How PSEi member stocks performed — October 4, 2021
Here’s a quick glance at how PSEi stocks fared on Monday, October 4, 2021.
PSEi rises on vaccine arrivals, lower infections
SHARES climbed on Monday on the arrival of more coronavirus disease 2019 (COVID-19) vaccine doses over the weekend and as the country continued to report lower infections.
The benchmark Philippine Stock Exchange index (PSEi) went up by 37.29 points or 0.53% to close at 6,960.89 on Monday, while the broader all shares index gained 21.68 points or 0.50% to end at 4,348.19.
“The PSEi continued to gain today… amid increased COVID-19 vaccine arrivals over the weekend,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message on Monday.
“New local COVID-19 cases already eased to among one-month lows, all of which could support or justify further easing of restrictions and further reopening of the economy,” he added.
On Sunday, the country logged 13,273 new infections, which brought active COVID-19 cases in the country to 112,008. The national tally stood at 2,593,399.
The Philippines received some 1.81 million doses of the vaccine developed by Pfizer, Inc. through the World Health Organization’s COVAX Facility. The country expects to receive 10 million more doses in the coming weeks.
“Philippine shares were traded higher as investors sought refuge from regions being sold down due to the Evergande debacle,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate Viber message.
Asian shares dipped on Monday as concerns about China’s property sector and inflation worries offset upbeat US data and positive news on new drugs to fight the coronavirus, Reuters reported.
Trading in shares of debt-laden China Evergrande was suspended pending an announcement about a major transaction. That comes a few days after the distressed developer missed a key interest payment on its offshore debt obligation for the second time.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1%.
Back home, all sectoral indices closed higher on Monday except for industrials, which lost 31.72 points or 0.30% to end at 10,268.62.
Meanwhile, mining and oil climbed 193.58 points or 2.06% to 9,591.13; holding firms went up by 92.95 points or 1.34% to 6,987.23; property improved by 15.61 points or 0.52% to 3,005.49; financials inched up by 7.43 points or 0.52% to 1,419.88; and services gained 2.69 points or 0.13% to 1,951.69.
Value turnover dropped to P5.89 billion with 955.46 million issues traded on Monday, down from the P21.99 billion with 2.32 billion shares that switched hands on Friday.
Advancers and decliners were tied at 93 each, while 55 names closed unchanged.
Foreigners turned sellers anew on Monday, logging P336.54 million in net outflows versus the P2.84 billion in net purchases seen on Friday.
Regina Capital’s Mr. Limlingan said the market is awaiting key economic data for leads.
RCBC’s Mr. Ricafort placed the PSEi’s resistance at 7,000 to 7,100 and its immediate support at the 6,700 to 6,800 levels. — Keren Concepcion G. Valmonte with Reuters
Peso strengthens as dollar takes hit from US debt ceiling impasse
THE PESO appreciated on Monday as the debate on the proposed US debt ceiling dragged on, affecting the dollar.
The local unit closed at P50.70 per dollar on Monday, gaining nine centavos from its P50.79 on Friday, based on the Bankers Association of the Philippines’ data.
The peso opened Monday’s session at P50.74 versus the greenback. Its strongest showing was at P50.68, while its weakest point was at P50.815 per dollar.
Dollars traded dropped to $857.54 million on Monday from $882.16 million on Friday.
“The peso appreciated as the greenback’s appeal waned from the lingering political uncertainty around the US debt ceiling and the prospects of more stimulus bills from the Democrats,” a trader said via e-mail.
Investors are getting more nervous over the looming fiscal crisis if the US Congress does not decide on whether the debt ceiling has to be raised or not to avoid a possible government shutdown and its first-ever default, Reuters reported.
Back home, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the delivery of more coronavirus vaccines sparked optimism on the government’s inoculation drive and the economy’s recovery, which boosted the peso.
“Peso is also stronger as the markets anticipate some seasonal increase in OFW (overseas Filipino worker) remittances and conversion to pesos into the fourth quarter, especially towards the Christmas season,” he added.
Latest central bank data showed OFW remittances rose by 2.5% from the year earlier to $2.853 billion in July, its highest level in seven months or since the $2.89 billion in December 2020.
The trader said the peso could weaken anew on Tuesday on expectations of faster inflation in September.
A BusinessWorld poll of 17 analysts showed a median estimate of 5% for September headline inflation, or near the lower end of the Bangko Sentral ng Pilipinas’ estimate of 4.8%-5.6% for the month.
