Category: Business Mirror

THE cut in interest rates by the central bank failed to cushion the fall in last week’s share prices, seen continued to be weighed down by alleged state officials’ corruption and a weak peso.

The benchmark Philippine Stock Exchange index fell 71.07 points to close at 6,037.79 points.

‘The local market remains bearishly biased as seen on its direction and value turnover. Trading remains tepid, implying weak investor confidence,’ Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said.

The main index was marked by a sharp fall on Monday, followed by gains on Tuesday and Wednesday. However, the index dropped during the rest of the week despite monetary authorities’ decision to cut rates, which surprised many investors and analysts.

‘As of last week’s closing, the local market remains undervalued with a P/E (price to earnings) ratio of 10.1 times. This is below its five-year historical average of 17.3 times and the regional average of 18.6 times. As of the moment, the PSEi still has the lowest PE ratio among peers,’ Tantiangco said.

All other sub-indices ended mixed. The broader All Shares index declined 27.41 points to close at 3,658.44 points, the Financials index fell 61.44 to 2,021.75, the Industrial index gained 20.13 to 9,036.52, the Holding Firms index retreated 117.84 to 4,850.95, the Property index was down 22.18 to 2,272.41, the Services index rose 14.05 to 2,284.31 and the Mining and Oil index soared 1,053.14 to close at 14,312.36.

For the week, gainers edged losers 121 to 112 and 28 shares were unchanged.

The top gainers were PXP Energy Corp., Anglo Philippine Holdings Corp., Atlas Consolidated Mining and Development Corp., Coal Asia Holdings Inc., Liberty Flour Mills Inc., Citystate Savings Bank Inc. and Philex Mining Corp.

The top losers, meanwhile, were Roxas and Co. Inc., F and J Prince Holdings Corp. A, Transpacific Broadband Group Int’l. Inc., Pacifica Holdings Inc., Global Ferronickel Holdings Inc., Lodestar Investment Holdings Corp. and VistaREIT Inc.

This week

SHARE prices are expected to move downward; but some investors may opt to hunt for bargains.

‘Bearish sentiment is expected to linger fueled by concerns over the Philippines’ corruption issues and its impact on our economic growth outlook. Investors are also expected to monitor the movement of the local currency against the US dollar,’ Tantiangco said.

A further depreciation for the peso is expected to drag the local bourse.

In addition, revived global economic worries as the US imposes new tariffs against China are expected to aggravate market pessimism, he said.

Broker 2TradeAsia said there is a shift in regional risk premium.

‘And while the domestic story should still hold overall, near-term alpha at home might remain limited to thematic such as gold mining, income/cash flow like real estate investment trusts and tertiary plays,’ it said.

‘Plays in the near-term are likely bound to selectives to capture defensive yields amid flow rotations, especially while clarity on the Fed’s next move is still translucent,’ it said.

A major resistance for the main index is seen at 6,150 points followed by the 50-day exponential moving average. Currently, the market is testing its 10-day exponential moving average. Major support is seen at 6,000 points, Tantiangco said.

Stock picks

BROKER Regina Capital Development Corp. gave a buy when support holds on the stock of lender BDO Unibank Inc. (PSE: BDO).

‘BDO dropped by 2.57 percent, extending its recent downtrend as it failed to hold above the 50-day MA at 139.56. Price remains below the 100-day and 200-day MAs, reflecting continued bearish market sentiment,’ it said.

‘Unless support around 135.00 holds, further downside movement could develop in the short term,’ the broker said.

BDO shares closed last week at P134.80 apiece.

Meanwhile, the broker advised to buy at pullbacks on the stock of Areit Inc. after its share price surged by 7.49 percent, marking a strong breakout from its recent consolidation phase.

‘The price now trades well above the 50-day, 100-day, and 200-day MAs at 43.59, 42.09 and 40.71, respectively, reinforcing a bullish bias with momentum regaining strength,’ the broker said.

With price breaking key resistance, continuation toward the P46 zone is likely if support at P43.50 holds, it said.

