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AC Energy Vietnam wind farm starts commercial operations

AYALA-CONTROLLED AC Energy Corp. said its Vietnam wind farm venture in partnership with Singapore’s The Blue Circle has opened for commercial operations.

The project is the 40-megawatt (MW) Phase 2 Mui Ne wind farm in Binh Thuan, Vietnam.

The project has eight turbines with a capacity of 5 MW each, AC Energy said in a disclosure to the Philippine Stock Exchange Monday.

AC Energy added that the turbines, which have rotor diameters of 158 meters, are the largest used in any Asian onshore wind project.

“This two-piece blade technology is a game-changer for onshore sites as it will allow larger capacity machines, lowering our cost of energy and enhancing competitiveness of wind energy,” The Blue Circle Chief Operating Officer Hervé Grillot said. 

The Mui Ne wind farm has the potential to be expanded to 170 MW and is expected to reduce carbon dioxide emissions in Vietnam by about 130,000 metric tons per year.

The wind farm qualifies for a feed-in tariff of $0.085 per kilowatt hour.

“We are thankful to our long-standing partners at The Blue Circle for seeing this project through amidst the pandemic, and we are encouraged that ACEN’s other partnerships across Vietnam will likewise bring to fruition more renewable energy projects in the country,” AC Energy Head of International Group Patrice R. Clausse said.

ACEN is the company’s stock exchange ticker.

The project was completed in eight months, with around 450 construction staff involved and an estimated cost of about $70 million.

AC Energy currently has a total of 2,900 MW in attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia, and renewables make up an 80% share of its capacity. 

The Blue Circle is the wind farm’s operator. — Bianca Angelica D. Añago

Requests for Confirmation and the consequences of noncompliance

Christmas is fast approaching and the whole world is slowly emerging from the ravages of the pandemic. While most people are getting busy preparing their gifts and menus for Noche Buena, taxpayers are reminded of year-end tax compliance and other reporting requirements. To name a few: taxpayers need to comply with filing and submission of annual information returns and their attachments, books of account, and withholding tax certificates, as well as the filing of Requests for Confirmation (RFC) for income payments to nonresidents which were subjected to tax treaty rates or preferential rates.

Among the tax compliance and reporting requirements mentioned, it is important to take a hard look at the consequences in case of noncompliance with the filing of RFC.

During the first half of this year, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) No. 14-2021 and Revenue Memorandum Circular (RMC) No. 77-2021. RMO No. 14-2021 streamlined the procedures and documents for the availment of treaty benefits while RMC No. 77-2021 clarified certain provisions of RMO No. 14-2021.

These issuances were necessary to settle all issues surrounding the availment of treaty benefits and to deliver efficient service to taxpayers in compliance with the Ease of Doing Business Act. Some of the subject matter discussed under these issuances include the filing of RFC for all income payments to nonresidents, in lieu of the Certificate of Residence for Tax Treaty (CORTT) for dividends, interest and royalties, and imposition of penalties for the late filing of RFC.

According to these issuances, a withholding agent or an income payor must file an RFC when the treaty rates have been applied on its income payments to a nonresident foreign corporation (NRFC) or a nonresident alien not engaged in trade or business (NRAETB). It must also be noted that the deadlines for filing differ based on the type of income payments made. For income payments related to capital gains, the RFC with complete documentary requirements must be filed by the withholding agent at any time after the transaction transpired, but not later than the last day of the fourth month following the close of the taxable year when the income is paid or when the transaction is consummated. On the other hand, for all other types of income, the request must be filed after the close of the taxable year but not later than the last day of the fourth month following the close of such taxable year when income is paid or becomes payable, or when the expense/asset has accrued or is recorded in the books, whichever comes first. 

