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Philippine stocks end week in the red

By Arra B. Francia, Reporter

LOCAL stocks closed the week in the red, as the lack of catalysts failed to sustain the market’s early day gains.

The Philippine Stock Exchange index (PSEi) edged lower by 0.11% or 9.34 points to finish at 8,372.51 on Friday, while the all-shares index also dropped 0.25% or 12.69 points to 5,052.79.

“Philippine markets still finished in the red as the broader market lacked a stronger catalyst today. Other news kept the market flat to down,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

In contrast, international markets were mostly up, amid United States President Donald J. Trump’s signing of new tariff regulations, imposing 25% tariffs on steel and 10% on aluminum, with the exception of Canada and Mexico.

Hopes for better relations between the US and North Korea also propped up investor sentiment, after Mr. Trump said he was prepared to meet North Korea’s Kim Jong Un in what would be first face-to-face meeting between the two countries’ leaders.

With this, the Dow Jones Industrial Average gained 0.38% or 93.85 points to 24,895.21; the S&P 500 index rose 0.45% or 12.17 points to 2,738.97, and the Nasdaq Composite index was up 0.42% or 31.3 points to 7,427.95.

Most Asian indices tracked the performance of US markets, closing the week in positive territory.

Two sectoral indices managed to post gains at the PSE, as property climbed 0.72% or 26.84 points to 3,774.07, while industrial added 0.27% or 30.50 points to 11,473.02.

Services led the day’s losers, giving up 0.39% or 6.92 points to close at 1,755.36. Financials followed with a decrease of 0.26% or 5.65 points to 2,180.75. Holding firms lost 0.21% or 17.46 points to 8,376.84, while mining and oil was down 0.14% or 16.74 points to 11,521.45.

A total of 2.57 billion issues switched hands, valued at P6.58 billion, up from Thursday’s turnover of P5.83 billion. Even as the main index declined, advancers still outpaced decliners, 125 to 82, while 54 issues were unchanged.

Net foreign outflows prevailed for the day, as foreign investors sold down P573.73 million worth of stocks, lower than the net sales of P715.67 million on Thursday.

Aboitiz Equity Ventures, Inc., which reported its net income fell by 4% to P21.6 billion, saw its shares advance 1.43% to P74.30 each. Metropolitan Bank and Trust Co was the most actively traded stock of the day, adding 0.05% to P96 each.

Atlas Mining posts P1.97 billion net loss

ATLAS Consolidated Mining and Development Corp. reported that its consolidated net loss ballooned by 124% in 2017, to P1.97 billion, despite its production rebounding in the second half of the year.

In a disclosure to the stock market on Friday, Atlas Mining said that despite its earnings having improved, its “mark to market losses for copper price hedges and for effective interest rates on certain loans affected the bottom line.”

“Without these mark to market provisions, the underlying net loss would have been P745 million compared to P879 million for the same period last year,” it read.

The company’s core income dropped by 38% to P746 million from last year’s P1.195 billion while its revenues slipped by 1% to P11.96 million from P12.08 million in 2016.

However, its earnings before interest, tax, depreciation and amortization (EBITDA) last year went up by 20% to P3.81 billion from P3.17 billion in 2016 due to improved copper prices.

Atlas Mining’s wholly owned subsidiary Carmen Copper Corp. processed 14.24 million tons of ore, producing 78.19 million pounds of copper metal and 21,979 ounces of gold.

This is less than the 16.72 million tons milled in 2016, which produced 102.88 million pounds of copper metal and 33,958 ounces of gold.

“The lower tonnage of ore delivered to the processing plant in 2017 was caused mainly by the unusually high levels of rainfall experienced in the first quarter of 2017 which restricted mine operations,” Atlas Mining said in a press release.

In the second half of 2017, Atlas Mining managed to produce 14% more copper (41.58 million pounds) compared to that produced in the first six months of the year (36.62 million pounds).

The 2017 average realized copper price at $2.78 per pound was 26% more than 2016’s $2.21 per pound, while gold prices increased to $1,259 per ounce from the 2016 price of $1,241 per ounce.

“The provision for mark to market loss represents the accounting valuation of outstanding copper price hedges as copper price increased above the hedge price at the end of the current year,” the company explained.

“This provision changes as the copper price changes and the final variance is determined at the month of settlement.”

Aside from this, the company also said that it had taken into account the difference in the nominal interest rate and the effective interest rate of certain long-term debts.

Atlas Mining also reported that its cash costs were 9% lower at P8.15 billion from P8.97 billion in 2016 despite the 25% increase in average cost per pound to $1.39 per pound due to higher waste charged to operations, lower by-products credits, and lower volume shipped.

