PhilWeb tender offer snubbed
B3
Business
Ray S. Eñano, Editor Roderick T. dela Cruz, Assistant Editor business@manilastandard.net extrastory2000@gmail.com TUESDAY, JULY 11, 2017
B1
7000
Peso dips to 50.70 vs dollar
6500
By Julito G. Rada
PSE COMPOSITE INDEX Closing July 10, 2017
8500 8000 7500
6000
7,837.47 51.86
PESO-DOLLAR RATE Closing July 10, 2017
45.00 46.50 48.00 49.50
P50.695 CLOSE
51.00
HIGH P50.580 LOW P50.695 AVERAGE 50.663 VOLUME 438.800M
P435.00-P680.00 LPG/11-kg tank P38.95-P51.01 Unleaded Gasoline P27.35-P31.46 Diesel
OPRICES IL TODAY
MAYNILAD-PLDT PROJECT. Maynilad Water Services Inc. teams up with PLDT Inc. to install a smart monitoring system that logs and
alerts issues from water data transmissions, effectively preventing water outages and reducing interruptions. Shown during the signing of the agreement are (from left) Maynilad head of technical services division Marcos de Jesus, Maynilad chief information officer Francisco Castillo, Maynilad president and chief executive Ramoncito Fernandez, PLDT vice president and head of PLDT Alpha Vic Tria and PLDT vice president and head of corporate relationship management Jay Lagdameo
P32.85-P41.15 Kerosene P20.75-P21.75
Bangko Sentral ng Pilipinas Monday, July 10, 2017
F OREIGN E XCHANGE R ATE Currency
Unit
US Dollar
Peso
United States
Dollar
1.000000
50.6090
Japan
Yen
0.008783
0.4445
UK
Pound
1.288900
65.2299
Hong Kong
Dollar
0.128025
6.4792
Switzerland
Franc
1.037990
52.5316
Canada
Dollar
0.776398
39.2927
Singapore
Dollar
0.723589
36.6201
Australia
Dollar
0.759700
38.4477
Bahrain
Dinar
2.651816
134.2058
Saudi Arabia
Rial
0.266660
13.4954
Brunei
Dollar
0.720981
36.4881
Indonesia
Rupiah
0.000075
0.0038
Thailand
Baht
0.029342
1.4850
UAE
Dirham
0.272287
13.7802
Euro
Euro
1.140200
57.7044
Korea
Won
0.000867
0.0439
China
Yuan
0.146914
7.4352
India
Rupee
0.015480
0.7834
Malaysia
Ringgit
0.232721
11.7778
New Zealand
Dollar
0.726100
36.7472
Taiwan
Dollar
0.032704
1.6551 Source: PDS Bridge
IN BRIEF DBS sees imports rising 9% this year IMPORTS are likely to grow percent to 9 percent this year on sustained domestic demand, although such increase would be slower than the 18.4-percent expansion a year ago, DBS Bank of Singapore said Monday. The bank said in a report the sluggish import growth figures in the past two months simply reflected high base effects. “Despite the last two months’ data, imports are still on course to post growth of some 8 percent to 9 percent this year. Not quite the 18.4 percent recorded last year, but it will match the 8.7 percent recorded in 2015,” DBS said. DBS said export and import growth in May would likely to come in at 15.7 percent and 2.2 percent, respectively. Imports fell 0.1 percent in April. “Some market participants are beginning to wonder if this was a clear sign of a marked moderation in domestic demand. These participants forgot that import growth averaged 40 percent [YoY] last year ahead of the general elections… As such, it is best to not read too much into the import data in April to May,” DBS said. Julito G. Rada
Japan grants P117-m for Filipino scholars THE Japan International Cooperation Agency and the National Economic and Development Authority signed a 264-million-yen grant (P117 million) to help build the capacity and skills of Filipino professionals. “We value our relationship with the Philippines and fully support the government’s efforts to build the capacity of its people, particularly Filipino professionals working in government,” said Jica chief representative Susumu Ito. Under the grant, 20 Filipinos working in government agencies will take post-graduate courses in Japan’s leading universities such as International University of Japan, Kobe University, Meiji University, International Christian University and Nagoya University. Among the post-graduate courses the scholars will take are infrastructure and industry development, public policy, financial reforms and small and medium enterprise promotion.
