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Shares drop as oil’s climb kindles inflation fears

BW FILE PHOTO

STOCKS dropped on Monday as Ukraine refused to surrender to Russia, which caused oil prices to rise anew, raising fears of an earlier-than-expected rate hike by the Bangko Sentral ng Pilipinas (BSP) to tame inflation.

The benchmark Philippine Stock Exchange index (PSEi) fell by 51.03 points or 0.72% to close at 6,956.60 on Monday, while the broader all shares went down by 20.41 points or 0.54% to 3,697.63.

“The market [is] apparently apprehensive about reversals in the Ukraine-Russia ceasefire talks, which means oil prices will remain elevated as well as inflation expectations, threatening corporate profit margins and potentially limiting policy space for the BSP to keep interest rates low and steady,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

“Philippine shares slid with oil prices climbing once more and investors continuing to digest the recent Fed (US Federal Reserve) rate hike decision and developments over Ukraine-Russia peace talks,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Ukraine on Monday rejected Russian calls to surrender the port city of Mariupol, where residents are besieged with little food, water and power in a humanitarian crisis that is increasing pressure on European leaders to toughen sanctions on Moscow, Reuters reported.

Ukraine’s government defiantly rejected Russian calls for Ukrainian forces in Mariupol to lay down their arms in exchange for safe passage out of the city and humanitarian corridors to be opened from 1000 Moscow time (0700 GMT) on Monday.

Mariupol has suffered some of the heaviest bombardments since Russia invaded Ukraine on Feb. 24. Many of its 400,000 residents remain trapped as fighting rages on the streets around them.

Oil prices also lost ground last week, but were pushing higher on Monday as there was no easy replacement for Russian barrels in a tight market.

Brent was quoted $3.32 higher at $111.25, while US crude rose $3.36 to $108.06 a barrel.

Analysts last week said they expect the Philippine central bank to raise benchmark interest rates before mid-2022 to quell inflation amid the Russia-Ukraine crisis.

Majority of the sectoral indices ended in the red except for services, which rose by 7.18 points or 0.38% to 1,855.92.

Meanwhile, mining and oil declined by 279.21 points or 2.21% to 12,318.70; industrials fell by 120.69 points or 1.27% to 9,331.59; holding firms went down by 68.31 points or 1.01% to 6,644.62; property lost 24.55 points or 0.73% to 3,337.73; and financials retreated by 10.85 points or 0.66% to 1,624.33.

Value turnover decreased to P7.6 billion with 974.8 million shares changing hands from the P27.6 billion or 1.65 billion issues seen the previous trading day.

Decliners outnumbered advancers, 103 versus 78, while 53 names closed unchanged.

Net foreign selling went down to P860.2 million on Monday from P3.04 billion on Friday. — L.M.J.C. Jocson with Reuters

Peso inches lower vs the dollar on PSEi’s drop, central bank meeting

BW FILE PHOTO

THE PESO inched down against the dollar on Monday following the benchmark stock index’s decline and as the market expects the central bank to keep interest rates steady at its meeting this week to support economic recovery.

The local unit closed at P52.35 per dollar, slipping by 1.5 centavos from its P52.335 finish on Friday, based on data from the Bankers Association of the Philippines.

The peso opened Monday’s session at P52.31 against the dollar, stronger than its Friday close. That was also its best showing for the day, while its intraday low was at P52.40 versus the greenback.

Dollars exchanged sank to $599.80 million on Monday from $1.44 billion on Friday.

“The peso weakened amid market expectations that the BSP (Bangko Sentral ng Pilipinas) will hold its policy rate unchanged despite growing domestic inflationary concerns,” a trader said.

The BSP’s policy-setting Monetary Board is expected to keep benchmark interest rates steady at its March 24 meeting as it supports economic recovery, 15 out of 17 analysts polled by BusinessWorld said.

Global oil prices have been surging after the Feb. 24 Russian invasion of Ukraine, further raising inflation concerns here and abroad.

Oil prices also lost ground last week, but were pushing higher on Monday as there was no easy replacement for Russian barrels in a tight market, Reuters reported.

Brent was quoted $3.32 higher at $111.25, while US crude rose $3.36 to $108.06 a barrel.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the peso weakened as local stocks also declined on Monday.

