How PSEi member stocks performed — September 25, 2024
Here’s a quick glance at how PSEi stocks fared on Wednesday, September 25, 2024.
Philippines says Chinese navy helicopter shadowed its aircraft
THE PHILIPPINES said on Wednesday its fisheries bureau aircraft was shadowed and approached by a Chinese navy helicopter while on patrol near the disputed Scarborough Shoal, in another face-off between two countries locked in a bitter row over territory.
The Philippine National Security Council (NSC) said the incident took place on Monday and its aircraft was still able to complete its mission. China’s embassy in Manila did not immediately respond to a request for comment.
It was the latest in the series of air and sea encounters between the two countries that have sparred over contested areas of the South China Sea, including the Scarborough Shoal, one of Asia’s most contested features, which has been occupied by China’s coast guard for more than a decade.
China’s actions violated air safety regulations, the NSC said in a statement.
Based on its interpretation of old maps, China claims almost the entire South China Sea, including the Scarborough Shoal, coveted for its bountiful fish stocks and a stunning turquoise lagoon.
The shoal, named after a British vessel that got stuck there centuries ago, is located 200 km (124 miles) off the Philippines, inside its exclusive economic zone (EEZ).
A 2016 ruling by the Permanent Court of Arbitration found China’s sweeping claims were not supported by international law, a decision Beijing refuses to recognize.
The tribunal did not determine sovereignty over the Scarborough Shoal, which it said was a traditional fishing ground for several countries.
CHINESE ‘INTERFERENCE’
Separately, the Philippine defense minister told China on Wednesday to withdraw vessels from its EEZ and accused Beijing of trying to meddle in its defense activities, including its use of a US mid-range missile launcher for training.
Reuters reported last week the United States has no immediate plans to pull out the missile system, which can be equipped with cruise missiles capable of striking Chinese targets.
“China is saying that they are alarmed, but that is interference into our internal affairs,” Defense Secretary Gilberto Teodoro told reporters.
“Why don’t they lead by example? Destroy their nuclear arsenal. Remove all their ballistic missile capabilities. Get out of the West Philippine Sea, and get out of Mischief reef,” he added, referring to the Philippine EEZ and a manmade, militarized island built there by China.
China has expressed concern over the deployment of the Typhon system in the Philippines, accusing Washington of fueling an arms race.
Philippine military chief Romeo Brawner on Wednesday said if he had his way, “I would like to have the Typhons here in the Philippines forever.”
The Department of Foreign Affairs declined to comment over WhatsApp message.
This development gives rise to a need for government agencies, such as the Armed Forces of the Philippines (AFP) to “speed up interoperability” to counter China’s actions.
“The AFP and government agencies that are related to maritime and aerial security of the WPS (West Philippine Sea) must speed up interoperability,” Chester B. Cabalza, founding president of Manila-based International Development and Security Cooperation, told BusinessWorld in a Facebook Messenger chat.
“By doing so, we can counter China’s continuous aggression and hostility disrupting not only freedom of navigation but also freedom of overflight.” — John Victor D. Ordoñez with Reuters
Car buyers protected by Lemon law and Consumer Act — SC
THE PHILIPPINE Supreme Court (SC) ruled that buyers could avail themselves of all legal remedies under the Philippine Lemon Law, and the Consumer Act among other applicable consumer laws against defective brand-new cars.
In a 15-page decision of the tribunal’s second division, dated Oct. 11, 2023, the High Court ruled that the Lemon Law, a consumer rights measure on brand-new motor vehicles, does not override the Consumer Act, allowing buyers to seek any legal redress as provided under the law.
“There is nothing that prevents a consumer from availing of the remedies under RA 7394 (Consumer Act) or any other law for that matter even if the subject of the complaint is a brand new vehicle… RA 10642 (Lemon Law) is an alternative remedy granted to the consumer and the consumer is free to choose to enforce his or her rights under RA 7394 or any other law,” part of the decision penned by Associate Justice Antonio T. Kho, Jr. read.
“Since the case is capable of repetition… the court deems it proper to state that with respect to brand new vehicles, the consumer may choose between RA 10642, RA 7394, and other remedies available under any other law,” it added.
