Metro Retail Stores Group, Inc. announces schedule of annual stockholders’ meeting via remote communication

September 2, 2020 | 12:01 am

How PSEi member stocks performed — September 1, 2020

September 2, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, September 1, 2020.

PSEi drops on manufacturing data, China issues

September 1, 2020 | 9:00 pm

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX continued to drop on Tuesday, marking its fourth straight day of decline, on lower local manufacturing data and geopolitical tensions involving China.

The 30-member Philippine Stock Exchange index (PSEi) lost 84.94 points or 1.44% to close at 5,799.24, while the broader all shares index shaved off 33.32 points or 0.94% to end at 3,501.26.

The market was closed on Monday in observance of National Heroes’ Day.

“Last-minute profit taking extended the local bourse’s decline…. The pessimism in (Tuesday’s) trading can still be attributed to the worries over the local economy,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.

He said investors took cues from the release of August manufacturing data, which showed that factory activity in the country continued to fall for a sixth consecutive month.

“Our manufacturing figure somehow shows that our economy remains challenged due to our quarantine measures in place which were even tightened in some areas in Luzon last August,” Mr. Tantiangco said.

“Anti-China tensions” also influenced the downward pull of the PSEi, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message. The Asian economic giant is currently in conflict with Australia, the United States and India, each for different reasons.

Tensions with Australia were caused by the detention of an Australian journalist who works as a television anchor in China, news wires reported Monday.

Meanwhile, friction with the United States was fanned by the announced crackdown on Chinese apps by Washington as told by Peter Navarro, US President Donald Trump’s trade adviser, to Fox Business.

Beijing’s dispute with India likewise continued after China called on the country to withdraw its troops that were allegedly crossing their shared border in the Himalayas illegally.

Back home, half of the sectoral indices ended the session with losses: holding firms fell 130.73 points or 2.14% to 5,969.17; services dropped 29.38 points or 1.98% to 1,453.55; and property slid 47.71 points or 1.76% to 2,662.89.

The three indices that gained were mining and oil, which rose 214.59 points or 3.57% to 6,219.66; industrials, which improved 57.43 points or 0.73% to 7,848.69; and financials, which picked up 7.43 points or 0.65% to 1,137.13.

Value turnover on Tuesday stood at P6.86 billion, down from P8.26 billion in the last session. Some 1.87 billion issues switched hands.

Decliners outpaced advancers, 99 against 85, while 57 names ended unchanged.

Foreign investors remained sellers, but net outflows were reduced to P261.55 million from P1.63 billion in the last session.

Peso inches up on Fed framework

September 1, 2020 | 9:00 pm

THE PESO inched higher on Tuesday on the US central bank’s new policy framework and despite data showing the local manufacturing sector slowed in August.

The local unit closed at P48.48 versus the greenback on Tuesday, inching up from the P48.485-a-dollar finish last Friday, data from the Bankers Association of the Philippines showed.

Markets were closed on Monday for National Heroes’ Day.

The peso opened Tuesday’s session at P48.48 against the greenback. It hit a low of P48.545 while its intraday best was at P48.44 per dollar.

Dollars traded sank to $819.1 million on Tuesday from Friday’s $1.191 billion.

A trader said demand for dollars dropped following the US Federal Reserve’s announcement of a new policy framework last week.

“The local currency might gain more strength as statements from various US Federal Reserve officials are likely to provide more cues to the Fed’s new inflation strategy,” the trader said.

Meanwhile, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the peso strengthened as the outlook for the local manufacturing industry indicates little need for imports.

“Weaker Philippine manufacturers’ data would eventually slow down imports and the demand for dollars to pay for the imports,” Mr. Ricafort said.

Manufacturing activity worsened in August for the sixth month in a row, as the government placed Metro Manila and nearby provinces under a stricter lockdown, pulling down production and new orders, IHS Markit said in its latest survey.

The IHS Markit Philippines Manufacturing Purchasing Managers’ Index (PMI) slid to 47.3 last month from 48.4 in July to “signal a stronger deterioration in operating conditions,” it said in a statement. This was higher than the record low of 31.6 in April but still below the 50-neutral mark.