The benchmark Philippine Stock Exchange index (PSEi) fell by 51.03 points or 0.72% to close at 6,956.60 on Monday, while the broader all shares went down by 20.41 points or 0.54% to 3,697.63.

“Peso also weaker after the latest hawkish signals from Fed (US Federal Reserve) officials…and higher US Treasury yields recently after the widely expected…Fed rate hike and more expected to come based on the latest Fed dot plot…” Mr. Ricafort added.

The Fed last week raised rates by a quarter percentage point, the first time since 2018, to help combat rising inflation. It penciled in six more increases for the rest of 2022.

For Tuesday, the trader said the peso might weaken further due to likely hawkish comments from Fed Chair Jerome H. Powell at the National Association for Business Economics Annual Economic Policy Conference scheduled later on Monday.

The trader expects the local unit to move between P52.25 and P52.50 on Tuesday, while Mr. Ricafort gave a forecast range of P52.25 to P52.45 per dollar. — with Reuters

Comelec urged to fast-track Marcos decision

PALACIO del Gobernador, where the Comelec holds office — PATRICK ROQUE

By John Victor D. Ordoñez

A PARTY-LIST group on Monday asked the Commission on Elections (Comelec) to fast-track its decision on a lawsuit that seeks to disqualify the son and namesake of the late dictator Ferdinand E. Marcos from the presidential race this year.

“We see no reason for the Comelec to further delay the resolution of this case, especially that the membership of its en banc is now complete,” the Akbayan Party-list group said in a letter.

“Any further delay is already a gross disservice to the voting public and our electoral system and favors Marcos, Jr.’s grand fakery,” it added, referring to former Senator Ferdinand “Bongbong” R. Marcos, Jr.

The Comelec full court has yet to decide on several cases seeking to disqualify Mr. Marcos from the presidential election.

Akbayan, one of the plaintiffs, earlier asked the election body to disqualify the former lawmaker after a trial court convicted him of tax evasion in the 1990s. The case is on appeal with the Comelec full court.

The group’s petition was one of three consolidated lawsuits junked by the Comelec First Division, as it ruled that Mr. Marcos’s failure to file his tax returns in the 1980s did not involve wicked, deviant behavior.

The Second Division rejected a similar petition in January, which ruled that Mr. Marcos did not mislead the public when he said in his certificate of candidacy that he was eligible to run for president. The case is also on appeal with the en banc.

Martial law victims earlier asked Comelec to also resolve a similar lawsuit, noting that delaying the case could lead to complications, especially with the May 9 elections nearing.

The election body has reorganized its divisions after President Rodrigo R. Duterte appointed new members.

Newly appointed Comelec Chairman Saidamen B. Pangarungan last week said the en banc would fast-track the resolution of the lawsuits.

Akbayan also cited the Bureau of Internal Revenue’s confirmation that the Marcos family has yet to pay billions of pesos of estate and income taxes as an “urgent and compelling” reason to disqualify Mr. Marcos.

“The Comelec has no other recourse but to disqualify Bongbong Marcos,” the group wrote. “Its decision will go a long way in ensuring that the public not only chooses wisely, but that does so based on the rule of law and the integrity of our electoral democracy.”

Meanwhile, political analysts said Comelec should wrap up its investigation of a data breach involving Smartmatic SGO Group, the software contractor for this year’s automated elections, no later than April to preserve the integrity of the elections.

Last week, Senator “Imee” R. Marcos said Smartmatic data had been breached, which she said could compromise this year’s elections.

Some losing candidates might use this “ammunition” to claim fraud, said Hansley A. Juliano, a former political science professor studying at Nagoya University’s Graduate School of International Development in Japan.

“It would be best if Comelec and the National Bureau of Investigation (NBI) are wrapped up within the month or no later than April because we’re truly expecting the May 9 results to be hotly contested,” he said in a Facebook Messenger chat.

“It’s going to be rough for whoever wins — regardless if they win by a comfortable margin — since it will always cast a shadow throughout their tenure,” he added.

The Manila Bulletin in January reported on the hacking, which led to the investigation. Sensitive voter information might have been compromised after a group hacked the servers of Comelec, downloading more than 60 gigabytes of data, it said.

