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Index inches lower on last-minute profit taking

REUTERS

THE BELLWETHER INDEX inched lower on Tuesday due to last-minute profit taking and faster-than-expected July inflation.

The Philippine Stock Exchange index (PSEi) slipped by 0.02% or 1.49 points to end at 6,433.24 on Tuesday, while the broader all shares index rose by 0.12% or 4.47 points to finish at 3,520.94.

“The local bourse inched down… as investors took profits at the last minute. The market was initially trading in the green due to bargain hunting after Monday’s steep decline. However, a surge of last-minute profit taking pushed the market into negative territory,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

Wall Street’s decline overnight due to US recession fears and the pickup in Philippine headline inflation last month clouded investor sentiment, Mr. Plopenio said.

“Philippine shares ended with flat performance despite a strong rebound early morning as the investors continue to monitor economic data in both US and Japan especially for signs of a global recession,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Major US stock indexes ended sharply lower on Monday as US recession worries shook global markets and drove investors out of risky assets, Reuters reported. The recession concerns followed weak economic data last week, including Friday’s soft US payrolls report.

The S&P 500 lost 160.23 points or 3% to end at 5,186.33 points; while the Nasdaq Composite lost 576.08 points or 3.43% to 16,200.08. The Dow Jones Industrial Average fell 1,033.99 points or 2.6% to 38,703.27.

Meanwhile, headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported on Tuesday.

This was slower than the 4.7% print in the same month a year ago and was within the Bangko Sentral ng Pilipinas’ (BSP) 4%-4.8% forecast for the month.

However, this was higher than the 4% median estimate in a BusinessWorld poll of 15 analysts conducted last week and was the fastest in nine months or since the 4.9% clip in October 2023.

For the first seven months, inflation averaged 3.7%, above the BSP’s 3.3% forecast for the year.

Sectoral indices were mixed on Tuesday. Mining and oil dropped by 1.75% or 143.46 points to 8,024.09; industrials retreated by 0.54% or 47.92 points to 8,801.81; and financials went down by 0.15% or 3.11 points to 1,963.28.

Meanwhile, property increased by 0.6% or 14.99 points to 2,508.59; services rose by 0.38% or 7.58 points to 1,983.42; and holding firms went up by 0.09% or 5.44 points to 5,627.89.

Value turnover dropped to P5.12 billion on Tuesday with 419.01 million shares changing hands from the P5.64 billion with 638.56 million issues traded on Monday.

Decliners outnumbered advancers, 97 versus 84, while 56 names were unchanged.

Net foreign selling climbed to P635.78 million on Tuesday from P621.93 million on Monday. — R.M.D. Ochave with Reuters

Palay yield target set at 7.5 metric tons per hectare

A farmer threshes newly harvested palay grains at a ricefield in Mogpog, Marinduque in central Philippines, March 22, 2016. — REUTERS

THE Department of Agriculture (DA) said it set the yield target at 7.5 metric tons (MT) of palay per hectare for the Masagana Rice Industry Development Program (MRIDP).

“We’re recalibrating the program to identify areas for enhancement, including the distribution of improved seed, expansion of irrigation systems, and adjustments to rice cropping schedules,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. said in a statement on Tuesday.

The current national average yield is 4.17 MT per hectare, equivalent to 84 50-kilogram bags of palay, or unmilled rice.

The average yield of palay in irrigated areas is 4.51 MT. In non-irrigated areas it averages 3.34 MT.

“As we move forward, our aim is not just to increase productivity but also to ensure sustainability and resilience in our agricultural sector,” Mr. Laurel added.

The upgraded target could translate to annual rice production of more than 25 million MT, even if the target yield is achieved only in the 3.39 million hectares of irrigated farmland.

The DA has said it expects palay production this year of 20.44 million MT, up from 20.05 million MT in 2023.

In the first half, palay production declined 5% year on year to 8.53 million MT, according to the Philippine Statistics Authority.

“We must adopt a more scientific approach to farming to boost output and manage costs effectively,” Mr. Laurel added.

The MRIDP aims to stabilize the rice supply at between 24.99 million MT and 26.86 million MT a year, in the process lowering growth in rice prices to less than 1% annually.

It also seeks to increase farmer incomes by 54% and ensure adequate reserves held by the National Food Authority.

