rice Tariffication Law allows rice to be imported more freely by private entities, in exchange for a 35% tariff. The threat of cheaper rice from more efficient producers in Southeast Asia has pressured the price of palay, or umilled rice, producers of which may have to compete with rice grown in Vietnam or Thailand.

The Philippine Statistics Authority (PSA) said that in the first week of June, the farmgate price of palay, the form in which it is sold by domestic farmers, fell 0.8% to P18 per kilogram.

“We can offer them ways to diversify their income and teach them vegetable farming,” Ms. Sayoc said during the briefing.

To date, the company has reached 20 million smallholder farmers in 60 tropical countries in Asia, Africa, and Latin America through its 900 improved vegetable varieties.

She said the domestic seed industry still has room for growth from still-untapped markets.

“I think the Philippines still has many things to offer. For one, there are still many areas where seed companies could grow their seed, produce their seed, especially in the far-flung areas. I think we could still produce more and the seed industry could really contribute a lot to food security through improved varieties,” she said. — Vincent Mariel P. Galang

Chanel, Fendi host tribute to couturier Karl Lagerfeld

PARIS — Amid colossal portraits and clean lines of black, white and red, Chanel, Fendi and a gaggle of stars paid homage to the fashion titan and Kaiser of mode Karl Lagerfeld on Thursday.

The mythic kingpin of the cutting edge died in February, aged 85, devastating the industry after his decades as head of legendary labels Fendi and Chanel as well as his eponymous brand.

Stars including Pharrell Williams, Tilda Swinton, Helen Mirren, and Cara Delevingne paid homage to Lagerfeld on the stage during a tribute entitled Karl For Ever.

Blurring the lines of haute couture, theater, and film much as Lagerfeld was known to do, the event consisted of live performances and dramatic readings montaged with a short documentary.

Featuring the ever reticent co-owner of Chanel Alain Wertheimer, the film was narrated by Lagerfeld himself, sewn together from dozens of clips before his death.

Looking on, the celebrity-studded crowd featured Mayor of Paris Anne Hidalgo, singer-songwriter and supermodel Carla Bruni, Valentino creative director Pierpaolo Piccioli, Valentino himself, model Gigi Hadid, editor-in-chief of Vogue Anna Wintour, and the first lady of France, Brigitte Macron.

The show, conceived by Canadian opera director Robert Carsen, was held in the glass-domed Grand Palais — the same quintessentially stylish structure that housed some of Lagerfeld’s most sensational shows, which included elements as spectacular as a 265-ton iceberg and a replicate Eiffel tower.

Karl For Ever sought not only to highlight Lagerfeld’s long list of achievements as grand couturier, photographer or publisher, but to highlight the man behind the glasses. The celebration explored his personal passions like tango, literature and music, and highlighted anecdotes from those who knew him well.

Lagerfeld created iconoclastic, spectacle-driven fashion. In this Lagerfeldian world, to be boring was a cardinal sin.

He also brought Chanel back from death’s door, reinvigorating the wilting couture house with the modern moxie that has since kept Chanel a lucrative and industry-defining fashion house, a job that required constant reinvention.

“It’s up to us to adjust to our times,” Lagerfeld said in one video. “Evolution can’t be stopped, and will not be stopped tomorrow.”

The tribute punctuated Paris’ men’s fashion week for Spring/Summer, which wrapped up Sunday. — Reuters

Yields on gov’t debt drop on dovish Fed, BSP meet

YIELDS ON government securities went down last week due to dovish remarks from the US Federal Reserve and the Bangko Sentral ng Pilipinas’ (BSP) decision to stand pat on policy and slash its inflation forecasts.

On average, debt yields — which move opposite to prices — dropped by 12.5 basis points (bp) from a week ago, according to PHP Bloomberg Valuation (BVAL) Service Reference Rates as of on June 21 published on the Philippine Dealing System’s website.

“Yields for government securities in the secondary market moved lower week on week due mostly to the dovish Fed… The pause by the Monetary Board, however, slowed the downward trend down,” Carlyn Therese X. Dulay, first vice president and head of Wholesale Treasury Sales at Security Bank Corp., said in an e-mail interview.

Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila Branch, said expectations of further rate cuts from the Fed pushed global bond yields lower.

“Local market yields tracked the move of US Treasuries given the dovish outlook for rates,” Mr. Mapa said in an email.

“Meanwhile, despite BSP keeping policy rates untouched, traders reacted to the latest BSP inflation forecasts which showed slightly lower inflation for both 2019 and 2020,” he added.

At its June 18-19 meeting, the US Federal Open Market Committee (FOMC) kept interest rates unchanged but hinted possible rate cuts before yearend. The Fed said it would continue to “act as appropriate” amid market uncertainties.

Meanwhile, back home, the BSP’s policy-setting Monetary Board (MB) similarly held rates steady at its meeting on Thursday on expectations of steady inflation and economic growth in the coming months.

The MB left the interest rate on the BSP’s overnight reverse repurchase facility untouched at 4.5%, it announced after its review on Thursday. The interest rates on the overnight lending and deposit facilities were likewise held steady at five percent and four percent, respectively.

The central bank also revised its inflation forecasts to 2.7% (from 2.9%) for this year and to 3% (from 3.1%) for 2020.

BSP Governor Benjamin E. Diokno said the central bank decided to stand pat on its policy stance to assess the impact of previous adjustments.

At its meeting last May 9, the MB cut key rates by 25 basis points. The BSP also reduced the reserve requirement ratios of lenders by a percentage point effective May 31 to 17% for universal and commercial banks, 7% for thrift banks, and 4% for rural and cooperative banks. The reserve ratios of big banks and thrift lenders will be reduced further to settle at 16% and 6%, respectively, on June 28 and July 29.

At the secondary market last Friday, yields were lower than week-ago levels across the board. The three-month, six-month, and one-year Treasury bills (T-bill) went down by 7.5 bps, 9.6 bps, and 18.4 bps, respectively, to yield 4.567%, 4.839%, and 5.029%.

Rates of the debt papers at the belly of the curve also fell, with the two-, three- and four-year bonds dropping 9.4 bps, 10.8 bps, and 11.6 bps, respectively, to fetch 5.005%, 5.011%, and 5.024%. Yields on the five- and seven-year notes also declined by 12 bps (5.043%) and 12.4 bps (5.087%).

Yields on the 10-, 20-, and 25-year tenors likewise dropped by 12.3 bps, 10.3 bps, and 23.4 bps, respectively, to 5.125%, 5.275%, and 5.275%.

“We expect yields to trade within range [this] week as there are no new catalysts in the street,” Security Bank’s Ms. Dulay said, adding that she expects “yields to follow the US Treasury yield movement” in the meantime.

She noted the Philippine Statistics Authority’s release of inflation figures next week and the third-quarter borrowing program of the Bureau of the Treasury as major catalysts in the coming days.

Headline inflation accelerated in May following six consecutive months of slowdown, settling at 3.2% last month, up from the three percent in April but still slower than the 4.6% recorded in May 2018. Year to date, inflation averaged 3.6%, past the midpoint of the BSP’s 2-4% target for the year.

For his part, ING Bank’s Mr. Mapa said the “[m]arket will take its cue from global developments (G20 meeting up next) for direction.”

US President Donald J. Trump confirmed on Tuesday that he is set to meet Chinese counterpart Xi Jinping in the G20 Summit in Japan this week to discuss a possible trade deal. Both leaders launched a truce in the last G20 Summit in December 2018 that was interrupted after both sides slapped higher tariffs on each other’s goods in May. — Marissa Mae M. Ramos

All-new 2020 Range Rover Evoque lands in Manila

By Ulysses Ang

COVENTRY Motors Corporation, the exclusive Philippine importer and distributor of Jaguar and Land Rover vehicles, launched recently the all-new 2020 Range Rover Evoque, bringing to the Philippines a luxury SUV that promises to change the standards of style, refinement, safety, and capability.

Based off Range Rover’s Velar platform, the new Evoque is created with Land Rover’s new Premium Transverse Architecture, making it wider and longer than its predecessor. The new platform also accommodates components for both plug-in and mild hybrid systems.