Comelec spokesman James B. Jimenez earlier said the Comelec system had not been hacked.

Ms. Marcos noted that despite the denial of the hacking, the media was right. It was reported that a Smartmatic employee had taken his laptop out, allowing a certain group to copy data. A hacking syndicate might have been involved, she added.

“This issue, if not resolved by the commission as early as possible, will have severe repercussions on people’s trust and confidence in Comelec,” Marlon M. Villarin, a political science professor from the University of Santo Tomas, said in a Viber message.

Election Commissioner George M. Garcia earlier said Comelec would wait for the NBI to send a full report to the agency.

Senate President Vicente C. Sotto III said that the Senate would collaborate with election and technical experts to investigate the security breaches.

“Considering that the campaign is already very bitterly contested, I don’t expect at least the Top 3 frontrunners to take that lying down come May 2022,” Mr. Juliano said.

Congress has time to change Oil Deregulation law

PHILIPPINE STAR/ MICHAEL VARCAS

LAWMAKERS still have time to change the country’s Oil Deregulation law even if President Rodrigo R. Duterte decides not to call for a special session, according to the Senate president.

“It’s a little tight but it’s possible,” Senate President Vicente C. Sotto III told Radyo Singko News in Filipino on Monday. “If it is truly necessary, we can probably pass that by the last week of May.” 

Congress, which is on an election campaign break, will resume sessions on May 23 until June 3 before it is replaced by the next Congress.

Although issues remain, since there is a need to convert into the Presidential Canvassing Board, he said the schedule can still be discussed to fit a proper review of the Republic Act No. 8479, also known as the Downstream Oil Industry Deregulation Act of 1998.

Senators have sought a review of the law that removed government control on fuel pricing, exports and imports amid surging global fuel prices.

Mr. Sotto said he wants to outlaw unwarranted oil price increases. “It shouldn’t be like that,” he said, citing price increases for old stock.

Senate Bill 868, which seeks to amend the Oil Deregulation law, is pending at a Senate committee. “Although I have not read the whole bill, my opinion as of now would be that we need to open the door so that there is still government regulation.”

Mr. Sotto also said the Senate does not have time to concur on the Regional Comprehensive Economic Partnership. The next president would have to resubmit it to the Senate in July, he added.

The mega-free trade deal involving Australia, China, Japan, South Korea, New Zealand and the 10 members of the Association of Southeast Asian Nations was signed in Nov. 2020. It has been in force in 11 countries since Jan. 1. — Alyssa Nicole O. Tan

Russia to continue bilateral relations with Philippines

RUSSIAN AMBASSADOR MARAT IGNATYEVICH PAVLOV — PCOO.GOV.PH

A RUSSIAN Ambassador says he expects continued bilateral cooperation with the Philippines amid growing global sanctions.

Russia’s ambassador to the Philippines on Monday said that he expects bilateral cooperation with the Philippines to continue amid growing global sanctions on Russia after it invaded Ukraine.

“We have many fields of cooperation, so we hope the Philippine side will continue to cooperate with us and interact with us in different fields, and it will be considered an act of our friendship,” Russian Ambassador Marat Ignatyevich Pavlov told a forum.

President Rodrigo R. Duterte last week called Russian President Vladimir Putin his personal friend, vowing to stay neutral on the Russia-Ukraine war. He said he would not send a single Filipino soldier to war because it is “not our battle to fight.”

Mr. Duterte might open the country’s facilities to the US if the Ukraine-Russia crisis spills over to Asia, Philippine Ambassador to the US Jose Manuel G. Romualdez said last week, citing the country’s “special relationship” with the US.

Mr. Pavlov called Mr. Duterte’s pronouncement of neutrality a “wise position” because both nations have been showing “an equal, fair and mutually beneficial interaction in many fields.”

“The economic cooperation between the two countries has been steadily growing,” he said, noting that bilateral trade hit $1.2 billion (P62.9 billion) in 2019 from just $486 million in 2010.

“Russia is ready to satisfy the Philippine side’s demand for fuel and food supplies,” including pork and fish, he added.

Mr. Pavlov said Russian companies are interested in building power plants in the Philippines as well as in energy, oil and gas exploration projections.

