How PSEi member stocks performed — January 6, 2021
Here’s a quick glance at how PSEi stocks fared on Wednesday, January 6, 2021.
Peso climbs further as sentiment improves
THE PESO strengthened against the greenback on Wednesday backed by risk-on sentiment following the extension of key measures for the government’s pandemic response as well as a likely Democrat win in the Georgia senatorial runoff elections.
The local unit closed at P48.033 versus the dollar yesterday, gaining 3.2 centavos from its P48.065 finish on Tuesday, data from the Bankers Association of the Philippines showed.
The peso started trading at P48.055 per dollar on Wednesday. Its weakest showing was at P48.075 while its intraday best was at P48.03 against the greenback.
Dollars traded dropped to $488.8 million from the $586 million logged on Tuesday.
The peso climbed versus the dollar following the extension of the validity of measures that could help push the country’s recovery, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.
“The peso was strong after President [Rodrigo R.] Duterte signed into law the extension of the funds availability of the 2020 national budget and the Bayanihan 2,” Mr. Ricafort said.
Meanwhile, a trader said developments in the runoff elections in Georgia also lifted market sentiment.
“The peso appreciated amid early indications of a Democratic win in the Georgia senatorial runoffs which might pave way for more US stimulus spending under the [President Joseph R.] Biden administration,” the trader said in an email.
Projections point to the win of Democratic challenger Raphael Warnock versus incumbent Kelly Loeffler in the Senate race in Georgia, Reuters reported. About 4.5 million voters participated which is a record for a runoff election.
This Thursday, Mr. Ricafort expects the peso to move within the P48.01 to P48.06 band versus the dollar while the trader gave a forecast range of P48.00 to P48.10. — LWTN with Reuters
Shares drop further on inflation data, virus fears
By Revin Mikhael D. Ochave, Reporter
SHARES declined on Wednesday as market sentiment was hit by data showing faster inflation and the continuous spread of the coronavirus disease 2019 (COVID-19) across the world.
The Philippine Stock Exchange index (PSEi) fell 86.33 points or 1.21% to close at 7,047.85, while the all shares index declined 43.8 points or 1.02% to end at 4,230.14.
Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the local bourse ended lower as investor sentiment was affected by inflation data released on Tuesday.
Headline inflation picked up to 3.5% in December from 3.3% in November and 2.5% in December 2019, the Philippine Statistics Authority (PSA) reported on Tuesday.
The PSA attributed the increase to higher prices of food, non-alcoholic beverages, and transport during the holidays.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the market closed lower as investors worried about the continued spread of COVID-19.
Reuters reported that mainland China posted 32 new COVID-19 cases on Jan. 5, bringing its case count to 87,215. Tokyo also posted a new daily record of 1,591 new COVID-19 cases on Wednesday, while Brazil registered an additional 56,648 cases as of Tuesday.
AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the market declined as investors remain uncertain about the recovery of the Philippine economy.
“The market’s performance tells us that the uncertainty regarding the pandemic as well as the economy’s recovery is causing investors to take a more cautious approach,” Mr. Mangun said in an e-mail.
All sectoral indices at the PSE ended lower on Wednesday. Financials declined by 32.48 points or 2.29% to 1,380.37; holding firms retreated 99.84 points or 1.36% to 7,227.78; services went down 20.35 points or 1.33% to 1,503.20; mining and oil shrank 85.49 points or 0.87% to 9,680.75; property decreased 26.1 points or 0.7% to 3,679.18; and industrials dropped 30.39 points or 0.32% to 9,455.20.
Decliners beat advancers, 146 against 74, while 45 names ended unchanged.
Value turnover on Wednesday amounted to P11.91 billion with some 22.68 billion issues switching hands, higher than the P11.34 billion with 30.76 billion issues in the previous trading day.
Net foreign selling reached P685.39 million on Wednesday, higher than P80.27 million posted on Tuesday.
“In the remaining two trading days for the week, we’ll have to observe if the index manages to stay above the 7,000 mark. Otherwise, 6,700 may be considered the next support area. 7,300 remains the immediate resistance level,” Timson Securities’ Mr. Pangan said.
“The PSEi managed to end the day above 7,000. However, it may not be able to sustain this until the end of the week,” AAA Southeast Equities’ Mr. Mangun said.
