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Shares rally to 6,900 level on strong earnings

REUTERS

THE MAIN INDEX climbed to the 6,900 level anew on Thursday to end February on a strong note as sentiment was lifted by strong corporate earnings and as investors awaited the release of key US data.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.99% or 68.19 points to close at 6,944.71 on Thursday, while the broader all shares index went up by 0.48% or 17.40 points to end at 3,609.06.

“This Thursday, the local market rose by 68.19 points (0.99%) to 6,944.71. This is as investors continue to appreciate the fourth quarter and full-year 2023 earnings reports, as many have posted better results compared to the preceding year,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

The PSEi ended higher ahead of the release of the January US personal consumption expenditures (PCE) price index report overnight, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“This is the preferred inflation metric by the Federal Reserve, [and is] a source of new leads for the market, especially in terms of future Fed rate hike expectations,” Mr. Ricafort said.

“Philippine shares continued to outperform to close the month of February, buoyed by the latest MSCI rebalancing, while other investors weighed the latest earnings results and looked ahead to the Fed’s favored inflation gauge,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Forecasts are for a 0.4% gain in the PCE price index, Reuters reported.

Markets have largely priced out a rate cut at both the Fed’s March and May meeting, CME’s FedWatch Tool showed. The chance of a cut in June sits around 51%.

At home, the majority of sectoral indices closed higher on Thursday. Financials rose 2.13% or 42.82 points to 2,048.47; holding firms went up by 1.61% or 103.96 points to 6,551.37; industrials increased by 0.98% or 90.78 points to 9,341.19; and services inched up by 0.15% or 2.63 points to 1,757.91.

Meanwhile, property declined by 1.42% or 40.95 points to 2,842.93, and mining and oil fell by 0.43% or 37.39 points to 8,510.83.

“Among the index members, Aboitiz Equity Ventures, Inc. was at the top, climbing 5.26% to P53.00. Converge ICT Solutions, Inc. lost the most, dropping 4.26% to P9.00,” Mr. Plopenio said.

Value turnover rose to P11.96 billion on Thursday with 774.40 million issues changing hands from the P4.73 billion with 379.4 million shares traded the prior day.

Decliners outnumbered advancers, 107 versus 81, while 41 names closed unchanged.

Net foreign buying went up to P436.39 million on Thursday from the P27.86 million on Wednesday. — R.M.D. Ochave with Reuters

Marcos promises to defend Philippine sovereignty amid rising China tension

Philippine President Ferdinand R. Marcos, Jr. delivers at a speech at the Australian Parliament in Canberra, Australia on Thursday, Feb. 29, 2024. — BONGBONG MARCOS/ FACEBOOK

By Kyle Aristophere T. Atienza, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. told the Australian parliament on Thursday he would not allow any foreign power to take “one square inch” of the country’s territory, and that Manila was firm in defending its sovereignty.

“I will not allow any attempt by any foreign power to take even one square inch of our sovereign territory,” he said in a speech.

Australia and the Philippines started their first joint sea and air patrols in the South China Sea in November, aimed at countering an increasingly assertive China, which claims the entire sea as its own.

The South China Sea is a conduit for more than $3 trillion (P168.5 trillion) worth of ship-borne commerce each year and is a major source of tension between the Philippines and China.

The Philippines accuses China of committing aggressive acts inside its exclusive economic zone (EEZ). A United Nations-backed arbitration court based in the Hague in 2016 ruled that China’s claims inside the Philippines’ EEZ had no legal basis — a decision Beijing has rejected.

China has chided the Philippines for encroaching on what it says is its territory.

Protecting the area is important to global stability, Mr. Marcos said.

“The protection of the South China Sea as a vital, critical global artery is crucial to the preservation of regional peace and, I dare say, of global peace,” he said. “We have an abiding interest in keeping our seas free and open, and in ensuring unimpeded passage and freedom of navigation.”

Mr. Marcos said the Philippines is now on the frontline of a battle to keep stability in the Indo-Pacific region.

He issued the remarks as the Philippines and Australia signed deals to boost their ties in the maritime domain and critical technology.

