How PSEi member stocks performed — April 17, 2024
Here’s a quick glance at how PSEi stocks fared on Wednesday, April 17, 2024.
SC rules Comelec committed grave abuse in disqualifying Smartmatic
By Chloe Mari A. Hufana
THE PHILIPPINE Supreme Court (SC) has ruled that the Commission on Elections (Comelec) committed grave abuse of discretion when it disqualified Smartmatic Philippines from bidding for the 2025 election automation project before it had even submitted a bid.
In a decision penned by Justice Jose Midas P. Marquez, the SC en banc stated that the Comelec’s disqualification of Smartmatic “without any reference to the eligibility requirements prescribed” by its own Bids and Awards Committee (BAC) was unjustified and contrary to the Government Procurement Reform Act.
“The Court recognized that requiring Comelec to conduct another round of public bidding would disrupt preparations for the 2025 National and Local Elections (NLE) and could jeopardize the elections themselves,” the SC said in a statement.
The ruling also cited “considerations of equity, justice, practicality, and the doctrine of operative fact,” which recognizes the legality of a law before it became illegal.
SC Spokesperson Camille Sue Mae L. Ting in a media forum said the decision will not affect the award given to Miru Systems for the upcoming automated elections.
“We welcome the Supreme Court’s ruling in our favor, which restores justice and sends a clear message to those at the helm of COMELEC that due process matters,” Smartmatic legal counsel Christian Robert S. Lim said in a statement.
Smartmatic said the decision of some COMELEC commissioners to declare voting counting machines as unserviceable despite several more years of functionality and ongoing warranty was “questionable”.”
It said the continued use of the machines could have saved billions of pesos for Filipinos.
The COMELEC en banc disqualified Smartmatic citing its “constitutional mandate to enforce and administer all laws & regulations relative to the conduct of elections under the Constitution.”
Ms. Ting said Smartmatic — the provider of automation services for elections in the Philippines since 2010 — could sue COMELEC for civil damages.
“The COMELEC being part of the government and an independent constitutional body, cannot be sued without consent (under the principle of state immunity from suit), and this, according to the SC extends to government officials who acted in the performance of their duties and functions,” National Union of Peoples‘ Lawyers Ephraim B. Cortez said in a Viber message to BusinessWorld.
“COMELEC will now be cautious and ensure that at the very least a bidder has already submitted its bid documents. It means disqualification should be made after it reviewed the documents submitted by the bidder,” Mr. Cortez added.
Comelec Spokesperson John Rex C. Laudiangco told BusinessWorld in a Viber message that they have yet to receive a copy of the decision and told other media outlets that preparations for the 2025 elections remained on track.
Later, Comelec Chairman George Erwin M. Garcia sent BusinessWorld a Viber message that they have decided to file a motion for reconsideration.
House calls for probe of ‘dubious’ Chinese schemes in Philippines
By Kenneth Christiane L. Basilio
MEMBERS of the progressive bloc in the House of Representatives have filed a resolution aimed at investigating China’s alleged recruitment of Filipino military personnel and the presence of Chinese sleeper cells in the Philippines.
“The number of reports on dubious Chinese activities in the country is increasing,” Party-list Rep. France L. Castro said in a statement on Wednesday.
Ms. Castro and her fellow Makabayan bloc members filed on Monday House Resolution No. 1682 which sought to examine alleged Chinese activities in the Philippines in response to fears that they could destabilize the country.
“The alleged recruitment of Filipino active and retired military personnel by foreign-based firms… and the alleged existence of sleeper cells in the country are serious matters of national security,” read the resolution.
Ms. Castro noted the alleged presence of Chinese sleeper cells — secret groups of China’s People’s Liberation Army personnel — as alarming in addition to Chinese involvement in other crimes associated with Philippine Offshore Gaming Operators (POGO).
“Amidst the escalating aggressive actions of China… as well as the ‘secret deal’ between former Pres. Rodrigo Duterte and Chinese Pres. Xi Jinping, reports of supposed Chinese operations to recruit active and retired AFP (Armed Forces of the Philippines) and PNP (Philippine National Police) personnel have surfaced,” she said.
The PNP said it is investigating the alleged existence of Chinese sleeper cells in the country last November.
Sought for comment, the Chinese Embassy in Manila addressed the allegations by sending a link of its statement last month which read: “Those are merely malicious speculation and groundless accusation against China with the purpose of inciting Sinophobic sentiments in the Philippines.”
Welcoming the probe, Surigao del Norte Rep. Robert Ace S. Barbers reiterated his call that the House also investigate the influx of Chinese nationals near the Enhanced Defense Cooperation Agreement (EDCA) military sites in Cagayan province in Northern Luzon as they may pose security risks for the country.
“The deployment, land purchases, and business creation by Chinese nationals near EDCA sites demand attention from our agencies,” Mr. Barbers said on Wednesday.
