How PSEi member stocks performed — June 10, 2022
Here’s a quick glance at how PSEi stocks fared on Friday, June 10, 2022.
Duterte sends off patrol ship to South China Sea
PRESIDENT Rodrigo R. Duterte on Sunday led the commissioning of a Coast Guard ship that is set to patrol Philippine-claimed territories in the South China Sea, years after foreign policy experts started criticizing him for his government’s lack of presence in the waterway.
Mr. Duterte, 77, rendered a salute to acknowledge the vessel as he formally allowed its commanding officer to start its official duty, the Philippine Coast Guard said in a Facebook post.
The agency said the ship would roam around the country’s maritime jurisdictions, including the South China Sea in the west and Philippine Rise eastward.
The vessel, named after Filipina revolutionary Melchora Aquino, is one of the two largest white ships acquired by the Transportation department for the coast guard.
It is modeled after the Japan Coast Guard’s Kunigami-class vessel that has a maximum speed of 24 nautical miles per hour and endurance of not less than 4,000 nautical miles, according to the coast guard.
Earlier in the day, Mr. Duterte and other Philippine officials participated in a ceremony to commemorate the country’s 124th Independence Day.
Defense Secretary Delfin N. Lorenzana, who joined the event, fainted and an ambulance brought him to a nearby hospital where he has since stabilized, the Defense department said in a separate statement.
The Defense chief, 73, fainted due to fatigue after his engagements outside the country, including a recent dialogue in Singapore with his foreign counterparts, the agency said. Extreme temperatures in the Philippine capital might have also led to his fatigue, it added.
Mr. Lorenzana last year said China had tried to stop a key defense treaty between the Philippines and the US.
Filipino experts have said a total foreign policy shift from the US to China is unlikely because the Philippine Defense establishment is staunchly pro-American.
Mr. Duterte led a foreign policy pivot to China when he took office in 2016 in exchange for investment pledges, most of which did not materialize.
The Philippines is a longtime ally of the US and both are committed to a bilateral defense treaty, Mr. Lorenzana had said when China accused Washington of sowing chaos in Southeast Asia.
Filipino activists and patriots have been calling on the Philippine government to pursue an independent foreign policy and scrap the country’s Mutual Defense Treaty with the US, which they said has violated the country’s sovereignty and led to human rights violations.
“Our country is not truly free,” progressive group Bagong Alyansang Makabayan (Bayan) said in a statement. “We are not free from foreign interventions involving the US and China, which are both in a race to control the South China Sea.”
In 2020, Mr. Duterte threatened to terminate a visiting forces agreement with America after the latter Embassy canceled the visa of Senator Ronald O. Dela Rosa, his former police chief who led his deadly war on drugs.
Activists said the military pact, which lays down the rules for the deployment of troops for war games, has favored the US.
“While we draw strength from learning our past, we must continue believing that there is still wisdom to be gained from our present choices, decisions and actions so we can shape a better future for our people,” Mr. Duterte said in his Independence Day speech.
Vice President Maria Leonor G. Robredo, who has been calling for a coalition of nations against China’s militarization and island-building activities in the South China Sea, urged Filipinos in a recorded video to “affirm what is right and true and assert the truths of our history.”
Ms. Robredo, whose six-year term ends this month, lost to Ferdinand R. Marcos, Jr. in the May 9 presidential race.
Critics have said Mr. Marcos is likely to pursue closer trade and investment ties with China. Last week, he called China the Philippines’ “strongest partner.”
Also on Sunday, civic groups and human rights advocates gathered at a national monument built to honor the victims of the Martial Law regime of Mr. Marcos’ late father.
They cited threats to freedom and scored the rise of disinformation, which academics consider as an emerging threat to democracy.
Political analysts have said civic groups and the international community would closely watch the moves of Mr. Marcos, who is widely seen as a continuity president, after he stayed mum on key issues during the campaign. — Kyle Aristophere T. Atienza
45 Immigration officials ordered fired after scam
THE OMBUDSMAN has ordered the dismissal of 45 Immigration officials linked to an airport scheme that extorted money from Chinese nationals in exchange for a seamless entry to the country.