“As in 1942, the Philippines now finds itself on the frontline against actions that undermine regional peace, erode regional stability and threaten regional success,” according to a copy of his speech provided by the presidential palace.

“Then as now, the security and continued prosperity of the region — of countries like Australia — relies upon that effort,” he added.

One of the deals signed by the two countries seek to enhance information-sharing and interoperability between their maritime agencies, Mr. Marcos said in a press briefing with Australian Prime Minister Anthony Norman Albanese. 

The second deal seeks to promote the open and secure use of cyberspace between the two countries, while the third calls for cooperation between their national competition commissions.

Under the deal, the two countries would share practices and pursue capacity-building “on matters involving merger regulations, competition laws and investigative techniques relevant to implementing competition laws,” the palace said in a statement.

Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation, said Philippine efforts to expose Chinese bullying in the South China Sea has been “yielding tangible gains.”

“President Marcos’ approach to the West Philippine Sea requires strong international support,” he said in an X message. “He has been pushing for expanded joint patrols involving not just the US but also other regional military powers like Japan and Australia.”

Jeffrey Ordaniel, director for maritime security at Pacific Forum and an associate professor of international security studies at the Tokyo International University, said deepening Philippine-Australia ties could lead to a four-way security deal involving the US and Japan. 

“Closer Australia-Japan, Philippine-Japan and Philippine-Australia relations are prerequisites to forming a more formal quadrilateral coordination on common security concerns, in particular challenges in the South China Sea and over China’s potential invasion of Taiwan,” he told BusinessWorld in an X message.

“Japan and Australia are already important security assistance providers of the Philippines, complementing US efforts in enabling Manila to play bigger security roles,” he added.

Australia should push its defense companies to help the Philippines find its niche in the global arms trade, Joshua Bernard B. Espeña, vice president at Manila-based International Development and Security Cooperation, said in a Facebook Messenger chat.

Don Mclain Gill, who teaches international relations at De La Salle University, said Philippine-Australian partnership has grown tenfold given their shared goal of keeping the Indo-Pacific free.

Mr. Marcos was in Australia on an official visit, before he attends a special summit of the Association of Southeast Asian Nations (ASEAN) in Melbourne next week. — with Reuters

Marcos urged by Aussie senators to stop human rights violations in PHL

PHOTO COURTESY OF JAYSON LAMCHEK

By Kyle Aristophere T. Atienza, Reporter

AUSTRALIAN senators on Thursday hit President Ferdinand R. Marcos, Jr. for continued human rights violations in the Philippines.

Greens Party Senator Janet Rice, who was present during Mr. Marcos’ speech before the Australian Parliament in Canberra, pulled out a placard that read: “Stop the human rights abuses.”

Ms. Rice, who was escorted out of the building, said it was a shame that the government of Mr. Albanese, a Labor politician, invited the Philippine leader despite human rights violations and persistent corruption in the Philippines.

“Under President Marcos, corruption in the Philippines is getting worse,” she said in an X post. “There are hundreds of political prisoners, and anti-terrorism laws are used as legal cover for extrajudicial killings.”

The Presidential Communications Office did not immediately reply to a Viber message seeking comment.

Ms. Rice said it’s shocking that Labor and Liberal senators “would rather censure me than call out President Marcos’ lethal regime.” “They must do better to represent Australia’s values.”

The Australian Greens Party is the “most powerful third force” in Australian politics, holding 11 of 76 seats in the Senate.

Other Green senators including Jordon Steele-John, David Shoebridge and Barbara Pocock boycotted Mr. Marcos by holding protests outside.

“The Parliament is once more being used to launder the political reputation of those involved in serious human rights abuses,” Mr. Shoebridge said in a post on X. “This time it is Bongbong Marcos, president of the Philippines.”

“The deep, cruel legacy of the Marcos regimes — senior and junior — have crushed community, peasant, women’s, trade union and human rights activists in the Philippines,” he said. “We marked this legacy today as he visited Parliament.”

Mr. Marcos took office in 2022, more than 30 years after his late dictator-father was ousted by a popular street uprising in February 1986.

Human Rights Watch said rights violations in the Philippines remain rampant even as the country is now out of the hands of Rodrigo R. Duterte, whose war on drugs killed thousands.