Philippines still untouched by more contagious strain — DoH
By Vann Marlo M. Villegas, Reporter
A MORE contagious coronavirus strain that has caused a fresh surge in cases in Europe has yet to reach Philippine shores, Health authorities said on Wednesday.
The new variant had not been detected in any of the 305 positive samples from patients admitted to various hospitals in the past two months and from inbound travelers who tested positive at the airports, the Department of Health (DoH) said in a statement.
Hong Kong authorities on Tuesday said a 30-year-old female Hong Kong resident who arrived from the Philippines on Dec. 22 tested positive for the new coronavirus disease 2019 (COVID-19) strain.
Chuang Shuk-kwan, head of the Communicable Disease Branch of Hong Kong’s Health department, told a news briefing they had found four cases with the new coronavirus strain, one of whom was the Hong Kong resident who arrived on Dec. 22 via a Philippine Airlines flight.
Health Undersecretary Maria Rosario S. Vergeire said they were coordinating with Hong Kong health authorities for further details on the passenger.
She said they had first reached out to the International Health Regulations Focal Point of Hong Kong but did not get a response. They contacted the Western Pacific Regional Office and got a direct line to the Ministry of Health of Hong Kong. “We are now trying to call directly so we can get further details,” she told an online briefing on Wednesday.
Ms. Vergeire said they had received the flight manifest from the Bureau of Quarantine containing the names of the 40 passengers of the Philippine Airlines flight.
She said they were reaching out to two 30-year-old female passengers whose nationalities were still unknown. “We just zeroed in initially on the two. Now we are contact tracing the other 38 passengers,” she said in mixed English and Filipino.
Ms. Vergeire said the two passengers who matched the profile from Hong Kong authorities had both tested negative before they left for Hong Kong.
Meanwhile, John Q. Wong, founder of health research team Epimetrics, Inc., said cases could increase by fifteenfold after a month if the new strain becomes dominant. At a reproduction rate of 1.1, the 20,000 cases at the start of the month would have gone up to 32,000 cases by the end of January, he told the same briefing.
“But if the variant takes over, the 20,000 cases can become almost 300,000 cases by the end of the month. So this is what we want to avoid,” he said.
Mr. Wong said the country could still prevent infections by following health protocols such as wearing face masks and shields. “It is within our power to control this through our own behavior.”
CASE TALLY
DoH reported 1,047 coronavirus infections on Wednesday, bringing the total to 480,737.
The death toll rose by 26 to 9,347, while recoveries increased by 339 to 448,700, it said in a bulletin.
There were 22,690 active cases, 81.8% of which were mild, 8.5% did not show symptoms, 6% were critical, 3.2% were severe and 0.52% were moderate.
Davao City reported the highest number of new cases at 79, followed by Quezon City at 58, Laguna at 55, and Bulacan and Cagayan de Oro City at 40 each.
DoH said 3 duplicates had been removed from the tally while 13 recovered cases were reclassified as deaths. Three laboratories failed to submit their data on Jan. 5.
More than 6.5 million people have been tested for the coronavirus in the Philippines as of Jan. 3, according to DoH’s tracker website.
The coronavirus has sickened about 86.9 million and killed 1.9 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization (WHO).
About 61.6 million people have recovered, it said.
Also on Wednesday, an inter-agency task force against the coronavirus has formed a team that will monitor and detect the new virus strain in the country. The team will also recommend the appropriate response, according to a copy of its resolution.
Ms. Vergeire will head the technical working group. Executive Director Jaime Montoya of the Philippine Council for Health Research and Development will serve as co-chairman. — with K.A.T. Atienza
Pfizer to get green light for emergency use application soon
THE PHILIPPINES is expected to grant the emergency use authorization for the coronavirus vaccine developed by Pfizer, according to the chief of the local Food and Drug Administration (FDA).
The vaccine made by the US drugmaker and its German partner BioNTech SE may get the green light by Jan. 14, FDA Director-General FDA Rolando Enrique D. Domingo told an online news briefing on Wednesday.
The review had been expedited because Pfizer has obtained emergency use listing from the World Health Organization (WHO) and authorization from several countries including the US, United Kingdom, Switzerland and Singapore, he said.
