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PSEi hits over two-month high on rate cut view

REUTERS

PHILIPPINE SHARES ended higher on Monday, inching closer to the 6,700 mark, as positive sentiment overseas spilled over to the local market and amid growing monetary easing expectations here and abroad.

The Philippine Stock Exchange index (PSEi) rose by 0.61% or 41.14 points to close at 6,689.37 on Monday, while the broader all shares index gained by 0.5% or 18 points to finish at 3,594.22.

This was the PSEi’s best close in over two months or since it finished at 6,700.49 on April 30.

“The local bourse gained… due to the positive spillover from the US markets’ performance last Friday,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

Wall Street closed higher on Friday, with the S&P 500 and the Dow Jones Industrial Average hitting intraday record highs, on bets that the US Federal Reserve will cut interest rates in September, Reuters reported.

The S&P 500 climbed 0.55% to end the session at 5,615.35 points. The Nasdaq gained 0.63% at 18,398.45 points, while Dow Jones Industrial Average rose 0.62% to 40,000.90 points.

Data showed producer prices were slightly hotter-than-expected in June but that did little to change bets on the first rate cut in September. The report follows data showing a surprise fall in US consumer prices on Thursday.

Traders are betting on a 94% chance of a rate cut by September, up from 78% a week prior, according to CME Group’s FedWatch.

Ms. Alviar added that expectations of bets on the Bangko Sentral ng Pilipinas (BSP) monetary easing path also boosted Philippine stocks.

“Philippine shares made a challenge towards the 6,700 level, settling just a few points off, as investors await more data that will fuel expectations of rate cuts for both the BSP and Fed,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

BSP Governor Eli M. Remolona, Jr. last month said the Monetary Board may deliver its first rate cut in over three years at its Aug. 15 review as they expect inflation to continue easing this semester.

The BSP last month kept its policy rate at a 17-year high of 6.5% for a sixth straight meeting.

Majority of sectoral indices closed higher on Monday. Property surged by 1.9% or 49.58 points to 2,651.18; holding firms climbed by 1.73% or 98.89 points to 5,785.36; mining and oil rose by 1.07% or 91.75 points to 8,646.25; and industrials went up by 0.27% or 25.27 points to 9,156.50.

Meanwhile, services fell by 1.07% or 22.15 points to 2,046.62, and financials inched down by 0.08% or 1.65 points to 2,027.42.

Value turnover rose to P5.22 billion on Monday with 460.5 million issues changing hands from the P4.38 billion with 319.13 million shares traded on Friday.

Advancers overwhelmed decliners, 117 against 59, while 52 names closed unchanged.

Net foreign selling stood at P46.18 million on Monday versus the P257.15 million in net buying posted on Friday. — R.M.D. Ochave with Reuters

2 die, thousands of Filipinos flee due to heavy rains in nation’s south

PHILIPPINE Coast Guard men rescue residents from floods in the village of Tumaga in Zamboanga City. — COAST GUARD DISTRICT SOUTHWESTERN MINDANAO

By Kyle Aristophere T. Atienza, Reporter

AT LEAST two people died due to nonstop rains in southern Philippines, with more than 17,000 people forced to flee, the local disaster risk agency said on Monday.

Two people were injured in the Davao Region, the National Disaster Risk Reduction and Management Council said in a bulletin, citing reports from the ground.

Affected people reached 54,289, more than half of whom were in the Soccsksargen region, 11,785 in the Zamboanga Peninsula, 9,309 in Northern Mindanao and 722 in the Davao region, it added.

More than 17,000 people were staying in evacuation centers, the agency said.

It said 21 roads — 12 in Soccsksargen and five in Zamboanga — and two bridges were still not passable, while electricity in five cities had not been restored.

Seventy-three houses were destroyed, with damage worth P2.12 million. Damage to infrastructure hit P700,000.

Farm output loss had hit 396.387 metric tons worth P17.88 million, the council said.

The state weather bureau noted that as of 3 p.m. on Monday, a low-pressure area that could develop into a tropical storm was seen 440 kilometers east of Davao City.

The low-pressure area has brought scattered rain showers and thunderstorms in Eastern Visayas, Caraga and Davao regions, it added.

It noted that the southwest monsoon has been affecting the western sections of Southern Luzon and the Visayas.