To recall, the company saw its consolidated net loss double in the first nine months last year to P939 million from P470 million in 2016, and also pointed to copper price increasing above the hedge price.

This despite registering a steady improvement in production with a 12% increase in copper metal.

Atlas Mining’s shares on Friday closed P0.0100 or 0.20% lower to P5 from Thursday’s P5.01 shares a piece.

Gov’t looking to ease business processes

By Arra B. Francia, Reporter

THE Department of Trade Industry (DTI) looks to enhance the ease of doing business in the country with the use of mobile applications and electronic payment systems for the registration of new businesses, noting such efforts launched by the Quezon City (QC) government.

The QC government on Friday formally unveiled its one-stop shop that will handle new business registrations and the issuance of construction permits. The system allows entrepreneurs to start a business by filing for business permits online, as well as ePayment facilities for business taxes and real property taxes.

“We must make doing business easier. A complicated business registration process is a huge turn off particularly to young entrepreneurs or millennials who would want to start their business. Our current business registration practices are not aligned with the preferences of this demographic who are totally dependent on their mobile devices,” DTI Secretary Ramon M. Lopez said in a statement.

The program is being done in partnership with the DTI, the National Competitiveness Council (NCC) and the Department of Interior and Local Government (DILG).

Other than shifting to online process for frontline services, the one-stop shop further seeks to cut the amount of time and number of steps new businesses would have to go through to secure business licenses and construction permits.

New businesses currently have to undergo 16 steps for their registration which could take around 28 days. The one-stop shop aims to cut this process by half, with giving businessmen the ability to process steps at the local level within a day.

The one-stop shop will further reduce the number of steps for securing construction permits for simple structures from 11 to four.

“The basic principle ay pagpunta dito, mag-file ka lang, umupo ka lang, and in 20 to 30 minutes, tatawagin ka at magbabayad ka na lang. Nandoon na kasi yung assessment, nandoon na yung bayad,” Mr. Lopez said in a press conference in Quezon City on Friday.

New business registration and securing construction permits are among the 10 indicators used for ranking economies based on the ease of doing business in the country. Other indicators are getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

The Philippines slipped to the 113th spot from the 99th place among 190 countries in terms of ease of doing business, according to an annual World Bank Group report in 2017.

Ginagawa natin ito para makapag-attract pa lalo ng maraming negosyante upang magbigay ng trabaho sa mga kababayan natin. Patuloy na ginagampanan ng Quezon City ang kanyang trabaho na mapaikli at mapabilis ang pagrerehistro ng mga bagong negosyo, pagrerehistro ng lupa, at pag-aapply ng building permits sa QC,” QC Mayor Herbert M. Bautista said in the same press conference.

PESO ends flat on trade data

THE PESO ended flat against the dollar on Friday amid the wider yet lower-than-expected local trade deficit in January.

The local currency ended the week closing at P52.03 versus the greenback on Friday, flat from its finish on Thursday.

The peso traded weaker the whole day, opening the session at P52.12-per-dollar, while its intraday low stood at P52.14. Its best showing, meanwhile, was also at its P52.03-per-dollar finish yesterday.

Dollars traded rose to $592.1 million from the $453.7 million that changed hands in the previous session.

Two traders interviewed on Friday attributed the generally weaker trading to wider trade deficit data in January.

“The peso generally depreciated following the release of relatively weaker Philippine trade deficit for January 2018,” a trader said in an e-mail.

The country’s balance of trade stood at a $3.32-billion deficit in January, higher than the $2.47 billion deficit booked in the same period last year.

Preliminary data from the Philippine Statistics Authority showed imports grew 11.4% to P8.54 billion in January from the P7.66 billion booked in the same period last year.

Meanwhile, exports also grew 0.5% to P5.22 billion in January from the P5.19 billion recorded in a comparable year-ago period.

“This morning, we also saw a slight improvement in the trade data. Probably, that’s one of the reasons why we saw a better close at P52.03,” another trader said on Friday.

The trader added that rhetoric in the US on tariff imposition as well as the jobs data due for release on Friday were among the factors why the pair was consolidating most of the week.

“We continue to see factors affecting the US dollar, but I cannot attribute one event on why we continue to see this move. But among the events that are significant is the tariffs imposed by the US on steel and aluminum,” he said.

Last week, President Donald J. Trump announced he will slap a 25% tariff on steel and 10% tariff on aluminum, seen as a protectionist policy in favor of domestic producers.

However, this move was welcomed with opposition, with European Union threatening to impose tariffs on certain American goods such as Harley-Davidson motorcycles and Kentucky bourbon.