GT, Japanese partners investing P20b in BGC F By Jenniffer B. Austria
EDERAL Land Inc., the real estate unit of GT Capital Holdings Inc., teamed up with Japanese partners Nomura Real Estate Development Co. Ltd. and Isetan Mitsukoshi Holdings Ltd. to develop a P20-billion mixed-use residential and retail development in Bonifacio Global City, Taguig.
Federal Land chairman Alfred Ty said during the partnership signing ceremony that the three companies would jointly finance and develop Sunshine Fort project, which would bring Japanese tradition of excellence, innovation and artistry to the Philippines. The
whole development is expected to be completed in 2025. “Today is a momentous occasion as we officially welcome Nomura Real Estate Development and Isetan Mitsukoshi Holdings to the GT Capital family. This joint venture is part of Federal Land Inc.’s commitment to bring global industry standards in the country to add value to our lifestyle,” Ty said. Sunshine Fort will have four residential towers offering 1,395 residential units on top of a retail podium with 25,000 square meters of leasable space. The first residential tower will be launched by the first quarter of 2018 and will be completed by 2022. The mall will be jointly developed with Isetan Mitsukoshi, the world’s leading retail service group. It will feature new and familiar Japanese brands, authentic Japanese food and a wide-array of cosmetics. Nomura Real Estate Development Co. Ltd. president Seiichi Miyajima said the compa-
ny’s venture into the Philippine market was a result of the strong history of friendship between the two countries. “This project is memorable to us since this is the first time that we will integrate Japanese concepts of project planning, technology and knowledge to the Philippine market. We are strongly prepared to pursue business in the Philippines as it has shown to have the strongest growth in Southeast Asia,” said Miyajima. Isetan Mitsukoshi’s senior advisor Kunio Ishizuka said his group would try its best to “excite and move every customer in the Philippines by helping Federal Land enhance the Filipino lifestyle through introducing Japanese style and quality.” The Philippines is Isetan Mitsukoshi’s fourth overseas business in Southeast Asia and will be its first challenge to join the complex real estate development project. Federal Land president Pascual Garcia III said the partnership would introduce better products to Filipinos.
THE peso fell to a new 10-year low of 50.70 against the US dollar Monday, on increased appetite for the greenback following better-than-expected US jobs report showing the world’s biggest economy is improving. The peso lost P0.11 to close at 50.695, down from 50.58 on Friday. It was the local currency’s weakest level since it averaged 50.755 a dollar on Sept. 4, 2006. Total volume turnover was thin at $438.8 million, down from $514.7 million Friday. “The US dollar traded off the highs after the better–thanexpected US jobs report last Friday night Asian time,” Security Bank Corp. said in its daily market report. Earlier reports said the US job market had a better-thanexpected 222,000 new positions created in June, more than the expected 179,000 for the month. The increase in payrolls came after a sluggish 152,000 jobs created in May. Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. earlier said the weakening of the peso was “not a cause of concern” and that its movement broadly reflected prevailing market conditions and underlying economic fundamentals, in line with the BSP exchange rate policy. Espenilla said Bangko Sentral actively managing excessive volatility. He said a major driver was sentiment for a stronger US dollar as the Fed moved forward with steps to normalize from ultra-easy monetary policy as US economic conditions steadily improved. University of Asia & the Pacific economist Victor Abola last week said the weakness of the peso could be traced to the expected stronger imports. Business Monitor International, a unit of Fitch Group, said the peso might close the year at 50.50 a dollar, a downward revision of its previous estimate of 50 per greenback. It said the fragile political outlook in the Philippines and the expected additional rate hikes by the US Federal Reserve would put more pressure on the local currency.