“With increased production, farmers will enjoy gains from their labor while consumers should enjoy lower food prices,” Mr. Laurel said. — Adrian H. Halili

Exporters batting for exemption from BoC container tracking system

REUTERS

By Justine Irish D. Tabile, Reporter

EXPORTERS said they are in talks with the Bureau of Customs (BoC) to exempt their cargoes from the Electronic Tracking of Containerized Cargo  (E-TRACC) system, saying its shipments are already tracked.

Philippine Exporters Confederation, Inc. President Sergio Ortiz-Luis, Jr. said the organization is in talks with the BoC “towards the exemption of exports from this because most of our logistics providers use GPS (global positioning system),” Mr. Ortiz-Luis told BusinessWorld via Viber.

The exporters’ comments come after the Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) also flagged the redundancy of E-TRACC.

According to SEIPI President Danilo C. Lachica, the system will also cost exporters P1 million to P2 million on top of the rising logistics costs.

“Plus, there has been no record of export diversion to the domestic market because exporters need to ship these goods; otherwise, they don’t get paid. So E-TRACC is redundant and extra cost and time for exporters,” he added.

Launched in 2020 through Customs Memorandum Order No. 04-2020, E-TRACC enables real-time monitoring of inland movements of containerized goods.

With the use of a GPS-enabled tracking device, the system secures the transport of the goods and prevents diversion and tampering.

In July 2022, the BoC fully implemented E-TRACC on all containers processed with no exceptions. 

British Chamber of Commerce of the Philippines Executive Director Chris Nelson told BusinessWorld that the chamber understands why there is a request for the system to be waived for exporters, where cargo diversion is not a concern.

“The issue is obviously for imports … While we haven’t heard particularly of this system from our companies, what I would say is that we support things that strengthen and support legitimate sales,” Mr. Nelson said in a phone interview.

“In that context, we are very strong supporters of the Anti-Agriculture Economic Sabotage Act, although that’s different, it’s about supporting and making sure that genuine imports that support the economy are there,” he added.

He cited the importance of the government to take action against smuggling.

Confederation of Wearable Exporters of the Philippines Executive Director Maritess Jocson-Agoncillo told BusinessWorld that E-TRACC is redundant, noting that the industry  has measures in place to track containers.

“The system flow has been efficient … once containers are locked and released from the port of origin,” Ms. Jocson-Agoncillo said via Viber.

“We have not experienced any hijacking, or even attempts, to open containers in transit,” she added.

PHL urged to boost long-term El Niño readiness — UN agency

RENZO D SOUZA—UNSPLASH

By John Victor D. Ordoñez, Reporter

THE PHILIPPINES needs to work on long-term preparations and inter-agency communication to mitigate the impact of drought and dry spells during El Niño episodes, according to the United Nations (UN) Office for the Coordination of  Humanitarian Affairs (OCHA) Philippines.

At a Senate hearing of the environment, natural resources, and climate change committee, UN OCHA Philippines Head Manja Vidic described El Niño as a slow-onset disaster requiring a different approach to preparations compared to typhoons.

“El Niño becomes a crisis because we wait too long, but we have enough time and months to prepare for this compared to typhoons,” she said.

“It’s probably a governance issue rather than something that is purely a natural disaster issue.”

She said her office has noted some sound practices in response to El Niño, singling out the information caravans organized by Bicol local governments.

“The LGUs did go ahead and communicated with the tools it had in place and engaged with the local population,” Ms. Vidic said.

Farm damage caused by El Niño was reckoned at P15.3 billion, with 333,195 farmers and fisherfolk affected by droughts and dry spells, according to the Department of Agriculture (DA).

In its final farm damage bulletin connected to El Niño, the DA said crop losses amounted to 784,344 metric tons, spanning farmland of 270,855 hectares.

About 184,182 hectares of crops were deemed recoverable, it added.

Palawan, Iloilo, Camarines Sur and Occidental Mindoro were most affected by these dry spells and drought, the DA said.

In June the government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration), announced the end of El Niño after conditions in the tropical Pacific returned to El Niño Southern Oscillation neutral levels, meaning neither El Niño nor La Niña was in effect.

Senate ratifies bicam report of farm smuggling measure

BUREAU OF CUSTOMS

THE SENATE approved and ratified on Tuesday the bicameral conference committee report on an amendment stiffening the penalties on smugglers and hoarders of agricultural products.