“Drug-related killings implicating the police have continued under Marcos, if at a lower rate,” according to the group, adding that the Marcos government refuses to cooperate with the International Criminal Court’s investigation of the war on drugs.”

“Arbitrary arrests, enforced disappearances and extrajudicial killings of activists and human rights defenders persist,” it said, adding that the Philippine state continues the practice of branding activists and politicians as communists.

Emy Gasendo, a Filipino-Australian academic at the Australian National University, said Filipinos traveled from as far away as Brisbane, Melbourne and Sydney to join the protest outside the Parliament in Canberra. 

“Some drove as early as midnight,” he said in an e-mail.

Rommel Yamzon, secretary-general of Philippine-based rights group I-Defend, said the government has yet to deliver its promise to the United Nations (UN) Joint Program, which was started by the UN Human Rights Council to address human rights abuses.

“Concrete resolutions aimed at strengthening domestic investigative and accountability mechanisms, improving data gathering on alleged police violations and their impacts on addressing systemic issues of impunity remain deficient,” he said via Messenger chat.

Human rights group Karapatan called on the Australian people “to continue to support calls for justice and to hold Marcos accountable for the dire human rights situation in the Philippines.”

“The continuing human rights and international humanitarian law violations under Marcos, the prevalent climate of impunity and the Marcos family’s history of plunder and rights violations during Marcos Sr.’s dictatorship are more than enough reasons why the Australian people should denounce this regime,” Karapatan Secretary-General Cristina Palabay said via Messenger chat.

Mr. Albanese assumed his post as prime minister in 2022, ending nine years of conservative rule. He had committed to human rights reforms during the campaign.

Human Rights Watch said Australia should be concerned over the “rising harassment and violence against labor leaders and union organizers in the Philippines.”

The University of the Philippines Third World Studies Center’s Dahas project earlier noted that a year into Bongbong’s term, 342 people were killed by state agents in connection with illegal drugs.

Earlier this month, Dahas said at least 28 people were killed in the anti-narcotics campaign in January.

“Albanese should urge Marcos to act to stop these abuses and thoroughly investigate recent killings,” Human Rights Watch said.

Manila cites strict gun control law ahead of elections

STOCK PHOTO | Image by Carlos Andrés Ruiz Palacio from Pixabay

THE PHILIPPINES is enforcing a strict gun licensing system, Trade officials told the United Nations (UN) on Wednesday, amid expectations of an uptick in gun-related violence as the campaign period for next year’s midterm elections draws near.

The country is working on an electronic licensing platform for firearms, Assistant Director Domina Pia Salazar told UN member-states in Geneva during a meeting on the implementation of the Arms Trade Treaty, the Department of Foreign Affairs (DFA) said in a statement on Thursday.

“The importance of transparency and good practices in reporting to build trust and confidence among states in preventing the proliferation and diversion of illicit arms were also underscored in the meetings,” it said.

The Philippines has grappled with rampant election-related violence through the years, usually between candidates from elite families.

Nineteen people died and 19 others were hurt in the village and youth council elections in October, according to the Commission on Elections.

The country ratified the Arms Trade Treaty in March 2022, which seeks to prevent illegal gun trading and regulate conventional firearms trade. It took effect three months later.

The country enacted the Strategic Trade Management Act in 2015, which set up the Department of Trade and Industry Strategic Trade Management Office, which issues import and export permits for conventional weapons.

Ms. Salazar said her office would work closely with the Philippine National Police’s Firearms and Explosives Office to monitor import and export permits for weapons.

Conventional weapons are widely used and designed for military purposes, without being classified as weapons of mass destruction, according to the UN Office on Drugs and Crime website. These include small and light guns, battle tanks, armored combat vehicles, missiles and missile launchers.

Philippine Foreign Affairs Secretary Enrique A. Manalo in December said the country is pushing the creation of international guidelines on the ethical use of autonomous weapon systems powered by artificial intelligence (AI), saying their improper use could risk innocent lives.

Autonomous weapons are programmed to kill a specific target. The weapon is deployed to an environment where its AI searches for the target using sensor data such as facial recognition, according to autonomousweapons.org.