On Tuesday, he scored the Department of Foreign Affairs (DFA) and the Bureau of Immigration (BI) and other government agencies for allowing suspicious arrivals of Chinese nationals, some of whom have acquired Philippine documents like passports, birth certificates, and driver’s licenses, among others.
He alleged a “Chinese mafia” was providing Philippine documentation to Chinese nationals. “What have these agencies done to counter document tampering?” Mr. Barbers questioned.
Filipinos advised to suspend nonessential travel to Israel
By John Victor D. Ordoñez, Reporter
THE PHILIPPINE Embassy in Tel Aviv has recommended that Filipinos suspend non-essential travel to Israel at least until hostile situations stabilize amid the ongoing conflict with Iran and the war in Gaza.
In a statement, Philippine Department of Foreign Affairs (DFA) said it is maintaining Alert Level 2 in Tel-Aviv, which restricts non-essential movement for Filipinos there and urges them to avoid public places as well as prepare for possible evacuation.
“All Filipinos in the region are advised to be alert and updated with the security pronouncement of their host governments,” the DFA said.
“For contingency planning purposes, all Filipinos are likewise encouraged to coordinate with their overseas community leaders and our Philippine Embassies and Consulates,” it added.
At the weekend, Iran launched a barrage of missiles and drones at Israel after an Israeli attack on Iran’s consulate in Syria. A seven-year-old girl was hurt in the Iranian strike.
On Monday, the Philippines called on both Israel and Iran to resolve their conflict peacefully and abide by international law.
Meanwhile, Senator Rafael T. Tulfo said he is coordinating with the DFA and the Department of Migrant Workers (DMW) to ensure the safe return of four Filipino seafarers aboard a commercial vessel seized by Iran last April 13.
“I am continuously monitoring and coordinating with the DFA and the DMW to ensure that our countrymen get home safely,” read Mr. Tulfo’s statement written partly in Filipino.
On Tuesday, the DMW said that it is urging the International Bargaining Forum to classify the Strait of Hormuz, where the Israel-linked ship was seized, as a high-risk area that would heighten the monitoring of movement in the area.
Earlier, the DFA released data that there are about 30,000 Filipinos in Israel and 2,000 more in Iran.
Israel Ambassador to the Philippines Ilan Fluss told a virtual briefing on Monday that he would be open to holding dialogues with Philippine state agencies to explain Israel’s mechanisms to ensure the safety of Filipinos and other people who visit the country amid the ongoing conflict.
“I fully respect what the authorities in the Philippines will decide to do,” he said.
New Zealand PM arrives in Manila Thursday
NEW ZEALAND Prime Minister (PM) Christopher Luxon and a delegation of top business leaders will be in Manila on Thursday to meet with Philippine President Ferdinand R. Marcos, Jr. to discuss the Philippine government’s development agenda.
“He (Mr. Luxon) has been very clear that he wants to come to the Philippines,” outgoing New Zealand Ambassador the Philippines Francis Tavita Kell said in his farewell call to Mr. Marcos in Malacañang on Wednesday.
“Putting it simply — his mission is to show the rest of his delegation [the] 25 top business leaders, they should be doing more in this part of the world, they should be doing more in the Philippines.”
Last year, New Zealand was Manila’s 28th trading partner with trade amounting to $495.37 million. It is also the country’s 38th export destination and 24th import source.
There are about 100,000 Filipinos based in New Zealand, according to the New Zealand government’s official website.
“The Philippines is one of the fastest growing economies in the region and expected to be a top 20 global economy by 2050,” Mr. Luxon said in a statement on the same site. “I am looking forward to reconnecting with President Marcos, to advancing our countries’ relationship of nearly 60 years and to scoping more opportunities of New Zealand businesses.” — John Victor D. Ordoñez
It’s time to tap nuclear energy, lawmaker tells government
THE GOVERNMENT should immediately construct and deploy nuclear power plants to meet the country’s increasing electricity needs, a congressman said on Tuesday amid supply concerns in the summer season.
“The DoE (Department of Energy) must fulfill their mandate without delay,” Pangasinan Rep. Marcos Juan Bruno O. Cojuangco said in a statement. “We cannot keep having rotational brownouts nationwide when Red Alerts are issued during the summer season.”
The government expects nuclear power to start feeding into the grid by 2032 at the earliest, the Department of Energy (DoE) told a House committee last month.
The Philippines plans to create eight small modular reactor units, each capable of producing 150 megawatts (MW), with a total nuclear energy output of at least 1,200 MW providing supply to the grid in the next decade, according to the Philippine Energy Plan.
Commenting on the DoE’s plan, Mr. Cojuangco said it should reevaluate its nuclear energy plans by setting a nuclear output target of 16,000 MW come 2045.