A PMI reading below 50 signals deterioration in operating conditions compared to the preceding month, while a reading above 50 denotes improvement.

For today, Mr. Ricafort said he expects the peso to trade within P48.40 to P48.55 versus the dollar, while the trader sees it moving at the P48.40 to P48.60 levels.

PESO AMONG STRONGEST IN ASIA
The Philippine peso maintained its position among the strongest currencies in Asia amid the coronavirus pandemic, buoyed by benign inflation and a surfeit in its balance of payments (BoP), the Department of Finance (DoF) said on Tuesday.

The DoF said the peso’s Tuesday close is up by 4.5% from the P50.80-per dollar finish on Jan. 2.

It said the Philippine peso, the Japanese yen, the Taiwanese dollar and the Chinese yuan are the only currencies that “remained firmed against the American greenback while most other Asian currencies have weakened” year to date.

In a forum last month, Finance Secretary Carlos G. Dominguez III attributed the strength to mild inflation rate and the favorable BoP position.

But while a strong peso means cheaper imports and lower borrowing costs, Philippine Chamber of Commerce and Industry (PCCI) President Benedicto V. Yujuico said it is not “the greatest thing in the world” and urged the government to “strike a balance” to consider its impact on some sectors, including the exporters.

“I want to ask the question, what is a strong peso good for?… There are no easy answers particularly during this time of crisis. We have to examine it very carefully, we have to strike a balance here,” Mr. Yujuico said during the 29^th Visayas Area Business Conference forum last week.

“I just want to ventilate that a strong peso is probably something that we have to think about very carefully and reconsider at this time,” he added.

Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation, Inc. (Philexport) said the strong peso is “really harmful” for exporters and overseas Filipino workers and he would not “encourage strong peso unless it is extremely necessary.”

“It (policy decision) is the call of the Bangko Sentral ng Pilipinas. There’s a lot of things that can be done but it is the policy that we will not encourage (to favor) strong peso,” he said by telephone on Tuesday. — K.K.T. Jose and B.M. Laforga

Senate committee recommends charges vs top PhilHealth execs

September 1, 2020 | 8:10 pm

THE SENATE committee that investigated the alleged widespread corruption in the Philippine Health Insurance Corp. (PhilHealth) has recommended the filing of criminal and administrative charges against those involved in irregularities, including top ranking officials.

The Senate committee of the whole is also expected to propose legislation that will amend current laws to strengthen and improve the PhilHealth system.

Senate President Vicente C. Sotto III, in his sponsorship speech, said Health Secretary and PhilHealth Board Chairman Francisco T. Duque III, and recently resigned PhilHealth president and chief executive officer Ricardo C. Morales are among those liable for malversation and illegal use of public funds and violation of the anti-graft law.

Their liability involves the “improper and illegal” implementation of the Interim Reimbursement Mechanism(IRM), a cash advance system that is intended to help medical institutions maintain operations, especially during emergency situations such as the ongoing coronavirus disease 2019 (COVID-19) crisis.

“PhilHealth estimated P3.3 billion for the cost of COVID-19 for the entire 2020. Pero, ang budget na nilagay nila ay (But the budget they allocated was) P26.8 billion (and) as of June 9, 2020, P14 billion na ang na- (has been) released,” Mr. Sotto said.

Mr. Sotto said there are irregularities in the P14 billion released so far.

Other PhilHealth officials who will be facing the same charges include Senior Vice Presidents Renato Limsiaco and Israel Francis Pargas, and Executive Vice President and Chief Operating Officer Arnel de Jesus

Senior Vice President Jovita Aragona and Acting Senior Manager Calixto Gabuya are also found liable for corrupt practices, concealment of documents, and violation of procurement law, in relation to the overpricing of information technology supplies.

The committee report further recommends that the health care institutions that received the questionable cash advances should immediately liquidate the used amounts.

The Senate panel also recommended that top officials of the agency, including regional vice presidents, resign from their posts.

Meanwhile, President Rodrigo R. Duterte ordered the reshuffling of PhilHealth officials, particularly the regional heads, as he announced the appointment of former National Bureau of Investigation (NBI) Director Dante A. Gierran as the state insurer’s new top executive.