The Philippine Statistics Authority will report September inflation data on Oct. 5.
Mr. Ricafort said the local unit may range from P50.60 to P50.80 on Tuesday, while the trader gave a slightly wider forecast range of P50.60 to P50.85. — B.M. Laforga with Reuters
Philippines at moderate risk despite case decline
THE PHILIPPINES is still at moderate risk from the coronavirus despite a continued decline in infections, according to the Health department.
Infections in the past two weeks fell by 21%, while the average daily attack rate was 14.73 for 100,000 people, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Monday.
The attack rate is equal to the number of infections over a two-week period divided by the population.
Ms. Vergeire also said there had been fewer swab tests for the coronavirus in 14 regions including Metro Manila.
The biggest decline in RT-PCR tests was in the capital region, whose positivity rate decreased to 16.4% in the past week from 19.3% a week earlier, she added.
Swab tests in the metro fell by 37,383 or 14.1% to 266,042, she said. “This translated to the lower positive individuals from 48,229 to 35,603.”
The Department of Health (DoH) was checking whether the fall was due to a decline in contact tracing efforts or whether more people have been undergoing antigen testing, Ms. Vergeire said.
She said the country’s health system capacity remained at high risk, with 73.2% of intensive care units (ICU) used.
Metro Manila was still under moderate risk even if infections fell by 33%. Its health system capacity was at high risk, with 75% of ICUs occupied. She said.
The DoH was set to report COVID-19 (coronavirus disease 2019) data on Monday night, citing technical problems.
The Philippines, which scored poorly in Bloomberg’s COVID-19 resilience study, is struggling to vaccinate its entire adult population.
MORE DELIVERIES
Presidential spokesman Herminio L. Roque, Jr. told a televised news briefing 46.38 million coronavirus vaccines had been given out as of Oct. 3. More than 21.8 million people or 28.26% of adult Filipinos have been fully vaccinated, he added.
The government is expected to take delivery of about 6.7 million more coronavirus vaccines this month under a global initiative for equal access, vaccine czar Carlito G. Galvez told the same briefing.
He said shipments under the global facility would include about 844,800 doses of the vaccine made by AstraZeneca Plc.
The Philippines will sign a contract with Johnson & Johnson’s Janssen Pharmaceuticals for 6 million doses of its single-shot coronavirus vaccine, he said.
Slovenia recently suspended the use of the Janssen vaccine after 20-year-old woman died, Euronews reported.
“We are temporarily stopping until all details related to this case are clarified,” Slovenian Health Minister Janez Poklukar said. But the “benefits continue to outweigh the risks,” she added.
Mr. Galvez said the Philippines had received almost 77.42 million doses of coronavirus vaccines. “The 100-million dose target this October is still on track, with the expected arrivals of more than 10 million procured Pfizer vaccines,” he added.
Meanwhile, several business groups urged the government to allow the private sector to “impose stricter requirements on unvaccinated employees and patrons, and to decline unvaccinated job applicants.”
The groups, which include the Bankers Association of the Philippines, Financial Executives Institute of the Philippines, GoNegosyo and Investment House Association of the Philippines noted that while people can refuse vaccination, “the state and private sector should be able to restrict the activities of unvaccinated persons for the common good.”
“Further, we believe the government should consider doing the same with its employees,” they said.
President Rodrigo R. Duterte earlier asked government workers who refuse to get vaccinated to leave public service.
The groups also asked companies to encourage employees to get vaccinated, while accommodating those who can’t get vaccinated for medical reasons in a way that won’t compromise the health and safety of other workers.
The statement was also backed by the Cebu Business Club, Makati Business Club, Philippine Business for Education, Philippine Ecozones Association, Philippine Institute of Certified Public Accountants, Philippine Retailers Association, Subdivision and Housing Developers Association, US-ASEAN Business Council and Women’s Business Council Philippines, Inc.
The Philippines aims to reach population protection by vaccinating 50-60% of its population by yearend. — Kyle Aristophere T. Atienza
Manila mayor files candidacy certificate for top Philippine post
MANILA City Mayor Francisco “Isko” M. Domagoso, a former matinee idol who beat former President Joseph E. Estrada in the 2019 local elections, on Monday filed his certificate of candidacy for President.
He filed his certificate with cardiologist and social media personality Willie T. Ong, who will be his vice-presidential mate.
