Day: June 1, 2023

The outlook for the domestic bond and equities market looks bright if the domestic inflation rate sustains its deceleration, executives of Manulife Investment Management (IM) and Trust Corp. Philippines said Thursday. In a commentary, Manulife IM Philippines head of fixed income Jean de Castro said a further slowdown in the rate of price increases in April to 6.6 percent from 7.6 percent the previous month affirms ‘that inflation may have already peaked for the Philippines.’ She cited the likelihood that negative base effects in the succeeding months would ‘significantly result in slower inflation data in line with the BSP (Bangko Sentral ng Pilipinas) inflation forecast for May.’ ‘Looking ahead to 4Q (fourth quarter), local inflation can be expected to fall within the BSP’s 2 (percent) to 4 percent target range, barring any sharp increases in global oil prices. The moderating inflation environment coupled with the pause in monetary policy actions supports the positive local bond outlook for the second half of 2023,’ she added. Inflation rate posted a slower annual rate for the third consecutive month in April after hitting a 14-year high of 8.7 percent in January. This is the reason for the cut in the central bank’s average inflation forecast for this year from 6 percent to 5.5 percent and the expectations that monthly figures would return to within the government’s 2 percent to 4 percent target band starting in the last quarter of this year. For May this year, the BSP forecasts inflation to stay within 5.8 percent to 6.6 percent. Manulife IM Philippines head of equities Mark Canizares said ‘moderating inflation should be able to provide support to local share prices going into the second half of the year.’ ‘Rate-sensitive sectors, such as residential property, will likely benefit from this tailwind,’ he said. Canizares said domestic consumption continues to improve as the economy has fully reopened. This, he said, is boosted by the easing of prices ‘as raw material and other input costs moderate.’ ‘Should the trend of deceleration continue in the second half, the local market’s focus will likely shift to when interest rates will peak and eventually decline,’ he said, adding that ‘lower rates historically help drive a rally in equity markets.’ The deceleration of the inflation rate is among the factors on local monetary authorities’ decision to keep the BSP’s key rates steady last month, after hiking it by a total of 425 basis points since May 2022. Some economists forecast the BSP to maintain its current stance unless inflation reverses its path.

Source: Philippines News Agency

Three more Kadiwa stores will open in Antique this month to expand to 23 the available outlets in this province. ‘The Department of Agriculture upon the instruction of President Ferdinand R. Marcos Jr. is establishing more Kadiwa stores in partnership with the cooperatives to ensure that rice and other agricultural crops could be bought by the consumers especially the indigents at lower prices,” said Engineer Israel de Guzman, general manager of the Jubilee Agila Bayanihan Agriculture Cooperative, in an interview on Thursday. The cooperative that supervises the operations of the program in Antique opened four outlets in the municipality of Sibalom, the biggest town of the province, bringing to 20 the total operating stores in the province this week. The three stores will be opened in the municipalities of Hamtic, Anini-y and Tobias Fornier. ‘The local government unit of Hamtic has offered a space for the Kadiwa retail store inside their town public market,’ he added. The new outlet will be bigger when compared with their existing store in Barangay Bia-an. De Guzman said one of their best-selling commodities is rice that they sell at PHP20 a kilo, citing feedback from their store operators. ‘The Kadiwa stores especially had been helpful to the indigents who need to buy rice for PHP20 per kilo during this time when we are experiencing heavy rainfall,’ De Guzman said. The demand is high during rainy days because consumers need to stock their supply amid the inclement weather that limits their movement. One outlet can dispose of two sacks of rice in a day. He added that with donations from some overseas Filipino workers (OFWs), they were able to keep the price at PHP20 a kilo, which is lower than those being sold in commercial stores. The donated amount served as a counterpart payment, he said. The OFWs are die-hard supporters of President Marcos and are keen on seeing that the Kadiwa realizes its objective of selling affordable, fresh, and quality agricultural products to consumers, particularly the indigents

Source: Philippines News Agency