Areit shares closed last Friday at P42.75 apiece.

Global cocoa prices would fall from previous record-highs on the back of a projected rebound in production, an international research firm said.

BMI, a unit of Fitch Solutions, recently revised downward its cocoa price forecast for 2025 to $8,200 per metric ton (MT) from $8,500 per MT due to easing bullish sentiment in the market.

‘Part of this has been driven by technical adjustments from an overbullish market, but the main drivers have been improving expectations regarding supply as well as signs that demand destruction in the face of elevated prices is happening.’

Such a pivot in market sentiment was due to projections that cocoa output in West Africa, a cocoa powerhouse, would replenish global inventories, the research firm said.

‘We forecast that production of cocoa globally in 2024/25 will increase by 8 percent year-on-year, driven mainly by an improvement in harvests in West Africa.’

BMI noted that better weather conditions and improvement in farmgate prices in cocoa-producing countries in the region would help buoy output.

‘In West Africa, we believe that improved weather conditions will be favorable for cocoa production, and we also flag the recent increase in farmgate prices in both Ghana and Côte d’Ivoire as an upside risk for production.’

It added that investments poured into cocoa production outside West Africa due to the spike in prices would also bolster yield.

‘Outside of West Africa, we believe that higher prices over the past few years have driven increased investment in cocoa production in Latin America and Asia,’ BMI said.

‘While cocoa trees require five years between planting and production, and we will therefore see the effects of new trees becoming productive over the medium term, growing investment will boost yields from existing cocoa trees through improved input use and agronomic practices.’

Despite this, BMI noted global consumption would drop by 4.3 percent year-on-year in 2024/25, which would result in a return to a market surplus following three consecutive deficits.

‘The most recent data from cocoa grindings is evidence of the fact that, although this has taken longer than the market had expected, demand destruction in the face of elevated prices is occurring.’

The research firm noted that data from grindings in the second quarter pointed to a 9.4 percent year-on-year decline on a global level.

The largest decrease was recorded in Asia at 16.3 percent due to chocolate being less of a staple in the region compared to Europe and the United States, it added.

‘Elevated prices are driving companies to use alternative ingredients to cocoa beans and cocoa butter or decrease the amount of cocoa in their products.’

BMI also flagged the EU Commission’s intention to delay the implementation of the EU Deforestation Regulation (EUDR) to January 2026.

‘On one hand, this delay is a downside risk for prices as it reduces the possibilities of some cocoa being unable to enter the market due to non-compliance,’ the firm said.

‘On the other hand, we note that chocolate manufacturers such as Barry Callebaut, as well as environmental groups, have voiced concern about this because many have already invested significant resources to comply with the regulation, and this would increase uncertainty in the market.’

MOST Filipinos believe current wages are no longer enough to meet the rising cost of living, with eight in 10 supporting a P200 daily pay hike, according to a new survey conducted by research firm WR Numero.

Findings from its August 2025 Philippine Public Opinion Monitor showed that 83 percent of adult Filipinos favor the proposed across-the-board P200 wage increase bill pending in the 20th Congress.

Only 9 percent oppose the measure, while 8 percent are undecided.

Support was strongest in South Luzon and Metro Manila at 87 percent each, followed by the Visayas at 86 percent, Mindanao at 79 percent, and North-Central Luzon at 77 percent.

Approval was also broad across income groups, with 84 percent each from Classes ABC and D, and 83 percent from Class E expressing support.

Larger households were more likely to back the increase, with 87 percent of those with six or more members agreeing to the proposed hike.

The same survey found that most Filipinos believe the P50 wage increase in Metro Manila last July is not enough to keep up with the rising cost of living.

The Department of Labor and Employment (DOLE) earlier announced the P50 increase for all minimum wage earners in the private sector in the National Capital Region-the biggest single wage adjustment granted by its regional board to date.

According to WR Numero, seven in 10 respondents (73 percent) said the P50 increase is insufficient, while 21 percent believe it was acceptable if implemented nationwide, and 6 percent found it adequate for now.