In a dismissal order dated May 27 and sent to reporters on Sunday, Ombudsman Samuel R. Martires said the officials violated Bureau of Immigration rules. They were also ordered to pay a fine equivalent to a year worth of salary.
Mr. Martires said the workers acted “willfully and with a corrupt motive.”
On Friday, the Justice Department dismissed 18 Immigration officers based on its own investigation of the scam.
Justice Assistant Secretary Neal Vincent M. Bainto told reporters on Viber on Friday the officials had been dismissed for committing gross neglect of duty.
The Ombudsman earlier charged before the Sandiganbayan, the country’s anti-graft court, 43 Immigration officials connected to the scam with corruption.
Allowing foreigners to enter the country without stringent profiling and screening processes was to the “prejudice of the government and public interest,” according to the indictment document sent last week.
The rolls of money received by the agents were made to look like a Filipino treat called pastillas, from which the scheme got its name.
In 2020, Senator Risa N. Hontiveros-Baraquel led a Senate investigation of the scam. A whistleblower from the Immigration bureau testified at a hearing that the Chinese nationals involved in the scheme had been blacklisted from the country and entered through a “special arrangement.” — John Victor D. Ordoñez
SC upheld power over tobacco of FDA — senator
THE SUPREME Court (SC) has upheld the local Food and Drug Administration’s (FDA) authority to regulate cigarettes and tobacco products in the country, according to a senator.
“This is a major victory for our people and advocates for tobacco control and public health,” Senator Pia S. Cayetano said in a statement on Sunday, citing the decision that upheld the law’s implementing rules.
Ms. Cayetano sponsored and defended the FDA Act of 2009, which empowers the agency to regulate all products affecting health, including cigarettes and tobacco. But the tobacco industry rejected FDA’s authority and brought it to court.
“The health hazards of tobacco cannot be denied, and are backed by strong medical evidence,” the lawmaker said. “It is common sense that these products be subjected to strict regulation by a competent health authority.”
She described the High Court’s ruling “a win for the Filipino people,” saying it would benefit future generations.
“It may have taken 13 years, but it’s these victories that remind me to keep fighting the good fight,” she added. “It’s what makes my job worthwhile.”
Ms. Cayetano said she expects the incoming government to continue to strengthen the country’s health systems and ensure harmful products fall under the jurisdiction of the FDA.
She recalled going to the High Court with Senator Franklin M. Drilon on April 11, 2013 to file a motion to intervene in the legal battle between FDA and Health department and the Philippine Tobacco Institute.
The organization had rejected FDA’s authority then and sought court intervention.
“There is no overlap of functions, as it is clear that petitioners have technical authority over matters of public health,” Ms. Cayetano said, citing the High Court ruling promulgated on June 7.
The rules that implement the FDA Act state that regulations to be promulgated by the body will not apply to those that are covered by specialized agencies and laws, it added. — Alyssa Nicole O. Tan
Bulusan erupts anew, wider area affected by ashfall
BULUSAN Volcano erupted again on Sunday, a week after a similar steam-driven explosion, and spewed ash across a wider area, local authorities said.
The latest phreatic eruption started at 3:37 a.m. and lasted for 18 minutes, based on the Philippine Institute of Volcanology and Seismology’s (Phivolcs) bulletin.
“More areas have been reached by ash fall,” the Sorsogon provincial office said.
Among the areas affected are the towns of Juban, Irosin, Casiguran, and Magallanes, the provincial government said in an advisory as response teams started clearing operations along main roads and assessing the need for evacuation.
Residents of Juban who evacuated last week have since gone back home after their villages were cleared of ash fall.
In the town of Bulusan, the municipal disaster management office said it has evacuated some residents, particularly those who were most vulnerable.
Power, water, and telecommunication services were all “functional,” it said.
Phivolcs said alert level 1 remains in effect for Mt. Bulusan, which means it is in an “abnormal condition” and sudden eruptions are possible.
The agency first raised the alert level from zero on June 5 following a 17-minute eruption that started at 10:37 a.m.
