BAIPHIL Market Watch – 15 February 2017

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BAIPHIL MARKET WATCH

15 Feb

2017

Legend Improvement / Up Deterioration / Down No Movement

FINANCIAL MARKETS AT A GLANCE

PHILIPPINES

Financial Rates Current Previous

USD/PHP 49.8800 49.9200

30-D PDST-R1 2.6625% 2.4214%

91-D PDST-R1 2.2176% 2.4339%

180-D PDST-R1 2.4145% 2.6786%

1-Y PDST-R1 2.7443% 2.9161%

10-Y PDST-R1 4.9446% 4.8714%

30-D PDST-R2 1.9273% 2.4300%

91-D PDST-R2 2.2503% 2.1175%

180-D PDST-R2 2.4528% 2.3663%

1-Y PDST-R2 2.7398% 2.7169%

10-Y PDST-R2 4.2905% 4.8696%

Stock Index Current Previous

PSEi 7,206.84 7,294.67

Market Cap (Php Trillion) 12.326 12.442

Total Value (Php Billion) 7.301 5.861

PSEi Performers Closing % Change

Top Gainers

Chemical Industries of the Phils

182.00 19.74%

Imperial Resources Inc B 130.00 19.27%

Roxas & Company, Inc 2.40 18.23%

Top Losers

Marcventures Holdings, Inc 1.60 -13.51%

Philex Mining Corp. 8.90 -12.75%

Concrete Aggregates Corp 101.00 -12.17%

ASIA-PACIFIC

Stock Index Current Previous

NIKKEI 19,238.98 19,459.15

HANG SENG 23,703.01 23,710.98

SHANGHAI 3,217.93 3,216.84

STRAITS 3,072.47 3,100.39

SET 1,572.24 1,585.24

JAKARTA 5,380.67 5,400.96

Currency Exchange Current Previous

USD/JPY 114.3200 113.5100

USD/HKD 7.7598 7.7589

USD/CNY 6.8675 6.8790

USD/SGD 1.4219 1.4206

USD/THB 35.0400 35.0700

USD/IDR 13,329.50 13,315.00

REST OF THE WORLD

Stock Index Current Previous

FTSEuro First 300 1,459.03 1,463.21

FTSE 100 7,268.56 7,278.92

DAX 11,771.81 11,774.44

CAC 40 4,895.82 4,851.83

DOW JONES 20,504.41 20,412.16

S&P 500 2,337.58 2,328.25

NASDAQ 5,782.57 5,763.96

Various Current Previous

EUR/USD 1.0576 1.0595

GBP/USD 1.2467 1.2526

Gold Spot (USD/oz) 1,223.90 1,224.60

Brent Crude(USD/bbl) 55.97 56.85

3-M US Treasury Yield 0.53% 0.52%

10-Y US Treasury Yield 2.47% 2.43%

30-Y US Treasury Yield 3.06% 3.02%

PHILIPPINES

The local equities index ended in negative territory, falling 1.2% for the day as investors took profits ahead of full earnings results. The

Philippine Stock Exchange Index dropped by 87.83 points to close at 7,206.84 points while the All-Shares also went down by 34.28 points (0.78%) at 4,374.58.

The Philippine peso traded sideways with an upward bias, closing at the 49.88 level due to negative sentiment on dollar assets. Investors expect hawkish statements from Yellen (as she talks up the possibility of a March rate hike).

In the local fixed income market, prices of government securities rose (particularly in the long-end) as investors expect a more hawkish stance from the US Fed and the BSP. On average, yields went down 8.99 bps.

Philippine banks will soon be subject to tighter margin requirements covering derivative deals with foreign firms, the Bangko Sentral ng Pilipinas (BSP) announced on Tuesday, in keeping with global standards to cushion market shocks.The BSP through

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Memorandum M-2017-004 reminded local lenders that they will soon be covered by variation margin standards for futures contracts by March 1, in keeping with timelines set by global regulators Basel Committee on Banking Supervision and the International Organization of

Securities Commission. “The margin requirements are intended to prevent contagion and spillover effects as margins can be used to offset losses arising from a counterparty default,” read the issuance signed on Feb. 8. Derivatives are contracts signed by parties to acquire an asset at a predetermined future date and price. Banks holding future deals are required to put up margins should one of the parties decide

to call off the deal and absorb the losses of the other and prevent a possible funding crunch. In 2013, the Basel committee drafted the first set of guidelines covering non-centrally cleared derivatives, which are deemed more risky as it does not pass through a central counterparty. This was updated two years later. The guidelines seek to ensure that collateral is available to “offset losses caused by the

default of a derivatives counterparty,” according to the Bank of International Settlements (BIS). “Greater reliance on margin will help market participants to better internalize the cost of their risk-taking, because they will have to post collateral when they enter into a derivatives contract,” read the BIS manual released in March 2015. “It will also promote resilient markets in times of stress, when a market participant

who has not received margin could be under pressure to withdraw from trading to preserve its capital.” The BSP reminded banks and quasi-banks that all covered entities with non-centrally cleared derivatives to “exchange” initial and variation margins and present “highly liquid” collateral assets at a time of increasing losses or during periods of financial stress. Variation margin, which protects parties from

current exposure incurred from changes from mark-to-market values following the signing of a contract, is slated to go live by March 1. Meanwhile, the initial margin standards -- which will cover potential losses in the future -- will be in place on Sept. 1, 2020. “Philippine banks and quasi-banks (QBs) are advised to assess the potential impact of the margin requirements and their readiness to comply with the

same in relation to their cross-border derivatives transactions,” the BSP said, while requiring financial firms to put up its own policies to ensure that the margin standards are met. The rules on derivatives form part of an array of preventive measures under the Bas el 3 framework, which was crafted by international policy makers to prevent a repeat of the 2008 Global Financial Crisis.