“You know, if they are there for so long a time, the element of familiarity always enters the picture. Iyan ang mahirap diyan (That is where the problem comes in),” Mr. Duterte said in a televised talk and meeting with some of his top officials late Monday.

Mr. Gierran, who was present during the meeting, said, “Restoring the trust and confidence of our people to PhilHealth is equivalent to restoring the trust and confidence to our government,”— Charmaine A. Tadalan and Gillian M. Cortez

Over 3,000 daily COVID-19 case trend continues

September 1, 2020 | 8:09 pm

THE DEPARTMENT of Health (DoH) logged another 3,483 new coronavirus disease 2019 (COVID-19) infections on September 1, bringing the total cases to 224,264.

The death toll rose by 39 to 3,597 while recoveries increased by 464 to 158,012, according to Tuesday’s bulletin.

There were 62,655 active cases, 91.3% of which were mild, 6.3% did not show symptoms, 1% were severe, and 1.4% were critical. Of the new cases, 1,824 were from Metro Manila, 223 from Laguna, 184 from Cavite, 161 from Rizal, and 126 from Batangas.

Metro Manila also had the highest number for newly reported deaths with 18, followed by Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) region with nine, five from Western Visayas, and one each from Cagayan Valley, Central Luzon, Bicol, Central Visayas, Northern Mindanao, Bangsamoro Autonomous Region in Muslim Mindanao, and a repatriate.

More than 2.4 million individuals have been tested for the disease, according to the Health department.

President Rodrigo R. Duterte on Monday announced that Metro Manila will remain under the general community quarantine (GCQ) category until the end of September, along with the provinces of Bulacan and Batangas, and the cities of Tacloban and Bacolod.

Iligan City is under stricter lockdown or modified enhanced community quarantine while the rest of the country is under the more relaxed modified GCQ. — Vann Marlo M. Villegas

Regional Updates (09/01/20)

September 1, 2020 | 8:06 pm

Bacolod revives quarantine pass, border checkpoints

THE BACOLOD City government is reviving the quarantine pass requirement from September 3 to 15 to restrict the movement of people as coronavirus disease 2019 (COVID-19) cases surge. Bacolod is one of the five areas in the country, including Metro Manila, that have been placed under a stricter lockdown category compared with the rest of the country until the end of the month. In an executive order issued Tuesday, Mayor Evelio R. Leonardia said the reimposition of quarantine passes is among the recommendations pushed by various sectors. “Those from the medical sector were most vocal and persistent in recommending the more stringent rules… in order to arrest, contain, and mitigate, if not eliminate the continuing spike in COVID-19 infections,” the mayor said in his order. Apart from the quarantine pass required to purchase essential items, stricter border checkpoints will also be set up as Bacolod serves as the provincial center of Negros Occidental. As of August 31, Bacolod recorded 1,285 confirmed cases, with 794 active.

National COVID-19 task force orders strict localized lockdowns

THE NATIONAL task force on the coronavirus response has ordered local governments to strictly implement pocket lockdowns as a strategy for containing community transmissions. In a resolution issued Sept. 1, with most parts of the country already under eased quarantine rules, the Inter-Agency Task Force for the Management of Emerging Infectious Diseases listed specific provinces and cities that should “ensure localized actions are implemented.” Many local governments are already implementing this scheme, with temporary closures being imposed on a barangay, street, or other clusters that record confirmed coronavirus cases. — Gillian M. Cortez

Nationwide round-up

September 1, 2020 | 8:05 pm

Educators join opposition to anti-terrorism law

EDUCATORS from various public and private institutions asked the Supreme Court to declare unconstitutional the law which expanded the definition of terror crimes in the country. The petitioners include teachers from various universities and educators’ groups. In a 77-page lawsuit, petitioners said they are covered by the vague definition of terrorism under the law and they will suffer from its “chilling effects.” They also raised concern over the provision criminalizing possessing objects connected with terrorism. “This kind of environment would add another layer of chilling effect on academics, educators and writers such as petitioners to limit their ideas and criticisms that they may put into writing or in choosing materials for their students to read in order to achieve academic potential and excellence in the academe,” the petition read. They also said that the Anti-Terrorism Act, which took effect July 18, violates academic freedom, adding that it will “embolden security forces to repress, persecute, or even prosecute progressive teachers.” The educators also questioned the provision allowing warrant less arrest and detention of arrested individuals beyond the allowed period in the Constitution. — Vann Marlo M. Villegas

