LITO GAGNI

Minority shareholders are raising a howl of protest over the thrust of the Philippine Stock Exchange (PSE) that punishes them for the tender offer on shares of Holcim and which brings to mind the PSE’s own move on that of Abra Mining, which were both suspended.

In the holcim and that of Abra Mining’s suspension, the small stockholders are to suffer, the former for being slapped the capital gains tax plus documentary stamp tax and the hassle of signing so many documents and awaiting for some time to get the proceeds, and the latter for the PSe s refusal to just punish the Abra Mining officials who sold the unlisted, unregistered shares.

There is a sense of rage about the suspensions leveled against that of holcim since letting the share be listed while the tender offer is in process would have resulted in easier navigation for the minority shareholders, many of whom have bought the stock for its dividends. Now, there is a capital gains tax awaiting them, defeating the very purpose why a stock exchange entices companies to list.

And in the case of the suspension of Abra Mining, the PSe could just have ousted the officials who sold the unregistered and unlisted stock since the exchange has the data on that and let the stock continue to be traded. In the meantime, the PSe could just bring court suits against the erring Abra Mining officials who can be easily identified.

Or perhaps the PSe could just have proceeded with the brilliant and innovative take of PSe President and CeO Ramon Monzon to have a “white knight” to save the Abra Mining suspension. We have not yet heard from the veterans of the exchange, the feisty Ms. Vivian Yuchengco or Wilson Sy or eddie Gobing or even hear of the whisper from former finance chief Jose Pardo on what happened to the out-of-the-box thinking of Mr. Monzon.

And again in this holcim suspension that caught all small stockholders by surprise, the directors of PSe have not yet come to the rescue of the minority shareholders. Is it any wonder why our market can churn out, on the average, about $100 million worth of trades, while Vietnam and Thailand as well as Singapore have trades of $2 billion and more a day? And to think that the Manila Stock exchange was the first stock

Rojas

continued from A10 intricate textures, and abstract shapes serve as conduits to transport viewers to the same magical places that sparked the artist’s imagination. In these trying times, where the world may sometimes feel dis-

to inspire before you expire’

Siegfred Bueno Mison, Esq.

The Patriot

IN one of the funeral masses for the late Dr. James Dy (who died on July 29), the officiating priest delivered a simple message— “Aspire to inspire before you expire.” Judging from the extent of the wreath flower bouquets that beautified and aromatized the wake, the priest said that James Dy exemplified such message to the point of being showered with scented blessings and testimonies from people whose lives he touched and inspired.

exchange in Asean.

The suspension of holcim has many sticky points, like how the capital gains tax can be computed. Will the P5.33 price point be ranged against the par value of the stock? In the case of the suspension of Abra Mining, will the supposed sellers of the unlisted and unregistered shares continue to get off scot-free while the minority shareholders are again in a quandary, with their investments in a suspended state of animation?

To the mind of Merkado Barkada, the best market newsletter so far, there are questions for the PSe that come to mind: “Do you want to make investing easy and safe for the general public, or do you want to make things needlessly complicated and frightening to people who are only trying to better their family’s financial standing in this crazy life?”

“What interest does the PSe have here in making it harder for minority shareholders to exit their positions?” connected and distant, Res Ipsa Loquitur: The Lines That Define Me opens its arms to viewers, welcoming them into the depth, richness, and vitality of Joy Rojas’ artistic universe. With its blend of abstraction, historical references, and joyful spirit, this exhibition serves as a timely reminder of the transformative power of art.

I get that the PSe might feel a little spurned by the company’s decision to leave the exchange, but this petty “will they/won’t they” issue seems calibrated only to grief hLCM’s ownership. hLCM’s minority shareholders are caught in the middle of this passive-aggressive standoff. Judging by the e-mails that I’ve received, there are people in a full-blown panic about what to do in this situation, and that’s on the PSe So there. The PSe seems uninterested in the plight of the minority shareholders who now have to wait for the turn of events in the holcim tender offer drama. Perhaps, PSe Director Jose Arnulfo Veloso can shed light on the issue unless he himself comes under fire for the delay in the listing of PNB holdings, which he managed to craft while he was the head of the Philippine National Bank.

Most Filipinos will remember Dr. James Dy as the champion of the Original Pilipino Music (OPM) movement. Some will likely identify Dr. James Dy with Chinese General hospital and Medical Center. But if there’s one word I can associate my Ninong James with, it would be “giving.” he was simply generous with his time, talent, and treasure! he tirelessly looked for opportunities to share whatever he can, especially with the Filipino-Chinese community, thus was bestowed with the titles of chairman emeritus of the Filipino-Chinese General Chamber of Commerce, Inc. and president emeritus of the World Lee Family Association. From humble beginnings, he truly imbibed the message, “aspire to inspire before you expire.”

I can say the same thing with Dave Mercado Sr. (who died on June 30) who steered the Stronghold Insurance Group of Companies from obscurity to prominence while devoting much time to help others.