It must be emphasized that in cases where income payments were subjected to treaty rates in 2020 or prior years but no tax treaty relief application (TTRA) or CORTT has been filed, the withholding agent has until the last working day of 2021 or until Dec. 31 to file an RFC with complete documentary requirements. Regardless, failure to file the RFC within the prescribed deadlines means being subject to the provisions of Section 250 and 255 of the Tax Code, as amended. In addition, a penalty of P1,000 for each CORTT not filed for 2020 and prior years’ transactions will be imposed.

For instances when a taxpayer fails to file an RFC, the taxpayer will be liable for administrative penalties amounting to P1,000 for each failure. However, the aggregate penalty to be imposed may not exceed P25,000 for all failures to file within a calendar year. Aside from the administrative penalties, taxpayers may likewise be charged with the crime of perjury under Article 183 of the Revised Penal Code for failure to supply correct and accurate information in the application form and other documents submitted in support of such application. As specifically stated in these new issuances, there is no automatic denial of the application for failure to file within the prescribed period. The application, however, may still be denied in case of failure to establish the entitlement of the nonresident to treaty benefits or submission of incomplete requirements. Accordingly, it is important that taxpayers obtain documents to prove that the nonresident income recipient is a tax resident of the treaty country and/or the same has no permanent establishment in the Philippines.

The common issue being encountered by taxpayers during audit is that some BIR examiners deny outright the use of the preferential rates and subject the income payments to regular rates for noncompliance with the administrative requirement (i.e., non-submission or late filing of TTRA/CORTT). However, in the case of Deutsche Bank AG Manila Branch vs. Commissioner of Internal Revenue, the Supreme Court ruled that outright denial of a tax treaty relief for failure to strictly comply with the prescribed period is not in harmony with the objectives of the contracting state to ensure that the benefits granted under tax treaties are enjoyed by duly entitled persons or corporations. It can be gleaned from the decision of the court that the TTRA should merely operate to confirm the entitlement of the taxpayer to the relief. Furthermore, a tax treaty between the Philippines and the home country of a foreign taxpayer takes priority over the default rule.

The BIR has recognized the Court’s decision that there should be no outright denial of the preferential rates for failure by the taxpayers to strictly comply within the prescribed period. In RMO 14-2021 and RMC 77-2021, it was clarified that the requirement of filing of RFC is to confirm the entitlement of the taxpayers and not to unduly divest them of the opportunity to avail of the intended treaty benefits. Hence, in case taxpayers fail to file TTRA/CORTT in prior years or fail to file an RFC within the prescribed period, taxpayers should only be denied the use of preferential rate if the BIR has determined that the withholding tax rate applied is lower than the rate that should have been applied, or that the nonresident is not entitled to treaty benefits, and not because of noncompliance with the administrative requirement.

As much as we want to focus mainly on gift wrapping or food planning and preparation, as taxpayers, we are still bound to comply and follow the regulations set by the BIR. As a bonus, the BIR has exerted efforts to make the process easier. In return, taxpayers should also do their best to adhere to these requirements. After all, Christmas is best celebrated (virtually) with our family and friends without worrying about the consequences of noncompliance.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Lorenzo Miguel A. Soriano is a senior in charge of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Duterte slams China’s aggression vs PHL vessels

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PRESIDENT Rodrigo R. Duterte denounced last week’s aggression by Chinese Coast Guard vessels against two Philippine-flagged boats during a leaders’ summit on Monday of China and members of the Association of Southeast Asian Nations (ASEAN).

“We abhor the recent event in the Ayungin Shoal and view with grave concern other similar developments,” Mr. Duterte said.

“This does not speak well of the relations between our nations and our partnership.”

Mr. Duterte made the statement during the virtual ASEAN-China special summit, which was held a week after Chinese Coast Guard ships illegally blocked and discharged water cannons on boats that were carrying supplies to a military post on a Philippine-claimed reef in the South China Sea.

The Philippine leader said the South China Sea dispute is a strategic challenge that cannot be solved by force.

He called on stakeholders to exercise self-restraint, avoid the escalation of tensions, and work to resolve the dispute peacefully in accordance with international laws.