“We are very proud to bring to the Philippines the all-new Range Rover Evoque, which offers refinement and comfort required for modern city living while still providing all-terrain capability our customers expect from a Land Rover. I’m confident that our Filipino customers will rediscover the joy of driving with the all-new Evoque,” said Christopher Ward, president of Coventry Motors Corporation.

Building on the brand’s instantly recognizable look, the Range Rover Evoque dons a sportier silhouette, defined by the fast roofline and rising waist. It’s further amplified by the pronounced shoulders and wheel arches that’s filled with 20-inch wheels. Furthermore, the Evoque is fitted with super-slim LED headlights and flushed door handles. For the R-Dynamic HSE models, there are burnished copper accents that add a more distinctive appeal.

Land Rover also introduces jewel-like elements for the Evoque such as super-slim Premium LED head lamps that provide a more sophisticated front and rear lamp graphic. The R-Dynamic HSE models, on the other hand, come with burnished copper accents that add a distinctive appeal.

The Evoque’s longer wheelbase yields extra room, especially at the back (+ 20mm rear knee room) while also allowing for more storage of small items. The cargo hold is also larger by 10% (591 liters) enabling it to fit a set of golf clubs or two suitcases side-by-side. Furthermore, fold the rear seats down and the hold increases to 1,383 liters.

More than space, Range Rover has crafted a cabin that focuses more on usability. Using simple, uncluttered lines and surfaces, it’s juxtaposed with premium materials for a truly calm and serene space. Technologies such as a twin 10-inch touchscreen Touch Pro Duo system and a premium Meridian sound system come standard across all models. Differentiating the various trims, the Evoque comes with either two-tone Perforated Windsor leather seats (R-Dynamic HSE) or Perforated Grained Leather (SE) with 16-way seat controls.

Living up to Land Rover’s all-terrain capability, the Evoque features all-wheel drive, Active Driveline with Driveline Disconnect, and Adaptive Dynamics — technologies designed to minimize fuel consumption without any detriment to its legendary off-road capabilities. Furthermore, it also comes with Terrain Response, which automatically detects the surface being driven on and adjusts the setup accordingly.

In terms of numbers, the Evoque has a water-wading depth of 600mm, a ground clearance of 212mm, and generous approach (20.8 degrees) and departure (20.6 degrees) angles.

For safety, the Evoque comes with the segment-first ClearSight Rear-View, which turns the standard rear-view mirror into an HD video screen. Not only does this provide a wider field of view and superior visibility in low light, but can give an unobstructed view of the back even if the rear seat visibility is compromised by passengers or bulky items. The ClearSight Ground View technology, meanwhile, effectively makes the hood invisible by projecting a 180-degree view under the front. This is useful for navigating in tight spaces. This is all backed up with 360-degree Surround Camera.

Finally, it also comes with a variety of active safety features such as Hill Descent Control, Gradient Release Control, All Terrain Progress Control, and Driver Condition Monitor. The R-Dynamic HSE units also have Lane Keep Assist and Autonomous Emergency Braking.

Powering the 2020 Evoque is a choice between a 2.0-liter gasoline or 2.0-liter diesel engine, both turbocharged. The diesel-fed variant produces 180hp and 430Nm of torque coupled with a 9-speed automatic. Meanwhile, the 2.0-liter petrol makes 250hp and 365Nm of torque, while the Mild Hybrid Electric Vehicle (MHEV) evens it out to 300hp and 400Nm thanks to a 48-volt electric motor.

The Evoque comes in four variants with the following prices: SE 2.0 Diesel — P5,090,000; R-Dynamic HSE 2.0 Diesel — P5,490,000; R-Dynamic HSE 2.0 Petrol — P5,590,000; and R-Dynamic HSE MHEV 2.0 Petrol — P6,190,000.

The Evoque will also be offered in a Black Limited Edition on the three R-Dynamic models, for an additional P100,000. All purchases of the new Evoque come with a 5-year service plan.