However, he called on the DoE to “exhibit the requisite flexibility to scale up to 32,000 MW” by the same year should the country’s “economic growth necessitate such expansion.”
Mr. Cojuangco, who chairs the House Special Committee on Nuclear Energy, said nuclear energy is important in attaining economic development as it provides stable electricity output capable of meeting the country’s increasing demand.
“If our supply does not increase, all our plans for economic development will remain unattainable,” he said.
“Every time the lights go out, business operations are derailed and precipitate a domino effect on our manufacturing and service industries resulting to diminished economic output,” he added, referring to the economic repercussions of an unstable energy supply. — Kenneth Christiane L. Basilio
Doctor tops latest poll for senators
CARDIOLOGIST Willie T. Ong topped the list of potential candidates for the upcoming 2025 senatorial elections, with former president Rodrigo R. Duterte placing second, according to a March survey conducted by PUBLICUS Asia, Inc.
In the group’s PAHAYAG survey published on Wednesday, 41% of Filipinos said they would vote for Mr. Ong, while 38% supported Mr. Duterte from a field of 54 individuals in the list.
ACT-CIS Rep. Erwin T. Tulfo took third place with 37%, followed by Senator Christopher Lawrence T. Go and former senate president Vicente C. Sotto III, who both garnered 32%; Sen. Ronald M. dela Rosa with 28%; and Sen. Maria Imelda “Imee” R. Marcos and former Manila Mayor Francisco “Isko” M. Domagoso tied with 27%.
Oppositionist former vice president Maria Leonor “Leni” G. Robredo (27%), Defense Secretary Gilberto C. Teodoro, Jr. (26%) and Senator Pilar Juliana “Pia” S. Cayetano (23%) closed out the “Magic 12.”
PUBLICUS interviewed 1,500 registered Filipino voters on March 14 to 18.
Liberal Party spokesperson and former Senator Leila M. de Lima earlier said former Senators Francis “Kiko” N. Pangilinan, and human rights lawyer Jose Manuel “Chel” I. Diokno “intend to be opposition candidates” in next year’s midterm elections. — John Victor D. Ordoñez
Basilan under state of calamity
COTABATO CITY — Drought-stricken Basilan province in the Southern Philippines was placed under a state of calamity on Wednesday, setting to motion initiatives to address the devastating effects El Niño over the last two months.
Basilan Governor Hadjiman H. Salliman and Vice Gov. Yusop T. Alano separately confirmed the decision of the Provincial Board based on multi-sector recommendations for emergency fund releases to rescue ailing agricultural areas experiencing a dry spell.
So far, the drought has destroyed thousands of hectares of corn and rice farms in Basilan, they said.
Given that agriculture is a major source of income for residents of the 11 towns and two cities of Basilan, the Provincial Disaster Risk Reduction and Management Office also backed the state of calamity declaration.
Apart from losses to agriculture, which included a dwindling of production of latex in rubber plantations, the dry spell and sizzling temperatures have caused six wildfires within the last three weeks, razing no less than 500 hectares of bushlands and rubber plantations. — John Felix M. Unson
PHL told to pass cybersecurity laws
LAWMAKERS should push for more laws enhancing the government’s cybersecurity protocols and mechanisms after recent attempts to hack websites of state agencies, according to research group Capstone-Intel Corp.
“The national government, specifically the Department of Information and Communications Technology, should craft cybersecurity protocols and pass laws that cater to protect networks, systems and both government and public data from unauthorized access or cyberattacks,” Nick A. Conti, chief executive officer of Capstone-Intel, said in a statement.
He cited the recent string of cyber hacking incidents against the Bureau of Customs, the Philippine Coast Guard among others, adding that it was “alarming” that no culprit has been caught yet.
Mr. Conti said the government should work with information security consulting companies to beef up cybersecurity systems.
Last month, Senate President Juan Miguel F. Zubiri said the upper chamber aims to approve a bill imposing tougher penalties on online investment scammers, phishers and other fraud schemes by the end of March.
Senate Bill No. 2560, the Anti-Financial Account Scamming Act (AFASA), reached the Senate plenary for debates on Feb. 21.
Information and Communications Technology Secretary Ivan John E. Uy has said the Philippines only had about 200 certified cybersecurity experts in 2022.
Cybersecurity company Kaspersky said the Philippines ranked second among countries with the most cyberattacks worldwide in 2022.
“It’s crucial that the Philippine government maximize these information security firms at this point, considering that the trends in the digital landscape are fast changing and worrying,” Mr. Conti said. “As long as these hacking incidents persist, our public security remains at stake.” — John Victor D. Ordoñez
Jeep phaseout backs pay hike calls
FARES and wages are contentious issues for workers and once traditional jeepneys are phased out and modern transport vehicles charge higher fares, labor groups demand salary hikes.