The shift to the one-day clearing for bank checks has seen a smooth start so far, a ranking central bank official said, with most

big lenders able to comply with the new standards set by regulators. The check image clearing system (CICS) went live on Jan. 20,

which targets to trim check processing time to a day from the current span of three to five banking days. The process requires banks to accept digital images of checks for bank credit, against the old practice of delivering the physical checks from one branch to another before any fund transfers are made. As of Feb. 7, 63 banks were deemed compliant with the new standards for digital check clearing according to

a list published on the Philippine Clearing House Corp. (PCHC) Web site, a private firm tapped by lenders in processing all check issuances in the country. There are 613 banks operating in the Philippines as of end-September 2016, according to data from the Bangko Sentral ng Pilipinas (BSP). Of these, 41 are universal and commercial banks, 64 are thrift banks, and 508 are rural banks. BSP Deputy

Governor Nestor A. Espenilla, Jr. told reporters that the transition to a digital clearing system for checks has gone well, although some players are yet to meet the standards for the electronic scheme. “Not all banks were able to immediately [comply]. It’s not the one-day clearing per se, but the requirement of the CICS,” Mr. Espenilla told reporters in an ambush interview last week. “At the same time, usually

customers as well as branches were not used to it. It’s actually a very big change but it has gone relatively smooth, I would say,” the BSP official said. For the new system, banks must upgrade their systems and issue new checks to its clients, in keeping with the guidelines set by both BSP and the PCHC. The new check designs will be bigger at 8 inches by 3 inches, and would carry “embedded” security features

through both visible and invisible markings on the papers. PCHC President and Chief Executive Officer Emmanuel E. Barcena earlier said that post-dated checks of the old design would still be valid despite the migration to electronic clearing, but added that clients shou ld coordinate with their banks to see if there is a need to update such checks. The one-day clearing is seen to provide faster access to funds

across consumers and businesses. Eventually, the goal is to have a same-day clearing, PCHC officials have said. Banks process around 700,000 checks daily, Mr. Barcena said, and could hit 1.4 million on a peak day -- usually after a long weekend.

The Finance department expects headline inflation to increase in the near term but the indicator will remain within the

government’s targeted range, amid rising energy prices after oil-exporting countries cut production. “Inflation will likely clock above 2.0% in the coming months as suggested by [January] core inflation of 2.5%. Rising energy prices will contribute to higher in flation,” Department of Finance (DoF) Undersecretary and Chief Economist Gil S. Beltran said in a recent report to Finance Secretary Carlos G.

Dominguez III. The projected rise is within the Bankgo Sentral ng Pilipinas’ target band of 2-4% headline inflation. Core inflation, which strips out volatile items such as food and energy, remained at 2.5% in January compared with the previous month, but grew 0.7% from a year earlier, according to the Philippine Statistics Authority. Headline inflation meanwhile grew to 2.7% last month -- the fastest pace in two

years -- increasing by 1.4% year on year, and from December’s 2.6% on the back of higher food prices. January was the fifth straight month of inflation surpassing 2%, beginning with the 2.3% recorded in September. Moreover, Mr. Beltran noted that the uptick in energy prices is primarily due to the decision of the Organization of the Petroleum Exporting Countries (OPEC) to cut oil output in December. The

World Bank expects oil prices to hit $55 per barrel this year, from $42.8 in 2016. That estimate is at the high end of the mu lti-agency Development Budget Coordinating Committee consensus of $40-55 per barrel. Assuming prices fall within government’s programmed range, Mr. Beltran said macroeconomic fundamentals will remain intact. “This will provide economic authorities flexibility to maintain rapid growth despite uncertainties in the world economy,” said Mr. Beltran. According to the DoF’s economic bulletin, the average price of

gasoline hit P46.6 per liter last month from P44.8 in December. Diesel on the other hand rose to P30.8 in January from P29.1 a month earlier. Manila Electric Co. (Meralco) -- the largest energy distributor in the country -- said however that the electricity cost per kilowatt hour (kWh) for an average monthly consumption of 300 kWh slid to P8.4 last month from P8.7 in December. Its generation charge per kWh in

January meanwhile dipped to P3.7 from P3.9.

Finance Secretary Carlos Dominguez said an excise tax on vehicles won't make all automobiles beyond affordable. “Most expensive cars will be charged higher excise rates to ensure progressively. When taken as part of the package, most cars will still be

affordable,” Dominguez told the House Ways and Means Committee. The excise taxes on automobiles is contained in Article VI of both House Bill 4774 authored by Rep. Dakila Carlo Cua (Lone District, Quirino), committee chairman, and HB 4688 by committee vice chairman Rep. Joey S. Salceda (2nd District, Albay). Both bills are titled “Tax Reform for Acceleration and Inclusion” or TRA IN. Chapter VI

Section 149 of both bills titled “Excise Tax on Miscellaneous Articles” provides "there shall be levied, assessed and collected an ad valorem tax on automobiles based on the manufacturer’s or importer’s selling price, net of excise and value-added tax." Under Cua’s HB 4774, the excise tax for automobiles shall be raised to 4 percent from the present 2 percent if the net manufacturer’s price/importer’s selling price is

up to P600,000. If the price is P600,00 to P1.1 million, the tax rate shall be P24,000 plus 40 percent of value in excess of P1.1 million. The present tax rate is P12,000 plus 20 percent of value in excess of P1.1 million. If the price is over P1.1 million to P2.1 mil lion, the tax rate shall be P224,000 plus 100 percent of value in excess of P1.1 million. The present tax rate is P112,000 plus 40 percent of value in excess

of P1.1 million. If the price is P2.1 million, the tax rate shall be P1.224 million plus 200 percent of value in excess of P2.1 milli on. The present rate is P512,000 plus 60 percent of value in excess of P2.1 million. The bill also deletes the following provisions from the original Section 149: “Provided, That the brackets reflecting the manufacturer's price or importer's selling price, net of excise and value-added

taxes, will be indexed by the Secretary of Finance once every two (2) years if the change in the exchange rate of the Philippine peso against the United States (U.S) dollar is more than ten percent (10%) from the date of effectivity of this Act, in the case of initial adjustment

