Hot money posted $803-m net outflows in first six months—BSP

By Julito G. Rada

FOREIGN portfolio investments posted net inflows of $1.23 million in June, a reversal of the $342-million net outflows a year ago, the Bangko Sentral ng Pilipinas said Thursday.

This was the first net inflows recorded following four consecutive months of net outflows, the BSP said. The $889-million gross inflows in June narrowly surpassed the gross outflows of $888 million.

Portfolio investments are also called “hot money” because of the ease they are invested in and taken out of domes- tic financial markets. exchange corporations for repatriation of capital and remittance of earnings that accrue on the registered investment.

Data from the BSP showed registered investments in June went up by $45 million or 5.3 percent from $845 million in May.

Most registered investments ($700 million or 78.7 percent) were in Philippine Stock Exchange-listed securities mainly in property, banks, holding firms, food, beverage and tobacco and telecommunications. The rest went to peso government securities ($190 million or 21.3 percent) and in other instruments (less than 1 percent).

Switzerland with combined share to total of 84.2 percent.

The BSP said despite June’s positive performance, foreign portfolio investments in the first six months yielded net outflows of $803.33 million, a reversal of the $778.28-million net inflows a year earlier.

Registration of inward foreign investments delegated to authorized agent banks by the BSP is optional under the rules on foreign exchange transactions.

The BSP said without such registration, the foreign investor can still repatriate capital and remit earnings on its investment, but the foreign exchange will have to be sourced outside the banking system.

DOTr eyes

2,400 km of bike lanes by 2028

THE Department of Transportation said Thursday it will increase the country’s protected bike lane network to 2,400 kilometers by 2028 under its Bike Lane Master Plan. Transportation assistant secretary for road transport and infrastructure James Andres Melad said the Bike Lane Master Plan aims to establish active transport infrastructure to promote sustainable modes of transportation in key cities.

The agency turned over the master plan to the Department of Interior and Local Government and local government units.

“This master plan represents months of tireless collaboration and careful planning. It is a testament to our shared commitment to create an environment where people can move freely, safely and sustainably,” Melad said.

He said the bike lane blueprint envisions a healthier and sustainable transportation for the benefit of various sectors of the society.

“This plan envisions a comprehensive network of interconnected bike lanes that will traverse our bustling streets, connecting neighborhoods, schools, businesses and recreational areas,” he said. Darwin G. Amojelar

DOE wants grid impact study finished in 60 days

THE Department of Energy underscored the need to implement the 60-day completion of the National Grid Corp. of the Philippines’ system impact study providers to fast track the development of power generation projects.

“That’s why the ES [Executive Secretary] as chair has scheduled for the next meeting of the EVOSS [Energy Virtual One Stop Shop] steering committee to deal with this issue on the system impact study,” Energy Secretary Raphael Lotilla said.

“The executive secretary is chairing this one so by the next meeting, we will be looking at how the transmission concessionaire, NGCP is going to specify the 60-day requirement for approval of just the SIS,” Lotilla said.

Lotilla said there were complaints of 1.5 to two-year delays in the SIS.

Power generation companies apply with the DOE for clearance to undertake SIS to determine their project’s impact on the grid. Once endorsed by the DOE, the NGCP and the SIS provider undertake the study to determine the impact of the power projects to the grid.

“These are the things that we want to be able to address, so that RE developers will be able to focus on the roll-out of their projects,” Lotilla said. Alena Mae S. Flores

The top five investor countries in June were the United Kingdom, the United States, Luxembourg, Singapore, and

Foreign portfolio investments posted net inflows of $887 million in 2022, a reversal of the $574-million net outflows in 2021, as fund managers remained confident in the country’s macroeconomic fundamentals despite uncertainties on the external front.

Aboitiz Power’s first-half profit soared to P17.8b Gov’t

THE Department of Trade and Industry said Thursday it will review and approve 12 strategic projects with combined capital of P183 billion under Executive Order No. 18 or the Green Lane for Strategic Investments.

It said the EO is meant to expedite,

It is required only if the investor or its representative will purchase foreign exchange from authorized agent banks and/or their subsidiary/affiliate foreign

clear P183-b strategic investments—DTI

streamline and automate government approval and registration processes for priority investments aligned with the Philippine Development Plan 2023 to 2028.

