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Vietnam fostering ties with the Philippines amid rapprochement with China

In August 2018, President Duterte conveyed to his countrymen that he expected China would be fair on the South China Sea dispute and that they should accept Beijing as a good neighbor. He told his fellow Filipinos: “I am sure that in the end, China will be fair and the equity will be distributed.” He predicted that “in the days to come, we would realize that China…is really a good neighbor.”
His (misplaced) good faith on China reflects his administration’s appeasement policy on the Asian power. President Duterte’s foreign policy pronouncements and actions are directed at undoing former president Benigno Aquino III’s agenda of balancing China’s extensive claim in the South China Sea. He distances the Philippines from its long-standing treaty ally and gravitates toward an emergent regional power bent on effecting a territorial reconfiguration in Asia. His foreign policy is aimed at appeasing China in sharp contrast to his predecessor’s balancing strategy. This stance is taken to earn China goodwill so that the Philippines could avail itself of the enormous Chinese resources under the Belt and Road Initiative (BRI) to finance the country’s major infrastructure projects.
From his administration’s calculation, the Philippines will benefit from the BRI particularly in the revival of the maritime silk route, as it dovetails with its plan for a massive infrastructure buildup. Its present scheme of sustained and inclusive economic growth is predicated on an unprecedented infrastructure program that entails some P8.4 trillion ($17 billion) over the next five years. The Duterte administration is eyeing a reasonable portion of the estimated $1 trillion that China will invest in infrastructure projects in 60 countries to develop land and maritime routes following the old Silk Road network that once linked China to Central Asia and Europe. Given this prospective economic windfall, the current administration believes that its appeasement policy toward China is worth pursuing.
OFF-BALANCING VIETNAM
Vietnam has always maintained its traditional wariness of China and recently, it has been the most vocal among the Southeast Asian countries in expressing its apprehension over Chinese expansionist design on the South China Sea. This stemmed from its long experience of challenging China’s imperial foray into Southeast Asia for the last two thousand years. In 2010, the Philippines became Vietnam’s closest partner and supporter among the members of the Association of Southeast Asian Nations (ASEAN) in opposing China’s maritime expansion in the South China Sea. This is because of two reasons: unlike Vietnam, the Philippines has the strategic advantage of being a formal treaty ally of the United States, and it observed that two allies signed the Enhanced Defense Cooperation Agreement (EDCA) in 2014. The agreement provides for the temporary deployments of American forces in five Armed Forces of the Philippines (AFP) air bases all over the country. And second, the Philippines filed a claim against China in the Permanent Court of Arbitration (PCA) in the Hague challenging China’s “nine-dash line” claim in the South China Sea. Fortunately, for both the Philippines and Vietnam, the PCA ruled that China’s historic claim has no legal basis under the United Nations Convention on the Law of the Sea (UNCLOS).
The change in Philippine foreign policy under President Duterte was a major shock to Vietnam. First, President Duterte put aside the PCA ruling that invalidates China’s nine-dash line. Second, he distanced the Philippines away from the United States and in the process watered down the EDCA by shifting the alliance away from its focus on Chinese expansion in the South China Sea to counter-terrorism and Humanitarian Assistance and Risk Reduction (HADR). This was done with the expectation that the Philippines will be able to extract possible diplomatic concessions from China with regard to its territorial dispute and earn some economic largesse for its massive infrastructure projects.
President Duterte’s appeasement policy on China has off-balanced Vietnam’s efforts to challenge China’s expansion in the South China Sea. This became apparent during the 30th ASEAN Summit in Manila under the chairmanship of the Philippines. Vietnam fought tooth and nail to have the terms “concerns expressed by some ministers” on land reclamation and militarization in the South China Sea included in the chairman’s communique. Unfortunately, Vietnam failed to have the communique mention the need for a “legally binding” code of conduct in the disputed waters to put a stop to “unilateral actions.” Vietnam was also disappointed that there was no mention of the PCA ruling, and that the phase “serious concern” regarding the territorial dispute in the South China was conspicuously removed after it appeared in several ASEAN statements before 2017. Vietnam was suddenly confronted with the stark reality that the Philippines has joined Cambodia and Laos as China’s trusted and loyal lackeys in Southeast Asia.
FOSTERING VIETNAM-PHILIPPINE RELATIONS
Despite its disappointment with the Duterte administration’s appeasement policy on China, Vietnam has continued to foster closer relations with the Philippines. In October, on the sidelines of the ASEAN Leaders Gathering in Bali Indonesia, Vietnamese Prime Minister Nguyen Xuan Phuc met President Duterte to discuss the Vietnam-Philippines action plan for 2018-2023 in order to facilitate the two countries’ bilateral cooperation. The two ASEAN leaders also agreed to intensify their affiliation within ASEAN and affirmed the importance of maintaining regional peace, stability, freedom of aviation and navigation in the East Sea/West Philippines Sea. They also agreed to resolve territorial disputes peacefully according to international law including the 1982 UNCLOS and reiterated their support for the full and effective implementation of the Declaration on the Code of Conduct of Parties in the South China Sea (DOC), and the early completion of an effective, practical and legally binding Code of Conduct in the South China Sea (COC).
Vietnam also proposed to the Philippines the need to delineate their maritime boundaries in the disputed South China Sea. Efforts by the two countries to define their maritime boundaries will have a significant implication in the South China Sea dispute because this means that the smaller claimant states can settle their overlapping claims, while China has not clearly defined its expansive and sweeping claims in the disputed waters. Unfortunately, showing sensitivity to China’s interests, the Philippines turned down the Vietnamese proposal by stating that it will take a longer time to establish its own continental shelf limits. Nevertheless, the bilateral meeting between Prime Minister Phuc and President Duterte last October showed that Vietnam still considers the Philippines a close partner, and it is still willing to advance the strategic partnership between the two Southeast Asian countries despite the Philippine-China rapprochement.
 
