ABS-CBN shares on trading halt after regulator forces sign off

MANILA -- Shares of ABS-CBN Corp were placed on trading halt on Wednesday, after the Philippines' telecommunications regulator ordered it to sign off.

The National Telecommunications Commission issued a "cease and desist" order against ABS-CBN despite a request from lawmakers to grant the company provisional authority to operate beyond the expiry of its franchise on May 4 as they need more time to deliberate on its renewal.

"I think it was fair also to have a halt, otherwise it could spiral down because of uncertainty and that could also be bad for investors," BDO Capital President Ed Francisco told ANC's Market Edge.

"I still think there’s great intrinsic value in that and I’m hopeful it will be, Congress will fix it and they’ll get their temporary license or even a permanent franchise soon," he said.

The broadcast shutdown order also came as ABS-CBN sustained its broadcast and public service works, raising up to P300 million, to help those in need during the COVID-19 pandemic and resulting lockdowns.

The NTC order covers 42 ABS-CBN television stations, including the flagship Channel 2, 10 digital broadcast channels, 18 FM stations and 5 AM stations, including DZMM radio.

"We trust that the government will decide on our franchise with the best interest of the Filipino people in mind, recognizing ABS-CBN’s role and efforts in providing the latest news and information during these challenging times," the company said.

"ABS-CBN remains committed to being in the service of the Filipino and we will find ways to continue providing meaningful service to them," it said.

ABS-CBN signed off past 7 p.m. Tuesday, at the end of its flagship newscast, TV Patrol. It will continue streaming programs on its websites and on its official Facebook and YouTube channels. Cable channels will also continue operating.

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Lazada sellers back online as customers tap to new normal

MANILA -- Online marketplace Lazada said Monday a "majority" of its sellers in the Philippines are back online, reflecting how small and medium enterprises have begun to reboot from the COVID-19 pandemic.

Ahead of the last day of the lockdown in Metro Manila and other urban areas on May 15, SMEs and those involved in the logistics chain have secured rapid passes to move around, Lazada Philippines COO Carlos Barrera said.

"More and more people are coming online. People are shopping from home. They value convenience," he said.




From food and essentials, looser restrictions elsewhere allowed Lazada to offer more products such as office supplies and hardware, Barrera told ANC's Market Edge.

Lazada is "ready" for the new normal in e-commerce in coordination with trade authorities on which products can be delivered, he said.

There's also a "very good recovery" on the customer side, he said.

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China virus fallout pushes central banks to cut rates: analyst

MANILA -- Virus-stricken China poses a drag on the global economy, giving the world's central banks, including the Philippines, room to cut interest rates earlier than expected, ING Bank said Friday.

World commodity prices will remain "depressed" due to weak demand from China, where millions are on lockdown and with many countries closing their borders to those from the mainland, said ING Bank analyst Nicholas Antonio Mapa.

With Thailand cutting rates and the US Federal Reserve likely to cut this year due to the coronavirus outbreak, Mapa said investors seeking higher yields are unlikely to leave the Philippines.

"If everyone's cutting, there's no change in the relative field," Mapa told ANC's Market Edge. "Everybody's alternatives are few and far between."

Bangko Sentral ng Pilipinas Governor Benjamin Diokno fired the first half of his planned 50-basis point cut in the overnight borrowing rate last Thursday, calling it a "preemptive" move.

Diokno said first half economic growth could be reduced by 0.3 point because of the virus. Mapa said he could lower his forecast for full year growth to 6.4 percent from 6.5 percent.

The BSP governor is "very clear where he wants to be," Mapa said. "Transparency and good communications from the BSP will go a long way in maintaining financial market calm."

source: news.abs-cbn.com

US garments industry braces for trade war impact

MANILA -- The festering trade war between the US and China has created "some sort of panic" in the garments sector, though consumers are unmoved at the moment, a stakeholder said Monday.

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Asian shares edge up slightly after strong US data

TOKYO - Asian shares were a tad firmer on Thursday, taking their cues from strong US data although holiday-thinned trade and uncertainty about the impact of recent hurricanes on the US economy are likely to keep investors cautious.

MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat while Japan's Nikkei ticked up 0.1 percent.

The Philippine Stock Exchange Index was little changed, up 0.12 percent in early trading. Regina Capital managing director Victor Limlingan said there was no solid driver to sustain the market's gains.


Trade is expected to remain subdued in Asia on Thursday with China, Hong Kong and South Korea closed for public holidays and analysts cautioning against reading too much into index moves.

Wall Street's 3 major stock indexes rallied to fresh highs on Wednesday as did MSCI's all-country world stock index .