The presidential palace said Mr. Duterte affirmed a United Nations-backed arbitral award that invalidated China’s claim to more than 80% of the sea based on a 1940s map and told Beijing to remain committed to the conclusion of an effective and substantive code of conduct in the disputed waterway.

“There is simply no other way out of this colossal problem but the rule of law,” he said, less than a year before his six-year term ends.

The presidential palace, meanwhile, said Mr. Duterte praised China for its efforts to help countries affected by the pandemic.

The Philippines, China, Vietnam, Malaysia, Brunei and Taiwan claim parts of the South China Sea.

The US, which is not a claimant, has accused China of flexing its military muscle and restricting freedom of navigation there. It has pledged to provide security support to its Asian allies, including the Philippines.

Last week, the US called the Chinese attacks “dangerous, provocative, and unjustified,” warning that it would invoke its defense pact with the Philippines in case of an armed attack on Filipino-manned vessels.

Foreign Affairs Secretary Teodoro “Teddy Boy” L. Locsin, Jr., who also participated in the summit, said in October that the Philippines was backing a defense pact that allows Australia to build nuclear-powered submarines using technology that the United States had only previously shared with Britain, saying it could keep the balance of power in the Indo-Pacific region.

BBC News reported last month that a US nuclear submarine had hit a mystery object in the sea.

Tan Kefei, a spokesman for China’s defense ministry, has demanded a clear explanation of the incident, the South China Morning Post reported.

The South China Sea, which is important for the regional ambitions of China, is a source of tension in the Indo-Pacific as the US and other Western countries continue to assert freedom of navigation.

‘GOOD NEIGHBOR’
During Monday’s summit, Chinese President Xi Jinping told leaders of the 10-member ASEAN that Beijing would not “bully” its smaller regional neighbors amid rising tension over the South China Sea.

“China was, is, and will always be a good neighbor, good friend, and good partner of ASEAN,” state media quoted Mr. Xi as saying.

China would never seek hegemony nor take advantage of its size to coerce smaller countries, and would work with ASEAN to eliminate “interference,” Mr. Xi said.

Mr. Duterte led a foreign policy pivot to China away from the US when he took office in 2016. Less than a year before he steps down, Mr. Duterte has changed his tone toward the US.

He has thanked US President Joseph R. Biden for donating coronavirus vaccines to the Philippines. He also restored a visiting forces agreement after suspending it for months. The two nations are set to hold more than 300 joint defense activities next year. — Kyle Aristophere T. Atienza with Reuters

PHL starts COVID booster jabs for elderly, seriously ill

PHILIPPINE STAR/ MICHAEL VARCAS

SENIOR citizens and those with serious illnesses in the Philippines started getting booster shots against coronavirus disease 2019 (COVID-19) on Monday after the country has fully vaccinated nearly half of its target adult population.

Secretary Carlito G. Galvez, Jr., the country’s vaccine czar, told a ceremonial injection of booster shots that the country’s supply of vaccines is enough to give additional doses to those who are considered at high-risk of coronavirus.

The government has allocated six to eight million doses for the third shot of senior citizens and seriously ill people, he said at the televised event held in a government-owned hospital in Quezon City.

About 1.6 million doses were also allocated for the booster shots of health workers, he added. “We have enough doses of vaccine brands.”

Health workers, who have been prioritized in the government’s coronavirus immunization program, started receiving booster shots last week.

The rollout of additional doses for seniors and people with health complications would be conducted in phases, Health Undersecretary Maria Rosario S. Vergeire told a virtual news briefing. It is not yet available for the general population.

Transplant and dialysis patients, patients under immunosuppressive treatments, and people with immunodeficiency conditions such as those with HIV or active cancer will be prioritized, she said.

Philippine food and drug regulators have already cleared the vaccines made by Sinovac Biotech Ltd., AstraZeneca Plc, Pfizer Inc., and Moderna Inc., as booster and third doses.