Disagreement was highest in Metro Manila (88 percent), followed by the Visayas (72 percent), South Luzon (71 percent), North-Central Luzon (70 percent), and Mindanao (70 percent).

In a text message to BusinessMirror, WR Numero said the strong public backing for the P200 wage hike reflects Filipinos’ continued focus on ‘gut issues’-or everyday economic concerns such as food prices, basic needs, and living costs.

‘Even when presented many issues, these ‘gut issues’ affecting daily life really matter to ordinary Filipinos, and it explains why support for raising wages is so strong. This is evident even across all income classes and regions,’ the research firm said.

WR Numero added that this sentiment also explains why raising workers’ wages (39 percent) ranked among Filipinos’ top policy priorities-next only to lowering food and essential prices (42 percent), and ahead of addressing illegal drugs and crime (29 percent).

The survey likewise showed that Filipinos continue to view poverty reduction (29 percent), job creation and livelihood opportunities (28 percent), and corruption (23 percent) as other major issues that require government attention.

The survey was conducted from July 29 to August 6, 2025, among 1,418 adult respondents nationwide, with a margin of error of ±2.6 percent at a 95 percent confidence level.

Several bills seeking a legislated nationwide wage hike are now pending in the 20th Congress, including proposals filed by Senators Bam Aquino and Risa Hontiveros.

In the previous Congress, both chambers pushed separate measures to raise the minimum wage but failed to pass a unified version.

The House of Representatives approved a P200 across-the-board increase in June 2025, while the Senate earlier passed a P100 hike in February 2024.

However, the two chambers failed to convene a bicameral conference committee to reconcile the measures before the 19th Congress adjourned sine die.

THE Supreme Court (SC) has denied the plea of the Duterte Youth Party-List for the issuance of a temporary restraining order (TRO) to enjoin the Commission on Elections (Comelec) from cancelling the group’s accreditation.

In a two page resolution dated September 30, the Court en banc also would not issue a status quo ante order that could have restored its previous status prior to the cancellation of its registration.

The Court also denied its motion for a special raffle, which was supposed to address the urgency of its petition.

However, the SC ordered the respondents Comelec, Reeya Beatrice Magtalas, Abigail Aleli Tan, Raainah Punzalan, and Aunell Ross Angcos to comment on the Duterte Youth’s main petition within 10 days from notice.

The four private respondents were the ones who petitioned the Comelec to stop the Duterte Youth’s proclamation last May and questioned their registration as a party-list group.

The Court’s order stemmed from the party-list group’s petition filed last September seeking to nullify the June 18 resolution issued by the poll body’s Second Division which cancelled its registration and the August 29 resolution of the Comelec en banc which affirmed the division’s resolution.

The Duterte Youth landed second in the party-list race with a total of 2,338,564 in the national and local elections held last May, entitling them to three seats in the House.

In its petition, the group accused the Comelec of committing ‘grave abuse of discretion amounting to lack or excess of jurisdiction’ in upholding the cancellation of their registration.

The party-list group argued that the assailed resolutions barring them from taking a seat in the 20th Congress were ‘contrary to law and jurisprudence’ and effectively disenfranchised more than 2.3 million Filipinos who voted for them in the last elections.

The petition also invoked the doctrine of laches, contending that the challenges raised against the group’s registration were filed too late and should have been barred.

The Comelec has proclaimed Abono, Ang Probinsyano, and Murang Kuryente party-lists to replace the Duterte Youth’s three seats in the House of Representatives.

ENGLAND’S Javier and Joaquin Bello are expected to hit town on Tuesday to again show their elite form in the Volleyball World Beach Pro Tour (BPT) Challenge that kicks off on Wednesday at the Nuvali Sands Court by the Ayala Land in the City of Santa Rosa in Laguna.

The Bello brothers-ranked 19th in the world among the 65 men’s teams in the 25-nation tournament hosted by the Philippine National Volleyball Federation (PNVF)-are seeking both redemption and glory.

