How PSEi member stocks performed — December 6, 2022
Here’s a quick glance at how PSEi stocks fared on Tuesday, December 6, 2022.
Stocks climb on positive sentiment, Fed bets
STOCKS climbed on Tuesday, snapping a three-day losing streak, as investors remained bullish on the Philippines’ prospects, even with inflation hitting a 14-year high last month and on expectations of smaller US Federal Reserve rate hikes.
The Philippine Stock Exchange index (PSEi) added 232.25 points or 3.6% to close at 6,674.38 on Tuesday, while the broader all shares index increased by 73.79 points or 2.16% to 3,477.72.
“A strong bounce by the PSE index today, signaling a shift in market sentiment from bearish to bullish, even if the inflation rate increased to 8%,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message on Tuesday.
Headline inflation stood at 8% in November, its quickest pace in 14 years. This was faster than the 7.7% in October and the 3.7% in the same month last year, and was also the quickest headline print since the 9.1% in November 2008.
For the first 11 months, inflation averaged 5.6% versus the 4% seen in the same period a year ago. This is still lower than the central bank’s full-year forecast of 5.8% but well above its 2-4% target for 2022.
“[There] were no concerns brought about by inflation hitting 8%, which was above the latest Bloomberg median estimate,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Investors shrugged off concerns that the Fed will need to hike interest rates for longer than previously anticipated with the intended goal of bringing down inflation following the better-than-expected November Institute for Supply Management services data… Although, the market still broadly expects the Fed to push the rates up again by 50 basis points at its December meeting,” Mr. Limlingan added.
US manufacturing activity increased to 61.1 in November following the 60.8 it posted in October, Reuters reported. A reading above 50 means expansion in the country’s manufacturing activity which accounts for 12% of the US economy.
Back home, all sectoral indices closed higher on Tuesday. Holding firms added 268.79 points or 4.34% to close at 6,450.05; property increased by 118.56 points or 4.18% to 2,954.65; financials jumped by 51.13 points or 3.14% to 1,675.99; mining and oil went up by 147 points or 1.43% to 10,422.91; services climbed by 21.55 points or 1.3% to 1,677.76; and industrials rose by 111.03 points or 1.18% to 9,471.07.
Advancers outnumbered decliners, 100 to 81, while 46 names closed unchanged.
Value turnover climbed to P6.04 billion on Tuesday with 582.78 million shares changing hands from P5.64 billion with 514.23 million issues traded on Monday.
Foreigners turned buyers on Tuesday with P270.44 million in net purchases from P687.43 million in net selling seen the previous trading day.
Mercantile Securities’ Mr. See placed the PSEi’s support between 6,400 and 6,550 and resistance at 6,870-7,000. — J.I.D. Tabile with Reuters
Peso rebounds on rate hike expectations
THE PESO strengthened versus the dollar on Tuesday despite profit taking after the release of November inflation data that cemented expectations of another rate hike from the Bangko Sentral ng Pilipinas (BSP) this month.
The local unit closed at P55.975 per dollar on Tuesday, gaining 4.5 centavos from its P56.02 finish on Monday, data from the Bankers Association of the Philippines showed.
The peso opened Tuesday’s session slightly weaker at P56.06 against the dollar. Its worst showing was at P56.11, while its intraday best was at P55.95 versus the greenback.
Dollars exchanged declined to $776.56 million on Tuesday from $1.15 billion the previous trading day.
The peso appreciated on Tuesday as inflation picked up in November, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Quicker inflation last month could prompt the Philippine central bank to continue hiking borrowing costs on Dec. 15 as it also seeks to keep an interest rate differential with the US Federal Reserve, Mr. Ricafort said.
The BSP has raised its key rate by 300 basis points (bps) since May to 5% to curb soaring inflation and support the currency, while the US central bank has hiked by 375 bps since March, bringing the fed funds rate to a range of 3.75% to 4%.
Preliminary data from the Philippine Statistics Authority showed inflation picked up to 8% in November from 7.7% in October and 3.7% in November 2021.