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and from the last revision date in the case of subsequent adjustments. The manufacturer's price or importer's selling price, net of excise and value-added taxes, shall indexed by the full rate of the peso depreciation or appreciation, as the case may be. Provided, further, that in

case the change in the exchange rate of the Philippine peso against the U.S dollar is at least twenty percent (20%) at anytime within the two-year period referred to above, the Secretary of Finance shall index the brackets reflecting the manufacturer's price or importer's selling price, net of excise and value-added taxes, by the full rate of the peso depreciation or appreciation, as the case may be.” Lastly, the bill

amends the definition of an automobile to mean “Any four or more wheeled motor vehicle regardless of seating capacity, which is propelled by gasoline, diesel, or any other automotive power except purely powered by electricity. Provided, That for purposes of this Act, buses, trucks, cargo vans, jeeps/jeepneys/jeepney substitutes, single cab, chassis, and special-purpose vehicles shall not be considered as

automobiles.” Meanwhile, under Salceda’s HB 4866, the excise tax for automobiles shall be raised to 5 percent from the present 2 percent if the net manufacturer’s price/importer’s selling price is up to P600,000. If the price is P600,000 to P1.1 million, the tax rate shall be 20 percent of net manufacturing/importation price. If the price is more than P1.1 million to P2.1 million, the tax rate shall be 40 percent of net

manufacturing/importation price. Lastly, if the price is P2.1 million, the tax rate shall be 60 percent of net manufacturing/importation price. Dominguez also sought to allay fears that the proposed excise on oil products and widening of the coverage of the VAT will be regressive. “The top 200,000 households, comprising 1% of the population, consume 13% of oil products. The top 10% or 2 million

households, account for 51% of oil consumption. The rich will bear the brunt of increased excise for oil products,” he explained. Dominguez said their comprehensive tax reform plan intends to address the three flaws in the tax policy that cause the tax effort to fa ll below the regional norm: non-indexation to inflation, notably the excise on oil products, which erode the value of taxes over time; a large number off

exemptions and entitlements in both fiscal incentives and the VAT system that basically exempt 50% of the economy and bank secrecy

rules that prevent the BIR and the BOC from conducting proper audits. The tax reform package also includes the reduction of personal income taxes.

Robust economic activity will sustain double-digit loan growth among Philippine banks this year, BMI Research said, with little

credit risk seen among lenders given their healthy financial positions. Local lenders are expected to benefit from a continued above-six percent economic expansion, which in turn will fuel increased borrowing. “Strong economic growth momentum in the Philippines is closely linked with banking assets and loan expansion, as there is a positive feedback loop at play,” the Fitch unit said in its latest Asia

Monitor report. “This will help to power strong credit uptake as household and businesses in particular assume leverage against a backdrop of profitable opportunities. Accordingly, we now forecast loan growth to come in at 17.0% in 2017, revised up from 15.0% previously, and similar to our estimate of 18.0% in 2016.” Gross domestic product (GDP) expanded by 6.8% in 2016, close to the high end of the government’s 6-7% goal and cementing its place among Asia’s fastest-growing economies. This year, economic managers target 6.5-7.5%

expansion on the back of an infrastructure push coupled with rising investments and continued strong consumer spending. BMI Research forecasts economic expansion at 6.3% this year and credit growth to clock 17%, steady from 2016’s 17.2% increase. About 89.3% of total loans were used for production in 2016, with the biggest increases seen among the sectors of information and communication and real

estate, according to central bank data. Despite rising loan amounts, BMI analysts expect banks to remain stable in the year ahead. “We believe NPLs (non-performing loans) are likely to remain low as we expect corporate earnings to correlate positively with strong economic growth, which should in turn help reduce credit risk,” the report read. “The banking sector’s loan-to-deposit ratio is also among the lowest in

Asia, suggesting Philippines banks have financed loans largely by using deposits rather than through international wholesale funding,” the report read. Soured loans across the Philippine banking system dropped to 1.9% of total loans in 2016, improving from a 2.09% share from a year ago even as total loans grew 16.6% to P7.612 trillion. Philippine banks are also armed with more than enough capital buffers to

“weather market volatility” and withstand market shocks, BMI added. Banks set aside 15.59% of their portfolio as capital buffers as of September last year, well above the cent‘ral bank’s 10% requirement and the international eight percent standard. BMI expects smaller lenders to be swallowed up by big players ahead of regional banking integration, which will bring increased competition to the financial

system.

Environment Secretary Gina Lopez said Tuesday she served notice to operators of dozens of mines, asking them to explain why

their permits should not be canceled for operating in watersheds. The “show cause” orders were given to 37 mines in Mindanao, 27 in Luzon and 11 in the Visayas, Lopez told reporters. Lopez on Feb. 3 recommended the closure of 23 mines, 15 of which are in watersheds,

and the suspension of 5 others following an industry-wide audit of compliance with environment laws. Lopez said her move was a “gift of love on Valentine’s Day to the Filipino public.” “Water is life, and by saying, by today, doing show cause to all mining companies that were granted MPSA, there should be no mining in watershed areas,” she said. An MPSA or Mining Production Sharing Agreement sets

conditions for mineral extraction in specific areas. Lopez made a case against the proposed Tampakan copper and gold mine in South Cotabato, which has the potential to be the single biggest foreign direct investment in the country. The project will damage a land area as large as 700 football fields and will generate only 2,000 jobs despite its $5.8-billion price tag, she said. Last week, Lopez and Finance

Secretary Carlos Dominguez agreed to a multi-stakeholder review of the industry after mining companies accused her of not observing due

process. The two cabinet ministers co-chair the Mineral Industry Coordinating Council (MICC), an oversight body. “I have rocked the boat,”

Lopez said, adding she had the authority under the law to close down or suspend mines. Lopez said it would be “almost impossible” to restore an area to its original state after mining. “You kill the watershed, you kill life. You kill the river, you kill agriculture, you kill the drinking water,” she said.

Revenue of PLDT Inc. from its home and enterprise businesses may reach P70 billion this year amid growing demand for digital

offerings and solutions by households and firms. PLDT chief revenue officer Eric Alberto told reporters during the launch of the new

VITRO data center in Davao yesterday the telco is “targeting double-digit growth...for the home and enterprise business.” He said the double-digit growth in revenue from the two business segments would translate to an increase of about P7 to P10 billion from the over P60 billion in revenue generated last year, with the home and enterprise segments contributing more than P30 billion each. The two business

segments are expected to continue to drive the revenue growth of PLDT this year as well as in the coming years, amid increasing use of digital content by households as well as of solutions by firms. “The drivers for the growth in 2017 and even perhaps the next couple of years would be the enterprise and the home considering the wireless business has suffered to a large extent from massive competition and

price erosion, not only on the mainstream talk and text, but it actually spilled over to the data bundle pricing,” Alberto said. To promote growth in the home business segment, PLDT is encouraging consumers to consume more digital content offerings. On the enterprise segment, PLDT continues to offer digital solutions relevant to the needs of businesses. The launch of the new VITRO data cent er in Davao

supports the aim of PLDT to grow its enterprise business. VITRO Davao is PLDT’s first data facility in Mindanao, which is intended to cater to the data needs of businesses in the area. In particular, the facility is designed to meet global data center standards by hosting data, as well as providing collocation and business continuity services for enterprises in Mindanao. It could also serve as a secondary backup

location for businesses with data already housed in other data centers across the country. With the opening of VITRO Davao, PLDT now has a total of eight data centers in the country with total rack capacity of almost 7,000. Alberto said PLDT expects to open the VITRO Clark data center on Friday, as well as the VITRO Cebu facility within the year, to bring the group’s total number of data facilities to 10 with a

