THE MANILA TIMES | JUNE 22, 2019

Net ‘hot money’ outflows surge to $750M in May ÂťStory on B1 ++

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SATURDAY, JUNE 22, 2019

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HK deports del Rosario F

ORMER Foreign Affairs secretary Albert del Rosario was denied entry by Hong Kong on Friday, joining ex-Ombudsman Conchita Carpio Morales in being barred from Con th the Chinese territory over an International Criminal Court (ICC) case filed against Chinese President Xi Jingping.

$EL 2OSARIO WHO lEW TO (ONG +ONG TO ATTEND A &IRST 0ACIkC #O ,TD BOARD MEETing, said he was detained for six hours and then sent home. He had traveled using a diplomatic passport, which he claimed was his right being the Philippines’ former top diplomat.

Malacaùang, however, said del Rosario should have learned from Morales’ experiENCE ‡ SHE WAS ALSO HELD IN (ONG +ONG LAST

month and decided to return despite later being allowed entry — and also claimed that he had “misused� his passport. /FkCIAL REASONS HAVE NOT BEEN GIVEN for del Rosario and Morales’ detentions, but the generally held view is that Beijing was retaliating over the ICC case against 8I WHO BOTH ‡ ALONG WITH &ILIPINO kSHers — have accused him of committing

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Garcia’s death a ‘heartbreaking loss’ FAREWELL TO THE LEGEND A glimpse of the wake of the late actor Eduardo ‘Eddie’ Garcia at the Heritage Park in Taguig City. Garcia passed away at 90 on June 20, 2019. PHOTO BY J. GERARD SEGUIA

BARRED

Former Foreign Affairs Secretary Albert del Rosario arrives at the Ninoy Aquino International Airport after being denied entry to Hong Kong on Friday. PHOTO BY BENJIE VERGARA

‘Demonstrably erroneous’: Why Socrates vs Comelec cries out for review by SC First word RACE yourself for this. The US legal community is roiled in controversy today over an opinion issued Monday by Justice Clarence Thomas, which has the potential to usher farreaching changes in US jurisprudence and Supreme Court rulings.

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OBSERVER YEN MAKABENTA

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A string of assassinations of drug lords?

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HE IN MY LINE assasOF SIGHT sination of the former mayor of Medellin, Cebu, Ricardo Ramirez, WHILE CONkNED IN A HOSPITAL SUITE has sent a strong message that the Duterte government is hell-bent on solving the drug problem.

RAMON T. TULFO

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MALACAĂ‘ANG on Friday mourned the passing of veteran actor Eduardo “Eddieâ€? Garcia, saying his death was a “heartbreaking lossâ€? for the Philippine entertainment industry.

Palace spokesman Salvador Panelo extended condolences to the family

of Garcia, 90, who died 12 days after being hospitalized for an accident that happened while he was taping a television show. “The Palace extends its deep condolences to the family, friends, colleagues, fans and loved ones of screen icon, as

well as showbiz legend Eddie Garcia, who died yesterday afternoon at the age of 90,� Panelo said in a statement. “It is a heartbreaking loss for the entertainment industry, which he dearly loved. Manoy (Garcia) died with his boots on, in a manner of speaking,

doing what he loved most — acting,� he added.

Panelo said Garcia “left an indelible mark in the hearts and minds of Filipino moviegoers and audience, with a career that spanned nearly seven decades.â€? ÂłHeartbreakingA2

Duterte to raise sea row at Asean summit PRESIDENT Rodrigo Duterte on Friday said he would “lengthily� discuss the West Philippine (South China) Sea issue during this weekend’s 34th Association of Southeast Asian Nations (Asean) Summit

in Thailand.

