How PSEi member stocks performed — August 28, 2024
Here’s a quick glance at how PSEi stocks fared on Wednesday, August 28, 2024.
Stocks inch lower on last-minute profit taking
PHILIPPINE STOCKS slipped on Wednesday due to last-minute profit taking after the main index breached the 7,000 level intraday and following two consecutive days of gains.
The bellwether Philippine Stock Exchange index (PSEi) dropped by 0.22% or 15.40 points to end at 6,958.01 on Wednesday, while the broader all shares index fell by 0.04% or 1.73 points to close at 3,759.55.
The PSEi opened the session at 6,985.56, higher than Tuesday’s close of 6,973.41. It climbed to an intraday high of 7,016.04 but was unable to hold on to its gains, closing at its lowest level for the day.
“Late-day profit taking brought the local market down. Investors booked gains after the market climbed for two straight days. Chart-wise, the market retested but still failed to take its 7,000 resistance level,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
Trading was “lethargic,” he added.
Value turnover declined to P5.34 billion on Wednesday with 1.27 billion shares changing hands from the P6.8 billion with 831.25 million issues traded on Tuesday.
“Investors are watching out for more economic data that will reinforce a potential rate cut in September. The prospect of easing monetary policy has many investors taking positions, reflecting broader market cautious optimism both locally and globally,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Investors are unanimous in bets that the US Federal Reserve will begin cutting interest rates next month following Fed Chair Jerome H. Powell’s dovish tilt last week, with the debate now centered on whether or not it will be a super-sized 50-basis-point (bp) cut, Reuters reported.
The current pricing sits at a 36% chance for the larger cut, up from 29% a week ago, according to the CME Group’s FedWatch Tool. Markets, which are fully priced for a 25-bp cut next month, see just over 100 bps worth of easing by the end of the year.
A preliminary estimate for US gross domestic product in the second quarter is due later this week, along with the core personal consumption expenditures index, the Fed’s preferred inflation measure.
Sectoral indices were mixed on Wednesday. Services went down by 0.73% or 16.29 points to 2,212.82; holding firms dropped by 0.53% or 31.36 points to 5,833.03; and property declined by 0.42% or 11.87 points to 2,766.26.
On the other hand, mining and oil rose by 0.85% or 69.48 points to 8,235.68; industrials went up by 0.69% or 63.73 points to 9,301.35; and financials climbed by 0.57% or 12.29 points to 2,133.71.
“Nickel Asia Corp. was the top index gainer, jumping 4.92% to P3.41. PLDT Inc. was the main index laggard, falling 3.14% to P1,511,” Mr. Tantiangco said.
Advancers outnumbered decliners, 99 versus 90, while 54 names were unchanged.
Net foreign buying declined to P687.06 million on Wednesday from P897.83 million on Tuesday. — R.M.D. Ochave with Reuters
MRT-3 fare collections to miss projections
THE Department of Transportation (DoTr) expects fares generated by Metro Rail Transit Line 3 (MRT-3) to be weaker than expected, leading to a possible failure to meet its financial obligations to the commuter line’s operator under the terms of the build-lease-transfer (BLT) concession deal.
“With regards the BLT agreement, the government will pay a combined of P3.4 billion,” Transportation Assistant Secretary for railways Jorjette B. Aquino told the House appropriations committee on Wednesday.
She said however that farebox revenue in the eight months to August totaled P1.6 billion, while its projected non-rail revenue was P36 million for the remainder of 2024.
Proceeds generated from MRT-3 fares and non-rail income pay for the government’s equity rental and other obligations to the operator, Metro Rail Transit Corp. (MRTC).
Ms. Aquino said the P3.4 billion financial obligation to MRTC include P2.75 billion for equity rental, staffing, and administrative costs; as well as a further P690 million due by January.
Projected fare revenue for the four months to December is only around P800 million, which would leave the government about P960 million short of its obligations, she said.