Renato Cruz De Castro is a professor of International Studies at DLSU and trustee of Stratbase-ADR Institute.

The press — enemy of the people or of politicians?

The spectacle of President Donald Trump berating and insulting members of media at a press conference he held after the US mid-term elections was so reminiscent of a similar emasculation of a journalist by President Rodrigo Duterte several months ago.
More than any other leader of the “free” world, Trump has treated the press the way dictators and heads of authoritarian regimes regard it — as the enemy, to be roughed up, insulted and thrown in jail. Doubtless, Trump salivates at the thought, the way he must be obsessed with getting rid of Special Counsel Bob Mueller, if only he could get away with it.
Duterte must feel the same way about journalists, as do many Philippine politicians and public officials. On the other hand, they also regard the media as assets that can be harnessed for punitive or image-building purposes.
In this regard, the concept of a “free press” is turned upside down. Thus have been coined such terms as, envelopmental journalism, ATM journalism, AC-DC or attack-collect-defend-collect, and suppress relations. And, oh yes, a downright vulgar term but one that predates the others: masturbating the news.
But such are the dynamics of power. Those who wield it, use it or allow themselves to be used. And yet, as Melinda Quintos de Jesus wrote in an article entitled, “Philippines: How media corruption nourishes old systems of bias and control”:
“…journalism continues to yield some quality, retaining the power to expose corruption. Reports contributed to the firing of corrupt officials, forced government agencies to investigate cases, and even brought about the impeachment of a President (2000) and a Chief Justice of the Supreme Court (2011).”
In this regard, I take special pride in being associated with BusinessWorld, having written a column for the paper for 30 years — nearly as long as it has been in print. Its founders and editors, Raul Locsin and Letty Martillo Locsin, were paragons of journalistic integrity.
During the incumbency of President Joseph “Erap” Estrada, someone leaked a white paper listing members of the media who were in the payroll of Malacañang. Virtually every prominent editor, columnist, publisher and broadcast commentator in the country was in that list — but not one single individual associated with BusinessWorld.
This is not to say that the Malacañang list was accurate. It could have been intended to besmirch the reputation of the incorruptibles in media (by including them among the corruptibles). But the fact that such a roster existed says something about the vulnerability of those who are supposed to be pillars of press freedom, of balanced reporting, and of the truth.
In an online piece entitled, “The problems that Filipino journalists face,” Edson Tandoc, Jr. reported the findings in a survey that “journalists in the Philippines are most concerned about low pay, media violence, information access, and professionalism. Younger journalists tend to identify low pay as the most important problem, while the problem of violence against journalists was more salient for reporters than for editors and managers.”
Considering the high cost of living, the pressures of upward lifestyle strivings, and the temptations on every side, is it any surprise that so many otherwise idealistic young journalists succumb?
In the US, under the administration of Trump, the plague of media men on the take is not the main problem that has to be dealt with. It is the direct accusation being hurled by Trump at anyone who criticizes him as purveyors of “fake news” and as “enemies of the people.”
The irony is that Trump IS the main source of fake news in both mainstream and social media. According to pundits, Trump is the personification of The Lying King. But that doesn’t stop his ardent supporters from taking his accusations to heart and, in some cases, going out of their way to fight the perceived enemies.
