Bargain hunting lifts PHL stocks ahead of US data

December 20, 2022 | 9:00 pm

PHILIPPINE shares rebounded on Tuesday on bargain hunting and as investors shied away from Wall Street ahead of US housing data releases within the week.

The 30-member Philippine Stock Exchange index (PSEi) added 43.85 points or 0.68% to close at 6,458.12 on Tuesday, while the broader all-shares index increased by 17.09 points or 0.50% to 3,384.4.

“The PSEi headed higher today as likely driven by bargain hunting following three straight days of losses and the successful test of the 6,380-6,400-support level,” China Bank Securities Corp. Research Director Rastine Mackie D. Mercado said in an email.

“Investors turned bargain hunters finally in the Philippines, as the fading Santa Claus rally in the US increased recession concerns,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Wall Street continued its losing streak on Monday as investors shunned riskier bets amid recession fears, Reuters reported.

The Dow Jones Industrial Average fell by 162.92 points or 0.49% to 32,757.54; the S&P 500 lost 34.70 points or 0.9% to 3,817.66; and the Nasdaq Composite dropped by 159.38 points or 1.49% to 10,546.03.

Tomorrow, investors are expected to price in the US housing data set to be released overnight.

“This week promises lots of insight into the housing industry. Sales data for existing homes and new homes will be released Wednesday and Friday, respectively,” said Mr. Limlingan.

Most of the sectoral indices closed higher on Tuesday except financials, which inched down by 1.33 points or 0.08% to close at 1,627.11.

Meanwhile, services climbed by 32.58 points or 2.09% to close at 1,590.47; mining and oil added 115.11 points or 1.13% to 10,275.60; property increased by 18.47 points or 0.65% to 2,842.07; holding firms rose by 35.41 points or 0.56% to 6,352.19; and industrials went up by 40.53 points or 0.44% to close at 9,227.87.

Value turnover declined to P5.58 billion on Tuesday with 509 million shares changing hands from P18.72 billion with 1.31 billion issues traded on Monday.

Advancers outnumbered decliners, 90 versus 77, while 48 names closed unchanged.

Net foreign selling went down to P427.62 million on Tuesday from P1.01 billion seen the previous trading day.

“Further gains in the days ahead may be forthcoming as the technical bounce continues,” China Bank Securities’ Mr. Mercado said.

He placed the PSEi’s immediate resistance at the 6,650-6,700 levels. — Justine Irish D. Tabile

Fertilizer deal being negotiated with various governments

December 20, 2022 | 8:26 pm

THE Department of Agriculture (DA) said the Philippines is negotiating with various countries a government-to-government fertilizer supply deal, with a target signing date of January.

“We are still finalizing the volume in the coming days. Hopefully we will be able to close the deal within January,” Agriculture Assistant Secretary Arnel V. de Mesa said during the DA’s yearend briefing on Monday.

Mr. De Mesa said the negotiations are taking place with several countries, which he did not identify.

“We are looking at all countries, the President said we need to get the least-cost fertilizer. We need to secure the transaction to ensure that by the time we need it, prices won’t go up,” he said, referring to the planting season, where fertilizer will be in demand.

In July, President Ferdinand R. Marcos, Jr., who concurrently serves as the Agriculture Secretary, said that the government is planning to pursue government-to-government deals with top suppliers of fertilizer such as China and Russia.

“This is not yet final. We are considering all countries, which one will be the most advantageous for the government,” he said.

He said that the fertilizer should be landed before the wet season begins.

“For government-to-government deals, we hope to close it at a lower cost and higher volume,” he added.

According to the Fertilizer and Pesticide Authority, the average price of urea, which is the most commonly-used fertilizer, sold for P2,538.27 per 50 kilograms in the Nov. 7-11 period.

Mr. De Mesa said the DA is considering a voucher-based distribution scheme for the fertilizer obtained through the deal.

“It could be mixed, the one that we will be distributing is either through vouchers because we have already identified the farmers through RSBSA (the Registry System for Basic Sectors in Agriculture). Once the fertilizer is released, this can also be distributed through grants,” he said.