The Institute for Supply Management's index of non-manufacturing activity rose to 59.8 in September, its highest reading since August 2005, pointing to the resilience of the vast US services sector despite disruption from two powerful hurricanes.

However, data from private payrolls processor ADP showed monthly hiring slowed to an 11-month low of 135,000 although this was better than economists' median forecast.

"Shares markets were supported as economic data was generally strong," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

Economists expect Friday's nonfarm payroll report, one of the most closely watched pieces of economic data in financial markets, to show a similar slowdown.

They estimate a payroll increase in September of 90,000, substantially lower than the average over the past year of around 175,000, though some say investors may need to pay attention to state data due on Oct. 20 to exclude the impact from hurricanes.

The data also helped to lift bond yields off lows, though the market remained in well-worn ranges.

"Because US economic data for August to October is likely to be disrupted by hurricanes, markets may show a much smaller response to them," said Tomoaki Shishido, fixed income analyst at Nomura Securities.

"In that regard, the market will be focusing more on policy issues, such as tax cuts and the choice of the next Fed chair," he added.

High-rated bonds were helped also in part by worries about Catalonia's independence vote from Spain.

Spanish bond yield shot up to the highest level since March, stretching the gap over German benchmarks to the widest in more than five months after Catalonia's secessionist leader said the region will declare independence in "days."

The country's IBEX stock index posted its worst single-day loss in 15 months with a 2.85 percent decline on Wednesday.

Catalonia will move to declare independence from Spain on Monday while Spanish Prime Minister Mariano Rajoy's government called on Catalonia to "return to the path of law" first before any negotiations.

In currency markets, the euro traded little changed at $1.1761, off Tuesday's 1-1/2-month low of $1.16955.

The dollar stood at 112.77 yen, capped below last week's high of 113.26.

Oil slipped after a surprising jump in US crude exports to a record 2 million barrels per day fanned worries about global oversupply.

Brent crude futures hit a two-week low of $55.38 per barrel on Wednesday and last stood at $55.75. US crude WTI futures also hit two-week low of $49.76 per barrel and last traded at $49.90. -- with ABS-CBN News

source: news.abs-cbn.com

Endeavor searches for next Cobonpue, Bo's Coffee

MANILA - Endeavor Philippines, a group that mentors disruptive businesses, is bringing its search for high-impact entrepreneurs to Cebu, one of its officials said Monday.

In just 2 years in the country, Endeavor has helped, among others, homegrown Bo's Coffee, technology firm Xurpass and furniture designer to the stars Kenneth Cobonpue.

Its most recent startup, Lenddo, helps banks tap unconventional means like social media presence to determine the credit worthiness of the poor.

"The way we help economies grow is by helping to accelerate what we call high impact entrepreneurs," Endeavor Philippines managing director Manny Ayala told ANC's Market Edge with Cathy Yang.

"What we see is very consistent across all the markets we work in, for an entrepreneur ecosystem to thrive and flourish, really, all it needs is a handful of these high-impact entrepreneurs," he said.

Endeavor entrepreneurs generate 5 times more jobs, 2 times more revenue, are 8 times more likely to mentor other businessmen and 4 times more likely to invest in other businesses, Ayala said.

source: news.abs-cbn.com

China looks to connect with ASEAN financial markets: PSE official

China is looking at capital market integration and exploring how it can connect with ASEAN financial markets as part of its Belt and Road initiative, an official of the Philippine Stock Exchange said Friday.

PSE chief operations officer Roel Refran also said the ASEAN Trading Link initiative needs to be further studied as the Philippines is not yet "as deep in product offerings".

source: news.abs-cbn.com

BPOs feared to take hit if tax breaks removed

MANILA – Removing tax incentives for foreign companies seeking to outsource operations in the Philippines can discourage investments, an industry official said.

The business process outsourcing industry employs roughly 1 million Filipinos and is a key source of dollars that help stabilize the local currency.

“China is offering a lot of the incentives, here we are trying to take some things out. It’s like are we pushing the investors out,” said Contact Center Association of the Philippines president Jojo Uligan.

“Mahihirapan tayo (We’ll have a hard time). We can no longer compete,” he said.

The tax regime, however, is not the only consideration of investors, said finance undersecretary Antonette Tiokno. – from a report by Jekki Pascual ABS-CBN News.

source: news.abs-cbn.com

Be like Facebook, not BlackBerry: How 'disruptors' can succeed

MANILA - Entrepreneurs with groundbreaking ideas need business-minded counterparts to ensure success, an analyst said Monday, as startups around the world aspire to become the next Facebook.

