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Central bank moves, speculation over timing of REIT listing propel Ayala Land stock movements

By Mark T. Amoguis
Senior Researcher

AYALA LAND, Inc. (ALI) was one of the most actively traded stocks last week following the easing in monetary policy as well as traders speculating on the timing of the company’s plans to conduct a real estate investment trust (REIT) listing on the stock exchange this year.

A total of P2.577 billion worth of 54.539 million Ayala Land shares were traded during the May 14-17 period, data from the Philippine Stock Exchange (PSE) showed.

Shares in the real estate arm of the Ayala group closed P46.75 apiece last Friday, shedding 0.5% from the P47 finish on May 10.

Since the start of the year, ALI’s share price went up by 13.2%.

“For me, the main factor that affected [ALI’s] stock performance is the 25-bps (basis point) interest rate cut. This is a positive catalyst for the company and for the property sector in general as this would induce more consumer loans which would consequently flow to property investments,” Wendy Estacio, research head at Unicapital Securities, Inc., said in an e-mail interview.

In a phone interview, AP Securities, Inc. Research Analyst Rachelle C. Cruz said that the investors remained “positive” on ALI following its first-quarter earnings report.

She added that the reserve requirement ratio cut on the big banks “seems to be positive on the property developers like Ayala Land because reserve requirement cut will pave way for lower interest rates, which could increase the appetite of property buyers on the local side.”

“Fundamental-wise, Ayala Land is still okay,” AP Securities’ Ms. Cruz said.

In its third policy review this year on May 9, Bangko Sentral ng Pilipinas’ (BSP) Monetary Board slashed benchmark interest rates by 25 bps to a range of four percent to five percent amid easing inflation. This partially dialed back a cumulative 175-bps hike to benchmark rates last year as monetary authorities scrambled to put a lid on accelerating inflation.

A week later, BSP Governor Benjamin E. Diokno told reporters that the central bank plans to slash the big banks’ reserve requirement ratio (RRR) by 200 bps in three stages: 100 bps by May 31, 50 bps by June 28, and 50 bps by July 26. This would bring the RRR down to 16% from the current 18%.

Aside from the monetary policy easing, analysts said that investors may have also speculated on the timing of ALI to tap the REIT market that could turn out to be the country’s first.

Jeffrey Lucero, equity analyst at RCBC Securities, Inc., said that ALI’s plan to do a REIT offering may have continued to generate interest from investors.

“We generally see ‘REIT-ing’ as net asset value accretive, particularly with REIT’s tax benefits. The capital that will be raised… will also help fund [ALI’s] expansion plans,” he said in an e-mail.

For her part, AP Securities’ Ms. Cruz noted the current REIT’s implementing rules and regulations (IRR) that was released in 2010 following the REIT law’s passage the previous year as “very disadvantageous” to property developers like ALI.

Ms. Cruz said that developers are hesitant to tap the REIT market, citing one of the provisions such as the high minimum public float required by the existing IRR.

“So, if Ayala Land will push through with that without changes to REIT IRR, it could be a risk to them,” she said.

ALI announced last April its plans into offering REIT — eyeing to raise P25-26 billion — after filing to rename One dela Rosa Development, Inc. into Ayala Land REIT, Inc. that will serve as the vehicle for the REIT listing. Once further clearances are secured from the Securities and Exchange Commission (SEC) and PSE, it will use Ayala Land’s office buildings located in the Makati Central Business District for the REIT.

Ayala Land plans to push through with the listing regardless of whether or not the SEC will revise the REIT IRR.

Passed into law in 2009, Republic Act (RA) No. 9856 — or the REIT Law — allows creating corporations that will pool investor funds and manage real estate assets.

Property companies were interested at first but expressed objections on stringent rules via REIT law’s IRR such as the 12% value-added tax slapped on the initial transfer of real properties into the REIT company as well as the high minimum public float requirement of 40% upon listing the company at the local bourse, then raising it to 67% within three years.

Since then, the SEC has favored a lower public float of 33%, while the 12% value-added tax on the transfer of real properties has been removed under RA 10963 or the Tax Reform for Acceleration and Inclusion law. However, the SEC has yet to release a revised IRR governing REITs as the Finance department wanted assurance that the funds generated via REITs will not be spent outside the country.

