How PSEi member stocks performed — March 2, 2021
Here’s a quick glance at how PSEi stocks fared on Tuesday, March 2, 2021.
Local stocks extend climb as vaccinations start
PHILIPPINE SHARES closed in the green as investors remained optimistic after the country’s coronavirus disease 2019 (COVID-19) vaccinations started.
The benchmark Philippine Stock Exchange index (PSEi) went up by 46.57 points or 0.67% to close at 6,919.54 on Tuesday, while the broader all shares index climbed 14.52 points or 0.34% to 4,179.92.
“The local bourse managed to close the day above the 6,900 level which is seen as a resistance. [On Wednesday], this level could be retested.” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message on Tuesday.
“We see this uptrend coming from sustained investor optimism as there [are] some developments in the arrival and the rollout of COVID-19 vaccines this week,” Philippine National Bank (PNB) Senior Equity Research Analyst Wendy B. Estacio said via e-mail.
AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun noted that the PSEi began the day lower yesterday, which means the optimism that drove it higher at Tuesday’s close may be short-lived.
“The trading day started slow with the main index in the red in early trading as several concerns remain. Although we saw the PSEi end at its high for the day, we are beginning to see a slowdown in its momentum,” Mr. Mangun said in an e-mail.
“Despite the beginning of the vaccine rollout and easing of restrictions, investors are wary of rising inflation and the prolonged economic recovery,” he added.
Sectoral indices were split on Tuesday. Holding firms increased 98.47 points or 1.4% to finish at 7,114.6; industrials went up by 93.98 points or 1.07% to 8,836.03; and property added 37.65 points or 1.07% to close at 3,528.26.
Meanwhile, financials decreased by 20.97 points or 1.4% to 1,469.60; mining and oil dropped by 50.94 points or 0.54% to 9,329.93; and services went down by 4.23 points or 0.29% to finish at 1,455.61.
Value turnover rose to P9.89 billion on Tuesday with 126.72 billion shares switching hands, from the P8.34 billion with 8.72 billion issues seen on Monday.
Decliners beat advancers, 121 against 105, while 44 names closed unchanged.
Net foreign selling fell to P336.95 million on Tuesday from the P861.24 million seen the previous day.
“This could be due to profit taking as most companies’ earnings results were released this week,” PNB’s Ms. Estacio said.
AAA Southeast Equities’ Mr. Mangun expects the PSEi to reach 7,000 by the end of the week.
“COVID-19 concerns may weigh on the market [on Wednesday] amid the detection of more cases with the more infective strains. Elevated inflation expectations may also cloud sentiment ahead of the release of the February consumer price index data which is on Friday,” Philstocks Financial’s Mr. Tantiangco added. — Keren Concepcion G. Valmonte
Peso climbs vs dollar on stock market’s gains
THE PESO strengthened against the greenback on Tuesday amid positive market sentiment on the back the gains in the local stock market.
The local unit closed at P48.565 per dollar on Tuesday, appreciating by 2.5 centavos from its Monday finish of P48.59 against the greenback.
The peso started the trading session at P48.58 per dollar. Its weakest showing was at P48.61 while its intraday best was logged at P48.50 versus the greenback.
Dollars traded increased to $856.94 million on Tuesday from $678.45 million on Monday.
The peso appreciated on Tuesday following three successive days of gains in the local stock market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
The Philippine Stock Exchange Index (PSEi) gained 46.57 or 0.67% to close at 6,919.54 on Tuesday.
Meanwhile, a trader attributed the peso’s appreciation to risk-off sentiment following assurance from the US Federal Reserve regarding inflation.
“The peso strengthened after Richmond Fed President Thomas Barkin downplayed lingering market concerns on potential resurgence of inflation in his speech on Monday,” the trader said in an e-mail.
Mr. Barkin played down recent Treasury market volatility, in remarks that reinforce the message that the US central bank is not yet troubled by the increase in yields.
“I’m mostly concerned about the labor market,” Mr. Barkin said Monday in a Bloomberg Television interview with Michael McKee in answer to a question about turbulence in the bond market. “At these levels of interest rates, when I talk to businesses in my district, I do not hear any sense that people are dialing back their investment.”