“This creates a risk-off sentiment,” the trader said, adding that investors were also waiting for the non-farm payrolls data. — Karl Angelo N. Vidal

SWS poll: 53% of Filipinos support divorce

An average 53% of adult Filipinos nationwide support the legalization of divorce, the results of a poll by the Social Weather Stations (SWS) have shown.

To the test statement, “Married couples who have already separated and cannot reconcile anymore should be allowed to divorce so that they can get legally married again,” 53% agreed (30% strongly and 23% somewhat), and almost a third (32%) disagreed (10% somewhat and 22% strongly). Fifteen percent were undecided on the matter.

This gives a net agreement score (% agree minus % disagree) of +21, classified by SWS as moderately strong.

SWS noted that support for the legalization of divorce used to be split when it first conducted the survey in 2005: 43% agreed, 12% were undecided, and 45% disagreed, for a neutral net agreement of -2.

The question was asked for the second time six years after in 2011 and obtained moderately strong support. When it was asked for the third time three years after in 2014, it went to very strong and stayed at moderately strong up to 2017.

New law grants PNP chief, CIDG power to issue subpoenas

The Philippine National Police (PNP) and the Criminal Investigation and Detection Group (CIDG) have now the power to issue subpoenas under Republic Act (RA) No. 10973, which President Rodrigo R. Duterte signed into law on March 1.

RA No. 10973 grants the chief of the PNP and the director and deputy director of the CIDG the authority to administer oath and to issue subpoena and subpoena duces tecum.

The said Act amends RA No. 6975 or the Department of Interior and Local Government Act of 1990.

The new law says the issuance of subpoenas shall be “in relation to” an investigation being conducted by the PNP and the CIDG.

It adds: “[S]uch powers shall be exercised solely by the aforementioned officials and may not be further delegated to any other person or office.”

The new law is a consolidation of Senate Bill No. 1239 and House Bill No. 4863. — Arjay L. Balinbin

Philippines seeks ‘terrorist’ tag for 600 alleged communist guerrillas

A U.N. special rapporteur, a former Philippine lawmaker and four former Catholic priests are among more than 600 alleged communist guerrillas the Philippines wants declared “terrorists”, according to a government petition filed in court.

The justice ministry last month said it wanted a Manila court to declare the Communist Party of the Philippines (CPP) and its armed wing, the New People’s Army (NPA), “terrorist” bodies, but made no mention of individuals it would also target.

The petition, a copy of which was seen by Reuters, suggests President Rodrigo Duterte is following through on his threats to destroy a movement he now regards as duplicitous.

Since taking office in July 2016, Duterte freed some communist leaders and put leftists in his cabinet, to show his commitment to finding a permanent solution to a five-decade conflict.

But he abandoned the process in November, after what he called repeated attacks by the NPA during talks.

The petition said the rebels were “using acts of terror” to sow fear and panic to overthrow the government.

Duterte has been regularly venting his fury at the Maoists and considers them as much of a security threat as the domestic Islamist militant groups that have pledged allegiance to Islamic State.

By declaring groups and individuals terrorists, the government would be able to monitor them more closely, track finances and curb access to resources, among other measures.

But Carlos Conde, Philippines researcher with the New York-based Human Rights Watch, said the petition was “a virtual hit list”.

“There’s a long history in the Philippines of the state security forces and pro-government militias assassinating people labeled as NPA members or supporters,” he said in a statement.

‘BASELESS, MALICIOUS’

The government petition included Victoria Tauli-Corpuz, appointed in 2014 as U.N. special rapporteur on the rights of indigenous peoples, who was listed as a senior member of the Maoist rebel group.

Tauli-Corpuz denounced the government, calling the complaint “baseless, malicious and irresponsible”.

U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein defended the independence, impartiality and expertise of special rapporteurs in the face of smear and hate campaigns, some involving incitement to violence.

“Instead of attacking the messenger, states and other stakeholders should engage and address the human rights concerns raised by mandate-holders,” he said in Geneva.

Two other U.N. special rapporteurs, Michel Forst and Catalina Devandas Aguilar, expressed “grave concern” about Tauli-Corpuz being on the list, and said she was being punished by Duterte for speaking against some of his policies.

Also on the list were four former Catholic priests and former congressman Satur Ocampo, who told Reuters he would challenge any “terrorist” label.

The petition included 18 top leaders of the CPP, including founder Jose Maria Sison and peace negotiator Luis Jalandoni, both based in the Netherlands for three decades.

There was no basis for the charge of terrorism, said Sison, who was a mentor of Duterte when he was at university, although the two are now bitter rivals.

“Duterte is engaged in a wild anti-communist witchhunt under the guise of anti-terrorism,” he said. “Duterte is truly the No. 1 terrorist in the Philippines.”