Earlier news reports noted the new REIT rules are targeted to be out within the first half this year.

Meanwhile, analysts were bullish that ALI will meet its P40-billion profit target by 2020 as they project above 10% growth this year. For the company to achieve this target, it needs to grow by at least 17% this year.

The company’s net income attributable to equity holders of the parent company rose 12.4% to P7.32 billion in the first quarter from P6.52 billion in the same period in 2018.

“Although [the first-quarter result] was slightly below our full-year forecast, we believe [Ayala Land] would be able to hit our net income target of P36.9 billion in 2019 (or an 11% growth from 2018), mainly driven by the residential and office segments. Also, it has P142-billion unbooked revenues that could further boost our forecasts,” Unicapital’s Ms. Estacio said.

RCBC Securities’ Mr. Lucero penciled in a 14% annual increase to Ayala Land’s core net income to P33.3 billion by yearend.

“Both the rental businesses and real estate sales will drive growth for the full year. While in the [first quarter], real estate sales wasn’t as stellar, I expect it to pick up in the coming quarters since the reason for the lower-than-expected real estate sales in the 1Q was only revenue recognition timing,” Mr. Lucero said.

For this week, Ms. Cruz of AP Securities expects Ayala Land to trade with a support price at P46 and resistance price at P48, while Unicapital’s Ms. Estacio pegs the company’s support and resistance prices at P46 and P47.70, respectively.

CVs drive Hyundai Q1 sales growth

By Kap Maceda Aguila

HYUNDAI Asia Resources, Inc. (HARI), the official distributor of Hyundai passenger cars and commercial vehicles (CVs) in the Philippines, reported a 12.5% sales uptick in the first quarter of 2019 compared to the same period last year. HARI moved 9,949 units in the period compared to 8,847 in the first quarter of 2018.

In a release, the company’s President and CEO Ma. Fe Perez-Agudo said: “HARI sustained its growth momentum in the first quarter driven by the successful introduction of fresh and innovative models such as the Reina at the start of the year and a more positive buying sentiment from consumers. We are well-poised to continue this upward trend over the next three quarters as we recently unveiled pioneering vehicles at the Manila International Auto Show (MIAS).”

Aside from the Reina, HARI also introduced this year the first full-size SUV of Hyundai, the Palisade. The company also unveiled the fully electric version of its Kona SUV. Both vehicles were launched at MIAS.

In March, HARI sold 3,412 units, marking a 6% increase over the same month last year. Its passenger car (PC) segment registered 5,405 in sales in the first quarter, dipping by 12.9%. Still, the company points out that “net of sales phased out in 2018, PC sales… increased by over 22%.”

The company expressed confidence that two nameplates, the Reina and the all-new Accent, will serve as “main volume drivers” for the PC segment. “Barely three months after its launch, the Reina has already contributed to nearly 16% of… first-quarter sales,” reported HARI.

A big driver of numbers for the company has largely been the light commercial vehicle (LCV) segment as sales have significantly increased by 70.5%, or 4,306 units in the first quarter of 2019 compared to 2,526 units sold during the same period in 2018. The Kona Crossover accounted for 24% of LCV sales, while the H-100 took 44% of the pie.

Finally, Hyundai trucks and buses grew by a huge 106% in Q1, and HARI intends to bank on this segment even more through the construction of seven additional dedicated CV dealerships across the country to augment the six already in operation. Following its exemplary sales performance in the segment, HARI was awarded by Hyundai Motor Company (HMC) as Top Regional Distributor of Commercial Vehicles for 2018 in the Asia Pacific, Russia, and Commonwealth of Independent States — beating 25 other countries.

Healthy Sweets Mindanao expands export market to UK

By Maya M. Padillo
Correspondent

DAVAO CITY — Healthy Sweets Mindanao Corp., producer of organic coconut sugar and candies, is slowly expanding its export penetration with buyers from the United Kingdom in addition to Japan.

“We had orders just recently from the UK. We’ve been exporting to Japan, but only in small volumes,” said 63-year old Betty M. More, president and chief executive officer of the family-run social enterprise.

She added that the company also has customers in Australia and other parts of Europe, but the main market is still local.