Booster shots are given to people whose immunity to the coronavirus wane after several months since receiving a single-dose or two-dose vaccine while additional doses or the third doses are given to individuals who cannot have appropriate immunity against the virus, Ms. Vergeire clarified.

The Philippines has already administered 75.6 million doses of coronavirus vaccines as of Nov. 21. Nearly 33.6 million adult Filipinos have been fully vaccinated.

The country is aiming to vaccinate at least 15 million people across 16 regions outside Metro Manila from Nov. 29 to Dec. 1.  The country is struggling to vaccinate at least 50% of its adult population this year, after it contained a spike in coronavirus cases triggered by a highly contagious virus variant.

Health authorities reported 984 coronavirus cases on Monday, bringing the total to 2.83 million.

The death toll rose to 47,288 after 218 more patients died, while recoveries increased by 2,229 to 2,76 million, the Department of Health (DoH) said in a bulletin.

The agency said there were 19,798 active cases, 56.6% of which were mild, 4.6% were asymptomatic, 13.3% were severe, 20.02% were moderate, and 5.6% were critical.

It said 32% of intensive care units in the Philippines were occupied, while the rate for Metro Manila was 31%.

The Health department said 447 duplicates were removed from the tally, 434 of which were tagged as recoveries and four were reclassified as deaths.

The agency said 169 cases “were found to have tested negative and have been removed from the total case count.” Of these, 94 were tagged as recoveries. Two laboratories failed to submit data on Nov. 20.

The high number of coronavirus-related deaths recorded recently is a result of late reporting, Ms. Vergeire said, noting that there are delays in validations at the local levels.

“These deaths did not only happen in November,” she said in Filipino.

The reporting is quite late since it needs to be validated by local governments units, she added. “These are being validated by local governments then submitted to the national government.”

Meanwhile, Ms. Vergeire said the Philippines remains at low-risk from the coronavirus.

The country’s average daily attack rate was moderate at 1.55 cases for every 100,000 people. “The national health systems capacity is at low risk,” she said.

A number of regions in the country were also at low-risk from the coronavirus, the Health official said.  “All regions are now at minimal to low risk case classification with negative two-week growth rates and average daily attack rates less than seven per 100,000 population.”

Still, Cagayan Valley in the northern part of mainland Luzon showed a positive two-week growth rate in the recent week, she said. — Kyle Aristophere T. Atienza

Lawyers ask ICC to lift suspension of  drug war probe 

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A LAWYER’S group asked the International Criminal Court (ICC) to reconsider its suspension of a probe on alleged human rights violations in the Duterte administration’s drug war, citing the questionable validity of investigations made by the Philippines’ Justice department.  

The Free Legal Assistance Group (FLAG), in a Nov. 21 letter to ICC Prosecutor  Karim Ahmad Khan, said the Department of Justice’s (DoJ) probe was “merely” a review of investigations made by the police internal affairs unit.   

“It is misleading to label the DoJ actions as an ‘investigation’ since it appears that the DoJ merely conducted a review of the documents provided by the Internal Affairs Service of the Philippine National Police,” the group said in the letter.  

The chief ICC prosecutor suspended its investigation after the Philippine government filed a deferral request on Nov. 10, citing that the DoJ made “thorough investigations” into 52 drug-related killings that occurred between 2016 and 2020.  

FLAG said the DoJ probe covered only a fraction of the killings or attempted killings.  

“This figure is but 0.12% to 0.3% of the 12,000 to 30,000 persons killed during the period,” it said.  

Another lawyers’ group that also represent some of the victims’ families, the National Union of People’s Lawyers, released a statement earlier appealing to the Hague-based tribunal to pursue its probe. — Alyssa Nicole O. Tan 

Business leader sees Metro Manila under most relaxed alert level soon 

PHILIPPINE STAR/ MICHAEL VARCAS

PRESIDENTIAL Adviser for Entrepreneurship Jose Maria “Joey” A. Concepcion III is confident that Metro Manila is ready for the implementation of more relaxed restrictions soon.  