Mr. Domagoso, whose rags-to-riches story has captivated many Filipinos, and Mr. Ong are running under Aksyon Demokratiko.
The tandem has promised to create a unifying government that will focus on the country’s pandemic recovery.
Mr. Domagoso earlier said he would create the “broadest form of government” and hire millennials if he becomes President. He said he would appoint officials who are competent and not because they are his friends.
The Manila chief has slammed the government’s pandemic response and the leadership style of President Rodrigo R. Duterte, whose late-night speeches he has criticized.
Mr. Domagoso, among the top presidential bets in opinion polls, used to be a scavenger and pedicab driver in a Manila slum before he was discovered by a talent scout.
Political analyst Cleve V. Arguelles has said Mr. Domagoso’s narrative could be easily discredited “because it’s personality — rather than platform-oriented.”
Vice-President Maria Leonor “Leni” G. Robredo, who has been endorsed by an opposition coalition as its presidential candidate for the 2022 elections, had been in talks with Mr. Domagoso as part of her efforts to form a united opposition.
Meanwhile, at least four members of Mr. Duterte’s Cabinet would run for senator next year, Alfonso G. Cusi, president of a faction of the ruling PDP-Laban, told the ABS-CBN News Channel.
These are presidential spokesman Herminio L. Roque, Jr., chief legal presidential counsel Salvador S. Panelo, Public Works Secretary Mark A. Villar and Presidential Anti-Corruption Commission Chairman Greco B. Belgica.
Labor Secretary Silvestre H. Bello III and Transportation Secretary Arthur P. Tugade were also considering running for senator, Mr. Cusi said.
The six were part of the initial slate of senatorial candidates under the Cusi faction of PDP-Laban.
Meanwhile, former Agriculture Secretary Emmanuel F. Piñol on Monday said he would run for senator under the Nationalist People’s Coalition. He also resigned from his position as head of the Mindanao Development Authority.
In a statement, the Agriculture chief said he would continue his advocacy for agriculture in the Senate.
Meanwhile, Mr. Cusi said that there was a “possibility” that Davao City Mayor and presidential daughter Sara Duterte-Carpio would run as the presidential candidate of PDP-Laban. The party can adopt a candidate who is aligned with its advocacies, he added.
Mr. Duterte on Saturday said his daughter would run for President in tandem with Senator Christopher Lawrence T. Go next year.
Ms. Carpio has filed her certificate of candidacy for a third term as Davao City mayor.
Mr. Duterte, who had flip-flopped on his 2016 presidential run, earlier said he would drop out of the vice-presidential race if his daughter runs for President. On Saturday, he claimed he would retire from politics after his six-year term ends.
A Social Weather Stations poll in June showed that six of 10 Filipinos thought Mr. Duterte’s vice-presidential run would be illegal.
Ms. Carpio, whose regional party has allied itself with traditional parties less than a year before the 2022 elections, has topped presidential opinion polls.
Political analysts have said the ruling camp might be doing everything they can to protect Mr. Duterte from potential lawsuits, especially in connection with his war on drugs.
Politicians have until Oct. 8 to file their certificates of candidacy. The substitution of candidates will be allowed until Nov. 15. — Kyle Aristophere T. Atienza and Russell Louis C. Ku
Pharmally exec recants confirmation on swindling gov’t in face shield supply
AN EXECUTIVE of a pandemic supply company under congressional probe has taken back a statement made before the Senate that the firm delivered expired face shields to the government.
Krizle Grace Mago, regulatory affairs head of Pharmally Pharmaceuticals Corp., said in a House of Representatives committee hearing Monday that she was not in the “best frame of mind” when she gave the recanted response to the Senate Blue Ribbon Committee.
“After the Senate hearing, I realized that the delivered items had not been inspected yet and, as a result, had not been allocated and distributed to the end-users. Additionally, we did not receive any payment from the government for the partial delivery,” she told the House Committee on Good Government and Public Accountability.
She said it was a “pressured response.”
Senator Richard J. Gordon, Sr., in a Sept. 24 hearing, asked Ms. Mago if Pharmally swindled the government, to which she replied, “I believe so, Mr. Chairman. I believe that is the case.”
The question came after Senator Ana Theresia “Risa” N. Hontiveros-Baraquel showed a recorded video of a Pharmally warehouse worker who testified that the certificates for two million face shields that expired last year had been replaced with new certificates dated 2021.
Ms. Mago admitted the practice, saying it had the blessing of the company management, particularly Pharmally Treasurer Mohit Dargani, who denied the allegation.