Consumer group files case against ERC commissioners By Othel V. Campos NON-GOVERNMENT group Laban Konsyumer Inc. filed criminal and administrative cases against the commissioners of the Energy Regulatory Commission before the Office of the Ombudsman for the agency’s alleged failure to promote consumer interest. Laban Konsyumer president Vic Dimagiba, a former Trade undersecretary, accused the ERC commissioners of violating the
Corrupt Practices Act, the Code of Ethics of Government Officers and the Revised Penal Code. Laban Konsyumer accused the commissioners of allegedly violating the Code of Conduct governing public officials and gross inexcusable negligence when they allowed Manila Electric Co. to collect P1.7 billion in March, April and May 2017 from Meralco consumers. The incremental fuel cost in over three months resulted in the
increase of P0.2211 per kilowatt hour of electricity consumed in March, April and May 2017. The consumer group filed the original complaint on March 30, 2017 but later executed a supplemental affidavit complaint to include administrative liability. The Ombudsman will now proceed with the preliminary investigation of the criminal case and the adjudication of the administrative case. The respondents were ERC
chairman Jose Vicente Salazar and commissioners Josefina Patricia Magpale -Asirit, Gloria VictoriaYap- Taruc and Geronimo Sta. Ana. Salazar, however, is already under preventive suspension as ordered by the Office of the President over a separate issue. The consumers’ group challenged an ERC order dated March 6, 2017 when it granted provisional authority in favor of Meralco using the force ma-
jeure provisions of the Meralco power supply contracts where force majeure is defined as all forms of fuel supply interruptions . The commissioners determined an announced and scheduled preventive maintenance shutdown as force majeure and allowed Meralco to pass on all added costs of fuels to the consumers, instead of ordering these added costs to be absorbed by the natural gas supplier.
Foreign investments declined 61% in April NET inflows of foreign direct investments fell 61 percent in April to $874 million from $2.244 billion a year ago, in the absence of major equity capital infusion this year, data from Bangko Sentral ng Pilipinas show. Net equity capital investments plummeted 92 percent in April to $70 million from $825 million a year ago, when the Bank of Tokyo-Mitsubishi UFJ Ltd. acquired a 20-percent equity in Security Bank Corp. Bangko Sentral said the $70-million net equity capital investments in April resulted from gross equity infusion of $84 million and withdrawals of $14 million. “Gross equity capital placements of $84 million, which exceeded withdrawals of $14
million in April 2017, were channeled mainly to real estate; financial and insurance; electricity, gas, steam and air-conditioning supply; manufacturing; and human health and social work activities,” Bangko Sentral said. The bulk of these equity capital placements came largely from the United States, Japan, Singapore, France and Hong Kong. Net inflows of FDIs also declined 32 percent in the first four months to $2.434 billion from $3.581 billion in the same period last year. Bangko Sentral said the sustained net inflows, although lower compared to the same period last year, showed investors’ confidence in the country’s sound macroeconomic fundamentals. Julito G. Rada
WeatherPhilippines’ Quill award. Aboitiz Group-led weather information provider WeatherPhilippines Foundation bags the top award for communication management in the 15th Philippine Quill Awards organized the International Association of Business Communicators at Manila Marriott Hotel in Pasay City. Shown during the awarding ceremony are (from left) IABC Philippines trustee and Quill Awards chair Richard Arboleda; IABC Philippines treasurer Sherryl Yao; Aboitiz Equity Ventures Inc. and WeatherPhilippines team members Dave Devilles, Gloidan Papas, Cristi Biyo, Franz dela Fuente, Malou Marasigan, Dave Valeriano, Jam Salazar and Thet Mesias; IABC Philippines vice president Belle Tiongco; and Manila Water head of corporate strategic affairs Jeric Sevilla.