It was the fastest pace since the 9.1% in November 2008. Last month’s print also breached the BSP’s 2-4% annual target for the eighth consecutive month.
For the 11-month period, inflation averaged 5.6%, still lower than the BSP’s 5.8% full-year forecast.
“I think the higher-than-expected November inflation provided an opportunity for profit taking, although profit taking has been ripe since the consecutive sessions of declines,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message.
“Today, it moved sideways, but according to our traders, we can’t rule out profit taking that may have ensued,” he said, adding that dollar inflows could still increase as the holiday season draws near.
The peso also strengthened after the local stock market gained sharply recently, Mr. Ricafort added.
The benchmark Philippine Stock Exchange index rose by 232.25 points or 3.6% to close at 6,674.38 on Tuesday, while the broader all shares index climbed by 73.79 points or 2.16% to 3,477.72.
For Wednesday, Mr. Ricafort gave a forecast range of P55.85 to P56.05, while Mr. Asuncion expects the local unit to move within P55.60 to P56 against the dollar. — K.B. Ta-asan
Omicron subvariant BQ.1 cases rose to 17 — DoH
THE PHILIPPINES has detected one more infection involving the highly contagious Omicron subvariant BQ.1, bringing the total to 17, the Health department said on Tuesday.
The patient came from the Western Visayas region, it said in a bulletin.
The European Center for Disease Control considers BQ.1, a sublineage of Omicron BA.5, a variant of interest.
The subvariant, which is said to be more contagious and can evade antibodies, has been driving up coronavirus infections in the US, UK and parts of Europe.
The Philippines also detected 60 more infections involving the Omicron subvariant BA.2.3.20, 42 XBB, two BA.5 and six more Omicron sublineages. The Department of Health (DoH) also detected two new cases of XBC, a recombinant of Delta and Omicron.
The test results came from the sequencing conducted by University of the Philippines-Philippine Genome Center on Nov. 28 to Dec. 3, the agency said.
Health authorities detected the first 14 cases of BQ.1 on Nov. 25.
The Philippines posted 7,731 coronavirus disease 2019 (COVID-19) infections in the past week with a daily average of 1,104, DoH said on Monday.
The national daily average on Nov. 28 to Dec. 4 was 4% lower than a week earlier, it said. Of the new cases, two were severe and critical, it added.
DoH said 134 new deaths were verified in the past week, 19 of which occurred on Nov. 21 to Dec. 4.
The agency said 534 or 22.1% of 2,413 intensive care unit (ICU) beds had been used as of Dec. 4, while 5,177 or 25.3% of 20,452 non-ICU beds were occupied. There were 595 severe and critical admissions, it added.
Meanwhile, DoH said it plans to vaccinate at least 60% of kids aged five to 11 years to prevent surges in coronavirus infections.
At a livestreamed press briefing, Health Officer-in-Charge Maria Rosario S. Vergeire said 49% of the age group had been vaccinated against the virus.
“Parents of children in this age group are still hesitant because of misinformation and disinformation about vaccines,” she said. “We will continue informing parents that vaccines are effective in protecting children against the virus, especially as they go back to school next year.”
The DoH will end its three-day vaccination drive for children on Dec. 7.
Philippine health authorities expect a spike in coronavirus infections during the holidays in the absence of restrictions.
Daily infections could hit 1,114 to 2,294 by the end of December, while active cases could reach 18,000, DoH Epidemiology Bureau director Alethea R. de Guzman said last week, citing increased mobility, social gatherings and eased restrictions.
She said existing vaccines could help minimize hospitalizations even after new variants enter the country.
Edsel Maurice T. Salvaña, a member of DoH’s technical advisory group, has said coronavirus deaths would remain low as long as vaccination and boosting rates were pushed.
He added that using face masks could still prevent outbreaks, decrease cases and protect people from other respiratory illnesses.
The Philippines has fully vaccinated 73.63 million people, according to the DoH bulletin. It added that 20.94 million people have received booster shots.
Cases of COVID-19 were first reported in Wuhan, China in December 2019. The Philippines posted its first COVID-19 case on Jan. 30, more than a week after a Chinese who tested positive for the virus arrived in the country.