He also found promising a potential cooperation on the development of nuclear energy. The Philippines, he added, has confirmed its readiness to conduct a feasibility study to install nuclear power facilities in the country.

“Our bilateral trade and economic relations have a great potential for further development,” Mr. Pavlov said.

Russia has released a list of 48 “unfriendly” countries and territories whose corporate deals would now need government approval after they joined a global drive to impose economic sanctions on Russia.

“It’s easier to pull down than to build,” Mr. Pavlov said, calling the response of the West “hysterical and out of proportion.”

“The goal of the sanctions is much more strategic than just Ukraine,” he said. “We are witnessing in Ukraine the acquiescence of the western course — a strategic course to marginalize Russia, to contain Russia, to stop Russian development and to reduce Russia to zero growth,” he added. — Alyssa Nicole O. Tan

Namfrel says citizen watch could deter poll fraud as it denies being in talks on massive cheating

THE NATIONAL Citizen’s Movement for Free Elections (Namfrel) has denied statements circulating on social media claiming that the group has been involved in discussions about supposed massive cheating during the May 9 elections. 

In a statement on Monday, Namfrel said such claims are propaganda,which undermine the outcome of the electoral exercise, for which different stakeholders are working hard to ensure that they will be successfully conducted, free, and fair.”  

The poll watchdog, which has a network of volunteers nationwide, said election fraud could be prevented with citizen participation.    

“Namfrel believes that active vigilance, critical engagement with and assistance to the Comelec (Commission on Elections) as it prepares for the polls, and citizens’ observation of the process are assurances that will help dispel fears of cheating during the vote count and manipulation in the coming elections,” it said.  

Last week, Namfrel along with political party representatives and members of the media participated in the Comelec’s ballot printing walkthrough at the National Printing Office.  

“Without compromising the security of the ballots and data cards, we will allow full access to the printing process,” Comelec Chairman Saidamen Balt Pangarungan said at the event last week.  

The election body started printing ballots in January but only recently allowed actual observation of the process, citing risks of coronavirus transmission.  

Comelec also said it would allow the random ballot testing requested by election lawyer Romulo B. Macalintal. 

Mr. Macalintal earlier asked the election body to examine randomly selected ballots in the presence of representatives of political parties and candidates so they can test the security of the printing process.  

He also asked Comelec to provide candidates with a full inventory of the ballots per province, city, and municipality, and allow observers during the remaining printing process.  

On allegations of a data breach in the Comelec system that the poll body officials have already denied, Commissioner George M. Garcia said they will wait for the National Bureau of Investigation to send a full report on the incident. John Victor D. Ordoñez

Lacson plans to appoint new BTA members; Pacquiao for continuity; 3 other candidates to hold consultations

BANGSAMORO GOVT

THREE presidential candidates Vice President Maria Leonor LeniG. Robredo, Manila Mayor Francisco IskoM. Domagoso, and labor leader Leodegario Ka Leodyde Guzmanwill first hold stakeholder consultations before making any changes in the Bangsamoro Transition Authority (BTA), their representatives said at a forum last week.

Senator Emmanuel MannyD. Pacquiao, on the other hand, aims to allow the current BTA to finish the jobuntil 2025 while Senator Panfilo M. Lacson intends to use the presidents authority to appoint members of the 80-member body. 

Discussions are always welcome when it comes to continued term,senatorial candidate Teodoro TeddyB. Baguilat, Jr. under Ms. Robredos slate said at the Bangsamoro Agenda 2022 forum. 

What is more important for Leni Robredo is to address the (regions development) road mapto ensure transition by 2025,he added in mixed English and Filipino.  

Mr. Baguilat said wide-reaching consultations with various Bangsamoro sectors, including non-moro indigenous peoples, should be held to develop criteria on choosing BTA representatives before making new appointments.

Mr. De Guzmans campaign manager, Sonny Melencio, also said wider consultationsare important given the sensitivity of issues relating to the restive regions transition.  

He said decisions should not be simply handed down from Imperial Manila,an expression that implies Mindanaos aversion to the national government given that choices have been historically inequitable for the southern islands.  

Senatorial candidate Samira Gutoc-Tomawis under Mr. Domagosos Aksyon Demokratiko party said while the mayor has committed continuityto the Bangsamoro leadership, this will be subject to some operational discussions like merit-based audit on achievements.” 