In October, the DA said it added P4.1 billion to the government’s fertilizer subsidy program to help cushion the impact of higher prices. — Ashley Erika O. Jose

Carbon tax to spur sustainability shift — Diokno

December 20, 2022 | 8:26 pm

air pollution — IMAGE BY DDATCH54/FLICKR/ CC BY-NC-SA 2.0

THE GOVERNMENT intends to use a carbon tax, which is currently under study, to steer large emitters towards more sustainable operations, Finance Secretary Benjamin E. Diokno said.

In a speech delivered on Dec. 14, the Department of Finance (DoF) said, Mr. Diokno described the department’s position on a carbon tax as “not waiting around for long-overdue commitments to materialize. We are moving ahead with reforms to quicken our shift to more sustainable practices.”

The DoF said in a statement that the carbon tax feasibility study is currently underway, with an eye towards deploying the revenue generated to fund sustainability projects.

The DoF added that the study was launched following the passage of House Bill No. 4102, or the proposed Single-Use Plastic (SUP) Bags Tax Act.

“The House of Representatives has approved a proposal to impose an excise tax on plastic bags. This will help regulate the consumption of single-use plastics as part of the Philippines’ contribution to reduce plastic pollution,” Mr. Diokno said.

According to the Senate website, the bill is currently pending in the Ways and Means committee.

Mr. Diokno announced the carbon tax study at the third plenary session of the Intervention for COP15 Finance Day, a gathering of finance ministers.

“As a developing country, the Philippines recognizes that healthy ecosystems underpin a green, resilient, and inclusive development. This vision requires massive finance flows and investment,” Mr. Diokno said in the conference.

In his speech, Mr. Diokno said finance ministers play a vital role in pushing for a green recovery.

Such ministers must “push for reforms that incentivize and finance the integration of biodiversity considerations into economic recovery and development,” he said.

COP15 is the 15^th conference of the Parties to the United Nations Convention on biological diversity. It took place from Dec. 7 to 19 in Montreal. — Aaron Michael C. Sy

Marcos pushes greater use of satellite imaging

December 20, 2022 | 8:26 pm

PRESIDENT Ferdinand R. Marcos, Jr. has instructed the Philippine Space Council (PSC) to help government agencies use satellite imaging in modernizing their operations, the Palace said.

In a statement on Tuesday, the Office of the Press Secretary said the President met with the PSC to explore possible applications of satellite imagery in business, agriculture and environmental protection.

“As I was explaining to you earlier, in terms of green, in terms of bio assets, there is now a way to quantify… fisheries (and) agricultural activity,” he was quoted as telling the council.

He also noted a possible application involving the measurement of carbon emissions. “But the beginning, the first step… will be to map.”

He noted that satellite data could aid carbon emitters in offsetting their activities by developing bio-diverse areas in the Philippines.

The PSC is the principal advisory body for the space program and oversees the allocation of resources to the Philippine Space Agency.

The President chairs the council, with Science and Technology Secretary Renato U. Solidum, Jr. as co-chair.

In October, Mr. Marcos said he supported the development of the Multispectral Unit for Land Assessment, a domestically developed satellite deployable by 2025.

“I believe that through the use of data and science, we will be able to ensure national security, even our readiness to respond to calamities and boost our economy,” he told space agency officials on Oct. 18. — John Victor D. Ordoñez

Regulators agree to consult on GOCC competition impact

December 20, 2022 | 8:25 pm

THE Philippine Competition Commission (PCC) said on Tuesday that it signed an agreement with the regulator overseeing government companies to promote competitive behavior in the latter’s activities, especially in mergers and acquisitions.

The PCC and the Governance Commission for Government-Owned and -Controlled Corporations (GCG) signed a memorandum of agreement (MoA) recently to formalize consultations with regard to government companies’ impact on competition in their industries.

Government companies overseen by the GCG are known as GOCCs.