‘The Bello brothers are coming,’ PNVF President Ramon ‘Tats’ Suzara said on Monday. ‘Just like the rest of the participants, they are here to provide quality beach volleyball competitions.’

After winning the BPT Elite 16 in Rio de Janeiro last November, the duo would up only with the bronze medal in last December’s BPT Challenge also at Nuvali-they beat Timo Hammarberg and Philipp Wallar of Austria, 2-1.

They missed the gold medal match after they lost to the German pair of Paul Henning and Lui Wust, 0-2, in the semifinals.

The English pair are hoping to change their fortune this time in the five-day competition where 2023 Southeast Asian Games bronze medalists Ran Abdilla and James Buytrago, Ronniel Rosales and Rancel Varga and Edwin Tolentino and Larry John Francisco are competing for the hosts.

World No. 6 Jacob Holting Nilsson and Elmer Andersson of Sweden are also back to defend their men’s crown.

THE top executives of Maynilad Water Services Inc. said the company’s initial public offering will be pushing through in a few weeks’ time after they clinched a deal with cornerstone investors who would take in more than half of the offered shares.

‘It’s going pretty well so far. I think they (cornerstone investors) should get between $500 million and $600 million (worth of shares),’ Maynilad Chairman Manuel V. Pangilinan said at the sidelines of the Finex Annual Conference last Friday.

Pangilinan said those shares may be priced at P15 per share. ‘That’s what we’re aiming for,’ he added.

Maynilad Vice-Chairman Isidro A. Consunji said the IPO seems a go, as he said there doesn’t seem to be any problem with the company going public.

People familiar with the transaction said the cornerstone investors will be taking up more than 50 percent of the offered shares equivalent to about 30 percent of Maynilad’s outstanding shares post-IPO.

The West Zone concessionaire is offering a total of 2.29 billion shares for up to P20 apiece. The deal consists of a primary offer of 1.66 billion new common shares, a preferential offer to First Pacific Co. of 24.9 million new shares; an upsize option of 354.7 million secondary shares of shares owned by existing shareholders and an overallotment option of up to 249.05 million shares.

Fully subscribed at P20 apiece, gross proceeds could reach P45.8 billion or $785 million. A price of P15 per share, meanwhile, will yield some P34.35 billion or $588 million.

The IPO will be priced on October 20 and the offering period will run from October 23 to October 29, with listing at the Philippine Stock Exchange set to November 7.

If it pushes through, Maynilad’s offering would only be the second IPO in the country so far, as jittery market conditions pulled back plans by other companies to go public.

Cornerstone investors will be led by the International Finance Corp. and the Asian Development Bank, according to the company’s prospectus.

The water firm also signed cornerstone investment agreements with 10 more international and domestic institutions led by the UK’s Foreign, Commonwealth and Development Office, acting through its ‘Mobilising Capital through Listed Products’ (Mobilist).

The international cornerstone investors are led by Mobilist and includes: abrdn Malaysia Sdn Bhd; Maven Investment Partners Ltd-Hong Kong Branch; Maybank Asset Management Singapore Pte. Ltd.; Robeco Switserland Ltd.; and, QRT Master Fund SPC-Torus Fund SP.

The domestic cornerstone investors, meanwhile, include BPI Asset Management and Trust Corp.; Metropolitan Bank and Trust Co.; BDO Capital and Investment Corp.; and, Security Bank Corp.-Trade and Asset Management Group.

Maynilad said each of the cornerstone investors have entered into a cornerstone investment agreement with the firm and the international underwriters or lead domestic underwriter to purchase offer shares at the determined offer price.

The IFC is investing up to $100 million at a subscription price of up to P15 per share while the ADB is considering an investment of $145 million also at the same price.

Robeco is investing up to $20 million with no indicated maximum price while Mobilist and BDO Capital are subscribing at up to P15 per share with no committed amount. No committed amount and/or maximum price have been disclosed for the other cornerstone investors.