The country is working with 14 other countries on a draft protocol and roadmap that will outlaw these weapon systems under the Convention on Certain Conventional Weapons.

Mr. Manalo has said the Philippines is eyeing a nonpermanent seat in the 15-member UN Security Council in 2026, saying the country is qualified given its peace-building efforts. — John Victor D. Ordoñez

Measures to deter misuse of PS-DBM sought

IMELDA “IMEE” R. MARCOS — SENATE PRIB

By John Victor D. Ordoñez, Reporter

IF THE Department of Budget and Management’s Procurement Service (PS-DBM) is not to be abolished, then Congress must come up with ways to stop agencies from using it as a “parking lot” of their unused funds, Senator Maria Imelda “Imee” R. Marcos said on Thursday.

She reiterated that the PS-DBM has already outlived its use and could be counterproductive for the government to keep around.

“We already have small item bidding and sometimes it is cheaper to procure (items) locally because there won’t be shipping and installation,” Ms. Marcos, speaking partly in Filipino, told a media forum.

“If they (lawmakers) plan on keeping the PS-DBM, we really need to look at this issue and prevent it from being used to park funds,” she added.

The Senate is in the middle of considering amendments to the Government Procurement Reform Act to address delays in the delivery of goods and services.

Senate Bill No. 1123, filed by Ms. Marcos, seeks to abolish the PS-DBM since funds are often stalled at the procurement stage.

The Senate Finance Committee is also deliberating on Senate Bill No. 2466, written by Senator Juan Edgardo “Sonny” M. Angara, which aims to analyze current procurement modes and establish a single electronic procurement portal.

The PS-DBM, mainly tasked to operate a centralized procurement system for common office supplies and equipment for government agencies, was put in the spotlight in 2021 after state auditors flagged irregularities in the purchase of medical supplies in 2020 using emergency funds amid the coronavirus pandemic.

In August, the Ombudsman ordered that graft charges be filed against seven former and sitting officials of the PS-DBM and recommended their dismissal from government service over the anomalous purchase of P4.16 billion worth of coronavirus test kits from Pharmally Pharmaceutical Corp. in 2020.

Rushing Charter change opposed

BW FILE PHOTO

LAWMAKERS from the Makabayan bloc said on Thursday that Congress should not be rushing amendments to the 1987 Constitution for the sake of having a referendum by next year’s mid-term elections.

“Don’t rush (amending) the constitution, this is the basic law of the land,” Deputy Minority Leader and Party-list Rep. France L. Castro, speaking partly in Filipino, told a media conference. “The amendments included in “Cha-cha” are extensive and shouldn’t be discussed lightly… It should not be included in the ballots for the midterm elections because it is cost-efficient.”

Earlier, the House of Representatives said that it aims to obtain a vote on the Resolution of Both Houses No. 7 for changes to the economic provisions of the Charter before the Holy Week break next month.

The Makabayan bloc has been against Charter change (“Cha-cha”), saying it is not the proper time to do so. 

President Ferdinand R. Marcos, Jr. had said the “Cha-cha” plebiscite could be alongside the midterm elections in May 2025.

But for the Makabayan bloc, attempts to change the Constitution require consulting and educating the people on the effects of the amendments. “The people should be included in the processes related to the issues sought after by changing the Constitution,” Party-list Rep. Arlene D. Brosas, speaking in Filipino, told the same press conference.

Commenting on the issue, WR Numero Numero president and chief executive officer Cleve Kevin Robert V. Arguelles said a Charter amendment plebiscite should place important consideration on ensuring meaningful participation from the constituents.

“The costs of the plebiscite should not be the overriding consideration in this case,” he said in a Viber message. “In amending the Constitution, the most important consideration is to ensure that the conditions of the plebiscite will be conducive to well-informed participation of all.”

Voting alone during an election is already a difficult task as an average voter has to pick from hundreds of candidates across national and local posts.

“They may likely to resort to shortcuts and be vulnerable to partisan noise and propaganda than really think deeply and fully about their choices as they exercise their ultimate power as citizens,” Mr. Arguelles said.

Filipinos are encouraged to study the amendment proposals sought on charter changes, Michael Henry L. Yusingco, a lawyer and a policy analyst, said in a Facebook Messenger chat.