The deal was signed to encourage coordination in ensuring “compliance with applicable competition laws and principles,” the PCC said in a statement.

GCG Chairperson Alex L. Quiroz said: “We are entering this partnership with the Philippine Competition Commission to promote competitive neutrality across the GOCC Sector.”

Under the deal, the PCC will provide assessments of the market impact of mergers or acquisitions involving GOCCs.

“The MoA facilitates consultations between the two agencies in implementing policies of mutual interest and coordination on merger review involving GOCCs,” the PCC said.

The GCG and PCC also agreed to conduct capacity-building activities and support the rollout of the National Competition Policy.

“The underlying principle of competitive neutrality is fairness. It means state-owned enterprises and private businesses compete and operate on a level playing field while recognizing GOCCs’ critical roles and interventions across sectors,” PCC Officer-in-Charge Johannes Benjamin R. Bernabe said.

The two parties also aim to collaborate on reviewing competition regulations and guidelines to “ensure that there is consistency adhering to both the National Competition Policy as well as the principle of competitive neutrality,” the PCC said. — Arjay L. Balinbin

BIR launches online registration system

December 20, 2022 | 8:25 pm

THE Bureau of Internal Revenue (BIR) said on Tuesday that it launched its Online Registration and Update System (ORUS) on Dec. 12.

“ORUS is one of the priority projects of the BIR aligned with this administration’s agenda on the digitalization and automation of processes, which will make it easier for taxpayers to comply with the BIR’s registration requirements,” BIR Commissioner Romeo D. Lumagui, Jr. said.

Beginning Dec. 12, users were able to issue a Taxpayer Identification Number (TIN) for foreigners within the South Quezon City jurisdiction.

The system also allows registration for businesses and the issuance of electronic Certificates of Registration, and Authority to Print (ATP); the registration of books of account; applications for ATP or the use of BIR Printed Receipts/Invoices; and the Enrollment of Employer Accounts to facilitate the issuance of TINs to employees.

Services are available in Manila, Quezon City, Davao City, and Makati City, as well as the southern and eastern areas of the National Capital Region.

Meanwhile, the registration of books of account was made available on Dec. 19 for Eastern Visayas, Calasiao, Pangasinan, Caloocan City, and Legazpi City.

Further down the line, the bureau said that the registration for books of account is upcoming for the Cordillera Administrative Region, Cavite, Batangas, Mindoro, Romblon, and Zamboanga City on Dec. 22. On Dec. 26, the service will be available in Tuguegarao City, Iloilo City, Cagayan de Oro City, and Butuan City.

For Pampanga, Bacolod City, Koronadal City, as well as taxpayers overseen by the Large Taxpayers (LT) Service including LT Divisions, LT Assistance Division, and Excise LT Regulatory Division, the service will be available on Dec. 29, the bureau said.

All other Regional District Offices will be able to offer ORUS services on Jan. 16.

ORUS can be accessed through the BIR website (www.bir.gov.ph) or directly through https://orus.bir.gov.ph/home.

Users must create an account to use ORUS by providing a valid e-mail address. In addition, taxpayers must also update their registration records, such as their e-mail address and contact information, using the S1905 – Registration Update Sheet, in accordance with Revenue Memorandum Circular No. 122-2022. — Aaron Michael C. Sy

Bicol town receives solar systems to power wells

December 20, 2022 | 8:25 pm

THE Department of Energy (DoE) said it installed solar-powered pumps to extract potable water from deep wells in Goa, Camarines Sur, as part of a demonstration project for local government units (LGUs), which are being encouraged to adopt more renewable energy (RE) in their communities.

“Through investments in off-grid and rural RE systems, local government units are encouraged to integrate RE into their own plans and policies,” the DoE said in a statement.

The solar well systems are part of the DoE’s Development for Renewable Energy Applications Mainstreaming and Market Sustainability (DREAMS) program.

The DoE said its partners for the solar pump installation in 10 water-deprived communities in Goa, are the Global Environment Facility, the Goa LGU, and the United Nations Development Programme.