“Our major clients are supermarkets, grocery stores, specialty stores, pasalubong centers. Others are distributors, processors, restaurants,” said Ms. More in an interview with BusinessWorld.

The company’s products are sourced mainly from its own two-hectare farm in Governor Generoso, Davao Oriental, but it also works with small farmers.

“It is planted with coconuts and intercropped with various crops that we use in our candies, teas, jam,” she said.

Apart from coconut sugar, Healthy Sweets makes candy and varieties of tea like ginger, turmeric, guyabano, cacao, oregano, moringa, and mangosteen using coconut sugar as a base ingredient.

“(It’s) value-adding the coconut sap that we harvested,” said Ms. More, noting that the company’s farm is certified by the Control Union for the European Union and the United States Department of Agriculture, and also complies with Japanese agricultural standards.

The company is due to receive the Outstanding Organic Agriculture Farmer award for Davao Oriental province on May 29 in Mati City.

Last year, Mr. More won as Outstanding Coconut Farmer at the provincial and regional levels.

Ms. More said the goal is to have the highest-quality and best-tasting organic coconut sugar and coconut-based products along with increasing the number of farmers and women processors the company works with.

Healthy Sweets will be participating in the International Food Exhibition (IFEX) 2019 in Manila on May 24 to 26.

Saving the planet one recycled piece of jewelry at a time

A JEWEL is a story made solid, passed from one hand to another: whether it’s from your lover, friend, or parent. While some do buy jewelry on a whim, for many, jewelry is a purchase made to mark a special occasion: whether a wedding, a career goal, or just a really, really good day.

The light reflected by precious stones and metal hide a dark story, however. In each piece is a miner’s toil and a smith’s sweat. Moreover, large amounts of energy are consumed by the mining industry, contributing to the climate crisis. Mines are also one of the greatest polluters in the planet. This does not yet mention the crimes committed in the name of beautiful jewels. The path that leads from the mine to the finger is one usually paved with blood.

Vera Metals, an Instagram-based jeweler bypasses all these heartaches and moral quandaries when it comes to jewelry. Founded by Vera Juan last year, Vera Metals sells gold, vermeil (gold-plated silver), and silver pieces made with recycled metals and salvaged stones.

Ms. Juan comes from a family of jewelers, with three generations’ worth of precious stones supporting it. Her parents tried to dissuade her from a career in the jewelry business, leading her to take Biology during her years in university. But, “My passion was really there,” she said in a mixture of English and Tagalog.

“I can find nice jewelry anywhere,” she said, but sometimes, the designs in her mind wouldn’t match the ones available in the market, which was why she started making her own — going as far as to study metalsmithing.

Ms. Juan’s practice of recycling was influenced by her family. She told BusinessWorld that they would make rounds of posh villages around Metro Manila, where the wealthy would sell their damaged bracelets, rings, and such. “It’s metal. You can always melt it and reuse it.” The gold would be melted along with a chemical solution to separate impurities from the gold.

Her family would prise the stones from the settings, and maybe reset the precious stones. However, the same fate cannot be said for semiprecious stones, which she laments her family would let sit in their workshops. “It still has value! Sayang naman (What a waste).”

Her handmade creations have an almost antique effect, with the old stones and the renewed metal, and they always, always look more expensive than what they really cost (an opal ring might set you back about P3,500. That isn’t bad at all).

Her science degree influences her work: that’s what mostly drives her to recycle the stones. Her parents wanted her to go in another, older direction, but she told them, “There’s a better way” for both the consumer, and the planet.

The choices we make really do reflect more than taste, but the values we hold dear. The personal becomes ever more political as the effects of our choices in food, clothing, and now, jewelry, become more evident in their effects on society and the environment.

“In my little way, at least, I can contribute,” said Ms. Juan. With laughter, she said, “Without sacrificing fashion.”

Vera Metals are available through its Instagram account @verametals. — Joseph L. Garcia

Megaworld targets P3-B sales from upscale condo

MEGAWORLD Corp. expects to generate P3 billion in sales from its upscale residential project called The Albany Yorkshire Villa in McKinley West, Taguig.

In a statement issued over the weekend, the listed property developer said The Albany Yorkshire Villa will offer 64 suites sized from 121 to 133 square meters (sq.m.) for two-bedroom and three-bedroom units, respectively.

