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Low liquidity levels setting back local corporate bond market, say investors

THE PHILIPPINE corporate bond market is still suffering from low liquidity levels, resulting in a low amount of issuances compared with government bonds and leaving it behind Southeast Asian counterparts, investors said.

“For the bond market, I think the Philippines needs to be more competitive compared to those in the region. In terms of size, we are lagging [behind] our ASEAN peers,” said Maria Cristina B. Gabaldon, deputy head of Metrobank’s investment management division.

“I guess it has to do with the number of issuances. We need more supply of bonds. We need to deepen the capital market,” she added in a panel discussion at the Advancing the Philippines Bond Market Conference on Wednesday.

Compared with regional peers, the Philippine government remains dominating the bond market, said BPI Wealth Head of Investment Solutions Gladys Buenaventura.

“In other countries, it’s relatively equal. Here, we still see limited corporate issuers,” she said.

According to the Asian Development Bank’s Bond Monitor, corporate bonds comprised only 13.6% of the outstanding local currency bonds in the second quarter.

Ms. Gabaldon said demand exists for corporate bonds, but the country lacks issuers.

“We need more supply of bonds. We need to deepen the capital market. I think demand is there. It depends on the tenor. Some retail investors are asking for the short-term tenors while some companies want longer tenors. So I think corporates and BTr (Bureau of the Treasury) should take advantage of this demand,” she said.

Ms. Buenaventura likewise said increasing market makers could solve the liquidity issue on the corporate side.

She added that bond literacy in schools could help drive the demand for bonds, and thus increase the liquidity in the market as well as accessibility of the market to the public.

“As we know, most Filipinos are very familiar with stocks. It’s so easy for them. But once we start talking about bonds, it’ll take time for us to actually explain to them how the whole instrument works,” Ms. Buenaventura said.

She noted that a more “curricular” rating system for the issuances could help investors assess what they are investing in and compensate them for the risk they are taking.

BDO Unibank Vice-President and Fixed Income Manager Jason Samson L. Clemente, Jr. added that transparency is also lacking, and improving it could help in expanding the market. — Aaron Michael C. Sy

#liquidity #levels #setting #local #corporate #bond #market #investors

PHL urged to expand presence in global bond market

PHL urged to expand presence in global bond market

By Luisa Maria Jacinta C. Jocson, Reporter

THE Philippines should further diversify its borrowing sources and expand its presence in the global bond market, analysts said.

“Given the country’s credit rating and its commitment to pursue its infrastructure program. Definitely, the government can still expand its borrowings,” Jonathan L. Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., said in a text message.

Last week, National Treasurer Rosalia V. de Leon said that the government is looking to issue Islamic bonds or Sukuk bonds by yearend or 2024. This would mark its first issuance in the Islamic bond market.

“The Philippine government’s plan to debut in the Islamic bond market with a Sukuk issuance is a strategic move that could diversify its investor base and potentially offer more favorable terms. Coupled with its $5-billion program for commercial bonds, the government is evidently keen on robust external financing,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

This year, the government’s borrowing plan is set at $2.207 trillion, consisting of P1.654 trillion from domestic sources and P553.5 billion from foreign sources.

The government is planning $5 billion (around P283 billion) in global bonds this year.

In January, the Philippines already raised $3 billion from its first US dollar bond issuance for the year.

Mr. Roces said it could be beneficial to expand borrowing options beyond commercial and Sukuk bonds.

“Markets like Euro bonds and Samurai bonds offer low-interest rates, while green bonds could attract investors focused on sustainability,” he said.

The government, under President Rodrigo R. Duterte, had raised €2.1 billion (P122.4 billion) from a triple-tranche offering of euro-denominated bonds in April 2021. In April 2022, it raised 70.1 billion Japanese yen from a four-tranche Samurai bond offer.

Mr. Roces said the sustainability of this borrowing strategy “will be a function of the country’s overall debt level and fiscal health, which remain manageable.”

The government had ramped up borrowings at the height of the coronavirus pandemic. As of end-June, the National Government’s outstanding debt as a share of gross domestic product stood at 61%, lower than 62.1% from the same period a year ago.