The DoE and the Department of Interior and Local Government (DILG) have signed on to a plan to accelerate RE use at barangay, municipal, and provincial levels.

The DoE said that about 820 families in Camarines Sur have benefited from the project.

Goa Mayor Marcel S. Pan said that the completion of the project will provide relief to communities which had previously accessed water with some difficulty.

DREAMS is designed to reduce greenhouse gasses emissions via greater use of RE. It is part of a broader effort to increase the share of RE in the power mix.

A 2020 joint circular issued by the DoE and DILG directed LGUs to identify RE sources within their jurisdictions and incorporate RE into their development plans and streamline permits for RE projects.

“Investments in off-grid and rural RE systems are key contributors to the realization of the National Renewable Energy Program (NREP) goals,” Tea Jalin Ty, project monitoring and evaluation officer for the DREAMS project, said in a statement.

“RE can be the answer to problems of electrification, and even other social welfare issues like water and health,” Ms. Ty added. — Ashley Erika O. Jose

Gov’t agencies’ cash usage hits 94% at end of Nov.

December 20, 2022 | 8:25 pm

GOVERNMENT agencies raised their cash utilization rate to 94% by the end of November, the Department of Budget and Management (DBM) said on Tuesday.

The National Government, local governments and state-owned firms used 94% of the P4.01 trillion worth of Notices of Cash Allocation (NCAs) issued to them in the first 11 months, leaving P257.94 billion unused.

The year-earlier usage rate was 91%.

NCAs are a quarterly disbursement authority from the DBM issued to agencies, allowing the latter to withdraw funds from the Bureau of the Treasury for their spending needs.

Cash utilization increased due to the further easing of coronavirus disease 2019 (COVID-19) restrictions earlier in 2022, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This “fundamentally led to higher budget utilization, accelerated government spending in infrastructure and other government projects before the election ban, and the continued priority on infrastructure spending by the new administration,” he said.

The national elections were held on May 9, preceded by a ban on public works spending starting March 25.

“Earlier approval of the 2023 national budget would lead to higher government spending on infrastructure and other government programs/projects such as social services that would also encourage higher/faster utilization to accelerate economic growth and development,” Mr. Ricafort said.

Last week, President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 11936 or the General Appropriations Act outlining a P5.268-trillion national budget for 2023.

According to the DBM, line departments used 91% or P2.56 trillion of their NCAs in the 11 months, leaving P240.04 billion unused.

The Commission on Human Rights recorded the highest budget usage rate at 99%. Meanwhile, the Department of Information and Communications Technology posted the lowest rate of 67%.

Budgetary support to government-owned companies as well as allotments to local government units were 99% used in the 11 months, out of the P199.168 billion worth of NCAs issued.

The DBM said funds released to national agencies and local government units hit P5.15 trillion at the end of November, for a release rate of 97.4% on an adjusted budget of P5.29 trillion.

At the end of November, releases to government agencies and departments amounted to P2.83 trillion, for a utilization rate of 98.2%. — Keisha B. Ta-asan

PHL, France exploring further collaboration in agriculture

December 20, 2022 | 8:25 pm

THE Department of Agriculture (DA) said that the Philippines and France will explore possible areas of collaboration in agriculture.

In a statement, the DA said that French Ambassador to the Philippines Michèle Boccoz expressed interest in farm mechanization, the development of the dairy industry, irrigation, and agricultural insurance as possible areas of cooperation.

In 2017, the DA and the French Ministry of Agriculture, Agrifood, and Forestry signed an administrative agreement on the promotion of sustainable practices, food safety and security, the development of the livestock sector, the creation of wholesale markets, sanitation, and technical cooperation.

This agreement has also led to the establishment of the Philippines-France Joint Steering Committee on Agriculture.