The hate-mongering of Trump has been fanning the embers of racism and political divisiveness in the country. This is what appears to have motivated the mass mailing of pipe bombs to Trump critics and CNN by a Trump loyalist, a fellow named Cesar Sayoc (who turned out to be half Pinoy).
While the Philippines has been routinely described as the second most dangerous country for journalists (next only to Iran), the US may have become as perilous for members of media, such as those working for CNN, in Republican-dominated states.
Being a journalist is not easy. Even in such non-controversial countries as Singapore and Malaysia, journalists are not always free to write about the unflattering truth. My first cousin, Leah Makabenta, was ejected from Malaysia by the government after she wrote an expose about “the slave conditions” of migrant workers in the country.
Prominent members of the press were among the very first to be arrested and incarcerated following the declaration of martial law by President Ferdinand Marcos in September 1972. Many of those who managed to avoid arrest sought asylum in the United States. In order to make a living, they turned to what they could do best, thus initiating the resurgence of community journalism in Filipino enclaves like California and New York.
But the long arm of the Marcos regime easily reached across the ocean and made propaganda assets out of many who had reestablished themselves as editors or publishers. For them, it was so much easier to succumb to financial enticements than to risk life and limb in the practice of their profession. As one former Manila media man put it, “I had to survive in America and others were on the take…so, what the hell. I decided to join the crowd.”
But there were those who prized their integrity more than the money. The late Alex Esclamado was one of them.
Esclamado was editor and publisher of Philippine News, a weekly newspaper based in the San Francisco Bay Area. The paper was a thorn in the butt of the Marcos regime, relentlessly exposing human rights abuses to American readers. This was particularly irritating for Marcos who wanted to build up the image of his government with the administration of President Ronald Reagan.
When threats failed to stop Esclamado’s attacks, an offer of $12 million was made to buy him out. Esclamado rejected the fortune. To bring him down to his knees, the Marcos government threatened the advertisers of the publication. They pulled out.
Starved of his main source of revenues, Esclamado was forced to sell his building and to borrow from every available source, while sustaining his blistering criticism of the dictatorship.
Remarkably, Esclamado never missed a single issue of his newspaper. He also outlasted martial law and Marcos. For his efforts, he was conferred the Legion of Honor by President Corazon Aquino.
But Esclamado never recovered financially and was eventually forced to sell his beloved publication some years after the political hostilities had subsided.
Indeed, as some worldly-wise media folks will attest, it is so much safer and more profitable to be on the good side of the people in power.
But, both in America and in the Philippines, there are still many idealistic and dedicated media professionals who prefer to trudge on, despite low pay and threats of physical harm, reporting the news as they actually happen. And there are still many self-respecting columnists who express their opinions based on their principled perception of right and wrong.
For them, the prospect of violence and the economic disadvantages are just among the hazards of the trade, like covering a war zone or a super typhoon.
Contrary to what Trump says, they are not the enemy of the people. But they are the enemy, all right. They are the enemy of sleazy, barefaced lying presidents and vulgar, corrupt and murderous politicians.
 
Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.
gregmacabenta@hotmail.com

Accelerating the uptake of renewable energy through the Green Energy Option Program

By Marlon Apanada
AFFORDABLE ENERGY is a precursor to economic growth, which is of particular importance given our country’s current situation: we are facing energy supply challenges while paying for high electricity prices.
Unfortunately, as it stands today, the country is still planning to heavily rely on coal power plants to fill the gap in power supply. According to the Department of Energy (DoE), a whopping 70% of the 5,000 megawatts (MW) of new power plants being built between now and 2020 are coal-based.
Locking our country into coal-based electricity will create heavy baggage for the Philippines, chiefly the price of imported fuel and negative environmental impacts. Earlier this year, a local company offered solar power to Meralco at P2.99 per kilowatt hour (kWh), lower than any fossil-based power, while a geothermal generation bid stood at P3.91 per kWh. In comparison, coal-fired generation costs upwards of P3.80 to 6.53 per kWh, and the true cost of imported diesel-fired power ranges from P15 to P28 per kWh. Why opt for imported fossil fuels that are expensive, and will become even more so?
Facing the situation of fossil fuel dominance in the country’s power mix, how can we instead increase the uptake of renewable energy (RE), a key ingredient to the Philippines having a financially stable, climate-friendly and indigenously fueled power system?
The answer is to empower electricity users — us, the general public, along with larger commercial and industrial users of electricity — to demand the type of electricity that we want: affordable and homegrown, which happens to also be renewable and clean. This is where the national Green Energy Option Program (GEOP) comes in. After a decade of remaining unimplemented, the DoE finally released the GEOP rules in mid-July this year.
The GEOP aims to encourage electricity customers to choose renewables-based electricity sources, whether from solar, wind, hydro, biomass or geothermal, effectively empowering consumers to exercise their right to demand and use green energy.
Thanks to this program, electricity customers are no longer held captive by their local distribution utilities or electric cooperatives. Instead, many electricity end-users, even if they aren’t large “contestable customers,” are now allowed to directly purchase their electricity from a supplier that sells green power. In addition, the GEOP now enables green power generators and suppliers to have a wider set of customers, not only the very large “contestable customers” as was the case without the GEOP. This should in turn stimulate demand and investment of renewable power sources.
However, the GEOP in its current form has a number of gaping holes that the DoE, government regulators, and industry stakeholders should find solutions to.
First, the program does have a strong focus on wheeling green power across the grid, but it provides little direction of how onsite generation of green power can also play a role. It is also rather silent on the role of third-party investors in onsite RE generation.
Rooftop solar systems, localized biogas electricity plants, and other forms of onsite RE generation are an important component of well-built and well-operated electricity systems. They can help to alleviate electricity demand from the main distribution network and increase a grid’s reliability and resilience, all while generating cost-effective green electricity at the site of consumption. The GEOP should facilitate in unlocking their potential, but only if rules in onsite generation are made clearer.
Second, the GEOP lacks important details regarding the participation of smaller electricity customers with a demand below 100 kilowatts. While the program currently provides clear details for the participation of larger commercial and industrial electricity users, much is left to the imagination for small businesses and households. The language of the GEOP needs to be clear enough to ensure that intention can become reality without being mired in bureaucracy resulting from a lack of clarity at the beginning.
Third, the GEOP dictates that renewable energy certificates (RECs) generated from green power projects are kept by the distribution utilities, rather than assigning them to the owners of the green power generation assets — which would have further incentivized investors to structure deals and explore innovative business sub-models. This is of interest to the general public, who may want to invest into green power generation assets themselves. RECs are a new tradeable instrument, essentially a certificate issued by the government to recognize the generation of energy from RE sources; one REC is equivalent to one megawatt-hour.
Lastly, other important details of GEOP continue to be undefined, including clear structures for green power wheeling charges and other add-on costs. Without such details clearly delineated from the beginning, the uncertainty of these extra costs may make green energy more expensive in the future — which is not in the interest of electricity consumers nor the green power suppliers and generators.
The GEOP’s vision of truly empowering electricity consumers to choose and use green power can only be delivered if these outstanding questions are adequately and comprehensively addressed.
Much is at stake: if implemented well, the GEOP could usher in a new business-as-usual scenario — one that no longer leans on fossil fuels, but instead makes renewable, green power the default choice because it is the option that makes economic, environmental, and practical sense.
 