PSALM seeks ERC approval to recover 2018 stranded debt of P4.72B

THE Power Sector Assets and Liabilities Management Corp. (PSALM) is seeking approval from the Energy Regulatory Commission (ERC) to pass on to end-users the P4.72 billion in stranded debt (SD) of the National Power Corp. (NPC) in 2018.

The state-run agency, which is tasked to privatize the NPC’s power assets, said the Universal Charge (UC)-SD true-up adjustment cost is equivalent to P0.0063 kilowatt per hour (kWh), covering a six-year-and-a-half recovery period.

The cost is calculated by dividing the total stranded debt by the Department of Energy’s projected energy sales from January 2020 to June 2026.

The ERC defines stranded debt as financial obligations which have not been liquidated by proceeds from the sale of state power assets.

PSALM said revenue from the sale of electricity of remaining assets does not suffice to cover operational costs and provide funds for the payment of NPC debt and obligations.

“To address the funding gaps, PSALM is forced to resort to temporary solutions by borrowing, which entails borrowing costs, which in turn will form part of the UC-SD, effectively increasing the UC burden of all electricity end-users,” PSALM said.

As such, PSALM is also petitioning for the provisional authority “to charge, collect the computed UC-SD true-up rate or such amount granted by the [ERC].”

“[I]f PSALM will be allowed to immediately recover the UC-SD under this petition through provisional approval, new loans and refinancing to service maturing debts and lease obligations would lessen. This would redound to the benefit of electricity end-users due to reduced borrowing costs, effectively reducing the UC burden,” PSALM said in its petition.

The agency is also requesting that the ERC deem its true-up adjustment for 2011 and 2012 in “full compliance” with the ERC’s June 27, 2017-issued resolution.

Under the resolution, the ERC authorized PSALM to recover P24.298 billion at the rate of P0.0265 kWh. The ERC ordered all distribution utilities and the NGCP to collect this rate starting August 2017 billing period.

The amount under recovery as of end-2018 for the 2011-2012 true-up adjustment stood at P21.545 billion.

PSALM has an annual March 15 deadline to request a true-up adjustment but the company sought an extension of up to June 30 this year. — Janina C. Lim

Investors take positions on ISM amid backdoor listing hopes

By Christine J.S. Castañeda
Senior Researcher

DEVELOPMENTS on new telecommunications player Mislatel consortium and hopes on the backdoor listing of Dennis Uy’s Udenna Corp. through ISM Communications Corp. (ISM) made the latter one of the most actively traded stocks last week.

Data from the Philippine Stock Exchange showed P776.17 million worth of 112.92 million shares exchanged hands on the trading floor from June 17-21, making it the 11th most actively traded stock during the period.

Its stock price closed at P6.99 apiece on Friday, up 7.4% from its P6.51 finish on June 14. Year to date, it is up 17.9%.

“So far, ISM’s movements in the market is lifted by the hopes that the backdoor listing of businessman Dennis Uy’s holding company [Udenna Corp. through ISM] would be finalized by the SEC (Securities and Exchange Commission),” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc., said in an e-mail.

“These hopes also link ISM to the positive developments of Mislatel Consortium of which Udenna Corp. is a member… [t]his is what’s keeping ISM’s share price up for the week,” he added.

Mr. Tantiangco also noted the stock’s trading activity on Thursday, which was the biggest for the week, with a volume turnover of 69.31 million and value turnover of P477.54 million. Thursday’s transaction marked a sell-off that brought the stock’s closing price to P6.86 per share, down two percent from the previous day.

“Apparently for ISM, it’s still buoyed by hopes and speculations without any concrete fundamentals making it more susceptible to episodes of profit taking,” Mr. Tantiangco added.

Meanwhile, in a text message, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan attributed the stock movement mainly to expectations of the Mislatel consortium, of which ISM is connected through consortium member Udenna, to get its license to operate by July.

For Unicapital Securities, Inc. Technical Analyst Jeff Radley C. See: “Investors are already anticipating the third telco that is why [ISM] was actively traded.”

Udenna is in the process of conducting a share swap with ISM. This will involve the issuance of 24.058 million ISM shares to shareholders of Udenna in exchange for two billion Udenna shares. ISM’s name will then be changed to Udenna Holdings Corp.