Several Fed officials last week also characterized the bond market upheaval as reflecting economic optimism, with Fed Chair Jerome Powell saying higher yields were a “statement of confidence” in the outlook.
Fed officials have stressed that they will not preemptively raise rates nor would they be bothered by a one-time spike in inflation later this year as parts of the economy reopen.
For today, Mr. Ricafort expects the local unit to move within the P48.50 to P48.60 levels versus the dollar while the trader gave a forecast range of P48.45 to P48.65. — L.W.T. Noble with Bloomberg
House committee approves downstream natural gas bill
THE House energy committee has approved a bill that sets the regulatory framework for the shipment and distribution of imported natural gas.
At a hearing Tuesday, the committee approved the draft substitute bill replacing House Bill No. 3031 or the proposed Downstream Natural Gas Industry Development Act.
The panel’s chairman, Pampanga 2nd District Representative Juan Miguel M. Arroyo said the approval is subject to further work by a technical working group (TWG), which will redraft parts of the bill.
“We will have a separate TWG for this or we will prepare to put this to the floor for the period of amendments,” Mr. Arroyo said, adding this needs to be discussed not only by the committee but also by other House legislators.
If passed, the bill hopes to develop the downstream portion of the sector to “mature industry status” with the resulting gas market competitive.
According to the bill’s explanatory note, the Philippines still lacks a “clear, comprehensive, and integrated legislative framework” to sustain the natural gas sector’s development.
Members of the committee said they will continue to work on parts of the bill — Section 38, 39, and 40 — before it is sent on for discussion by the plenary.
Section 38 and 39 outlines administrative and criminal and penalties for violators. Section 40 covers permit requirements for operators of natural gas facilities. — Gillian M. Cortez
Metro Manila live hog deliveries top 100,000
SOME 101,333 live hogs have been transported to Metro Manila since Feb. 8, when the Department of Agriculture (DA) capped pork retail prices in a bid to keep inflation under control.
In a report, the DA said 5,565 live hogs and 29,445 kilograms of pork in carcass form arrived in Metro Manila on March 1.
Of these, some 1,594 live hogs were sourced from Batangas, Rizal, and Quezon. Western Visayas supplied 1,435 live hogs; and South Cotabato and General Santos provided 1,055.
Other parts of the country that delivered live hogs were the Bicol Region with 756, Central Luzon 425, and Mimaropa (Mindoro, Marinduque, Romblon, and Palawan) 300.
The DA said dating back to Feb. 8, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) has provided 50,879 live hogs, Western Visayas 13,598, and Mimaropa 10,254.
Over the same period, carcasses transported to Metro Manila have amounted to 657,994 kilograms, mostly from Central Luzon.
The government is subsidizing the transport costs of farmers to encourage shipments to the capital, where the retail price of pork has topped P400 per kilogram, after supply was constricted by an outbreak of African Swine Fever.
As a result, pork and chicken products sold in Metro Manila were subjected to price controls under Executive Order (EO) No. 124, signed by President Rodrigo R. Duterte on Feb. 1.
The EO limited the price of pork shoulder (kasim) to P270 per kilogram, pork belly (liempo) P300 per kilogram, and whole chicken P160 per kilogram.
The price controls are effective until April 8.
The DA reported pork kasim prices of between P270 and P325 per kilogram in public markets. Liempo fetched P300 to P355 per kilogram, and whole chicken P150 to P190 per kilogram. — Revin Mikhael D. Ochave
Japanese suppliers invited to bid for train set contracts of Malolos-Clark, North-South Rail
THE GOVERNMENT is seeking bids from Japanese suppliers for the contract to supply train sets for the Malolos-Clark Railway Project and the North-South Railway Project-South Commuter line.
“The Department of Transportation (DoTr)… through its procuring agent, the Procurement Service (PS), now invites sealed bids in a single stage (without prequalification) two-envelope (technical and financial) from eligible bidders for the procurement” of the train sets, the department announced on its website Monday.
It said the contract involves the design, manufacture, supply, installation, testing, commission, integration, and technical support for “seven-unit eight-car train sets.”
The contract will be funded from proceeds of a loan provided by the Japan International Cooperation Agency (JICA), which was signed on Jan. 21, 2019.