The DA said that the next agricultural forum will be held in the Philippines in 2023. The first forum was hosted by the Philippines in 2017 while the second was hosted by France in 2019. — Ashley Erika O. Jose

US backs PHL Senate in China condemnation over sea row

December 20, 2022 | 8:16 pm

China-coastguard-ship-WESTERN-COMMAND-AFP — A CHINESE Coast Guard ship ‘shadowing’ a Philippine vessel on its way to deliver supplies on Dec. 17, 2022 to troops stationed at the BRP Sierra Madre, which is grounded in Ayungin Shoal in the West Philippine Sea. — WESTERN COMMAND AFP

By Alyssa Nicole O. Tan, Reporter

THE UNITED States has backed the Philippine Senate’s condemnation of China for what they described as harassment and encroachment in Philippine maritime territories in the highly disputed South China Sea, according to a statement released by the US Department of State.

“We join our Philippine allies in calling on the PRC (People’s Republic of China) to stop its provocative actions in the South China Sea,” US Department of State Spokesperson Edward “Ned” Price said in a tweet on Tuesday.

He cited Beijing’s “amassing of its maritime militia around Iroquois Reef and Sabina Shoal, and interfering with lawful Philippine fishing activities there.”

Washington said China’s actions obstruct the livelihood of Philippine fishing communities, noting that this reflected “continuing disregard for other South China Sea claimants and states lawfully operating in the region.”

The South China Sea, a key global shipping route, is subject to overlapping territorial claims involving China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

Each year, trillions of dollars of trade flow through the sea, which is also rich in fish and gas.

“Furthermore, we share the Philippines’ concerns regarding the unsafe encounter that the PRC Coast Guard initiated with Philippines naval forces in the South China Sea, as documented before the Senate of the Philippines on December 14,” Mr. Price said in a statement released by the US government.

STIRRING UP TROUBLE
The Chinese Embassy in Manila said the US Department of State’s Dec. 19 statement contain “unfounded accusations against China that attempt to stir up troubles and drive a wedge between China and the Philippines.”

“We strongly deplore and firmly oppose this,” the embassy said in a statement released on Wednesday.

“The US keeps meddling in the South China Sea disputes and trying to drive wedges between countries in the region, creating tensions and harming regional peace and stability. What the US has done is not to help anyone but to serve its own geopolitical interests,” it said.

The Senate recently adopted a still unnumbered resolution expressing “disgust” over China’s maneuvers in the South China Sea, noting risks that may lead to short and long-term implications for the Philippines’ national security.

Senator Francis N. Tolentino, in a privilege speech, brought up an allegedly “forceful” retrieval of a rocket debris that fell within Thitu Island, locally known as Pag-asa.

The Chinese Embassy in Manila did not release a statement after the Senate resolution.

Beijing earlier denied the cited skirmish, saying that “relevant reports are inconsistent with facts” as only a “friendly consultation” occurred during the incident.

“There was no so-called blocking of the course of a Philippine Navy boat and forcefully retrieving the object at the scene,” the Chinese Embassy said.

However, Mr. Tolentino presented a video at the floor which showed the “brazen” actions from Chinese coast guard vessels during the incident.

During the session, he also noted Chinese interference in the provision of humanitarian supplies to government personnel aboard the BRP Sierra Madre in the Second Thomas Shoal, locally known as Ayungin shore, as well as other incidents of debris falling within Philippine archipelagic waters.

The Philippines’ Department of Foreign Affairs “has undertaken appropriate diplomatic actions to protest and make known our views on the illegal actions of the Chinese Coast Guards,” Foreign Affairs Spokesperson Ma. Teresita C. Daza said in a WhatsApp message to reporters on Friday.

“We stand with our Philippine friends, partners, allies,” US Ambassador to the Philippines Mary Kay L. Carlson said in a tweet on Tuesday.

The US reiterated its support for the Philippines’ continued calls on China to respect international maritime rules, citing the United Nations Convention on the Law of the Sea and legal obligations under the 2016 arbitral ruling.

The Permanent Court of Arbitration based in the Hague upheld the Philippines’ rights to its exclusive economic zone within the disputed waterway.