“The process is fast but we are going through each step to ensure the quality, safety and efficacy of the vaccines before we give approval,” Mr. Domingo said.
Results from a late-stage vaccine trial showed that the Pfizer vaccine is 95% effective after two shots.
AstraZeneca Plc has also applied for emergency use authorization of its COVID-19 vaccine in the Philippines, Mr. Domingo.
He said the British drugmaker has a tripartite supply deal with the private sector and Philippine government. It is in talks with local governments seeking to order vaccines, he added.
“The vaccine from Oxford and AstraZeneca was already approved in the United Kingdom and India,” Mr. Domingo said. “We anticipate that they will also apply in the Philippines.”
AstraZeneca’s vaccine, which was found to be 70% effective on average after two shots, is reportedly cheaper than the Pfizer/BioNTech vaccine and does not require super cold temperatures.
Mr. Domingo said the Pfizer vaccine, “the most in-demand brand,” would most likely become available locally in the third or fourth quarter.
Meanwhile, biotechnology companies in the Philippines will seek approval for emergency use authorization for a coronavirus vaccine made by Bharat Biotech India this month, IP Biotech, Inc. said in a statement.
The FDA will get the application from IP-Biotech, Family Vaccine & Specialty Clinics and Ambica International Corp., IP Biotech said after India’s drug regulator approved the vaccine.
Bharat Biotech India’s Covaxin was developed with the Indian Council of Medical Research-National Institute of Virology.
“The indigenous, inactivated, whole virus vaccine has a standard cold chain temperature of 2-8 degrees Celsius, making it ideal for tropical countries,” IP Biotech said in the statement. — Kyle Aristophere T. Atienza
General who led coup against two former presidents dies at 65
DANILO D. Lim, a general who led separate coups against former Presidents Corazon C. Aquino and Gloria Macapagal Arroyo in 1989 and 2007, has died. He was 65.
Mr. Lim, who had been chairman of the Metropolitan Manila Development Authority (MMDA) since 2017, died of cardiac arrest on Jan. 6, the agency said in a statement.
He led efforts in alleviating problems confronting Manila, the capital and nearby cities by “going back to the basics,” it said. “Under his helm, Mr. Lim prioritized the welfare of employees by ensuring they receive accident insurance and other appropriate benefits.”
“MMDA Chairman Lim served the Duterte Administration with professionalism, competence and integrity,” presidential spokesman Harry L. Roque said in a separate statement.
Mr. Lim on Dec. 29 said he had tested positive for the coronavirus and would isolate himself after showing mild symptoms.
As a young captain in the 1980s, he joined the rebellion of the Reform the Armed Forces Movement against Cory Aquino by laying siege to the Makati financial district.
Less than two decades later, Brigadier General Lim under the same group joined the coup against Mrs. Arroyo by marching through the streets of Makati after walking out of their trial for rebellion.
They called for her ouster and laid siege to the Peninsula Manila Hotel in Makati.
Mr. Lim, who ran and lost in the 2010 senatorial elections, also served as a deputy commissioner of the Customs bureau under ex-President Benigno S.C. Aquino. He resigned after less than two years in 2013 due to corruption at the agency.
He is survived by his wife Party-list Rep. Aloysia Tiongson-Lim and daughter Aika. — Norman P. Aquino
House leaders meet to revive cha-cha push
House of Representatives leaders met on Wednesday to revive a push to change the Constitution, including easing foreign ownership limits.
Party-list Rep. Alfredo A. Garbin, the newly elected chairman of the committee on constitutional amendments, said he met with Speaker Lord Allan Q. Velasco and several House leaders to discuss the upcoming Charter change (cha-cha) hearings.
Mr. Garbin said the Speaker had asked him to begin as “early as next week” the hearings, where plans to relax economic provisions of the 1987 Constitution will be discussed.
“The Speaker directed me to tackle the calls to amend the 1987 Constitution, especially the restrictive economic provisions,” he said by telephone on Wednesday. “We might have a hearing by next week.”
Mr.Garbin said the committee deliberations would start before sessions resume on Jan. 18.
The lawmaker said restrictive economic provisions hamper the flow of foreign investments, which the country needs to recover from the fallout of the coronavirus pandemic.