Marlon Apanada is managing director for the Philippines of Allotrope Partners, a California-headquartered clean energy investment and advisory firm. He completed a course on Sustainable Finance at the University of Oxford’s Smith School of Enterprise and the Environment and is a Green Finance Specialist certified by the Renewables Academy Berlin.

Balangiga bells to ‘begin journey home’

By Arjay L. Balinbin, Reporter
THE BALANGIGA BELLS, taken as war booty in 1901 by members of the US Army during the Philippine-American War, are set to begin their journey home.
In a Facebook post on Monday, historian Rolando O. Borrinaga of the Committee on Historical Research of National Commission for Culture and the Arts (NCCA) said: “Update on the Balangiga from a campaigner: The Balangiga Bells team in the U.S. are going to Cheyenne, Wyoming to join up with Secretary of Defense James Mattis for a ceremony at the F.E. Warren AFB on Wednesday, the 14th (Nov. 15 in the Philippines).”
He added that “[t]his will mark the beginning of the journey of the two Wyoming bells back to the church from which they were taken (in Balangiga, Eastern Samar).”
The Balangiga bells, he said, “will now be able to begin their journey home.”
“The third Balangiga bell at a U.S. Army museum in South Korea had been crated weeks ago and is also ready for shipment home. The latest successful campaign for the return of the Bells of Balangiga was largely a veterans-to-veterans effort. So many in the U.S. veterans community have let their voices be known and lent their support — including National Resolutions of support from both the Veterans of Foreign Wars (VFW) and the American Legion. The bells will first be refurbished and then shipped, so the precise date for their arrival and details of the subsequent ceremonies in the Philippines are still to be ascertained,” Mr. Borrinaga said.
For his part, Presidential Spokesperson Salvador S. Panelo said: “We welcome any movement towards the return of the Bells of Balangiga to the Philippines.”
“Given that the possession of the bells has not yet been turned over to the Philippine government, we are withholding any further comment on the matter until the last bell has been properly delivered to the country,” he added.
Mr. Panelo also stressed that in the words of President Rodrigo R. Duterte himself: “It ain’t here until it’s here.”
Sought for comment, University of the Philippines (UP)-Diliman law professor Antonio G.M. La Viña said in a phone interview that the return of these bells is a “symbolic” assertion of the country’s sovereignty.
“He has always been asking for those bells back. I think it’s good that Mr. Duterte repeated that demand, and it’s good that it’s happening during his time,” he also said.
To recall, it was during his SONA last year when Mr. Duterte first demanded that the US government should return the Balangiga Bells to the Philippines. “Give us back those Balangiga bells. They are ours. They belong to the Philippines. They are part of our national heritage. Isauli naman ninyo (Return them to us). Masakit iyon sa amin (This is painful for us),” the President said.

DoJ to ‘go by evidence’ on Sagay probe

JUSTICE Secretary Menardo I. Guevarra said the prosecution will go by the evidence that will be found by the National Bureau of Investigation (NBI) in its investigation into the Oct. 20 Sagay massacre of nine sugar farm workers and the killing of a lawyer in Nov 6. “The NBI investigation is still ongoing and we’ll go by what the evidence will show,” he told reporters in a text message, when sought for comment on a statement by the National Federation of Sugar Workers (NFSW) questioning the NBI probe. “Would the DoJ then include the NFSW in the proscription list if the NBI tags the NPA as the perpetrators of the Sagay massacre or even Atty. Ben Ramos, who was red tagged April this year when his picture together with others were put in a tarpaulin together with NPA rebels in the Municipality of Moises Padilla,” NFSW asked. — Vann Marlo M. Villegas

DENR to act on garbage shipped from South Korea

THE Department of Environment and Natural Resources (DENR) said on Tuesday that appropriate action will be taken once a report on garbage shipped from South Korea to the Philippines is released, possibly this week. Some 5,100 tons of garbage containing used dextrose tubes, diapers, batteries, bulbs and electronic equipment arrived at the Mindanao Container Terminal (MCT) in Misamis Oriental on July 21, carried by MV Affluent Ocean. According to Environment Undersecretary Benny D. Antiporda, the agency will recommend the return of the garbage and the filing of administrative and criminal charges against those involved in the shipment are found to contain hazardous materials. The DENR’s Environmental Management Bureau (EMB) verified that the shipment was not covered by any importation clearance as issued by the DENR. The DENR also said the consignee, Verde Soko II Industrial Corp, is not a registered importer of recyclable materials. Verde Soko is a South Korean company which operates a 4.5 hectare waste recycling facility at Phividec Industrial Estate in Tagoloan town. — Reicelene Joy N. Ignacio