According to a copy of the loan agreement posted on the Finance department’s website, JICA had agreed to lend the Philippines up to 167.199 billion yen for the North-South Commuter Railway Extension Project.
“It is intended that the proceeds of this loan will be applied to eligible expenditure under this contract for the procurement of Rolling Stock – Limited Express Trainsets of the project,” the Transportation department said.
It said bidding procedures are in accordance with the Japanese official development assistance loan guidelines for procurement exercises.
“Bidders may obtain further information from and inspect the bidding documents at the office of PS-DBM (Procurement Service-Department of Budget and Management), from Mondays to Fridays during office hours from 8:00 a.m. to 5:00 p.m.,” the DoTr said.
A complete set of bid documents will cost a non-refundable P45,000, to be purchasable upon the submission of application documents.
The pre-bid conference is scheduled for March 12.
Bids must be submitted on or before 10 a.m. on May 8, accompanied by a bid security of 440.980 million yen.
The DoTr said the criteria include sound financial position on the part of bidders over the past five years. Other qualifications are average annual turnover over the past five years of over $100 million, and liquid assets of $24 million.
“Bidder must have experience as prime contractor (single entity or joint venture member), subcontractor or management contractor for at least 10 years, from Jan. 1, 2009,” it added.
According to the JICA-Philippine government loan agreement, the project aims to strengthen the transportation network and alleviate serious congestion in the greater capital region by extending the North-South Commuter Railway from Malolos to Clark International Airport and from Solis, in Tondo, Manila, to Calamba.
The project is expected to contribute to the expansion of the capital region’s economy and improve its investment environment. — Arjay L. Balinbin
NEA to ask Budget dep’t for P16.76 billion until 2026 to fund remaining sitio electrification
THE National Electrification Administration (NEA) said Monday that it will be seeking P16.76 billion worth of additional funding from the Department of Budget and Management (DBM) until 2026 for its sitio electrification program, with the goal of powering up more than 11,000 rural villages within that period.
In the 2021 budget, P1.63 billion was earmarked for a sitio electrification program (SEP). The NEA said these funds are only good for energizing 1,085 sitios. At present, 11,174 sitios have no access to power.
“At the rate the SEP projects are ongoing… the NEA will be asking the Department of Budget and Management (DBM) to fund an average number of 2,000 sitios until 2026 to finish (the electrification program) with an estimated project cost of P16.761 billion,” the NEA told BusinessWorld by e-mail Monday.
It said the rural electrification program is supported by “inadequate” subsidies for financing rural electrification projects.
Of the 1,085 sitio projects to be funded out of this year’s budget, 413 are in Luzon, 262 sitios in the Visayas, and 410 in Mindanao. The NEA estimates an average cost per sitio of P1.5 million to bring power to those locations.
The NEA said it is looking to tap renewable energy to power off-grid areas under the Strategized Sitio Electrification Program (SSEP), and the Strategized Household Electrification Program (SHEP).
SSEP targets isolated sitios which cannot be energized via sitio electrification or barangay line enhancement programs. Before SSEP is implemented, the NEA must undertake a feasibility study for a hybrid microgrid system, NEA Deputy Administrator for Technical Services Artis Nikki L. Tortola said in December.
SHEP is targeted at households in remote areas using stand-alone photovoltaic systems.
“No budget has been allocated for off-grid electrification since 2020,” the NEA said Monday, adding that it currently had budgets of P12 million and P153 million for the SSEP and SHEP, respectively. The allocations are based on the 2019 budget.
The NEA added that it has asked the DBM to fund 74 areas for the 2021 barangay line enhancement program, which has not received allocations since 2017. — Angelica Y. Yang
Region’s working mothers report struggle to balance WFH, domestic responsibilities
WORKING MOTHERS across the region continue to face challenges adapting to the pandemic even as most workers overall grow more accustomed to remote work arrangements, professional networking site LinkedIn said.
The study accompanying the LinkedIn Opportunity Index 2021 found that nearly five in 10 working mothers in the Asia Pacific reported difficulty balancing working from home with their roles as mothers.
“Women, especially working mothers, are facing more significant obstacles under the current set-up compared to men. Close to half of working mothers (47%) have said they are struggling to balance their work and household responsibilities,” LinkedIn said.
LinkedIn also reported that 42% of working mothers believe that domestic responsibilities are “getting in the way of their career development.”
