Open File - Bankers Institute of the Philippines

BAIPHIL
MARKET WATCH
28 July
2015
Legend
 Improvement / Up
 Deterioration / Down
 No Movement
FINANCIAL MARKETS AT A GLANCE
PHILIPPINES
ASIA-PACIFIC
REST OF THE
WORLD
Financial Rates
USD/PHP
Current
45.5600
Stock Index
Previous
45.4900
30-D PDST-R1
91-D PDST-R1
180-D PDST-R1
1-Y PDST-R1
10-Y PDST-R1
2.0053%
2.4179%
2.7050%
3.1893%
4.4286%
2.0119%
2.0233%
2.6925%
3.1804%
4.2964%
30-D PDST-R2
91-D PDST-R2
180-D PDST-R2
1-Y PDST-R2
10-Y PDST-R2
2.0074%
2.0263%
2.7071%
3.1933%
4.3967%
2.0115%
2.0236%
2.6977%
3.2017%
4.2700%
Stock Index
NIKKEI
HANG SENG
SHANGHAI
STRAITS
SET
JAKARTA
Current
20,350.10
24,299.89
3,725.56
3,324.51
1,415.50
4,818.94
Stock Index
FTSEuro First 300
FTSE 100
DAX
CAC 40
DOW JONES
S&P 500
NASDAQ
Current
1,532.45
6,505.13
11,054.40
4,927.60
17,440.59
2,067.64
5,039.78
PSEi
Market Cap (Php Trillion)
Total Volume (Php Billion)
PSEi Performers
Current
7,547.44
11.818
4.488
Closing
Previous
7,665.52
11.966
2.976
% Change
Top Gainers
7.77
3.74
1.82
19.54%
18.73%
17.42%
Central Azucarera Tarlac
Melco Crown (Phils)
Macroasia Corp
71.55
7.15
2.15
-21.72%
-8.92%
-8.51%
Previous
20,544.53
25,128.51
4,070.91
3,352.65
1,439.41
4,856.60
Currency Exchange
USD/JPY
USD/HKD
USD/CNY
USD/SGD
USD/THB
USD/IDR
Current
123.3800
7.7506
6.2097
1.3700
34.8500
13,463.00
Previous
123.9500
7.7509
6.2095
1.3706
34.8970
13,445.00
Previous
1,547.90
6,579.81
11,347.45
5,057.36
17,568.53
2,079.65
5,088.63
Various
EUR/USD
GBP/USD
Gold Spot (USD/oz)
Brent Crude(USD/bbl)
3-M US Treas Yield
10-Y US Treas Yield
30-Y US Treas Yield
Current
1.1091
1.5552
1,093.90
52.96
0.03%
2.23%
2.94%
Previous
1.0988
1.5510
1,097.10
54.56
0.03%
2.27%
2.97%
Filipino Fund Inc
MJC Investment Corp
Da Vinci Capital Holdings
Top Losers
PHILIPPINES
 Local equities slipped today amid mixed corporate earnings releases and as US and European markets tumbled, as investors move d
ahead of the FOMC meeting slated this week. The PSEi declined by 118.08 points, or -1.54%, to close at 7,547.44. All sectors ended at
a negative turnout as the Property and Financial Sectors lost 2.91% and 1.79%, respectively. Market breadth was negative with 123
declines outnumbering 44 advances, while 41 issues remained unchanged. Total value turnover reached Php5.517 billion. Foreign
investors were net sellers at Php1.208 billion.
 The peso depreciated together with the other EM nations in Asia as the commodity selloff continued and ahead of the FOMC meeting. The
peso weakened by 7 centavos to close today at 45.560 level.
 In the local fixed income space, prices of government securities fell as market players positioned ahead of the FOMC meeting
and remained cautious ahead of key economic data releases. Yield on average rose by 5.96 basis points as the belly-ends by 14.8
basis points. Meanwhile the long-end fell by 0.8 basis point and the short-end remained unchanged today.
 Economists of private banks see lower inflation over the next three years as stable food prices are expected to outweigh the
effects of the El Niño weather disturbance, power supply shortage, election-related spending, and the US Fed interest rate
increase. Results of the survey of private sector economists conducted by the Bangko Sentral ng Pilipinas (BSP) showed a lower mean
BAIPHIL Market Watch – 28 July 2015
Page 1 of 13
inflation forecast of 2.3 percent for this year instead of the 2.7 percent average in the March survey. The survey also showed a lower mean
inflation forecast of 3.1 percent for 2016 and three percent for 2017 compared to the earlier forecast of 3.3 percent. “The analysts attributed
their low inflation expectations mainly to the decline of international food prices, which are likely to outweigh the effects of the El Niño
phenomenon, power supply shortage, possible Federal rate hike, and election-related spending,” the BSP said in its inflation report for the
second quarter. The BSP has set an inflation target of two- to four-percent for 2015 and 2016. The June survey showed 60.8 percent of the
respondents see inflation averaging between 2.1-and three-percent while 24.3 percent expect consumer prices to settle within the one- to
two-percent range. Inflation eased to a 20-year low of 1.2 percent in June from 1.6 percent in May amid stable food prices. This brought the
five-month average to 2.2 percent, near the lower end of the two to four percent band. The BSP revised its forecast for average inflation for
this year to 2.1 percent from an earlier projection of 2.3 percent and to 2.5 percent instead of 2.6 percent for next year. M onetary authorities
said risks to inflation outlook remained “broadly balanced with upward price pressures coming from pending power rate hikes and the
impact of El Niño phenomenon on food prices and utility rates.” However, slower global economic activity remains a downside r isk to
domestic inflation. The BSP sees inflation returning to the two percent level in the fourth quarter of the year as the adverse effects of the
prolonged El Niño, particularly during the lean harvest season, start to kick in. Francisco Dakila Jr., managing director of the BSP’s
Monetary Policy sub-sector, said inflation over the past few months has been falling below the target band of two- to four-percent for this
year and next year.
 British banking giant Hongkong and Shanghai Banking Corp. (HSBC) has shifted to a neutral stance towards the Philippine
equity market after taking an overweight posture at the start of the year. HSBC Asia and Pacific head of equity strategy Herald van
der Linde said the country’s equity market is now the most expensive in Asia and is susceptible to overseas shocks. The average price
earnings (P/E) multiple at the Philippine Stock Exchange is now in the vicinity of between 18 and 19 times while most Asian m arkets are
trading at 13 to 14 times he noted. Based on early July data, HSBC sees the Philippine Stock Exchange index (PSEi) closing the year at
the 7,700 level. However, Van der Linde said HSBC is still positive towards the Philippine market in general. “It’s a good balance of
positives and negatives,” the equity strategist said. “Macro wise, the Philippines is better off than most of Asia.” Van der Linde said the level
of liquidity in the Philippine market remains ample, and there are high expectations decent corporate earnings will continue for the rest of
the year. Economic growth, despite the lower-than-expected first quarter gross domestic product pace of 5.2 percent, remains in positive
territory. “The Philippine currency is still among the strongest or steadiest in the region,” he added. The Philippine market in general is still
under-penetrated in terms of financial services, providing huge potential to foreign direct investors in the banking and insurance sectors.
“Within the Asean, it is the markets we like the most,” Van der Linde added.
 Singapore-based DBS has maintained its gross domestic product (GDP) growth forecast for the Philippines, banking on the
government’s commitment to spend more in the second half of the year. DBS said in its daily research note it still expects the
country’s domestic output to expand by six percent this year as spending by the Aquino administration is seen to pick up in the second half.
“We maintain our 2015 GDP growth forecast at six percent for now but not without some downside risks. The government is commi tted to
accelerate its spending in H2, especially amidst heightened risks to GDP growth from the anticipated fall in crop production this year,” DBS
said. The investment bank added the increased spending might not happen after all as seen over the past two years. “But for t he past two
years, fiscal spending has actually slowed in the second half of the year. It remains to be seen if this year will be any different,” DBS added.
DBS pointed out that the pace of fiscal spending has been the main drag this year as it only grew 9.2 percent year -on-year in May amid the
40 percent jump in revenues. “Things have not improved much since Q1. Up until May, fiscal spending growth is trending six percent, far
behind the 16 percent growth recorded in revenues,” the bank said. DBS is not worried about the slow down in the g rowth of the country’s
merchandise exports due to improving private consumption and investments. “Export growth has moderated by more than expected so far
this year. As noted previously though, contribution from net exports to overall GDP growth has been f airly limited in recent years. Private
consumption and investment have done most of the heavy lifting in the past three years when GDP growth averaged 6.6 percent,” it
said. Just last month, DBS slashed its GDP growth forecast for the Philippines to six p ercent instead of 6.3 percent this year following a
slower-than-expected first quarter expansion. “Fiscal spending is a negative risk to GDP growth, however, given the increasingly high
public spending scrutiny ahead of next year’s elections, expect GDP growth at six percent and 6.2 percent in 2015 and 2016, respectively,”
the bank said. Philippine economic growth slowed to 5.2 percent in the first quarter but government officials stuck to their seven to eight
percent expansion target for the year.
 The Philippines remains among the key growth countries in Asia for French insurance giant AXA Group, its top official said. AXA
Group chairman and chief executive officer Henri de Castries told reporters its success in the Philippines reflects its expan sive
drive in Asia. “We are the second largest player in the Philippine life insurance market, and we are looking forward to expanding our
business,” De Castries said, hinting plans of expanding to the property and casualty (P/C) or non-life insurance business in the near future.
He said the Philippines continues to exhibit sound economic policies that would allow an increase in per capital income for 1 00-million
population. Despite it being under-penetrated (a little over one percent of gross domestic product), the improving economic environment
promises to grow the wealth of its middle class, the key market for life insurance products in the Philippines, he said. He also hinted of
AXA’s direct or indirect participation in the non-life insurance segment. ”Natural catastrophes has affected, and continues, to affect most of
Asia, with the Philippines among the worst affected,” the AXA Group chief executive said. “We want to be part of the effort t o protect the
population.” For the entire Asian region, AXA plans to cover over 100 million lives by 2030. In the Philippines, AXA has partnered with GT
Capital Inc., the holding company of the Metrobank Group. Last year, it ranked second with total premium income of P18.3 billion, and has
remained among the top 10 players in the past decade. By 2030, Asia’s population would have grown to 4.9 billion, seven times that of
Europe. Two-thirds of the world’s middle class would be found in Asia, with 60 percent of global middle class spending.