However, it is still slightly above the 60% threshold considered by multilateral lenders to be manageable for developing economies.

“Diversifying borrowing sources should help mitigate risks and provide balance in the financial portfolio. Also, given the global dominance of the US dollar, the US market offers significant liquidity. However, it does come with currency risks given the current environment,” Mr. Roces said.

The government is still targeting a US-denominated retail Treasury bond offering by the end of the month.

“I think the plan to borrow retail dollar bonds is a good way to tap our overseas Filipino workers (OFWs) who may lack access to good investment outlets for their hard-earned money,” a trader said in a text message.

“It is always good for the government to have different borrowing sources. However, I think the BTr will still have to source more borrowing locally given the domestic liquidity,” the trader added.

The government’s borrowing mix favors domestic sources (75%) in order to mitigate foreign currency risk.

Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila, said domestic borrowings are still the safer option.

“Borrowing in foreign debt is generally carried out to take advantage of lower borrowing costs abroad or to deepen the market for Philippine debt. Despite the ability to borrow in foreign currency, the bulk of the borrowing remains domestic in nature in order to safeguard against too much currency and interest rate risk,” he said in a Viber message.

“Currently, the Philippines is awash with cash and perhaps borrowing in local currency will still not result in a substantial tightening of financial markets,” he added.

Mr. Mapa also said that the country’s investment grade status could also help offset high interest rates.

“Rates, however, are relatively high and there remain uncertainties regarding exchange rates and policy direction. Despite this, given our investment grades status, the Philippines may still be able to secure debt at relatively affordable rates,” he added.

The Philippines’ credit rating is currently above the minimum investment grade across three major debt watchers, with S&P Global Ratings at “BBB+,” Fitch Ratings at “BBB,” and Moody’s Investors Service rating the country at “Baa2.”

#PHL #urged #expand #presence #global #bond #market

The Philippine real estate market in Q2 2023: Imminent business boom in Luzon

The Philippine real estate market in Q2 2023: Imminent business boom in Luzon

The second quarter of 2023 saw an economic slowdown due to high commodity prices and the lagged impact of interest rate hikes. In its latest trend report, Lamudi reveals how the real estate market is holding up despite economic headwinds.

Vertical residential and commercial properties grew at an equal pace in the first half of the year. The double-digit lead growth observed by Lamudi for both property types in Q2 2023 indicates homebuying appetite and business intentions.

An increase in commercial investments influenced the country’s moderate economic expansion. This reflects the 30% increase in quarter-on-quarter leads for commercial properties on Lamudi.

Consumer confidence in CALABARZON lots for sale

CALABARZON is a fast-growing region with adequate infrastructure for its population size and growth. Four of its five provinces made it to the top 10 locations for lots for sale on Lamudi; Rizal and Laguna received the most leads in the economic price segment.

The five-year development plan for CALABARZON aims to strengthen its priority industries: information technology, metals, electronics, automotive, and petrochemicals. Further, the plan seeks to modernize agriculture and agri-business and expand employee opportunities.

Lamudi identified the hottest markets for lots for sale in CALABARZON, opening up opportunities for investors to achieve sustained growth.

  • The top ten most viewed locations for agricultural lots for sale were in Luzon. Cavite, Batangas, and Rizal topped the list, in that order.
  • Cavite and Batangas received more pageviews than any other location for agricultural lots on Lamudi. Both provinces are also gaining popularity due to their suitability for agri-tourism activities and farm villa rentals.
  • Metro Manila was the most searched location for commercial lots on Lamudi. Other most viewed provinces were located in the periphery of the metro. Commercial lots in CALABARZON and Pampanga are suitable for warehousing, truck parking, and manufacturing.

Rewarding regional growth

Region IV-A’s real estate landscape has changed over the years. With Metro Manila becoming more saturated, property seekers and developers move towards investing in various property types situated in CALABARZON. A prominent region for technoparks, it is also one of the leading locations for houses, condominiums, mixed-use developments, and commercial establishments.