His statement came at the heels of a collision between Chinese and Filipino kSHING VESSELS NEAR THE DISPUTED 2ECTO Bank earlier this month. The incident

led to the sinking of the Filipino boat, whose 22 crew were later rescued by 6IETNAMESE kSHERS Both Duterte and China have called the sinking a mere “maritime incident,� but in

Angat level still falling, water allocation cut anew THE water level at Angat Dam, the primary source of Metro Manila’s supply, could breach the critical low level of 160 meters today, June 22, the state-run weather bureau said.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) on Friday recorded the dam’s water level at 160.28, a 0.45-meter drop from the

What’s inside

previous day. “Bukas baka below 160 [meters] pa siya. Pwedeng tawagin nating critical low na. (Tomorrow (Saturday) it

ÂłFallingA2 REACH US AT:

DoJ CHIEF OIC DURING DUTERTE’S NewsA2 BANGKOK TRIP

E-mail: newsdesk@ manilatimes.net Tel. Nos.: 5245664 to 67 Address: 2/F Sitio Grande, 409 A. Soriano Avenue, Intramuros, Manila 1002

a speech during the oath-taking ceremony of his son, Davao City Vice Mayor Sebastian Duterte, the President questioned how China could claim the whole West Philippine Sea. ÂłSummitA8

Jazz singer Jacqui Magno, 65 JAZZ singer Jacqui Magno died of pancreatic cancer at 4:05 p.m. Friday at the University of the East Ramon Magsaysay Memorial Hospital. She was 65.

In a Facebook post, actress Vivian Velez, a friend of Magno, wrote, “An immense loss for music. RIP Jacqui Magno. My deep sympathy to your nearest and dearest.�

Magno started her professional singer career as female vocalist of Genesis Band where noted balladeer Basil Valdez was also a member. She stopped

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LTFRB BACKS OUT OF HATCHBACKS Al Vitangcol IIIA6

EDDIE GARCIA NAMED URIAN BEST ACTOR TWO DAYS BEFORE HIS DEATH EntertainmentD1

PELICANS CHOOSE WILLIAMS ON FIRST OVERALL IN NBA DRAFT

SportsC1

MEGAWORLD’S UPTOWN MALL NAMED SHOPPING CENTER OF THE YEAR Megaworld’s chief strategy officer Kevin Tan (10th from left) and Megaworld Lifestyle Malls Head Graham Coates (9th from left) receive the coveted Shopping Center of the Year award for the medium-sized malls category at the 21st Outstanding Filipino Retailers Awards organized by the Philippine Retailers Association.Â

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Business Times

PSEi 8,055.47 UP 0.41%

P51.57 TO $1

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SATURDAY JUNE 22, 2019 ASIAN STOCKS: V S h a n g h a i 0 . 5 0 %

What’s inside PH AGRI TRADE UP IN Q1

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PNB RAISES $750M FROM NOTE ISSUANCE

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RENAULT, NISSAN END POST-GHOSN STANDOFF

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Net ‘hot money’ outflows surge to $750M in May Bangko Sentral: Amount is biggest in more than two years

BY MAYVELIN U. CARABALLO

F

OREIGN portfolio investments remained in the negative territory in May, recording the biggest NET OUTlOW IN MORE THAN TWO YEARS DATA FROM THE "ANGKO 3ENTRAL NG 0ILIPINAS "30 SHOWED ON &RIDAY The $749.84-million net “hot monEYu OUTlOW WAS HIGHER THAN !PRIL S $298.83 million. It was also the largest since September 2016’s $807.15 million, and bigger than the year-earlier $206.35 million.

In a statement, the central bank said “all investment instruments resulted in NET OUTlOWS u Registered gross foreign portfolio in-

vestments amounted to $1.237 billion for the month, 2.06 percent higher than BILLION A YEAR AGO )NlOWS ALSO rose by 25 percent from $989 million a month ago.

The Bangko Sentral said the monthon-month growth “may be attributed TO INVESTOR REACTION TO LOWER INlATION for April 2019 amid the holding of the country’s midterm elections and the

BSP’s announcement to cut the reserve requirements ratio of universal and commercial banks.�

Headline inflation eased to a 16-month low of 3.0 percent in April from 3.3 percent in March.

Early last month, monetary authorities reduced banks’ reserve requirement ratio by 200 basis points, from 18 percent to 16 percent.

