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BAIPHIL Market Watch 16 March 2017 Page 1 of 9 BAIPHIL MARKET WATCH 16 Mar 2017 Improvement / Up Deterioration / Down No Movement FINANCIAL MARKETS AT A GLANCE PHILIPPINES Financial Rates Current Previous USD/PHP 50.3400 50.3600 30-D PDST-R1 2.1893% 2.2071% 91-D PDST-R1 2.2903% 2.2295% 180-D PDST-R1 2.8893% 2.5921% 1-Y PDST-R1 2.6311% 2.6794% 10-Y PDST-R1 5.0946% 5.1107% 30-D PDST-R2 2.1893% 2.2071% 91-D PDST-R2 2.2874% 2.2751% 180-D PDST-R2 2.5216% 2.5827% 1-Y PDST-R2 2.6353% 2.6601% 10-Y PDST-R2 5.0946% 5.1107% Stock Index Current Previous PSEi 7,253.79 7,261.75 Market Cap (Php Trillion) 12.325 12.352 Total Value (Php Billion) 8.265 7.051 PSEi Performers Closing % Change Top Gainers Chemical Industries of the Philippines 187.00 8.62% Manila Broadcasting Co. 18.00 6.25% Manila Mining Corp B 0.012 6.06% Top Losers LMG Chemicals Corp. 4.50 -41.94% Seafront Resources Corp. 2.86 -8.63% Apollo Global Capital, Inc 0.050 -7.41% ASIA-PACIFIC Stock Index Current Previous NIKKEI 19,577.38 19,609.50 HANG SENG 23,792.85 23,827.95 SHANGHAI 3,241.76 3,239.33 STRAITS 3,137.43 3,143.40 SET 1,540.80 1,543.15 JAKARTA 5,432.38 5,431.58 Currency Exchange Current Previous USD/JPY 113.2200 114.7400 USD/HKD 7.7663 7.7681 USD/CNY 6.9149 6.9150 USD/SGD 1.4026 1.4152 USD/THB 35.0380 35.2900 USD/IDR 13,363.50 13,369.50 REST OF THE WORLD Stock Index Current Previous FTSEuro First 300 1,478.31 1,472.47 FTSE 100 7,368.64 7,357.85 DAX 12,009.87 11,988.79 CAC 40 4,985.48 4,974.26 DOW JONES 20,950.10 20,837.37 S&P 500 2,385.26 2,365.45 NASDAQ 5,900.05 5,856.82 Various Current Previous EUR/USD 1.0736 1.0610 GBP/USD 1.2279 1.2156 Gold Spot (USD/oz) 1,200.10 1,201.90 Brent Crude(USD/bbl) 51.81 51.43 3-M US Treasury Yield 0.72% 0.75% 10-Y US Treasury Yield 2.51% 2.59% 30-Y US Treasury Yield 3.11% 3.17% PHILIPPINES Philippine shares closed broadly in the red on Wednesday, snapping two consecutive days of gains, as investors chose to sell positions ahead of an announcement from the Federal Reserve. The main PSEi fell by 7.96 points or 0.11 percent to 7,253.79. The broader All Shares lost 9.51 points or 0.22 percent to 4,373.82. More than 1.800 billion shares, valued at P8.265 billion, changed hands. Losers led winners, 133 to 59, and 52 issues remained the same. The Philippine peso rebounded against the dollar on Wednesday as investors sold long positions in the greenback ahead of an announcement by the Federal Reserve on interest rates. The local currency gained 2 centavos to close at P50.34:$1 from 50.36 on Tuesday. In the local fixed income market, treasuries fell ahead of the anticipated Fed rate hike , as investors took a defensive stance. On average, treasury yields rose by 1.94 bps, driven by the belly of the curve, which rose 6.1 bps. The central bank is keeping the bid volume for its term deposit facility (TDF) unchanged, as demand remains in line with expectations. “Demand for the TDF remains good; no real need to adjust auction settings at the moment,” Bangko Sentral ng Pilipinas

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BAIPHIL Market Watch – 16 March 2017

Page 1 of 9

BAIPHIL MARKET WATCH

16 Mar

2017

Legend Improvement / Up Deterioration / Down No Movement

FINANCIAL MARKETS AT A GLANCE

PHILIPPINES

Financial Rates Current Previous

USD/PHP 50.3400 50.3600

30-D PDST-R1 2.1893% 2.2071%

91-D PDST-R1 2.2903% 2.2295%

180-D PDST-R1 2.8893% 2.5921%

1-Y PDST-R1 2.6311% 2.6794%

10-Y PDST-R1 5.0946% 5.1107%

30-D PDST-R2 2.1893% 2.2071%

91-D PDST-R2 2.2874% 2.2751%

180-D PDST-R2 2.5216% 2.5827%

1-Y PDST-R2 2.6353% 2.6601%

10-Y PDST-R2 5.0946% 5.1107%

Stock Index Current Previous

PSEi 7,253.79 7,261.75

Market Cap (Php Trillion) 12.325 12.352

Total Value (Php Billion) 8.265 7.051

PSEi Performers Closing % Change

Top Gainers

Chemical Industries of the Philippines

187.00 8.62%

Manila Broadcasting Co. 18.00 6.25%

Manila Mining Corp B 0.012 6.06%

Top Losers

LMG Chemicals Corp. 4.50 -41.94%

Seafront Resources Corp. 2.86 -8.63%

Apollo Global Capital, Inc 0.050 -7.41%

ASIA-PACIFIC

Stock Index Current Previous

NIKKEI 19,577.38 19,609.50

HANG SENG 23,792.85 23,827.95

SHANGHAI 3,241.76 3,239.33

STRAITS 3,137.43 3,143.40

SET 1,540.80 1,543.15

JAKARTA 5,432.38 5,431.58

Currency Exchange Current Previous

USD/JPY 113.2200 114.7400

USD/HKD 7.7663 7.7681

USD/CNY 6.9149 6.9150

USD/SGD 1.4026 1.4152

USD/THB 35.0380 35.2900

USD/IDR 13,363.50 13,369.50

REST OF THE WORLD

Stock Index Current Previous

FTSEuro First 300 1,478.31 1,472.47

FTSE 100 7,368.64 7,357.85

DAX 12,009.87 11,988.79

CAC 40 4,985.48 4,974.26

DOW JONES 20,950.10 20,837.37

S&P 500 2,385.26 2,365.45

NASDAQ 5,900.05 5,856.82

Various Current Previous

EUR/USD 1.0736 1.0610

GBP/USD 1.2279 1.2156

Gold Spot (USD/oz) 1,200.10 1,201.90

Brent Crude(USD/bbl) 51.81 51.43

3-M US Treasury Yield 0.72% 0.75%

10-Y US Treasury Yield 2.51% 2.59%

30-Y US Treasury Yield 3.11% 3.17%

PHILIPPINES

Philippine shares closed broadly in the red on Wednesday, snapping two consecutive days of gains, as investors chose to sell