Mr. Concepcion said the capital region may soon be placed under Alert Level 1 from the current level 2, echoing a recent estimate by the OCTA Research Group, which has been tracking coronavirus data.   

“I feel that it (Alert Level 1) would be coming towards December. You got the start of Alert Level 1 hopefully in December, which would propel more of the vaccinated to have greater mobility,” Mr. Concepcion said in a television interview on Monday.   

Under Alert Level 1, all businesses are allowed to operate at full-site capacity while following minimum public health standards.   

The Alert Level 2 in Metro Manila will be in effect until Nov. 30, based on the area classifications imposed by an inter-agency task force managing the pandemic response.   

Meanwhile, Mr. Concepcion said the private sector should be given the green light to use its procured vaccines as booster shots for employees and inoculation of minors.    

Mr. Concepcion said he already reached out to Health Secretary Francisco T. Duque III and vaccine czar Carlito G. Galvez, Jr., who both said they are open to the proposal.   

“These vaccines are sitting down. Since we purchased it, the vaccines are meant for employees and the families and we want to implement it as soon as possible,” Mr. Concepcion said.    

“We should allow the general public to also get inoculated and just have fast lanes for the A1 to A3 priority so we get the entire population moving. We should not wait for the sequencing anymore. Let’s just allow everybody and grant fast lanes,” he added.    

The A1 to A3 groups cover healthcare workers, elderly citizens, and persons with comorbidity. — Revin Mikhael D. Ochave  

Lacson says time is ‘right’ to review defense pact with US 

PRESIDENTIAL aspirant and Senator Panfilo M. Lacson, Sr. said he will prioritize matters relating to the South China Sea dispute if elected next year, including a review of the Philippine’s defense pact with the United States.  

“The timing is now right to revisit the PH-US Mutual Defense Treaty, after the US expressed willingness to enhance efforts toward an international law-based maritime order, including freedom of navigation,” Mr. Lacson said in a statement on Monday.  

The senator flew to Philippine-occupied Pag-asa Island last Saturday, during which the Chinese Coast Guard sent warnings as their plane passed over the West Philippine Sea part of the South China Sea.   

“Being radio challenged by a Chinese Coast Guard vessel stationed more than three nautical miles off the coast of Pag-asa, I never considered backing out,” Mr. Lacson said on Twitter Sunday evening.  

“We treat China as a friend, but does China treat us that way? Friendship should be on equal footing, not one-way,” said Mr. Lacson in a mix of English and Filipino during an interview with Radyo 5 Monday.   

He cited that China once challenged a US warship passing in the area. When the US vessel’s captain invoked the right of innocent passage, the Chinese vessel did not block or attack the American-flagged vessel with water cannons like it did against two Philippine vessels last week.  

“There we can see that if there is balance of power in the West Philippine Sea, there would be no war and we will be able to protect our sovereign rights and territorial integrity,” he said.    

Under the Philippine-US treaty, both sides must help each other in case of any external aggression.  

At the same time, Mr. Lacson said tapping American help does not mean he will particularly favor the country, or any other country for that matter.   

The Philippines’ foreign policy should always be anchored on national interest, he added.   

Balance of power, through enhanced alliances with other militarily strong countries including the US, will be emphasized under a Lacson presidency, he said.   

“We have sovereign rights on our exclusive economic zone, we can assure all nations that we will observe and uphold that freedom of navigation, something China does not do.” — Alyssa Nicole O. Tan 

House probe sought to standardize regulations for tricycles 

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A RESOLUTION was filed at the House of Representatives that seeks to probe regulatory policies on tricycle operations to help ensure adequate income for drivers and operators while maintaining health safety protocols.  

Ang Probinsyano Party-list Rep. Ronnie L. Ong, in House Resolution 2322, urges the House Committee on Transportation to conduct an investigation as there are “no clear, uniform, and delineated guidelines” for tricycles following the implementation of the alert level system.  