Senator lashes at carabao agency over misguided priorities

SENATOR Cynthia A. Villar lashed at the Philippine Carabao Center (PCC) for its seemingly misguided priorities and failure to meet goals. At a hearing Tuesday on the state of the dairy industry in the Philippines, PCC Executive Director Arnel N. del Barrio reported that they will “actively participate” in the milk feeding programs of the Department of Education (DepEd) and the Department of Social Welfare and Development (DSWD), with some P28 million allocated for the initiative. Ms. Villar, however, pointed out that the PCC is supposed to just serve as milk supplier. “You’re not supposed to feed children, they will buy from you. It’s the budget of DepEd and DSWD,” said the senator who chairs the agriculture, food, and agrarian reform committee. She also questioned PCC’s performance on translating research work into applicable projects that are supposed to improve the country’s milk production. “Paano mo ngayon i-a-apply ‘yang research na ‘yan kung hindi ka nag-pu-produce ng carabao at hindi nag-pu-produce ang carabao ng more milk? (How are you now going to apply the research, if you’re not producing carabaos and carabaos are not producing milk?),” she asked. — Charmaine A. Tadalan

Human rights group asks High Court to review protection plea

HUMAN rights group Karapatan asked the Supreme Court to review and grant its appeal for protection following the killing of community health worker Zara Alvarez last month in Negros Occidental. In a 12-page manifestation, Karapatan said the red-tagging and terrorist labelling of human rights defenders in the country led to “harassment, incarceration on false charges or even killings” in the past years. “With respect, the causality between Alvarez’s inclusion in the rogues gallery of ‘communist terrorists’ and her dastardly killing is too palpable to ignore. Her death proves that being subjected to red- tagging and terrorist-labeling constitutes an actual threat, and not merely one of supposition or with the likelihood of happening,” Karapatan said. The group said a favorable ruling from the court would help prevent similar killings in the future. Ms. Alvarez was among more than 600 names initially listed by the Department of Justice to be tagged as terrorists in 2018. The list was eventually trimmed down to two names. She was also a witness for the petition for amparo and habeas data, seeking protection from threats by the government, which was denied by the Court of Appeals last year. Karapatan cited that she was the group’s second witness who got killed, after Ryan Hubilla who was shot dead in June 2019. — Vann Marlo M. Villegas

DTI tells public to buy face masks online from reputable sellers

THE TRADE department warned the public against buying face masks from shady online sellers as they risk losing consumer rights and protection. Trade Secretary Ramon M. Lopez, in a radio interview on Tuesday, said people should buy from “reputable drugstores or online platforms” to ensure traceability should the product turn out to be defective. He said registered businesses and digital platforms could be made to account under consumer laws. The Bureau of Customs (BoC) last month seized P80 million worth of fake face masks along with cigarettes in Bulacan. Under nationwide quarantine guidelines, people are required to wear face masks outside of residence. — Jenina P. Ibañez

SAP takes up over half of pandemic spending

September 1, 2020 | 6:58 pm

THE government’s pandemic spending topped P389 billion as of late August, with emergency cash aid to vulnerable communities accounting for about 54% the total, the Department of Budget and Management (DBM) said.

In a briefing Tuesday, Budget Secretary Wendel E. Avisado said the estimate of spending on pandemic-containment measures covered the period to Aug. 28.

“Makikita natin umabot sa P389.06 billion ang nagagasta ng ating pamahalaan as of 28^th August, (The government’s expenditure was P389.06 billion as of Aug. 28),” he said.

The Social Amelioration Program (SAP) of the Department of Social Welfare and Development disbursed P211.06 billion. The SAP was two months’ worth of financial aid to about 23 million households affected by the lockdown.