“Local government units and the public are reminded that entry into the 4-kilometer radius Permanent Danger Zone must be strictly prohibited and that vigilance in the 2-kilometer Extended Danger Zone on the southeast sector must be exercised due to the increased possibilities of sudden and hazardous phreatic eruptions,” Phivolcs said.
Mt. Bulusan, located about 565 kilometers southeast of the capital Manila, last erupted in June 2017, which was recorded as a “minor phreatic eruption” by Phivolcs. — MSJ
DBM asserts new migrant workers’ agency can’t use POEA funds yet
THE DEPARTMENT of Budget and Management (DBM) on Sunday told Migrant Workers Secretary Abdullah D. Mama-o that he has no authority to use funds under the Philippine Overseas Employment Administration (POEA).
In a statement from the Labor department, DBM Officer-in-Charge Tina Rose Marie L. Canda pointed out that the Department of Migrant Workers (DMW) has yet to be fully constituted.
“Since it did not meet the clear requirements of the law, there will be no complete transfer of funds unless and until the DMW is fully constituted,” according to a letter written by Ms. Canda.
The requirements are: a budget for the next fiscal year, an effective implementing rules and regulations, and manpower structure.
President Rodrigo R. Duterte signed the law establishing the DMW in December last year and appointed Mr. Mama-o as head in March.
The new department will be absorbing existing government agencies dealing with overseas Filipino workers, including the POEA, to ease procedures relating to migrant workers.
Ms. Canda said POEA Administrator Bernard P. Olalia “shall continue to exercise authority on its operations until the full constitution of the DMW.”
President-elect Ferdinand R. “Bongbong” Marcos, Jr., who will be taking office on June 30, has named migrant workers’ advocate Susan V. Ople as the next DMW chief. — John Victor D. Ordoñez
Cities of Khulna, Davao explore sisterhood pact, business opportunities
DAVAO City in the Philippines and Khulna in Bangladesh are looking at a sisterhood pact as part of initiatives to expand economic and cultural ties between the two countries.
Bangladeshi Ambassador F.M. Borhan Uddin, who was in Davao last week, said a city-to-city agreement would help facilitate potential business partnerships in agriculture and tourism, among other sectors.
Mr. Uddin met with Davao City local government officials, members of the city business chamber, and the Mindanao Development Authority for exploratory talks.
He said Bangladeshi company Square Pharmaceuticals Ltd., for example, is eyeing to set up a manufacturing plant in the Philippines.
“We will request to divert the company here in Davao City if possible. We will try to negotiate with the company to come here to Davao City and establish their plant,” he said in an interview.
On tourism, the envoy said Davao and the Philippines as a whole are not yet in the radar of Bangladeshi travelers.
“Many Bangladeshis are coming to Singapore, Thailand, and Malaysia and they don’t know about Philippines,” he said.
“We already have flights to Singapore so the connectivity is present… So we’ll work with the travel agencies of Bangladesh and Davao and Cebu to make that (tour packages) possible.”
Honorary Consul General of Bangladesh in Mindanao Joji Ilagan-Bian said they can organize online meetings among travel agencies from Bangladesh, Cebu and Davao City to come up with packages.
The Philippines and Bangladesh are celebrating the 50th anniversary of their diplomatic relations this year. — Maya M. Padillo
Lawyers’ group asserts right to protest not contingent on permits
A LAWYERS’S group on Sunday hit Philippine police after its top officials recently claimed that the right to protest in public is contingent on securing a permit.
“The right is enshrined in the Constitution, which supersedes any statute, ordinance, executive order or regulation issued by any public official or agency,” the National Union of People’s Lawyers (NUPL) said in a statement.
“A permit is not essential for the assembly itself,” it said.
NUPL said that even the rally permit under Batas Pambansa Blg. 880, which the city government of Manila recently ordered to be “strictly” enforced by local authorities, is only an administrative requirement that “allows the local government to regulate — not ban — the time and place of public assemblies.”
“By applying for a permit, the local government is given notice that a specific public place will be the site of an upcoming assembly, giving it time to reroute traffic, deploy police officers, and reserve the location for the applicant in case other groups also intend to use the same place,” it said. “As a matter of fact, if the mayor fails to act on the application within 2 working days, the permit is already deemed granted.”