“Certain areas placed under Alert Level 3 or lower continue to practice guidelines initially imposed during ECQ (enhanced community quarantine) on their tricycle operations,” according to a copy of the resolution.  

The Department of Interior and Local Government implemented a one-passenger policy for tricycles in areas under ECQ in August when the country was dealing with a Delta-driven surge in coronavirus cases. 

Mr. Ong also said that local government units are also “left hanging” as they look for clarificatory guidelines and recommendations from the national inter-agency task force managing the coronavirus response.   

A tricycle, which is a motorbike with a roofed sidecar, can normally carry up to four passengers. It is a common form of public transportation in both cities and rural areas.  

“The lack of clear policy ultimately creates inefficient use of public transport, higher cost of commuters, and inadequate income for tricycle drivers and operators who are unable to put food on the table and cover other essential family needs,” Mr. Ong said. — Russell Louis C. Ku 

BENECO urges NEA to recall resolutions on leadership intervention 

BENECO FB PAGE

BENGUET Electric Cooperative, Inc. (BENECO) urged the National Electrification Administration (NEA) to recall resolutions relating to its leadership to finally resolve the prevailing conflict within the power distributor.  

“The root cause of the issue is when the NEA Board of Administrators appropriated to itself the power to name a general manager through a NEA-BOA Resolution No. 2021-47 and No. 2021-71,” BENECO legal counsel Delmar O. Carino said in a Viber Message to BusinessWorld.  

NEA has yet to reply to BusinessWorld’s request for comment. 

In April 2021, the NEA-BOA passed the resolutions, which endorsed the candidate with the highest score in the final interview for the general manager position of BENECO. 

BENECO’s board passed a resolution of its own in May rejecting the NEA decision and upheld a previous motion appointing Melchor S. Licoben as general manager.  

NEA-BOA, however, said this particular act of BENECO was unreasonable given that it already appointed Ana Maria Paz Rafael as the new general manager, based on the April resolutions.    

Senator Sherwin “Win” T. Gatchalian, chair of the Senate energy committee, recently called on BENECO and NEA to find a compromise to avert possible power disruptions across Baguio City and the province of Benguet.  

“We told NEA to look into this matter and find a compromise rather than a litigation or a forceful implementation. Residents and business owners alike are worried if there will be any sabotage in the operations of BENECO or if disruptions in their electricity supply will take place in the days to come,” he said during the interpellation on the budget of energy agencies at the Senate.  

Mr. Gatchalian said despite his call for compromise, the Senate energy panel will push through with its planned inquiry into issues hounding BENECO’s leadership.   

Meanwhile, a complaint has been filed by BENECO against a NEA official and several others before the city prosecutor’s office after the takeover of BENECO’s main headquarters on Oct. 18.  

NEA also has a pending case against BENECO in relation to audit findings conducted by a NEA team. — Marielle C. Lucenio 

Suspect arrested in stone-throwing incident at MRT-3 train 

DOTR ART TUGADE FB PAGE

A SUSPECT has been arrested in an incident where a train coach window of the Metro Rail Transit Line 3 (MRT-3) was severely damaged and one passenger injured due to a stone thrown on Sunday.  

The MRT-3 management said 29-year-old Lester Rodriguez was arrested on Sunday evening by Pasay City police.    

“Police said Rodriguez was positively identified by two witnesses as the one who threw the rock at the MRT-3 train,” it said in a statement posted on Monday.  

The incident occurred at 6:51 a.m. at the Taft Avenue Station and injured a 51-year-old male passenger.  

Charges will be filed against Mr. Rodriguez, including one for malicious mischief, MRT-3 said. — Russell Louis C. Ku 

Peso weakens on rising virus cases in Europe, hawkish Fed comments

BW FILE PHOTO

THE PESO declined on Monday amid concerns over rising cases of the coronavirus in some economies and hawkish comments from US central bank officials.

The peso retreated versus the greenback on Monday amid concerns over the rise in coronavirus infections in some European economies and hawkish signals from the US Federal Reserve.