The MRTC is set to turn over the MRT-3 to the government by July 2025 once its BTL agreement lapses. The government hopes to privatize MRT-3 before the contract expires next year.
“We need to know if the fare collection is enough to cover the government’s financial obligations and if not then we will look into how we can fill in these balances,” Assistant Minority Leader and Party-list Rep. Marissa P. Magsino said.
Ms. Aquino said the DoTr initially requested a budget of P3.1 billion for MRT-3 but the National Expenditure Program only approved P1.07 billion.
“If that is the case then the budget approved is not enough. We will look into that,” Ms. Magsino said.
Under the BLT agreement, the DoTR holds the franchise and also handles the operations and fare collection. The MRTC built and maintains the system in exchange for a payment from DoTr. — Ashley Erika O. Jose
Agriculture, Education secretaries appointed NEDA Board members
THE secretaries of Agriculture and Education have been made members of the National Economic and Development Authority (NEDA) Board, NEDA Secretary Arsenio M. Balisacan said.
Their membership ensures that the administration’s priorities “with respect to agriculture and food security, as well as education and the development of skills for a competitive economy, are properly attended to,” Mr. Balisacan told reporters at the Palace on Wednesday.
He said the proposed Philippine Civil Service Modernization Project — an “important project for the development of human resource management processes in the public sector” — was also discussed during Wednesday’s NEDA Board meeting.
The Board also approved a request to increase the project cost of the Metro Manila Priority Bridges Seismic Improvement Project and also extend the corresponding implementation period and loan validity of the project.
It seeks to “strengthen the resilience of the transport network in Metro Manila by replacing two major bridges, Lambingan Bridge and Guadalupe Bridge, on the arterial roadways with the improved seismic bridge design specifications,” according to a website post by the Japan International Cooperation Agency, which funds the project.
The Department of Public Works and Highways in April said the seismic improvement project will ultimately help decongest Metro Manila roads.
The Board also tackled the proposed upgrade and expansion of both the Bohol International Airport and Northern Mindanao’s Laguindingan International Airport, Mr. Balisacan said.
“We also reported on the progress in the implementation of the 186 infrastructure flagship projects,” he said, citing an earlier NEDA statement that 45 projects funded through foreign loans or grants were classified as problematic.
Meanwhile, Mr. Balisacan said NEDA was determining the process for undertaking the review of rice tariffs every four months. Rice import tariffs were cut to 15% following the issuance of Executive Order No. 62, but are subject to periodic review.
“We are already preparing the methodologies on how to undertake that review, so we don’t necessarily waste time,” he said, adding that NEDA should be able to give the President timely updates. — Kyle Aristophere T. Atienza
PHL to allow yellow onion imports of up to 16,000 MT
THE Department of Agriculture said on Wednesday that it will allow yellow onions imports of up to 16,000 metric tons (MT) until the end of the year.
“We approved it on Monday because our stocks will be depleted, but we still have ample supply of red onions,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters on the sidelines of a poultry and livestock event.
“Our red onion is good until March. So only a limited quantity of yellow onion will be imported, to stabilize prices,” Mr. Laurel added.
In July, Mr. Laurel extended the import ban on red onion until the end of August, with supply deemed sufficient until February 2025.
He said however that the supply of domestic yellow onions is sufficient only until the end of August.
In a draft memorandum, the Bureau of Plant Industry (BPI) said it will be issuing sanitary and phytosanitary import certificates (SPSICs) for the 16,000 MT of yellow onion, which is deemed sufficient until the end of 2024.
“With the upcoming holiday season and harvest commencing in January 2025, it is expected that the demand for yellow onion will increase. Given that the supply is very limited, it can lead to an increase of price in the market,” it said.
Mr. Laurel said the import order is timed not to disrupt the market during the harvest early next year.
“By the end of this week or early next week, the imports will come in but in limited quantities. We are doing it in batches, so the market won’t be flooded,” he added.