“We have a strong belief that this will be passed in Congress this time because it will respond to the needs of our time,” he said. ”We are lagging behind in foreign direct investments and we are one of the countries with very restrictive economic laws.”
Mr. Garbin said the changes to the economic provisions of the 33-year old Constitution would be based on the resolutions filed by Mr. Velasco in 2018. — Kyle Aristophere T. Atienza
Regional Updates (01/06/21)
Flood control for Cagayan de Oro
TWO river control projects to protect two low-lying villages in Cagayan de Oro City from flooding, with a combined cost of P120 million, have been completed by the Department of Public Works and Highways (DPWH). The city saw its worst flooding in December 2011 when typhoon Sendong, with international name Washi, swept through the northern part of Mindanao.
DoT warns hotels, tour operators offering staycation in non-accredited establishments
THE Department of Tourism warned hotels and other accommodation facilities offering staycation without the appropriate certification. “We would like to correct the misperception that all four- or five-star rated accommodation establishments can operate as staycation hotels. For such hotel to accept guests for leisure purposes, it has to apply for a Certificate of Authority to Operate as Staycation (CAOS) hotel,” Tourism Secretary Bernadette Romulo-Puyat said in a statement on Tuesday. The warning was issued after Ms. Puyat’s letter to the City Garden Hotel Makati’s management ordering an explanation why they had leisure guests on New Year’s eve when it does not have a CAOS. The hotel is an accredited quarantine facility, which also means it is prohibited from accepting guests who are not undergoing the mandatory 14-day isolation. Ms. Puyat stressed that a CAOS hotel “cannot, above all things, concurrently operate as a quarantine facility.” A 23-year old flight attendant died in one of the rooms of the City Garden Hotel following a private New Year party. The department’s warning also covers “tour operators and other entities that continue to post invitations or make false, deceptive and misleading claims or statements for the purpose of soliciting business from clients.
Nationwide round-up (01/06/21)
Senate to prioritize PhilHealth hike deferment bill
THE Senate will prioritize the bill that will defer the scheduled rate increase for Philippine Health Insurance Corp. (PhilHealth) contribution when sessions resume, a Senate leader said on Wednesday. “We will prioritize the bill filed yesterday on the deferment of the additional increase of monthly contributions during the time of the Pandemic,” Senate Majority Leader Juan Miguel F. Zubiri told reporters over phone message. He said the rules committee will immediately refer Senate Bill No. 1968 among other bills that seek to amend Republic Act No. 11223, the Universal Health Care Act, for committee action. “Once the committee report is done, we can finish in plenary within two to three weeks of debate and amendments,” he said. PhilHealth President and Chief Executive Officer Dante A. Gierran on Tuesday officially announced the deferment of the rate increase, in line with President Rodrigo R. Duterte’s directive. “We will implement the suspension until Congress passes a new law that will allow the deferment of the scheduled premium adjustment,” Mr. Gierran said in a statement in Filipino posted on PhilHealth’s official Facebook page. The rate increase will be implemented should Congress fail to pass an amendment to the UHC law, he said. — Charmaine A. Tadalan
House resolution filed for inquiry on vaccination program
A RESOLUTION seeking to conduct an inquiry into the status of the government’s coronavirus vaccination program has been filed in the House of Representatives. Marikina Rep. Stella Luz A. Quimbo filed House Resolution No. 715 to look into the details of the use of funds allocated for coronavirus disease 2019 (COVID-19) vaccines, including procurement, and preparation of equipment and personnel. Ms. Quimbo said the inquiry is intended to provide “necessary oversight to ensure sufficient capacity for nationwide distribution, and an overall cost-effective implementation.” While there are reported negotiations ongoing with various pharmaceutical firms to acquire vaccines, Ms. Quimbo said a clear plan is needed “for how to maximize available funds across vaccine types” and to provide guidance on the amount of funds still needed. — Kyle Aristophere T. Atienza
Senate resolution filed to probe unregistered vaccine purchase
