Stocks decline; peso rises to 6-week high

LOCAL stocks fell to track the movement of Asian markets as a smaller-than-forecast interest rate cut by China’s central bank added to worries about the lack of action to kickstart the country’s lumbering economic recovery.

The PSE index, the 30-company benchmark of the Philippine Stock Exchange, lost 1 point, or 0.02 percent, to close at 6,448.90, as two of the six subsectors retreated. The broader all-shares index also declined 1 point, or 0.05 percent, to settle at 3,439.54 on a value turnover of P4.75 billion. Gainers outnumbered losers, 92 to 81, while 47 issues were unchanged.

PSEi June 20, 2023

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Seven of the 10 most active stocks ended in the green, led by PLDT Inc. which climbed 4.20 percent to P1,340.00 and Metropolitan Bank & Trust Co. which rose 2.26 percent to P54.30.

Meanwhile, the peso climbed to a six-week high after the Bangko Sentral ng Pilipinas reported a stronger-thanexpected balance of payments position in the first five months. Data from the Bankers Association of the Philippines showed that the local currency appreciated 0.39 percent Tuesday to close at 55.52 against the US dollar from 55.74 Monday.

It was the peso’s strongest showing since it finished at 55.25 a dollar on May 8. The peso was also up 0.42 percent since the start of this year’s trading.

The BSP reported that the balance of payments posted a surplus of $2.9 billion in the first five months amid the continued structural dollar inflows in the country, a reversal from the $1.5-billion deficit recorded in the same period last year.

In Asian markets, the optimism that fed last week’s rally across world markets appears to be fading as traders are left disappointed by Beijing’s efforts to act, even as growth slows and weakness persists.

The People’s Bank of China reduced its benchmark five-year rate -- used to price mortgages -- by 10 basis points, less than the 15 points expected, though it did meet forecasts for a 15-point reduction in the one-year rate.

The move came after monetary policymakers last week lowered two other key rates and pumped billions into financial markets.

Stocks in Hong Kong dropped more than one percent, with tech firms—

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Airbus gets biggest order on first day of Paris Air Show

LE BOURGET, France—European

aircraft maker Airbus got the Paris Air Show off to a soaring start on Monday with the announcement of the biggestever order for civil aircraft, as the French president joined a big crowd for the event’s return after a four-year Covid hiatus.

The 500-plane deal with low-cost Indian carrier IndiGo kicked off what organizers have billed as the “recovery airshow” after the coronavirus ravaged the sector and the biennial trade fair was canceled in 2021.

Fighter jets and civilian aircraft streaked across the sky while suited and uniformed delegations, including Ukrainian military officials and President Emmanuel Macron, toured the stands. This year’s airshow has a new focus on defense following Russia’s invasion of Ukraine, as well as the industry’s efforts to reduce its carbon footprint, with French President Emmanuel Macron arriving in a helicopter partly using sustainable aviation fuel.

Macron called for “restraint” to protect the environment but said measures for aviation should be “reasonable” rather than “punitive”, adding that the world shouldn’t “give up on growth”.

Huge traffic jams around Le Bourget airport outside Paris were a testament to the interest in this year’s show, as aircraft makers field hundreds of orders and airlines brace for a near record number of passengers this year. AFP

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SpaceX launches satellite to boost Indonesia’s internet

JAKARTA, Indonesia—Elon Musk’s company SpaceX and Indonesia have launched a satellite from the United States aimed at bringing high-speed internet to remote areas across the sprawling archipelago of more than 17,000 islands.

Over a third of Indonesia’s population does not have access to the web, especially in far-flung areas of the world’s fourth most populous country.

The European-built SATRIA-1 took off early Monday Indonesia time from a Florida launch station, deployed by a SpaceX Falcon 9 rocket.

“SpaceX launched the PSN SATRIA mission to a geosynchronous transfer orbit from Space Launch Complex 40 at Cape Canaveral Space Force Station in Florida,” the firm wrote on its website.

The satellite—built by French defense electronics company Thales -- cost $540 million and Jakarta hopes it will connect 90,000 schools, 40,000 hospitals, and government buildings.

Indonesian President Joko Widodo called it the country’s “first government-owned multi-function satellite with the biggest capacity in Asia” in an Instagram post on Monday.

He said it would orbit above Papua province, Indonesia’s easternmost region.

It will “distribute internet access, especially for education, health, and public service in the remote, isolated, and outermost areas”, acting communication and informatics minister Mahfud MD said.

He said SATRIA was an acronym for

“Satellite of the Republic of Indonesia”.

The device is scheduled to come online by 2024 and will offer a connection speed of 150 gigabytes per second -three times the current speed of satellite internet in the archipelago.

Thales said in a press release that the satellite would “bridge the digital divide” in Indonesia and be “the most powerful in the Southeast Asia region”. Its construction was delayed by the Covid-19 pandemic and the war in Ukraine, added Erry Riyana Hardjapamekas, president commissioner of PT Pasifik Satelit Nusantara (PSN), in a speech broadcast during the launch.

The company is part of the project in partnership with the Indonesian government. AFP which are susceptible to higher borrowing costs—taking the brunt of the selling, while property companies also dropped. Shanghai was also in negative territory.

Robert Carnell, at ING, said that with the cuts being so small that “isn’t going to do an awful lot to boost the struggling economy”.

“Even with further reductions, and we expect more of the same in the coming months, perhaps several iterations of cuts, it is not likely that we will see demand for property swing around strongly, construction will likely remain weak, and local governments will continue to feel the pinch from reduced land sales and tight finances.” With AFP

Modi heads to US, military, technology ties on the agenda

NEW DELHI—Indian Prime Minister Narendra Modi heads to the United States on Tuesday to meet with President Joe Biden and address Congress, with military and technological ties on the agenda as his hosts seek a regional counter to China.

The leader of the world’s most populous nation will also receive all the pomp of a state dinner at the White House on Thursday—only Biden’s third since his inauguration.

Hailed by New Delhi as a “historic” chance to “expand and consolidate” ties, the visit comes at a time of rising concerns on human rights and democratic backsliding under the Hindu nationalist leader.

But Washington is seeking to boost ties with a potential regional ally to counter an increasingly assertive China.

Analysts expect landmark announcements in clean energy and strategic technology, including a deal to jointly produce fighter jet engines.

US Secretary of Defense Lloyd Austin, on a visit to New Delhi earlier this month, announced an “ambitious new roadmap for defense industrial cooperation” with India.

It has been linked to a likely announcement, expected at this week’s summit, of a long-discussed multibillion-dollar plan to co-produce the jet engines in India.

New Delhi has been trying to become less dependent on Russian military hardware by diversifying imports and boosting domestic production. With many countries wooing Modi, Washington hopes its co-production and technology offers will help secure a key market.

Ashok Malik, India head of The Asia Group advisory firm, said US-India ties were defined by “pragmatism and deep alignment at the government level”, with “very strong” economic and business links. India is important as “a growing power” in a region “where China is becoming unusually assertive”, New Delhi-based Malik told AFP. AFP