“There is a study saying fares could reach P40 (due to the transport modernization program). It calls for a wage increase,” Federation of Free Workers (FFW) President Jose “Sonny” G. Matula said on Wednesday.
The possible increase in minimum fares in public transportation “highlights the current call for a wage increase,” Sentro ng mga Nagkakaisa at Progresibong Manggagawa Secretary-General Josua T. Mata told BusinessWorld through Viber.
“We not only think it is possible but very likely that the jeepney fare will increase to at least P40 and perhaps as much as P50 in five years,” IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa told BusinessWorld in a separate Viber message.
Mr. Mata said that the call for a wage increase is based on the need to compensate the purchasing power of workers amid inflation driven by food and transportation costs.
“Any increase in fares will be on top of many other increases in the price of food, rent, water, electricity, communications, and other basic needs,” Mr. Africa said.
With government firm on the April 30 deadline for franchise consolidation, operators of traditional jeepneys will be forced to modernize their units, costing them between P1.6 million to P2.4 million apiece.
They are urging the government to offer them assistance, but either way, the move is seen to drive up base fares in an attempt to recoup initial expenses for upgrading their units.
However, Department of Transportation (DoTr) Secretary Jamie J. Bautista in January said there is no basis for the “P50 minimum fare” increase, this is despite a discussion paper supporting Mr. Africa’s assertion. — Kenneth Christiane L. Basilio
Greenpeace calls for sachet ban
THE GOVERNMENT of Philippine President Ferdinand R. Marcos, Jr. should ban sachets and other single-use plastics, which remain the packaging of choice among the usual suspect corporations, according to Greenpeace.
“Given the continued prevalence of sachets in consumer goods… the Philippine government must treat this as an urgent issue and enact a national ban on sachets and other SUPs (single-use plastics),” Greenpeace said in a statement.
Filipinos use at least 164 million pieces of plastic sachets daily, amounting to 60 billion sachets discarded in the country annually, according to a United Nations Environment Programme report.
Greenpeace urged the government to include sachets in the list of banned products in Philippine waste management laws.
The environmental group also recommended Congress implement a law banning the outright use of single-use plastics at a national level.
The continuous use of sachets as the packaging of choice by companies perpetuates plastic pollution in the country, Greenpeace said.
“Corporations are driving the plastic crisis in the Philippines… with sachets comprising 52% of the country’s residual plastic waste and plastic production,” Greenpeace Philippines Zero Waste Campaigner Marian Frances Ledesma said in a statement.
Corporations must shy away from single-use plastics and transition to “wide-scale reuse and refill” containers in a bid to prevent further plastic pollution, she added.
“The ongoing struggle with sachet waste leads to sachets ending up in landfills, rivers, and beaches,” Greenpeace said, which damages ecosystems and existing wildlife.
Single-use plastics have also polluted water reservoirs, Mark T. Peñalver, executive director of Interfacing Development Interventions for Sustainability, said. “Sachets have found their way to our watersheds polluting our water sources and endangering wildlife and water consumers.”
Improper disposal of plastic waste, such as its burning, introduces toxic byproducts and pollutants into its immediate surroundings. — Kenneth Christiane L. Basilio
Peso weakens further on Fed chief’s remarks
THE PESO depreciated further against the dollar on Wednesday after US Federal Reserve Chair Jerome H. Powell said rates may need to remain elevated.
The local unit closed at P57.18 per dollar on Wednesday, weakening by 18 centavos from its P57 finish on Tuesday, Bankers Association of the Philippines data showed.
This was the peso’s worst finish since its P57.375-per-dollar close on Nov. 22, 2022.
The peso opened Wednesday’s session weaker at P57.10 against the dollar, which was already its intraday best. Its worst showing was at P57.333 versus the greenback.
Dollars exchanged jumped to $1.92 billion on Wednesday from $1.1 billion on Tuesday.
“The peso weakened anew after Fed Chair Powell affirmed prior hawkish policy guidance by other Fed officials,” a trader said in an e-mail.
The dollar remained strong on Wednesday due to Mr. Powell’s comments, as well as escalating tensions in the Middle East, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The dollar edged down but was still within striking distance of its 5-1/2-month high on Wednesday, keeping the yen rooted near 34-year lows after Federal Reserve officials reiterated interest rates are likely to stay higher for longer, Reuters reported.
Top US central bank officials, including Mr. Powell, backed away on Tuesday from providing any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for longer.
Against a basket of currencies, the dollar was last at 106.22, just shy of the five-month peak of 106.51 touched on Tuesday. The index is up 4.8% for the year.
For Thursday, the trader said the peso could rise on profit taking.
The trader sees the peso moving between P57 and P57.30 per dollar on Thursday, while Mr. Ricafort expects it to range from P57.05 to P57.25. — A.M.C. Sy with Reuters