A RESOLUTION seeking to investigate the procurement of unregistered vaccines for the coronavirus disease 2019 (COVID-19) inoculated to Cabinet officials, military and Presidential Security Group (PSG) members has been filed in the Senate. Resolution No. 603 was filed to look into those behind the smuggling of the vaccine and its distribution, which detained Senator Leila M. de Lima deemed as a danger to national security. “Those who have been vaccinated are senior officials of our country who are essential to the functioning of our democracy. As such, to have them vaccinated with unregistered and unvetted vaccines constitutes endangerment not only to themselves but also to our national security,” she said in a statement on Wednesday. This comes after President Rodrigo R. Duterte ordered the PSG not to attend a Congress hearing that will investigate the use of COVID-19 vaccines not yet certified by the local Food and Drug Administration (FDA). Senator Sherwin T. Gatchalian, for his part, said he is more concerned on the smuggling issue rather than the prioritization of PSG personnel in the vaccination. — Charmaine A. Tadalan
Senator falls victim to credit card hacking
A HACKER was able to access Senator Sherwin T. Gatchalian’s credit card details on Tuesday and used it for over P1 million worth of transactions from delivery firm Food Panda, the senator said on Wednesday. “My credit card has just been hacked! May nag order ng P1M worth of food sa Food Panda in less than an hour,” Mr. Gatchalian said in a social media post. In the same post, he showed that four transactions worth P300,851, P356,517, P323,247 and P96,265 to Food Panda were charged to his credit card issued by the UnionBank of the Philippines. Mr. Gatchalian said the hackers changed his mobile number through his online account to allow them to redirect the one-time pin (OTP) sent during the transactions. He narrated during an online briefing Wednesday that notifications from the bank regarding the phone number change came through while he was at the Senate for a hearing. The senator will file the police report on the incident on Thursday at the Valenzuela Police Station. He said UnionBank immediately deactivated the credit card and is now investigating the hacking. — Charmaine A. Tadalan
Makati court judge inhibits from Ressa case
A MAKATI City trial court judge inhibited from hearing the second cyberlibel case of Rappler Chief Operating Officer Maria A. Ressa after receiving an email that contained a death threat. Judge Maria Amifaith S. Fider-Reyes, in an order, said she received an email on Dec. 4 asking her to junk the case against Ms. Ressa, including a threat to her life. She received a second email from the same sender thanking her for allowing the journalist to travel for the holidays. “To avoid the impression that the decisions of this Judge are influenced or affected by the correspondence received from this e-mail address, the judge finds just reasons to inhibit from the case,” the order read. “Whoever is responsible for this e-mail is severely reprimanded for lack of respect to the judicial process,” she added. Ms. Ressa, in a statement, said she doubts that the messages were from a supporter and she would “never condone nor tolerate attempts to manipulate the rule of law.” — Vann Marlo M. Villegas
Duterte signs bills extending budget, Bayanihan II validity
PRESIDENT Rodrigo R. Duterte signed measures extending the validity of the funds authorized by the 2020 national budget as well as those appropriated for the government’s second stimulus package.
Malacañang on Wednesday released the copies of the signed Republic Act (RA) No. 11520 and RA No. 11519, which had been passed by Congress over the last few weeks of 2020.
RA No. 11520 extends the availability of all appropriations authorized under the 2020 national spending plan, including the fiscal support for government-owned and -controlled corporations and the allocations for infrastructure capital outlays, until Dec. 31, 2021. The law aims to continue the financing of infrastructure projects that were identified for procurement last year. The projects must be completed not later than the end of 2021.
The law, however, contains no extension of the President’s powers to reprogram, reallocate, and realign savings from the 4.1-trillion national budget last year.
RA No. 11519 extends the availability of funds appropriated through RA No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II), which was passed last year to mitigate the impact of the pandemic on the economy. Bayanihan II expired on Dec. 19.
The new law allows government agencies to release the remainder of the P165.5 billion authorized under Bayanihan II, which includes the P25.5 billion in “standby” money which was contingent on the identification of funding sources.
Legislators expressed concerns about the slow disbursement of Bayanihan II in the wake of sweeping job losses and other problems that emerged during the pandemic.
On Dec. 28, Mr. Duterte signed the 4.5-trillion national budget for 2021. — Kyle Aristophere T. Atienza
PHL, India return to pre-pandemic levels by end-2022 uncertain
MOODY’S ANALYTICS said the recovery in the Philippines and India will lag the rest of the Asia-Pacific (APAC), with both countries struggling to restore their economies to pre-pandemic levels by the end of next year.