Youngsters in China have been holding protests against their government’s “Zero-COVID” policy that forced millions of people to stay at home. Critics have described the policy, which was also blamed for the country’s economic woes, as “draconian.”
On Monday, the Associated Press reported that the Chinese government was easing some of its stringent anti-COVID-19 rules, with authorities saying that new variants are weaker.
But the country has yet to say when it will end the zero-COVID policy. — Norman P. Aquino and J.V.D. Ordoñez
Rights group asks government to help families of drug war victims
THE GOVERNMENT of President Ferdinand R. Marcos, Jr. should do more to protect the families of victims of extralegal killings and prosecute officials for the wrongful deaths, according to a human rights group.
In a statement sent on Monday evening, the Initiatives for Dialogue and Empowerment through Alternative Legal Services said the government should also look into alleged falsified death certificates of drug war victims and suspected pushers.
“We push for accountability and demand what is right for the people,” Ansheline A. Bacudio, program manager at the group, said in the statement.
The group welcomed a Court of Appeals decision on Nov. 15 granting a family’s petition to correct a death certificate of a drug war victim who was killed by a stray bullet during a police drug raid in 2016.
The nine-year-old victim was initially declared dead due to pneumonia. “It would indeed be fair and equitable that the genuine cause of his death be reflected in his death certificate,” the appellate court said in a 12-page ruling.
In April, the Department of Justice (DoJ) said it would probe allegations that police had falsified the death certificates of suspected drug pushers to cover up the fact that they were killed in drug raids.
Forensic expert Raquel B. del Rosario-Fortun, who has been examining the exhumed remains of drug war victims since July, has said some death certificates showed victims dying of natural causes even if they had gunshot wounds consistent with homicide.
She told a news briefing on April 12 that at least 32 bodies of drug war victims she examined had gunshot wounds as the cause of death.
Justice Secretary Jesus Crispin C. Remulla has vowed to prosecute high-ranking policemen responsible for wrongful deaths in ex-President R. Duterte’s anti-illegal drug campaign.
“That will happen,” he told BusinessWorld in a Viber message on Nov. 27 in response to calls for the government to hold top-level cops accountable for drug war killings.
The Philippines accepted 200 recommendations from the United Nations (UN) Human Rights Council — including investigating extralegal killings and protecting journalists — during its periodic review of the country’s human rights situation last month.
More than 30 member-states of the UN Human Rights Council have urged the Philippines to do something about extralegal killings and human rights abuses in connection with the government’s drug war.
The UN Rights Committee has said the government should cooperate with the International Criminal Court’s probe of the drug war.
The UN Office of the High Commissioner for Human Rights has said the country’s probe of human rights abuses in the drug war lacked transparency.
At least 6,117 suspected drug dealers had been killed in police operations, according to data released by the Philippine government in June last year. Human rights groups estimate that as many as 30,000 suspects died.
“We call upon the Philippine government and its agents for an effective and independent investigation of all alleged extrajudicial killings,” Ms. Bacudio said. — John Victor D. Ordoñez
Congressman: P3-B wifi budget illegally moved to MMDA
AT LEAST P3 billion in public funds was illegally transferred to the Metro Manila Development Authority (MMDA) to finance its free wifi project without congressional consent, according to a lawmaker.
MMDA later bid out a P1.1-billion project for the capital region’s fiber optic backbone development, Northern Samar Rep. Paul R. Daza told a House of Representatives hearing on Tuesday.
Mr. Daza said he got copies of the contract and checks worth P500 million and P600 million dated April 28 signed by former Information and Communications Technology acting Secretary Emmanuel Rey R. Caintic.
At the hearing of the House committee on good government investigating the budget transfer, Mr. Caintic said his agency’s legal department had come out with a legal opinion against the budget transfer.
“In spite of the adverse opinion of your legal department, you proceeded with the downloading of the funds to the MMDA and other local government units?” Mr. Daza asked.