 The Philippines needs to deepen the liquidity in its bond markets to support foreign investors with projects in the country, an
official from Japanese firm Nomura Securities Co Ltd said. “We need to develop the local bond market because in infrastructure, the
revenues are local currency for foreign companies. It’s very difficult for them to invest in foreign currency because of the currency risks,”
Julius Caesar Parrenas, senior adviser at Nomura, said in a briefing late last week. “But if you have a local currency bond market, they can
raise the financing from here and invest that in infrastructure,” he said. Parrenas made the comment especially for firms investing in the
country’s Public-Private Partnership (PPP) program, meant to address the infrastructure needs in the Philippines. He said while regulators
have been continuously developing the local bond market, more measures should be in place to allow for more financial instrum ents and to
make it easier for more investors to tap the market. “One of the most important thing is the liquidity of the bond market… the thing is, there
are not enough buyers and sellers so you need more diverse issuers, sellers, and the kind of financial instruments that will allow investors
to hedge,” Parrenas said. The Aquino administration has so far awarded 10 projects worth around P189 billion under its PPP program.
BAIPHIL Market Watch – 28 July 2015
Page 2 of 13
These projects include major expressways, extension of railway systems, classroom projects, and airport improvement and expansion
programs. There are currently 13 more PPP projects to be auctioned in the next months. Parrenas said the government should work on
bringing agencies and local government units together for better coordination on PPP projects. He added this has been partly addressed
with the creation of the PPP Center although cooperation between local governments and implementing agencies should still be achieved
to create better projects.
 The Italian Chamber of Commerce in the Philippines (ICCP) says foreign appetite for investment in the Philippines continues t o
be strong as more Italian firms are eager to have their slice of the pie. ICCP president Sergio Boero told The STAR a growing number
of Italian firms – most of which were previously venturing into countries like Hong Kong, Singapore and China – have shifted their attention
and are exploring business opportunities in the Philippines. Boero said sectors which Italian companies are looking to invest into are mainly
in food and wine, agriculture, as well as hospitality and tourism. “As Italian Chamber of Commerce, we are doing our job of promoting the
Philippines as a new destination for investments and we are doing pretty well. We have increasing number of inquiries in the last six
months,” he said. Boero said ICCP strongly believes in the business potential of the country which is why it continues to organize events
and promotions aimed to facilitate trade between the Philippines and Italy. He said now is the right time to invest in the Philippines,
especially with the upcoming Asean integration. “I have great expectations from this country. I’ve been living here seven years and I have
seen this country improving a lot especially for the expats living here and I hope there will be more improvements because I see a lot of
potential,” Boero said. Boero is set to go to Italy in October this year to meet with several small and medium enterprises (SMEs) there and
discuss potential business opportunities in the Philippines. “I’m going to explain the Philippines as a country and also the possibility of
investment for our companies,” he said. ICCP, in cooperation with other European Chamber of Commerce, is working to develop business
relationships between European countries, particularly between Italy and the Philippines.
 The Philippines remains hopeful to join the pilot of an Asia Pacific Economic Cooperation (Apec) initiative aimed at allowing
financial services professionals to sell market investment products to retail customers in neighboring Asian countries.
Commissioner Manuel Huberto B. Gaite of the Securities and Exchange Commission (SEC) told reporters on Friday that Apec membereconomies—Australia, New Zealand, Singapore and South Korea—are scheduled to sign the statement of understanding for the so-called
Asia Region Fund Passport on the sidelines of the finance ministers’ meeting in Cebu in September. The Philippines was among the
countries interested to pilot the Asia Region Fund Passport, but it cannot be a part of the initiative pending the approval of its reapplication
for Appendix A of the International Organization of Securities Commissions (IOSCO), Gaite said on the sidelines of the Apec Workshop on
Infrastructure Financing and Capital Market Development held in Iloilo City. The SEC official expressed optimism that the cou ntry would be
able to become an IOSCO member by September so it could be eligible to join the Apec-led initiative by the end of the third quarter. Gaite
said Japan was also interested to join. The signing of the memorandum of understanding for the Asia Region Fund Passport would be held
in November or December, he said. Those that will pilot the initiative would be given six months to conform to the rules before actual
transaction takes place by the second half of next year, Gaite said. He said such cross-border transactions would be first limited to Apec
member-economies in Asia before members in the other side of the Pacific could participate. The official admitted that there remaine d
regulatory barriers, such as cross-border tax issues, that would deter its full implementation across all 21 Apec member-economies. Apec
had said the Asia Region Fund Passport was “intended to reduce regulatory inconsistency and overlap which makes it difficult for collective
investment scheme operators to offer products such as mutual funds to retail customers in multiple economies in the region.”
 The Bangko Sentral ng Pilipinas (BSP) said the closure of remittance firms abroad has not affected the inflow of remittances from
overseas Filipinos workers. BSP Governor Amando Tetangco Jr. said cash remittances from Filipinos working and living abroad have
increased as projected amid the tight implementation of anti-money laundering laws in countries that have large population of overseas
Filipinos. “So far our remittance has grown by more than five percent. It is still as projected,” Tetangco said. Cash remittances grew 5.8
percent to $2.09 billion in May from $1.985 billion in the same month last year amid the sustained demand for skilled Filipin o manpower
overseas. This brought to $9.9 billion the amount of cash sent home by overseas Filipinos from January to May this year, 5.4 percent
higher versus the $9.39 billion remitted in the same period last year. Major sources of cash remittances were the US, Saudi A rabia, the
United Arab Emirates, UK, Singapore, Japan, Hong Kong, and Canada. Tetangco explained regulatory authorities have imposed fines on
foreign banks found violating anti-money laundering laws. “Many have been fined and some just decided to just to close that business line.
They are leaving the remittance business,” Tetangco said. The Association of Bank Remittance Officers Inc. (Abroi) and the Association of
Private Remittance Services Companies Inc. (Appraise) – two of the country’s biggest remittance organizations – have banded together to
jointly ask the BSP as well as the World Bank and the Asian Development Bank to formally appeal to these developed countries which
have shut down their respective remittance business. Both groups are alarmed over the move by developed countries including t he US,
Australia, New Zealand, and the United Kingdom to shut down remittance firms due to suspicions these are being used to funnel funds to
terrorists. Listed remittance firm I-Remit said Appraise is appealing to authorities to initiate government-to-government discussions. “We’re
hoping for government-to-government discussions on how to help make remittance flow easier with the situation,” I -Remit chairman and
CEO Bansan Choa said earlier. I-Remit said the slowdown is a sign Filipinos abroad are now remitting in lesser amounts and less
frequently. This may be attributed to the move by big foreign banks in some countries to close the accounts of both bank-owned and
independent money transfer companies, effectively denying them access to banking services an d the use of international fund transfer
facilities.
 Bangko Sentral ng Pilipinas may keep rates until yearend. Prices of food, fuel, and other consumer goods likely grew at their slowest
pace on record in July, fueling speculation that the central bank would keep interest rates at current levels till yearend. Bangko Sentral ng
Pilipinas (BSP) Governor Amando M. Tetangco Jr. on Monday said inflation “could remain low” in July “following the significant deceleration
in June.” Fuel prices and lower power rates were tagged as the main factors for this. “The BSP will continue to monitor domestic and global
developments to ensure that the policy stance remains supportive of price stability conducive to a balanced and sustainable economic
growth,” Tetangco said in a statement. Inflation, or the average rise in consumer prices, likely settled between 0.5 and 1.3 percent in July
from June’s record-low of 1.2 percent. The July forecast would mark the third consecutive month that inflation averaged below the BSP’s
full-year target of 2 to 4 percent. Inflation stood at 1.6 percent in May. The central bank’s main goal is to protect consumers’ purchasing
power by keeping prices stable and within target, which is done mainly through interest rate adjustments.
 Banks further tightened their lending standards for commercial real estate loans in the second quarter, a year after the Bangko
Sentral ng Pilipinas (BSP) introduced stricter rules on bank’s real estate exposure. Results of the second quarter 2015 Senior Bank
Loan Officers’ Survey showed a net tightening of overall credit standards for commercial real estate loans for the 12th consecutive quarter.
BAIPHIL Market Watch – 28 July 2015
Page 3 of 13
“The net tightening of overall credit standards for commercial real estate loans was attributed by respondent b anks to perceived stricter
oversight of banks’ real estate exposure along with banks’ reduced tolerance for risk,” the BSP said. The central bank said b anks reported
stricter collateral requirements and loan covenants along with wider loan margins, shorter loan maturities, and increased use of interest
rate floors for commercial real estate loans. For the next quarter, the BSP survey showed most of the respondent banks expect to maintain
their credit standards for commercial real estate loans. The survey also revealed the demand for commercial real estate loans was also
unchanged in the second quarter based on the modal approach. “A number of banks, however, indicated increased demand for the said
type of loan on the back of clients’ improved economic outlook and banks’ more attractive financing terms,” the central bank added. Over
the next quarter, a number of banks expect demand for commercial real estate loans to continue increasing in the following qu arter.
Similarly, credit standards for housing loans extended to households showed net tightening in the second quarter due to perceived stricter
financial system regulations along with banks’ reduced tolerance for risk and deterioration in the profile of borrowers. Data showed banks’
exposure to real estate increased 23 percent to P1.27 trillion in the first quarter of the year from P1.03 trillion in the same period last year.