Senator Aquilino KokoPimentel III, chair of the PDP-Laban faction supporting Mr. Pacquiao, said their partyd default positionis to allow the current crop of BTA members to finish the job.”  

But of course, if there is a compelling reason from consultation with the leaders on the ground that there is a need to change the members, then we will do it,Mr. Pimentel added.   

Senatorial candidate Emmanuel F. Piñol, meanwhile, said Mr. Lacson believes that he is duty-bound to implementthe presidents mandate to appoint BTA members.   

His mindset is always the majesty of the law,Mr. Piñol said, noting Mr. Lacsons career as a police officer.   

He (Mr. Lacson) assures that appointments will be based on merit and fitness, with the ultimate goal of promoting the interests of the Bangsamoro people,Mr. Piñol said.   

Republic Act 11593, signed in October last year, postponed the first regular Bangsamoro regional elections to 2025 from 2022. This effectively extended the transition period by three years. It includes a provision giving authority to the Presidentto appoint the BTA members.   

President Rodrigo R. Duterte, who is leaving office on June 30, approved earlier this month a recommendation to extend the current BTA members term. Marifi S. Jara

Robredo compliments people-led campaign as 130,000 supporters gather 

OPPOSITION presidential bet Vice President Maria Leonor LeniG. Robredo at the weekend said the campaign rally for her in an avenue near the Philippine capital regions major thoroughfare is a peoples crusade that should enjoin more citizens to fight for a transparent government, which is her main battlecry.  

It is so clear to me right now: Hope is at the heart of our peoples campaign,she said in Filipino before a crowd of at least 130,000 gathered along Emerald Avenue in Pasig City.   

The presidential candidate said the hope cultivated in her peoples campaign is brought about by volunteers who managed to overcome repression by authorities during the campaign season.  

Election campaigns in the Philippines are traditionally mobilized through political machineries with support from local government officials.  

The hope is brought about not by the candidate standing here, but the hope of fellow Filipinos who walked with you when roads were blocked, who painted murals that had been erased, who repacked goods with you for victims of calamities,she said.  

Ms. Robredo vowed that should she be elected president, she would ensure that jobs would be available, healthcare would be accessible, transportation would be reliable, and housing and infrastructure would serve families. Most of all, the female candidate promised to install a people-led government, which veers away from the influence of political families.  

Emerald Avenue is located near an EDSA monument built to commemorate the Filipino peoples uprising against the late dictator Ferdinand E. Marcos, whose son and only namesake is leading in pre-election surveys.   

Ms. Robredo defeated Mr. Marcos in the 2016 vice-presidential election by just over 260,000 votes. There were more than 54.36 million registered voters that year with an 81.95% turnout.   

During Sundays program, the vice president admitted that even if hundreds of thousands of supporters gathered for her campaign rally, theres still so much of those not here with us today.”   

I just want to tell them that you are all welcome here,she said, as she exhorted everyone to go outdoors and share her campaign message.   

Fifty days to go. Fifty days, Pasig and NCR (National Capital Region). Can we still double our efforts?she asked her supporters. We started from almost nothing and we are here now. We still have 50 days to campaign.”  

Ms. Robredos main rival, Mr. Marcos, has refused to participate in main presidential debates.  

Ms. Robredo and other rivals, including Manila Mayor Francisco IskoM. Domagoso, labor leader Leodegario Ka Leodyde Guzman, and Senator Panfilo M. Lacson said during a debate last Saturday organized by the Philippine poll body that the government should go after the Marcos family’s unpaid estate tax, which could be used to fund social services amid surging global fuel prices.  

A day after, Mr. Marcos urged the Filipino electorate to respect voters’ freedom to choose their next set of leaders, saying there is no “reason for us to fight with one another over whom to support in the upcoming elections.”   

The debate skipper, whose candidacy has been opposed by a number of civic groups due to his failure to file income tax returns, said his response to “hateful speeches” has always been to maintain a “dignified silence.”  

The late dictator’s heirs owe the government billions of pesos in estate and income taxes, the agency tasked to recover the family’s ill-gotten wealth said last week.  