Mr. Caintic said he approved the transfer because he did not see anything wrong with it. “There was no anomaly because we followed the Commission on Audit rules in the proper transfer.”
Mr. Daza said the Department of Information and Communications Technology also did not get a written consent from the Budget department for the fund transfer.
The lawmaker said Congress should include specific provisions against inter-agency budget transfers in the 2023 budget bill.
The House panel ordered MMDA and DICT officials to submit all bids, contracts and other documents in time for the next hearing on Dec. 13. — Beatriz Marie D. Cruz
Opposition senator says proposed sovereign wealth fund counterproductive after others express reservations
AN OPPOSITION senator on Tuesday said the proposal to establish a sovereign wealth fund (SWF) is counterproductive, noting that it goes against the nation’s economic agenda.
“An SWF is meant to come from the excess funds we just don’t have, as seen by our trillions-worth of debt. We don’t need an SWF and we clearly can’t afford it anyway,” Senator Ana Theresia “Risa” N. Hontiveros-Baraquel said in a statement in a mix of English and Filipino.
“Our urgent priorities (to address the current crisis) must come first,” she added. “Just like the misplaced confidential funds, an SWF is an unnecessary and unjustified move.”
Several other senators, mostly allied with the administration of President Ferdinand R. Marcos, Jr., also expressed reservations on Monday on the bill filed in the House of Representatives seeking to create a sovereign wealth fund.
The measure was filed by several congressmen led by House Speaker Ferdinand Martin G. Romualdez, a cousin of Mr. Marcos.
The proposed Maharlika Wealth Fund will make investments by utilizing funds from the Government Service Insurance System (GSIS), the Social Security System (SSS), Land Bank of the Philippines and Development Bank of the Philippines.
Sought for comment on whether the government can arbitrarily access GSIS and SSS funds to invest elsewhere or should there be consent of the members, Senate Majority Leader Emmanuel Joel J. Villanueva said while a sovereign wealth fund “is good in principle, there should be more discussions on its sources of funds and its management.”
He said there is a need to protect “the retirement funds and other benefits of ordinary workers, who are already struggling from high prices of basic goods and are bracing for the impending global recession.”
Senator Juan Edgardo M. Angara also said, “Accessing contributions of pension funds would be a ticklish issue and may encounter some obstacles; best to access investible funds and use dormant government assets (or those with high potential upsides like real properties abroad) as part of the equity of the fund.”
GSIS
The sovereign wealth fund will get an initial investment of P250 billion from the state pension funds and banks, with GSIS committing to provide half.
GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso on Tuesday said he expects the Maharlika Wealth fund to not only “allow us to get returns but also to have a contribution to nation-building.”
“We will be there to make sure that this will be invested properly,” he said in a statement in a mix of English and Filipino.
“There are various layers of transparency to make sure that the funds are protected and invested properly, and we are going to make sure the public is going to be made aware,” Mr. Veloso said.
House Bill 6398, filed and passed on first reading last week, requires for the fund to be used to invest on a strategic and commercial basis to promote fiscal stability for economic development and strengthen top-performing government financial institutions through additional investment platforms that will help attain the national government’s priority plans.
There is no counterpart bill filed in the Senate.
Senator Joseph Victor or “JV” Ejercito, who filed a similar bill in a previous Congress, said his past proposal did not include GSIS and SSS funds for the sovereign wealth fund investment.
Mr. Ejercito said he is “apprehensive to touch pension funds” because of the problems experienced in the past with military funds.
Ms. Hontiveros vowed to bring up her concerns “on the Senate floor at the proper time.”
“For now,” she added, “this so-called Maharlika fund is setting off many alarm bells. Long-term consequences will be felt if we establish a sovereign wealth fund prematurely.” — Alyssa Nicole O. Tan
Bill lowering senior citizenship age to 56 from 60 filed in the Senate
A SENATOR has filed a bill that will bring down the age of senior citizenship to 56 from 60, allowing earlier access to benefits, including the option to retire and claim pension.
“It is only appropriate that we lower the age, so that our elderly compatriots can become senior citizens. In today’s times, especially with the pandemic, many are not lucky enough to reach the age of sixty,” Senator Ramon B. Revilla, Jr., said in Filipino in a statement on Tuesday.