At a plenary session, Senator Cynthia A. Villar, who filed the Senate version of the bill, said the harmonization of Senate Bill No. 2432 and House Bill No. 9284 resulted in the inclusion of the Department of Finance in the Anti-Agriculture Economic Sabotage Enforcement Group, to be implemented when the measure becomes law.

“The reason for this is to prevent connivance between smugglers and employers of the Bureau of Customs,” she said.

“The problematic system within the Bureau of Customs is one of the reasons why RA 10845 or the original Anti-Agricultural Economic Sabotage Law… proved to be inadequate.”

The Senate approved the measure on final reading on Dec. 11, while the House of Representatives passed its counterpart bill on Sept. 27.

The bill will lower the threshold on instances of smuggled agriculture and fishery products to P1 million from P10 million for the violation to be classified as an act of economic sabotage.

Violators could face life imprisonment and a fine of thrice the value of agricultural and fishery products smuggled.

The government has been foregoing at least P200 billion in revenue each year to smuggling, Ms. Villar has said, citing government estimates.

Later Tuesday, the House of Representatives also ratified the bicameral conference committee report by voice vote. — John Victor D. Ordoñez

Livestock dev’t bill hurdles Senate on second reading

REUTERS

THE SENATE approved on second reading on Tuesday a bill seeking to develop a modernization plan for the livestock, poultry and dairy industries.

Senate Bill No. 2558, filed by Senator Cynthia A. Villar, calls for a livestock, poultry, and dairy competitiveness fund to be set up with funding from import tariffs of P7.8 billion a year for the next 10 years.

It also calls for the establishment of the Office of the Undersecretary of the National Livestock, Poultry, Dairy, and other Animals Program to oversee policy geared at boosting production in these industries.

“For the longest time, the Livestock, Poultry and Dairy sector has been left to be run by the private sector. With this Act, the government will actively support and participate in the development of the sector,” Ms. Villar said in May.

Farm output growth was little changed in the first quarter at 0.05%, amid a prolonged dry spell brought on by El Niño.

Poultry production grew 5.9% year on year during the period, slowing from 7.8% in the fourth quarter of 2023. — John Victor D. Ordoñez

PCSO to grow lotto network after POGO ban

PHILSTAR FILE PHOTO

THE Philippine Charity Sweepstakes Office (PCSO) said it is adding more lotto outlets to offset funding it will lose when the ban on Philippine Offshore Gaming Operators (POGOs) goes into effect by year’s end.

The ban will affect how much money the PCSO receives from the Philippine Amusement and Gaming Corp., PCSO Chairman Felix P. Reyes said in a budget briefing at the House of Representatives. 

“Our objective is to increase revenue… and we’re heading towards adding more betting platforms,” he said.

“In a previous board meeting, we approved (a policy allowing) us to install lotto outlets in chains of businesses such as remittance centers,” he added.

The National Government will give up around P20 billion as a result of the POGO ban, according to Deputy Speaker and Quezon Rep. David C. Suarez.

President Ferdinand R. Marcos, Jr. during his annual address to Congress in July ordered the closure of the POGO industry, citing its links to criminality and financial scams.

The PCSO is also looking into introducing a new form of lotto “to bring in more sales for the agency,” Mr. Reyes said.

“We are launching a new variant named Lotto Bilyonaryo, and we’re hoping to implement it as soon as possible,” he said.

He added that the PCSO is also planning to invest some of its sales to further boost revenue.

“Under (the PCSO) charter, we’re authorized to invest a percentage of our net receipts,” Mr. Reyes said. “That’s why we’re looking for potential investments that would yield profits. We’re waiting for an opportunity to invest.”

PCSO’s retail receipts amounted to P30.9 billion in the first quarter of 2024, according to its presentation to the House appropriations panel. — Kenneth Christiane L. Basilio

Water resources department expected to boost access to sanitation services

REPORTS.MANILAWATER.COM

THE creation of a Water department will concentrate responsibilities currently held by many agencies in one body, improving access to water and sanitation services, the National Economic and Development Authority (NEDA) said.

“For NEDA’s perspective, we need one responsible institution… it’s really the optimal solution,” NEDA Assistant Secretary Roderick M. Planta said at the SME Finance Forum on Tuesday.

The measure seeking to create a Department of Water Resources is among the list of priority bills identified by the Marcos administration, with approval by Congress expected before June 2025, according to the Legislative-Executive Development Advisory Council. 

“We’d love the support from the private sector to make that happen,” Mr. Planta added.