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capa-city of over 9,000 racks this year. Aside from the new data center, PLDT also completed the Davao cable landing station project that links Mindanao to the telco’s three existing international gateways located in Nasugbu, Batangas; Bauang, La Union, and Daet, Camarines

Norte, to further improve the network resiliency in Mindanao through PLDT’s international managed network which provides bandwidth global connectivity with automatic re-routing and switching capability through different international cable routes in the event of cable faults. PLDT has also opened the upgraded Innovations Laboratory housed in PLDT Davao, which serves as the venue to learn about new

products and digital services for enterprises, as well as to collaborate with the local information and communications technology community and educational institutions to promote technopreneurship. “As part of our commitment to help the government achieve broad -based, nationwide growth, we are working to strengthen and nurture that digital hub in the southern Philippines to further enable businesses and

serve the need for a stronger and more robust digital infrastructure,” Alberto said.

Fast-food giant Jollibee Foods Corp. grew its attributable net profit last year by 24.6 percent to P6.14 billion, driven by a double-

digit growth in system-wide sales. For the fourth quarter alone, attributable net profit surged by 63.7 percent year-on-year to P1.75 billion, Jollibee reported to the Philippine Stock Exchange on Tuesday. System-wide sales rose by 14.1 percent for the full year to P149.14 billion. Sales likewise expanded by 14.1 percent year-on-year to P41.38 billion for the fourth quarter. The fourth quarter growth was driven

by a 7-percent global store expansion and same-store sales growth of 7 percent. Same store sales refer to sales from restaurants already open for at least 15 months, excluding new store openings for better comparison. “In 2016, we opened the most number of new s tores in JFC’s history. This was made possible by improving the return on investments on our stores and by increasing our organization’s capability

to build and open more stores in better locations and with better quality than ever before — on a worldwide basis,” said Jollibee chief executive officer Ernesto Tanmantiong. “We also renovated 200 existing stores in the Philippines and 150 stores abroad,” he said. Tanmantiong added that Jollibee had earmarked P14 billion in capital expenditures this year, mainly for new store expansion and

renovation (P7.6 billion) alongside commissary investments (P5.6 billion). “We look forward to continued strong profitable growth in the years ahead in the Philippines and abroad,” Tanmantiong said. As of last yearend, Jollibee had 3,254 stores worldwide, of which 2,643 were in the Philippines. The group opened 340 stores last year, marking the largest footprint expansion in a single year. For the fourth

quarter alone, sales in the Philippines grew by 14 percent while foreign business likewise expanded by 14.5 percent, with China growing by 6 percent, US by 19.4 percent and Southeast Asia/Middle East by 33 percent. The foreign business grew at the fastest quarterl y pace in the company’s history, driven by the recovery in China, particularly the Yonghe King noodle house chain which is its flagship business in

this market.

Property developers continue to bet big on the office market in this period of uncertainty, as United States President Donald J.

Trump brings to life his anti-outsourcing talk. A total of 1.3 million square meters (sq.m.) of office space will be completed this year, 460,000 sq.m. of which has been taken up to date, Leechiu Property Consultants (LPC) Chief Executive Officer David T. Leechiu said in a recent interview. Demand from BPO companies is expected to push take-up of new supply to as much as 750,000 sq.m., topping last

year’s record of 630,000 sq.m. “That’s a very powerful indicator,” Mr. Leechiu said. So far, existing locators have been “act ive” in taking up new supply, while a slowdown in demand has been observed from the “new guys,” said Carlos S. Rufino, president of The Net Group, the big-gest office developer in the Bonifacio Global City. “For existing locators, I don’t think it will be a problem. For new entrants, we’ve had

longer due diligence. Our staff are now getting questions for particular companies who still went on to establish themselves despite [Philippine President Rodrigo R. Duterte’s] rhetoric and [Mr.] Trump’s pronouncements. Some clients are asking questions that weren’t asked previously to understand the current market,” said Randwil Dinbo U. Macaranas, senior research manager at Colliers International

Philippines. Capitalizing on the robust demand from BPOs, real estate firms have turned to office projects for growth, as they build their recurring income stream to cushion the impact of any slowdown in residential sales. The BPO sector and remittances from overseas Filipinos have helped boost consumer spending, which accounts for two-thirds of Philippine economic output. With the US’ move towards

greater protectionism still taking shape, it may be “too early” to gauge its impact on the local office market since majority of the current pipeline is being constructed on the back of projected demand. “The decision tree is normally disrupted around the planning stages or the market feasibility phase. Majority of these developments were decided to be built some one or two years prior to actual construction.

Hence, we can likely see the effects, if there are any, on the development launches by 2018, at the earliest,” said Claro dG. Cordero, Jr., head of Jones Lang Lasalle (JLL) Philippines’ research, consulting and valuation advisory services. So far, the listed proper ty firms are putting on a brave face amid uncertainty. “We are not changing our plans. So far, we haven’t gotten any firm indication to do otherwise,”

Filinvest Land, Inc. Treasurer and Deputy Chief Financial Officer Ana Venus A. Mejia said. Gotianun-owned Filinvest Land, which is tripling its recurring income base by 2019, plans to launch two projects this year with a combined gross leasable area (GLA) of 67,000 sq.m. before accelerating this to 128,000 square meters across six buildings in the following year. Likewise, property giant Ayala Land, Inc. is

keeping its targeting to double its office footprint to 1.5 million sq.m. by 2020, as BPO demand continues to be “bullish,” said Carol T. Mills, head of Ayala Land Offices. “We have US-based clients who are continuing with their expansion and negotiations are still on the table. These are a combination of mostly existing and new locators in the country,” said Catherine Nicole C. Cancio, investor relations officer at