China has repeatedly rejected the 2016 arbitral ruling, which voided its claim to more than 80% of the South China Sea based on a 1940s nine-dash line map.

“The United States stands with our ally, the Philippines, in upholding the rules-based international order and freedom of navigation in the South China Sea as guaranteed under international law,” Mr. Price said.

Doctors’ group raises alarm on possible job loss for 10K workers

December 20, 2022 | 8:16 pm

Healthworkers-DOH-EASTERN-VISAYAS — DOH-EASTERN VISAYAS

A GROUP of doctors who previously served under the government’s rural deployment program raised concern on Tuesday over the potential job losses of more than 10,000 health workers if local governments cannot sustain the Department of Health’s (DoH) human resource program.

In a statement, Doctors to the Barrios Batch 28 said the government should ensure the Philippines has enough healthcare personnel as the coronavirus pandemic continues to affect the country.

“We seek the plans of the DoH in ensuring that our colleagues will continue to have financial security through employment as intended in its devolution transition plan,” it said.

The group called on the DoH to ensure that local governments create permanent positions for workers who are under the department’s Human Resources for Health (HRH) program to secure their tenure.

DoH Officer-in-Charge Maria Rosario S. Vergeire did not immediately respond to a Viber message seeking comment.

The HRH is the agency’s program for deploying manpower to far-flung and remote communities that have inadequate health personnel.

Following the Mandanas-Garcia Supreme Court ruling, which gives local governments a bigger share in national taxes, the National Government will be transferring some of its functions to local units such as the DoH’s function of hiring healthcare workers.

The Doctors to the Barrios noted that a higher budget for local governments would be futile if they do not have the capability to manage the added responsibilities.

They also said the coronavirus pandemic caused a decrease in national tax collection, which means a lower budget allocated to local governments by 14%.

“In short of this, we ask the DoH to continue the employment of all allied health professionals, especially during this time in which LGUs (local government units) face financial difficulties brought about by the coronavirus 2019 pandemic,” the group said. — John Victor D. Ordoñez

Hydropower firm secures P2.6-B loan from LANDBANK for Bukidnon project

December 20, 2022 | 8:16 pm

Pulangi-River-Bukidnon-DPWH-PHOTO — The Pulangi River in Bukidnon. — DPWH

REPOWER ENERGY Development Corp. (REDC) has secured a P2.6-billion loan from the Land Bank of the Philippines (LANDBANK) for a 15-megawatt hydropower plant project in Bukidnon province, the state-owned bank announced on Tuesday.

In a statement, LANDBANK said the loan agreement signed Dec. 6 will partially finance the renewable energy project that will be handled by REDC subsidiary Cabanglasan Hydropower Corp.

The hydropower plant, which will tap the Pulangi River in Valencia City, is expected to be completed by 2025.

It will provide power supply to around 130,000 households in 15 towns in Bukidnon, a province in southern Philippines.

LANDBANK said the loan deal under its Renewable Energy Program is the latest in a series of financing support extended to REDC.

“Through the years, LANDBANK has collaborated with REDC and its subsidiaries towards advancing clean, sustainable, and reliable sources of renewable energy,” LANDBANK President and CEO Cecilia C. Borromeo is quoted in the statement.

REDC, according to its website, is a “renewable energy developer of mini-hydropower projects through a ‘clustered approach method’ where several projects are in a target area providing for shared economies of scale through common infrastructure, reducing the cost of development and improving the bottom line.”

“In just six short years of development, our group has brought 10 renewable energy power plants to operations — of which six are run-of-river hydropower, contributing around 50MW of clean energy to the grid,” REDC President Eric Peter Y. Roxas said in the bank’s statement.

“We have several hydropower projects under construction and in the pipeline, which we intend to bring to operations in the near future to help the country transition into a clean renewable, energy phase,” Mr. Roxas said.

As of end-October, LANDBANK said it has approved a total of P20.1 billion in loans to 56 borrowers under the Renewable Energy Program, including solar and biomass energy projects. — MSJ