The transaction is still pending approval from the SEC.

In a disclosure to the stock exchange, Chelsea Logistics and Infrastructure Holdings Corp. said the Mislatel consortium finalized the share-purchase agreement last June 13. The deal was signed by Udenna Chairman Dennis A. Uy, Chelsea President and Chief Executive Officer Chryss Alfonsus V. Damuy, and China Telecom Deputy Managing Director Xiao Wei.

The Mislatel consortium is composed of China Telecommunications Corp. and Davao-based businessman Dennis A. Uy’s companies — Udenna Corp. and Chelsea Logistics and Infrastructure Holdings Corp.

The Department of Information and Communications Technology (DICT) earlier said that it is targeting to award the consortium with its frequencies and permit to operate by the end of June.

ISM posted a net income of P2.56 million in the first quarter of 2019, down 92.9% from the P35.97 million in the same period a year ago.

Diversified Securities’ Mr. Pangan pegged the stock’s support and resistance at P5.95 and P7.40, respectively.

For his part, Philstocks’ Mr. Tantiangco: “Support is set a P6. Initial resistance is at P7 [while] next resistance is at its Feb. 7, 2019 high of P7.4.

Unicapital’s Mr. See said support levels are seen at P6.55, P6.00 and P5.75, while resistance levels are P7.40 and P8.60.

Davao City, Tagum positioning to attract more Muslim tourists

By Carmelito Q. Francisco
Correspondent

THE CITIES of Davao and Tagum are positioning to become the top destinations for Muslim tourists and investors in the Davao Region as Malaysian and Indonesian businesses seek out opportunities.

The Department of Tourism’s Davao Regional Director Tanya Virginia Rabat-Tan said the two urban areas, although not predominantly Muslim, can adopt measures to make them more Muslim-friendly.

“We need activities like this one to ensure that our business establishments know the importance of halal and being Muslim-friendly, not only to attract more tourists, but also to assure our Muslim brothers and sisters that we are with them in promoting halal,” Ms. Rabat-Tan told BusinessWorld at the opening of the Hariraya Open House in Tagum City last week.

Tagum Mayor Allan L. Rellon said the city government is planning to put up a halal complex for products that pass Islamic standards and issue a local law requiring a halal lane in supermarkets.

“This is still in the planning stage but I want to pursue it,” he said at the event.

In Davao City, Investment Promotion Center head Lemuel G. Ortonio said the city aims to strengthen the implementation of halal-related ordinances.

Among these laws are the formation of the Halal Industry Development Council and the segregation of halal products in supermarkets.

“We need these laws to push our city to become a Muslim-friendly city,” Mr. Ortonio said during last week’s Davao Investment Conference 2019.

At the same conference, Marilou W. Ampuan, trustee of the Davao City Chamber of Commerce and Industry, Inc., said delegates from Indonesia and Malaysia are looking for investment opportunities.

“They are always looking for opportunities where they can grow their investments,” said Ms. Ampuan, one of the advocates of halal tourism.

Mariam Pasigan-Daud, executive director of the Muslim Mindanao Halal Certification Board (MMHCB), said certifying bodies at this point are only looking at accrediting hotels and other business establishments in relation to their food offerings.

“Right now, we cannot completely certify a hotel as completely halal because it is very difficult to comply with the requirements, as all aspects of the hotel need to be looked into,” Ms. Pasigan-Daud told BusinessWorld.

She noted that it is much easier for establishments to become fully halal-certified in Muslim-majority countries like Malaysia and Indonesia.

However, Vernon B. Prieto of Surabaya-based Aneka Kartika Tours and Travel, said non-Muslim countries like Taiwan have made strides in attracting the Muslim tourism market.

“We don’t know the number of tourists from Muslim countries that visit Taiwan, but the fact that there are many Muslim-friendly establishments indicate that the number is huge,” he told BusinessWorld during the Hariraya Open House event.

US to allow grazing on unplantable acres to help farmers after floods

CHICAGO — The US Department of Agriculture (USDA) on Thursday announced a new measure to help farmers who were unable to plant corn and soybeans due to widespread flooding across the US Midwest.

