MANILA, which remained the third-cheapest prime office market among 23 cities in the Asia-Pacific (APAC) region in the second quarter (Q2), saw a 3.2% decline in occupancy cost compared with the same period last year, according to real estate consultancy Knight Frank. Read the full story.
Here’s a quick glance at how PSEi stocks fared on Monday, July 22, 2024.
THE PESO declined against the dollar on Monday as market players chose to stay cautious after US President Joseph R. Biden, Jr. withdrew from his re-election campaign.
The local unit closed at P58.38 per dollar on Monday, weakening by 4.5 centavos from its P58.335 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session weaker at P58.40 against the dollar. Its intraday best was at P58.375, while its worst showing was at P58.48 versus the greenback.
Dollars exchanged went down to $858.75 million on Monday from $979.27 million on Friday.
“The dollar-peso traded relatively sideways on market caution amid US political noise and ahead of US GDP (gross domestic product) data this week,” a trader said by phone.
The dollar was broadly steady on Monday after Mr. Biden dropped his re-election bid, increasing former President Donald J. Trump’s chances of another term, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The dollar eased slightly against a basket of currencies on Monday as investors focused on Mr. Biden’s decision to end his re-election campaign and the next moves from the US Federal Reserve and the Bank of Japan, Reuters reported.
The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — fell 0.1% at 104.30.
Mr. Biden announced he was exiting the race on Sunday and endorsed Vice-President Kamala Harris to replace him as the Democratic candidate in the November election. Ms. Harris quickly received the backing of many within the party, but several high-profile names stayed quiet.
Mr. Trump, the Republican nominee, sits well ahead in betting markets following Mr. Biden’s disastrous debate performance last month and questions about his age and health.
Cautious signals from Federal Reserve Bank of San Francisco President Mary Daly last week also lifted the dollar, Mr. Ricafort said. Ms. Daly said on Thursday she is looking for more confidence that inflation is moving back to the Fed’s 2% target before calling for an interest rate cut.
For Tuesday, Mr. Ricafort sees the peso ranging from P58.30 to P58.50 per dollar, while the trader expects it to move between P58.20 and P58.50. — A.M.C. Sy with Reuters
PHILIPPINE SHARES declined on Monday as investors pocketed their gains from the market’s three-day climb ahead of the third State of the Nation Address (SONA) of President Ferdinand R. Marcos, Jr.
The benchmark Philippine Stock Exchange index (PSEi) fell by 1.17% or 79.64 points to close at 6,712.05 on Monday, while the broader all shares index declined by 0.76% or 27.85 points to end at 3,599.98.
“The local bourse dropped as investors took profits following the market’s rally,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“Investors were also waiting for the President’s SONA. There are many issues that investors want to hear about, especially the government’s plan to meet the economic growth target in the coming years,” Ms. Alviar added.
Philippine stocks closed lower along with most regional markets following US President Joseph Biden’s withdrawal from the 2024 presidential race, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Mr. Biden announced he was exiting the race on Sunday, and endorsed Vice-President Kamala Harris for the Democratic ticket, Reuters reported.
Asian shares slid anew on Monday, getting little lift from a surprise rate cut by China’s central bank, while Wall Street futures firmed in the wake of Mr. Biden’s decision to bow out of the election race.
The People’s Bank of China cut short-term rates by 10 basis points, which pulled down long-term borrowing costs and bond yields. The move follows Beijing’s release of a policy document on Sunday outlining its ambitions for the economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost another 0.7%, having shed 3% last week. Japan’s Nikkei dropped 1.2% and South Korea’s benchmark index fell 1.3%.
Majority of sectoral indices closed lower. Services went down by 2.6% or 53.44 points to 1,996.18; industrials retreated by 1.99% or 184.59 points to 9,054.49; holding firms dropped by 1.11% or 64.62 points to 5,746.82; and financials declined by 0.48% or 10.20 points to 2,086.79.
Meanwhile, property rose by 0.66% or 18 points to 2,726.06; and mining and oil climbed by 0.23% or 20.59 points to 8,717.84.
“Among the index members, only five stocks were able to stay in the green, led by DMCI Holdings, Inc., up by 1.82%. On the other hand, Metropolitan Bank & Trust Co. was at the bottom, losing 4.43%,” Ms. Alviar said.
Value turnover dropped to P6.23 billion on Monday with 531.62 million shares changing hands from the P6.84 billion with 587.69 million issues traded on Friday.
Decliners outnumbered advancers, 107 versus 72, while 60 names closed unchanged.