“We cannot simply rely on lawmakers for this decision. We have to do the hard yards ourselves and study the amendment proposals on offer,” he said. “We have to ask ourselves, can we trust lawmakers with the responsibility of determining the actual legal framework for liberalizing these sectors?”

Party-list Rep. Raoul Danniel A. Manuel, also Makabayan bloc, told the press conference that the “economic Cha-cha” is a presidential initiative.”

“This economic Charter [change] is the President’s initiative, and we cannot deny that the remarks of the President and him acting as liaison between the discussions of the Senate and House leaders reveals his hand (in Charter change moves),” said Mr. Manuel in mixed English and Filipino. — Kenneth Christiane L. Basilio

Groups decry rights violations

PHILIPPINE STAR/KRIZ JOHN ROSALES

VIOLATIONS of international humanitarian law (IHL) by Philippine state forces allegedly happened recently in Negros Occidental, Bohol and Panay Island, adversely affecting over 300 civilians, the International Coalition for Human Rights Philippines (ICHRP) claimed on Thursday.

It said airstrikes were carried as ground forces of the 79th Infantry Battalion of the Philippine Army hunted New People’s Army rebels in the town of Escalante, Negros Occidental last Feb. 22.

The ICHRP condemned the use of attack helicopters that forced out the civilian population off in the village of Pinapugasan and pointed out that it was a blatant violation of the IHL.

Malacañang, the Armed Forces of the Philippines (AFP), and the Commission on Human Rights (CHR) did not immediately respond to Viber requests for comment.

In a separate statement, rights group Karapatan tagged the AFP’s Task Force Bohol and the army’s 47th Infantry Battalion in the alleged summary execution of five NPA members in Bilar town, Bohol on Feb. 23.

“In Panay island, an encounter between troops of the 61st IBPA and the NPA in the early morning of February 28, 2024 in a forested area of Barangay Torocadan, San Joaquin, Iloilo has been used by the military to launch artillery attacks at around 3 a.m., terrorizing the affected barangays,” the group added. — Chloe Mari A. Hufana

Lawmaker questions nat’l ID woes

PHILSTAR FILE PHOTO

THE PHILIPPINES still does not have a working national ID system six years after it was enacted, a lawmaker pointed out on Thursday as he sought an explanation from the Philippine Statistics Authority (PSA) for the program’s slow rollout.

“It’s been almost six years since the national ID was enacted into law and I was one of those lawmakers who first filled in the PSA forms to have one. I’ve all but given up on waiting for my national ID. It seems they forgot about issuing it,” Surigao del Norte Rep. Robert Ace S. Barbers, one of the principal authors of RA 11055, said in a statement released to media.

He also questioned the lack of the bearer’s signature on the national ID, which he said makes it “an inferior form of proof of identity” compared to passports and driver’s licenses.

Approved into law in 2018 as Republic Act (RA) No. 11055, the Philippine Identification System Act sought to serve as the national identification system for all Filipinos and resident aliens in the Philippines. However, various complaints regarding its rollout speed and not being accepted as valid proof of identity continue to hound PhilSys despite being signed into law almost six years ago.

The PSA said in a statement almost two years ago that it planned to issue a total of 50 million national IDs come end-2022. However, the statistics agency only managed to hit its goal a year later than its deadline.

In its latest data, the PSA said in a statement that it managed to print and dispatch for delivery a total of 50.3 million national IDs. — Kenneth Christiane L. Basilio

DoJ to go hard on killers of Chinese

DOJ.GOV.PH

THE PHILIPPINE Justice secretary ordered prosecutors on Thursday to ensure an airtight case against the suspects in the abduction and killing of six Chinese nationals in a posh village in Muntinlupa City last October.

The Department of Justice (DoJ) prosecutors panel revealed the identity of the three primary suspects in the crime and found probable cause to indict them for charges of kidnapping, serious illegal detention, homicide, and car theft charges.

“Let’s bring to justice those responsible for these crimes,” Justice Secretary Jesus Crispin Remulla said in a statement released by the DoJ.

The three Filipino suspects were released by the suspects in Laguna a day after their abduction. Meanwhile, only the bodies of four of the six Chinese victims have been found so far.