Robinsons Land Corp. The real estate industry is banking on the attractiveness of the Philippines as an outsourcing hub for i ts relatively optimistic outlook on the office market, offering cost savings of as much as 50% compared to if they were to operate in the United States, said Michael McCullough, managing director at KMC Savills. “Investors choose the Philippines because of the government’s full support for

the IT/BPO sector and the Filipino’s compatibility with the western culture and fluency in English, excellent work ethics, people skills and low cost of labor. None of these factors has been in any way negatively impacted by the election of President Trump,” said Jan D. Custodio, senior director for research and consultancy at Santos Knight Frank. New office launches will peak this year before easing to

880,000 sq.m. next year, 290,000 sq.m. in 2019 and 180,000 sq.m. in 2020, Mr. Custodio said. Construction delays have bloated Metro Manila’s pipeline in 2017 and 2018, but KMC Savills’ Mr. McCullough said it is not discounting the possibility that completions will be moved to later quarters, translating to a softer decline until 2021. “[We have] completed plans for the [new] building, but [we have] not pushed the

button to start,” The Net Group’s Mr. Rufino said. Should Mr. Trump’s protectionist policy have any effect on BPOs, the offic e market has started looking beyond the outsourcing sector for growth. Online gaming companies from China gobbled up office space to the tune of as much as 100,000 sq.m. last year, mostly in the Bay Area. “I don’t know if it’s a result of the new ‘best-friends-forever’ status of the

Philippines and China, but it will show you how quickly Chinese companies took up space in the market. I expect Chinese and Japanese to be the renewed driver for investments for the Philippines,” LCP’s Mr. Leechiu said. The Philippines is adopting an independen t foreign policy under Mr. Duterte, whose recent trips to China and Japan last year yielded billions in investments pledges. Likewise, technology

giant Google, Inc.’s decision to open a full-scale headquarters here will put a stamp of credibility on the Philippines as an emerging player in the tech space. “They have validated the quality and supply of labor in the Philippines. They put the county on the map in the tech industry and this means more tech companies will come to the Philippines,” Mr. Leechiu said. The country’s strong growth momentum will

continue to make heads turn in the global arena, fueling demand for more headquarter-type developments from foreign investors setting up shop here and local companies pursuing aggressive expansion. “We are confident that the office market will remain a strong as ever, regardless of any change in US policy,” Santos Knight Frank Chairman Rick M. Santos said.

A 600-megawatt solar panel factory is set to start its operations in Santo Tomas, Batangas, marking the first time that solar panels

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will be produced by a Philippine-owned company. Solar Philippines said the factory will generate about 1,000 jobs and use high-end German equipment and high-efficiency Taiwanese cells. In a statement, Solar Philippines President Leandro Leviste said the country

can save P50 billion to P100 billion yearly once it can be demonstrated that solar with batteries can provide reliable power 24/7. “Vertical integration is the key to making solar cost-competitive, as in other countries, where solar is already cheaper than coal and especially natural gas,” Leviste said. “We encourage other power companies to join this transition into a solar-powered future, which represents a

historic opportunity for the Philippine power industry to remake our generation infrastructure and accelerate the advent of sustainable energy worldwide,” he added. Solar Philippines said it will announce a partnership with a leading global solar manufacturer in time to support the company’s 2017 projects, including a 50-MW panel in Batangas and Cavite, which will supply Meralco under a recently signed

agreement, and a 150-MW panel in Tarlac, the country’s first battery-equipped solar farm to supply power at rates lower than fossil fuel.

Maynilad Water Services is investing P4 billion this year in its nonrevenue program to further cut down losses due to leaks,

illegal taps and faulty metering. Of the amount, P2.7 billion is allotted for pipe replacements in Quezon City, Navotas, Valenzuela, Pasay, Parañaque, Las Piñas and Cavite. Also, about P200 million will be spent on leak repair projects while the remainder will go t o the replacement of old water meters, network diagnostics and leak detection, among others. “Through massive investments in water loss

recovery, we have managed to attain an NRW reduction of 36 percentage points in a span of only nine years,” Maynilad presiden t and chief executive Ramoncito S. Fernandez said in a statement. “We will continue on this track so that more water supply can be plowed back into the network for delivery to more customers,” Fernandez added. In 2007, when the company was under a different management , NRW

represented 66 percent of Maynilad’s production. After nine years with the current management, NRW was cut down to 30 percent. Maynilad data show that it has recovered 923 million liters per day (MLD) of water since 2008 when the NRW reduction program was first launched. The company said the recovered volume was enough to fill up roughly 370 Olympic-size pools every day, and supply about 1.5

million households with potable water.

Mighty Corp., the Bulacan-based cigarette company owned and operated by Filipino-Chinese businessmen Ceasar and Alex

Wongchuking, is considering embarking on an initial public offering (IPO). “Going public, that’s one of the options we’re considering but there’s no decision on that yet,” Mighty spokesperson Oscar Barrientos told The STAR. Aside from a possible IPO, Mighty is also open to partnering with British American Tobacco through contracting in case one of them needs additional capacity. From an obscure little-

known player with a two-percent share before 2012, Mighty has grown its market share 15 times over the last four years. “We now have a 30 percent share,” Barrientos said. The local cigarette industry rakes in an estimated P150 billion a year. According to its latest filing with the Securities and Exchange Commission, Mighty posted a profit of P153.4 million in 2014, up from P104.1 million in 2013. Sales likewise

increased to P11.8 billion from P11.08 billion. Sought for comment, A&A Securities analyst Justino Calaycay said Mighty has to have a good narrative to be able to convince the market. “It has to be a very convincingly strong fundamental story. People won’t invest in vice products. They also have to go over the smuggling issues,” Calaycay said. Mighty is being investigated by the Bureau of Internal Revenue

for illicit cigarette trade. The STAR earlier reported that the Bureau of Customs (BOC) was set to suspend Mighty’s import accreditation due to import violations. The BOC, under the time of Customs commissioner John Sevilla, recommended the suspension of Mighty‘s import accreditation because of misdeclaration. Sevilla, however, resigned before the BOC could act on it. BOC data showed that from 2011 to

2013, Mighty used its customs bonded warehouse – supposedly for manufacturing and exportation of finished goods - largely for domestic use. Data also showed that Mighty declared prices of their imports of acetate tow – a raw material used for cigarettes – at $0.36 per kilogram, below the actual price of their suppliers of $5 to $6 per kg.