In a statement, the Presidential Communications Office said financial aid and relief supplies from President Ferdinand R. Marcos, Jr.’s office had reached affected families in Matanog, Maguindanao del Norte, one of the heavily flooded areas in Mindanao, on Sunday.

At least 76 residents in the province whose houses had been partially damaged got P5,000 each, or a total of P380,000, it added.

The palace said 286 residents with totally damaged houses got P10,000 each or a total of P2.86 million. “Burial assistance of P10,000 each was given to two beneficiaries.”

At the Balabagan Evacuation Center, the government also extended P785,000 in financial aid to 157 residents whose houses were partially damaged (P50,000 each), 10 residents whose houses were totally destroyed (P10,000 each), and P10,000 in burial assistance to two residents, the palace said.

It added that Social Welfare Secretary Rexlon T. Gatchalian and Special Assistant to the President Antonio Ernesto “Anton” Lagdameo, Jr. held a briefing in Maguindanao del Norte with officials from the Bangsamoro region.

Cabinet secretaries also met with Lanao del Sur officials to determine how the National Government could help.

The Philippines has transitioned to La Niña but is still reeling from the impacts of droughts brought by the El Niño weather pattern. From damage from El Niño had reached P6.3 billion as of May 11.

The Philippines lies along the typhoon belt in the Pacific and experiences about 20 storms each year. It also lies in the so-called Pacific Ring of Fire, a belt of volcanoes around the Pacific Ocean where most of the world’s earthquakes strike.

Filipino scientists have been urging the government to increase the state weather bureau’s budget, citing increased threats from changing climate patterns.   

The World Bank has said economic damage to the Philippines due to climate change could hit 13.6% of economic output.

The Philippine government last week hailed the country’s selection as host of the Loss and Damage Fund’s board, which is responsible for coming up with strategies to deliver climate finance funds to nations vulnerable to climate change.

Rich countries that account for most of the world’s greenhouse gas emissions have pledged $700 million to the fund, falling short of the $100-$580-billion global estimate for the annual loss and damage in developing countries.

A 2024 Green Economy report for Southeast Asia led by Bain & Company said “green” investments in the Philippines rose by 57% to $1.46 billion in 2023, but still fell short of the more than $16 billion in required capital investments needed for its green transition.

Philippine prisoners to get improved healthcare

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Chloe Mari A. Hufana

VARIOUS agencies led by the Department of Health (DoH) on Monday signed a joint administrative order promoting healthcare among prisoners nationwide.

“This policy aims to establish a health-protective and health-promoted environment and wellness and longevity for individuals in detention to set up a responsive health system for those who have been deprived of liberty,” Health Secretary Teodoro J. Herbosa said at the signing at the Manila Hotel.

He said one of the pillars of the order is health promotion. “It is very important to have healthy environments — physical, mental and social determinants — to protect and promote the health of persons in jail,” he said in mixed English and Filipino.

“Secondly, healthcare services are very important when prisoners fall ill. We will establish facilities, and that is the request from Bureau of Jail Management and Penology (BJMP) Director Ruel S. Rivera — to help them build better health service facilities,” he added.

Mr. Herbosa said his agency is working with the Department of Justice (DoJ) to expedite the courts’ decision-making process because prisoners are exposed to health risks that could be mitigated if they were released.

Under the order, the Philippine Health Insurance Corp. (PhilHealth) will facilitate the registration of prisoners under the program.

“We will ensure that prisoners are informed of their rights and benefit enhancement entitlements under the national health insurance program,” PhilHealth President and Chief Executive Officer Emmanuel R. Ledesma, Jr. Said.

He added that a government program that gives poor patients free medical care in government hospitals would be extended to poor prisoners.

The most common health problems in prisons include upper respiratory diseases, skin conditions, mental health issues, allergies and concerns related to hygiene and nutrition, Health Assistant Secretary Albert Francis E. Domingo said at the event.

Heart attacks and arthritis also threaten prisoners, Mr. Ledesma said.

BJMP Chief Superintendent Ilna Rita B. Maderazo said the bureau plans to enforce healthy places of detention by improving health services, providing regular checkups and ensuring access to sanitation and nutrition.

“We aim to establish partnerships with health organizations and nongovernmental organizations to provide specialized health programs,” she said. “We are also focused on training jail personnel in health and safety protocols, ensuring they are equipped to manage health-related issues effectively.”