positions ahead of an announcement from the Federal Reserve. The main PSEi fell by 7.96 points or 0.11 percent to 7,253.79. The

broader All Shares lost 9.51 points or 0.22 percent to 4,373.82. More than 1.800 billion shares, valued at P8.265 billion, changed hands. Losers led winners, 133 to 59, and 52 issues remained the same.

The Philippine peso rebounded against the dollar on Wednesday as investors sold long positions in the greenback ahead of an announcement by the Federal Reserve on interest rates. The local currency gained 2 centavos to close at P50.34:$1 from 50.36 on Tuesday.

In the local fixed income market, treasuries fell ahead of the anticipated Fed rate hike , as investors took a defensive stance. On

average, treasury yields rose by 1.94 bps, driven by the belly of the curve, which rose 6.1 bps.

The central bank is keeping the bid volume for its term deposit facility (TDF) unchanged, as demand remains in line with

expectations. “Demand for the TDF remains good; no real need to adjust auction settings at the moment,” Bangko Sentral ng Pilipinas

BAIPHIL Market Watch – 16 March 2017

Page 2 of 9

(BSP) Governor Amando M. Tetangco Jr. said in a text message. Data released by the BSP showed the seven-day, P30-billion tenor garnered bids worth P41.125 billion, at a weighted average accepted yield of 2.9823 percent, and a bid coverage ratio of 1.3708. The 28-day, P150-billion facility attracted bids worth P176.891 billion, at a weighted average accepted yield of 3.3249 percent, and a bid coverage

ratio of 1.1793. This week’s bid coverage ratios were mixed compared with last week. The short-term tenor saw a climb from last week’s 1.0815, while the 28-day tenor saw a decline from 1.3781. “Interest rate movements have been small. Changes in the bid to cover ratio can be expected from week-to-week as players adjust to client and other demands,” Tetangco noted. The TDF is a central bank tool to

mop up liquidity in the financial system, in line with the shift to the interest rate corridor in June 2016. During 30-minute auction, banks make a bid for the interest rates which the BSP will pay for them to park their excess funds. The minimum placement is P10 million.

The amount of money sent home by overseas Filipinos reached $2.396 billion in January, up 8.5 percent from $2.208 billion a year earlier, the Bangko Sentral ng Pilipinas (BSP) said on Wednesday. "The continued increase in personal remittances was mainly driven by the 13.5 percent growth in transfers from land-based workers with work contracts of one year or more, which summed up to $1.9

billion," BSP Governor Amando Tetangco Jr. said in a statement. Tetangco noted such development helped offset the 8.3 percent decline to $0.4 billion in remittances of land-based and sea-based workers with contracts of less than one year. Cash remittances, coursed through formal channels like banks, expanded by 8.6 percent to $2.169 billion from $1.997 billion year-on-year. According to the central bank, the

bulk of cash remittances came from the United States, Saudi Arabia, United Arab Emirates, United Kingdom, Japan, Singapore, H ong Kong, Qatar, Kuwait and Australia. The combined remittances from these countries accounted for more than 79 percent of cash remittances.

The Bangko Sentral ng Pilipinas (BSP) has directed banks to put in place a system to detect unusual and suspicious accounts as

part of the government’s efforts to combat money laundering and terrorist financing. BSP Deputy Governor Nestor Espenilla Jr.

issued Memorandum 2017-009 reminding all banks about their dealings with money service business (MSB) based on the Manual of Regulations for Banks and M-2016-004 issued in April last year. Espenilla said banks should have a system that would enable them to understand the normal and reasonable account activity of customers and detect unusual or suspicious patterns of activity as part of

ongoing monitoring of customers, accounts, and transactions. “This includes, among others, the ability to identify customers or accounts which are being used to facilitate MSB activities and subject them to appropriate due diligence and monitoring procedures,” he said. The BSP official stated in the memo that banks should only deal with registered foreign exchange dealers, money changers, as well as

remittance and transfer companies. “Banks are required, as part of customer identification process, to secure, among others, a copy of registration of foreign exchange dealers, money changers and remittance and transfer companies, or collectively known as MSBs, with the BSP,” Espenilla said. He also reminded banks about the enhanced oversight framework for MSB that includes the revised rules for

registration with the BSP. “Banks may not deal with unregistered MSB,” Espenilla said. As of June last year, there are more than 18,000 BSP-registered money service businesses comprising of 5,300 head offices and 12,700 branches. Of the total number about 6,700 are also BSP-authorized pawnshops. The number of MSB in the Philippines is continuously growing and evolving to support the expanding

needs of its customers. It now includes, among others, the electronic money business subsidiaries of telecommunication companies.In January, the Monetary Board approved an updated comprehensive framework aimed at enhancing BSP oversight over the operations of MSB to promote more effective compliance with the Anti-Money Laundering Law. Under the new rules, the BSP will regulate all remittance

and transfer companies such as remittance agents, remittance platform providers, and e-money Issuers. Money service businesses are required to register with the Anti-Money Laundering Council (AMLC) and submit activity level reports to the BSP. The BSP also limited the ability of money service businesses to transact in cash wherein large value pay-outs of more than P500,000 or its foreign currency

equivalent, in any single transaction with customers or counterparties, houldl only be made via check payment or direct credit to deposit accounts. Also, foreign exchange dealers and money changers are only allowed to sell foreign currencies in the amount not exc eeding $10,000 or its equivalent and not to exceed $50,000, or its equivalent per month per customer.