Under the NEDA’s Philippine Water Supply and Sanitation Master Plan published in 2021, the Philippines will need an estimated P1.07 trillion until 2030 to achieve universal access to water supply and sanitation.

The plan also supports the creation of the Department of Water Resources, which would “unify our fragmented water sector.”

“Technically, how do you sort of encourage private sector participation when the regulatory environment is confusing?,” Mr. Planta said.

Griselda G. Santos, Water.org regional director for Southeast Asia, noted the progress that has been made, but added that things need to be done with a bill pending to attain sustainable development goals by 2030.

“The fact that there’s a law lodged in Congress right now (is) progress itself, but it’s a question of when. In the meantime, do we wait for that law to be in place? Because it’s a whole process, right?,” she told reporters.

Ms. Santos said it would take billions of dollars per year to reach sustainable development goals by 2030.

“We cannot wait for the law to pass. We need some action between the public and private sector,” she said.

Alberto E. Pascual, president and chief executive officer of Philippine Guarantee Corp., said that lending to high-risk projects such those in the water sector might be addressed by an agency in which the proper authority is lodged.

“If there’s an agency like maybe the Department of Water (that) will orchestrate everything and will dictate the direction of where financing will be needed, the private banks and other lenders will take the cue,” Mr. Pascual said.

“We, as the guarantee institution of the government, provide sovereign guarantees; we can mitigate the risk in lending to these water projects, because water projects are very complex, and there are a lot of risks,” he added. — Sheldeen Joy Talavera

Composting program eyed to cut fertilizer dependence

JICA PHOTO

THE Department of Agriculture (DA) is planning to establish composting facilities, with the aim of reducing farmer dependence on expensive fertilizer.

“This is one method to minimize groundwater pollution and restore soil fertility, thereby reducing the vulnerability of marginal farmers to the high cost of chemical fertilizers,” the DA said in Memorandum Circular No. 31.

“With regular applications, farms and households would be less dependent on chemical fertilizers and pesticides, significantly decreasing production costs and increasing returns on investment,” the department said.

The project will be implemented via the Bureau of Soils and Water Management and DA Regional Field Offices.

The DA said composting packages include one rotary composter and a biomass shredder with a maximum capacity of one ton per load.

“The machine has a larger capacity to produce a mass volume of compost fertilizer, making it ideal for larger scale composting needs and promoting more sustainable production practices,” the DA said.

Recipients of the technology are those participating in the National Rice Program, National Corn Program, National Organic Agriculture Program, and High-Value Crops Development Program.

Recipients can be local government units, registered civil service organizations, state universities and colleges, learning sites and farm schools, and DA research stations or bureaus and agencies.

Qualified recipients are required to file regular production reports. — Adrian H. Halili

A close miss for EJ Obiena in Mondo Duplantis’ world

EJ OBIENA — REUTERS

PARIS, France — Heartbreak in the pole vault pit.

In a night of incredible feats at the Stade de France Monday, EJ Obiena tried to come up with something of his own but ended up empty, with his last clean vault good for just fourth place.

Long before the night ended in the grand stadium, Mr. Obiena was confined down the floor, oblivious from the crowd of over 80,000 letting out a deafening roar as Armand “Mondo” Duplantis flew to the night sky for a record feat.

Pole vault is Mondo’s world.

“The reality of the sport is not everyday you’re gonna jump high, unless you’re Mondo,” said Mr. Obiena.

The Filipino ace could do just 5.90m in the championship he long waited for, his three failed attempts at 5.95 closing the door on his Olympic medal hope.

“It’s close but not close enough, though,” said Mr. Obiena, yielding the bronze to Greek Emmanouil Karalis via the countback tiebreak. The silver went to American Sam Kendricks.

Mr. Karalis was perfect until three misses — one at 5.95 and two at 6.00. Mr. Obiena, on the other hand, missed a first try at 5.80 before flunking thrice at 5.95 — a heartbreaker for the World No. 2 hoping to medal in his second Olympic appearance.

“Life or sports can be beautiful but at the same time can be brutal,” said Mr. Obiena who couldn’t be consoled by his improvement from 11th in Tokyo to fourth in Paris.

“In this meet, what matters is a medal. Fourth place is the same as 11th. I fell short and that’s it,” he said.

Mr. Obiena said he’ll take it a day at time as he decides on his future.