Mental health support is a critical area that the BJMP aims to push among their workers to create a safer and healthier environment inside facilities.

Meanwhile, Bureau of Corrections (BuCor) Director-General Gregorio Pio P. Catapang, Jr. said they are looking at ways to decongest the national penitentiary in Muntinlupa City with an additional P900-million budget.

Out of 478 jail facilities nationwide, 323 were congested, with occupancy rates ranging from 101% to 2,739%, according to a Commission on Audit report in 2022.

The total jail population of 127,031 in December 2022 exceeded the total ideal capacity of 46,702, resulting in unhealthy living conditions for prisoners.

Last week, the DoJ and BuCor signed a declaration with the University of the Philippines Manila-College of Medicine and the United Nations Office on Drugs and Crime to strengthen the investigation process on the death of prisoners.

Under the declaration, BuCor authorities will transport prisoners’ dead bodies to UP Medicine facilities for autopsies.

Before, autopsies conducted by medical professionals were only performed on prisoner deaths suspected of foul play.

More than 4,600 prisoner deaths were registered by BuCor from 2020 to June 30, 2024. This year, it counted 487 deaths, Mr. Catapang said last week.

Robin files bill versus dynasties

SENATE PRIB

A PHILIPPINE senator on Monday filed a bill that seeks to bar members of the same political dynasty from running for public office during an election.

“Given that this measure complies with the Legislature’s mandate to enact an anti-political dynasty law and is a step towards leveling the playing field in politics and governance, the passage thereof is earnestly sought,” Senator Robin Ferdinand C. Padilla said in the explanatory note of Senate Bill No.  2730.

Vice-President Sara Z. Duterte-Carpio last month said her father ex-President Rodrigo R. Duterte and her brothers Davao City Rep. Paolo Z. Duterte and Davao City Mayor Sebastian Z. Duterte would run for Senate seats in the midterm elections next year.

Mr. Padilla described the prospect as “very good news,” saying he would have three more allies in the Senate.

But in a separate statement on Monday, he said political dynasties have exhausted resources to attain economic and political dominance “while at the same time compromising political competition and undermining accountability.”

“It is time to break the barriers preventing the best and the brightest from serving the Filipino people,” he added.

Mr. Padilla’s media relations officer did not immediately reply to a Viber message seeking comment

Under the measure, the Commission on Elections (Comelec) may deny the candidacy or disqualify the election of an incumbent official’s spouse or a relative within the fourth civil degree of consanguinity or affinity, or those who have common ancestors running for public office.

The bill defines a political dynasty as two or more people who are spouses or relatives who run simultaneously for public office within the same city and province or as nominees to any party-list.

The number of governors with at least one relative in office rose from 41% in 1988 to 80% in 2019, Mr. Padilla said in a separate statement, citing Philippine election data

The 1987 Constitution mandates the state to guarantee “equal access to opportunities for public service” and to ban political dynasties.

Last year, Senate Minority Floor Leader Aquilino Martin D. Pimentel III called for changes to the party-list system by introducing safeguards against political dynasties.

He said the government of President Ferdinand R. Marcos, Jr. should work on enhancing the country’s system of governance before easing economic provisions in the 1987 Constitution. — John Victor D. Ordoñez

Lawmakers convicted of child abuse

PIXABAY

A REGIONAL trial court has found a lawmaker and a former congressman guilty of child abuse for transporting 14 minors in 2018 without authority.

In a 27-page decision dated July 3, Branch 2 of the Tagum City Regional Trial Court convicted Party-list Rep. France L. Castro, former Party-list Rep. Saturnino C. Ocampo, and 11 others.

The court said Ms. Castro and her co-accused had failed to safeguard the minors from possible danger during their travel from a school in the hinterlands of Talaingod, Davao del Norte to Tagum City.

They not only exposed the children to harm or risk but also put them in danger, it said. “Due to the acts of the accused, the children experienced unnecessary risks and suffered from unsecured conditions,” acting Presiding Judge Jimmy B. Boco said in the ruling.

“This is a clear miscarriage of justice, and we will strongly question this decision in all venues possible,” Ms. Castro and Mr. Ocampo said in a joint statement. “We will appeal this decision even if it reaches the Supreme Court.”