Malacañang is pulling out all the stops to smooth away legislative difficulties of its tax reform, after President Rodrigo R. Duterte

bared in a press briefing last Monday with both heads of Congress that the bill has met “resistance” and “rough sailing” among

lawmakers. Mr. Duterte met with 15 of the 18 senators of the majority bloc over dinner in Malacañan Palace last Tuesday -- a day after meeting with Senate President Aquilino “Koko” L. Pimentel III and Speaker Pantaleon D. Alvarez -- partly to discuss the first of four tax reform packages that has encountered hurdles in the House of Representatives Ways and Means committee and which faces even more

questions in the Senate. “[T]he President and the senators exchanged views on vital legislative agenda currently pending in the Senate. Among the pending bills they discussed were the proposed emergency powers to solve the traffic problem in Metro Manila and the proposed comprehensive tax reform package, which seeks to realign the revenue collection of the government, boost the available income of taxpayers, while guaranteeing the healthy operation of the government and the country’s inclusive development programs,” P residential

Spokesperson Ernesto C. Abella told reporters via text message, adding that the revived “war on drugs” was also discussed. The proposed traffic emergency powers, Senate President Pro-Tempore Ralph G. Recto told reporters yesterday, “was tackled briefly, but he (Mr. Duterte) said that he could do with it or without it; better [if] he has it.” “We discussed the proposed tax reform,” Senator Joseph Victor G.

Ejercito said in a March 14 social media post on the dinner. Asked particularly what Mr. Duterte discussed regarding tax reform, Senator Juan Edgardo “Sonny” M. Angara, chairman of the Senate Ways and Means committee, told reporters separately yesterday: “He was just asking for support, no specifics.” But Mr. Ejercito, who heads the Senate committees on Urban Planning, Housing and Resettlement as

well as on Health and Demography, told reporters yesterday that senators discussed their apprehensions with the first tax reform package. The four-package tax reform program is designed to shift overall tax burden away from low wage earners towards those who can better afford such levies, while yielding more net revenues to help finance the administration’s infrastructure drive. In its configuration as of Jan.

30, the first package was to result in P139.6 billion in foregone revenues from lower personal income tax, estate tax and donor tax rates as well as raise an additional P302.1 billion from reduced VAT exemptions, as well as increased excise taxes on cars and oil products, yielding P162.5 billion in net revenues in the first year of implementation. The entire program, in turn, is designed to backstop the Duterte

administration’s plans to hike infrastructure spending to 7.1% of gross domestic product by 2022 -- the year it steps down -- from a programmed ratios of 5.4% this year and 5.1% in 2016. That first package -- under House Bill No. 4774 which is based on a draft submitted by the Finance department in September last year -- was supposed to have been approved last Tuesday by the House Ways and Means

committee, which returned it to a technical working group in order to consolidate it with several other similar proposals. In processing the first package, the committee had occasionally worried the Finance department by focusing more on tax cuts and less on revenue -generating measures meant to plug collections to be foregone. The committee, for instance, rejected the department’s proposal to remove

value added tax exemptions of senior citizens and the disabled. In a statement yesterday, however, Finance Secretary Carlos G. Dominguez III welcomed the decision to approve “tax reforms as a package rather than on a piecemeal basis,” describing this move as “a step closer for Congress to help the Duterte administration fund its ambitious agenda to sustain the high-growth momentum, dramatically

cut poverty and transform the country into a high middle-income economy by 2022.” The Finance department said in its statement yesterday that still hopes both chambers of Congress will approve the first package “possibly by the middle of this year.” Bu t Mr. Ejercito signaled that the measure could face even more rough sailing ahead when the Senate tackles it. “The President found out that there are

BAIPHIL Market Watch – 16 March 2017

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some senators who have some apprehensions, who found the proposed tax increase too high,” he told reporters. “For example, I’m not in favor of the increase of taxes in petroleum products, the others on the excise tax,” he explained. “Although we favor the increase, it’s just too steep. So, we want to discuss further how we can come up with an acceptable tax reform package.”

The Department of Social Welfare and Development (DSWD) said targeted cash transfers contemplated to offset lost entitlements

under the tax reform programs will not be enough to offset the more expensive goods that will result from higher excise taxes.

DSWD Secretary Judy M. Taguiwalo said that the Finance department’s proposed P300 a month targeted transfer -- which is valid for one year -- is insufficient to protect the marginalized. “Inflation in the past eight years has already eroded the real value of the cash grants. If at all, DoF’s planned additional P300 per month for one year will only cover the lost real value, not the price increases,” said Ms. Taguiwalo.

Ms. Taguiwalo was referring to the revival of the Pantawid Pasada Program proposed by the Department of Finance (DoF), which is aimed to minimize additional transport and household costs from increasing excise taxes on petroleum. The DSWD Secretary added that there will be a time lag before the cash transfers are received by the beneficiaries, saying that administrative problems will contribute to the

backlog. “The DoF proposes cash transfers to 10 million households and cash cards to public utility vehicles for one year. Th is scenario is as ominous as it is demeaning to Filipinos,” said Ms. Taguiwalo. “We cannot fathom allowing a year of long queues for card applications, for cash payouts, for grievances and complaints of loan sharks waiting for willing prey, of local and national government off ices turning into

markets during cash payouts. And what to do about those who will be excluded from the cash transfers due to the arbitrary target and inherent errors in the targeting system,” she said. Deputy Speaker Gloria M. Macapagal-Arroyo however told the DSWD chief that the imperfect administrative system of the cash transfers should be addressed to the Cabinet. Ms. Arroyo implemented the 4Ps in 2008, which

was intended as a health and education incentives program. Ms. Taguiwalo added that additional costs from excise taxes will s low down the delivery of its frontline services to the poor. Meanwhile, Finance Undersecretary Karl Kendrick T. Chua said that higher taxes on cars and fuel will not erode the gains from additional employment brought by the government’s automobile incentive program. He was

responding to Trade Secretary Ramon M. Lopez’ proposal of differential tax rates for locally manufactured cars to maintain economic benefits of the Comprehensive Automotive Resurgence Strategy (CARS) program, like local employment. The program is said to br ing around 200,000 direct and indirect jobs over the medium term. Mr. Chua said that car sales will continue to grow despite the increase in

selling prices of cars, as individuals will see their income grow from the lowering of personal income tax rates. “Firstly, the income effect of those who will buy cars are the same people that will gain from the lower personal income tax so they will be able to buy cars,” said Finance Undersecretary Karl Kendrick T. Chua yesterday. “Initially, there may be a slow down but remember this country is the fastest