The BSP said the bulk, or 81.5 percent, of foreign portfolio investments went to Philippine Stock Exchangelisted securities — mainly holding firms; property companies; banks; food, beverage and tobacco companies; AND TRANSPORTATION SERVICES kRMS Peso government securities account-

ed for the rest.

The United Kingdom, the United States, Malaysia, Singapore and Luxembourg were the top five investor countries, making up 76.7 percent of the total.

May’s outflows of $1.987 billion RElECTED AN INCREASE OF PERCENT from $1.418 billion a year ago.

It was also 54.2 percent higher than the $1.288 billion in April “as investors reacted to the renewed trade tensions between the US and China,� the central bank said.

Echoing the Bangko Sentral’s view, ING Bank Manila senior economist Nicholas Antonio Mapa noted that May

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Asean eyes signing of China-led RCEP by yearend Moody’s keeps stable outlook for PH banks BANGKOK: Southeast Asian leaders are eager to sign a sweeping China-led trade pact by the end of this year, Thailand’s prime minister said on Friday, with further talks expected at a Bangkok summit on the world’s biggest commercial deal.

Beijing is seeking to shape the rules of free trade across the !SIA 0ACIkC AS !MERICA RETREATS from multilateral deals under US President Donald Trump.

The China-crafted Regional Comprehensive Economic Partnership (RCEP) includes all 10 economies of the Association of Southeast Asian Nations (Asean) that are meeting this weekend in the Thai capital.

But it also sweeps in China’s main regional rival India, as well Japan, South Korea, Australia and New Zealand, covering half the world’s population and around

Q Trade Secretary Ramon Lopez speaks during a press conference on the sidelines of the 34th Association of Southeast Asian Nations (Asean) summit in Bangkok on Friday. AFP PHOTO

MOODY’S Investors Service retained its stable outlook for Philippine banks, as it believes that the country’s robust economic growth would continue to support asset quality at current strong levels. “Our outlook for the Philippine banking system over the next 12 [to] 18 months is stable,� the credit ratings agency announced in its “Banking System Outlook� report released on Thursday.

With a growth forecast of 6 percent for the country this year, Moody’s said the Philippines’ economic expansion rate “will remain among the highest in Asia, underpinned by robust domestic consumption and an expansionary kSCAL POLICY DESPITE A BUDGET DELAY and an export slowdown due to a weakening of global economic growth.�

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Loan terminologies you need to know

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S a potential borrower, it pays to have a tight grasp on busiNESS kNANCING JARGON /THERWISE

you won’t be able to hold your end of the conversation when seeking financing necessary to achieve your business goals. Much less, MAKE SOUND kNANCIAL DECISIONS To get you on track, we have idenTIkED SOME kNANCE TERMINOLOGIES you need to be familiar with to help you choose the best funding solutions that will help you achieve long-term success for your business.

1) Annual percentage rate (APR) When you borrow money, you will need to repay the total amount you borrowed, plus interest and other associated fees. The sum total of all the interest and additional fees, expressed as a yearly rate, is your Annual Percentage Rate or APR. Simply put, the APR is the total cost of borrowing money. Your payments will include the principal repayment plus APR. Before choosing to borrow money, it is imperative to get the details of the APR. A loan with a high APR could overwhelm your budget and get you mired in debt.

CHRISTIAN PACQUING NACORDA

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3) Assets

! kXED ASSET IS A TANGIBLE ASSET

SUCH AS PROPERTY OR VEHICLE ! kXED asset can be used as collateral to Principal can mean a lot of things SECURED LOANS OR OTHER kNANCING IN MATTERS OF kNANCE )N LOAN TALK options. On the other hand, there the principal refers to the original are also assets that can be used up amount of money borrowed ex- or sold within a year. These assets cluding the interest. It could also are called Current Assets or Liquid mean the balance on a loan after ÂłSME B4

2) Principal

showing strength‌as it inches closer to the resistance at its recent high of 8,139. As long as price action holds above the support of 7,830, bias should be to the upside and a break above the aforementioned,� he explained.