It will also have four-bedroom penthouse units spanning 349 sq.m. each, with three levels of space and its own infinity pool.

“The Albany caters to a niche market of highly-discerning privileged few who want to live in an exclusive community of affluent urban dwellers,” Megaworld Vice-President for Sales and Marketing Mary Rachelle I. Peñaflorida said in a statement.

Megaworld engaged United Kingdom-based architectural firm Broadway Malyan for the project. Broadway Malyan is also the designer of Century City Mall in Makati, as well as other luxury residential projects inside McKinley West.

The company also noted that each unit’s master bedroom will have custom-built walk-in closet and bathtubs. Units are accessible using keycards.

Amenities at The Albany Yorkshire Villa include an infinity pool, children’s pool, in-water lounge deck, pool deck, fitness center, spa, sauna room, kids’ playground, game and entertainment room, function rooms, and outdoor cabanas.

“We carefully planned the entire development to make it a class of its own in Metro Manila’s ultra-luxury residential market,” Ms. Peñaflorida said.

Megaworld expects to complete the project by 2023.

The property firm of tycoon Andrew L. Tan in 2014 said that it will spend P45 billion to develop McKinley West Village for a span of 10 years. The company is targeting the high-income customers for the township, capitalizing on its proximity to upscale residential village Forbes Park.

Megaworld grew its net income attributable to the parent by 16% to P3.8 billion in the first quarter of 2019, after consolidated revenues also surged 15% to P14.9 billion. The company benefited from strong sales from its residential segment and the expansion of its commercial leasing unit.

The company has committed to spend P65 billion in capital expenditures this year to support property development across its 23 townships. About 20% of the budget will also be used for land acquisitions and investment properties.

Megaworld is part of Mr. Tan’s holding firm Alliance Global Group, Inc., which also has core interests in liquor, gaming, quick-service restaurants, and infrastructure development. — Arra B. Francia

T-bill rates to go down

RATES OF Treasury bills (T-bill) on offer today will likely slip further across all tenors amid robust demand from investors following the recent cut in banks’ reserve requirements.

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

Traders said yields on the T-bills to be auctioned off on Monday will likely decline by five to 10 basis points (bp) across all tenors from the previous offer.

The Treasury borrowed P15 billion as planned at its T-bills auction last week, fetching bids totalling P54.6 billion. Yields on the three-month, six-month and one-year papers slipped to 5.389%, 5.768% and 5.936%, respectively.

“Mostly (the auction will be driven by) client demand because it’s short-term. The lower RRR (reserve requirement ratio) will be factored in,” a trader said in a phone interview.

The Bangko Sentral ng Pilipinas on Thursday ordered a series of reductions in big banks’ RRR. The rate will be reduced to 17% effective May 31, 16.5% effective June 28 and to 16% effective July 26.

Big banks are currently required to keep in reserve at least 18% of deposits — a share considered as the highest in the region. The BSP has said that trimming the RRR by a percentage point will likely unleash about P90-100 billion into the financial system.

“Banks and other financial institutions will have additional funds to invest. Considering that rates of the T-bills are quite good, they will probably invest,” the trader said in a mix of English and Filipino.

Kevin S. Palma, trader at Robinsons Bank Corp., said strong demand will be seen across the board as the market may position ahead of the first RRR cut, projecting that rates across all tenors will likely go down by 5-10 bps from the previous offer.

“Investors continue to show appetite for short dates given the uncertainties brought by the US-China trade spat,” he added.

Trade tensions between the world’s two largest economies simmered anew after both the US and China imposed tit-for-tat tariffs on each other’s imports. However, US President Donald J. Trump allayed fears of market watchers last week, saying its deal with China has not collapsed and that both countries are having a “little squabble.”

“Reinvestment requirements from a P13.5-billion T-bill maturity on May 22 should also fuel demand,” Mr. Palma added.

The government plans to borrow P315 billion from the domestic market this quarter, broken down into P195 billion in T-bills and P120 billion in Treasury bonds.