US Army Pacific Commander in Manila

GENERAL Robert Brown, Commander of the US Army Pacific, visited the Philippines from November 10 to 13. His activities while in Manila included speaking at the National Defense College of the Philippines and meeting with Armed Forces of the Philippines Chief of Staff Gen. Carlito Galvez, Commanding General of the Philippine Army Lt. Gen. Macairog Alberto, and Defense Undersecretary Cardozo Luna.

Toll rate adjustment at MCX filed

THE Toll Regulatory Board (TRB) said toll road operator Ayala Corp. petitioned for a periodic toll rate adjustment at the Muntinlupa-Cavite Expressway (MCX) as provisional relief provided in its concession agreement with the government. In a bulletin published in a newspaper on Tuesday, the TRB said Ayala Corp. sought for an adjustment in toll rate from P17 to P18.51 for Class 1 vehicles, from P34 to P37.62 for Class 2 and from P51 to P56.43 for Class 3. Users of the MCX are now invited to file a petition against the toll increase within 30 days from Nov. 13, which the TRB will review before issuing final decision on the concessionaire’s petition. — Denise A. Valdez

QC police denies seizing Ladlad’s ATM card

The Quezon City Police District denied the allegation of the wife of former National Democratic Front of the Philippines consultant Vicente Ladlad that police confiscated her husband’s automated teller machine (ATM) card when he was arrested last week. “We would like to reiterate that the Automated Teller Machine (ATM) card of Communist Party of the Philippines Central Committee Member and Head of its National United Front Commission, Vicente Ladlad, was not among the confiscated items during the implementation of a Search Warrant for violation of Republic Act 10591, or the Comprehensive Law on Firearms and Ammunition last November 8, 2018 in Novaliches, Quezon City,” said Quezon City Police Director Chief Superintendent Joselito T. Esquivel in a statement on Monday. Last week, Mr. Ladlad’s wife Fides Lim posted in her Facebook page that the police should investigate the attempts to steal from her husband’s bank account. “While the arrest operation for Imelda Marcos following her graft conviction and for the killers of human rights lawyer Benjamin Ramos and the Sagay 9 deserves utmost priority, I request the concerned authorities to immediately investigate the repeated attempts to STEAL the deposit in my husband Vic Ladlad’s LANDBANK Visa Debit Card, which comprises part of his human rights compensation as a political prisoner during the corrupt, brutal Marcos regime where Imelda reigned as queenpin,” said Ms. Lim in her Facebook post last Friday, Nov. 9. — Vince Angelo C. Ferreras

Peso strengthens anew

peso remittance
THE PESO climbed ahead of the Bangko Sentral ng Pilipinas’ review. — PHILSTAR/KRIZ JOHN ROSALES

THE PESO strengthened against the dollar on Tuesday as traders position ahead of the Bangko Sentral ng Pilipinas’ (BSP) rate-setting meeting on Thursday and amid growing external uncertainties.
The local currency closed at P53.1 versus the greenback yesterday, gaining 19 and a half centavos from the P53.295-per-dollar close on Monday.
The peso opened slightly stronger at P53.28 before peaking at P53.08. Its intraday trough, on the other hand, was at P53.30 versus the dollar.
Dollars traded grew to $738.7 million from $666.1 million on Monday.
A trader said there’s still uncertainty on whether the local central bank will continue to hike or hold interest rates.
“There’s a BSP rate decision on Thursday so the market is looking for that. So they’re trimming their position ahead of that. They’re looking that the BSP will hike, but they may follow the Fed[eral Reserve] so it can hold for now,” a trader said in a phone interview yesterday.
“If they hike rates, the dollar-peso may go down further so they’re still seeing the peso positive. But they are lightening their position as the BSP may still hike,” the trader said.
A BusinessWorld poll showed six of 11 economists expecting to hold interest rates, while the other five expect the BSP to hike rates by at least 25 basis points. The central bank has raised the policy rates by a cumulative 150 basis points since May.
The trader added that uncertainties surrounding the exit of the UK from the European Union supported the peso’s strengthening as markets are on a wait-and-see mode.
A second trader said in an email on Tuesday that the US-China trade conflict weighed on the dollar.
“The peso slightly gained strength as the greenback slightly weakened following risk-on sentiment in view of the resumption of US-China trade discussions which might ease friction caused by the trade war escalation.”
The trader added that the peso might weaken ahead of strong US inflation data. “Exchange rates are likely to move between P53.00 and P53.20 range.” — E.J.C. Tubayan

