Stock market extends retreat; BPI, SMIC lead active gainers

STOCKS fell Wednesday, following a downbeat lead from Wall Street as investors braced for Fed boss Jerome Powell’s testimony to the US Congress.

The PSE index, the 30-company benchmark of the Philippine Stock Exchange, lost 24 points, or 0.38 percent, to close at 6,424.21, as four of the six subsectors retreated.

The broader all-shares index also went down by 12 points, or 0.37 percent, to settle at 3,426.81, on a value turnover of P5.17 billion. Losers outnumbered gainers, 111 to 69, while 42 issues were unchanged.

Only three of the 10 most active stocks ended in the green, led by Bank of the Philippine Islands which climbed 1.90 percent to P107.00. SM Investments Corp. rose 0.98 percent to

Tech giant Grab to lay off of over 1,000 employees

SINGAPORE—Singapore-based tech giant Grab will lay off over 1,000 employees, its CEO said Tuesday, a move that will affect about 11 percent of its workforce.

Grab launched in 2012 as a taxibooking app in Malaysia before becoming Southeast Asia’s biggest ride-hailing firm and expanding into financial services like digital payments.

The company has been narrowing its losses and aims to break even by the end of this year.

“I want to be clear that we are not doing this as a shortcut to profitability,” CEO Anthony Tan wrote in a message to employees Tuesday.

He called the “restructuring” a “painful but necessary step”.

“Change has never been this fast.

Technology such as Generative AI is evolving at breakneck speed. The cost of capital has gone up, directly impacting the competitive landscape,” the letter said, according to an excerpt posted on Grab’s website.

“The primary goal of this exercise is to strategically reorganize ourselves, so that we can move faster, work smarter, and rebalance our resources across our portfolio in line with our longer term strategies.”

The company is on track to break even this year even without the layoffs, Tan said.

Grab laid of 360 employees in 2020—then about five percent of its full-time workforce—as the pandemic hit demand for its services.

In 2018, Grab cemented its position as Southeast Asia’s biggest ridehailing firm when it bought Uber’s operations in the region, ending a bruising battle with its US-based rival. AFP

P924.00, while Ayala Land Inc. added 0.65 percent to finish at P23.30.

The peso slightly depreciated to close at 55.645 against the US dollar Wednesday from 55.52 Tuesday.

Most Asian markets extended a subdued start to the week, with investors unimpressed by China’s efforts to boost its economy, including a fresh interest rate cut that was smaller than expected.

All three major US indices as well as the top European markets closed in the red on Tuesday, and Asian investors picked up the baton in a similar mood. Hong Kong sank around two percent and has now given back all the gains made in last week’s rally, while Shanghai was more than one percent down.

There were also losses in Sydney, Wellington, Seoul and Bangkok, though Tokyo, Singapore, Taipei and Mumbai chalked up gains.

London sank as data showed UK inflation unchanged last month, confounding forecasts for a drop. The figures come a day before the Bank of England is expected to hike interest rates again as it struggles in its battle against aggressive price rises.

Paris also dropped though Frankfurt edged higher.

All eyes are on Washington, where Fed Chair Powell will make a semiannual appearance before Congress.

His comments will be closely scrutinized for clues about the direction of

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the Fed’s campaign to fight soaring inflation with interest rate hikes.

“He will come on and try to remain hawkish,” ANZ Bank’s Mahjabeen Zaman told Bloomberg Television, saying there was still a risk of further hikes.

The US central bank last week held rates steady after 10 straight increases, but signalled more hikes to bring prices under control.

The anxiety over Powell’s testimony built on top of disappointment on market floors this week with Beijing’s moves to try and revive the Chinese economy.

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

Norway bares plans to allow deep-sea mining exploration

OSLO—Norway said Tuesday it plans to open parts of its continental shelf to commercial deepsea mining exploration, a controversial move it hoped would set the standard for good practices.

The announcement comes a day after the UN adopted the first international treaty to protect the high seas.

Environmentalists are vehemently opposed to seabed mining amid fears it could inflict damage on deep-sea ecosystems, such as fish populations, marine mammals and the ecosystems’ function regulating the climate.