The rise of new developments in CALABARZON and the wider area of Luzon is also seen in the turnout for Lamudi’s awarding ceremony for property developers, The Outlook: Philippine Real Estate Awards 2023. The property platform recorded a 50% increase in nominated projects in Luzon compared to last year, reinforcing the growth in one of the three major islands of the Philippines.

This year, Lamudi will also be naming the Best Industrial Development of the Year, in recognition of an industrial project that enables efficient business operations and stimulates the local job market.

The Outlook: Philippine Real Estate Awards 2023 is happening this September

The most prestigious award-giving body for property developers is coming back this month. The Outlook: Philippine Real Estate Awards 2023, in partnership with Bank of the Philippine Islands (BPI), is happening on Sept. 21, 2023, at Shangri-La The Fort in BGC, Taguig. The awarding ceremony will gather the most prominent and respected personalities in the Philippine property scene and recognize outstanding developments in the country.

In addition to citing the leading industry projects of the year, The Outlook: Philippine Real Estate Awards 2023 will also be a platform for meaningful discussions on the state of the property market in the country. There will be a panel discussion featuring the frontrunners of the industry. Land Registration System’s (LARES) President, Teddy Sumulong, will deliver the keynote address.

The event’s gold sponsors are ContractWorld Furniture and Taylor Living Furniture, while the minor sponsors are MetroMart and Pick.A.Roo.

The media partners of The Outlook: Philippine Real Estate Awards 2023 are the Philippine Daily Inquirer, Inquirer Property, The Philippine Star, Manila Bulletin, BusinessWorld, Business Mirror, Manila Standard, Malaya Business Insight, and The Business Manual. The media support are Media Blast Digital, Property Finds Asia, NegoSentro, Real Estate Blog PH, and Village Connect.

To know more about The Outlook: Philippine Real Estate Awards 2023, visit now.


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#Philippine #real #estate #market #Imminent #business #boom #Luzon

DoE wants reserve power spot market to start commercial operations by Dec.

THE Department of Energy (DoE) said it has set a target to begin commercial operations of the spot market for power reserves on Dec. 26.

“Starting Dec. 26, the market operator shall implement the full commercial operation of the reserve market, wherein the co-optimized energy and reserve schedules, including their associated prices, generated by the market dispatch optimization model shall be financially binding,” the DoE said in a draft circular issued on Sept. 16.

On Friday, the Energy Regulatory Commission (ERC) granted preliminary approval to the application for amendments to the price determination methodology.

The joint application was filed by the Independent Electricity Market Operator of the Philippines (IEMOP) and the Philippine Electricity Market Corp. in October 2022 for the implementation of the co-optimized energy and reserve market in the Wholesale Electricity Spot Market (WESM).

According to the circular, the IEMOP is directed to complete preparations and start limited live dispatch operations between Sept. 26 and Dec. 25.

During the period, the IEMOP will conduct live parallel operations which involves end-to-end testing using a non-production system between the market operator, system operator, and registered ancillary service (AS) providers.

IEMOP operates the WESM. The reserve market will facilitate the trading of AS or power reserves to support the transmission system.

It started trial operations for the reserve market on June 26, according to the DoE. 

“All generation companies, duly certified and accredited by the system operator as AS providers, shall ensure completion of their registration on the reserve market before Sept. 26,” the DoE said. — Sheldeen Joy Talavera

#DoE #reserve #power #spot #market #start #commercial #operations #Dec

AirAsia Philippines wants more airport slots to expand market

AirAsia Philippines wants more airport slots to expand market

AIRASIA PHILIPPINES is aiming to expand its domestic market by 20% next year as the low-cost carrier targets more airport slots.

“Additional slots will allow AirAsia to flourish in Visayas and Mindanao especially since we also plan to grow our domestic market by 20% in 2024,” Steve F. Dailisan, head for communications and public affairs at AirAsia Philippines, said in a media release.

More airport slots will also allow the company to revive flights to Zamboanga, Dumaguete, and General Santos City, and increase flight frequency in Cagayan De Oro, Mr. Dailisan said.

“This, in turn, will give AirAsia the upper hand to continue to provide the best value airfares and best travel deals as we continue to democratize air travel for everyone,” he said.

An airport slot is a permit issued to airlines by the airport’s administration to allow them the use of takeoff and landing facilities.