growing country, this country is also where inequality is very high the racial growth has become very fast, remember we are pump priming the economy to P140 billion, giving P140 billion to the people,” he said. “Because of this pump priming, maybe in a year or two these people will be even richer so 5% benefit that the industry and all the suppliers of these services will be affected.” The CARS program

grants incentives to three car makers to locally produce three car models. The American Chamber of Commerce in the Philippines (AmCham) said it supports the Duterte government's campaign against

smuggling and tax evasion in cigarettes. The group of US businesses said it "commends" and "applauds" the recent crackdown on cigarettes found with counterfeit internal revenue stamps as it promotes corporate tax compliance and level playing field. "With these developments, AmCham encourages the Philippine government to proceed vigorously to investigate the case against the said

manufacturer, as the recent seizures may be the tip of an iceberg of tax evasion going back several years," the group said. "Action should also be taken against government officials who may be involved in facilitating the tax evasion," it added. The Bureau of Customs on Tuesday said it has suspended the import accreditation of cheap cigarette-maker Mighty Corp. Authorities are investigating the company

for allegedly using fake tax stamps, with several shipments seized from its warehouses. Despite the Duterte administration’s vow to reduce red tape and make doing business in the country easier, micro, small and

medium enterprises (MSEMs) have yet to feel the improvement, the Philippine Chamber of Commerce and Industry (PCCI) said Wednesday. “Although the pronouncement of President [Rodrigo] Duterte is to reduce the bureaucracy… most of the MSMEs have told us they have not really felt it,” PCCI President George Barcelon told Finance Secretary Carlos Dominguez III during the business group’s

membership meeting in Makati City. PCCI is the country’s largest business group composed of 130 local chambers all over the country. In response, Domingez said the government is still going though with the measures to reduce the layers of bureaucracy that businesses have to undergo. “Hopefully, sometime by middle of this year you will see the beginnings of our efforts in clearing up the red tape issues,” he

said. Barcelon also asked Dominguez for the Department of Finance to come up with a “yardstick” to measure if government agencies as well as local government units are consistent with the policy in reducing red tape and improving ease of doing business. “We are going through this very carefully and quickly as possible,” Dominguez replied. “Our goal is that if you are an importer or a tax payer, you go online and will be able to complete maybe 90 to 95 percent of the transactions without any face-to-face interaction with the bureaucracy,” he

added. “We are also setting up standards with our local treasurers to make some (effort) that their work is speeded up and not slowed down. Practically, you need to work with each municipalities or cities because they sometime different process,” Dominguez also said.

A consortium formed by the Gokongwei and Gotianun groups vowed to deliver a brand-new world-class Clark International Airport (CIA) by 2020 – if the government would accept its unsolicited airport infrastructure proposal. Filinvest disclosed that its unsolicited proposal had been submitted as early as July last year after the government announced that it was open to accepting such

unsolicited proposals for infrastructure projects. “With early completion in mind, our unsolicited proposal is based on the Aeroport de Paris Masterplan prepared for Clark International Airport (CIA) last 2015 in order to fast track its development. The new CIA will serve the residents of central and northern Luzon and at the same time help ease congestion at NAIA,” the JG Summit-Filinvest consortium said. The

group said it had submitted its proposal with the objective of fully complying with the requirements of the Build-Operate-Transfer (BOT) law. Under the BOT Law, only complete proposals will be given due course and entertained, the group said. The group had proposed a 50-year concession period once the brand-new Clark International Airport is built. The new airport will start with an initial capacity for eight million

passengers compared to the existing traffic of one million, the group said. The masterplan allows the Clark gateway to expand its terminals and runways to easily accommodate for the traffic growth over the next 50 years. The consortium commits to a “robust and regu lar capacity augmentation program to insure the CIA will continually meet the passenger service performance standards of world-class airports.” JG

Summit and Filinvest are among the largest conglomerates in the country with businesses that span airline operations, malls, housing, condominiums, petrochemicals, banking, branded food manufacturing, and power among others.

Ayala Land, Inc. is firming up another bond offering for next month to raise P7 billion more from a three-year debt securities program for capital expenditures and other requirements. In a preliminary prospectus dated March 3, the listed property business of the Ayala Group proposed to issue another batch of fixed-rate bonds amounting to P7 billion and maturing in 2027 from its P50-billion shelf

offering. Ayala Land is looking to offer the bonds on April 10-21 and list them on the Philippine Dealing & Exchange on April 28, Corporate Communications Manager Suzette P. Naval said in a mobile phone message. The company will have the right to redeem the bonds i n whole before the maturity date. It may decide to repay an amount equivalent to 102% of the bonds’ face value on the seventh year; 101%

BAIPHIL Market Watch – 16 March 2017

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on the eight and 100.5% on the ninth. China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. agreed to underwrite the proposed bond offering. Ayala Land expects to net P6.92 billion from the bonds. It earmarked the proceeds for the completion of retail spaces, offices, hotels and a transportation hub across six developments in Makati, Quezon City and Parañaque. The

proposed issue represents the fourth tranche of the fixed-rate bonds series comprising its P50-billion shelf offering approved by the Securities and Exchange Commission in March 2016. Ayala Land has exhausted P25 billion from the shelf after tapping the bond market four times last year. It has issued P22 billion in fixed-rate bonds in March, April and October and P3 billion in homestarter bonds in

October. Last month, the company disclosed its board of directors authorized the raising of a maximum of P20 bill ion by offering a mix of retail bonds and corporate notes or availing of bilateral term loans with maturities as long as 10 years. The board also appr oved the issuance of debt papers maturing not more than 21 months to raise P10 billion more for the refinancing of short-term loans. Ayala Land has

outlined a capital expenditure program of about P88 billion for the year, higher than the P85.40 billion it disbursed in 2016. In a media briefing earlier, executives noted that P20 billion of the planned spending will be financed by debt. The property developer intends to spend P40.7 billion on residences, P11.8 billion on malls; P10.6 billion on land; P9.2 billion on offices; P5.5 billion on estates; P4.4 billion on

hotels and resorts; and P4.9 billion on others. The residential business accounts for bulk of the capital layout, as Ayala Land looks to launch P100 billion worth of products for sale within the year. It targets to introduce 19,000 units or almost double the 7,300 offered in 2015 across projects worth P61.5 billion. Higher residential and office sales, along with the delivery of more leasable spaces, pushed the

company’s consolidated revenues by 16% to P124.6 billion and net income by 19% to P20.9 billion in 2016. Shares in Ayala Land closed 30 centavos or 0.83% lower at P35.70 apiece on the Philippine Stock Exchange on Wednesday, tracking the market-wide downtrend in anticipation of the Federal Reserve’s move to hike rates in the United States.