It wants 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

Chevrolet holds National Skillsfest 2019

THE COVENANT CAR COMPANY, Inc. (TCCCI), exclusive importer and distributor of Chevrolet automobiles and parts in the country, held its annual Chevrolet National Skillsfest recently at the Don Bosco Technical Institute of Makati, with 34 participants from the 27 Chevrolet dealerships nationwide.

The Chevrolet National Skillsfest is a testament to the Bowtie brand’s commitment in delivering the best ownership experience and support for Chevy customers through its comprehensive owner benefit program — Chevrolet Complete Care.

Sales Consultants, Group Retail Managers, General Sales Managers, Service Advisors, Service Technicians, and Parts Consultants went through a three-part assessment to test their knowledge, skills, and technical abilities in Chevrolet products and services.

The sales methodology included a six-point walk around station to further test the product knowledge and ability to adapt to real-life scenarios such as product and sales demonstration until delivery to the customer, featuring the Chevrolet Trailblazer, Colorado High Country Storm, and Spark vehicles.

In the after-sales methodology, multiple stations gauge various competencies in inspecting engine system and chassis system components, diagnostic abilities and correct usage of tools. Role-play evaluations examined consulting skills, excellence in customer reception, and familiarity in multipoint inspection.

At the end of the rigorous tests and challenges, the following were recognized and awarded as the winners and finalists in their respective fields in no particular order:

SALES CONSULTANTS:
Maribel Pilapil — Chevrolet Batangas
Bob Ello — Chevrolet Commonwealth
Loreto Baranda — Chevrolet Makati

GROUP RETAIL MANAGERS:
Ramilo Timpad — Chevrolet Cagayan de Oro
Rex Impuesto — Chevrolet Makati

GENERAL SALES MANAGERS:
Detmar Pfleider — Chevrolet Bacolod
Stepfanie Wong — Chevrolet Iloilo
Roex Pestano — Chevrolet Makati

SERVICE ADVISORS:
Jenalene Rodriguez — Chevrolet Pasig
Candice Christine Aquino — Chevrolet North Edsa
Omar Manalang — Chevrolet Tarlac

SERVICE TECHNICIANS:
Alminio Lagahit — Chevrolet Cebu
Carlo Manalo — Chevrolet Greenhills
Jovanie Camara — Chevrolet Makati

PARTS CONSULTANTS:
Rony Boy Santelices — Chevrolet Greenhills
Jenelyn Dabuco — Chevrolet Cebu
Aminah Manimtim — Chevrolet Sta. Rosa

The champions for this year’s Chevrolet National Skillsfest will be announced in the upcoming Chevrolet Grandmasters this month.

To learn more about Chevrolet products and services in the Philippines, log on to www.chevrolet.com.ph, like the Chevrolet Philippines Facebook page, or follow the Chevrolet Philippines Instagram page.

Fertilizer prices rise in April — PSA

THE average price of four grades of fertilizer increased year-on-year in April, the Philippine Statistics Authority (PSA) said.

The average price of Urea fertilizer rose 16% year-on-year to P1,153.59 per sack, but fell 0.1% compared with the previous month.

Month-on-month, prices fell in nine regions. The highest price recorded was still in Autonomous Region in Muslim Mindanao (ARMM) at P1,396.67 per sack, while the lowest price was in the Ilocos Region at P1,029.38 per sack.

The price of complete fertilizer rose 4.2% year-on-year to P1,150.83 per sack, and rose 0.2% month-on-month.

Price increases were recorded in nine regions. The highest price recorded at P1,436.67 per sack was in ARMM. The lowest price recorded at P1,036.69 per sack was in South Cotabato, Cotabato City, Cotabato Province, Sultan Kudarat, Sarangani and General Santos City (SOCCSKSARGEN).

The price of ammosul fertilizer rose 7.1% year-on-year to P631.45 per sack. It fell 0.02% from a month earlier.

Eight regions recorded decreased prices during the month. The lowest of which was in Ilocos Region at P552.50 per sack, while the highest price of P960 per sack was in ARMM.

The price of ammophos fertilizer increased 8.9% to P997.93 per sack, year-on-year, and was also higher by 0.6% versus the previous month.

Prices rose in 10 regions, with the highest recorded in ARMM at P1,265 per sack, while the low of P927.50 per sack was recorded in the Ilocos Region. — Vincent Mariel P. Galang

Clearance rack has a terrible carbon footprint — Gap CEO

THE VAST supply chain that produces and sells clothing has a massive carbon footprint. That makes the clearance rack a problem, says Gap, Inc. Chief Executive Officer Art Peck.