Transportation Secretary Jaime J. Bautista said unutilized slots were a result of the pandemic, giving rise to flight limitations and prompting the transfer of slots to airlines that are willing to use them.

He added that the Transportation department would assess the availability of slots together with the Manila International Airport Authority and the Civil Aviation Authority of the Philippines before giving the available slots to AirAsia.

Speaking during the budget briefing of the Department of Transportation, Senator Juan Miguel F. Zubiri said that “equal distribution” of unutilized slots must be given to airlines that can immediately operate them.

In a separate media release, Malaysian multinational company Capital A Berhad said it is targeting to fully reactivate the low-cost airline’s 204 aircraft after a new agreement with its long-term partner and engine provider, CFM International.

“After over two years of Covid, we are seeing the light at the end of the tunnel. We have made enormous strides in bringing back our planes and restarting our operations, balancing a mismatch of the cost of 204 planes and the revenue of flying 143 planes on average this year,” Capital A Chief Executive Officer Anthony Francis Fernandes said in a statement on Thursday.

Capital A is the parent firm of AirAsia Philippines.

It said CFM’s continued efforts to enhance fleet stability have allowed the company to fully reinstate its full fleet across the group.

“We have brought back 175 planes. CFM’s fleet stability support brings a vital catalyst for us to return to full activation,” Mr. Fernandes said.

“We look forward to fourth-quarter results when we’re going to see the real performance of AirAsia with the full fleet,” he added.

The company said it would capitalize on the reinstatement of its fleets and expand to more than 300 aircraft in the next five years. — Ashley Erika O. Jose

#AirAsia #Philippines #airport #slots #expand #market

From wedding rituals to fancy distilleries, Asia is taking over the world’s whisky market

From wedding rituals to fancy distilleries, Asia is taking over the world’s whisky market

By David Ramli

IF YOU’RE invited to a wedding in Southern China you might see couples perform an unexpected ritual. First their hands are bound together, then the pair imbibe a shared toast of Scotch whisky. It’s an invariably heart-warming symbol of shared destiny that might seem to hark back to ancient Celtic lore.

In fact, according to Chivas Brothers Chief Executive Officer Jean-Etienne Gourgues, the whole thing is a modern invention by his firm’s parent company French drinks giant Pernod Ricard SA — promoted to wedding planners who work with the brand to boost its premium booze to couples who’d otherwise toast with Chinese maotai (a fiery distillation of fermented sorghum).

The yearslong efforts by Pernod, Diageo Plc and other major whiskey producers to get Asian drinkers to spend more on their premium spirits are finally paying off, just as sales in established markets in the US and Europe show signs of slowing. Last year, the Asia-Pacific region overtook the European Union to become the biggest buyer in the £6 billion ($7.5 billion) Scotch whisky export market, according to the Scotch Whisky Association. In the first half of this year, six of the 10 largest export destinations for the vaunted spirit — which must be distilled in Scotland following specific processes to have a “Scotch” designation — were in Asia.

“Asia is where the longer-term growth will be, especially as you convert people from whatever the local whiskies are or the cheaper blends to more expensive whiskies over time,” said Bloomberg Intelligence consumer goods analyst Duncan Fox. Euromonitor International valued the global market for whiskies at $139.5 billion in 2022.

Asians will soon become the world’s biggest drinkers of all whiskies, Fox added. That’s as long as countries there don’t introduce additional hurdles, such as the alcohol bans in some states in India or the government-led drives against conspicuous consumption sometimes seen in China.

“You’re probably looking at a five-year horizon because they will just buy more,” Mr. Fox says about the potential timeline for Asia becoming the largest consumers of the spirit.

Recent earnings reports bear this out. In late August, Pernod announced that Scotch sales had increased 17% for the year ended in June to hit a 10-year high; Asia was the biggest contributor to that growth, with sales up 21% there. Chivas’ Royal Salute, whose bottles can sell for tens of thousands of dollars each, saw revenue rise 32% — an increase Mr. Gourgues says was mostly driven by rising Asian consumption. And while Johnnie Walker distributor Diageo only saw 2% growth in the volume of Scotch it shipped, net sales leapt by 12% — evidence that more buyers in places like Asia are willing to pay more money for less volume.