“We need minerals to succeed with the green transition,” Norway’s Petroleum and Energy Minister Terje Aasland insisted in a statement announcing the government’s proposal.

The seabed on the country’s continental shelf is believed to contain large deposits of minerals, including the possibility of rare earth minerals.

“Seabed minerals can become a source of access to important metals, and no other country has a better basis to lead the way... when it comes to managing such resources in a sustainable and responsible way,” Aasland said.

Often considered a champion of the environment, Norway is also Europe’s biggest oil and gas producer.

The government said extraction would “only be permitted if the industry can demonstrate that it can be done in a sustainable and responsible manner.”

EKR on his own is building a PH infrastructure economy

with Prime Infrastructure Capital Inc., his infrastructure arm, as the main funding vehicle.

Prime Infra is now emerging as a major infrastructure company in the Philippines.

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HE REBUILT his family’s port business in the late 80’s and turned it into a major global player a few decades later. Now, port tycoon Enrique K. Razon Jr., or EKR, is emerging as the newest kingpin in the utilities and infrastructure businesses.

Mr. Razon’s recent forays into the energy, water and electricity distribution, waste management and critical infrastructure businesses are nudging him closer to realizing his vision of developing the Philippines into an infrastructure economy.

No one is surprised at the speed by which Mr. Razon made his investments in Manila Water Co. Inc, Malampaya natural gas field, renewable energy businesses such as solar and hydro, and local waterworks. He is, after all, the second richest Filipino with an estimated net worth of $7.4 billion.

He chairs International Container Terminal Services (ICTSI), the nation’s biggest ports operator with subsidiaries in the Asia-Pacific, Eastern Europe, Africa and the Americas. ICTSI posted a net income of $154.61million in the first quarter of 2023, while another moneymaker, Bloomberry Resorts Corp., improved its profit by 338 percent in the first quarter to P3 billion from P680 million yearon-year.

Mr. Razon obviously parlayed the past earnings of these moneymakers into other business concerns, notably his recent investments in the utilities and energy sectors, presence in Pangasinan, Pampanga, Bulacan, Laguna, Batangas Cavite, Cebu and Davao provinces. For the ordinary reader and junior corporate officers, the water expansion projects will translate into volumes of profits and make Prime Infra another money-spinner under the wings of EKR.

Prime Infra president and chief executive Guillaume Lucci recently said the company was well-positioned to build projects supporting sustainability development goals (SDGs), such as energy, access to clean water, waste management and viable critical infrastructure, as enunciated by the United Nations.

Prime Infra’s choice of projects are part of UN’s lofty goals that few corporates are ready to go into yet. The SDGs are a call for action by poor, rich and middle-income nations to promote prosperity while protecting the planet.

Nations have agreed that ending poverty must go hand-in-hand with strategies that build economic growth and address a range of social needs, while tackling climate change and environmental protection.

Prime Infra, thus, is advocating environment sustainability in making new investments. It is a tough task and one must have the perspicacity to balance profit with his responsibility to society and the environment. But as they say, it’s the way of the future―millennials and the Gen Z generation that constitute the great majority of population espouse healthy living and renewable energy, smart cities, preserving biodiversity and generally a cleaner environment.

EKR and Prime Infra must have seen the writing on the wall and the adverse of impact of climate change that complicates the fight against poverty. The company late last year committed to spend up to P55 billion in equity to finance existing projects and those in the pipeline this year.

That may be true. Every individual, however, has the a right to water as the UN declared and Prime Infra is trying to respond to the call. The international body recognized the right of every human being to have access to enough water for personal and domestic uses, or between 50 and 100 liters of water per person per day. The water must be safe, acceptable and affordable.

Prime Infra, in sum, has made sustainability as the core of its several investments following the UN’s 17 SDGs. Its corporate mission of focusing on critical infrastructure projects for a sustainable future may be frowned upon. But it vowed to make its investments socially relevant and serve as vehicle to achieve decarbonization goals and promote inclusive economic growth.

The company’s solar portfolio, meanwhile, keeps growing. It has a pipeline of renewable energy projects in different stages of development with a total gross installed capacity of about 5,700 megawatts of solar generation and 4,000MWh (minimum) of energy storage system.