Net foreign buying dropped to P1.01 billion on Monday from P1.44 billion on Friday. — R.M.D. Ochave with Reuters
By John Victor D. Ordoñez, Reporter
THE CHINESE Foreign Ministry on Monday said it would allow the Philippines to conduct resupply missions to a disputed shoal in the South China Sea if it is informed beforehand, a day after they agreed on a “provisional arrangement” for the missions.
But the Philippines’ Department of Foreign Affairs (DFA) said it had never agreed to prior notification during talks with Chinese officials early this month.
“The spokesperson’s statement therefore regarding prior notification and on-site confirmation is inaccurate,” it said in a statement, adding that Manila would continue to assert its rights and jurisdiction over its maritime zones.
The Chinese Foreign Ministry on its website said it would allow resupply missions to Second Thomas Shoal, where a handful of Filipino soldiers live on a grounded ship called the BRP Sierra Madre, “in a humanitarian spirit.”
That is, if Manila informs Beijing in advance about the missions, and after on-site verification is conducted, according to an unnamed spokesperson.
It added that Manila is barred from bringing in construction materials to the warship, which China has said Manila had illegally placed at the shoal.
“We continue to demand that the Philippines tow away the warship and Ren’ai Jiao’s (Second Thomas Shoal) state of hosting no personnel or facilities.”
The Philippines grounded the World War II-era ship at the shoal in 1999 to bolster its sea claim.
The DFA on Sunday said the parties had agreed on a “provisional arrangement” during a bilateral consultation mechanism in Manila on July 2 for resupply missions at the disputed shoal, which the Philippines calls Ayungin.
Manila and Beijing resumed talks to ease tensions in the South China Sea after accusing each other of raising tensions in disputed shoals and reefs in the waterway.
Chinese Coast Guard forces with bladed weapons on June 17 boarded Philippine rubber boats and looted several rifles stored in gun cases, actions that Manila’s military chief Romeo S. Brawner, Jr. said only “pirates” do.
A Filipino Navy officer on a rubber boat lost his right thumb after the boat was rammed by a Chinese Coast Guard rubber boat.
In the past year, China’s coast guard repeatedly used high-pressure water cannons to dissuade Philippine vessels from entering highly contested areas within the country’s exclusive economic zone including Second Thomas Shoal and Scarborough Shoal.
Beijing issued new rules, which took effect on June 15, that would enforce a 2021 law allowing its coast guard to use lethal force against foreign ships in waters that it claims.
In a separate statement, the DFA said Foreign Affairs Secretary Enrique A. Manalo would push maritime security cooperation with regional neighbors at the Association of Southeast Asian Nations (ASEAN) Foreign Ministers’ Meeting in Ventiane, Laos on July 21 to 28.
“The Philippines will continue to articulate its consistent positions on the South China Sea issue as it has done in past ASEAN meetings,” it said.
The Philippines and China have agreed to set up new lines of communication to improve their handling of sea disputes after the July 2 meeting.
Beijing maintains it has sovereignty over most of the South China Sea based on its old maps and has deployed hundreds of coast guard vessels deep into Southeast Asia to assert its claims, disrupting offshore energy and fishing activities of its neighbors including Malaysia and Vietnam.
China has refused to recognize a 2016 international arbitral ruling that voided its claims for being illegal.
“In our desire to deescalate the situation in the South China Sea and to manage differences in a peaceful manner, we emphasize that the agreement was done in good faith and the Philippines remains ready to implement it,” the DFA said. “We urge China to do the same.”
By John Victor D. Ordoñez, Reporter and Kenneth Christiane L. Basilio
THE PHILIPPINE Senate would put proposals to change the 1987 Constitution on the back burner and would instead focus on measures to boost the military amid growing tensions with China, according to the Senate president.
The chamber would also pass bills that seek to boost healthcare and jobs while easing hunger, Senate President Francis “Chiz” G. Escudero said in a speech as Congress resumed sessions on Monday.
“We will set aside items which merely dissipate our energy and divide the public,” he said. “For this reason, pending bills on Charter change (“Cha-cha”) will be placed on the back burner, and will follow the ordinary and regular process of legislation.”
At the weekend, he said they would tackle a proposal to amend the Electric Power Industry Reform Act (EPIRA) amid blackouts.
The Senate will also push changes to the Corporate Recovery and Tax Incentives for Enterprises (CREATE), particularly lower taxes on domestic and foreign companies.
Mr. Escudero said Congress should go beyond laws that only benefit big business, and find solutions to problems with healthcare, joblessness and poverty.