The process of getting Asians to spend increasingly large sums on whiskey, even as the global economy slows, has been a blend of education, marketing, and wile. Diageo and Pernod — two of the world’s largest liquor companies — have spent huge amounts on digital and traditional marketing and promotional events, even launching production distilleries in India and China.

Take Pernod’s $150 million Chuan Malt Whisky Distillery on Mount Emei in the Sichuan province of China. With its sleek concrete and stone structures embedded into the mountainside and subterranean whisky lounges, the focus is very much on luxe experiences rather than mass production.

Understanding the hyper-niche areas in Asia’s markets has been key to beverage producers making inroads in the region. India’s cultures and regulations vary state by state, while the Chinese market requires focusing on individual cities and age groups divided into targeted five-year segments (Mr. Gourgues argues generational tastes in Europe, by contrast, coalesce into 20-year blocks). That’s why weddings have been such a good opportunity for the whisky industry, bringing together cultures and generations. Pernod’s research showed nuptials in Guangdong province are often elaborate multi-day affairs with several dinners offering more drinking opportunities than the lunch banquets common in the Sichuan region.

“What is interesting with the whisky category is that it’s where consumers are more attracted to try new brands or products — usually three times the average compared to any other spirits in the world,” says Mr. Gourgues, who led Pernod’s operations in China until 2021. “The beauty of a place like China is that you have a lot of consumers and opportunities and possibilities. It’s not a question of purchasing power. It’s much more a question of cultural relevance.”

The tiny city-state of Singapore is an example of the strategy’s success: an increasingly wealthy community buying more high-priced liquor as they also buy the stories behind them. Take James Phang who, as a young corporate consultant in 2015, was introduced by friends to the world of premium whiskies, when most Singapore bars served relatively generic pours available in supermarkets.

“It was pretty dead — there were seven or eight bars for whiskey and they didn’t bring in many different products,” he says.

So, Mr. Phang joined with friends and fellow fanatics to get better options. He created a Facebook page for bottle swaps and sales while organizing gatherings where connoisseurs shared their collections and knowledge. Eight years later, Singapore is replete with whisky-focused bars and even private members clubs focused on the spirit such as 35A Scotts. Mr. Phang is advising a whiskies and cognac investment vehicle set to be called the JAG Liquid Gold Fund.

The island nation has even become the world’s third-largest Scotch whisky importer behind the US and France. In the first half of 2023, sales rose 59% from a year earlier, to £165 million. Some of this business is due to Singapore’s position as a regional hub for distributing goods across Southeast Asia, where sales are rising overall. But local interest is at an all-time high.

In November, fans of the spirit will make their way to the annual Whiskey Live Singapore event at the Singapore Flyer, an observation wheel that dominates the bay-front skyline. There, they’ll have the chance to experience a ritualistic toast where participants yell “dram full” before they down their glass. It’s an invented take on the celebratory, and extended, Yam Seng cry that’s a staple of weddings in Singaporean and Malaysian Chinese communities.

The popularity of such events is yet another indication of the region’s increasing devotion to whiskey. “Asia’s share of the market will go up, because you’ve got 50% of the [world’s] population or more there and a huge percentage of newborns are in Asia,” BI’s Mr. Fox says. “It’s just going to be bigger in terms of math, and it should grow in value as well as volume.” — Bloomberg

#wedding #rituals #fancy #distilleries #Asia #worlds #whisky #market

Potential market for exports to Japan estimated at $107 billion

Potential market for exports to Japan estimated at $107 billion

THE Department of Trade and Industry (DTI) said Philippine exports have the potential to expand significantly, with the country in a position to supply up to $107 billion worth of products that Japan currently buys from other sources.

DTI Export Marketing Bureau Director Bianca Pearl R. Sykimte, speaking at the 2023 Philippine Investment Business Seminar on Tuesday, said the range of potential exports to Japan represents about 250 trade lines.

“For these product lines, Japan only imports around $7 billion from the Philippines, but Japan’s total imports of the same products reach as high as $107 billion,” she said.