Cover crops such as grasses are seeded to avoid erosion on acres where flooding deterred growers from planting grains and oilseeds.

In most years, farmers who make a crop insurance claim on these so-called “prevented plant” acres are not allowed until November to chop the fields for silage used to feed livestock.

The USDA’s change, which is only for 2019, means growers can hay, graze or cut cover crops for silage on prevented plant acres on or after Sept. 1 and maintain eligibility for their full-year 2019 prevented planting indemnity.

The earlier date should make more forage available for livestock.

University of Illinois agricultural economist Scott Irwin said the changes should encourage farmers to file for prevented-plant claims and seed cover crops on more acres.

“It clearly moves the needle toward prevent planting at this point. What is hard to figure out is how much,” Irwin said.

With the new rule, he said farmers may be able to get three types of income from on prevent-plant acres, including an insurance indemnity, plus the value of the silage produced, as well as a potential payment from the USDA’s $16 billion farm aid package announced May 23 to offset losses from an ongoing trade dispute with China.

“This will help farmers keep their head a bit further above water, but it’s still not much above water,” Irwin added.

US Agriculture Secretary Sonny Perdue earlier this month had said the USDA was “exploring legal flexibilities” to provide aid payments to farmers for acreage that is not planted.

The USDA also announced that its Farm Service Agency will extend the deadline to report prevented planting acres in select counties, US House Agriculture Committee Chairman Collin Peterson said in a statement. — Reuters

Kim Jones takes Dior to dreamy wasteland where past, future coexist

PARIS — Kim Jones played with time on Friday in his simultaneously classic and dystopian collaboration with Daniel Arsham, filling Christian Dior’s latest menswear collection with tonal, feminine-inspired pieces with a modern edge.

The house’s Summer 2020 collection linked Dior’s history as the industry’s salient interpreter of femininity with the French house’s daring, gender-bending future by way of draped sashes and floral pins off-set with ultra-modern, sometimes tattered accessories and textures.

Amid a pink and white set, the models became explorers in a eerie, beautiful wasteland.

They trekked through a sea of gradient pink sand around colossal, plaster letters spelling out Dior. Each letter had a ruined aspect about it, as if the sand and wind had worn it down for millennia.

Singer Lily Allen, model Kate Moss, her daughter Lila and Louis Vuitton menswear creative director Virgil Abloh figured among the stars present for the exploration of Dior through the ages.

The idea of relics took center-stage, a favorite subject for collaborator and category-defying artist Arsham.

Known for conceptually driven sculptures, Arsham has collaborated with Dior before, working on window installations in some of their biggest stores and stylized fitting rooms in the Los Angeles Dior Homme store for then creative director Hedi Slimane.

Beyond the sculptural element of the set and the pink-sand runway, the collection, a highlight of Paris’s fashion week, too, evoked sculptural origins while simultaneously embracing long, summery, slim-cut menswear.

The models donned pieces as diverse as multi-piece suits, mesh tops, re-interpreted trenches, jumpsuits in toile and adventure-ready looks for a dystopian traveler featuring fabric draped around their necks and faces, caps and wide glasses.

The intricately designed and intellectually driven show reaffirmed parent group LVMH’s effort to invest more in men’s fashion on and off the runway.

Studded with jewelry and bags, the show confirms Dior’s push for more accessories in menswear — items that bring in the most money for the house.

Jone’s collection featured Dior’s first-ever collaboration with luxury luggage brand Rimowa, giving the collection futuristic, metal handbags, clutches and backpacks.

More traditionally cut suits were accented with feminine handbags or saddle bags. The clean lines and supple cuts were punctuated by threadbare, frayed hats and other accessories.

After the show’s finale, Jones appeared on stage for no more than five seconds.

The enigmatic designer came on board as creative director in March last year, striking the fashion world off-the-bat with a first collection that attracted the most celebrity-heavy front row in the brand’s history.

Before, as head of Louis Vuitton men, he brought streetwear to the world of high fashion and then reinvigorated the art of tailoring for a more modern audience. — Reuters

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