NUPL said that because of the recognized importance of the right to protest, the law sets “an extremely high bar for its curtailment.”
“Only the existence of a ‘clear and present danger’ — meaning, an evil that is both extremely serious and imminent — can justify restrictions to it.”
The group said even if organizers failed to apply for a permit, BP 880 itself states that “no person can be punished or held criminally liable for participating in or attending an otherwise peaceful assembly.”
“This is one aspect of the law frequently violated by the police when, as in recent weeks, they arrest peaceful protesters and even journalists covering the events.”
Authorities last week arrested more than 90 people, including peasants and advocates as well as journalists, in Tarlac City in northern Philippines for allegedly holding an illegal assembly.
Several were released soon after while 83 were charged for illegal assembly, among other offenses. Those facing cases were all released as of Sunday afternoon after posting bail. — Kyle Aristophere T. Atienza
12 Abu Sayyaf members surrender in Sulu
A DOZEN members of the Abu Sayyaf, a kidnap-for-ransom group that has also in recent years allied with the extremist Islamic State, turned themselves in to security forces Friday, the military reported on Sunday.
The 12 men surrendered to the Joint Task Force Sulu through the 1101st Infantry Brigade headquarters in Talipao, Sulu on June 10 and gave up weapons, including M16 rifles, grenade launches and pistols, according to the JTF commander, Maj. Gen. Ignatius N. Patrimonio.
“The influx of (Abu Sayyaf) returnees is an indicative of our successful peace and security campaign in Sulu. Let us therefore continue our concerted efforts to finally end terrorism,” Mr. Patrimonio said in a statement released by the Philippine Army.
The government has a program for former rebel group members that include social assistance and livelihood training.
Since 2017, the Sulu task force has recorded 823 Abu Sayyaf returnees, according to Mr. Patrimonio.
For this year, 65 members of the group have surrendered so far, he added. — MSJ
Salceda vows to refile bill for establishment of disease control agency
REELECTED Albay Rep. Jose Maria Clemente S. Salceda will refile a bill in the incoming 19th Congress for the creation of a center for disease control, citing such an institution’s role in pandemic preparedness.
“I hope President (Ferdinand “Bongbong” R.) Marcos will also make it his priority, as PRRD (President Rodrigo R. Duterte) did,” Mr. Salceda said in a statement on Saturday.
“It’s a waste, it was sponsored on the Senate floor, but there was not enough time in the 18th Congress,” he added. “So, I will refile it, and this time, we will hopefully be able to get it through Congress. Because the infections you want to deal with will not go away.”
He cited the recent resurgence of monkeypox cases in several countries. As of June 9, around 1,300 cases have been identified worldwide.
No monkeypox case has so far been detected in the Philippines.
“These infections, whether mild or serious, will come to the Philippines… so you have to have the capacity to deal with it. You have to have the institutions, the surge capacity, the culture, and the resources to adapt,” he said.
Under the bill, the proposed Center for Disease Control and Prevention will serve as an umbrella agency for existing infectious disease units. It will have expanded health emergency powers with staff trained to respond to “sudden-onset” diseases such as the coronavirus 2019.
The 18th Congress adjourned sessions with the bill pending on second reading under special order at the Senate, while it was passed on third reading at the House of Representatives. — Alyssa Nicole O. Tan
Philippines forges investment promotion agreement with UAE
THE PHILIPPINES and United Arab Emirates (UAE) signed an investment promotion and protection agreement (IPPA) on June 9, with the Trade department expressing an interest in tapping Dubai investment in agriculture and energy, among others.
In a statement on Sunday, the Department of Trade and Industry (DTI) said Trade Secretary Ramon M. Lopez and UAE Minister of State for Financial Affairs Mohamed Bin Hadi Al Hussaini signed the IPPA, which it said is expected to create 2,500 jobs and over P7.1 billion worth of investment.
“The parties intend to promptly facilitate the internal procedures needed for the entry into force of the IPPA. Sectors of interest from the UAE include import and distribution, the manufacture of scaffolding and formwork, engineering services, defense, telecommunications, tourism, poultry, aerospace, retail (such as medical equipment/devices), and renewable energy,” the DTI said.