The carbon footprint of a blouse with an unpopular print that ultimately sells for 99 cents is “inexcusable at the end of the day,” Mr. Peck said at the Bloomberg Sustainable Business Summit in Seattle on Thursday.

The materials for a single piece of clothing often travel the world multiple times — through warehouses and distribution centers — to get to a store. And if a consumer doesn’t want it, that’s all for basically nothing, Mr. Peck said.

Companies have to solve “the mismatch between what’s bought and what’s wanted,” he said. Reducing the waste with better predictive analytics and artificial intelligence could be one of the best ways for retailers to cut their carbon footprint and save money at the same time, he said.

In the 30 years since “fast fashion” became a prevailing trend in retail, almost all of the industry’s economic growth has come from nonsustainable polyester-based products that began life in an oil well, he said.

RECYCLING COTTON
Most clothing isn’t recycled at the end of the day, and even lots of donated clothing ends up ultimately in landfills. Gap, which uses about 1% of the world’s cotton, is working on the problem, Mr. Peck said.

The company will debut jeans this year with about 5% recycled cotton, Mr. Peck said. Cotton is a water-intensive crop that takes away available land for food, so fashion companies need to figure out how to reuse it, he said. But it’s hard for consumers to recycle the material because many fabric mills are overseas in Asia.

The company also faces other challenges in pursuing sustainability, such as the emissions from e-commerce shipping.

For consumers, buying sustainable clothing isn’t yet a must-do, Mr. Peck said. For instance, they won’t buy ugly jeans to save the Earth. But retailers have to prepare for a day when shoppers will demand sustainability, he said. — Bloomberg

Davao Light sees 30% consumption growth by 2023

DAVAO CITY — Aboitiz-led Davao Light and Power Co. (DLPC) expects a 30% growth in consumption to 546 megawatts (MW) by 2023, from the 421 MW consumed in 2018 in its franchise areas.

In a statement released over the weekend, DLPC said the increased demand would mean sales would surge to 3.14 million MW-hours by 2023, from 2.4 million MW-hours during the period. This would also mean a corresponding customer base growth to 504,911 from 404,574.

“We want to take advantage of the robust economic growth in our franchise areas by making sure power is delivered to our customers reliably, sustainably, and at the most cost-effective way. The initiatives we have mapped out for this year and beyond are part of our effort to become world-class and the best at what we do,” Jaime Jose Y. Aboitiz, executive vice-president and chief operating officer for distribution of Aboitiz Power Corp., said in the statement.

Among the expansion projects are the installation of a 424 megavolt-ampere transformation capacity, 228 circuit kilometers of combined sub-transmission and backbone distribution lines, and improved distribution management system.

DLPC’s franchise areas cover Davao City, Panabo City, and the towns of Sto. Tomas, Carmen, and Dujali in Davao del Norte.

AboitizPower earlier announced it is allocating P3.1 billion this year for modernization of its distribution assets, including those of DLPC.

The company cited the economic performance of the Davao Region in 2017 and 2018, with a gross regional domestic product growth rates of 10.9% and the 8.6%, respectively, “which can be attributed to the positive performance of the service and industry sectors.”

“We expect to serve more customers from these industries this year, especially in light of the government’s Build, Build, Build program. The construction boom in the city is a win-win for all sectors,” said Rodger S. Velasco, DLPC chief operating officer.

DLPC said that between 2019 and 2021, the company will have as new customers “several residential buildings, a hotel, a business park, a multipurpose indoor arena, a factory, and schools.” — Carmelito Q. Francisco

Peso to drop on US-China issues

THE PESO is expected to weaken against the dollar this week amid uncertainty over the trade negotiations between the United States and China and following the recent cut in banks’ reserve requirement ratio (RRR).

The local unit closed Friday’s session at a seven-week low of P52.63 versus the greenback against the P52.48 finish on Thursday as market participants responded to the Bangko Sentral ng Pilipinas’ (BSP) 200-basis-point reduction in big banks’ RRR. Week on week, the peso also declined from the P52.12-per-dollar close on May 11.