“The Philippines is among the top global suppliers of products being imported by Japan. Hence there is a wide scope for the Philippines and Japan to expand bilateral trade based on existing and projected demand and the existing supply capacities,” she said.

Citing data from the International Trade Center, Ms. Sykimte said that the sourcing opportunities will be largest in integrated circuits, ignition wiring sets and data processing machines.

Evariste M. Cagatan, DTI executive director of Investments Promotion Services, said the Philippines and Japanese companies could look into partnerships in renewable energy, electric vehicle (EV), green metals, agribusiness, IT services and healthcare industries. 

“The Philippines offers not only its growing local market for EVs as we are seriously moving toward adoption, but we are keen to establish the Philippines as a hub for EV manufacturing and assembly,” she said.

She said that the Philippines could be a great prospect for the EV manufacturing as it possesses abundant supply of green metals and talents used in the production of EVs.

“We have opportunities in the Philippine agribusiness industry as well. The country has established a strong global presence on key commodities for exports,” Ms. Cagatan said.

“We remain committed to modernizing these sectors and we are on the lookout for partners and investors that can aid us in the production and value-adding activities through advanced agricultural technology and logistics, for which Japan has expertise and strong capabilities,” she added.

Ms. Cagatan cited the need for exploring partnerships in cold chain technology.

“At present only 60% of the agriculture or food products produced in the country pass through cold chains and the gap in capacity, especially during peak months, is estimated to reach about 100,000 pallets,” she said.

“Hence, we likewise encourage investment from Japan in the establishment and operations of cold storage warehouses and operation of temperature-controlled logistics services, not only for food, but also for pharmaceuticals and plant food items,” she added. 

The Philippine Statistics Authority estimates that Japan was the Philippines’ second-largest trading partner in July.

The value of Philippine exports to Japan during the period amounted to $861.5 million, while imports from Japan totaled $865.03 million. — Justine Irish D. Tabile

#Potential #market #exports #Japan #estimated #billion

Single market seen boosting ASEAN resilience vs supply chain disruptions

Single market seen boosting ASEAN resilience vs supply chain disruptions

By Justine Irish D. Tabile, Reporter

THE Association of Southeast Asian Nations (ASEAN) needs to make further progress in creating a single market if it is to remain resilient in the face of disruptions to global supply chains, the bloc’s Secretary-General said.

Kao Kim Hourn, speaking at the 21st Management Association of the Philippines (MAP) International CEO Conference on Tuesday at Shangri-la The Fort, said economic downturns, political uncertainty, and a less predictable environmental concerns are combining to disrupt supply chains, in which Southeast Asia plays a key role. 

“It is imperative that we expedite our concerted efforts to be more agile and more resilient and at the same time ensure sustainable and inclusive growth,” he said.

He added that ASEAN needs to focus on making the region a vibrant, thriving, single market and a hub of production serving global supply chains.

“Achieving this goal necessitates the enhancement of partnerships over the last year and beyond,” he said.

He added that such partnerships will allow member countries to form deep and important economic linkages from both in and outside of the region.

Upgrading trade agreements will keep them “future ready and responsive to emerging global and regional developments including those related to the digital, green and blue economies,” Mr. Kao said.

Thailand Management Association (TMA) Chair Nithi Patarachoke said that ASEAN should harness its strategic location to drive future growth.

“(It is) near major economies like China, South Korea, Japan and India. At the same time ASEAN is experiencing an expanding middle class population which means more demand for consumption,” Mr. Patarachoke said.

“ASEAN also enjoys extensive cross-border trade networks so, ASEAN is still viewed as a region of growth with high potential,” he added.

Singapore International Chamber of Commerce (SICC) Chair Bicky Bhangu “said that the environment we’re living in, the geopolitical tensions, the cost of doing business, inflation, (high) interest rates, supply chain disruptions, (are having) a significant impact on doing business.”

Because of this, Mr. Bhangu said there is an opportunity for ASEAN countries to act collectively.

“The main point here really is that across ASEAN is a huge value chain of opportunities from raw materials, markets, technologies, processes, and from bringing all of that ASEAN capability together gives a much stronger comparative advantage against the geopolitical tensions that were in today,” he said. 

