BIZ BUZZ: Razon’s P2-trillion milestone

Enrique Razon Jr.’s port empire has reached another milestone—this time rewriting Philippine stock market history.

International Container Terminal Services Inc. (ICTSI) became the first listed company on the Philippine Stock Exchange (PSE) to end the trading day with a market capitalization exceeding P2 trillion, closing at P2.01 trillion on July 14.

The feat did not stop there. A day later, ICT’s value climbed further to P2.02 trillion after its shares finished at a record P999, having briefly touched P1,020 during the session.

The latest milestone came less than 10 months after ICTSI became the first local company to breach the P1-trillion market capitalization mark in September last year—a pace that even surprised market watchers.

“Doubling its market cap less than 10 months after breaching the P1-trillion market capitalization is nothing short of extraordinary. This performance speaks of confidence in the leadership of ICTSI Chair and President, Mr. Enrique K. Razon, Jr., and in the strategic direction of the company as it continues to expand its global port and logistics operations,” said PSE president and CEO, Ramon Monzon.

With a valuation now above P2 trillion, the port giant has widened the gap between itself and the rest of the market, reinforcing its status as one of the exchange’s biggest drivers of index performance. —Emmanuel John B. Abris

Thrift banks join fee-cut wave

Thrift banks are poised to follow the country’s biggest lenders in slashing digital transfer fees, betting that higher transaction volumes will make up for the hit to fee income.

Chamber of Thrift Banks chair Manuel Santiago Jr. said several member-banks have already begun matching the moves of universal and commercial banks, with more expected to fall in line soon.

The industry, he said, is taking the long view: Lower fees may trim revenues, but cheaper transfers should encourage customers to move money more often—ultimately boosting transaction volumes enough to cushion the impact.

“I think a number of our members have followed the lead of the universal banks,” Santiago said.

“And I think you will see sooner rather than later that most of our member banks are going to be waiving their fees,” he added.

If that bet pays off, thrift banks could find that making digital transfers cheaper is not just good for customers, it may also prove good for business. — Ian Nicolas P. Cigaral INQ