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2016-2022 Philippine Economy Thread

buddywbuddyw PEx Influencer ⭐⭐⭐
The old thread was invalid, so let's create another one.

PSEi falls anew amid foreign fund selling

With just three days of trade left in 2016, the Philippine Stock Exchange Index is on course for a second straight annual loss as it briefly touched the 6400 level on Friday. Can things turn around next week? – ANC, Business Nightly, December 23, 2016



  • buddywbuddyw PEx Influencer ⭐⭐⭐
    Power cost to increase by March due to Malampaya maintenance

    THE electricity cost is expected to increase by March next year as the Malampaya gas plant will undergo maintenance activities.

    In a statement, Energy Secretary Alfonso Cusi ordered the industry stakeholders to start preparatory activities to safeguard energy consumers from possible impact on supply and prices of electricity during Malampaya's maintenance activities from January 28 to February 16 next year.

    “My directive was clear - the Malampaya maintenance activities should pose no substantial impact to supply of electricity by using all available resources and remedies, because power is a basic necessity for our countrymen,” he said.

    He added that plans and alternative modes should be in place and ready before the actual shutdown.

    The Department of Energy said that under the price simulation submitted by Manila Electric Company (Meralco), it projects an increase of around P1 per kilowatt hour on the generation cost rate that will be billed for the period which will be felt by their captive customers by March 2017 billing period.

    “There will be an increase, but what we will do is to minimize the increase to soften the burden to our consuming public,” Cusi said.

    To ensure power reserves during summer period, he said the 600 megawatt block of Ilijan Natural Gas Power Plant in Batangas will coincide with its maintenance shutdown to cost-efficiently use the Malampaya down time period. (SDR/Sunnex)
  • dinky207dinky207 PEx Influencer ⭐⭐⭐
    buddyw wrote: »
    The old thread was invalid, so let's create another one.

    PSEi falls anew amid foreign fund selling

    With just three days of trade left in 2016, the Philippine Stock Exchange Index is on course for a second straight annual loss as it briefly touched the 6400 level on Friday. Can things turn around next week? – ANC, Business Nightly, December 23, 2016

    and this is happening when the USA stick market is hitting record highs
  • MANILA - The World Bank said Friday it upgraded the Philippines' economic outlook for 2016 to 2018 on sustained public spending on infrastructure.
    Gross domestic product is projected to expand 6.8 percent this year, higher than the previous forecast of 6.4 percent, the lender said.

  • gotta lick itgotta lick it PEx Influencer ⭐⭐⭐
    ano ba kasi ang ginawa ni Kent10 at na-ban sa pex? beside making a mirrored thread of Sargo.
  • buddywbuddyw PEx Influencer ⭐⭐⭐
    Foreign investments slip 45% in Duterte’s first quarter

    Total foreign investments (FI) tallied during the first three months of the Duterte administration skidded by 45 percent to P26.7 billion from P48.6 billion last year, data from the Philippine Statistics Authority (PSA) showed.

    Tally from the government’s seven investment promotion industries showed that total foreign investments for the first nine months reached

    P93.3 billion, again a decline of 12.4 percent from P106.6 billion in the previous year.

    The flow of foreign investments contracted because of uncertainty brought about by Duterte’s rhetoric against the United States and European Union.

    Investments in electricity, gas steam also tapered off during the period.

    South Korea led the list of top investor-countries with P6.5 billion worth of investments in power generation, accounting for 24.3 percent of the total foreign investments during the third quarter of 2016.

    A big power project by a South Korean company almost doubled the country’s investment from P3.6 billion last year.

    The United States of America and Singapore ranked respectively as second and third major sources of approved FI during the period.

    The USA accounts for P4.6 billion investment pledges or 17.2 percent share while Singapore accounts for P4.1 billion investment pledges or 15.3 percent share.

    Approved FI from USA and Singapore increased by 178.7 percent and 86.6 percent from P1.7 billion and P2.2 billion, respectively.

    Investments pledges from USA are mostly intended to finance project in electricity, gas, steam, and air conditioning supply while FI from Singapore would fund projects in construction.

    Meanwhile, almost half, or 49.4 percent of the total approved investments in third quarter of 2016 were intended to fund projects in the electricity, gas, steam, and air conditioning supply industry. However, investments in the sector declined by 52.3 percent to P13.2 billion from P27.7 billion in the same period last year.