“So, while there is still time, let’s value them by extending the benefit. Let’s remember that their hands shaped whatever good we enjoy today,” he added.
Senate Bill 1573 seeks to amend Republic Act 7432, which defines a senior citizen as any resident citizen of the Philippines at least 60 years of age.
Under the current law, seniors can cease payment of contributions and start claiming the monthly cash benefit from pension funds such as the Social Security System for the private sector and Government Service Insurance System for civil servants.
The bill, if passed, will also allow Filipinos at least 56 years of age to receive retirement benefits from both the government and the private sector at par with the current scale enjoyed by those in service, as prescribed under Republic Act 9994 or the Expanded Senior Citizens Act of 2010.
Senior citizens are also entitled to a 20% discount and value-added tax exemption on medicines, medical supplies and equipment, transportation fares, hotels, restaurants, recreation centers, and other places of leisure.
Other benefits for seniors include a minimum of 5% discount on monthly water and electricity bills; exemption from training fees for socioeconomic programs; free medical, dental, diagnostic, and laboratory services in all government facilities; and death benefit assistance, among others.
Death benefit assistance of at least P2,000 will also be given to the nearest surviving relative of a deceased senior citizen. The amount will be adjusted based on inflation, in accordance with the guidelines to be issued by the Department of Social Welfare and Development.
“From the beginning, my desire as an elected public servant is to help and ease the lives of every Filipino, especially those who belong to the sector that is often left aside. Our grandparents are one of them,” Mr. Revilla said.
“They relentlessly contribute to economic growth. Their contribution to the advancement of our society and country will never be underestimated,” he added.
The senator has also filed Senate Bill 1558, which will require establishments, such as restaurants, libraries, recreational centers, and venue halls to provide priority seating for seniors. — Alyssa Nicole O. Tan
Marcos asks businesses to invest in skills training, R&D to help boost job creation
PRESIDENT Ferdinand R. Marcos, Jr. on Tuesday asked business leaders to invest in education and skills training, and research and development (R&D) to help the government in accelerating job creation.
Mr. Marcos, speaking at the Arangkada forum organized by the Joint Foreign Chambers in the Philippines, said his administration aims to boost employment in the manufacturing sector and strengthen local production to reduce importation.
“As we reclaim our economic position in the world, I consider the participation of the private sector both local and foreign to be absolutely key to our success,” he said. “That is why we must continue this partnership,” he said.
“I think it’s also time to look inwards, into domestic markets here,” he added.
Mr. Marcos said developing the manufacturing sector would greatly contribute to expanding the country’s output as measured by gross domestic product growth.
Last week, the International Labor Organization said the Philippines has the potential to create more jobs in the manufacturing sector during the recovery from the coronavirus pandemic.
The manufacturing sector recorded the highest monthly increase in jobs in September, adding 780,000 to 4.45 million workers.
The Philippine jobless rate dropped to 5% in September, the lowest since the start of the pandemic. However, job quality worsened that month as underemployed Filipinos, or those looking for more work, increased to a six-month high of 15.4%.
Mr. Marcos also underscored that ensuring food security is the most pressing concern of his administration, along with reducing transport and logistics costs, and lessening energy costs.
“In these endeavors, we will need the help of foreign governments, of private partners who will bring in much-needed investments in modern and efficient farming and fisheries; new transport and logistics infrastructure; as well as new projects in conventional and renewable energy generation,” he said.
The Philippine leader also assured the business chambers that their concerns on ease of doing business is being addressed.
“We have improved but we have ways to go for that,” he said. “We talked about digitalization and how important that is going to be to improve the ease of doing business.” — John Victor D. Ordoñez
Senator seeks mandatory insurance coverage for construction workers
A SENATOR has filed a bill requiring the provision of insurance coverage to all construction workers, with adequate indemnification for any accident that causes disability or death.