The pursuit for accountability in the corruption-tainted flood control projects in the Philippines does not rest solely with government investigation offices. In the last three articles, I dwelled on the Office of the President, the Independent Commission for Infrastructure, the Congressional oversight and investigation committees, the Financial Watchdogs, and the Enforcement and Investigative Units. A deeper and sustained inspection of these anomalies demands that scrutiny be expanded to include the professional gatekeepers, the legal advisers, and consultants who enable or overlook malpractices.

The professional gatekeepers include the Professional Regulatory Boards of Civil Engineers (PRBCE), the Professional Regulatory Board for Certified Public Accountants (PRBCPA), the Supreme Court (SC), and the Integrated Bar of the Philippines (IBP). These institutions are responsible for the admission of individuals into the professions of civil engineering, certified public accountancy, and law after they pass the rigorous licensure and bar examinations. Thereafter, the SC, IBP, PRBCE, PRBCPA and their professional membership associations mandate that their members and professionals discharge their responsibilities with full competence and integrity.

These professional gatekeepers must examine the conduct of their members implicated in anomalous flood control projects. They should take the lead in investigating if accountants, whether in government or in industry, have connived with the flood control perpetrators in ‘cooking’ the books and documents; if the Commission on Audit auditors, Bureau of Internal Revenue examiners, and external auditors have ignored signs of fraudulent records and declarations of the flood control contractors and public works financial reports; if civil engineers have certified defective or ‘ghost’ public works projects; or if corporate lawyers have assisted their public works clients in aggressive schemes to perpetuate the flood control irregularities and to create illegal schemes such as the use of shell firms and dummies, or other fictitious transaction.

These erring professionals collectively undermine public trust and project integrity. Inaction or negligence by these professionals not only tarnishes their personal reputation and that of their profession but also facilitates the systemic fraud that corrupted the flood control projects.

The respective ethics boards of these professional gatekeepers should recommend or institute the appropriate sanctions against the incorrigibles within their ranks. They should initiate motu proprio investigations that will result in the severest of sanctions against these individuals, including the revocation or cancellation of their professional licenses

As the investigations unfold, the participation of professional gatekeepers will determine whether justice in the flood control scandal will be partial or complete. The integrity and the ability to police the ranks of the professions-law, accountancy, engineering-is now under strict scrutiny. Will the leaders of the professions institute the appropriate investigations and imposition of sanctions against their erring fellow professionals? Or will they deliver slow and half-baked responses?

The flood control mess is not only a test of the government’s will but also of professional conscience. If each regulatory board and professional body fulfills its mandate, the ‘recipe’ for corruption may finally be replaced with one for accountability, reform, and a rebuilding of public trust.

To be continued

Joel L. Tan-Torres was a former Commissioner of the Bureau of Internal Revenue. He has also held various positions, including Dean of the University of the Philippines School of Business, Chairman of the Professional Regulatory Board of Accountancy, Tax partner of Reyes Tacandong and Co., and SyCipGorres and Velayo and Co., and director of various corporate boards. He is a Certified Public Accountant who ranked No. 1 in the CPA Board Examination of May 1979. He has his own tax and consultancy practice in JL2T Consulting and can be contacted at joeltantorres@yahoo.com.

An exhibit coordinator admires the intricate piña textile at the 15th Likhang HABI Market Fair, held at Level 5, SPACE at One Ayala, Makati City.

Organized by HABI: The Philippine Textile Council, the three-day event celebrated Filipino craftsmanship and culture through more than 80 exhibitors showcasing locally woven fabrics and artisan products from across the country.

Highlights included live weaving demonstrations, the ‘Kwentong Kultura’ lectures, and the Lourdes Montinola Piña Weaving and Eloisa Hizon Gomez Abaca Weaving competitions-underscoring thecountry’s rich textile heritage and the artistry of its weaving communities.

THE PhilCycling National Championships for Road 2026 will be held from February 17 to 20 next year, the International Cycling Union-the sport’s international federation known by its acronym UCI, announced on its website recently.