GMA Network Inc. expects to commercially roll out its digital terrestrial service by the third or fourth quarter of the year, in line with

the government-led shift from analog to Digital Terrestrial Television Broadcasting (DTTB) service. “Siguro mga third or fourth quarter,”

GMA Executive Vice President and Chief Financial Officer Felipe S. Yalong told reporters on the sidelines of the Digital TV Summit 2017 in Quezon City. The company’s DTTB service was announced in May 2016. In October, GMA unveiled a digital receiver prototype capable of transforming screens into smart TVs. The company has allotted an initial spending budget of P416 million to the project. “That amount is

mainly for the transmission ... We don’t have any specific plan yet. What’s definite is that we will be able to come up with our DTT signal hopefully within the year,” Yalong said. With the shift to digital television service, Yalong said the company is considering putting up more channels. “With DTT tech, it may be an option that we have to consider. That’s being studied very well right now. Probably later on we wi ll

be announcing something. The plan is to come up with more channels we can operate under the DTT shift,” he said. The government on Tuesday said it wants to phase out analog television by 2023, to fully migrate the industry to DTTB in the next six years.

Private school chain operator STI Holdings’ net profit in the nine-month period ending December 2016 grew by 18.3 percent year-on-year to P624.3 billion as higher enrolment rate boosted revenues to a record high. Defying the lackluster market, STI shares rose by 9.91 percent to close at P1.22 per share on Tuesday. It was among the most actively traded company at the stock market. STI posted

record-high P2.1 billion in revenues for the nine-month period, up by 15 percent from the same period last year. The higher revenues were attributed to the big increase in enrolment for school-year 2016-2017, breaching the 100,000-mark. Student population expanded by 22 percent to 103,727 for the school-year.

ASIA-PACIFIC

Japanese stocks fell more than 1 percent on Tuesday, with investor sentiment soured after Toshiba Corp delayed its earnings release, including details of a multibillion dollar charge related to cost overruns at its U.S. nuclear arm. The mood was also hurt by the dollar's

weakening after President Donald Trump's national security adviser Michael Flynn quit. The Nikkei share average dropped 1.1 percent to 19,238.98 points. Toshiba's stock nosedived 8 percent after it announced during the midday market recess that it would delay its earnings release, which was originally scheduled for 0300 GMT. "The delay shows that the company is in a mess," said Makoto Kikuchi,

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chief executive of Myojo Asset Management. "We can assume that the company is not delaying its earnings release for good news. The market speculates that Toshiba will be releasing figures worse than what is being reported already." The broader Topix dropped 1.0

percent to 1,539.12 and the JPX-Nikkei Index 400 fell 1.1 percent to 13,794.36. China's main stock indexes were largely unchanged on Tuesday, after data showed the country's inflation picked up to multi-year

highs and reinforced a shift by Beijing to a tighter policy stance. The blue-chip CSI300 index was unchanged at 3,435.80 points, while the Shanghai Composite Index was also flat at 3,217.93 points. China's consumer inflation rate in January grew the most since May 2014 compared with the previous year, and its producer price index rose the fastest since August 2011, both beating market expectations and

adding to signs of economic recovery. While higher inflationary impulse would reinforce a recent shift by authorities a to tighter policy stance, which is unfavourable for equities, any signs that demand-led inflation might peak also presents hurdles to riskier assets because of the negative implications for wider growth. Major insurance stocks slid, with China Life shedding 1 percent, as insurance sector's

premium income growth is expected to slow in 2017 on tighter regulations. Most sectors edged lower, while gains were led by material shares. An index tracking major non-ferrous metals producers rose 1 percent to close at a 2-month high. The index was up for the 7th straight session.

Hong Kong stocks ended little changed on Tuesday as growing profit-taking after a two-month rally offset sustained inflows from

mainland Chinese investors. Both the benchmark Hang Seng index and the Hong Kong China Enterprises Index closed a sliver

lower at 23,703.01 points and 10,254.44 points, respectively. The Hang Seng has risen about 8 percent so far this year, riding a wave of optimism that global economic growth is improving. The market has also been supported by rising southbound inflows through the Shanghai-Hong Kong Stock Connect scheme as mainland Chinese investors seek higher returns and a hedge against expectations of

further depreciation in the yuan currency. Most sectors retreated on Tuesday, but an index tracking services stocks gained 2.7 percent. Investors were also awaiting comments by U.S. Federal Reserve Chair Janet Yellen later in the day for clues on the chance of an interest rate hike in March, which markets now see as slight. Higher borrowing costs would weigh on rate-sensitive property shares but benefit the

financial sector . Both sectors made modest gains on Tuesday. Oil rose on Tuesday, supported by an OPEC-led effort to cut output, but rising production elsewhere kept prices within the

narrow range that has contained them so far this year. Brent crude futures, the international benchmark for oil prices, were trading at $55.76 per barrel at 0112 GMT, up 17 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures, were up 14 cents at $53.07 per barrel. The gains followed 2-percent falls in the previous session. Both oil benchmarks have remained within a $5 per barrel

trading range since the beginning of the year. The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017 in a bid to rein in a global fuel supply overhang. But undermining these efforts has been rising production in the United States, where increased drilling activity

especially by shale oil producers has lifted overall output to 8.98 million bpd, up 6.5 percent since mid-2016 and to its highest level since April last year. Despite an OPEC compliance rate of around 90 percent with the announced cuts, scepticism remained over the end result. Traders also pointed out that even at an OPEC compliance of 90 percent, and a much lower rate for non-OPEC members, producers would

have to accelerate their cuts in the coming months in order to achieve the average daily reduction target agreed for the firs t half of the year. ABN Amro said it had reduced its average Brent oil price forecast for the first half of 2017 "from $55 per barrel to $50 per barrel, while allowing for a possible temporary dip towards $45 per barrel".

Bank of Japan Governor Haruhiko Kuroda said on Tuesday the central bank will not change its bond yield targets just because

global long-term interest rates are rising. "Our monetary policy is conducted solely for the purpose of pulling Japan's economy out of

deflation and achieving our 2 percent inflation at the earliest date possible," Kuroda told parliament. Under a new policy framework adopted in September, the BOJ now guides short-term interest rates at minus 0.1 percent and the 10-year government bond yield around zero percent.