All 13 respondents were sentenced to a jail term of four to six years and were ordered to pay the 14 minors P20,000 each.

In a separate statement, the Department of Justice (DoJ) said the accused should respect the court decision. “Any attempt to undermine public trust in our judicial process through inappropriate statements or actions will not be tolerated.” — Kenneth Christiane L. Basilio

Education cluster sought

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE GOVERNMENT of President Ferdinand R. Marcos, Jr. should create a Cabinet cluster that would fix the country’s learning crisis, according to a Philippine senator.

“This move aims to address the persistent learning crisis in the country by ensuring strong coordination among key departments and agencies involved in education and workforce development,” Senator Alan Peter S. Cayetano said in a statement on Sunday evening.

The cluster should include the Labor and Budget departments, he said.

The senator, who is co-chairman of the Second Congressional Commission on Education, said the Cabinet cluster should develop a roadmap on national education and workforce development.

Filipino students were among the world’s weakest in the Programme on International Student Assessment’s 2022 assessment for student performance in mathematics, reading and science. It ranked 77th out of 81 countries, performing worse than the global average in all categories. — John Victor D. Ordoñez

DoE orders recovery plans

MATTHEW HENRY-UNSPLASH

THE DEPARTMENT of Energy (DoE) on Monday said it has ordered industry players to come up with power recovery plans for the rainy season to ensure minimal power failures.

“We have required them to have resiliency plans, which include recovery plans,” Energy Assistant Secretary Mario C. Marasigan told congressmen at a hearing in Filipino.

The state weather bureau in May declared the start of the rainy season. Last week, it said there is now a 70% chance of La Niña by August. 

Energy resilience plans refer to preparations by power companies in case of “extreme and far-reaching disasters, both natural and human-induced,” Mr. Marasigan said. — Kenneth Christiane L. Basilio

Clean water bill filed

PIXABAY

A BILL seeking to improve access to clean water by fast-tracking the construction of potable water supply systems nationwide has been filed at the House of Representatives.

House Bill (HB) No. 10531 by Party-list Rep. Wilbert T. Lee, which seeks to create a clean water system within three years, tasks the National Water Resources Board to prioritize areas with health problems brought by the lack of access to potable water.

“The consequences of insufficient access to clean and safe water adversely impacts public health,” he said in the bill’s explanatory note. “Contaminated water sources can lead to waterborne diseases and other health risks.”

The congressman also said dirty water hinders economic development and worsens social inequalities because communities without reliable access to clean water struggle to meet their basic needs and pursue livelihood opportunities.

About 40 million Filipinos, most of them living in island and rural communities, have no access to clean water, Mr. Lee said. — Kenneth Christiane L. Basilio

Senate prepared in Guo case

PHILIPPINE STAR/JESSE BUSTOS

A PHILIPPINE senator on Monday said she would coordinate with foreign law enforcement agencies if the suspended mayor of Bamban, Tarlac whom she had accused of having links to Chinese espionage manages to flee the country despite a Senate arrest order.

“If the worst-case scenario materializes, that Guo Hua Ping (Alice L. Guo) is no longer in the country, then it is possible for us to seek help from law enforcement agencies overseas,” Senator Ana Theresia N. Hontiveros, who is leading a Senate probe of crimes linked to Philippine Offshore Gaming Operations (POGO), told a virtual news briefing in Filipino.

She added that foreign law enforcement agencies could aid the government’s probe of criminal syndicates linked to these gambling outfits.

At the weekend, the Senate ordered the arrest of Bamban Mayor Alice L. Guo after citing her in contempt for skipping Senate hearings.

The suspended mayor has asserted her innocence amid accusations of her involvement in illegal POGOs and crimes such as human trafficking. She also insists she is a Filipino citizen. — John Victor D. Ordoñez

GSIS eases housing loan terms

GSIS FACEBOOK PAGE

THE GOVERNMENT Service Insurance System (GSIS) has revised its housing loan program for government workers to boost their chances of acquiring any of 12,000 GSIS properties nationwide.

“By eliminating the downpayment requirement and offering a long-term installment plan, we are not just making home ownership more achievable for our members; we are providing an accessible and affordable housing program,” GSIS President and General Manager Jose Arnulfo A. Veloso said in a statement on Monday.

GSIS said that the properties are awarded to government workers who will be paying in installments.