The DTI’s One-Stop Action Center for Strategic Investments said the projects form part of the P230 billion announced by President Ferdinand Marcos Jr. during his 2023 State of the Nation Address. DTI Secretary Alfredo Pascual said the renewable energy, digital infrastructure, manufacturing and electricity projects were expected to open up 19,250

By Alena Mae S. Flores

AMENDED SALARIES. The Governance Commission for GOCCs led by chairperson Justice Alex De Quiros (center) and commissioners Gideon Mortel (third from left) and Geraldine Berberabe-Martinez (sixth from left), approves the amended salary structure of the National Home Mortgage Finance Corp. under the Compensation and Position Classification System. The amended salary scheme will retroactively take effect from the initial implementation of CPCS in October 2021. NHMFC is the government’s sole secondary mortgage institution under the Department of Human Settlements and Urban Development.

jobs for Filipinos.

Among the projects lined up for approval are SunAsia Energy Inc.’s P66-billion, 1,300-megawatt floating solar project in Laguna de Bay; NK Solar One Inc.’s P15-billion, 250MW floating solar project in Caliraya, Laguna; PhilTower Consortium Inc.’s P52-billion, 7,907 Built-toSuit Common Towers; and Narra Technology Development Park’s P50 billion Hyperscale Data Center in New Clark City, Tarlac.

Additional projects worth P78.5 billion are also under assessment by the Board of Investments. These include five floating solar projects, a microhydro electric plant, a reinforcing steel bars producer and a section mill project.

SunAsia Energy, the first project to receive a certificate of endorsement from the DTI, is a pioneer solar energy company. It will set up floating solar panels on Laguna Lake to produce 1.3 gigawatts with investments reaching $1.7 billion. Othel V. Campos

Appliance sales lifted Concepcion Industrial’s 6-month income by 92% to P216.4m

By Jenniffer B. Austria

CONCEPCION Industrial Corp., a local air-conditioning and refrigeration appliance manufacturer, said Thursday net income attributable to parent firm grew 92.3 percent in the first half to P216.4 million from the same period last year.

First-half revenues climbed 8 percent year-on-year to P7.2 billion, the company said in a stock exchange filing.

CIC attributed the strong first-half re- sults to higher sales volume in the second quarter, favorable impact of foreign exchange rates and income contribution from associate Concepcion Midea Inc.

Sales of from air-conditioning business and other appliance categories, particularly laundry products, grew by 18 percent and 112 percent, respectively.

The decline in elevator equipment and refrigerator businesses partially offset the growth. The consumer business accounted for the bulk of sales, generating P5.3 billion for an increase of 2.7 percent from same period last year. CIC attributed this to the higher sales of window-type air conditioner inverter models in the second quarter. The group’s commercial business achieved sales of P1.9 billion, up 23.4 percent on higher air conditioning equipment and aftermarket service sales for both air conditioner and elevator businesses.

It said net income in the second quarter reached P162.8 million, up 21.6 percent year-on-year as net sales rose 20 percent to P4.35 billion.

“Our second-quarter performance demonstrated the strength of our core business and our ability to drive growth through our expanded portfolio, end-toend customized solutions and long-term relationships with our customers,” CIC chairman and chief executive Raul Joseph Concepcion said.

ABOITIZ Power Corp. said Thursday net income soared 79 percent in the first half to P17.8 billion from P10 billion in the same period last year.

Aboitiz said in a disclosure to the Philippine Stock Exchange it recognized non-recurring gains of P37 million on derivative gains from commodity hedging, compared to the P853 million in non-recurring gains recorded in the same period in 2022.

It said that without these one-off gains, the company’s core net income in the first half was P17.8 billion, a 95-percent increase year-on-year.

“The company had an exceptional performance in the first six months of 2023, driven by fresh contributions of our strategic investments and operational excellence outcomes,” Aboitiz Power president and chief executive Emmanuel Rubio said.

“We remain on track toward achieving a 50:50 balanced mix portfolio by 2030 and continue to focus on providing reliable and innovative power while adapting to dynamic market conditions,” Rubio said.

Aboitiz Power’s net income in the second quarter went up 46 percent to P10.3 billion from P7 billion a year ago. It recognized non-recurring losses of P81 million during the period, versus the P923 million in nonrecurring gains a year earlier.

Core net income in the second quarter reached P10.4 billion, up by 69 percent from a year ago, on contributions from GNPower Dinginin Ltd. Co. and higher availability across the company’s portfolio.