Mark Zuckerberg founded the world's largest social network as a Harvard dropout but found a management hand in chief operating officer Sheryl Sandberg, said Ranjay Gulati, unit head of the Harvard Business School Organizational Unit.

Sandberg, who has an MBA from Harvard, is a former Google advertising executive who started out in the US Treasury. Zuckerberg got an honorary Harvard degree in May, 13 years after dropping out.

"What makes a great entrepreneur doesn't make a great scaler of business," Gulati told ANC's Early Edition.




Gulati said established businesses often struggle to compete with disruptors. He cited the former king of smartphones, BlackBerry, whose market share vanished as consumers ditched physical keyboards for touchscreen panels.

"They don’t know how to embrace change," Gulati said, adding BlackBerry's fault was "playing not to lose instead of playing to win."

Uber CEO Travis Kalanick resigned last month, under pressure from investors who demanded changes to the pioneer ride-sharing service's no-holds barred management culture.

Gulati said disruptors should be mindful of their corporate culture, adding, "In the end, culture is what comes back to bite you."

They should be able to empathize and "walk in the shoes of their customer," he said.

Disruptors should have a "bias for action" and be unafraid to fail, he said.

"The key word we have to think about is resilience. You're not going to get it right the first time. You have to have the resilience to keep trying, keep persisting," he said.

source: news.abs-cbn.com

Stock Picks: EEI, EastWest, Semirara

MANILA – Papa Securities research head Ramon Kabigting recommends shares of EEI Corp, which has been tapped to help build the MRT-7.

Kabigting’s stock picks also include EastWest Banking Corp and Semirara Mining and Power Corp. -- ANC, Market Edge with Cathy Yang, July 3, 2017

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Shares open higher on Wall Street rally

MANILA – Share prices opened higher on Wednesday as strong corporate earnings in the US fueled a rally on Wall Street.

The Philippine Stock Exchange was up 0.11 percent to 7,708.85. The peso opened at P49.67 to the dollar from P49.675 on Tuesday.

Foreign investors are returning to the Philippines and other emerging markets on expectations the Federal Reserve would raise rates twice more this year, instead of three times as some feared, BPI Securities research head Haj Narvaez said.

“It’s really fund flow driven,” Naravez told ANC’s “Market Edge with Cathy Yang.”

The local stock rally has room to extend since foreign funds are net sellers year to date, Narvaez said.

source: news.abs-cbn.com

Industry group pushes 1M new jobs in IT, BPO

MANILA - The country’s information technology and outsourcing sector is bullish on its target to generate one million jobs until the end of President Rodrigo Duterte’s term in 2022, an industry leader said Wednesday.

The new job openings will likely be in contact centers, software development, health care and analytics, IT and Business Process Association of the Philippines chairman Dan Reyes told ANC’s “Market Edge with Cathy Yang.”

Reyes said improving internet infrastructure in the countryside was important to meeting the job generation goal.

source: www.abs-cbnnews.com

Fed rate hike unlikely this month, analyst says

MANILA - The US Federal Reserve is unlikely to raise interest rates in its next policy meeting on September 21, an analyst said Monday.

"There is still no consensus that they will raise interest rates come September 21, but the mere prospect of higher interest rates seems to be spooking the markets," Nicky Franco, head of research at Abacus Securities, told ANC's "Market Edge with Cathy Yang."

Strong job growth in August, however, is one of the factors that may push the Federal Reserve to increase interest rates this year, Franco said.

The banking sector is seen to gain from higher interest rates, he added.

source: www.abs-cbnnews.com

UK seeks stronger ties with Philippines post-Brexit

MANILA – More companies from the United Kingdom are looking to strengthen ties with the Philippines in the aftermath of the historic "Brexit" vote, the British Chamber of Commerce of the Philippines said Wednesday.

Encouraged by President Rodrigo Duterte's plans to overhaul the country's infrastructure and open ease restriction on foreign investments, British companies are looking at the local food and beverage, education, training, and information technology sectors, group chairman Chris Nelson said.

“All of those are very good indications for future growth and we’re looking forward to seeing it develop,” he told ANC's "Market Edge with Cathy Yang."

Duterte's push to spread development to the countryside will also encourage investors to look outside capital, he said.

"While the gateway to the country is still Manila, people will still look for opportunities outside," he said.

Since 2014, over a thousand British companies have expressed interest in doing business in the Philippines, he said.

source: www.abs-cbnnews.com

Fed hike worries seen to drag on trading

MANILA – Investors will likely remain on the sidelines on Wednesday, as they await first half economic growth data, with the prospect of an interest rate increase in the United States before the end of the year weighing on sentiment, an analyst said.