The three suspects are set to be tried before the Muntinlupa City Regional Trial Court (RTC). — Chloe Mari A. Hufana

Cooperation with Denmark secured

THE PHILIPPINES and Denmark secured their ongoing cooperation in the fields of maritime, agriculture, trade, and green energy as top diplomats of both countries explored other areas for partnership, the Department of Foreign Affairs (DFA) said Thursday.

It said Foreign Affairs Undersecretary Ma. Theresa P. Lazaro and Danish Ministry of Foreign Affairs State Secretary Lina Gandløse Hansen met in Manila on Wednesday and discussed expanding cooperation in healthcare, science and technology and consular affairs.

“Our two countries’ bilateral relations are anchored on a wide range of issues where the Philippines and Denmark find mutual benefit in cooperation,” Ms. Lazaro said. “This is complemented by our shared democratic values and a common desire to maintain the rules-based international order.”

Their discussion also covered tensions in the South China Sea and the Ukraine-Russia war.

In September, Denmark Ambassador to the Philippines Franz-Michael Mellbin said the European country plans upskilling least 50,000 Filipino workers in the renewable energy sector to build more solar farms and windmills in the Philippines.

The two countries are board members of the Board of Vulnerable 20 Group of Finance Ministers (V20), organized under the Group of Seven (G7) Global Shield against Climate Risks program.

The program aims to ramp up climate and disaster protection to vulnerable countries through “pre-arranged and trigger-based finance” as well as address damage caused by the climate crisis. — John Victor D. Ordoñez

Amusement tax on Filipino movies shown in Metro Manila suspended

PHILSTAR FILE PHOTO

THE METRO Manila Council (MMC) has passed a resolution suspending the collection of amusement tax from the screening of Philippine movies for the next three years in a bid to support the local film industry.

In a statement released on Thursday, Metro Manila Development Authority (MMDA) Acting Chairman Romando S. Artes said local government units (LGUs) in the capital region shall amend their respective revenue codes to “waive the amusement tax for Filipino movies exhibited in Metro Manila from January 8 to December 24 of every year for the next three years.”

Local chief executives supported the resolution following Wednesday’s meeting with film director and writer Jose Javier Reyes who told the MMC that the local film industry has “declined significantly” and suffered a dismal performance since the pandemic happened.

The MMC was told what contributed to the decline of the local film industry were content piracy, the advent of streaming platforms, and the barrage of taxes that have weighed the industry down.

“A producer needs to pay three types of taxes for each film including 10% amusement taxes together with other taxes such as Value Added Tax and Income Tax, making us the most heavily-taxed movie industry in the world,” Mr. Reyes told the MMC.

The MMDA said: “The moratorium on the imposition of amusement taxes excludes the period of the MMFF which is from December 25 of every year until January 7 of the following year.”

Local movie producers had voiced their concerns regarding the tax collection to Interior and Local Government Secretary Benjamin C. Abalos, Jr. in January during the Metro Manila Film Festival (MMFF).

In response, he said his department will give its support “to reinvigorate the Filipino filmmaking industry and help them by bringing back the local moviegoers into watching in cinemas again.” — Kenneth Christiane L. Basilio

Forest fire breaks out near tourist site in Bontoc

BAGUIO CITY — Government firefighters, aided by volunteers, remained at the scene of a forest fire in Bontoc, Mountain province that broke out shortly before noon on Thursday to make sure it would not spread any farther.

Arson probers were still trying to determine how the fire started in Barangay Teng-ab, Bontoc as villagers worked hand-in-hand with firemen from the Bontoc Municipal Fire Station (MFS) in dousing the fire with water.

The Bontoc Emergency Operations Center (EOC) has been actively coordinating with local authorities and has requested additional support to help prevent the fire near a tourist attraction from worsening.

Private water delivery trucks rushed to the scene to ensure enough water for firefighters to use.

Since the start of February, bush fires have been reported in various locations, especially forest and grasslands in Benguet, especially in Itogon, Tuba, Bokod and Atok and Baguio City.

Over a hundred hectares of forestlands have been eaten up by these freak fires, based on BFP estimates. — Artemio A. Dumlao