The DTI said it is eyeing investment in agribusiness and agriculture, energy efficiency technology and renewable energy, infrastructure and public–private partnership projects, artificial intelligence, information technology and business process management and shared services, manufacturing, oil and gas, processed and specialty food, and tourism and hospitality.
Philippine products the DTI expects to promote to the UAE are plastic and rubber products such as gloves, vulcanized rubber, and vulcanized rubber thread and cord, and spices such as cloves and pepper.
The IPPA establishes a Joint Committee on Investments (JCI) which find areas of cooperation between the two countries. The JCI is headed by undersecretaries of the DTI and the UAE’s Ministry of Finance.
Mr. Lopez said that the IPPA comes at the start of the process for forging a Comprehensive Economic Partnership Agreement (CEPA), with Dubai.
“The IPPA will boost investment between the countries and the CEPA will also pave the way for the Philippines’ enhanced access to the broader Middle Eastern region and could be UAE’s strategic hub in the Southeast Asian market,” he added.
In February, the DTI said that a CEPA with UAE is expected to contain elements of a free trade agreement.
Philippine interests for inclusion in a CEPA include fresh and processed fruit, seafood, food products, beverages, electronics, appliances, machinery, personal care goods, iron and steel, wood, cement, chemicals, automotive and automotive parts, ships and aircraft, textile and garments, footwear, and leather.
According to the DTI, the UAE was the Philippines’ 23rd largest partner in terms of two-way trade, the 21st largest export market and the 26th largest source of imports in 2020. — Revin Mikhael D. Ochave
Three deals with Israel expected to broaden B2B contracts with PHL
THREE newly signed agreements with Israel are expected to enhance business-to-business (B2B) interaction between Israel and the Philippines, bringing bilateral trade beyond pre-pandemic levels, the Israeli embassy said.
“The challenge is to show to both sides that the Philippines is an interesting market which brings interesting opportunities,” Israel Ambassador to the Philippines Ilan Fluss told reporters on Friday.
“This is done not only with figures, statistics and by sending e-mails, you have to have interaction,” he added. “Our plan now is to work more on the interaction between business to business, the private sector.”
The ambassador noted that Israel is currently searching for new partners since it depends on exports as a small country. “We always look abroad,” he added, noting that its traditional markets include the United States and Europe, with the recent addition of China and the United Arab Emirates.
Israel Embassy Economic Attaché and Head of the Economic Mission Tomer Heyvi said there is great potential for trade and investment in the Philippines. “We do expect it to grow in the coming years.”
Israel is targeting more electronics imports from the Philippines, as well as food, agriculture-based products, and consumer goods such as garments and textiles.
However, more support must be given to the private sector to achieve its potential, Mr. Fluss said. “We are not tapping the potential, this is the main message, and it is up to us to help the private sector to fulfill this potential.”
The three agreements signed last week included an investment promotion and protection agreement (IPPA), a memorandum of understanding (MoU) forming the Joint Economic Commission (JEC), and a MoU seeking to strengthen cooperation with the Israel Innovation Authority.
The IPPA, which needs ratification from Congress, provides the framework for a closer investment relationship between Israel and the Philippines. It also specifies investment protection elements such as national treatment, most favored nation treatment, free transfers, rules-based expropriation and compensation, and investor-state dispute settlement.
The JEC seeks to intensify the bilateral economic cooperation and linkages, enhance the current state of trade and investment, and address trade barriers.
Cooperation with the Israel Innovation Authority will take place in research and development and commercial relations.
Bilateral trade in goods between the Philippines and Israel peaked in 2019 at $338 million. It dropped in 2020 due to the pandemic, but rebounded to $323 million in 2021.
Mr. Heyvi said Israeli exports to Philippines are still “relatively low, consisting of only 0.3% of Israel’s total exports.
“But I’m sure that with the two major agreements, the IPPA and the joint committee, we (have) planted the seeds for better economic and trade relations between the two countries,” he added.
Once further growth has been attained, both countries can begin negotiations on a free trade agreement, Mr. Heyvi said. — Alyssa Nicole O. Tan