The GSIS Board of Trustees approved the revised guidelines to allow current lessees to buy their homes on an installment basis with no downpayment.

Mr. Veloso added that further changes are being studied to improve the Lease with Option to Buy (LWOB) program for its members. — Aaron Michael C. Sy

Kindred raises $5.5 million in pre-Series A funding round

Photo from Kindred

Femtech company Kindred Health Inc. announced on July 15 that it has raised $2.5 million in the first tranche of its pre-Series A funding round. It has also secured commitments for an additional $3 million in the second tranche upon completion of key milestones. 

This funding round was led by Integra Partners, with participation from investors including Kaya Founders, KSR Ventures, Ava Zobel Pessina, Pawikan Capital Group, Tenco Capital, and individuals such as Frans Beltran and Micaela Beltran. Pulse63 Healthcare Ventures, a venture builder with a focus on healthcare, continues to guide the company’s strategic direction and growth. 

The latest funding has been earmarked for geographical expansion, technology investments, and new services.  

“At Integra, we believe that women’s health is a huge market opportunity in Southeast Asia and globally, especially as the healthcare industry starts to gain a deeper understanding of how women manifest different symptoms and respond to treatments differently across a range of diseases and conditions,” said Jennifer Ho, a partner at Integra Partners, in a July 15 press release. 

“This will enable us to scale our services, improve our technology, and increase our capacity to better serve our clients, paving the way for future generations of women in the Philippines,” said Jessica de Mesa-Lim, co-founder and CEO of Kindred, in the same press statement. 

The milestones in relation to the second tranche are “rooted in clinic-specific metrics and customer satisfaction goals,” added Carlo C. Flordeliza, Kindred’s chief marketing officer, in a July 15 email. “The key milestones are customer-centric.” 

Kindred was launched in 2021 as a virtual clinic, before opening a physical clinic in Taguig City, Metro Manila, in 2023. It offers consultations on mental health, contraceptives, health screenings, immunizations, intravenous therapy, nutrition and fitness coaching, and other wellness services.  

The femtech company plans to build 10 additional clinics by the year’s end. It also plans to provide a better online-to-offline experience for its users and launch new offerings tailored to issues related to – among others – infectious diseases, infertility, and menopause. – Patricia B. Mirasol

Leveraging AI to upskill workforce in the Philippines

Veemal Gungandin delivering a talk on generative AI at the Meetings, Incentive Travel, Conventions, Exhibitions Conference (M.I.C.E. CON) 2024. | photo by Almira Louise S. Martinez

With the rapid growth of artificial intelligence (AI) usage across different industries, companies invest in knowledgeable workers capable of adapting to this technology according to Veemal Gungadin, Co-Founder and CEO of GevMe. 

“In the Philippines, there are people who are really early adopters who are actually excited with AI… I think leveraging the early adopters is the way to go about that at an organizational level,” Mr. Gungadin said last Thursday at the Meetings, Incentive Travel, Conventions, Exhibitions Conference (M.I.C.E. CON) 2024. 

A recent study released by Microsoft Corp. and LinkedIn on May 23 revealed that the Philippines surpassed the global average usage of AI in workplaces, with 86% of Filipino knowledge workers using AI in their outputs. 

Additionally, 70% of executives in the Philippines show a preference for recruiting individuals with AI expertise, while 68% opt for hiring a less seasoned candidate with AI skills over a more experienced one. 

Mr. Gungadin added that learning about AI makes you more valuable as an employee.  

“The best thing is to get equipped with AI so that you make yourself more valuable in your company,” he said. 

Although there’s an increasing interest in the said technology across the country, it was also mentioned that Filipino workers do not receive enough training on how to utilize it properly in workplaces. 

“Only Filipino AI users are 30% more likely to get training, especially on prompts (23% more likely) and using AI for their specific role or function (37% more likely).” 

According to Bernardo M. Villegas in a Zoom interview last May 1, 60% of the IT and BPO sectors in the country were threatened by AI and robotics because they are in customer services, which are the “easiest” to robotize.  

“So they have to make sure that they are very proactive in taking their existing workers and preparing them for knowledge-intensive work,” Mr. Villegas said. 

Mr. Gungandin shared that fear must not overcome workers during this time.  

“AI will not replace your job. But you know who will get your job? Somebody using AI,” he said.Almira Louise S. Martinez