China's consumer inflation rate quickened to 2.5 percent in January from a year earlier, the highest since May 2014 and beating

market expectations. Analysts polled by Reuters had predicted the consumer price index (CPI) would rise 2.4 percent, the biggest gain in

nearly three years, versus a 2.1 percent gain in December. The producer price inflation rate accelerated to 6.9 percent, the National Bureau of Statistics said on Tuesday, compared with the previous month's rise of 5.5 percent. The producer price index (PPI) rose the fastest since August 2011. The market had expected producer prices to rise 6.3 percent on an annual basis. Inflation expectations have

been rising in most major developed economies, except Japan, since mid-2016 in line with a global recovery in manufacturing, which has boosted prices of crude oil and other resources such as iron ore. That has sparked talk of tighter monetary policy, though consumer inflation in China is believed to be still well within the central bank's comfort zone.

REST OF THE WORLD

European shares steadied on Tuesday, as gains in the auto sector on news that PSA Group is in talks to buy General Motors' European auto operations and stronger banking stocks offset weaker consumer and pharma stocks. The pan-European STOXX 600 index ended flat

at 370.2 points, staying near 13-month highs hit in the previous session when the index rose for its fifth session in a row. Banks were also strong, up 1 percent to a one-week high as the sector was supported after Federal Reserve chair Janet Yellen struck a hawkish tone on the timing of an interest rate hike. The sector was also helped by a 2.3 percent rise in Credit Suisse as investors cheered to a better-than-

expected capital ratio at the Swiss bank. Major U.S. stock indexes established record highs on Tuesday, led by bank stocks after Federal Reserve Chair Janet Yellen said

it would be unwise to wait too long to raise interest rates. Apple racked up a record high close for the second straight session,

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contributing to gains in the S&P 500, Dow Jones Industrial Average and Nasdaq Composite indexes. Yellen said delaying rate hikes could force the U.S. central bank to tighten monetary policy quicker down the line, which could risk a recession. She also expressed uncertainty

over economic policy under the Trump administration. Banks, expected to gain from higher interest rates, led the market higher. President Donald Trump's pro-business stance sparked a record-setting rally in stocks following his November election. However, he has given scant detail on his policies, leaving the Fed with limited visibility about the economy's future direction. Speaking to the U.S. Senate Banking

Committee, Yellen did not indicate whether the Fed still planned to raise rates three times this year, nor did she indicate whether a hike might come in March or in June, as most analysts expect. The Dow Jones Industrial Average climbed 0.45 percent to end at 20,504.41 points, while the S&P 500 gained 0.40 percent to 2,337.58. The Nasdaq Composite added 0.32 percent to 5,782.57. Advancing

issues outnumbered declining ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.31-to-1 ratio favored advancers. About 6.7 billion shares changed hands on U.S. exchanges, in line with its daily average over the last 20 sessions.

The German economy grew by 0.4 percent in the final quarter of 2016, data showed on Tuesday, as increased state spending, higher private consumption and construction in Europe's biggest economy more than offset a drag from foreign trade. The growth figure for the final three months of 2016 came in slightly weaker than the consensus forecast in a Reuters poll of 0.5 percent. Still, it marked

a sharp rebound after the German economy barely expanded over the summer months. The overall growth rate for 2016 was confirmed at 1.9 percent, which was the strongest rate in half a decade. The quarterly GDP growth rate for the third quarter was revised down to 0.1 percent from 0.2 percent and the rate for the second quarter was revised up to 0.5 percent from 0.4 percent, the data showed. The so-

called statistical overhang from the fourth quarter was confirmed at 0.5 percent. This means that the German economy started 2017 on an economically strong footing. On the year, the German economy grew by 1.2 percent unadjusted in the fourth quarter and by 1.7 percent adjusted for workdays, the data showed. Germany's consumption-driven upswing is expected to continue in 2017, although a strong

rebound in inflation means consumers will have less money to spend than in the previous years. For 2017, the German government expects weaker growth of 1.4 percent due to fewer work days and weaker exports.

The Federal Reserve will likely need to raise interest rates at an upcoming meeting, Fed Chair Janet Yellen said on Tuesday, although she flagged considerable uncertainty over economic policy under the Trump administration. Yellen said delaying rate increases could leave the Fed's policymaking committee behind the curve and eventually lead it to hike rates quickly, which she said could

cause a recession. "Waiting too long to remove accommodation would be unwise," Yellen told the U.S. Senate Banking Committee, citing the central bank's expectations the job market will tighten further and that inflation would rise to 2 percent. "At our upcoming meetings, the committee will evaluate whether employment and inflation are continuing to evolve in line with these expectations, in which case a further

adjustment of the federal funds rate would likely be appropriate." Yellen did not say if Fed policymakers expected the economy would warrant three interest rate increases this year, as they last signaled in December. Nor did she give indications whether the first rate hike of the year might come at its next meeting in March or at the June meeting, which is when most analysts expect a rate increase. "I can't tell

you which meeting it would be," she said, including specifying "whether it's March or May or June." Since the end of the 2007-09 recession, the Fed has raised rates once in December 2015 and again in December of last year. Yellen added that Fed policymakers would be discussing in the coming months how the central bank will eventually reduce the size of its bond portfolio, which ballooned during the

financial crisis as the Fed sought to keep rates low. She repeated the Fed's guidance that reducing its holdings would begin when the Fed's current cycle of rate hikes is well under way. Yellen was appearing in Congress for the first time since Republicans took control of the White House and both houses of the legislature and she nodded to the uncertainties over the direction of U.S. economic policy. "Changes

in fiscal policy or other economic policies could potentially affect the economic outlook," she said. "It is too early to know what policy changes will be put in place or how their economic effects will unfold." President Donald Trump has announced a rollback of financial regulation with few details and there is no clarity on the size and scope of the tax cuts he has promised, while possible new taxes on

imports and increased infrastructure spending could boost inflation. Inflation has remained persistently below the Fed's 2 percent target for several years and Yellen said it was "reassuring" that market-based measures of inflation compensation had recently risen, though she noted they remain low. Yellen said she did not want to weigh in on specific tax and spending proposals, but she urged policymakers to

consider the importance of making U.S. businesses more efficient, which economists believe is essential to raising living standards over the long term. "I would also hope that fiscal policy changes will be consistent with putting U.S. fiscal accounts on a sustainable trajectory," she said.