Ms. Hontiveros said the testimony was vetted for weeks and the witness was not paid any money after the lawyer of Pharmally Director Linconn Ong said that the senator’s office bribed the warehouse worker.
Ms. Mago voluntarily placed herself under the protective custody of the House of Representatives on Friday to “help (her) speak freely without unnecessary compulsion.”
Days prior, she could not be contacted by the Senate Blue Ribbon Committee following her revelation on the face shields.
Ms. Hontiveros, in a statement Monday, hit back at Ms. Mago’s retraction and recommended a review of the Senate committee proceedings.
“Let us remember that Ms. Mago was under oath when she was speaking before the Senate Blue Ribbon Committee hearing. Questions were only directed to her and she, in fact, answered forthrightly,” the senator said.
“If there is anyone pressuring her, it must be someone powerful for her to take back what she initially told us,” Ms. Hontiveros added in Filipino.
House lawmakers, mostly allies of the current administration, have insisted that the government’s deals with Pharmally were above board. — Russell Louis C. Ku
PHL to sign labor agreement with UK on nurse deployment
THE PHILIPPINES is set to sign a memorandum of understanding with the United Kingdom (UK) on the welfare and deployment of more Filipino nurses.
British Minister for Asia Amanda Milling will come to the Philippines on Friday for the signing with Philippine Labor Secretary Silvestre H. Bello III, according to Raul M. Francia, the Labor department’s information director.
In a news briefing last Sept. 15, Mr. Bello explained that the memorandum is a “labor affairs agreement” to deploy more Filipino nurses to Great Britain and in exchange, the state will provide additional benefits for overseas Filipino workers (OFWs) there, especially healthcare workers.
The national government has decided to keep the country’s current deployment cap on nurses at 6,500 annually, but this does not include the UK and Germany given their respective government-to-government agreements with the Philippines.
In another development, the two remaining OFWs allegedly abused by a retired Saudi general have been released by their employer after the Labor department threatened to temporarily suspend the deployment of workers to the Kingdom of Saudi Arabia.
Mr. Francia said the Philippine government has already booked the flights of the two OFWs and are set to come home soon.
In 2018, the Philippine Overseas Labor Office in Saudi Arabia received reports of 16 OFWs being physical abused and deprived of their salaries by a retired general who is allegedly “a close ally of a Saudi Prince.”
The 14 others have been repatriated with assistance from the Philippine government. They have also received their unpaid salaries amounting to about P100,000 to P300,000 each. — Bianca Angelica D. Añago
GCG’s low fund utilization rate questioned at Senate budget hearing
THE GOVERNANCE Commission for Government-Owned and Controlled Corporations’ (GCG) low fund utilization in 2020 and this year must be solved by yearend, a senator said Monday during the agency’s budget hearing.
Senator Sherwin T. Gatchalian cited that GCG has unspent funds of P73 million or 36% of its allocation in 2020, while 46% or P96 million remain in the 2021 budget.
He noted that the validity of the 2020 budget was extended. “So in other words, you can spend the unspent amount up to the end of this year.”
“I want to make sure that while debating your budget on the floor, these amounts will be spent towards the end, and that you’ve already made the necessary actions” to do so, he said. The committee asked for a breakdown and timetable of the agency’s spending arrangements.
GCG Director Jaypee O. Abesamis said that for the 2020 budget, about P31 million was returned to the National Treasury for unimplemented projects such as the procurement of motor vehicles, network and security upgrade, and data privacy consultancy, among others.
Another P19 million, he added, was returned because the designated activities were already provided funds in the 2021 General Appropriations Act.
He said there were already ongoing procurements for the P23-million balance remaining.
As for the 2021 budget, Mr. Abesamis assured that the budget spending would increase towards the end of the year because programs for procurement such as motor vehicles and consultancy services for information and communication technology management systems already have purchase requests. — Alyssa Nicole O. Tan
12th typhoon of the year brings rains over central Philippines
STATE WEATHER bureau PAGASA warned against landslides and flooding as tropical depression Lannie was expected to bring heavy rains over central parts of the Philippines until Wednesday.
As of Monday 5 p.m., Lannie made eight landfalls within a 15-hour period with two each in the northern part of Mindanao, Southern Leyte, and Bohol, and one each in Negros Oriental and Cebu.