“We will have to wait and see for the developments on the trade talks since it’s very vague…,” a foreign exchange trader said in a phone interview.

Chinese Foreign Minister Wang Yi told State Secretary Mike Pompeo that the US should not go “too far” in the dispute of both countries, adding that their words and actions had harmed the interest of China and its enterprises, Reuters reported.

“I still expect the peso to depreciate. This is largely due to the external headwinds on trade issues,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a text message yesterday.

He added that the impact of the recent cut in banks’ RRR will “most likely be towards strengthening,” although it can be offset by the external issues.

The BSP last week said it will trim big banks’ 18% RRR by a percentage point on May 31 and by another 50 basis points on June 28 and on July 26. Trimming the RRR by a percentage point is expected to unleash P90-100 billion into the financial system.

“It’s more of the expectation on growth impact. Longer term will be strengthening,” Mr. Asuncion said.

Meanwhile, a market analyst said the dollar will likely strengthen this week due to safe-haven buying amid escalating US-China trade tension, firm US consumer sentiment, as well as caution ahead of the release of the minutes of the last Federal Open Market Committee meeting.

“In the first four days of the week, the dollar is expected to appreciate further after US consumer sentiment for May 2019 jumped to its highest level in more than two years,” the analyst said.

For this week, the trader and Mr. Asuncion expect the peso to trade between P52.40 and P52.80, while the analyst gave a P52.30-P53 range. — K.A.N. Vidal

FOTON Philippines makes heavy-duty truck purchase easier with new financing offers

WANT TO purchase a brand new heavy-duty truck for long-haul deliveries, but also need to tighten the budget? Just like every entrepreneur running big logistics and freight companies, you’re not alone, and yes, FOTON has already made a solution.

FOTON Motor Philippines, Inc. (FMPI), the official distributor of FOTON vehicles in the Philippines, and BPI Family Savings Bank, the largest thrift bank in the country, ties up to provide peace of mind to clients who would like to avail heavy-duty trucks through bank financing.

“Our brand’s promise is to empower businesses. From this, our team does the best in providing notable services from pre-purchase, actual sale, and after-sales. This includes the worry-free experience of our clients in availing our products at the lowest price possible,” said FOTON Philippines President Rommel Sytin.

With this new program, the vehicles that could be availed through BPI-FB will no longer be limited to FOTON passenger vehicles and light-duty trucks, as the financing will be extended to heavy-duty trucks, particularly up to the 10-wheelers.

“When it comes to bank financing, it usually takes several weeks, if not months, and the clients are lucky if they receive a feedback when they’re declined. With this new program, we assure to offer more flexible payment schemes, affordable packages, and most importantly, faster application process and approval,” said Dennis Fronda, FVP of BPI Family Savings Bank.

(L-R): BPI-FB Auto Loans Division Head — AVP Redilberto V. Lopez, BPI-FB Retail Lending Group Head — FVP Dennis T. Fronda, FOTON Philippines President Rommel Sytin, and FOTON Philippines VP for Marketing and Sales Levy Santos

“This agreement has been put together to allow our dear clients to have their vehicle funded in ways that best suits their circumstances. Our interest rates are fixed for the duration of the agreement you opt for, allowing you to plan your finances moving forward with certainty,” added Mr. Fronda.

FOTON continues to produce and design vehicles that would suffice the local transportation needs through durable and dependable vehicles within reach, and also capable to withstand challenging business operations. Because of this, FOTON was officially recognized as 2018’s Top 3 best-selling truck brand in the Philippines.

Mr. Sytin gratefully exclaimed: “We hope that this program would convince businessmen to invest in trucks and logistics. We’re also sending big thanks to BPI Family Savings Bank for trusting our brand. We hope that our institutions would remain aligned and bonded with the same vision: to be instruments of the Filipinos’ success through our products and services.”

FOTON is considered to be Asia’s largest commercial vehicle manufacturer. It has a wide range of commercial vehicles, which include, but is not limited to, passenger vehicles, light-, medium-, and heavy-duty trucks, agricultural and heavy machinery. For inquiries, contact 0999-999-9998. You may also visit www.foton.com.ph and www.facebook.com/FOTONPhilippines for more details.

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