PLDT Inc. said it widened its lead in the home broadband business with a 60 percent market share in 2016. PLDT said this

segment bolstered service revenue by 10 percent to P29.3 billion. Its subscriber base also went up year-on-year by 14 percent last

year. The company is accelerating the expansion of its fiber-to-the-home (FTTH) facility which is expected to pass 4.4 million homes by the end-2017. “We are encouraged by the momentum that PLDT Home has built through six consecutive years of accelerating growth and we are ready to serve a larger share of this expanding market,” PLDT first vice president and Home business head Oscar Enrico Reyes Jr.

said in a statement. Along with the enterprise business, broadband for homes has been identified as one of the key growth dri vers for the PLDT Group as it moves toward data and digital services. PLDT’s FTTH service is now available in key urban areas in the country. The telco intends to shift all its subscribers to the ‘fiber-fast’ connections by the end of 2018. PLDT has invested P300 billion over the last 10

years to roll out the country’s most extensive transmission and distribution network infrastructure which now has more than 150,000 kilometers of fiber optic cables that transport the growing data traffic of its fixed line and mobile networks.

The country’s leading casual dining chain operator Max’s Group Inc. (MGI) grew net profit last year by 12 percent to P561.74 million as robust domestic consumer spending supported a double-digit expansion in restaurant sales. In a disclosure to the Philippine Stock Exchange on Wednesday, MGI said systemwide sales had gone up by 12 percent to P15.34 billion for the year, in turn

supporting a 10-percent growth in revenues to P11.44 billion. “We are fairly upbeat with our full year performance. We were able to successfully execute our strategies amidst a rapidly intensifying competitive environment. Overall, it was another productive year for us,” MGI president Robert Trota said. Restaurant sales increased by 10 percent to P9.42 billion from P8.59 billion as the group opened 77 new

stores while same store sales performance was steady last year. The rollout of 77 new stores last year – including 16 overseas branches – brought MGI’s total network count to 623 branches. Its overseas footprint now consists of 49 outlets The group sees itself on track to build a network of 1,000 outlets, including 200 international stores, by 2020. Last year, MGI’s online and delivery revenues stood 24 percent

higher at P1.08 billion, attributed to a centralized ordering and dispatch platform. Commissary sales stood relatively flat at P1.26 billion from P1.28 billion owing to closures of certain franchised outlets. Meanwhile, revenues from new franchises, royalty and cont inuing license fees rose by 54 percent to P766.72 million, driven by growing recurring income base and additional overseas franchise contracts. Cost of

sales improved to 72.2 percent for 2016 from 72.6 percent in the previous year. The company said it had mitigated pricing headwinds from rising input components with lower logistics and utility expenses. Cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) ended the year at P1.47 billion. MGI has budgeted around P750 million to P800 million in capital expenditure

this year, largely for the rollout of another 60 to 70 new stores primarily among core brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme. On offshore business, MGI has a pipeline of over 140 overseas stores slated to open in the coming years. Last year, the MGI inked eight development agreements for at least 80 stores across various geographies. Among the notable markets

penetrated for 2016 included Yellow Cab Pizza’s foray into China and Singapore. “We remain bullish on the pace of our global business. Our focus this year is to boost recurring income by accelerating store development. Nonetheless, we shall constantly be on the lookout for fresh territories,” said Peter King, chief executive officer of Max’s Group International. MGI also reported significant prog ress in “fortifying its support structure.” Last year, MGI invested in major enterprise resource systems to automate processes and harmonize procedures

throughout the organization. At the senior management level, MGI hired key professionals to strengthen its existing talent roster. There are also initial plans to expand commissary capacity to reinforce future growth. “We are confident in sustaining the same momentu m moving into 2017. We firmly believe prevailing economic conditions will remain supportive of our bus iness,“ Trota said.

Puregold Price Club, Inc. is folding in three retail companies acquired through its investment holding subsidiary Entenso

Equities, Inc. In a regulatory filing, Puregold disclosed its board of directors approved the merger of Goldtempo Company, Inc., Daily

Commodities, Inc., and First Lane Super Traders Co., Inc. into the listed grocery operator. Puregold will seek its shareholders’ approval for the proposed merger during an annual meeting scheduled for May 9. The company controlled by retail tycoon Lucio L. Co acquired Daily Commodities along with First Lane on Feb. 3, 2015, and Goldentempo next on Aug. 26, 2015 through wholly owned subsidiary Entenso

Equities. Puregold also owns 100% of Kareila Management Corp., the operator of S&R Membership Shopping; 100% of PPCI-Subic, Inc.; and 70% of PG Lawson, Inc. In addition, it maintains a 50% interest in Ayagold Retailers, Inc. through Entenso. The company targeted to grow its consolidated net sales by 12-15% last year, banking on the growth of Puregold and S&R stores; the opening of 25 new Puregold

stores and two S&R stores; and the full-year operation of NE Bodega and Budgetlane Supermarket, among others. In the first nine months of 2016, Puregold booked a 14% increase in net income attributable to the parent to P3.65 billion from the P3.20 billion reported for the comparable 2015 period, following a 17% surge in revenues to P81.02 billion from P69.42 billion. In 2015, the company netted a total of P5

billion, an 11% increase from the P4.52 billion posted for 2014, after growing its revenues 15% to P100.08 billion from P87.29 billion.

Chinese e-commerce giant Alibaba said it is "currently screening" the supposed sale of Philippine tax stamps after Finance

Secretary Carlos “Sonny” Dominguez III called its attention to the practice in a letter last week. In a report on "24 Oras" on Tuesday, Alibaba said its "marketplaces forbid the listing or sale of illicit items including fake tax stamps." "No matter on which platform the transgression takes place, infringers face penalties including permanent store closure," Alibaba said. Alibaba also said they are "currently

screening platforms for the items in question." "Once found and their illicit status established, such items will be removed," it added. It also urged its users and stakeholders to report any infringing items. "We encourage users of our marketplaces and other stakeholders, be they rights holders or government agencies, to make use of the tools available on our platforms of reporting infringing items," Al ibaba said.