The national road championships will again be staged in and around a technical course with Tagaytay City as the main hub and the municipalities of the Eighth District of Cavite and First District in Batangas Province as the other major routes.

PhilCycling president Abraham ‘Bambol’ Tolentino, also the president of the Philippine Olympic Committee, said the 2026 nationals will also showcase the brand new Tagaytay CT Velodrome, which will host the 2026 Asian Cycling Confederation (ACC)-headed by Malaysian Dato’ Amarjit Singh Gill-Track Championships from March 25 to 31.

This marks the first time in 31 years that the Philippines is hosting the Asian track championships-the last time was in 1995 when the country hosted both the Asian Road and Track Championships at the Amoranto Velodrome-which was demolished to give way to a football pitch-in Quezon City and Subic.

The 2026 nationals will actually begin with the Criterium races on February 16, followed by the Individual Time Trial on February 17 and the Road Races from February 18 to 20.

Categories will be in the Elite, Under 23, Juniors and Youth both for men and women.

A Masters category will be incorporated in the nationals’ program to determine the country’s representatives to the Asian Road Championships in Saudi Arabia-the ACC has yet to announce the dates.

And as usual, the top performers in the Juniors races will be included on the national team to the Asian championships as incentive.

THE country’s first Knowledge, Innovation, Science, and Technology (KIST) Ecozone within a private university was inaugurated on October 8, marking a milestone in the government’s effort to link research and industry toward inclusive economic growth.

De La Salle University (DLSU) opened its Innovation Hub at the DLSU Laguna Campus in Biñan City, in partnership with the Department of Science and Technology (DOST) and the Philippine Economic Zone Authority (PEZA).

The facility is the first KIST Park led by a private higher education institution (HEI).

It joins Batangas State University’s KIST Park, established in 2020 under Presidential Proclamation 947, as the second KIST Ecozone in Calabarzon and the second in the country overall.

‘These Ecozones are not just physical spaces but centers of convergence, where science and technology meet entrepreneurship,’ Science Secretary Renato Solidum Jr. said during the launch.

‘Bold ideas are transformed into opportunities that create jobs, foster businesses, and stimulate inclusive economic growth,’ he added.

Solidum said the expansion of the KIST model to private universities will strengthen the country’s capacity to commercialize research and development (R and D) outputs.

‘De La Salle has a lot of research and development results that can be commercialized, and they have companies that they can grow,’ the science chief said.

Located within the DLSU Science and Technology Complex, the Innovation Hub is envisioned as an ecosystem for interdisciplinary research, innovation, and social impact.

It adopts the ‘quadruple helix’ framework that connects government, academia, industry, and the community in driving innovation-based growth.

For her part, PEZA group manager Rowena Naguit said the project aligns with the government’s broader goal of linking education and enterprise.

‘Education has always been the bedrock of national progress,’ Naguit said. ‘Through this KIST Park, we are strengthening that bridge between academia and industry, between research and real-world application, between knowledge and nation-building.’

The DLSU KIST Ecozone will specialize in advanced biotech systems and engineering, particularly biomedical technologies, genomics, bioinstrumentation and translational health sciences.

The launch comes as the Philippines entered the world’s 50 most innovative economies for the first time, ranking 50th out of 139 economies in the 2025 Global Innovation Index (GII). It also surpassed the Philippine Development Plan (PDP) target of 52nd place for the year.

The facility will also complement DOST’s Propel program, which accelerates innovation and technology commercialization among Filipino researchers and startups.

As of 2025, DOST said more than 30 KIST applications are under review, including one from another private HEI.

In August 2023, DOST signed an agreement with PEZA and the Philippine Association of State Universities and Colleges (PASUC) to expand the establishment of KIST Parks and Ecozones nationwide.

Under the KIST framework, universities are designated as ecozones where research facilities coexist with technology-based enterprises. These zones are intended to attract investors, generate high-skill employment and drive regional innovation-led growth.