Real estate loans, which accounted for the bulk of the banks’ exposure to the sector, jumped 26 percent to P1.09 trillion from P866.62
billion. In June last year, the BSP introduced stricter rules on banks’ real estate exposure to ensure lenders have enough capital to absorb
any potential losses. The central bank said the new measure simply reinforces the prudential policy that banks mus t have sufficient capital
to absorb any potential shock on its credit exposures. The pre-emptive macroprudential policy measure approved by the Monetary Board
required stress tests for banks to determine if their capital will be enough to absorb credit ris k that may arise from their exposure to the
property sector. The BSP explained that universal, commercial, and thrift banks would need to meet a capital adequacy ratio of 10 percent
of their qualifying capital following the stress test results. Moreover, universal and commercial banks, along with their thrift bank
subsidiaries will also need to keep a Common Equity Tier 1 level of at least six percent of their qualifying capital. Stand -alone thrift banks,
meanwhile, are required to maintain a Tier 1 ratio of six percent of their qualifying capital. Banks that fail to comply would need to explain
formally to the BSP why they should not be given any further remedial action.
 The Bangko Sentral ng Pilipinas (BSP) urged banks anew to help pursue financial inclusion and integration in the country to give
Filipinos more access to financial services. BSP Governor Amando Tetangco Jr. told members of the Bankers Institute of the
Philippines (BAIPhil) both financial inclusion and financial integration pose challenges as well as vast opportunities. “BAIPhil itself must
navigate through a fast-evolving market landscape, appreciate and relate all the strands of change, if you are to become an effective venue
for continuing education,” Tetangco said. He pointed out training and education should be more akin to telling a good story with different
chapters and should not be only about holding lectures and workshops. “At the level of each bank, choices must be made today so that
you can maximize competitive advantages that you expect will be your strength in the future. At the level of the industry, this requires an
unwavering commitment to continuing education, to appreciate nuances without losing sight of the overall policy agenda of ins titutionalizing
change that can strengthen the system and its institutions,” he added. He said, results of national baseline survey on financial inclusion
revealed only four out of 10 Filipinos save and roughly 30 percent of those who save do in banks while nearly 70 percent keep their money
at home. He added six out of 10 adults with bank accounts indicated that the bank’s reputation is their number one consideration in
opening a deposit account. Around 50 percent of respondents mentioned interest rates as another major consideration followed by
minimum maintaining balance with 45.9 percent. Furthermore, the survey showed that 47 percent of Filipinos borrow money, of whom 72
percent borrow from family, friends and informal lenders. The BSP chief said banks as source of borrowing stood at only 4.4 percent, lower
than lending/financing companies with 12 percent, cooperatives with 10.5 percent, microfinance NGOs with 9.9 percent, and government
entities with 6.1 percent. The survey showed that more than 85 percent of respondents indicate that they want to access financial services
from formal institutions. Likewise, the BSP chief encouraged banks to take advantage of the opportunities under the Associati on of
Southeast Asian Nations (Asean) Banking Integration Framework. As part of the Asean financial integration – Qualified Asean Banks
(QABs) would be awarded equal treatment as domestic banks in the host country under the principle of reciprocity. “This may lead to
increased competition in the financial system as QABs may venture into markets which our banks have been comfortably serving in the
past. Tetangco said Philippine banks could expand its presence overseas under the integration program. “Our banks will also h ave the
opportunity to expand to other countries in the region and find new markets. Added competition will challenge banks to further improve their
operations and venture to new markets,” he said.
 Subsidies extended by the government to state-owned corporations surged 180 percent to P9.02 billion in the first five months of
the year from P3.22 billion in the same period last year, the Department of Finance (DOF) reported yesterday. Non-financial
government firms accounted for the bulk of subsidies with P6.16 billion, while other government institutions had P2.61 billio n. Financial
companies accounted for the remaining P250 million in subsidies from January to May. By agency, the National Food Authority was the
recipient of the biggest subsidy with P4.25 billion, followed by the National Electrification Authority at P731 million. The government also
released P607 million to the Philippine Children’s Medical Center and another P513 million to the Social Housing Finance Corp . The
National Irrigation Administration was the fifth largest beneficiary with P455 million, followed by the National Power Corp. at P411 million.
For May alone, subsidies given to GOCCs surged 162 percent to P4.55 billion from P1.74 billion a year ago. Government subsidi es to
GOCCs amounted to P80.44 billion in 2014, 21 percent more than the P66.33 billion in 2013. Subsidies to government firms accounted for
only four percent of last year’s public expenditures of P1.982 trillion.
 Prevailing prices of coffee, detergent and laundry soap, and basic condiments slightly increased, based on the latest price
monitoring report of the Department of Trade and Industry (DTI). The price of Great Taste Coffee Premium and granules (25g)
increased by P0.10, while Nescafe Classic (25g) added P0.20. Despite the increase, the two brands are still under the suggest ed retail
price set by DTI. Detergent soap brand Surf (390g) also added P1- P1.10 from its price set last June, while bath soap Safeguard increased
its price by 10.52 percent, from P23.30 to P25.75 for the 90g soap. Major condiments brand Datu Puti and Silver Swan also registered
P0.10- P0.35 increase for their 350ml soy sauce, vinegar and fish sauce products. Bread products, on the other hand, slashed its prices by
P0.50 for the 450g Pinoy Tasty, and P0.25 for the 250g Pinoy Pandesal. Prices for majority of other basic commodities like processed milk,
instant noodles and canned goods remained the same. For agricultural products, the price of rice is stable at P27 for the regular milled NFA
rice and P32 for the well-milled NFA rice. Likewise, meat, fish, poultry and fruit products recorded no significant increase. Meanwhile,
vegetables had the biggest increase ranging from 20-to 100-percent additional price for products like cabbage, eggplant, okra and carrots.
DTI regularly conducts price monitoring and market activities to ensure that basic goods and commodities are being sold in compliance
with SRPs mandated by Republic Act 7581 or the Price Act. Companies who engage in illegal pricing may face penalties and
administrative fines. Consumers can visit the DTI website for a more detailed prices and SRPs of basic goods and commodities.
 The Bureau of Customs (BOC) is eyeing to implement a fuel marking scheme as early as next month to plug revenue leakages
BAIPHIL Market Watch – 28 July 2015
Page 4 of 13
from oil smuggling. Customs Commissioner Alberto Lina told reporters his agency is preparing the terms of reference for this project in
which a contractor would be hired to mark oil products entering the country. This means that imported kerosene and diesel products whose
taxes have already been paid would carry the markings, making it easier for the bureau to spot smuggled oil products, Lina said. Oil
companies would shoulder the cost of the fuel marking technology, he said, adding the agency estimates these firms would spen d an
additional $25 million to comply with the new scheme. The BOC stands to generate $300 million in fresh revenues with this project as it is
expected to reduce smuggling in the country, Lina said. Lina said the bureau plans to test the program first in Visayas and Mindanao before
requiring it nationwide. In 2010, the Department of Finance (DOF) under the previous administration had already ordered the mandatory
marking or kerosene products entering the country. The measure directed the Bureau of Customs to ensure the fuel marking system is in
place in all ports nationwide and all concerned parties are informed of the new program. The order, however, was not carried for long
following the change in the administration.
 The government is looking to award 13 public- private partnership (PPP) projects before the end of President Aquino’s term. “We
are currently bidding out 13 projects… If those 13 will not encounter glitches, bid submission would be this year or first qu arter of next
year,” PPP Center executive director Cosette Canilao told reporters. If there are no glitches or requests for extensions, she said the
government may be able to award the projects before the end of President Aquino’s term. The 13 projects include the Integrated Transport
System - South Terminal Project; Bulacan Bulk Water Supply Project; Regional Prison Facilities; Operation and Maintenance of Light Rail
Transit (LRT) Line 2; Laguna Lakeshore Expressway-Dike Project; development, operations and maintenance of regional airports such as
New Bohol (Panglao), Laguindingan, Davao, Bacolod and Iloilo; Davao Sasa Port Modernization Project; New Centennial Water Source –
Kaliwa Dam Project; and the North-South Railway Project (South Line). Canilao said PPP projects which have been approved by the
National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) and NEDA Board such as the Land
Transportation Franchising and Regulatory Board’s Road Transport Information Technology (IT) Infrastructure Project and Philippine
Statistics Authority’s Civil Registry System - IT Project, would be published for bidding by the implementing agencies. Negotiations between
the Department of Public Works and Highways with the original proponent for the North Luzon Expressway and South Luzon Expres sway
Connector Road meanwhile, would still be reported to the NEDA- ICC. Canilao said the government may also be able to roll out the Ninoy
Aquino International Airport (NAIA) Development Project and LRT Line 4 Project before the change of administration next year, if approvals
would be secured this year. These two projects were endorsed by the NEDA-ICC for the NEDA Board’s approval last week. “Once
approved by the NEDA Board, then the implementing agencies can publish the projects…Those are big projects so it depends if the
bidders think they have enough time, then it is possible to complete pre-qualification and bid proper,” Canilao said. The government has so
far awarded 10 projects under the flagship PPP Program worth P189 billion. The awarded projects are the Cavite-Laguna Expressway,
Southwest Terminal of the Integrated Transport System, LRT Line 1 Cavite Extension, Mactan-Cebu International Airport Passenger
Terminal Building, Automatic Fare Collection System, Modernization of the Philippine Orthopedic Center, PPP for Sch ool Infrastructure
Project Phase I and II, NAIA Expressway Phase II Project, and the Daang Hari-SLEX Link Road.
 The Toll Regulatory Board (TRB) is considering other options for expressway operators aside from raising fees for the pending
toll rate hike petitions. Department of Public Works and Highways (DPWH) Secretary Rogelio Singson told reporters in a chance
interview the government is looking at other options apart from increasing toll road tariffs. The DPWH has a representative on the TRB.
Among the options being considered is to make direct payments to the toll road concessionaire from the national government’s budget.