The SC clarified the application of consumer laws due to a petition filed by the Department of Trade and Industry (DTI) seeking to overturn an appellate court decision that the Lemon Law applies to buyers of defective brand-new vehicles instead of the Consumer Act.
This stemmed from a case involving a private citizen who demanded her vehicle be replaced or refunded as they “noticed a jerky movement” when the car’s transmission changed gears, according to the top court’s statement, released on Wednesday.
The car manufacturer argued they are allowed to make up to four repair attempts before replacing the vehicle, citing the Lemon Law. The private citizen sought DTI’s opinion, which ruled in their favor.
The car manufacturer then sought to nullify DTI’s ruling by bringing it before the Court of Appeals. The appellate court decided the Lemon Law should apply in the case, instead of the Consumer Act, noting “a special law prevails over a general law,” the SC explained in the statement.
The Trade and Industry department brought the case before the tribunal, appealing the lower court’s decision without the private citizen’s participation.
The DTI’s petition was, however, dismissed as the SC ruled that “it was not the proper party for the petition.”
“While acknowledging that the case had been resolved due to the repair of the vehicle, the court took the opportunity to settle the issue to guide future disputes. It held that the Lemon Law is not an exclusive remedy,” the top court said in a statement. — Kenneth Christiane L. Basilio
Palace advisory council pushes flood-control projects
A GROUP of private sector leaders advising President Ferdinand R. Marcos, Jr. on economic concerns has pushed for flood-control measures including the construction of retarding basins and dams along critical waterways.
The Private Sector Advisory Council (PSAC) also recommended ordinances that will require property developers to install rainwater detention systems, during its meeting with Mr. Marcos on Tuesday, according to a press release the following day.
The National Government should also enforce easement laws to clear floodways of obstructions, including informal settlements, the council said.
Parts of Metro Manila and nearby provinces were submerged in floodwaters in August amid a typhoon-enhanced southwest monsoon that killed dozens and displaced over a million people, prompting lawmakers to pursue an investigation of flood-control projects.
A World Weather Attribution report earlier said the Philippines has weak urban plans and flood infrastructure, which cannot withstand climate change-driven floods.
In the latest World Risk Index, the Philippines, which faces an average of 20 typhoons, remained the most disaster-prone country for a 16th straight year.
PSAC recommended the creation of a comprehensive planning for critical waterways and bridges affecting major roads like EDSA and Roxas Blvd.
It urged local government units to collaborate on a “unified approach” and invest in waste-to-energy projects through public-private partnerships.
It also pushed for a river basin master plan and the widening of the Manggahan Floodway.
The government should also launch a nationwide watershed restoration program, particularly in priority areas like Marikina, it added, noting that reforestation efforts will be essential for environmental recovery.
The PSAC also proposed revisiting the Parañaque Spillway project and constructing a flood diversion tunnel from the Upper Marikina River to the Pacific Ocean.
The proposed Department of Water Resources, a priority legislation of the Marcos administration, is necessary “to streamline efforts” for water and drainage management, it said.
The PSAC also recommended that villages implement coconut-based garbage traps to prevent drainage blockages.
The council also announced that the Napindan River will be dredged to improve the outflow of Laguna de Bay. “The Water Resources Management Office, in collaboration with the Philippine Disaster Resilience Foundation, will oversee these initiatives.”
The Department of Public Works and Highways in July said over 5,000 flood mitigation projects would be implemented across the country this year.
These are on top of the 5,521 flood control projects completed between July 2022 and May 2024, which Mr. Marcos reported in his third address to Congress. — Kyle Aristophere T. Atienza
Senate chief dismisses ouster plot as ‘rumor’
By Kyle Aristophere T. Atienza, Reporter
SENATE President Francis “Chiz” G. Escudero on Wednesday said the reported attempt to oust him as leader of the 24-man chamber remained a “rumor.”
Mr. Escudero, who himself replaced an ousted Senate leader a few months back, said “allegations about the coup are mere rumors until they become a reality.”
“If it is not a reality at this point of time then it is a rumor,” he told reporters on the sidelines of a briefing at the presidential palace.