The local unit closed at P50.65 per dollar on Monday, shedding 24 centavos from its P50.41 finish on Friday, based on data from the Bankers Association of the Philippines.

The peso opened Monday’s session weaker at P50.53 per dollar, which was already its intraday best. Meanwhile, its worst showing was at P50.80 versus the greenback.

Dollars traded increased to $1.402 billion on Monday from $1.187 billion on Friday.

A trader said in an e-mail that cautious sentiment due to rising coronavirus cases in Europe, specifically in Austria and Germany, caused the peso to depreciate against the dollar.

Austria on Friday reimposed a lockdown amid rising infection cases, Reuters reported. German officials have signaled that they may follow the move, noting the country is already in a “national emergency.”

Recent statements from Fed officials about speeding up the tapering of asset purchases also affected the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Reuters reported Friday that Fed Vice Chair Richard Clarida said it may be appropriate to assess a quicker reduction in asset purchases at the Fed’s policy review in December.

Separately, Fed Governor Christopher Waller on Friday said the Fed should double the pace of its tapering exercise in order to finish by April and move forward into providing space for a rate hike by the second quarter of 2022.

For Tuesday, Mr. Ricafort gave a forecast range of P50.50 to P50.70 per dollar, while the trader expects the local unit to move within P50.55 to P50.80. — L.W.T. Noble with Reuters

PHL shares inch up as investors pick up bargains

PHILIPPINE shares inched up on Monday amid sideways trading on bargain hunting after days of decline.

The Philippine Stock Exchange index (PSEi) went up by 2.10 points or 0.02% to end at 7,282.67, while the all shares index inched up by 0.84 point or 0.02% to 3,878.95.

Diversified Securities Inc. Equity Trader Ancieto K. Pangan said in a text message that the PSEi rose due to bargain hunting after the market was in the red for three days.

Luis A. Limlingan, Regina Capital Development Corp. head of sales, said in a Viber message that local shares “traded quietly, tracking the performance of regional market.”

Value turnover stood at P8.47 billion with 1.06 billion shares changing hands, down from Friday’s P22.07 billion with 2.11 billion issues.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1%, Reuters reported. Futures steadied after selling on Friday and EuroSTOXX 50 futures were up 0.2% and S&P 500 futures up 0.3%.

Sectoral indices were mixed. Financials went up 10.91 points or 0.69% to end at 1,589.16 and mining and oil increased by 45.54 points or 0.48% to 9,353.76.

Meanwhile, industrials lost 31.82 points or 0.29% to close at 10,675.18; services declined by 3.46 points or 0.17% to 1,976.99; property dropped 4.92 points or 0.14% to 3,329.44; and holding firms went down by 6.20 points or 0.08% to end at 7,005.78.

Net foreign selling was at P461.9 million on Monday, down from the P1.82 billion recorded on Friday.

“For the time being, we see this as a temporary pause of the reopening rally, one that needs to be rewound for the recovery trend to be reactivated,” COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said.

“We do hope that strong sales numbers may stem this Thanksgiving retail weekend (for Black Friday and Cyber Monday), to help prop the US market up… and hopefully other markets as well. But we may have to deal with some profit taking turbulence after these special discount days,” Mr. Barredo added.

“Historically, stocks have a good track record of bucking gains in Thanksgiving week. However, the resurgence in COVID-19 (coronavirus disease 2019) cases globally may either dent or cap gains on equities this week,” Regina Capital’s Mr. Limlingan added.

“On the other hand, investors are also expected to direct their attention to President Joseph R. Biden’s pick for the next Federal Reserve Chair in the coming days,” he said.

Austria began its fourth lockdown on Monday, with neighboring Germany warning it may follow suit, shutting Christmas markets, bars, cafés and theaters, Reuters reported.

Trade is likely to be thinned this week by Thanksgiving in the United States, but the virus’ resurgence has traders once again monitoring coronavirus disease 2019 (COVID-19) cases and governments’ responses, it added. — MCL with Reuters

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