“One is we pay what was made directly, which means it will not impact on the tariff but will be handled by the national gover nment,”
Singson said. Another option, he said, is to extend the concession period for the toll road. TRB executive director Edmundo Reyes, Jr. said
the options are still being studied by the board. “There are options available so we have to study. The most important (thing) is (there is)
legal basis (for the decision),” he said. He said the TRB hopes to have the decision out as soon as possible. Last year, the operators and
concessionaires of the North Luzon Expressway (NLEX), Manila-Cavite toll expressway (Cavitex), South Luzon Expressway (SLEX) and
Southern Tagalog Arterial Road (STAR) filed petitions for toll increases starting January this year. Manila North Tollways Corp. (MNTC) for
instance, sought for an average of 15 percent toll increase for NLEX, while Cavite Infrastructure Corp. (CIC) petitioned for a 25 percent hike
for Cavitex. MNTC and CIC are both units of infrastructure giant Metro Pacific Investments Corp. Meanwhile, South Luzon Tollway
Corp./Manila Toll Expressway Systems Inc. asked for a 33 percent hike for SLEX, while STAR Infrastructure Development Corp. wanted a
16 percent toll increase for STAR toll rates. Operators of SLEX and STAR have decided to drop their petitions, while MNTC and CIC’s are
pending.
 The Department of Tourism (DOT) is intensifying a campaign that will bring foreign and domestic tourists to the country’s
regions. Tourism Undersecretary Benito C. Bengzon Jr. said the department wants the equitable distribution of tourist traffic and its
economic benefits to all parts of the archipelago. “In doing so, the DOT is pushing for improvements in air connectivity, market awareness
of what each region uniquely offers, and quality of local services to foreign and domestic visitors,” he pointed out on the s idelines of the
Travel Madness Expo. “On connectivity, we encourage increased flights to secondary destinations with enormous potential such as
Mactan, Cebu, Clark, Kalibo and Davao. On market awareness, we equip our regions with promotional materials like the 30-seconder
audio-visual presentation on seven key domestic destinations – Manila, Cebu, Bohol, Boracay, Palawan, Iloilo, Davao and Siargao. And
on improving service quality, we have stepped up our training program for our (local community) partners on language proficiency,
housekeeping and food and beverage, among others,” Bengzon explained. Regional key destinations are also being groomed as gateways
to the rest of the countryside, with resource development efforts centered on, not only places, but also people in the commun ities. In her
regional accomplishment report, DOT Region 9 (Zamboanga Peninsula) director Mary June G. Bugante cited an eco-tourism project and a
“Bottom-Up Budgeting” strategy as an example of a community-focused development approach. Bugante said the DOT project, in support
to the local government of Zamboanga City, introduced the development of the Sta. Cruz islands and its Samal community for to urism
activities involving cultural immersion, fish net weaving, souvenir making, and boating services, among many others. “The project shall be
managed and operated by the beneficiaries themselves after a series of trainings intended to capacitate them in handling its day-to-day
operations. However, sale of tour packages will be through local tour operators,” Bugante s aid. Bengzon said the regional tourism
development and promotional drive is an inclusive growth strategy anchored on end-to-end tourism solutions through communitylevel partnerships and alliances, vertically and horizontally, involving policy, economic, fiscal, physical, and social infrastructure.
 The Securities and Exchange Commission has lifted the deadline for delinquent corporations to appeal its orders of revocation
or suspension. Firms whose registration with the SEC had been suspended or revoked were earlier given until the end of the year to
appeal their case. According to the SEC, delinquent corporations just need to file the reports and pay the penalty. SEC chairperson
Teresita Herbosa said the move is in line with the government’s goal of easing requirements on doing business in the country. “These
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moves are consistent with the SEC’s pending proposal in Congress to amend the Corporation Code and allow perpetual term for
corporations,” Herbosa said. At the same time, the corporate regulator said non-filing of reports should not be treated as a petty infraction
because these reports are important for transparency and integrity of the country’s corporate database. “These reports are also relied upon
by the investing public. For instance, a company’s financial statements provide investors and creditors information on a company’s financial
performance. As capital providers, investors and creditors rely on a company’s financial condition for both the safety and pr ofitability of their
investments,” she said. Under Presidential Decree No.902-A, the SEC has the power to suspend or revoke, after notice and hearing, the
certificate of registration of corporations upon any of the grounds provided by law. A delinquent corporation is given 30 days to comply with
the reportorial requirements. If no compliance is made within the 30-day grace period, the SEC’s Company Registration and Monitoring
Department will enter a “suspended status” in the affected firm’s records. The suspension order shall remain until the submission by the
delinquent corporation of its latest reports and payment of corresponding penalties. A petition to lift the order of suspensi on must be filed
together with the required reports before the company can be taken out of the suspension status. The SEC, however, stressed that the
petition to lift the order of suspension shall not apply to corporations whose certificates of registration had already been revoked or whose
corporate terms already expired.
 BDO Unibank Inc. posted a 6 percent increase in its net income in the first half of the year. The Sy-led bank registered a net income
of P11.7 billion in the first six months of 2015, up from the P11.05 billion in the first half of 2014. The increase was attr ibuted to "the
sustained growth in the bank’s lending and deposit-taking businesses, notable gains from fee-based and treasury activities and managed
operating expenses." BDO also said it sustained momentum in its core lending, and its deposit-taking businesses yielded a net interest
income growth of 10 percent, which was tempered by the prevailing liquidity in the system. Income from fee-based services and treasury
activities, meanwhile, increased by 14 percent and further boosted the bank’s overall performance. Recurring revenue streams continued
to account for over 83 percent of the bank's total operating income. “With a strong business franchise, sustained growth strategy and solid
capital base, BDO remains well-positioned to take advantage of opportunities in a growing economy,” the bank said in a statement on
Monday. BDO recently completed the acquisition of the largest rural bank in Mindanao, One Network Bank Inc. (ONB). BDO said the
acquisition expands its regional presence and opens up its business lines. BDO is the country's biggest lender by assets and is a unit of
SM Investments Corp. owned by the country's richest man, Henry Sy Sr. It has one of the largest distribution networks in the country, with
875 operating branches and 2,542 ATMs nationwide.
 Ayala Land and Puregold Price Club Inc. is set to open its first joint venture supermarket in Quezon City at the end of the m onth.
The supermarket, named Merkado Supermarket, caters to the middle income segment, and offers a wide range of fresh and grocery items,
local and imported goods, and product lines from its own bakery and rotisserie. Its first store will open at UP Town Center on July 31, 2015.
Merkado Supermarket is the product of AyaGold Retailers, Inc., a 50-50 joint venture between Ayala's ALI Capital Corp. and Puregold's
Entenso Equities Inc. "Merkado Supermarket plays a significant role in ALI's business portfolio. Not only does this strengthen and expand
our retailing business which started with our convenience and department stores joint ventures, but is also a testament to our commitmen t
in delivering a holistic environment and experience to the mixed-use communities that we are developing," Ayala Land vice president Cora
Dizon said in a statement. Merkado Supermarket extends the existing partnership between Ayala Land and Puregold with the latt er serving
as anchor supermarket at Ayala Malls Harbor Point in Subic and Fairview Terraces in Quezon City. "With the mall-based Merkado
Supermarket, this will enable us to tap a broader market. In the case of UP Town Center, this could range from students to young
professionals and young families," said AyaGold president Anthony Sy. Puregold has more than 200 stores nationwid e. For 2015, the firm
allotted P5.5 billion for the continued expansion of its businesses.
 AC Energy Holdings Inc., the power generation arm of the Ayala Group welcomed the implementation of the controversial
Competitive Selection Process or CSP for distribution utilities, a new process put in place by former Energy Secretary Carlos
Jericho Petilla for securing power supply agreements. “CSP is a critical point of EPIRA (Electric Power Industry Reform Act of 2001) to
lower cost of power. Transparent and competitive bidding does work. It’s time for us to reinforce the system. If this works, it will make
projects more financeable,” AC Energy president John Eric Francia said. In contrast, other generators and distributors are quietly opposing
the new Department of Energy circular. Francia said CSP is already being implemented in Public Private Partnership projects of the
government. “We are in favor as long as it will be managed properly,” Francia said. However, he warned the CSP may slowdown the
signing of power supply agreements. “The downside of that, learning from PPP, is it will slow down…It forces you to get the best deal, “ he
said. Petilla put in place the CSP to make the power purchase process transparent and to bring down prices as what was the goal
supposedly of the EPIRA. Manila Electric Co., the country’s biggest power distributor, on the other hand prefers a voluntary implementation
of the CSP. “CSP is still up for discussion. In order to have more platforms for ensuring cost competitiveness, having a mix of bilateral,
voluntary CSP and the WESM (Wholesale Electricity Spot Market) is the ideal mechanism. Rather than one size fits all…It’s the best
mechanism rather than force the entire distribution utility,” Meralco president Oscar Reyes said. The ERC and the DOE will issue the
implementing guidelines of the circular. According the circular, the adoption of competitive selection as a policy will encourage investments
in the power generation business, thereby ensuring availability of supply and promoting transparency in securing power supply
agreements.
 Crown Asia Chemicals Corp., expects a big boost in sales with a new manufacturing plant in Bulacan. Crown Asia chairman Walter
Villanueva said with the new plant which is expected to commence full operations in August, the company expects to be able to introduce
new products in the market, which could eventually increase sales to P1 billion. The company’s sales stood at around P900 million in 2014.
Crown Asia’s new PP-R plant has an annual capacity of 4,320 metric tons. PP-R pipe, or polypropylene random copolymer, is a special
type of pipe used in many different applications, such as residential water systems, underground heating systems, air pipelines, and many
other industrial uses, since it can handle a wide range of hot and cold water applications. “The Crown PP-R adheres to international
standards and is manufactured with high-grade quality materials for maximum safety, strength and durability. It has a complete line-up of
standardized products that are available in sizes ranging from 20- to 160-mm,” Villanueva said. He said the company understands each
customer has very specific needs and very high expectations when it comes to quality. Crown Asia positions itself as the first local
company to manufacture a complete range of highly resistant to abrasion and corrosion products and offers cutting and install ation tools for
perfect-fit precision and convenient connection systems. Moreover, the new plant will manufacture high-grade HDPE pipes. HDPE pipes
are strong, durable, flexible and lightweight and ideal for different purposes including industrial, energy, geothermal, landfill and other uses.