In a message commemorating his death, the beloved company that Dave Mercado built, said, “What you left behind is not what is engraved in stone monuments, but what is woven into the lives of others.” During his lifetime, Dave Mercado unselfishly served, saved and secured the “lives, assets and businesses” of millions of Filipinos, either through his insurance companies or personally from his own pocket. Like Dr. James Dy, Dave Mercado was naturally a generous man.

Another set of principled men who inspired others and passed within months from each other this year were Ramon Farolan (died May 31), Salvador Mison (died July 19), and Guillermo Parayno Jr. (died August 2). Farolan, Mison, and Parayno previously led the Bureau of Customs in their capacities as Com- missioner (under Marcos Sr., Cory Aquino, and Ramos, respectively); all served the Armed Forces of the Philippines (AFP-Air Force, Army, and Navy, respectively), and all were products of the Philippine Military Academy (PMA 1956, 1955, 1970, respectively). They all fearlessly and unselfishly led anti-corruption crusades during their terms. In death, they will all be remembered as those former Customs commissioners who lived to “aspire to inspire before you expire.”

A useful gauge to know whether one has inspired others is not the numbers of accomplishments, achievements, and accolades, but the number of lives one has touched. In this regard, the best indicator of the extent of touching peoples’ lives is the amount of love given (“love meter”) to others, to country, and to God. Dr. James Dy, Mr. Dave Mercado Sr., and former Customs Commissioners Farolan, Mison, and Parayno certainly demonstrated love to the Filipino people by simply putting others above self, by helping others although they didn’t have to, by daring to do things differently to make them better while they can.

In the Bible, 1 John 4:7-8 taught us “to love one another, for love comes from God. everyone who loves has been born of God and knows God. Whoever does not love does not know God, because God is love.” There must be something special about love, not only in the biblical sense, but also in the constitutional sense, as the Preamble in the 1987 Constitution, for the very first time, introduced the

Reaction to the 2023 State of the Nation Address on the GDP growth rate

By Dr. Guido David

IN President Ferdinand Romualdez Marcos’ State of the Nation Address (SONA) on July 24, 2023, he asserted (to enthusiastic applause) that: “While the global prospects were bleak, our economy posted a 7.6 percent growth in 2022—our highest growth rate in 46 years. For the first quarter of this year, our growth has registered at 6.4 percent. It remains within our target of 6 percent to 7 percent for 2023. We are still considered to be among the fastest-growing economies in the Asian region and in the world. It is a testament to our strong macroeconomic fundamentals.”

Data from the Philippine Statistics Authority (PSA) published May 11, 2023 do show a first quarter 2023 growth rate in the gross domestic product of 6.4 percent (i.e. compared to 1st quarter of 2022). h i storical data showed that the country had positive growth rates up until the fourth quarter of 2019. The Covid-19 pandemic caused an economic downturn with negative GDP growth rates from the 1st quarter of 2020 until the 1st quarter of 2021. The country started to recover by the 2nd quarter of 2021, with each quarter posting a growth rate above 7 percent up until the last quarter of 2022.

When using GDP based on current prices, the 2023 1st quarter growth rate was higher at 13.7 percent. The president also noted that the GDP growth rate is within the government’s target of between 6 percent and 7 percent.

Calculating the growth rates of GDP is very useful in terms of trends and forecasts. One might ask if the current GDP has already surpassed pre-pandemic levels. The Covid-19 pandemic caused the real GDP to decrease in 2020, from P19.37 trillion down to P17.54 trillion. While the GDP started to recover in 2021, at P18.54 trillion, it was still below the 2019 level. however, by 2022, the annual GDP had increased to P19.94 trillion, the highest GDP in the Philippines to date, and higher than the 2019 figure by 3 percent.

In other words, the economy has already recovered from the effects of the pandemic and is now on pace for new highs. At current prices, the 2022 GDP is equivalent to P22.02 trillion.

The 2022 GDP can be broken down as follows: 8.9 percent from Ag- riculture, Forestry and Fishing, 29.7 percent from Industry, and 61.4 percent from Services. Comparing real GDP from 2021 to 2022, the Services sector had the biggest increase of 9.2 percent, while Industry increased by 6.5 percent. On the other hand, Agriculture had only a 0.5 percent increase. Within the Services sector, Accommodation and Food Services Activities had the largest increase at 32 percent compared to 2022, as restaurants and hotels recovered from the Covid-19 pandemic. This was followed by Other Services with

The Covid-19 pandemic caused the real GDP to decrease in 2020, from P19.37 trillion down to P17.54 trillion. While the GDP started to recover in 2021, at P18.54 trillion, it was still below the 2019 level. However, by 2022, the annual GDP had increased to P19.94 trillion, the highest GDP in the Philippines to date, and higher than the 2019 figure by 3 percent. In other words, the economy has already recovered from the effects of the pandemic and is now on pace for new highs.

At current prices, the 2022 GDP is equivalent to P22.02 trillion.