    Projects in manufacturing would receive the second largest amount of foreign investments at P5.1 billion, accounting for 18.9 percent of the total FI.

    The amount is 35.6 percent lower than P7.9 billion investments committed to the industry in the third quarter of 2015.

    The PSA data also showed that bulk of the approved foreign investments in the third quarter of 2016 would be intended to finance projects located in the National Capital Region (NCR).

    FI pledges that would fund projects in the said region amounts to P5.5 billion or 20.4 percent of the total FI. Foreign investments in NCR grew by 11.7 percent compared to same period last year at P4.9 billion.

    The regions with the second and third largest amount of investments for the third quarter of 2016 are Region XII – Soccsksargen with P4.7 billion or 17.7 percent and the Negros Island Region (NIR) with P4.5 billion or 16.9 percent.

    Majority of the investments in NCR are intended for projects in construction.

    For both Region XII and NIR, the ventures would be mostly in electricity, gas, steam and air conditioning supply.

    Meanwhile, FI projects approved by the IPAs in the third quarter of 2016 are expected to generate 27,938 jobs, 26.7 percent lower than 38,106 prospective jobs in the same period last year.

    The industries which are expected to generate the most number of jobs are administrative and support service activities at 13,483 jobs, manufacturing at 2,438 jobs, and information and communication at 928 jobs.

    The PSA data also showed that the approved investments of foreign and Filipino nationals reached P133.8 billion in the third quarter of 2016, down by 20.4 percent compared to last year’s approvals of P168.2 billion.

    Filipino nationals continued to dominate the investments approved during the quarter, sharing 80 percent or P107.1 billion worth of pledges.

    Total projects of foreign and Filipino investors approved by the seven IPAs for the third quarter of 2016 are expected to generate 33,590 jobs.

    Out of the total anticipated jobs for the period, 83.2 percent would come from projects with foreign interest.
  • ’16 investments to rise 15-20%

    By Irma Isip
    December 23, 2016
    The Board of Investments (BOI) is expected to end 2016 with 15 to 20 percent growth in investments, topping the less than 10 percent growth in 2015.

    This year marks the first time registrations at the agency grew at a double-digit rate.

    Ramon Lopez, secretary of the Department of Trade and Industry and BOI board chair, said the government will continue its promotion binge taking advantage of the high business confidence enjoyed by the country.

    “We are seeing more investments being approved. We estimate to grow 15 to 20 percent higher.Last year, the growth was less than 10 percent,” Lopez said.

    He attributed this year’s faster growth in investment commitments to the country’s solid macroeconomic fundamentals, large consumer base and its young demographics.

    Lopez also said investment missions and presidential visits played a huge role in not only raising further awareness on the macroeconomic fundamentals of the country, but also in highlighting the security and protection of investors in the Philippines.

    Lopez admits that some investors “possibly think twice” if they are basing their decisions on reports and criticisms against President Duterte but that after further study and finding out that policies have not changed, these investors are assured.

    “Once they (investors) get assurance, everything’s okay...(We are) going around reestablishing confidence and friendship,” Lopez said.

    “Investors look at long term. All the bases for investing are here. (What we’re saying is) stick to fundamentals... Do not listen to rhetoric.Do not get affected by political noise because the democratic process and human rights are respected and government is not sanctioning (any violations),” he added.

    Lopez said the investors are assured.

    “The process here is in order, no corruption, no bureaucracy. All indications point to robust economic demand, unemployment is low… spending power lead to higher consumption spending. The momentum is here leading into 2017,” he noted.

    Total investments from January to November stood at P324.5 billion, an increase of 35.5 percent from only P239.52 billion recorded in the same period last year. Investments in 2015 hit P366.74 billion, up three percent from P354.76 billion in 2014.

  • buddywbuddyw PEx Influencer ⭐⭐⭐
    UBS sees slower PH economic growth, weaker peso in 2017-2018

    UBS Investments Philippines expects the country’s economic growth to slow down to about 5.6 percent in 2017 and 6 percent in 2018 after having accelerated sharply in 2016 (projected at 6.5 percent to 7 percent).

    “We expect growth to slow in the Philippines – while the external balance has deteriorated, removing a buffer to global capital flows as the Fed is due to raise rates,” said UBS.