The company embarked on an initial public offering last April, making it the first pipe company to list in the bourse and the first to do so in
2015. Its market capitalization has now reached more than P1.5 billion. “Our transformation into a listed company was envisioned eight
years ago. It took a lot of planning, restructuring, and re-engineering of the entire organization, to meet up to the challenges of being a
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public corporation-a far cry from our humble beginnings,” Villanueva said. Crown Asia, which started operations more than two decades
ago, with just a single Taiwan machine and 22 employees grew its business through the years and added more plants, buildings and
equipment. Presently, the company manufactures PVC compounds for applications in wires and cables, IC tubings, bottles and films.
Crown Pipes, on the other hand, though the youngest in the branded pipe industry, is already a preferred supplier to projects of big-name
developers. Crown Pipes are also used in the NAIA Expressway and the NAIA rehabilitation, to name a few.
 Property powerhouse Ayala Land Inc. (ALI), through unit AyalaLand Hotels and Resorts Corp., plans to invest as much as P30
billion over the next five years to put up a slew of Seda hotels across the country. The company is likewise looking to bring the
Filipino brand of hospitality abroad by venturing into Seda’s maiden international expansion. In an interview, Seda group general manager
Andrea Mastellone told The STAR the group is targeting to invest between P20- to P30-billion for projects in the company’s pipeline until
2020. “We have many, many hotels under development. Future locations will be in Bacolod, we have one in El Nido opening soon, and w e
have a few properties in Metro Manila,” Mastellone said. Seda is looking to be a force to reckon with in the Philippine hospitality sector in
the coming years by tapping both local and foreign tourists in most of the country’s top tourist destinations. Over the next seven to eight
years, Mastellone said the Seda hotel chain is eyeing to grow between 4,000 and 6,000 rooms from its current portfolio of less than 1,000.
The Ayala group currently has four Seda hotels located in Bonifacio Global City, Cagayan de Oro City, Davao City and Sta. Ros a,
Laguna. The group will have five Seda hotels by yearend with the scheduled opening of Seda Iloilo this September. “The desire to offer a
great quality of hospitality, the desire to build a brand that could carry the Filipino flag, the desire of increasing the number of rooms
available so that tourists can be targeted more effectively,” Mastellone said when asked on the reason behind the group’s aggressive
expansion plan. As part of a large conglomerate with presence in countries outside the Philippines, Seda can also expand its foothold
internationally to tap a broader range of travelers. “For now, we’re focusing on the country because that’s where the hotels are needed the
most, but nothing forbids us to move abroad especially where large Filipino communities are present. And for sure in the future, we will be
able to put the flag in other countries,” Mastellone said. Seda hotels target the mid-market “lifestyle type” of clientele. “We’re four-star by
classification but we can also be five-star when it comes to service outcome and attention to our customers. From the software point of
view we are definitely at par with any other five stars available in the country,” Mastellone said. “You’ll find what is essential only to our
target market and our major brand promise is the location. You can be assured that any Seda you book anywhere in the country you will be
in a central location or probably in one of the best location in that town or city,” he said.
 Hotel operator Red Planet Hotels Ltd. will continue expanding aggressively in the Philippines even after parting ways with
conglomerate Tune Group of Malaysian entrepreneur Tony Fernandes. Red Planet senior vice president for sales and marketing Mark
Armsden in an email told The STAR the company intends to make significant investments in the Philippines on the back of its “strong belief
in the future of the country’s travel and tourism industry.” Armsden said the company would particularly want to scale up its presence in the
greater Manila area where it plans to expand its recently-launched “Red Planet” hotel brand. “We are in the fortunate position to not put a
ceiling on the number of hotels we can have in the Philippines, especially in the greater Manila area. We already have a very strong
geographic presence in the Philippines and are always looking for sites countrywide. Having said that, we would definitely like to increase
our presence in greater Manila,” he said. Red Planet Hotels recently ended its global franchise partnership with Tune Hotels, the value
hotel chain of the Tune Group. Existing 24 hotels carrying the Tune Hotel brand in Japan, Thailand, Indonesia, and the Philippines have
now been rebranded Red Planet. In the Philippines, Armsden said all 10 hotels are operating under the Red Planet brand since July 10.
These hotels are located in Pampanga, Manila, Makati, Cebu, Davao, Cagayan de Oro, Ortigas and Quezon City. “Both companies had an
amicable departure to concentrate on their geographical regions,” he said. Red Planet Hotels was incorporated in 2010 and is a privatelyowned regional hotel company focused on Asia’s expanding value hotel sector. The company said it has welcomed nearly four million
guests in Asia since opening its first hotel in 2011. With several rounds of capital raising from private investors already made in the past,
Red Planet said it anticipates a future public listing in the region as well. When asked if the Philippine Stock Exchange (PSE) is on its list
for a future public listing, Armsden declined to comment, saying the company’s listing strategy is still in development at present. The
company said a main component of the new Red Planet brand is a highly functional mobile application which feeds information about
relevant local events and points of interest directly to guests’ hand-held devices. It also facilitates room-to-room and front desk calling, as
well as a chat line, along with many other innovative features. “We conducted extensive surveys with many thousands of our guests across
the region and, among other things, we established that our new brand is all about giving our customers more of what they want, and less
of what they don’t. Almost all of our guests are between 20 to 30 years old, and this online generation is changing the dynam ics of the hotel
industry,” Red Planet chief executive officer Tim Hansing said.
 The Cebu-based Metro Gaisano group is reviving plans to go public this year as it seeks to raise funds to expand its growing
network, industry sources said. This developed as the Securities and Exchange Commission (SEC) said “four to six” more companies
may list at the local bourse this year, based on “inquiries” received by the commission. Industry sources familiar with the matter said the
planned initial public offering (IPO), which has been on the drawing board as early as 2011, may finally push through this year on the back
of rosy economic prospects for the retail sector. Barring any major political uncertainty this year, the source said the Gaisano group is
looking at pushing through with the offer in the second half. In May, Metro Retail chairman and chief executive officer Frank Gaisano was
quoted as saying the stock market is attractive and consumer space is strong. Owned by the Cebu-based Gaisano family, the Metro
Gaisano chain of shopping malls has a network of 44 department stores and supermarkets in Visayas and Luzon. In 2007, the group
ventured into the investment banking business with the incorporation of Vicsal Investment Inc., whose main functions include underwriting
securities for companies, brokering treasury notes and brokering equities. It also provides strategic advisory services for mergers,
acquisitions and other types of financial transactions. According to its website, Vicsal’s interests now include Wealth Development Bank, an
established development bank based in Cebu with a network of 11 branches in the Visayas and Mindanao areas; Taft Property Venture
and Development Corp., which is engaged in middle and high-end residential housing and subdivision development and commercial
building projects which include the Taft Financial Center building at the Cebu Business Park; and Filipino Fund Inc., a publicly-listed closed
end mutual fund company.
 Megaworld Corp., the Andrew Tan-led property giant, will bring its total townships to 20 by the end of the year, with the next
township set to be unveiled in one to two months time, said Megaworld senior vice president Jericho Go . “Right now we have 18
and before the year ends, we will have 20 or probably more,” Go said. One will be in Luzon and one or two in the VisMin or VisayasMindanao areas, to bring the total township portfolio to at least 20 by the end of 2015, he said. With the townships, the company expects
profits to grow at least 10 percent annually starting this year. A brainchild of Megaworld, a township has just one developer developing the
whole mixed-used area. It is different from a business district, which has many developers. “The way that we define township is first, we
BAIPHIL Market Watch – 28 July 2015
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say it’s self-contained. First, there is only one developer and one operator. A central business district is land that is cut and sold, so for
example in BGC (Bonifacio Global City), it can’t be referred as a true blue township because you have Megaworld there and so many other
developers already,” Go said. Investments in a township vary anywhere from P15- to P65-billion, depending on the size, he said. In
Megaworld township projects, the company sells the residential units and it leases the office and retail spaces. The property firm has
already launched two townships this year, namely Northill Gateway and The Upper East, both in Negros Occidental and is in the middle of
developing office spaces in its UpTown Bonifacio township. Go said the company also pioneered the development of LEED concept in its
townships. LEED stands for Leadership in Energy and Environmental Design. Developed by the US Green Building Council, it is a set of
rating systems for the design, construction, operation and maintenance of green buildings and homes. In all, the company expects the
population in its various urban townships to reach at least one million by 2020. Megaworld has at least 250,000 residents and 150,000 BPO
and office workers in all of its existing townships. The company started its commercial and retail business when Eastwood City was
established in 1999. Recognized as the Philippines’ first urban township and cyberpark, Eastwood City in Bagumbayan, Quezon C ity is
now home to almost 25,000 condominium residents and around 70,000 BPO and office workers. It used to be a 16-hectare township, but it
expanded its land area last year to meet the growing demand for residential, office and commercial spaces.
 The country’s leading convenience store operator Philippine Seven Corp. (PSC) grew its first-semester net profit by 10.1 percent
year-on-year to P356.5 million, buoyed by a double-digit rise in retail sales alongside the expansion of nationwide store network.