“We’ll see. I will talk to my team, let’s see how’s my health overall, let’s see how it goes if I’m healthy. If it’s not doing any more damage to myself, maybe I will continue the season,” said Mr. Obiena, with a season that includes a stop in Manila in September.

“I don’t really know. Right now, I really need to process everything. Let’s see what the days will bring,” he added.

For the Manila event, Mr. Obiena is looking to invite all the finalists here. “I think the country deserves that,” he said.

Weeks before the Olympics, he hinted going through some health problem. But he said he felt fine, and the problem didn’t bother him in the competition.

It’s just about missing 5.95. It’s the make-or-break deal for Mr. Obiena.

Going down with the cross bar with him, Mr. Obiena missed a moment with the stars of world athletics in the medal ceremony.

In this great night, Mr. Duplantis was the closing act, breaking the world record for the ninth time — but the first in the Olympics. He cleared 6.25m to electrify the crowd. He earlier sealed the win at 6.00.

There were also the moments of Kenyan Beatrice Chebet in 5,000 meters, century dash king Noah Lyles starting his quest in 200m, US discus thrower Val Allman winning a second straight Olympic gold and Keely Hodgkinson winning the 800m for the first gold in the track meet for Great Britain.

It’s a close miss for Mr. Obiena and the Philippines. — Nelson Beltran

Unbeaten Chargers shock HD Spikers in four sets

AKARI CHARGERS — FACEBOOK.COM/PREMIERVOLLEYBALLLEAGUE

Games Thursday
(PhilSports Arena)
1 p.m. — Farm Fresh vs PLDT
3 p.m. — Creamline vs Nxled
5 p.m. — Galeries Tower vs Chery Tiggo

AKARI showed its shocking emergence as a title contender was no fluke as it stunned Cignal, 15-25, 25-17, 25-19, 25-22, Tuesday to sweep Pool B in the Premier Volleyball League Reinforced Conference at the PhilSports Arena.

American Oluoma Okaro spearheaded the Chargers with 24 points that she laced with 22 spikes while Ivy Lacsina and Ced Domingo spewed 14 and 10 hits, respectively, to hike their record to a pristine 5-0.

Akari’s transformation from a team that has never placed higher than seventh place in its first five conferences in the league can be greatly attributed to its transfer of Japanese Taka Minowa and a slew of players including Ivy Lacsina and Kamille Cal from sister team Nxled.

And Mr. Minowa loves what he is seeing.

“Actually we have good players. I want to make improvements for everyone, not only this conference, but also for the future of Akari,” said Mr. Minowa, whose wife is Jaja Santiago. It was a stinging defeat for the HD Spikers, who came into the game the favorites after retaining a veteran-laden squad.

Instead, Cignal HD Spikers sputtered to 4-1. — Joey Villar

Cousins, Zamboanga beat Macau Black Bears, 93-81

DEMARCUS COUSINS — FACEBOOK.COM/JOHNMDALIPE

ANOTHER high-caliber center has taken his talents to the Philippines. And he did not disappoint.

Following the footsteps of former NBA Defensive Player of the Year Dwight Howard with Strong Group, Demarcus Cousins debuted in style as Zamboanga Valientes beat the visiting Macau Black Bears, 93-81, in the opener of the The Asian Tournament grand finals at the Zamboanga City Coliseum.

The 6-foot-10 Mr. Cousins saw limited action in his first game with the Philippine team but still made his presence felt to complement UAAP Most Valuable Player Malick Diouf in Zamboanga’s hulking frontline.

A four-time NBA All-Star, Mr. Cousins started for the Valientes with three points, four rebounds and an assist in seven minutes of play following his arrival in the country last weekend.

With the attention of the Black Bears on Mr. Cousins, Mr. Diouf ran roughshod on the visitors by hauling down 32 points, 29 rebounds, four assists, a steal and a block to show the way for Zamboanga.

Ricky Bryce added 26 points and 15 rebounds as Mike Tolomia chipped in 15 for Zamboanga, which turned it up in the second half to go 1-0 in the pool play.

Former PBA standouts Rudy Lingganay, Mac Belo and Franky Johnson also played instrumental for the Philippine representative owned by Junnie Navarro.

Zamboanga will next play the Naic Aces and Vanta Black Dragons to wrap up the eliminations with hopes of making it to the semis for the ultimate prize after four legs.

Tyrone Nesby IV led Macau, winner of the first leg, with 19 points. — John Bryan Ulanday

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