“I don’t usually comment on rumors because at the end of the day, I will be quoted reacting to a rumor that has no basis of origin really that you can point to,” he added.
Senate President Pro Tempore Jose Pimentel “Jinggoy” Ejercito, Jr. and senators Lorna Regina “Loren” B. Legarda and Cynthia A. Villar — who were linked to the alleged ouster move — have already denied any involvement in the supposed plot.
Mr. Estrada, who was rumored to replace Mr. Escudero, himself said the Senate President still had the support of his colleagues, adding that frequent leadership changes would be unhealthy for the chamber.
Mr. Escudero secured the top Senate post in May, replacing Senator Juan Miguel F. Zubiri.
“Let’s not forget that the two factions who elected Mr. Escudero were supposedly at an impasse,” said Arjan P. Aguirre, a political science professor at the Ateneo de Manila University.
“He is seen as the impartial, senior, and capable leader who cannot be controlled by any faction in the chamber.”
Mr. Aguirre said some factional senators might be “taking preemptive steps to get ahead of their rivals in the chamber” as the 2025 midterm polls approach.
He said the possible return of some former senators “who used to compose a different alignment of forces” such as Panfilo M. Lacson, Vicente C. Sotto III, Jose Emanuel “Manny” D. Pacquiao might be a source of tension in the future.
“The rumors are meant to signal that something is going on. They are usually deployed to gauge the reaction of all members of the chamber and other stakeholders,” Mr. Aguirre said.
Mr. Escudero, a veteran senator, likely knew what would happen before and after the midterms, the analyst said. “He knows how to handle this.”
The Senate President said he learned from his 23 years of experience in Congress that ouster plots were a norm.
“It is a rumor until it becomes a reality, and I have learned from my 23 years in Congress.”
He said Senate leaders “serve at the pleasure of the majority.”
“We will remain here until we enjoy the confidence of the majority. It is that simple,” he said.
“At any point in time that we have sessions, the leadership can be changed once they lose the confidence of the majority as what happened when Senate President Migz (Zubiri) was replaced,” he added.
Anthony Lawrence Borja, a political science professor at De La Salle University, said the possible ouster plot might be an effect of the administration’s coalition-building efforts or might be “just a sheer petty power struggle.”
“Who will gain from Mr. Escudero’s removal and what legislative programs will be affected by either his departure or his persistence?”
Mr. Escudero was fresh from the 6th meeting of the Legislative-Executive Development Advisory Council (LEDAC), which earlier eyed the approval of 28 bills by June 2025.
‘Crucial’ POGO personality bared
A SENATOR leading a probe into criminal syndicates linked to Philippine Offshore Gaming Operations (POGOs) said dismissed Mayor Alice L. Guo confirmed a “crucial personality” behind illegal operations connected to these outfits during an executive session on Tuesday.
“I am not that satisfied with what was said in the executive session, although there was one crucial personality confirmed by Guo Hua Ping,” Senator Ana Theresia “Risa” N. Hontiveros-Baraquel said in mixed English and Filipino in a statement on Wednesday, calling Ms. Guo by the name of a Chinese national who matched her fingerprints.
“This corroborates a theory that the committee shared a month ago.”
During Tuesday’s hearing, Ms. Guo said she was a victim of the POGO issue, rather than a mastermind. She also told senators that she was willing to reveal the international criminal syndicate behind these crimes in a closed-door meeting.
Senate President Pro Tempore Joseph Victor “JV” G. Ejercito on Wednesday told reporters in a Viber message that Ms. Guo is unlikely the one pulling the strings in these operations, but she may be a pawn used by an international syndicate.
“We still can’t discount the possibility that Alice is an agent of China based on her demeanor and her skillful evasion,” he said in mixed English and Filipino.
“Hopefully there will be more information gathered in the next executive sessions,” Mr. Ejercito said.
Ms. Guo is being accused of coddling an illegal offshore gaming company in the town of Bamban, Tarlac, where she ran and won for the first time as mayor in 2022. The illegal hub had been raided by Philippine law enforcement due to links to scamming operations in March.