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Dominguez earlier wrote to Alibaba founder and executive chairman Jack Ma asking the site to take down fake Philippine tax stamps being sold on the Chinese e-commerce giant. Dominguez said that advertising and selling fake tax stamps "in the open" gave tax evaders more room to "evade excise tax on cigarettes." Dominguez’s letter to Ma came amid a government investigation into the use of Mighty

Corporation of counterfeit tax stamps.

ASIA-PACIFIC

Japan's Nikkei share average slipped on Wednesday, dragged down by a firmer yen as investors await the U.S. Federal Reserve's monetary policy outlook later in the day. The stock under the spotlight was again Toshiba Corp, which nosedived 12 percent after it said it would consider a sale of Westinghouse. But the company, which was the most traded stock by turnover, did not offer any clarity on whether

it would proceed with a Chapter 11 filing for the U.S. nuclear unit. The Nikkei ended 0.2 percent lower at 19,577.38 points. The broader Topix dropped 0.2 percent to 1,571.31 points, and the JPX-Nikkei Index 400 fell 0.1 percent to 14,080.15 points.

China stocks ended little changed on Wednesday as investors remained cautious ahead of an expected U.S. interest rate hike later in the day. Traders said there were few surprises from Premier Li Keqiang's news conference at the end of the annual meeting of China's parliament. Li offered reassurances about China's economy, saying forecasts of a hard landing should stop. While acknowledging

the economy faces internal and external risks, he said the country has many policy tools to cope with them. He also stressed that Beijing does not want to see a trade war with the United States and urged talks between both sides to achieve common ground. The blue-chip CSI300 index rose 0.2 percent, to 3,463.64 points, while the Shanghai Composite Index added 0.1 percent to 3,241.76 points. The

indexes have been trapped in a narrow range over the past month, with investors conflicted by signs of economic strength and lingering doubts over whether the recovery, bolstered mainly by government stimulus, is sustainable. Sector performance was mixed. Gains were led by infrastructure and material shares, which gained support from the continued strength of commodities, while financial plays lost

ground. Start-up board index ChiNext steadied, as index heavyweight Leshi Internet reversed earlier losses to end up 6 percent after plumbing a more than 18-month low, posting its best day in two months.

Hong Kong shares eased on Wednesday, with investors focussed on what the Federal Reserve will say about tightening monetary policy during the rest of the year with markets already pricing in an immediate rise in U.S. interest rates. The Hang Seng index fell 0.2 percent, to 23,792.85 points. The China Enterprises Index lost 0.4 percent to 10,272.83 points, as traders said there were few surprises from

Premier Li Keqiang's news conference at the end of the annual meeting of China's parliament. Analysts say the market has pric ed in the probability that the Fed will raise its short-term interest rate when its two-day policy meeting ends later in the global day. Sector performance was mixed, with energy shares leading the decline as lower oil prices dragged down the sector, while property stocks

continued to outperform. Hong Kong Exchanges and Clearing rose as much as 2.7 percent to hit a two-week high, aided by news that China is considering setting up debt market links between Hong Kong and the mainland this year.

Southeast Asian stock markets were tepid on Wednesday as investors wait to see what cues the U.S. Federal Reserve would reveal on its monetary policy outlook. The Fed began its two-day policy meeting on Tuesday. With the futures market pricing in more than a 90 percent chance that it would raise interest rates, investors' main focus turned to what its statement would say about the pace of

hikes this year. The Fed will announce its decision at 2 p.m. in Washington, followed by Chair Janet Yellen's news conference half an hour later. Though recent data, particularly out of China, has fuelled a rally in Asian equities since the start of the year, investors are expecting more headwinds for emerging markets due to an increasingly hawkish Fed. MSCI's broadest index of Asia-Pacific shares outside Japan

was flat after posting its second-biggest daily gain this year in the previous session. Investors are just waiting for the final outcome of the Fed meeting, and that regional central banks might change policy rates based on the Fed decision to protect their respective currencies. Meanwhile, the Indonesian central bank is expected to keep its benchmark rate unchanged even if the Fed raises rates, a Reuters poll

shows. Indonesia's exports and imports expanded at a slower pace in February compared with a month earlier, as expected in a Reuters poll, data from the statistics bureau showed. Singapore shares were almost flat after shedding nearly 1 percent earlier Data released earlier showed that the city-state's unemployment rate grew 2.2 percent in the fourth quarter, in line with estimates. Fourth-quarter job

redundancies, however, increased 33 percent over the previous quarter. Malaysian stocks were down after three sessions of gains with consumer and financial stocks leading the decline.

Industrial production in Japan dropped by 0.4 percent month-on-month in January 2017, compared to preliminary figures of a 0.8 percent fall and a 0.7 percent rise in the prior month, final figure showed. It was the first decline since July 2016, as output contracted for: transport equipment (-4.3 percent from 2.4 percent in December); chemicals, excluding medicine (-3.9 percent from 1.8 percent); and

general-purpose, production and business oriented machinery (-2.0 percent from -0.2 percent), mining & manufacturing (-0.4 percent from 0.7 percent), iron and steel (-1.4 percent from 2.3 percent), non-ferrous metals (-0.5 percent from 2.0 percent), electrical machinery (-1.8 percent from 2.1 percent), information & communication electronic equipment (-1.6 percent from -12.0 percent) and petroleum & coal

products (-0.6 percent from 1.5 percent). On a yearly basis, output rose 3.7 percent, faster than preliminary estimates of a 3.2 percent gain.

Singapore’s seasonally adjusted unemployment rate rose to 2.2 percent in the fourth quarter of 2016 from 2.1 percent in the previous two quarters. The figure was in line with preliminary estimates and marking the highest jobless rate since the fourth quarter 2010. In the three months to December, the jobless rate for residents were up to 3.2 percent (from 2.9 percent in the third quarter) and the

rate for citizens also increased to 3.5 percent (from 3.0 percent). For full 2016, the annual average unemployment rate increas ed to 2.1 percent from 1.9 percent in 2015. It was the highest jobless rate since 2010.

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South Korea's seasonally adjusted unemployment rate increased to 4 percent in February of 2017 from 3.6 percent in January.

The figure came above market expectations of 3.7 percent. Yet, the jobless rate usually increases in February and March when students

join the labour force and start looking for a job.