For the second quarter alone, net profit was up by 8.8 percent year-on-year to P243.6 million, the local licensee of 7-Eleven convenience
stores reported to the Philippine Stock Exchange on Monday. Retail sales of all stores during the six-month period went up by 24.3 percent
to P12.2 billion. PSC ended the period with 1,405 stores, expanding by 25.3 percent year-on-year. Franchised stores accounted for 61
percent of the total. In its report, PSC acknowledged that the rate of earnings growth had been slower due to the company’s c apacity
building expenditures. The retailer has been expanding its logistics infrastructure to support its unprecedented expansion in Visayas and
Mindanao. This is seen gnawing on profitability in the medium term but is seen necessary to attain its goal of dominating e ven in new
markets. “The rest of the country is relatively uncontested in comparison. We are virtually the only competitor with the critical mass to build
out proper supply chains in areas logistically unreachable from GMA (Greater Metro Manila area. Such supply chains come at a medium
term cost in terms of underutilized warehouses, and 2015 will be our nadir: we will be operating 10 warehouses by yearend (throughout
Luzon, Mindanao, and 3 islands in the Visayas), versus four in mid 2014,” PSC president Victor Paterno said in his annual report to
shareholders. To put such costs in perspective, Paterno said operators in contiguous territories typically served 1,000 stores per district but
noted that PSC, for its part, had downscaled and adapted its model to be cost-effective for smaller areas. “We wager that first movers,
especially on islands that cannot sustain more than one or two warehouses, will be rewarded with unusually dominant share, and that BPO
(business process outsourcing) trends will continue to drive growth in the remote urban areas of Luzon and the islands,” he said. In Cebu,
for instance, he noted that PSC had over 80 percent market share with its 90 stores. During the second quarter, PSC entered n ew markets
by opening four 7-Eleven stores in Davao City and Cagayan de Oro and two stores in Boracay. For this year, PSC expects to increase its
capital expenditures budget by more than 50 percent to P3 billion to support its accelerated store expansion strategy. Bulk of the amount is
allocated to new store opening, store renovation and warehouse expansion.
 Leading mass housing developer 8990 Holdings grew its six-month net profit by 18 percent year-on-year to P2.13 billion as
stronger second quarter performance made up for the flat earnings earlier in the year. This first-semester performance surpassed
the company’s mid-year earnings guidance of P2 billion and was on track with the 20-percent full-year earnings growth guidance for 2015,
8990 Holdings president Januario Jesus Atencio reported during the company’s stockholders meeting on Monday. Gross sales went up by
12 percent year-on-year to P4.51 billion in the first semester as 8990 Holdings unlocked better margins from its projects. Net margin of 47
percent in the first half 15 was now 7 percent better than the 40 percent benchmark, he said. Atencio said: “2015 is indeed shaping up to
be a good year…As we build more houses and create a DECAnation, we also need to transform people’s lives.” Since 8990 Holdings –
which sells homes mostly under the brand Deca Homes – will launch nine new projects this year, Atencio said a “momentum buildup” could
be expected. Despite embarking on start-up projects, Atencio reported that 8990 Holdings’ core business – referring to the sum of housing
revenues and contract to sell (CTS) interest income, had grown by 16 percent year-on-year to reach almost P5 billion. At 97 percent of
gross revenue, he said housing-related income remained the dominant component of income, and therefore the prime determinant of 8990
Holdings’ growth as an enterprise. “Last year, we said that the macroeconomic environment provides for a bullish and positive market for
primary housing. These factors are still in play today. What is new is Pag-IBIG Fund’s lowering their core interest rate to 6.5 percent, and
the latest HUDCC (Housing and Urban Development Coordinating Council) policy increasing the ceiling of low-cost housing from P1.25
million to P1.7 million,” Atencio said. “This means that buyers of DECA homes can now avail of lower monthly am ortizations even at higher
package prices that allow us to provide more added value to our housing products and services,” he said. Apart from launching new
residential developments, Atencio reported that 8990 Holdings had stabilized its direct costs and c ontinued the double casting of panels to
increase housing production. The company also recruited new sellers and increased prices by 7 percent compared to last year. A big factor
contributing to 8990 Holding’s improving balance sheet and cash flow position was its increasing business with Pag-IBIG Fund, Atencio
said. The company increased its business with the fund in the first semester by delivering more than 2,000 accounts with a loan takeout
value of almost P1.9 billion. “What is notable is that in just two quarters, we have already surpassed the entire year’s performance of 2014.
We believe that HDMF will increasingly be able to handle more of the industry’s business as they have, in my perception, finally turned the
corner towards what we feel is the right direction,” he said. Due to the Pag-IBIG’s loan take-outs, 8990 Holdings’ first semester cash flows
indicated a 70 percent decline in use of net cash, indicating a greater usage of internally generated funds versus borrowing. “We expect to
create more cash flows based on not only increasing deliveries to HDMF, which we target to reach P5 billion by yearend, but also our one
billion (peso) securitization which we hope to launch this year finally, as well as our discussions with certain banks toward s creating a new
facility called the purchase of CTS receivables with limited recourse,” he said. The CTS portfolio contributes about 12 percent to core
business revenue. The value of this portfolio now stood at P17 billion, comprising 19,000 accounts that generated for the first semester
P575 million in interest income.
BAIPHIL Market Watch – 28 July 2015
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ASIA-PACIFIC
 Japan's Nikkei share average fell to a two-week low on Monday, as drops in the U.S. and Chinese markets plus weak commodity
prices fuelled concerns about slowing global growth. Also denting sentiment was a Federal Reserve meeting, which opens Tuesday
and might take another step toward lifting U.S. interest rates. The Nikkei share average dropped 1.0 percent to 20,350.10 poi nts, the
lowest closing since July 13. "It started from China," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley
Securities. The global economy started the second half of the year on shaky ground with a private preliminary survey showing China's
factory sector contracted in July at the fastest pace in 15 months. Also, euro zone manufacturing was weaker than expected, although U.S.
activity picked up. On Monday, official data showed that profits at China's industrial firms dropped 0.3 percent in June from a year earlier,
reversing a 0.6 percent rise in May. "China's slowdown can cap demand for Japanese exporters as well in the future, so we ne ed to be
careful," Fujito said. The broader Topix fell 1.1 percent to 1,637.90 and the JPX-Nikkei Index 400 declined 1.0 percent to 14,783.66.
 China stocks fell sharply on Monday morning as a government-triggered rebound petered out, with attention shifting back to
weak fundamentals and lacklustre economic data. Hong Kong stocks also slumped, as Asian markets were generally softer after
losses on Wall Street and worries over China, while investors also braced for a looming increase in U.S. interest rates. The CSI300 index
fell 2.6 percent, to 4,069.73 points at the end of the morning session, while the Shanghai Composite Index lost 2.4 percent, to 3,971.53
points. Hong Kong's benchmark Hang Seng index dropped 2.8 percent. "A rapid, post-rout rebound in mainland 'A' shares has ended, and
the market has entered a stage of fluctuations, with investor sentiment increasingly unsteady," fund manager Yang Delong at China
Southern Asset Management wrote. He added that with many companies set to release their first-half earnings soon, performance of
stocks will diverge depending on their performance. Investor sentiment was soured by official data released on Monday showing that profit
at China's industrial firms dropped 0.3 percent in June from a year earlier, reversing a 0.6 percent rise in May. Hong Kong m arkets also
lost ground. The Hang Seng index dropped 2.8 percent, to 24,422.19 points while the Hong Kong China Enterprises Index lost 3.6 percent,
to 11,257.15. Hong Kong's growth board GEM slumped 4.4 percent. Shares of GOME Electrical Appliances Holding Ltd slumped 12. 4
percent, after the Chinese home appliance retailer agreed to buy retail assets from its controlling shareholder in a deal to be settled partly
by the issue of new shares.
 Most Southeast Asian stock markets fell on Monday on weak sentiment after losses in Asian stocks, with the Thai index hitting a morethan-seven-month low after weaker-than-expected exports in June. The Thai benchmark was down 1.57 percent at 1,415.50, the lowest
level since Dec. 15, with index heavyweight PTT Pcl and Advanced Info Service Pcl among actively-traded stocks. Thai exports tumbled
7.87 percent in June from a year earlier versus a forecast of 5 percent fall in a Reuters poll. Brokers in Bangkok expected w eak market
sentiment to continue in the near term. "Foreign outflows may remain, and cap the Thai market sentiment," said broker KGI Securities in a
report. Thai shares underperformed in the region last week amid foreign-led selling and expectations of cabinet reshuffle. Prime Minister
Prayuth Chan-ocha said on Monday he might consider a cabinet reshuffle after the current government reaches the end of its one-year
working period, set in place by the junta after a coup, in September or earlier. Singapore's Straits Times Index was down 0.8 percent, with
shares of DBS Group Holdings 1.1 percent lower after it reported a second-quarter net profit rise but warned of some uncertainty in the
second half. Malaysia hit a two-week low in line with a fall in the ringgit. Indonesia hovered around a more-than-two-week low and the
Philippines retreated after four successive days of gains. Investors in the region looked ahead for the U.S. Federal Reserve's address on
the economic outlook later in the week.
 Oil prices fell further in Asia Monday, hurt by a slump in the manufacturing sector in China, the world’s top energy consuming nation. A
strong dollar and signs of increasing US oil production added pressure on oil prices, which have already been depressed by a global crude
oversupply, analysts said. US benchmark West Texas Intermediate (WTI) for September delivery fell 16 cents to $47.98 and Brent crude
for September tumbled nine cents to $54.53 in late-morning trade. “The strengthening of the US dollar, weak manufacturing data from
China and rise in the US rig count added to the woes of a weak crude market,” said Sanjeev Gupta, who heads the Asia Pacific oil and gas
practice at professional services organisation EY. An independent survey on Friday showed a key gauge of Chinese manufacturing activity
tumbled to a 15-month low in July, throwing a pall over growth in the world’s second-largest economy. Caixin’s Purchasing Manager’s
Index (PMI), which tracks activity in factories and workshops, is seen as a key barometer of the country’s economic health. A figure above
50 signals growth, while anything below indicates contraction. In a sign of drillers ramping up production, US producers added 21 oil rigs
last week, according to oil services firm Baker Hughes.
 Japanese policymakers must be mindful of the potential negative impact that China's economic slowdown could have on
Japanese exports, central bank Deputy Governor Hiroshi Nakaso said on Monday. He also warned of the risk that an expected
interest rate hike by the U.S. Federal Reserve could heighten global market volatility and hurt emerg ing markets vulnerable to capital
outflows. While China's economy is expected to stabilize on stimulus measures taken so far, its slowdown may be prolonged by the huge
slack in output and the property market, he said. "Even if China's economy maintained its growth rate, the main contribution would be from
public investment, so the effect on Asian economies and Japan's exports warrants due attention," Nakaso told business leaders in
Kumamoto, southern Japan. Still, Nakaso voiced confidence Japan's economy can weather such global risks, and stressed that exports
will emerge from the doldrums as global growth picks up. "The slowdown in exports and output are likely temporary," he later told a news
conference.