“We will take peaceful measures to defend our people’s right to sail in our seas and fish in our waters, as what our ancestors had done, and what our children and grandchildren shall do,” he added.
The Senate in December passed a bill that seeks to boost the country’s defense program through investments in local defense equipment manufacturing. The measure will give the Department of National Defense P1 billion in seed funding.
The Philippines and China resumed talks to ease tensions in the South China Sea after accusing each other of raising tensions in disputed shoals and reefs.
“I am confident that we shall overcome whatever disagreements we may have with any of our neighbors, given our centuries-old amicable relations with them,” Mr. Escudero said.
Also on Monday, Speaker and Leyte Rep. Ferdinand Martin G. Romualdez said the House of Representatives would also seek changes to EPIRA.
Congressmen would also seek to pass the proposed P6.352-trillion national budget for next year before Congress goes on a break again in September.
He said changes to EPIRA, which liberalized the power industry, would bring down electricity prices and ease inflation.
“We are also looking into the illegal drug trade to intensify our campaign against the proliferation of these substances,” he said.
The 19th Congress reopened for its final session after a two-month break.
The House has passed on final reading almost all the priority bills of the Legislative-Executive Development Advisory Council (LEDAC).
It would now fast-track changes to EPIRA and a bill that seeks to extend the lease period for foreign investors. Other pending measures include amendments to the Agrarian Reform law and another that will modernize national defense.
“We have to continue building roads, highways, ports, school buildings and climate change-proof structures to maintain and expand economic growth,” Mr. Romualdez said. “I emphasize our commitment to pass the remaining priority bills before the end of the third regular session.”
“We are ready and equally determined to ensure that these critical measures are enacted to support our nation’s progress and development,” he added.
The Speaker said in plenary that policies have been put in place, and “the gains of a competent, focused and thorough legislative process are now bringing significant improvements to our economy.”
“The fruits of our overarching development agenda initiatives for the past two years are now slowly being felt across the nation.”
Jose Enrique “Sonny” A. Africa, executive director of think tank IBON Foundation, said it is wrong to equate economic progress with growth given the increasing number of poor Filipino families.
“Most Filipinos haven’t become better off because of this growth,” he told BusinessWorld. “The number of self-rated poor families has soared by 3.4 million since the start of the Marcos administration from 12.6 million in June 2022 to 16 million in June 2024.”
TROPICAL Storm Carina (international name: Gaemi) intensified into a typhoon while meandering over the Philippine Sea, prompting the state weather bureau to raise tropical wind signals over some areas of Luzon.
In a 5 p.m. bulletin, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) raised tropical wind signal No. 1 over areas of Batanes, the eastern portion of mainland Cagayan, eastern Babuyan Islands and the northeastern parts of Isabela.
Wind speeds of 39 to 61 kilometers per hour (kph) and intermittent rains were expected within 36 hours, it said.
“Carina will remain far from the Philippine landmass and exit the Philippine area of responsibility on Wednesday evening (24 July) or early Thursday morning,” PAGASA said.
Strong winds were expected to extend outward up to 300 kilometers from the center of the typhoon.
PAGASA said the typhoon was expected to intensify in the next four days. “Rapid intensification within the forecast period is likely.”
Carina was last seen 420 kilometers east of Tuguegarao City, Cagayan province, and was moving slowly northwestward.
The weather bureau said Carina and the enhanced southwest monsoon would cause moderate to rough seas over the northern and eastern coasts of Luzon and the western seaboards of Central and Southern Luzon and Western Visayas.
“Mariners of small seacraft including all types of motorboats are advised not to venture out to sea under these conditions, especially if inexperienced or operating ill-equipped vessels,” it said.
Meanwhile, Manila Electric Co. (Meralco) said its workers were ready to respond to electricity-related concerns due to Carina.
“As a 24-hour service company, we are ready to respond to any trouble that may affect our facilities,” Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a statement.
People should observe safety measures when using electrical devices and appliances in case of flooding, he said.
These include turning off the main electrical power switch or circuit breaker, unplugging appliances from wall sockets and making sure that all electrical wires are completely dry.
“When all electrical wires and accessories have dried and are clean, the wiring system of all appliances must be checked by a licensed electrician. Do not turn on flood-damaged electrical appliances,” the power distributor said. — Adrian H. Halili and Sheldeen Joy Talavera
THE CHINESE Embassy in Manila on Monday urged the United States to explain its alleged smear campaign in the Philippines against Chinese coronavirus vaccines, asking its economic rival to stop vilifying them.
“The US should give a long-overdue explanation to the international community both for its dissemination of disinformation over the years for selfish reasons and for the severe damage inflicted by the US ‘deception’ strategy and anti-Sinovac propaganda in the Philippines,” it said in a statement.