“I believe that providing our construction workers with insurance coverage will compel their employers to adopt better safety mechanisms that will ensure the safety and security of their workers,” Senator Sherwin T. Gatchalian said in a statement on Tuesday.
“Further, this will ensure quick and efficient delivery of indemnity to construction workers, which is the main intent of this measure,” he added.
Senate Bill 821 or the Construction Workers Insurance Act mandates employers to provide a group personal accident insurance coverage to guarantee quick and efficient protection to injured workers.
Under the bill, the insurance should commence from the construction workers’ first day of service until the completion of the project or termination of the employment contract.
Insurance premiums will be paid solely by the employer.
Minimum insurance coverage should be P75,000 for natural death, P100,000 for accidental death, and P150,000 for death in the line of work.
For accidents that lead to disabilities, compensation must be at least P50,000 for various scenarios such as loss of both hands, loss of both feet, or loss of one hand and sight of one eye, among others.
The measure also mandates that construction workers be entitled to fair medical benefits should they fall ill in the course of employment.
“It cannot be denied that in many cases, the work of construction workers is dangerous, so we need to take care of their safety and health,” Mr. Gatchalian said. — Alyssa Nicole O. Tan
DICT secretary appeals for cybersecurity budget in confirmation hearing
THE COMMISSION on Appointments on Tuesday approved the nomination of Ivan John E. Uy as Department of Information and Communications Technology (DICT) secretary.
During the hearing, Mr. Uy said his agenda was to enhance the country’s cybersecurity preparedness and appealed for budgetary support from Congress.
“It is a very relevant issue today as we see worldwide, cybersecurity and cyberwarfare actually is the name of the game, and we see it even as we speak during the war in Ukraine and Russia,” he said.
“Sadly, our cybersecurity budget was cut in half for this year and we do not have any funds at all to acquire cybersecurity equipment in order to protect our digital infrastructure,” he told the independent body composed of members of the Senate and House of Representatives.
“We earnestly appeal that we have the capability, we have the people, we have the desire to do it, but Congress has to give us the ammunition, the arms so we can fight for our country,” he added.
Meanwhile, the appointment of Alfredo E. Pascual as Department of Trade and Industry secretary was suspended due to the lack of time. — Alyssa Nicole O. Tan
Teleperformance opens GenSan City office, Cloud Campus microsite
OUTSOURCING firm Teleperformance Philippines (TP) has launched an office in General Santos City, its 24th in the country, with a Cloud Campus microsite which supports work-from-home employees.
TP, in a statement on Tuesday, said the new site will open more jobs for residents in the city and in the neighboring province of South Cotabato.
“Teleperformance targets to employ more than 1,000 team members in General Santos and other neighboring provinces through this microsite,” the company said.
“TP also hopes to contribute to the capability building and economic growth of the province. Like other sites, the TP Cloud Campus General Santos Microsite will have a fully functional recruitment center to process job applicants,” it added.
TP Chief Executive Officer Francisco P. Lara acknowledged the support of the local government, and local business and industry organizations in setting up the GenSan business site, the company’s third in the southern Philippine island of Mindanao.
The first two are located in the cities of Cagayan de Oro and Davao.
“We’re all presenting a commitment that if you know someone that needs a job and they want a great place to work, we will find an opportunity for them to have an excellent job within Teleperformance,” he said.
TP said the expansion in GenSan is also part of the company’s support to the Digital Cities 2025 program of the Department of Information and Communications Technology (DICT).
“The ecosystem (in General Santos City) is very, very, ripe for new beginnings. Here, I have seen so much adaption of digital solutions. It’s just a matter of time — and the right time is now with the coming of Teleperformance,” DICT Undersecretary Jocelle Batapa-Sigue is quoted in the company statement.
The Digital Cities program aims to create over 100,000 local jobs in identified cities and provinces by 2025.
GenSan Mayor Lorelie Geronimo-Pacquiao said TP’s physical site is a major boost to the city’s goal of developing its local information technology-business process outsourcing industry.
GenSan and South Cotabato are within the SOCCSKSARGEN region, a major producer of agricultural export commodities such as tuna, coconut, and fruits. — MSJ