 The Chinese investment firm buying Royal Philips NV’s lighting components arm is targeting more European acquisitions as
large as $10 billion. GSR Capital will pursue overseas deals in technology, clean energy and pharmaceuticals, as well as online finance,
Chairman Sonny Wu said. The firm, which said Monday it plans to raise a $5 billion global acquisition fund, will target Europe where
valuations are more reasonable than in the U.S., according to Wu. “We’re looking at the top one or two companies in the world in their
BAIPHIL Market Watch – 28 July 2015
Page 9 of 13
sectors,” Wu said in an interview Monday in Hong Kong. “They may not be growing fast, but they will with the China angle.” Wu, a former
Nortel Networks Corp. executive with backing from a Hong Kong solar-power magnate, is raising a buyout fund to source larger
acquisitions of technology-heavy companies with the potential to grow in China. He’s seeking to add to the $28.1 billion of cross-border
deals by Chinese private-equity firms this year, up from $10.2 billion during the same period in 2014, data compiled by Bloomberg show.
GSR, which has offices in Beijing, Hong Kong and Palo Alto, California, also runs venture and growth capital funds. The firm will be
branching out into biotechnology and health care, according to Wu. “Pharmaceuticals is huge in China. Other guys are setting up hospitals,
or helping restructure state-owned enterprises. We don’t do that,” he said. “We want to acquire pharmaceuticals companies -- we’re
scanning the world -- and bring them to China.” A GSR-backed fund is leading a group of investors that agreed in March to acquire control
of the Philips Lumileds business for $2.8 billion. The buyers have received U.S. antitrust approval for the deal and aim to complete the
purchase by October, Wu said. Wu’s funds, whose executives have worked at companies including Samsung Electronics Co., will p artner
with entrepreneurs to enter areas where GSR doesn’t have its own expertise, he said. In China, “the people who will make money have to
compete globally,” Wu said. “We want to change the industrial landscape.” (Company corrected Wu’s comments in the seventh par agraph
of an earlier version of this story to show the investor group has received U.S. antitrust approval.)
 Indonesia's foreign direct investment (FDI) grew at the fastest pace since 2013 on yearly basis in the second quarter - a bright
spot in an othwerwise weak economic outlook. Annual growth in Southeast Asia's largest economy was only 4.71 percent in the first
quarter, the slowest since 2009, and Bank Indonesia predicted second quarter growth to be just as weak as domestic consumptio n wanes
and exports fall. Last year was an election year, which tended to reduce investment and consequently its contribution to economic growth.
But in April to June Indonesia recorded 92.2 trillion rupiah of realized FDI, the investment board said on Monday, up 18.2 percent from a
year ago, and accelerating from 14 percent growth in the prior three months. "Investment has kept on going despite economic slowdown,"
said Franky Sibarani, chief of the investment board. The FDI data, which excludes banking and the oil and gas sector, was rep orted in
rupiah terms with an exchange rate of 12,500 per dollar, 7 percent stronger than the current rate of around 13,450 on Monday, which
would reduce the FDI increase in dollar terms. David Sumual, Bank Central Asia's economist in Jakarta, said previous reports of FDI had
shown an uptick in rupiah terms when it actually contracted in dollar terms. But in the second quarter of this year, he said, the data looked
more promising. "This looks like investment has actually risen, which is good because going forward, the only source of econo mic growth
would be investment and government spending," said Sumual, adding he expected positive results from President Joko Widodo's multiple
foreign trips to promote investment. Widodo said he wants to rely on foreign investment as a new economic growth engine to he lp achieve
a target of 7 percent average annual economic growth in his presidential term, which ends in 2019. Indonesia's investment board said the
country needs 3,518 trillion rupiah ($261.66 billion) of investment from both domestic and foreign sources to achieve that gr owth target. In
April, Widodo's administration simplified business tax arrangements, hoping the incentive would bring in more investment. "Some of the
government's policies are investor friendly, but some others are not, particularly in the oil and gas, agriculture, and the c ement industry.
Foreign investors have said they don't like the interventionist policies," said Eric Sugandi of Standard Chartered. Malaysia was the biggest
source of investment in the June quarter, expanding the network of telecommunications operator PT XL Axiata T bk into 4G. The company
is a subsidiary of Axiata Group Berhad. The transport and telecommunication, mining, and construction industries were the big gest
recipients of FDI in the second quarter.
 Foreign investors have poured an estimated $7.4 billion in projects in Vietnam as of July 20, a rise of nearly 9 percent from a year
earlier, the Vietnam Economic Times newspaper reported, citing data from Planning and Investment Ministry. New FDI pledges rose 1
percent in the same period to $6.92 billion, the report said.
REST
OF THE
WORLD
 European stocks declined for a fifth day, as investors weighed company earnings amid a rout in Asian shares. Ryanair Holdings
Plc led a measure of travel and leisure companies to the worst performance on the Stoxx Europe 600 Index, dropping 2.7 percent after
saying that over-capacity could weigh on average fares. The Stoxx 600 retreated 1.5 percent to 388.91 at 8:24 a.m. in London. Stocks
posted their first weekly drop in three last week as data around the world signaled worsening economic conditions. In Asia, C hina’s
benchmark index headed for its biggest loss in more than eight years amid concern a three-week rally sparked by unprecedented
government intervention is unsustainable. Europe’s earnings season is picking up pace, with about 190 Stoxx 600 companies sch eduled to
report through the rest of the month. Royal Philips NV gained 3.9 percent after posting better-than-expected earnings on rising demand in
North America, Eastern Europe and India. Reckitt Benckiser Group Plc advanced 1.6 percent after the maker of Dettol disinfectants
reported second-quarter revenue growth that beat estimates and raised its full-year growth target.
 Wall Street sank on Monday, with the Nasdaq losing almost 1 percent after the steepest decline in Chinese stocks in eight years
increased concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners. The Dow Jones
industrial average finished at its lowest level since February, and the S&P 500 chalked up a five-session losing streak for the first time
since January. In addition, 480 stocks hit 52-week lows on the New York Stock Exchange, the most in one day since Oct. 15. After
Chinese stocks plunged more than 8 percent, the country's top securities regulator said Beijing would keep buying shares to s tabilize the
market as an unprecedented rescue plan already in place appeared to sputter. Commodity prices resumed a downward spiral, with the
Thomson Reuters CRB commodities index hitting a six-year low and oil a four-month low. "It's hard to assess whether China singlehandedly can deep-six the market," said Chuck Carlson, chief executive at Horizon Investment Services in Hammond, Indiana. "A
significant slowdown in China impacts not just the U.S. but global players as well." The Dow Jones industrial average fell 0. 73 percent to
end at 17,440.59 points. The S&P 500 lost 0.58 percent to end at 2,067.64. The Nasdaq Composite dropped 0.96 percent to 5,039.78.
Nine of the 10 major S&P 500 sectors were lower, led by a 1.35 percent fall in the energy index. With second-quarter reports well under
BAIPHIL Market Watch – 28 July 2015
Page 10 of 13
way, analysts expect overall earnings of S&P 500 companies to dip 0.3 percent and revenue to decline 3.9 percent, according to Thomson
Reuters data. Such results could inflate already relatively pricey valuations. The S&P 500 is trading near 16.9 times forward 12-month
earnings, above the 10-year median of 14.7 times, according to StarMine data. "Valuations are a concern right now," said Randy Frederick,
managing director of trading and derivatives for Charles Schwab in Austin, Texas. "We really need to see corporate revenue gr owth." The
main event for U.S. markets this week is likely to be the two-day U.S. Federal Reserve meeting beginning on Tuesday, the last policy
meeting before September, which still looms as the first possible date for an interest rate increase.
 Mario Draghi can take a break from being a full-time Greek crisis firefighter and get back to the job of fostering economic
recovery across the euro area. Although the 19-nation currency bloc has avoided losing a member and the market upheaval that might
have entailed, reports this week will probably show the economy is hardly firing on all cylinders. Three years after Draghi promised to do
“whatever it takes” to keep the union together, the European Central Bank has its work cut out to speed up the pace of growth and inflation.
A weaker euro and the ECB’s quantitative-easing program are helping the economy find its feet, with the second quarter forecast to show a
ninth quarter of expansion. Consumer-price growth remains too low, however, and unemployment, particularly in southern European
states, is stubbornly high. The Greek issue moves from page 1 to 2 or 3 in the minds of traders and economists,” said Holger Sandte, chief
European analyst at Nordea in Copenhagen. “Now attention turns to more classic macro style things.” The euro-area jobless rate was little
changed at 11 percent in June, while inflation held at 0.2 percent in July, according to surveys of econ omists before data this week.
Economic confidence probably dipped this month, as did Germany’s Ifo business climate index. Due at 10 a.m. Frankfurt time, economists
predict it fell to a five-month low of 107.2 from 107.4.
 Greek banks are set to keep broad cash controls in place for months, until fresh money arrives from Europe and with it a
sweeping restructuring, officials believe. Rehabilitating the country's banks poses a difficult question. Should the euro zone take a
stake in the lenders, first requiring bondholders and even big depositors to shoulder a loss, or should the bill for fixing the banks instead be
added to Greece's debt mountain? Answering this could hold up agreement on a third bailout deal for Greece that negotiators w ant to
conclude within weeks. The longer it takes, the more critical the banks' condition becomes as a 420 euro ($460) weekly limit on cash
withdrawals chokes the economy and borrowers' ability to repay loans. "The banks are in deep freeze but the economy is gettin g weaker,"
said one official, pointing to a steady rise in loans that are not being repaid. This cash 'freeze' is unlikely to thaw soon, although capital
controls may be slightly softened, such as the loosening on Friday of restrictions on foreign transfers by businesses. "Ultimately, you can
only lift the capital controls when the banks are sufficiently capitalized," said Jens Weidmann, the head of Germany's Bundes bank, which
pushed the ECB to pare back bank funding, leading to their three-week closure. The debate is interlinked with a wrangle over reforms,
about Greek sovereignty in the face of European controls and whether the country can recover with ever rising debts that have topped 300
billion euros, far bigger than its economy. Were another 25 billion euros to be piled on top - the amount foreseen for the recapitalization of
Greek lenders - it would add to debts that the International Monetary Fund has argued are excessive.