“The US is urged to quit those wrongful approaches at once, stop manipulation through lies and halt smearing and vilifying other countries.”
The agency was reacting to infectious disease expert Edsel Maurice T. Salvaña’s statement at the weekend saying Washington’s alleged campaign had led to “unnecessary suffering and deaths among those who were hesitant to take available vaccines.”
Kanishka Gangopadhyay, the spokesperson for the US Embassy in Manila, told BusinessWorld in a Viber message the US Defense department is better suited to comment on the issue.
Reuters earlier reported at least 300 X accounts based in the Philippines discredited Chinese coronavirus vaccines during the pandemic, matching the descriptions of the vaccine by former US military officials.
In a statement last week, US Defense spokesperson Lisa Lawrence said the agency “uses a variety of platforms, including social media, to counter those malign influence attacks aimed at the US, allies and partners.” — John Victor D. Ordoñez
VARIOUS labor groups on Monday sought the passage of a legislated wage increase as President Ferdinand R. Marcos, Jr. delivered his third State of the Nation Address (SONA) before Congress.
The Trade Union Congress of the Philippines (TUCP) urged the President to certify as urgent the proposed Wage Recovery Act, which mandates an across-the-board wage hike of P150.
“Only Congress holds the key to raise workers’ wages at levels that can afford three nutritious meals daily for their families and ensure their decent lives in the spirit of simple fairness and social justice,” TUCP said in a statement. “A substantial wage hike today is an investment for a bright tomorrow with a healthy and competitive future workforce.”
The group also urged Speaker Ferdinand Martin G. Romualdez to prioritize the legislated wage hike under House Bill No. 7871 as “deserved by every Filipino worker.”
The Federation of Free Workers echoed the clamor for a P150 legislated wage hike, while the Bukluran ng Manggagawang Pilipino, Sanlakas and Partido Lakas ng Masa called for a P750 across-the-board increase under the House Bill No. 7568. — Chloe Mari A. Hufana
THE DEFENSE department on Monday dismissed as “fake” a video released by ex-President Rodrigo R. Duterte’s allies at a rally in the United States showing what looked like a younger President Ferdinand R. Marcos, Jr. sniffing something inside a rest room.
The video was an attempt to destabilize the Marcos government, Defense Secretary Gilberto C. Teodoro, Jr. said in a statement.
The propagandists seek to escape Philippine criminal justice by releasing the “contrived” video outside the country, he added. “We urge the proper US authorities to investigate and bring to justice the perpetrators of this disgusting act.”
Interior and Local Government Secretary Benjamin “Benhur” Abalos, Jr. ordered the Philippine National Police to form a task force to investigate the supposed deepfake. — Kyle Aristophere T. Atienza
COTABATO CITY — Members of the Dawlah Islamiya attacked on Saturday afternoon a roadside Army detachment in Shariff Saydona Mustapha town in Maguindanao del Sur, killing a soldier and causing panic among villagers.
The soldier died on the spot from multiple bullet wounds, local police said. His companions and he were inside their fenced roadside detachment in the village of Pagatin 1 in Shariff Saydona Mustapha when about 20 Dawlah Islamiya members armed with M14 and M16 assault rifles approached from two directions and opened fire, sparking a gunfight.
Local officials and village leaders told reporters the group that perpetrated the attack was led by Ben Harris Salamat, known among the Dawlah Islamiya and Bangsamoro Islamic Freedom Fighters as Nakan. He is wanted for multiple murder, extortion, armed robbery and coddling of drug traffickers.
Mr. Salamat and his men escaped after government troops returned fire, wounding at least three of them, according to authorities and villagers. — John Felix M. Unson
THE METROPOLITAN Manila Development Authority (MMDA) launched its Mobile Command Center in time for President Ferdinand R. Marcos, Jr.’s State of the Nation Address (SONA) on Monday.
“The MCC is equipped with state-of-the-art communication systems such as a portable command and dispatch system, multimode radio and remote CCTVs and drone capabilities,” MMDA acting Chairman Romando S. Artes said in a statement.
“It could be used for monitoring significant events like the President’s annual SONA and during times of disasters and road emergencies,” he added.
The center also has a satellite internet service and a surveillance system with eight deployable cameras that can be monitored through a video wall.
Mr. Artes said the MMDA would work with the Interior and Local Government department and national police so its center could be used during emergencies.
The center aims to improve traffic management and public safety monitoring across Metro Manila. — Chloe Mari A. Hufana