    It added that rising inflation and higher oil prices will also hurt the Philippines, as it is a net oil importer. “We look for USD/PHP at 51.0 in 2017 and 55.0 in 2018,” UBS said.

    “So far 2016 has seen extremely strong domestic demand and, in particular, booming investment growth delivered better than expected real GDP (gross domestic product) growth,” UBS said.

    It noted that the drivers of this boom were likely election-related spending (including a large fiscal impulse) and loose monetary conditions that fuelled credit growth.

    “We expect both of these to reverse in 2017 as deficit projections show a smaller fiscal impulse, and global monetary conditions tighten,” UBS explained.

    Ahead of the election in May 2016 the fiscal deficit widened sharply – from just 0.9 percent of GDP in 2015 to 2.7 ercent of GDP (seasonally adjusted) in the second quarter of 2016. This provided a sizeable fiscal impulse (defined as the year-on-year change in the fiscal deficit) to spur growth.

    “The government forecasts fiscal deficits of 3.0 percent of GDP in both 2017 and 2018 – as such there is little fiscal impulse coming through in 2017 (and none in 2018),” UBS said.

    But, since the new administration has set its focus on big infrastructure projects (including those part-financed by the private sector, or even by foreign governments), UBS said this could allow fiscal policy to be more supportive of growth than the deficit implies.

    “We doubt that this boost will come as early as 2017, infrastructure projects tend to be plagued by delays, but better traction on public projects could lift growth in 2018,” UBS said.

    However, it said there remains a risk that spending will front-run revenue raising – resulting in a higher deficit (and fiscal impulse) than forecast over the next two years.

    “The current account in the Philippines has deteriorated sharply over the past four quarters, as growth has accelerated. On the year the current account balance was 4.3ppts of GDP smaller on the year in in Q2 2016, falling into small deficit in seasonally adjusted terms,” said UBS.
  • Kent_21OKent_21O Member PEx Expert 🎖️
    Thanks buddyw for creating this thread.

    I'm using my alternate account. I'm still clueless as to why my account was banned. There was no ban notification not even warning was given.
  • gotta lick itgotta lick it PEx Influencer ⭐⭐⭐
    ^ kamusta na yun mahal na stocks mo?

    were you able to convince people to gamble on a overpriced index?
  • Economic prospects

    After growing 7.1 percent in the third quarter, multilateral agencies, such as the Asian Development Bank (ADB) and the World Bank, have raised their growth prospects for the country.

    The ADB upgraded the country’s full-year GDP forecast to 6.8 percent, from the estimate of 6.4 percent in September, and raised its 2017 outlook to 6.4 percent, from 6.2 percent.

    The World Bank projected the Philippine economy to grow at 6.8 percent in 2016, compared with the 6.4-percent forecast released in October. It also revised upward its growth projection for the Philippine economy in 2017 to 6.9 percent, compared with its October forecast of 6.2 percent. In 2018 the economy is expected to expand at 7 percent.


  • buddywbuddyw PEx Influencer ⭐⭐⭐
    Financial markets end 2016 weaker on the year than their 2015 finish

    THE COUNTRY’s financial markets ended 2016 weaker than their 2015 finish, closing a turbulent year that saw the Philippine Stock Exchange index (PSEi) extend its losing streak for a second year.
    A barometer of investor confidence, the bellwether PSEi fell 5.80 points or 0.08% to close at 6,840.64 on Thursday, down 1.6% from its finish of 6,952.08 last year.

    The local financial market will be closed starting Friday and will reopen on Jan. 3, 2017.

    “We were expecting some type of window-dressing, but Wall Street’s overnight performance put some cold water on that,” Joseph Y. Roxas, president of Eagle Equities, Inc., said in a telephone interview.

    The Dow Jones Industrial Average slid 0.56% to 19,833.68 on Wednesday, a day after nearing the 20,000 milestone, while the S&P 500 and the Nasdaq Composite Index finished 0.84% and 0.89% lower, respectively.

    The PSEi flirted with gains near the closing bell, but failed to sustain its momentum.

    “Selling seems to have dried up going into yearend,” Miguel A. Agarao, analyst at Wealth Securities, Inc., said in a mobile phone message.

    It was the second straight year of losses for the benchmark index after declining by 3.85% in 2015.