PAGASA weather forecaster Ariel Rojas, in a briefing Monday morning, said
Lannie, the 12th typhoon to enter the country this year, was likely to make more landfalls as it moves slowly over the Visayas islands and Palawan.
Lannie was forecast to remain within tropical depression category, with a possibility of slight intensification once it is over the Sulu Sea or West Philippine Sea.
“It may likely be upgraded into a tropical storm by Tuesday evening or Wednesday early morning,” the Philippine Atmospheric Geophysical and Astronomical Services Administration (PAGASA) said.
PAGASA Administrator Vicente B. Manalo called on the public and emergency response teams to maintain vigilance despite the tropical depression category, the lowest within the tropical cyclone intensity scale with just up to 61 kilometers per hour (kms/hr) of sustained winds.
Mr. Manalo said Lannie is still a typhoon and it will bring rains that could trigger flashfloods and landslides, especially in high-risk areas and those that have already been experiencing monsoon rains in previous weeks.
“Wag tayo mag-kumpyansa (Let us not let our guards down) because it will bring heavy rains,” he said.
As of PAGASA’s 5 p.m. bulletin on Monday, Lannie was located in the vicinity of Guihulngan, Negros Oriental with maximum sustained winds of 45 kms/h near the center and gustiness of up to 55 kms/h.
Typhoon signal #1 was up over parts of the provinces of Mindoro, Masbate, Romblon, and Palawan, and most areas of the Central and Western Visayas regions.
Lannie is expected to exit the Philippine area on Thursday morning. — MSJ
Customs at PHIVIDEC Industrial Estate
CONSTRUCTION of a Bureau of Customs (BoC) building within the PHIVIDEC Industrial Estate in Misamis Oriental will start soon following last week’s cornerstone-laying ceremony for the project. Elvira Cruz, BoC-Cagayan de Oro district collector, said a Customs office within the estate will contribute to ease of doing business at the Mindanao Container Terminal, one of the country’s main ports. The project is expected to be completed by April 2022.
Manufacturers object to safeguard measures on 2 key plastic raw materials
MANUFACTURERS said they oppose the imposition of safeguard duties on imports of two key raw materials for making plastic goods — high-density polyethylene (HDPE), used in bottles and pipes, and linear low-density polyethylene (LLDPE), used in bags, toys and containers.
Danny Ngo, Philippine Plastics Industry Association, Inc. president, said in a statement Monday that the safeguard measures will trigger price hikes in commodities that use such plastics for packaging, such as food, beverages, cosmetics, personal and home care goods, and medicine.
Mr. Ngo said safeguard duties on HDPE and LLDPE will also make his industry uncompetitive against imported products.
“The move is very untimely (due to the pandemic) … businesses at present are still recovering from losses, while the majority of Filipinos have been battered by the series of lockdowns and mobility restrictions which forced many livelihood activities to stop,” Mr. Ngo said.
Republic Act 8800, or the Safeguard Measures Act, authorizes regulators to impose safeguard duties if domestic industries are harmed by a surge in competing imports.
On Sept. 17, the Department of Trade and Industry (DTI) issued Department Administrative Order No. 21-05, making note of petitions by the petrochemicals industry, represented by JG Summit Petrochemical Corp. (JGSPC), for safeguard measures on imported HDPE and LLDPE.
The Tariff Commission will conduct a formal investigation to determine the extent of the harm done to domestic industry, with two separate preliminary conferences set to be held on Oct. 7.
“The DTI has established the existence of a causal link between increased imports of the products and serious injury to the domestic industry,” according to the order.
Mr. Ngo said the issue emerged when JGSPC started failing to deliver orders of HDPE and LLDPE to its manufacturing clients.
“The lapses have created a severe shortage of raw materials that significantly disrupted the supply chain in the downstream plastic sector,” Mr. Ngo said.
“This alarming situation inadvertently compelled plastic converters to source their raw material from stable and steady foreign suppliers so that their plants will continue to operate. Many had stopped or had been operating partially due to the severe raw material shortage,” he added.
According to Mr. Ngo, the petitions will adversely affect downstream enterprises.
“About 417 plastic downstream enterprises employing more than 23,000 workers will be severely affected should the government decide in favor of the sole giant company,” Mr. Ngo said.
“More than 23,000 consumer products manufacturers, with an aggregate 343,262 workers, (accounting for) about P1.79 trillion of national output, and the 110 million Filipino consumers will be deleteriously affected by this additional cost,” he added. — Revin Mikhael D. Ochave