Shares slump as Wall Street dampens sentiment

LOCAL SHARES fell on Tuesday as investors were dampened by the decline in US markets.
The bellwether Philippine Stock Exchange Index (PSEi)declined 1.18% or 82.37 points to 6,843.83. The broader all-shares index fell 0.98% or 41.84 points to 4,211.13.
“It has been a bad day across the Philippines board despite a US holiday with the US stocks falling over 2%, led by technology sector as Apple tumbled on signs of weak iPhone demand,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message on Tuesday. “Investors were also digesting developments in the oil market and parsed the effects of a rising US dollar, reaching its highest level in 16 months.”
In a mobile message, Timson Securities, Inc. trader Jervin S. de Celis said Saudi’s announcement to curb its oil output may have also triggered the sell-off seen across Asian markets as “the oil exporting country tries to pump prices after the commodity asset has entered the bear market probably due to low demand as the effect of trade war starts to bite other economies.”
Back home, all sub-indices were down. Holding firms plunged 1.62% or 111.34 points to 6,737.03; property slumped 1.22% or 41.62 points to 3,356.96; financials dropped 1.19% or 18.63 points to 1,544.88; mining and oil slid 0.98% or 89.89 points to 9,073.08; industrials went down 0.63% or 66.25 points to 10,397.67; and services edged down 0.39% or 5.38 points to 1,371.55.
Value turnover totaled P8.17 billion on Tuesday as 2.95 billion shares switched hands, climbing from Monday’s P6.64 billion.
Losers outnumbered advancers, 155 to 55, with 36 names unchanged.
Foreigners continued to dump shares, with net outflows totaling P1.26 billion yesterday, double Monday’s P608.95-million net sales.
Most Southeast Asian stock markets also slipped on Tuesday, tracking losses in broader Asian peers, after a rout in US tech stocks and slump in oil prices led to a sell-off on the Wall Street.
Political risks in Europe and the ongoing trade conflict between China and the United States prompted investors to unload risk-sensitive assets.
Major US stock indexes dropped more than 1% overnight, with tech-heavy Nasdaq slumping over 2%.
Weighed by a cocktail of negative factors, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.7% to a 1-1/2-week trough.
Singapore stocks were poised for a third straight session of losses, as financials weighed on the benchmark.
Malaysian shares were set to extend losses, with IOI Corp. Bhd hitting a nearly 10-month low. The country’s second-largest palm oil company, IOI Corp., reported a quarterly net profit of 143.8 million ringgit compared with 360 million ringgit in the previous year.
Thai shares traded 0.2% lower, dragged by losses in real estate and financial stocks.
Bucking the trend, Indonesian shares recovered from previous session’s losses, driven by gains in consumer staples and energy stocks. — with Reuters

Cement firm to lay off workers

APO Cement Corporation said that it is now forced to lay-off about 30% of its employees and terminate 40% of its contractors after the shutdown of its principal raw material supplier Apo Land & Quarry Corporation (ALQC) by the Department of Environment and Natural Resources, following a landslide in Naga, Cebu last September. In a statement, the company said it has filed a formal notice with the Department of Labor and Employment (DOLE). “APO Cement has been in Cebu for nearly a century already, we have fostered our solidarity and malasakit to our communities for several decades now, but these are extremely challenging times and we need to make these hard decisions,” APO Cement spokesperson Chito S. Maniago said in the statement. — Reicelene Joy N. Ignacio

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