    The PSEi nearly quadrupled in value from 2009 to 2014, marked by six consecutive years of gains.

    “The market experienced a lot of volatilities in 2016 arising from unexpected developments in the global political landscape as well as the interest rate hikes in the US,” PSE President and Chief Executive Officer Hans B. Sicat was quoted in a statement as saying.

    “Despite this, we churned a relatively healthy capital raising number, considering most of these activities happened during the second half of the year. This is a testament to the strength of the local economy.”

    For the year, corporates raised a total of P170.12 billion from the equity market, dropping 7.8% from the P184.60 billion raised for the entire 2015, data from the local bourse showed.

    “We believe there will be a healthy pipeline of initial public offerings and other fund raising activities in 2017,” Mr. Sicat said.

    Despite the wild price swings, the size of the Philippine stock market expanded by 7.2% to P14.44 trillion at the close of Thursday’s trades, from P13.47 trillion a year ago.

    Daily average value turnover for the year came in at P7.81 billion, down 12.8% from P8.96 billion last year.

    “If there is ever a rollercoaster description, ito ’yun (this would be it). We started the year more or less at this level. We went extremely lower then we went to almost a new high and then bagsak na naman (we dropped again),” Eagle Equities’ Mr. Roxas said.

    The PSEi kicked off the year with steep losses of as much as 12.5% to 6,084.28 on Jan. 21, following a wave of pessimism in the global markets amid fears of a slowdown in China, plunging oil prices and rising interest rates in the United States.

    Euphoria over the election of Rodrigo R. Duterte lifted the PSEi to a high of 8,102.40 on July 21, translating to gains of 16.55%.

    The frenzy faded due to valuation issues and nervousness over Mr. Duterte’s anti-West rhetoric and pivot to China, pulling the stock market lower.

    “People got rattled by our new president because the focus was on his cussing and not on what he’s doing. Then there’s also [Republican Donald J.] Trump’s unexpected victory,” James S. Lago, head of research at PCCI Securities Brokers Corp., said in a separate interview.

    Mr. Trump’s surprise win last month delivered the knockout blow to the PSEi. The US dollar strengthened amid expectations that the President-elect would follow through on his campaign promises of higher spending and tax cuts to boost the economy, spurring a new round of interest rate hikes from the Federal Reserve.

    At the Philippine Dealing System, the peso ended P49.72 versus the greenback in the final trading session of 2016, nine-and-a-half centavos stronger than its finish of P49.815-a-dollar in Wednesday’s session.

    But the local currency was P2.66 or 5.65% weaker than its end-2015 finish of P47.06 to the dollar.

    “No one expected that money will go back to the US after [Mr.] Trump’s victory, so money is flowing out of emerging markets like the Philippines,” PCCI’s Mr. Lago said.

    The local unit traded slightly stronger on Thursday after it opened at P49.80 against the greenback, while its intraday low stood at P49.815. The peso’s strongest point for the day was logged at P49.70 a dollar.

    “The market was very quiet... as market players locked incentives to take on new positions so basically it was range trading,” a trader said in a phone interview.

    “The peso was pretty well against regional currencies. We saw a weaker dollar across the board as we saw profit taking in US equities, so people are also trying to take profit in the US market and diversify in other markets,” the trader said.
  • buddywbuddyw PEx Influencer ⭐⭐⭐
    Fuel prices to go up on Jan 3

    MANILA, Philippines – Motorists should expect higher prices for gasoline and diesel in the first week of 2017 following the oil price hike announcements of several companies on Monday, January 2.

    Total, Pilipinas Shell Petroleum Corporation, and Phoenix Petroleum Philippines Inc have announced on Monday that they will implement the price hike at 6 am on Tuesday, January 3. Price changes for Flying V will take effect at 12:01 am.

    The oil firms will increase the price of diesel by P0.60 per liter and gasoline by P0.70 per liter.