The P23-billion estate tax had ballooned to P203.8 billion due to interests and penalties after the Marcos family refused to pay it, according to Mr. Domagosos political party, citing computations by retired Supreme Court Justice Antonio T. Carpio in a Sept. 30, 2021 column for the Philippine Daily Inquirer. Kyle Aristophere T. Atienza

Over 107,000 fuel subsidy cards released — LTFRB

PHILIPPINE STAR/ MICHAEL VARCAS

A TOTAL of 107,926 fuel subsidy cards has been distributed to the public transport operators and drivers as of Friday, an official of the Land Transportation Franchising and Regulatory Board (LTFRB) said in a House committee hearing Monday.  

The released cards comprise less than half of the 264,443 target, which the agency aims to complete by the end of March.    

We just received the budget from DBM (Department of Budget) Friday March 11. On March 14 we were able to open from DoTr (Department of Transportation),LTFRB Regional Director Russet M. Tamayo said in Filipino in a live-streamed hearing.    

Each beneficiary for this new round of subsidy will get P6,500 worth of fuel, including jeepneys, buses, UV express, taxi, shuttle, tourist transport, app-based transport network vehicle service, motorcycle taxis, and delivery services.   

However, House Minority Leader and Bayan Muna Rep. Ferdinand R. Gaite along with transport organizations raised the need for LTFRB to update its records as some subsidy cards are still designated to previously registered owners of vehicles instead of the current one.   

Meanwhile, LFTRB Chairman Martin B. Delgra III said he will meet with House Minority Leader and Abang Lingkod Rep. Joseph Stephen S. Paduano, Bacolod Rep. Greg G. Gasataya and the agencys regional director to discuss the ongoing driversstrike in Bacolod City.   

After this, we will get in touch with the regional director in Region 6 (Western Visayas) to verify the report and also to get in touch with Congressman Gasataya on the way forward to address it,Mr. Delgra said. Jaspearl Emerald G. Tan

DHL Express PHL upgrades screening facility in Manila to quickly detect illegal items 

DHL.COM.PH

INTERNATIONAL express service provider DHL Express Philippines announced on Monday an upgrade to its screening technology aimed at ensuring that any attempt to ship illegal items and dangerous commodities across its network is quickly spotted. 

Thissupports the local Philippine Bureau of Customsmandate to strengthen border security,the company said in an e-mailed statement.  

It said the new equipment will be used at its Manila airport office to inspect incoming and outgoing palletized goods and cargo.  

The new equipment will provide better support to the companys operations and compliance teams in processing higher volumes of shipment because it can scan at a faster rate and with more precision.”  

Nigel Lockett, country manager at DHL Express Philippines, said: “We take our role in border security very seriously and ensure that we remain a secure and trusted network for our customers.”  

This advanced detection system is the first for the year, and we will continue upgrading our operational technology by adding six new equipment in Manila, Ortigas, and Cebu,he added. Arjay L. Balinbin 

43% of Filipinos consider themselves poor in Q4 2021 — SWS 

ABOUT 43% of Filipino families consider themselves poor, according to a Dec. 2021 poll conducted by Social Weather Stations (SWS).  

The SWS said in a statement on Monday that this translates to an estimated 10.7 million families, which is lower than the 11.4 million based on the September survey last year.  

SWS said the fourth quarter survey showed that 39% of families considered themselves borderline poor,while 19% felt they are not poor. 

The group said the percentage of families who rated themselves as poor fell in Mindanao to 43% from 58%, and in Metro Manila to 25% from 34%. On the other hand, there were slight increases in the Visayas and in Balance Luzon.  

SWS said about 6.9% or equivalent to 1.7 million of people who said they were poor rated themselves as non-poor a year to four years ago.  

The survey, which was conducted from Dec. 12 to 16, interviewed 1,440 adult Filipinos from across the country. The sampling error margins are ±2.6% for national percentages, and ±5.2% for Balance Luzon, Metro Manila, the Visayas, and Mindanao. Kyle Aristophere T. Atienza 

Food protection

DPWH

FARMLANDS along the San Juan River Basin in the Cordilleras in northern Philippines are protected by flood control structures. The Department of Public Works and Highways spent a total of P722 million in 2021 for 28 flood control projects in the region, including construction, repairs and maintenance.