Indonesia posted a trade surplus of 1.31 USD billion in February of 2017, compared to a 1.14 USD billion surplus a year earlier

and above market estimates of a 1.2 USD billion surplus. Year-on-year, exports increased 11.16 percent to 12.57 USD billion, following a 27.71 percent rise in the prior month and below market consensus of a 15.19 percent gain. Imports went up 10.61 percent to 11.26 USD billion, following a 14.54 percent growth in a month earlier while markets expected a 13.00 percent rise. In January 2017, trade surplus was

upwardly revised to 1.43 USD billion. Considering January to February, exports rose by 19.20 percent compared to the same per iod a year earlier to 25.98 USD billion while imports increased 12.51 percent to 23.22 USD billion.

REST OF THE WORLD

European shares achieved their highest closing level in two weeks on Wednesday, boosted by basic resource and oil stocks, while French aeroplane seat-maker Zodiac slumped after its latest profit warning. The pan-European STOXX 600 index was up 0.4 percent at its close, with the market focused on potentially divisive elections in the Netherlands and a U.S. Federal Reserve policy meeting that could

signal how much monetary tightening to expect during the remainder of the year. A recovery in oil prices after a surprise U.S. crude stockpile drawdown eased worries about a supply glut and spurred a rally in basic resources stocks with the sector up 1.7 percent, followed by major European oil-related stocks which rose 1.2 percent.

U.S. stocks rose sharply on Wednesday after the Federal Reserve raised interest rates for the second time in three months, as

expected. The Fed, which raised its target rate by 25 basis points, or a quarter of a percentage point, to between 0.75 and 1.00 percent,

did not however flag any plan to accelerate the pace of monetary tightening, a concern that had lingered among some market participants. Markets were expecting the Fed's decision and traders had priced in more than a 90 percent chance of a quarter-point rate increase, according to federal funds futures. During her press conference after the meeting, Fed Chair Janet Yellen pointed to the stock market as an

indicator of easing financial conditions, which some could take as a sign that stock valuations are not yet at stress levels. The Dow Jones Industrial Average rose 112.73 points, or 0.54 percent, to 20,950.1, the S&P 500 gained 19.81 points, or 0.84 percent, to 2,385.26 and the Nasdaq Composite added 43.23 points, or 0.74 percent, to 5,900.05. U.S. retail sales recorded their smallest gain in six

months in February, setting U.S. gross domestic product on track to grow at a 0.8 percent annualized pace in the first quarter, according to the Atlanta Fed's latest forecast. Advancing issues outnumbered declining ones on the NYSE by a 6.84-to-1 ratio; on Nasdaq, a 2.28-to-1 ratio favored advancers. About 7.87 billion shares changed hands on U.S. exchanges, higher than the 6.98 billion daily average over the

last 20 sessions. The U.S. Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady

economic growth, strong job gains and confidence that inflation is rising to the central bank's target. The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent marked a convincing step in the Fed's effort to return monetary policy to a more normal footing. Fed Chair Janet Yellen pointed to growing faith in the economy's trajectory. "We have seen the

economy progress over the last several months in exactly the way we anticipated," Yellen said in a press conference following the end of a two-day policy meeting. "We have some confidence in the path the economy is on." The Fed also stuck to its outlook for two additional rate increases this year and three more in 2018. The central bank lifted rates once in 2016. Fed policymakers noted that inflation was

now "close" to the central bank's 2 percent target, and that business investment had "firmed somewhat" after months of weakness. However, they did not flag any plan to accelerate the pace of monetary tightening, with the policy-setting committee reiterating and Yellen emphasizing that future rate increases would be "gradual." At the current pace, rates would not return to a neutral level unt il the end of

2019. Rather, the Fed's statement said the inflation target was "symmetric," indicating that after a decade of below-target inflation it could tolerate a quicker pace of price rises. Labor groups have urged the Fed to raise rates as slowly as possible so hiring can continue and wage increases take hold. U.S. job gains have averaged 209,000 per month over the past three months, well above the 75,000 to 100,000

needed to keep up with growth in the working-age population. The jobless rate is 4.7 percent, at or near a level consistent with full employment. The Fed projected that the unemployment rate would fall to 4.5 percent this year and remain at that level through 2019. Yellen, who has consistently said that the Fed was better equipped to fight inflation than a fresh downturn or surge in joblessness, did not

rule out inflation edging above target. "This seemed like a good time to remind Americans that ... sometimes it (inflation) is going to be below 2 percent, sometimes it is going to above 2 percent," Yellen told reporters. "Two percent is not a ceiling." Fresh economic forecasts released with the statement were largely unchanged from those of the December policy meeting and gave little indication the Fed has a

clear view of how President Donald Trump's policies may impact the economy. "We have not discussed in detail potential policy changes that could be put into place and we have not tried to map out what our response would be," Yellen said. "We have plenty of time to see what happens." She added that she had held meetings with Treasury Secretary Steven Mnuchin, and met with Trump once since he took

office. The Fed's projections showed the economy growing 2.1 percent in 2017, unchanged from its December forecast. The median estimate of the long-run interest rate, where monetary policy would be judged as having a neutral effect on the economy, held steady at 3.0 percent. Core inflation was seen as slightly higher at 1.9 percent versus the previous 1.8 percent forecast. The rate increas e came amid a

broad improvement in the world economic outlook and a sense among Fed policymakers that the U.S. economy is close to the central bank's employment and inflation goals. According to the policy statement, the risks to the outlook remained "roughly balanced." Minneapolis Fed President Neel Kashkari was the only official to dissent in Wednesday's decision, saying he preferred to leave rates

unchanged.

U.S. oil prices rose more than 2 percent in early Asian trade on Wednesday, recovering from a three-month low after industry data

BAIPHIL Market Watch – 16 March 2017

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showed a surprise drawdown in U.S. crude stockpiles and Goldman Sachs put a positive spin on OPEC's compliance with output cuts. U.S. West Texas Intermediate crude was trading up 70 cents, or 1.5 percent, at $48.42 a barrel by 0036 GMT, having earlier risen more than $1 to $48.87. The rise came after the contract fell for a seventh session in a row on Tuesday, the longest losing streak since January 2016.