Philippine Chamber of Commerce and Industry President George T. Barcelon said that one of the key features of the Regional Comprehensive Economic Partnership, which he said is an extension of the ASEAN, is to address the low levels of intra-region trade and investment, relative to the high levels of economic integration achieved by Europe.

“This is something that concerns us in the Philippines because in our trade among the ASEAN countries, we are on the deficit side,” he added.

Mr. Barcelon also said ASEAN countries can be more economically complementary by removing tariff barriers, improving logistics, and harmonized infrastructure standards.

MAP President Benedicta Du-Baladad said opportunities abound for agile CEOs in the geopolitical shifts.

“Even as alliances are shifting, the bottom line will always be recovery and growth — and these two are shared goals across the globe,” Ms. Du-Baladad said.

“These can potentially usher in greater regional cooperation and fan the flames for innovative and out-of-the-box ideas so that we can all thrive in this post pandemic world,” she added.

The MAP, SICC and TMA signed a two-year memorandum of partnership and cooperation (MPC) at the event.

The MPC calls for the parties to form a technical working group to “study the possibility and feasibility of establishing an ASEAN Management Organization to expand the scope of the MPC and pursue other areas of cooperation.”

Ms. Du-Baladad said that forming a management association within ASEAN is “one way of fostering collaboration, cooperation and sharing of best practices in management.”

#Single #market #boosting #ASEAN #resilience #supply #chain #disruptions

Shares inch higher as market awaits key US data

Shares inch higher as market awaits key US data

PHILIPPINE SHARES inched up on Monday ahead of the release of August US consumer price index (CPI) data that could affect the US Federal Reserve’s policy decision this month.

The benchmark Philippine Stock Exchange index (PSEi) went up by 10.80 points or 0.17% to end at 6,233.74 on Monday, while the broader all shares index rose by 3.22 points or 0.09% to close at 3,363.45.

“Philippine shares were bought up as investors look to a fresh new batch of economic data that could influence price action activity. For the week ahead in the US, investors are looking forward to key inflation data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Local stocks moved sideways with no major catalyst to move the market either way. Investors also opted to stay on the sidelines, anticipating the release of US CPI data, which is expected to provide clearer insights into the direction of US monetary policy,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

August US CPI data will be released on Wednesday.

The US CPI rose 0.2% in July, matching June’s gain. On an annual basis, the CPI advanced by 3.2%.

The US central bank raised borrowing costs by 25 basis points (bps) in July, bringing its target rate to a range between 5.25% and 5.5%.

It has hiked rates by 525 bps since it began its tightening cycle in March last year.

The Federal Open Market Committee will hold its policy meeting on Sept. 19-20.

“Meanwhile, it’s going to be a relatively quiet week for us here in the Philippines. The only economic data due for this week is the remittances [report],” Mr. Limlingan added.

The Bangko Sentral ng Pilipinas (BSP) is scheduled to release July remittance data on Friday.

In June, cash remittances coursed through banks inched up by 2.1% to $2.81 billion from $2.75 billion in the same month last year, BSP data showed.

For the first six months of 2023, cash remittances rose by 2.9% to $15.79 billion.

Sectoral indices were split on Monday. Mining and oil climbed by 188.54 points or 1.87% to 10,266.96; industrials went up by 94.04 points or 1.06% to 8,910.16; and services rose by 4.17 points or 0.27% to 1,538.10.

Meanwhile, financials fell by 5.20 points or 0.29% to 1,788.26; property declined by 2.77 points or 0.1% to 2,586.13; and holding firms dropped by 4.32 points or 0.07% to 5,979.78.

Value turnover went down to P3.62 billion on Monday with 639.89 million shares changing hands from the P3.85 billion with 445.34 million issues seen on Friday.

Decliners outnumbered advancers, 103 to 95, while 41 names closed unchanged.

Net foreign selling rose to P504.93 million on Monday from P347.89 million on Friday.

For this week, Mr. Vistan placed the PSEi’s support at 6,120 and resistance at 6,350. — S.J. Talavera

#Shares #inch #higher #market #awaits #key #data