Mr. Laurel said SPSICs will be issued every two weeks.
The national inventory of yellow onion amounted to 1,642.31 MT as of Aug. 9, according to the BPI. On the other hand, red onion volume was 99,512.1 MT.
The BPI added that the imports were calibrated with reference to monthly per capita consumption, and will serve as a buffer to stabilize market prices.
“Possible extension of the must-arrive date will still be subject to change depending on the availability of stocks and prices,” it added. — Adrian H. Halili
Labor rights violations seen requiring more CHR funding
BUSINESS GROUPS and unions expressed support on Wednesday for increasing the budget of the Commission on Human Rights (CHR) to allow it to look into more labor-related human rights violations and provide support to victims.
In a joint statement, six business groups led by the Philippine Chamber of Commerce and Industry (PCCI) said more funding will give the CHR the resources to better monitor labor-related human rights violations.
They said more funding is needed to support a witness protection program pending the resolution of the cases, as well as to expedite the release of reparations to victims.
“We reiterate our earlier call for the government to continue the investigation, prosecution, and disposition of all labor-related cases affecting freedom of association and collective bargaining, without delay and in the interest of justice,” according to the joint statement.
The Department of Budget and Management approved a budget of P1.07 billion for the CHR in the National Expenditure Program 2025.
This excludes the P53.55 million for the Human Rights Violations Victims’ Memorial Commission, bringing total appropriations for the CHR to P1.12 billion.
The groups also proposed that the Inter-Agency Committee (IAC) for the Protection of the Freedom of Association and Right to Organize of Workers, which was established through Executive Order No. 23, offer quarterly progress reports.
“Such a regular interface may serve as a means to be updated and apprised on the progress made by the IAC in the discharge of its functions,” the groups said.
The six groups also requested a review of the continued operations of the National Task Force to End Local Communist Armed Conflict to avoid overlaps with other agencies.
The joint statement was also signed by the Employers Confederation of the Philippines, Philippine Exporters Confederation, Inc., the Federation of Free Workers, Sentro ng mga Nagkakaisa at Progresibong Manggagawa, and the Trade Union Congress of the Philippines. — Justine Irish D. Tabile
Contract awarded to expand, improve Butuan’s Masao port
MINDANAO-BASED contractors have won the P498.09-million contract to expand and improve Butuan’s Masao port, the Philippine Ports Authority (PPA) said.
In a notice of award, PPA said the winner is the joint venture of Evenpar Construction and Development Corp. and UKC Builders, Inc.
“You are hereby instructed to formally enter into contract with us and to post the required performance security in the form and the amount stipulated in the instruction to bidders, within 10 days from the receipt of this notice of award,” PPA General Manager Jay Daniel R. Santiago said.
PPA said failure to enter into the contract and to provide the performance security will cancel the award. The contractor is required to complete the project within 720 calendar days, the PPA said in its invitation to bid.
In the next four years, or until 2028, the PPA is allocating about P16 billion to fund infrastructure works, including 14 flagship projects. — Ashley Erika O. Jose
DTI, ARTA to streamline process for movements of MSME goods
THE Department of Trade and Industry (DTI) will sign an agreement with the Anti-Red Tape Authority (ARTA) to streamline the process for micro, small and medium enterprises (MSMEs) seeking to export goods or distribute them domestically.
“We have to make business easy… and for those that want to export, we also have to (ensure they can) also export quickly,” DTI Acting Secretary Cristina Aldeguer-Roque told reporters on Wednesday.
She said that the memorandum of agreement (MoA) to be signed soon is a result of her meeting with ARTA Secretary Ernesto V. Perez on Tuesday.
“The goal is to ease doing business locally and also ease getting the papers ready so that they will be ready for exports also,” she said.
“Aside from the big industries, which we really support, we also have a push for the MSMEs, those who are really ready to conquer the global arena,” she added.
She said that there is a need to streamline processes not only for export but also in distributing products on the domestic market to help businesses tap the big potential in the Philippines.