Brent futures were up 60 cents, or 1.2 percent, at $51.52, after settling down 43 cents at $50.92 on Tuesday, the lowest finish since November. U.S. crude stocks fell by 531,000 barrels last week, industry group the American Petroleum Institute said on Tuesday after settlement. That compared with analysts' expectations for an increase of 3.7 million barrels. If the draw is confirmed by government data on

Wednesday, it would be the first drawdown after nine consecutive builds. U.S. gasoline and distillate inventories drew more than expected, the data also showed. Oil tumbled on Tuesday after OPEC reported a rise in global crude stocks and a surprise output jump fr om its biggest member, Saudi Arabia, further pressuring prices that have erased nearly all of their gains since OPEC announced output cuts in

November. Secondary sources had said Saudi output fell in February to 9.797 million barrels per day (bpd), but Riyadh told OPEC it rose to 10.011 million bpd. In an effort to dispel market concerns, the Saudi energy ministry said the "difference between what the market observes as production, and the actual supply levels in any given month, is due to operational factors that are influenced by storage

adjustments and other month to month variables." Influential U.S. investment bank Goldman Sachs cast a positive light on the numbers, saying compliance with production cuts remains high despite the rise in stocks. Market rebalancing is still progressing and the bank expects demand for oil to finally exceed supply next quarter. OPEC's monthly report said oil stocks in industrialised nations rose in January

to 278 million barrels above the five-year average, with U.S. shale and other non-OPEC supply gaining.

The International Monetary Fund called on the Group of 20 major economies to work together to preserve the benefits of trade

and avoid protectionism, while also urging them to reduce external imbalances and halt policies that distort global trade. Under pressure from rising protectionist sentiment in many advanced economies, including the United States, the IMF said that inter national cooperation was needed to maintain trade as an engine of growth that has lifted millions out of poverty worldwide. In a "surveillance note"

outlining its view of prospects and risks to the global economy issued ahead of a G20 finance ministers meeting this week in Baden-Baden, Germany, the IMF appeared to try to balance stronger demands for fairer trade with its traditional calls for more globalization. It said those countries with trade and current account surpluses needed to work with deficit countries to reduce these imbalances. A strong commitment

to rules-oriented trading system was "vital" and protectionist measures as well as national policies that distort trade and investment. "Above all, we should collectively avoid self-inflicted injuries," IMF Managing Director Christine Lagarde said in an accompanying blog post. "This requires steering clear of policies that would seriously undermine trade, migration, capital flows, and the sharing of technologies across

borders. Such measures would hurt the productivity, incomes, and living standards of all citizens." New US Treasury Secretary Steven Mnuchin, who will make his G20 debut in Baden-Baden, will be "pushing hard" for US interests at the meeting, including for the group to reaffirm past commitments to avoid competitive currency devaluations, a senior Treasury official said on Monday. The T rump

administration has pledged to reduce US trade deficits with countries such as China, Germany and Mexico, and is looking to harness the G20 and other international institutions to help further those goals, administration officials have said. Despite the IMF's concern over reversions to nationalist economic policies, the IMF said that the global economic outlook was improving, thanks in part to an upturn in

global manufacturing and trade flows. Growth prospects have improved in Britain, Europe and Japan in recent months, while expectations for expansionary fiscal policy from the Trump administration, including tax cuts and infrastructure spending, were improving prospects in the United States. Recent indicators of business and consumer confidence and manufacturing have strengthened, the IMF said. The note

did not change the IMF's latest global growth forecasts issued in January of 3.4 percent for 2017 and 3.6 percent for 2018 compared to 3.1 percent last year. But the IMF's outlook assumes there is no major disruption in trade that could be brought about by protectionist policies. It also assumes that China's transition from an investment and export-driven economy to one driven by consumer demand continues

without a major downturn. But protectionism and China represent significant risks to the IMF's outlook, as does the potential for a much faster path of Federal Reserve interest rate hikes, which could prompt disruptive capital outflows from emerging markets. The IMF also reiterated its call for G20 countries to use available tools to boost demand and growth. But for countries that are nearing full capacity, such

as the United States and Germany, it said stimulative policies should be focused on improving productivity and expanding the workforce, such as investments high quality infrastructure, technology advancement, public education and child care.

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

A Closer Look at the Trust Rating System – 20 & 21 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

RA 10173: Data Privacy Act – Aligning Information Security Compliance to ISO 27001:2013 – 6 May 2017

Understanding Bank Regulations for Bank Products – 6 & 13 May 2017

Bank’s Taxation – Advanced – 20 May 2017

Counterfeit Detection – 29 May 2017

http://www.baiphil.org/wp-content/uploads/2017/03/CL-2017-012.pdf

For details, please contact BAIPHIL via telephone (853-4457/519-2433) or email [email protected].

BAIPHIL Market Watch – 16 March 2017

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MARCH 1-15

01 Alex C. Ongtenco - Northpoint Development Bank

06 Henry T. Pelaez - Bank of America

07 Marissa M. De Mesa - CARD Bank Inc

08 Ma. Bernadette T. Ratcliffe - EWB

09 Corazon T. Alcantara - RCBC Savings Bank

10 Anita F. Rapera - CARD SME BAnk

10 Rosa Maria G. Tumangday - Bank of Makati

11 Maria Elena M. Ruiz - Associate Life Member

13 Restituto C. Cruz - BSP

13 Arlene G. Chua Sy - Mega ICBC

15 Joseph T. Sulit - Sterling Bank of Asia

TARGET RATE - The interest rate charged by one depository institution on an overnight sale of

balances at the Federal Reserve to another depository institution, as determined by the Federal Open Market Committee (FOMC) of the Federal Reserve. The 12 members who comprise the Federal Open

Market Committee meet for eight regularly scheduled meetings per year. During these meetings, the FOMC reviews economic and financial conditions and determines the federal funds target rate. A decline in the target rate could stimulate economic growth; however, too much economic activity can

cause inflation pressures to build. A rise in the rate limits economic growth and helps control inflation pressures; however, too great an increase can stall economic growth. The FOMC seeks a target rate that will achieve the maximum rate of economic growth.

BAIPHIL Market Watch – 16 March 2017

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Why is an unknown contestant called a “dark horse”?

Sam Flynn, a travelling Tennessee horse trader, often found a horse race planned in the same town as an auction. So he mixed a coal black racing stallion named Dusky Pete in with his workhorses,

then quietly entered him in the local races and wagered heavily on Dusky Pete, who would invariably win. As word spread of Sam’s deception, so did the caution: “Beware the dark horse.”

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