The ex-mayor was arrested in Jakarta on Sept. 4 after fleeing the country via a yacht amid a Senate arrest order and human trafficking complaints against her. — John Victor D. Ordoñez
Akbayan wins party-list seat
THE Commission on Elections (Comelec) on Wednesday proclaimed political group Akbayan Citizens’ Action Party as a winner of the 2022 national polls, giving the party-list a seat in the House of Representatives with less than a year before the next elections.
Comelec awarded Akbayan Citizens’ Action Party with a proclamation certificate, giving it a seat at the House after the Supreme Court voided the registration papers of another party-list group due to an election law violation.
“The National Board of Canvassers has issued the Certificate of Proclamation in favor of Akbayan Citizens’ Action Party as having obtained the required percentage of votes under the party-list system,” Comelec chief George Erwin M. Garcia said in a letter addressed to House Secretary-General Reginald S. Velasco on Wednesday.
“We would like to thank Comelec for their swift action in issuing the Certificate of Proclamation to Akbayan acting on Congress’ request to fill in a vacancy in the party-list seats as part of the constitutional mandate to fill in all seats allotted for party-list organizations,” Akbayan Citizens’ Action Party President Rafaela David said in a statement published on Facebook. — Kenneth Christiane L. Basilio
DBM releases P36B for salary hike
AROUND P36.45 billion has been released for the salary increase of state employees, the Department of Budget and Management (DBM) said on Wednesday.
“I am happy to announce that the funds allocated for the implementation of the Salary Standardization Law VI (SSL VI) have been fully released to concerned agencies by the DBM,” Budget Secretary Amenah F. Pangandaman said in a statement.
This release will cover the salary hikes of all 308 departments and agencies, according to the department.
“In light of this, I am appealing to the heads of the respective departments/agencies to hastily enforce the salary adjustments by taking necessary steps forward, including the process and issuance of the Notices of Salary Adjustment, so that our government workers may start receiving their differential and salary increases,” Ms. Pangandaman also said.
The Department of Education will receive the highest allocation at P24.63 billion. This is followed by State Universities and Colleges at P2.43 billion, Department of Health at P2.34 billion, the Judiciary at P837.92 million, and the Department of Justice at P769.43 million.
Other top recipients include the Departments of Finance (P549.36 million), Public Works and Highways (P543.63 million), Commission on Audit (P535.25 million), Environment and Natural Resources (P425.96 million), and Interior and Local Government (P424.44 million). — Beatriz Marie D. Cruz
Marawi siege victims to get P1B
A TOTAL of P1 billion will be released to support victims of the Marawi Siege, the Budget department said on Wednesday.
This would provide monetary compensation for 574 beneficiaries or recipients, mainly for structural damages and death claims, the Department of Budget and Management (DBM) said in a statement.
The fund would help affected families return to their normal lives, Budget Secretary Amenah F. Pangandaman said. The tax-free allocation will be managed by the Marawi Compensation Board.
Families of those who died during the siege will also receive compensation, according to the Code of Muslim Personal Laws of the Philippines.
If the original property owner is deceased, legal heirs may claim the compensation, DBM said. Ms. Pangandaman signed the release order on Sept. 24.
The armed conflict between government forces and the Maute group left over a thousand casualties and nearly 200,000 communities displaced. — Beatriz Marie D. Cruz
2 Maranaos dead, 4 hurt in clan war
COTABATO CITY — Two Maranaos were killed while four others were badly hurt in exchanges of gunfire between two feuding clans in Malabang, Lanao del Sur on Tuesday morning.
In separate reports on Wednesday to Brig. Gen. Prexy D. Tanggawohn, director of the Police Regional office-Bangsamoro Autonomous Region, the Malabang Municipal Police Station and the Lanao del Sur Provincial Police Office stated that the slain male Maranaos belonged to one of the two groups locked in a “rido,” or clan war in most Moro vernaculars, that traded shots using assault rifles at the border of Bacayawan and Tubok areas in the municipality.
Officials of the Malabang municipal police force told reporters on Wednesday that the two slain Maranaos were immediately buried by relatives in keeping with their religious tradition of burying the dead within 24 hours from time of death.