In a note issued Wednesday, “The APAC Economy: Looking Forward to 2021,” Moody’s Analytics Chief Asia-Pacific Economist Steven Cochrane said in the case of the Philippines, the coronavirus disease 2019 (COVID-19) outbreak remains uncontained, while the government’s stimulus spending is among the smallest in the region.
In the report, Moody’s Analytics downgraded its 2020 gross domestic product forecast for the Philippines to a contraction of 9.9% from the 8.2% contraction it projected in November.
It now expects the economy to grow 4.5% this year and 6.2% in 2022.
“Much of the region will have regained all of its lost output by the end of 2021, although India and the Philippines will struggle to reach this benchmark by the end of 2022,” it said.
On Wednesday, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said at a forum that the Philippines is expected to recover the economic output lost last year by mid-2022.
Mr. Cochrane said the region is poised to bounce back stronger than the rest of the world as most countries in the region have contained their outbreaks, except for the Philippines and Indonesia. He added that the region’s manufacturing supply chains are focused on goods in demand during the recovery phase, like computers, mobile phones, technology equipment, pharmaceuticals and protective gear.
Accommodative monetary policy by central banks in the region will also help fast-track the rebound, coupled with large recovery packages.
He said the Philippines and India will lag their peers because the two governments were “least committed to fiscal stimulus, even though they were the two most hard-hit economies from COVID-19 and their subsequent lengthy and strict quarantine policies.”
The note also cited the region’s relatively fast action in procuring COVID-19 vaccines.
“An important exception is the Philippines, which has made little progress so far,” it added.
Citing data from the Duke Global Health Innovation Center, Moody’s Analytics noted that only the Philippines has not yet bought any COVID-19 vaccines out of the 21 economies tracked.
“Currently, however, there remains a risk that the smaller emerging markets in APAC will be among the last to have enough vaccine doses,” Mr. Cochrane said.
He said the region could also benefit from an expected foreign policy shift when President-elect Joseph R. Biden, Jr. takes office this month.
“Yet whether still struggling to gain lost output or expanding their economies to new heights, all countries within APAC will grow in the coming year. Risks to the outlook include the perniciousness of COVID-19, which could cause deeper economic shutdowns in Europe and North America that would staunch the global trade in goods that is so important to the APAC economy.” — Beatrice M. Laforga
Peak power demand in 2021 seen exceeding pre-lockdown levels
PEAK POWER demand in 2021 is expected to hit 16,333 megawatts (MW), topping the 15,282 MW high from 2020, which was recorded before the lockdowns were imposed, the Department of Energy (DoE) said.
The DoE was reporting out data compiled by its Electric Power Industry Management Bureau (EPIMB).
“Luzon is expected to reach a peak demand of 11,841 MW during the summer period, from the 2020 peak demand of 11,103 MW which occurred prior to community quarantines,” DoE Head of Public Affairs Jive Bullock told BusinessWorld via Viber Wednesday.
“Visayas, on the other hand, is anticipating a peak demand of 2,394 MW in 2021 from 2,201 MW in 2020, while Mindanao is forecast to have a peak demand of 2,098 MW, from 1,978 MW in 2020,” she added.
Ms. Bullock said the forecasts are based on the National Economic Development Authority’s (NEDA) growth projections for 2021 gross domestic product (GDP), as of May, as well as actual demand in 2020. She said that in May, NEDA had expected GDP to grow 8 to 9% this year.
Asked about the supply outlook for the three grids in 2021, she said available capacity is still being evaluated.
“(This is) due to recent developments and concerns from the generation and transmission sectors in their maintenance schedules and the limited or slow movements of foreign technical consultants because of the pandemic,” Ms. Bullock said.
In a Dec. 21 briefing, Energy Secretary Alfonso G. Cusi said the DoE is seeking to add power capacity as the current supply “barely met demand.” He added that a surge in power demand is expected once the economy opens fully.
At the same event, he said demand for oil products will be higher this year as the transportation sector picks up after the shutdowns imposed by the public health emergency. — Angelica Y. Yang