President Donald Trump swore in former Goldman Sachs banker and Hollywood financier Steven Mnuchin as Treasury secretary

on Monday, putting him to work on tax reform, financial de-regulation and economic diplomacy efforts. The U.S. Senate voted to

confirm Mnuchin 53-47, with all but one Democrat opposing him over his handling of thousands of foreclosures as head of OneWest Bank after the 2007-2009 housing collapse. At a White House swearing-in ceremony, Trump said Mnuchin would be a "great champion" for U.S. citizens. "He will fight for middle-class tax reductions, financial reforms that open up lending and create millions of new jobs, and fiercely

defend the American tax dollar and your financial security," Trump said. "And he will also defend our manufacturing jobs from those who cheat and steal and rob us blind." Lawmakers, lobbyists and business groups have been nervously waiting for Mnuchin to take office and fill in the many blanks on how he will pursue tax reform and handle delicate economic cooperation efforts with China, Mexico and other

trading partners worried that Trump's "America First" strategy will upend decades-old trade rules and currency practices. Mnuchin, 54, provided no details of his plans as he was sworn in. "I am committed to using the full powers of this office to create more j obs, to combat terrorist activities and financing, and to make America great again," Mnuchin said. Trump has pledged to roll back the stricter financial

regulation under the Dodd-Frank reform law enacted after the financial crisis, pursue tougher trade policies on China and Mexico to reduce U.S. trade deficits, and reduce business tax rates. Mnuchin faces immediate challenges with the March 15 expiration of a U.S. debt ceiling suspension, ushering in the threat of a new default showdown, and a March 17 meeting of finance ministers from the Group of 20 major

economies, where he will face tough questions about Trump's plans to increase trade protections. In April, Mnuchin will have to determine whether to declare China a currency manipulator as part of Treasury's semi-annual currency report. Among Mnuchin's biggest jobs is managing a sprawling congressional tax reform effort that seeks to slash business tax rates and enact a new border tax adjustment system

aimed at boosting U.S. exports. Mnuchin will quickly need to build a core management team to handle such chal lenges. Treasury and White House representatives did not respond to requests for comment on Monday on reports that Trump would soon nominate David Malpass, a former economist at failed Wall Street bank Bear Stearns, as Treasury undersecretary for international affairs, the agency's top

economic diplomacy job. Malpass, a Trump campaign adviser who had been leading Treasury transition efforts, was seen as a leading candidate for the job, with experience from international economic posts in the Ronald Reagan and George H.W. Bush administrations. Other names that have been floated for senior posts include Goldman Sachs banker Jim Donovan for deputy Treasury secretary and Justin

Muzinich, a former Morgan Stanley banker, for undersecretary of domestic finance. Mnuchin, a second-generation Goldman Sachs banker who led the firm's mortgage bond trading but left the bank in 2002, came under fire from Democrats over his investor group's 2009 acquisition of another failed lender, IndyMac Bank, from the Federal Deposit Insurance Corp. The bank, rebranded as OneWest,

subsequently foreclosed on more than 36,000 homeowners, drawing charges from housing advocates that it was a "foreclosure machine." Mnuchin grew OneWest into Southern California's largest lender and sold it for $3.4 billion in 2015. He has also helped finance Hollywood

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blockbusters such as "Avatar," "American Sniper" and this past weekend's box office champion, "The Lego Batman Movie," which took in $55.6 million. The Senate on Monday also unanimously confirmed David Shulkin as secretary of veterans affairs, putting the only holdover

from the Obama administration in charge of the second largest federal agency. Shulkin had been in charge of the VA's sprawling health system for the past 18 months.

BSP Cir. No. 706, AMLA Law, RA 10365 and the AML Risk Rating System – 17 February 2017 Solving Problems in the Workplace: Creative Problem Solving & Decision Making – 23 & 24 February 2017 Excel Training for Bankers – 23 & 24 February 2017 Accounting for Non-Accountants with Analysis of Financial Statements – 03 & 04 March 2017 ISO 22316: Organizational Resilience - Moving from Continuity to Resiliency – 8 March 2017 Seven Basic Quality Tools – 8 March 2017 EQ and Leadership for Bankers – 17 March 2017 Compliance with Operational Risk Management Guidelines – 17 March 2017 Related Party Transactions – 17 March 2017 Signature Verification & Forgery Detection – 18 March 2017 Personal Equity and Retirement Account (PERA) – 24 March 2017 Fraud Risk Management – 25 March 2017 Establishing Internal Controls per BSP Cir. No. 871 – SEMINAR TWO – 25 March 2017 BSP Supervisory Process and CAMELS Rating – 7 April 2017 IT Security and Auditing – 8 April 2017 Training the Bank Trainers – 21 & 22 April 2017 Process Mapping as an Operational Risk Management Tools – 22 April 2017 How to Spot Fake IDs and Money Mules – 29 April 2017 Understanding Bank Regulations for Bank Products – 6 & 13 May 2017 Bank’s Taxation – Advanced – 20 May 2017 Counterfeit Detection – 29 May 2017

For details, please contact BAIPHIL via telephone (853-4457/519-2433) or email training@baiphil.org.

BAIPHIL Market Watch – 15 February 2017

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FEBRUARY 1-15

02 Marilou C. Bartolome - MBTC

06 Pinky S. Derequito - UCPB

07 Wilfredo S. Talastas - Associate Life Member

09 Marivic M. Austria - CARD Bank Inc

11 Mamerto R. Natividad - JP Morgan Chase

13 John Allistair Nicholls - HSBC

14 Gilbert L. Nunag - PS Bank

15 Analiza D. De Lumban - Rizal Bank Inc

SMALL CAP - is a term used to classify companies with a relatively small market capitalization. A company's market capitalization is the market value of its outstanding shares. The definition of small cap can vary among brokerages, but it is generally a company with a market capitalization of

between $300 million and $2 billion.

A rose by any other name might smell as sweet, but would it fetch as high a price-tag? This bloom is

very rare in the modern world and back in 2006 one grower sold his bloom for a staggering $15.8 million (c. £10 million) after harvesting it for as long as 15 years.

REFERENCE COMPILED AND PREPARED BY: RESEARCH AND INFORMATION COMMITTEE FY 2016-2017

BPI Asset Management Business World Philippine Daily Inquirer Philippine Star GMA News ABS-CBN News Bulletin Today PSE

Reuters Bloomberg CNN Wall Street Journal Investopedia Brainy Quotes Goodreads Corsinet- Trivia

Director: Maria Teresita R Dean (ChinaBank Savings) Chair: Sheryll K. San Jose (Equicom Savings Bank) Member: Rachelle A Fajatin (Equicom Savings Bank)

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