The Philippine Stock Exchange Index closed 0.29 percent higher to 7,983.38 on Tuesday. Asian shares stepped back from a one-year high on Wednesday after the Federal Reserve said a rate increase could come as soon as September.

“Its going to be a quiet day today, with light risk on the downside,” BPI Securities analyst Riche Lim told ANC’s “Market Edge with Cathy Yang.”

source: www.abs=cbnnews.com

PhilWeb shares plunge

MANILA - Shares of PhilWeb continued to plunge on Monday, days after President Rodrigo Duterte singled out its chairman Roberto Ongpin as an oligarch that must be "destroyed."

PhilWeb shares plunged another 33 percent in morning trade. Its shares dropped 37 percent on Thursday.

Luis Limlingan, head of research at Regina Capital, advised investors to stay on the sidelines for now and wait for more clarity from the President.

"It seems Mr. Duterte is against online gaming as a whole. So stay away, given the fact that PhilWeb has fallen sharply, there's still room to still bottom at this point, so wait and observe...This stock is going to be driven by news, at this point, rather than performance of the company," he told ANC's "Market Edge with Cathy Yang."

PhilWeb earlier said Ongpin resigned to "save the company." It added that e-Games is not online gaming.



It said access to these clubs is strictly controlled. It also warned that closing down the business will affect 5,000 employees, and deprive the government of over P2 billion in revenues for Philippine Amusement and Gaming Corporation (PAGCOR).

PhilWeb shares are little traded, non-index issues. It is trading at a 20-month low.

In his first Cabinet meeting in June, Duterte asked PAGCOR to stop issuing licenses to online gaming firms.

PhilWeb said it has requested PAGCOR chairperson Andrea Domingo for a meeting to clarify the situation.

PhilWeb president Dennis Valdes said the company wishes to explain its side, noting that President Duterte "may have been misinformed."

"As a publicly listed company on the Philippine Stock Exchange, our records are fully open to public scrutiny and are available for a full investigation at any time," Valdes said in a statement.

source: www.abs-cbnnews.com

Global shift to equities from bonds powers market rally

MANILA – Investors shifting to equities from bonds are fueling the rally in the local stock market, an analyst said Wednesday.

The Philippine Stock Exchange Index opened at 8,034.76 points from Tuesday’s close of 8,036. It is expected to test 8,100 points, said BPI Trade CEO Mike Oyson.

“It’s about the global liquidity,” Oyson told ANC’s “Market Edge with Cathy Yang.”

With bond yields falling, “stocks now are what you call the yield instruments,” he said.

The recent strength of Southeast Asian markets show the region has become a “basket” for funds flowing out of developed markets, he said.

source: www.abs-cbnnews.com

Stock market seen testing 8,100 points

MANILA – The stock market is expected to test last year’s high of 8,100 points with sentiment boosted by robust economic growth and strong corporate earnings, EastWest Bank First Vice President and Trust Officer Angel Pacis says. – ANC, Market Edge with Cathy Yang, July 12, 2016

source: www.abs-cbnnews.com

Stock picks: Ayala Land, EastWest Bank

MANILA – COL Financial vice president for research April Lee Tan on Monday recommended buying Ayala Land Inc. and EastWest Banking Corp. shares.

Ayala Land, Tan said, would likely benefit from demand for residential space and hotel rooms as President Rodrigo Duterte moves to spread development outside the capital.

EastWest Bank shares are “very cheap” and the lender’s strategy to focus on the retail segment, where margins are higher compared to corporate banking, could pay off, Tan told ANC’s “Market Edge with Cathy Yang.”

source: www.abs-cbnnews.com

Stock picks: MPIC, Cemex, Crown Asia Chemicals

MANILA – Construction-related companies will likely benefit from President Rodrigo Duterte’s pledge to increase infrastructure spending to five percent of gross domestic product, a fund manager said Tuesday.

These include Metro Pacific Investments Corp. (MPIC), Mexican cement giant Cemex’s Philippine unit, and Crown Asia Chemicals, First Metro Investment Corp. vice president Bede Gomez told ANC’s “Market Edge with Cathy Yang.”

“Execution is the key. I believe they will be good at what they have mentioned to execute what was planned,” Gomez said of President Rodrigo Duterte, who assumed office last week promising decisive leadership.

Optimism in the market “will remain high” in the next 12 months, with the economy expected to be largely unaffected by the fallout from Britain’s decision to leave the European Union.

Duterte’s predecessor, Benigno Aquino, had planned a similar infrastructure overhaul but only the four-kilometer Daang Hari-SLEX toll road was operational by the time he stepped down.

“I hope it will not be a repeat of the previous administration… There was a lack of actual execution and implementation,” he said.

source: www.abs-cbnnews.com