“Our population is so big, and that is also the reason why a lot of investors want to come in. So that’s one of our strengths,” she said.
The MoA seeks to reduce the steps that businesses will have to go through before being cleared to distribute products, whether for export or not.
She said industries with great potential to export include the beauty sector, due to growing demand for whitening and coconut products.
“There’s really a strong export market for beauty products, especially papaya and virgin coconut oil, which are very popular abroad,” she said.
“There’s also halal beauty products … we are going to really push halal, which has a $3.3 trillion potential global market,” she added.
The top export markets for Philippine beauty products are the Middle East, Europe, and the US.
On Wednesday, the DTI opened its first Beauty Philippines Fair, the first of the department’s industry-specific trade fairs. Due to run from Aug. 28 to Sept. 1 at SM Megamall, the fair aims to create a showcase for beauty-products MSMEs.
“We have to realize that a lot of MSMEs are also into the beauty business, especially now that the beauty business is very strong,” she said.
“So, I decided to start with very targeted trade fairs … now it’s the beauty sector; after that we also have fashion; then after that we will also have bridal,” she added. — Justine Irish D. Tabile
DoE seeks P10B in funding for energy management program
THE Department of Energy (DoE) is arranging financing of about P10 billion to accelerate a program that will reduce power consumption at government agencies.
Energy Undersecretary Felix William B. Fuentebella said the DoE expects an outlay of around P2 billion per year starting 2026 to expedite the rollout of the Government Energy Management Program (GEMP).
“We have the strategies in place so what we’re working on is the financing. So, we’re trying to come up with a facility through the DoF (Department of Finance) with our development partners,” Mr. Fuentebella told reporters on the sidelines of a forum on Wednesday.
The DoF is guiding the DoE in preparing a financing proposal, he said.
Mr. Fuentebella said financing for GEMP could be a combination of official development assistance and concessional loans, with the DoF studying what would be the “best blend.”
“We have spoken to ADB (Asian Development Bank) and then we will also talk with the others. If it doesn’t (work), we’ll have to look for (other options),” he said.
He said the program involves retrofitting, upgrading for enhanced energy efficiency and conservation, raising the share of electric vehicles in the government fleet, and their charging stations.
GEMP is a government-wide program aimed at reducing the government’s electricity and fuel consumption by at least 10%.
The program is authorized by Republic Act 11285 or the Energy Efficiency and Conservation (EEC) Act and supervised by the Inter-Agency Energy Efficiency and Conservation Committee.
In January, President Ferdinand R. Marcos, Jr. issued Administrative Order (AO) 15 directing government agencies to accelerate implementation of GEMP.
AO 15 operationalizes the EEC Act for all government entities under the executive branch, including government-owned and -controlled corporations, government financial institutions, their subsidiaries, and state universities and colleges.
In the initial stages of implementing GEMP, the DoE said the government saved more than P300 million, equivalent to more than 30 million kilowatt-hours in 2023. Fuel savings were valued at P25 million.
For 2024, the DoE expects GEMP in accelerated implementation to generate nearly P2 billion in savings for electricity and fuel combined. — Sheldeen Joy Talavera
BARMM, Central Luzon exploration contracts attract potential bidders
INTERNATIONAL and Philippine companies have submitted applications for contracts to explore for petroleum and hydrogen in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and in Central Luzon, the Department of Energy (DoE) said.
“We are very pleased that well-known international players in hydrogen and petroleum exploration and production have shown interest and participated in this year’s bid round,” Energy Undersecretary Alessandro O. Sales said in a statement on Wednesday.
At the opening of application documents on Tuesday, the DoE and the BARMM’s Ministry of Environment, Natural Resources, and Energy announced the receipt of three applications for the 1st BARMM Conventional Energy Bid Round. The contract areas on offer are a pre-determined area (PDA) in the Cotabato Basin and two PDAs in the Sulu Sea Basin.