 UBS (UBSG.VX) posted on Monday a bigger-than-expected jump in second-quarter net profit as the Swiss bank released results
one day early following a newspaper report on the figures. Net profit rose 53 percent on the year to 1.2 billion Swiss francs ($1.25
billion), much more than the 3.2 percent rise forecast in a Reuters poll of analysts that was not published before the Zurich-based bank
posted earnings. "In order to be transparent and counter certain incorrect and misleading information that has become public, UBS chose
to release its second quarter 2015 results one day early," the Swiss bank said in a statement. On Sunday, Swiss weekly Sonnta gszeitung
said that the Zurich-based bank would post a year-on-year increase of about 25 percent in quarterly net profit. In a statement, UBS Chief
Executive Sergio Ermotti said he was "pleased with the quarter". The above-consensus earnings come just a few days after cross-town
rival Credit Suisse (CSGN.VX) posted figures and flagged an overhaul of its strategy that helped shares surge more than 6 percent. UBS's
private bank posted adjusted net new money growth, a key indicator of future revenue, of 8.4 billion francs in the second quarter, above the
poll consensus. UBS also bolstered its capital cushion, a measure of a bank's ability to withstand a crisis, to 14.4 percent.
 The U.S. auto safety watchdog, toughening its stance against manufacturer defects, announced on Sunday a record $105 million
in fines against Fiat Chrysler Automobiles NV (FCHA.MI) over lapses in safety recalls involving millions of vehicles. The ItalianU.S. automaker's consent agreement with the National Highway Traffic Safety Administration contains an unprecedented buyb ack option
covering hundreds of thousands of vehicles, including more than 1 million Jeep sport utility vehicles, whose owners can recei ve a trade-in
or a financial incentive to get their vehicles repaired. Fiat Chrysler also agreed to submit to an independent monitor's audit of its recall
performance over a three-year period. The $105 million in fines sets a new standard for NHTSA's dealings with car manufacturers,
eclipsing the previous record fine of $70 million imposed against Honda Motor Co (7267.T) i n January for failing to report death, injury and
other claims. Last year, General Motors Co (GM.N) was ordered to pay $35 million for a decade-long delay in reporting faulty ignition
switches tied to more than 120 deaths. NHTSA has taken a more aggressive enforcement posture under its new administrator, Mark
Rosekind, after coming under fire from leaders of both parties in Congress for lapses in its handling of deadly defects, incl uding Takata
Corp (7312.T) air bag inflators and GM ignition switches. "Fiat Chrysler's pattern of poor performance put millions of its customers and the
driving public at risk," Rosekind said in a statement. "This action will provide relief to owners of defective vehicles, will help improve recall
performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture." The recalled
vehicles covered by the agreement include Dodge Ram, Dakota and Chrysler Aspen trucks from model years as early as 2008. More than
half a million of the vehicles subject to buybacks have faulty suspension parts that can cause a loss of control. Fiat Chrysler's U.S. unit
FCA US LLC, formerly Chrysler Group LLC, said it accepted the consequences of the agreement with "renewed resolve to improve our
handling of recalls and re-establish the trust our customers place in us." The fines include a $70 million cash payment, an agreement that
Fiat Chrysler will spend $20 million improving its recall process and an additional $15 million payable if the automaker is found to have
committed any further violations. The two sides have been engaged in discussions since NHTSA held a July 2 public hearing on Fiat
Chrysler's recall performance. At the proceedings, NHTSA staff cataloged alleged failures in 23 separate recalls including what they
termed misleading behavior, while an FCA executive pledged to work with the agency to improve the automaker's recall programs . Fiat
Chrysler has had a contentious relationship with NHTSA for years, pushing back on the agency's efforts to secure recalls and threatening
lawsuits to avoid mandatory action, according to former auto regulators. Fiat Chrysler Chief Executive Sergio Marchionne tol d reporters
this month that the company needs to change the way it deals with regulators going f orward. "We are intent on rebuilding our relationship
with NHTSA," the automaker said on Sunday.
BAIPHIL Market Watch – 28 July 2015
Page 11 of 13
UPDATED GUIDELINES ON SOUND CREDIT RISK MANAGEMENT – 07 August 2015
INVESTMENT 101 – 08 & 15 August 2015
DEVELOPMENTAL COURSE ON TREASURY PRODUCTS (8-Days)
- Basics of Financial Math – 11 July 2015
- Basics of Fixed Income Securities and Bond Duration (2 Days) – 18 July & 01 August 2015
- Spot, Forwards and FX Swaps – 15 August 2015
- Interest Rate Swaps – 19 September 2015
- Bootstrapping – 26 September 2015
- Currency Swaps and Forward Rate Agreement – 03 October 2015
- Financial Options – 10 October 2015
For details, please contact BAIPHIL via telephone (853-4457/519-2433) or email training@baiphil.org.
FY 2015-2016 Chairpersons/Coordinators
Audit
BAIPHIL Week
Finance and
Budget
Membership
Legal and
Regulatory
PR &
Publications
Programs &
Attendance
Research &
Info Exchange
Special
Projects
Sports &
Fellowship
Technology
Management
Myrna E Amahan, UBP
Rommel D Meniado, Rbank
Maria Victoria F Abanto, PNB
Reuben Enrique I Estrada, Citibank
Marissa B Espino, ChinaBank
Ma Bernadette T Ratcliffe, EWB
Herminio J Matute, Northpoint Dev’t
Bank
Sheryll K San Jose, EQUICOM
Ma Elena M Ruiz, Assoc Life
Member
Jose Enrico T Sandoval,
Bank of Makati
Rene S Natividad,
BANCNET
Education & Training
Business &
Racquel S Manago, PBCom
Products
Maria Elena S Guce, Citibank
Corporate
Susan R Alcala-Uranza
Governance
Past President
Finance & Tax
Marilou C Bartolome, MBTC
Audit, Legal &
Romel D Meniado, RBank
Compliance
Blesilda P Andres, BPI
Loans & Credit
Carlota A Bacani, ANZ Bank
Operations &
Angelo DennisL Matutina, UBP
Technology
Racquel B Manago, PBCom
Risk
Edeza A Que, PSBank
Management
Racquel B Manago, PBCom
July 15-31
July 15
July 16
July 18
July 19
July 20
July 21
July 23
July 24
July 25
July 26
July 27
July 30
Ma Lourdes G Trinidad, RCBC Savings
Aida R Apostol, Associate Life Member
Fernando S delos Reyes, Deutsche Bank
Gary A Vargas, Planters Bank
Ma. Rodora E Banares, Bank of Makati
Florante M Garcia, HSBC
Articer O Quebel, Past President
Florentino M Mendoza, RCBC
Francis S Guanzon, Bangko Kabayan
Catalino T Solidum, Bank of Makati
Rowena A Marcelang, SCB
Elizabeth C Say, China Bank
Celia M Sotto, Associate Life Member
Ma. Christina B Goco, SBC
Noel A Flores, CTBC
Manuel C Valdez, PBB
Reynante S Banico, Associate Life Member
Jose Enrico T Sandoval, Bank of Makati
Lilia M Diokno, UCPB
Cenon M Ladringan,Producers Bank
BAIPHIL Market Watch – 28 July 2015
Page 12 of 13
KILLER BEES - An individual or firm that helps a company fend off a takeover attempt. A killer bee uses
defensive strategies to keep an attempted hostile takeover from occurring. Companies use a variety of antitakeover measures, sometimes referred to as shark repellents, to discourage unfriendly takeover attempts
from happening. Once an unfriendly takeover attempt has been initiated, the company can use other antitakeover measures to deter or prevent the takeover.
“A smart man makes a mistake, learns from it, and never makes that mistake again. But a wise man
finds a smart man and learns from him how to avoid the mistake altogether.”
-
Roy H. Williams
Why do birds sing?
Male birds actually do most of the singing, primarily to stake out their territory and to invite females
of their species over to mate. Females tend to select as mates those male birds who sing the most.
It is believed they do this not because they like the quality of the singing, but because they have
learned the males who sing the most have the most food in their territory. Since the male doesn’t
have to spend much time hunting for food, it has more time to sing.
Tell me the name!
500 at the beginning, 500 at the end,
5 in the middle is seen,
The first of all letters and the first of all roman numerals took their stations in between,
String them all together, and you will see The name of an ancient king.

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BPI Asset Management
Business World
Philippine Daily Inquirer
Philippine Star
Compiled And Prepared By:
Research Committee FY 2015-2016




GMA News
ABS-CBN News
Bulletin Today
Reuters
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Sources
Bloomberg
CNN
Wall Street Journal
Strait Times
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Investopedia
Brainy Quotes
Goodreads
Corsinet – Trivia




Trivia Of The Day
Filipi-Know
Phrases.Org.UK
Fun, Trivia & Humor
Director: Maria Teresita R Dean (PBCOM)
Chair:
Sheryll K. San Jose (Equicom Savings Bank)
Members: Rachelle A Fajatin (Equicom Savings Bank)/ Catalina R Avila (DBP)
DISCLOSURE: The BAIPHIL Market Watch (BMW) is for informational purposes only. The content of the BMW is sourced from third party websites and may be subject to change without notice. Although the
information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by BAIPHIL or any of its directors, officers or employees, and BAIPHIL is not under any obligation
to update or keep current this information
BAIPHIL Market Watch – 28 July 2015
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