Duterte’s spokesman did not respond to requests for comment.

More than 40,000 people have been killed in the Maoist rebellion. Negotiations to end the revolt have been on and off since being brokered by Norway in 1986. — Reuters

UN human rights chief says Duterte needs psychiatric evaluation

GENEVA — Philippines President Rodrigo Duterte’s slurs against U.N. human rights activists suggest he needs to see a psychiatrist, U.N. High Commissioner for Human Rights Zeid Ra’ad al-Hussein told a news conference on Friday.

“These attacks cannot go unanswered, the U.N. Human Rights Council must take a position,” Zeid said, after Duterte’s government sought to get a U.N. investigator, a former Philippine lawmaker and four former Catholic priests declared as “terrorists”.

“He needs to submit himself to some sort of psychiatric examination. This kind of comment is unacceptable, unacceptable,” Zeid said. — Reuters

NBI rescues five minors from online child trafficking, nabs suspect

The National Bureau of Investigation (NBI) said in a press conference it cooperated with several local and international agencies in rescuing five minors and in arresting a man involved in child pornography, online human trafficking, and sexual abuse.

In what NBI Director Dante A. Gierran described as an “unprecedented” operation, a joint task force of the NBI Anti-Human Trafficking Division (NBI AHTRAD) and the Philippine National Police Women and Child Protection Center (PNP WCPC) were aided by elements of several international agencies in arresting suspected online child trafficker Ancelmo Ico, Jr. last Thursday, March 9, in an entrapment operation in Malolos, Bulacan.

Five minors aged at least seven were rescued and equipment used in Mr. Ico’s illegal activities such as laptops, cellphones, and tablets were also seized in the operation.

According to a statement released by the NBI, Mr. Ico, who also went by the alias Jaja Jhoncel, was “actively and aggressively involved in producing, manufacturing, offering, selling, advertising, promoting, communicating, and distributing explicit sexual activities of children or child pornography and offering [minors] for sexual exploitation.” — Dane Angelo M. Enerio

Imports outpaced exports in January

Trade deficit continued to widen in January with imports growing in double-digits while exports growth was flat.

Preliminary data released yesterday by the Philippine Statistics Authority (PSA) showed the January trade deficit reaching $3.317 billion, expanding from $2.469 billion posted in the same period last year.

Merchandise export receipts during the month was $5.219 billion, 0.5% more than the $5.191 billion recorded in January 2017.

Meanwhile, the country’s import bill continued to grow at double-digits at 11.4% to $8.536 billion in January from last year’s $7.660 billion.

These brought total trade to $13.754 billion, 7% higher compared to $12.851 billion on a year-on-year basis.

Stocks end week in the red

Stocks closed the week in the red, as the lack of catalysts failed to sustain the market’s early day gains.

The Philippine Stock Exchange index edged lower by 0.11% or 9.34 points to finish at 8,372.51 on Friday, while the all-shares index also dropped 0.25% or 12.69 points to 5,052.79.

“Philippine markets still finished in the red as the broader market lacked a stronger catalyst today. Other news kept the market flat to down,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

Two sectoral indices managed to post gains back home, as property climbed 0.72% or 26.84 points to 3,774.07, while industrial added 0.27% or 30.50 points to 11,473.02.

Services led the day’s losers, giving up 0.39% or 6.92 points to close at 1,755.36. Financials followed with a decrease of 0.26% or 5.65 points to 2,180.75.Holding firms lost 0.21% or 17.46 points to 8,376.84, while mining and oil was down 0.14% or 16.74 points to 11,521.45.

A total of 2.57 issues switched hands, valued at P6.58 billion, up from Thursday’s turnover of P5.83 billion. Even as the main index declined, advancers still outpaced decliners, 125 to 82, while 54 issues were unchanged.

Net foreign outflows prevailed for the day, as foreign investors sold down P573.73 million worth of funds, lower than the net sales of P715.67 million on Thursday.

Aboitiz Equity Ventures, Inc., which reported its net income fell by 4% to P21.6 billion, saw its shares advance 1.43% to P74.30 each. Metropolitan Bank and Trust Co was the most actively traded stock of the day, adding 0.05% to P96 each. — Arra B. Francia

QC government moves to streamline business registration

The local government of Quezon City has launched a program that would facilitate the registration of new businesses, in a bid to further the ease of doing business in the city.

The program includes a one-stop shop that seeks to cut the number of steps new businesses would have to go through to secure business licenses and construction permits.

New businesses currently have to undergo 16 steps for their registration which could take around 28 days. The one-stop shop aims to cut this process by half. For securing construction permits, the one-stop shop will reduce the number of steps from 11 to four. — Arra B. Francia