Prime Infra, says Lucci, is addressing the need for dependable power supply as it aggressively supports the transition to clean energy and a low-carbon economy through its portfolio of renewable energy projects.

Prime Infra may as well serve as the nation’s lead toward a sustainable infrastructure economy.

E-mail: rayenano@yahoo.com or extrastory2000@gmail.com

Manila

NOTICE OF ANNUAL STOCKHOLDERS’ MEETING

Please be informed that the Annual Meeting of the Stockholders of HARBOR STAR SHIPPING SERVICES, INC. (“HSSSI”) will be held and conducted virtually via the Zoom online meeting platform on Wednesday, 12 July 2023, 09:30 A.M. for the following purposes:

1. Call to Order

2. Certification of Notice and Quorum

3. Approval of the Minutes of the Annual Stockholders’ Meeting held on 13 July 2022

4. Management Report

5. Approval of Audited Consolidated Financial Statements of HSSSI and its subsidiaries as of 31 December 2022

6. Ratification of all acts, resolutions and proceedings of the Board of Directors and of Management, done in ordinary course of business since the 13 July 2022 Annual Stockholders’ Meeting up to 12 July 2023

7. Election of Directors

8. Appointment of External Auditor

9. Other Matters

10. Adjournment

The record date for stockholders entitled to notice of, participate and vote at the Annual Stockholders’ Meeting is set on 08 June 2023 (“Stockholders of Record”).

Considering the current circumstances, Stockholders of Record may only attend/participate via proxy, remote communication or vote in absentia, subject to validation procedures. Only validated stockholders will be provided access to the Zoom meeting platform and can cast their votes in absentia on or before 04 July 2023 via the Corporation’s secure online voting facility.

Stockholders who wish to participate in the meeting via the Zoom online meeting platform and to vote in absentia should notify the Office of the Corporate Secretary through a Letter of Intent to be sent via e-mail to asm-2023@harborstar.com. ph or fill up the registration form at www.harborstar.com.ph/ asm2023registrationform on or before 28 June 2023.

The Corporation is not soliciting for proxies. Stockholders who are unable to join the meeting but wish to vote on items in the agenda by proxy must submit their duly accomplished proxy forms via email to asm-2023@harborstar.com.ph on or before 28 June 2023.

Stockholders may send their queries and comments to the Management Report and other items in the Agenda to asm-2023@ harborstar.com.ph on or before 06 July 2023.

The Definitive Information Statement containing the attendance, voting and election procedures, along with the Notice, Agenda, Proxy, Management Report, SEC Form 17-A, SEC Form 17-Q and other information related to the Annual Stockholders’ Meeting can be accessed at www.harborstar.com.ph/investors/pse_disclosures.

(SGD.)

CHARLENE O. ANG Corporate Secretary

By Julito G. Rada

HONGKONG and Shanghai Banking

Corp. said Wednesday monetary policy conditions in the Philippines remain “tight” given the persistent elevated inflation that is one of the highest in the region.

HSBC chief investment officer for the Southeast Asian region James Cheo said in an online briefing the Bangko Sentral ng Pilipinas might continue to keep the policy rates unchanged for the rest of the year.

“[The] Philippines’ monetary policy is still going to be tight,” Cheo said. “The central bank kept the policy rate unchanged at the May meeting, but may tighten further if inflation surprises on the upside.”

Inflation peaked at 8.7 percent in January 2023, but eased to 8.6 percent in February, 7.6 percent in March, 6.6 percent in April and 6.1 percent in May.

“Inflation is stickier in [the] Philippines compared to the rest of the region. However, at this juncture, if inflation trend remains under control, we assess the Bangko Sentral ng Pilipinas to stay on hold for the rest of 2023,” Cheo said.

The Monetary Board of the Bangko Sentral ng Pilipinas is scheduled to hold a policy meeting on June 22. Moody’s Corp.’s subsidiary Moody’s Analytics predicted the BSP might join other central banks in the region in keeping the policy interest rates unchanged this week on decelerating inflation.

“Central banks in Indonesia and the Philippines will keep their respective policy rates on hold in June. Lower food and fuel prices have cooled headline inflation in those economies, giving the central banks space to hold monetary policy settings steady,” it said.