Four innocent villagers, two of them Maranaos and the two others both ethnic Maguindanaons, were hurt in the ensuing crossfire.
The four victims, who sustained bullet wounds in different parts of their bodies, are now confined in a hospital. — John Felix M. Unson
More PDEA agents needed in Cordillera
BAGUIO CITY — The Philippine Drug Enforcement Agency (PDEA) Cordillera is hoping its national headquarters will send additional personnel to further enhance its efficiency in illegal drugs war.
PDEA Cordillera spokesperson Roselle Sarmiento said there are less than 300 anti-drug agents in the highland region. This number even includes the administrative personnel.
Ms. Sarmiento also said that the less than 300 PDEA Cordillera personnel are distributed in the six provinces, some municipalities and two cities of the region.
They are expecting additional manpower, Ms. Sarmiento added, with the recent graduation of new drug enforcement officers at the PDEA Academy.
On Sept. 17, 99 new agents are added to the PDEA roster, after they graduated from the Drug Enforcement Officers’ Basic Course.
Ms. Sarmiento said that although their Cordillera regional offices have enough equipment for its operations, they need to be upgraded to be more efficient.
She added that the agents, especially the operatives, are continuously undergoing training to be more effective in performing their tasks. — Artemio A. Dumlao
Peso advances on bets of further US rate cuts
By Aaron Michael C. Sy, Reporter
THE PHILIPPINE PESO appreciated against the dollar on Wednesday amid weaker US consumer confidence and bolstered market expectations of another aggressive rate cut by the US Federal Reserve at its November meeting.
It closed at P55.88 a dollar, 36.5 centavos stronger that its close on Tuesday, Bankers Association of the Philippines data showed.
The peso opened at P55.95 against the dollar, appreciated to as much as P55.83 and weakened to as much as P56 against the greenback. Dollars exchanged fell to $1.54 billion from $1.8 billion a day earlier.
“The dollar-peso closed lower due to the lower consumer confidence data and aggressive Fed cut bets,” a trader said by phone.
US consumer confidence dropped by the most in three years in September amid mounting fears over the labor market, though more households planned to buy a home in the next six months, Reuters reported.
The Conference Board survey on Tuesday also showed consumers expected inflation to quicken in the coming year, clouding their views of the economy before the Nov. 5 presidential election. The US economy could determine the outcome of the vote.
The Conference Board’s consumer confidence index dropped to 98.7 this month from an upwardly revised 105.6 in August. The decline was the largest since August 2021. Economists polled by Reuters had forecast the index rising to 104 from 103.3.
Meanwhile, Federal Reserve Bank of Chicago President Austan Goolsbee on Monday said he expects “many more rate cuts over the next year” as the US central bank seeks a soft landing for the economy, where it controls inflation without crashing the labor market.
Inflation is “way down” from its peak and in recent months has been coming in at the Fed’s 2% target, Mr. Goolsbee said in remarks prepared for delivery to the National Association of State Treasurers annual conference.
“Basically, we would love to freeze both sides of the Fed’s dual mandate right here,” he said. “Yet rates are the highest they’ve been in decades. It makes sense to hold rates like this when you want to cool the economy, not when you want things to stay where they are.”
The Fed last week cut its policy rate to 4.75%-5%, delivering a bigger-than-usual half-of-a-percentage point cut.
“I am comfortable with a starting move like this — the 50-basis-point (bp) cut in the Federal fund rate announced last Wednesday — as a demarcation that we are back to thinking more about both sides of the mandate,” Mr. Goolsbee said. “If we want a soft landing, we can’t be behind the curve.”
The peso also followed the dollar’s recent decline due to the US consumer confidence data, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
The dollar index was at 100.3, near its year-to-date lows, weighed by a rising possibility that the Fed will deliver a 50-bp rate cut at its November meeting. Weak US consumer confidence data on Tuesday prompted investors to push up the odds of a rate cut of that size to more than 60%, Reuters reported.
The trader expects the peso to trade at P55.60 to P56 a dollar, while Mr. Ricafort expects it at P55.80 to P56.