    Based on available data from the Department of Energy, the retail prices of diesel in Metro Manila since December 20, 2016 is between P28.25 to P30.10 per liter, while the prices for gasoline for the same period range between P 36.90 to P47.90 per liter.
  • orochimarusamaorochimarusama PEx Influencer ⭐⭐⭐
    Philippine shares could see rally this year, says analyst MANILA - The Philippine stock market could see a rally this year, an analyst said Monday.
    April Lee Tan, vice president and head of research at COL Financial, said the one of the key reasons for the outflow in 2016 is now out of the picture.
    "The reason why funds have been flowing out was because of a surprise event, which is the election of [Donald] Trump as president which people were not anticipating, and also remember that we peaked at around 8,100 and at that time when we were speaking to foreign investors, they were saying they loved our long-term story," she told ANC's "Market Edge with Cathy Yang."
    "The problem is [investors] found the market to be expensive...so there's a possibility that with the markets now looking much cheaper, the outflow could stop," she added.http://news.abs-cbn.com/business/01/02/17/philippine-shares-could-see-rally-this-year-says-analyst
  • buddywbuddyw PEx Influencer ⭐⭐⭐
    Taas-singil sa kuryente, nakaamba sa 2017

    NAKAAMBA na naman ang taas-singil sa kuryente na bubulaga sa mga konsyumer na sineserbisyuhan ng Manila Electric Company (Meralco) sa pagpasok ng Bagong Taon.

    Ito’y dahil sa namemeligrong magkulang ang suplay ng kuryente sa malaking bahagi ng Luzon kabilang na ang Metro Manila na tatagal nang 25 araw.

    Ayon sa Meralco, may nakatakdang maintenance shutdown ng Malampaya Natural Gas Facility mula Enero 28 – Pebrero 16 ng taong 2017.

    Kaya naman, sinabi ng Meralco na aangkat sila ng karagdagang suplay ng kuryente mula sa Wholesale Electricity Spot Market o WESM sa panahong naka-shutdown ang Malampaya

    Sa tantiya ng Meralco, aabot sa 700 megawatts ng kuryente ang posibleng mawala sa panahong nakatigil ang operasyon ng nasabing pasilidad.
  • orochimarusamaorochimarusama PEx Influencer ⭐⭐⭐
    Investments surge 20% to P441b Investment projects approved by the Board of Investments surged 20.4 percent in 2016 to P441.8 billion from P366.7 billion in 2015, boosted by foreign commitments.

    Registered projects in 2016 marked the highest in three years, or since 2013 when the figure hit P466 billion. Last year’s 20.4-percent growth also exceeded BoI’s 7-percent growth target for 2016. http://manilastandard.net/mobile/article/225685
  • CocoSantiCocoSanti 🐯 Tiger Squad🥈
    Just saw Sec. Diokno CNN fb live press conference sa CNN Philippines.

    He said P8-9 trillion pesos alloted to infra spending until the end of Duterte's term. Also its about 5 to 7% of GDP will be given to infra which has never been done before.


    1. Airport upgrades specially the popular regional airports. Opening of new ones like the San Vicente airport in Palawan which will make El Nido accessible.

    2. He also mentioned the posibility of connecting Leyte to another province which will make Luzon to Mindanao roadtrip possible.

    3. Traffic infrastructures to help the Manila traffic.

    4. More renewable energy power plants.
  • First working day of 2017...

    ...that so-called "Golden Age of Infrastructure" aka BUILD, BUILD, BUILD should start RIGHT NOW.
    They need the emergency powers first. Mukang noynoying ang congress..
  • gotta lick itgotta lick it PEx Influencer ⭐⭐⭐
    can we merge this thread with the original Philippine Economy thread, "will Rody Duterte presidency sink the PHL economy?" which was renamed by the moderator to "BLOOMBERG: Philippine Peso Sinks as Duterte Likened to Trump Leads Election Race?"

    this thread was created a week ago while the other thread started 7 months ago. if you want to chronicle the Duterte effect in the economy we should maintain only on Philippine Economy thread for 2016-2022.
  • Kent_21OKent_21O Member PEx Expert 🎖️
    6,000 more jobs for Filipinos *okay*

    TCS expanding royally: to hire 6,000 people in Philippines

    Tata Consultancy Services (TCS) is looking at increasing its employees in the Philippines to 10,000, which is 4,000 currently, as it aims at to grow in new geographies to service clients.

    The Philippines unit is the company's fastest growing unit outside India and has grown at over 40% annually over the past three years. From a 400-member team in December 2012, TCS Philippines now employs 4,000 people and has set itself an ambitious target of increasing it up to 10,000 people in the near future.
    The companies prefer Philippines as a destination for looking to set up voice-based customer service, but TCS has been trying to diversify.

    Read more from the link.
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