The report was conducted in January with 10,000 respondents across the Asia Pacific Region, including 1,256 in the Philippines.
The report found that working women in the Philippines have experienced more gender discrimination in professional settings. “Half of working women in the Philippines (believe) that their gender played a role in missing out on opportunities, promotion, and pay,” LinkedIn said.
Around 22% of working women said they had fewer career advancement opportunities while 14% said salaries compared to men in their profession were lower.
Overall, 51% of Filipino workers found the gender gap to be more manageable, having improved in recent years. Some 74% agreed that gender equality is important in society, though 31% expressed the opinion that gender equality cannot be achieved.
LinkedIn Vice-President for Talent and Learning Solutions in the Asia-Pacific Feon Ang said societal perceptions of women need to further improve especially with the workplace changing rapidly during the pandemic. This will ensure equitable opportunities and recovery for all.
“The Philippine workforce has taken a hit due to COVID-19 across the board, women included. The lack of time is the top barrier for women today — likely due to having to juggle remote working and family responsibilities. We also know that women are seeking to get ahead in life, and want equal access to opportunity as men,” Ms. Ang said in a statement Tuesday. — Gillian M. Cortez
CA upholds dismissal of customs worker over SALN dishonesty
THE Court of Appeals (CA) has upheld the dismissal of a customs employee over her failure to disclose a Bulacan property in her annual Statements of Assets, Liabilities, and Net Worth (SALNs), the Department of Finance (DoF) said Tuesday.
The DoF said in a statement that former customs operations officer Miriam Casurayan was found to have deliberately omitted from her SALN ownership of a house in San Jose del Monte, Bulacan. The DoF was citing an October 2020 CA ruling sent to the DoF on Jan. 11.
The property was purchased in 1998 but not declared in Ms. Casurayan’s SALN, according to the anti-corruption arm of the DoF, the Revenue Integrity Protection Service (RIPS).
“As a government employee, it is incumbent upon Casayuran to provide truthful disclosures in her SALNs. As discussed by the Honorable Court in its decision, the full disclosure of one’s wealth in SALNs is a means of preventing and curtailing corruption and maintaining a standard of honesty in the public service,” Finance Undersecretary for legal affairs Bayani H. Agabin was quoted as saying.
The case had earlier been dismissed by the Office of the Ombudsman before elevation to the CA.
The CA ruling affirmed her dismissal from the service, disqualification from future public office, and the forfeiture of retirement benefits.
The court cited the case of Fajardo vs. Corral, which held that SALN omissions or misdeclarations with “malicious intent” are grounds for dismissal.
The DoF early this year launched a complaints portal known as the Information against Corruption page to serve as a channel for whistleblowers reporting unexplained wealth among the personnel of the Bureau of Customs and the Bureau of Internal Revenue.
It also covers officials at the DoF, Bureau of the Treasury, Bureau of Local Government Finance, Insurance Commission, National Tax Research Center, Central Board of Assessment Appeals, Philippine Deposit Insurance Corp., Philippine Export-Import Credit Agency, the Privatization and Management Office, and Securities and Exchange Commission.
In October, President Rodrigo R. Duterte ordered a broad investigation into corruption in the government, running until 2022.
RIPS has investigated 403 personnel of the DoF and its agencies since July 2016.
Administrative and criminal cases have been filed against 60 personnel, with 14 dismissed.
RIPS has the authority to look into suspected cases of corruption and file criminal, civil or administrative complaints. — Beatrice M. Laforga
PCA updating coconut farmer registry after trust fund law enacted
THE Philippine Coconut Authority (PCA) said it is updating its coconut farmer registry following the recent signing of Republic Act No. 11524, or the Coconut Farmers and Industry Trust Fund Act.
In a virtual briefing Tuesday, PCA Administrator Benjamin R. Madrigal, Jr. said the PCA’s current registry contains 2.5 million farmers.
“We are updating the registry because it is possible that there are farmers who have died or decided to exit coconut farming. We are coming up with an updated list,” Mr. Madrigal said.
Mr. Madrigal said the PCA hopes to complete validating its registry within 90 days from the effectivity of the law.