The local market traded in line with its US counterpart, with the Dow Jones, S&P 500 and

LISTED Megaworld Corp. is allocating P300 billion in capital expenditures (capex) for the next kVE YEARS TO EXPAND ITS PORTFOLIO !T A NEWS BRIEkNG IN 1UEZON City on Friday, Megaworld Chief 3TRATEGY /FkCER +EVIN 4AN SAID THE capex would cover the Andrew Tan-led property titan’s expansion plans from 2020 to 2024.

About 65 percent would be used TO DEVELOP MORE RESIDENTIAL OFkCE

township and hotel projects, and 35 percent for land bank acquisitions.

Megaworld is looking to purchase 2,000 hectares of land next year, which will bring its total land ownership to 6,700 has. “Our existing land bank would BE SUFkCIENT FOR THE NEXT TO years of development,� Tan said.

According to him, the company PLANS TO kNANCE THE CAPEX THROUGH a combination of debt and internally generated cash.

For townships, Megaworld earlier announced its plans to have 30 townships in its portfolio by end-2020 from the current 24. A plan to develop more beyond 30 is being prepared.

The real-estate developer also aims to build at least four malls every year: one major mall measuring between 30,000 square meters and 50,000 sqm, and a maximum of three community

one payment has been made.

4) Fixed assets

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Megaworld sets P300-B capex for 2020-2024

SME FIRST CIRCLE

Assets are valuable possessions owned by the borrower. They can be used as collateral to ensure repayment, especially when the funding is provided through traditional channels such as banks and credit unions.

Pledging assets as collateral provides security (extra assurance that you will make your payments as scheduled), which is what is meant by the term secured loan.

When a business pledges collateral, the borrowing is considered to be at low risk. A secured loan allows the borrower to take out a loan at a lower rate. However, there are also serious repercussions involved when the borrower defaults on their payment obligations— such as reclamation of collateral.

It added that private consumption, which contributed 68.5 percent of the country’s real gross domestic product (GDP) in 2018, would continue to be supported by the country’s young population and remittances from overseas Filipinos.

The debt watcher also expects government spending to rebound following the signing of the delayed 2019 national budget in mid-April.

A dispute between the Senate and the House of Representatives over alleged insertions resulted in the four-and-a-half-month delay in the budget’s passage. This forced the government to run on last year’s budget, limiting it to spend for items detailed in the 2018 outlay and not on programs and

Q Philippine Retailers Association President Rosemarie Ong, Jollibee Foods Corp. Chairman Tony Tan Caktiong and Philippine Chamber of Commerce and Industry President Alegria Limjoco (third to fifth from left, respectively) pose with other officials during the Philippine Retailers Association’s 21st Outstanding Filipino Retailers Awards in Makati City on Thursday. The Manila Times was one of the event’s co-sponsors. PHOTO BY JOHN ORVEN VERDOTE

Caktiong feted at PH retailers’ awards THE Philippine Retailers Association (PRA) held in Makati City on Thursday the 21st Outstanding Filipino Retailers Awards, which saw Jollibee Foods Corp. Chairman Tony Tan Caktiong and fashion brand Penshoppe lead the

honorees.

In an event co-sponsored by The Manila Times, the PRA recognized Caktiong as the “Pillar of Brand Globalization,� praising the Jollibee founder’s contribution in the food industry.

“Mr. Tan Caktiong was chosen as this year’s awardee for his great SUCCESS AND INlUENTIAL CONTRIBUtion to the Philippine food retail sector by creating a super brand [that] brought to the world the

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Last-minute buying keeps bourse up THE stock market rose for a fourth straight day on Friday as investors bought up at the last minute.

The benchmark Philippine Stock Exchange index (PSEi) recovered from intra-day losses, growing by 0.41 percent or 33.05 points to close at 8,055.47. The wider All Shares increased by 0.75 percent or 36.43 points to end at 4,927.81. )N A MARKET NOTE BROKERAGE kRM

Philstocks Financial Inc. said market players went on a last-minute buying spree to lift the index back to the green after trading most of the day sideways.

In a separate comment, P2P Trade Online sales associate Gabriel Jose Perez said the index was showing further strength after it hovered above the 8,000 level. “This means that [it’s] still

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