All applications were deemed qualified for further substantive evaluation following an initial completeness check.
Meanwhile, for the 2024 Philippine Bid Round, the DoE received five applications for service contracts for hydrogen exploration in Central Luzon.
These applications also passed the completeness check and are eligible for further evaluation.
An application for PDA in Cebu’s Alegria Field was disqualified due to incomplete documentation.
“The comprehensive legal, technical, and financial evaluation of all qualified applications will be completed in the fourth quarter of 2024. The highest-ranking applicants from this evaluation will be endorsed to the Office of the President,” the DoE said.
The next phase will determine whether these applicants will be awarded service contracts.
“This activity marks the beginning of a transformative journey that may span several years. If we do not embark on this activity now, it will never come to fruition,” Mr. Sales said. — Sheldeen Joy Talavera
15 drugs added to VAT-exempt list
FIFTEEN additional drugs treating cancer, high cholesterol, hypertension, and mental illness have been added to the value-added tax (VAT) exempt list, the Bureau of Internal Revenue (BIR) said.
In a circular, the seven cancer medicines declared exempt were Avelumab, Acalabrutinib, Olaparib (100 and 150 milligrams), Trastuzumab (150 and 440 mg), and Trastuzumab deruxtecan.
Rosuvastatin (as Calcium), a treatment for high cholesterol, was also added to the VAT-exempt list.
The BIR also waived VAT on five medicines for hypertension: Olmesartan medoxomil, Perindopril (as arginine) for both the 5 mg and 10 mg varieties, and the for 1.5 mg/5 mg and 1.5 mg/10 mg varieties of Indapamide + Amlodipine (as besilate).
Also declared VAT-exempt were the mental illness drugs Sodium Valproate and Valproic Acid.
Under the Corporate Recovery and Tax Incentives for Enterprises Act, drugs, medicines, vaccines and medical devices identified by the Food and Drug Administration will receive VAT exemptions.
BIR Commissioner Romeo D. Lumagui, Jr. said in a statement that “the BIR supports the government… in helping the public have access to more affordable healthcare and medicine.”
The bureau has yet to release the full circular on the new medicines under the VAT-exempt list. — Beatriz Marie D. Cruz
ASF fears scaring consumers away from pork, farmers say
THE farmgate price of pork has declined because consumers have been deterred by the surge in African Swine Fever (ASF) cases, farmers said.
“The farmgate price for hogs, unfortunately, dropped by P30 to P40 per kilogram. I hope (this translates) to a drop in market prices,” Jayson H. Cainglet, executive director of the Samahang Industriya ng Agrikultura, told reporters on the sidelines of a poultry and livestock event on Wednesday.
A kilo of pork kasim (shoulder) was selling for between P260 and P370, while pork liempo (belly) fetched P290 to P400 in Metro Manila markets, according to Department of Agriculture (DA) price monitors as of Aug. 28.
He added that hog prices dropped to about P160 to P180 per kilo.
“There are reports that many are avoiding (buying pork),” Mr. Cainglet said, noting that current supply remains ample.
According to the Bureau of Animal Industry, 15 municipalities had active ASF cases across 32 provinces as of Aug. 21. ASF was first detected in the Philippines in 2019.
“It has been with us for the past 3-4 years, palipat-lipat ang ASF (ASF is moving around). So, let’s not be afraid of the reports, that’s actually normal for the hog industry,” he added.
The DA has said it will kick off hog vaccinations by Friday, beginning in Batangas where ASF has spiked in recent weeks.
“If there are any delays it might just be for one or two days more, but the target is Friday,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters.
The department has procured 10,000 doses of the ASF vaccine for Batangas, with about 2,000 expected for deployment by Friday.
He said that the DA procured another 150,000 doses in the next batch of vaccines, arriving this weekend, Mr. Laurel added.
The DA has allocated P350 million to procure 600,000 vaccine doses from Vietnam. — Adrian H. Halili