He said the PCA offers various modes of registration: online, at provincial and municipal agricultural offices, at PCA regional offices, and the dispatch of PCA employees to register coconut farmers.
“According to the law, the direct beneficiaries of the coco levy are those who own up to five hectares of coconut farms, or tenants or farmers that do not own the land but are using it,” Mr. Madrigal said.
“We are registering every farmer so that we can see everyone who is contributing to the industry. All of them are stakeholders in the coconut industry,” he added.
On Feb. 26, President Rodrigo R. Duterte signed the law.
The law directs the Bureau of the Treasury to transfer P10 billion to the trust in the first year, P10 billion in the second, P15 billion in the third, P15 billion in the fourth, and P25 billion in the fifth.
Former President Ferdinand E. Marcos and his associates imposed the coconut levy on farmers, promising to improve the industry with the proceeds as well as a share of the investment returns.
However, the money was diverted to purchase corporate assets like the United Coconut Planters Bank and San Miguel Corp. — Revin Mikhael D. Ochave
PHL commercial borrowing to ease as recovery takes hold — S&P
PHILIPPINE sovereign borrowing from commercial sources is expected to decline this year as the economy emerges from its steep 2020 downturn, according to S&P Global Ratings.
“(Strong growth) should help stabilize revenue and help the government narrow its deficit somewhat, moderating its commercial borrowing needs relative to 2020,” S&P sovereign analyst Andrew Wood said in an e-mail.
S&P expects the economy to grow by 9.6% this year following a record 9.5% contraction in 2020.
In a note, “Sovereign Debt 2021: Asia-Pacific Central Governments to Borrow $4.1 trillion,” S&P Global said Philippine long-term commercial borrowing will likely hit $32.3 billion this year, down from $54.4 billion in 2020.
Overall borrowing, both long-term and short-term, including from non-commercial sources at lower rates, is expected to amount to $200 billion this year, against $189.4 billion in 2020, it said.
Governments across the region are expected to increase commercial borrowing this year as they continue to deal with the pandemic.
“A number of smaller issuers in Southeast Asia are projected to borrow significantly more this year than in the years before 2020,” S&P said.
This year, the Philippine government plans to borrow P286 billion via foreign currency-denominated bonds and P1.532 trillion in fixed-rate treasury bonds, according to the financing plan posted on the Department of Budget and Management website.
The budget deficit in 2020 more than doubled to P1.371 trillion as the government raised spending as revenue fell in a bid to contain the pandemic. The deficit is equivalent to 7.63% of gross domestic product (GDP), against 3.38% in 2019.
In 2021, the fiscal deficit is projected at 8.9% of GDP, with the government expecting gross borrowing of about P3.03 trillion. — Luz Wendy T. Noble
KZ Tandingan sings first Filpino Disney song
Disney Philippines has announced that “Gabay” by Filipino singer KZ Tandingan will be the first song sung in Filipino to be used in the soundtrack of a Disney movie.
It will be used in Walt Disney Animation Studios’ latest epic animated adventure Raya and the Last Dragon, which is inspired by the cultures of Southeast Asia.
The film’s story is set in the fantasy world of Kumandra, where long ago humans and dragons lived together in harmony. Raya (voiced by Kelly Marie Tran) goes on a new adventure to track down the legendary last dragon, Sisu (voiced by Awkwafina) to restore the fractured land and unite its divided people. During the journey, Raya will learn that it will take more than a dragon to save the world.
“Raya and the Last Dragon is inspired by various Southeast Asian cultures and, as such, we found it fitting to launch ‘Gabay’ as a way for us to celebrate the film and connect with our Filipino fans,” said Allie Benedicto, Studio Marketing Head of Disney Philippines, in a press release. The song “demonstrates our commitment to work with local creative talents to tell our stories in a locally relevant manner.”
“I am very grateful and I feel very proud to be singing in my language, and show off its beauty to the rest of the world. I am proud to be part of history,” said Ms. Tandingan in a statement. “I grew up watching Disney movies. Finally, there is a Disney Princess who I can feel a very strong connection to, and that is Raya as the first one inspired by Southeast Asia.”
“Gabay” will be available to stream on Spotify on March 5.
Raya and the Last Dragon will premiere in theaters and on Disney+ in the United States this month. A Philippine cinema release will soon follow. — MAPS