The Small Business Wage Subsidy (SBWS) of the Department of Finance and administered by the Social Security System accounted for P51 billion. The SBWS was directly injected into employers to encourage them to keep their workers.

The Department of Health took up P48.98 billion for health workers’ special risk allowances and hazard pay and to procure personal protective equipment and COVID-19 (coronavirus disease 2019) testing kits.

Pandemic funding is authorized under the Bayanihan to Heal as One Act, which gave the President the power to repurpose items in the national budget for emergency spending.

Mr. Avisado said the DBM is ready to release funds for the proposed Bayanihan II bill, which funds the government’s economic recovery strategy. The legislation, formally known as the Bayanihan to Recover as One bill, is awaiting the signature of President Rodrigo R. Duterte. It is currently with the office of the Executive Secretary for review.

“Nakahanda na kami (We are prepared) to release P140 billion, more or less, to support the Bayanihan II bill,” he said. — Gillian M. Cortez

Laptop, tablet SRP scheme could be based on device memory

September 1, 2020 | 6:57 pm

A SUGGESTED retail price (SRP) scheme for laptops and tablets could be based on memory capacity, though trade officials are wary of such “one-size-fits-all” criteria for imposing price ceilings on such devices, which have seen demand soar as schools shift to online lessons.

The Department of Trade and Industry (DTI) is still studying an SRP scheme and hopes to avoid inappropriate price categories because devices have complex technical specifications, Trade Secretary Ramon M. Lopez said in a radio interview Tuesday.

Supply has not been able to keep up with the demand generated by online schooling and work from home. ASUS Philippines has estimated that the market for such devices is underserved by up to 40%.

The DTI is set to announce its price ceilings on laptops and tablets this week.

“Kung kakailanganin man (ng SRP), kaya ito’y pinag-aaralan, ay maglalagay tayo dun sa pinaka-basic features. Let’s say ilang gig ‘yung hardware, ilang gig ‘yung RAM niya, para at least ‘yung basics lang, may control tayo diyan (If an SRP is to be imposed, we will base it on the most basic features like gigabytes of memory),” Mr. Lopez said.

However, Mr. Lopez noted that the market is varied with many options for consumers.

“Marami rin mga pagpipilian (There is a lot of choice)” he said, noting the wide range of prices.

The Computer Dealers Distributors Association of the Philippines (COMDDAP) said that the SRP could depend on the configuration of the devices. Top laptop brands usually sell for at least P30,000, COMDDAP President William Chua said in an e-mail last week.

“Unknown or clone brands (are) usually lower by 10%. The risk is the (lower) quality,” he said. — Jenina P. Ibañez

Pandemic drop-outs bring school population below 2011-2012 levels

September 1, 2020 | 6:56 pm

THE high drop-out rate in the K-12 system has reset the school population to levels not seen in nearly a decade, economists from Ateneo de Manila University and the University of the Philippines said.

In a policy briefing, “Urgent Need to Address Massive Drop-off in K-12 Enrolment,” Geoffrey M. Ducanes and Edita A. Tan of the Ateneo de Manila University and University of the Philippines Diliman, respectively, added that those discontinuing their schooling are less likely to resume their studies and will experience long-term impacts on their future earning capacity.

“Those who drop out this school-year are likely to have a reduced chance of returning to school even after the pandemic ends,” the authors said.

Even students who return to school next year will have fallen behind on key subjects like mathematics, they said.

According to the Department of Education, K-12 enrolment for the 2020-2021 academic year declined 14%, equivalent to 3.8 million pupils, to 23.2 million.

“This sets back enrollment levels in basic education by a decade, or to less than what it was in (school year) 2011-12, and increases the number of out-of-school children in the K-12 age-range about five-fold to around five million,” Mr. Ducanes and Ms. Tan said.

It said private schools have been hit disproportionately as parents’ finances suffered, with total enrollment plunging 60%, reflecting an exodus to public schools.

The economists recommended the expansion and enhancement the Pantawid Pamilyang Pilipino program, a cash transfer scheme for low-income families.

“Expansion means the coverage of more households, particularly those that have recently fallen into poverty,” it said.

“Enhancement means an increase in the amount of cash transfer provided to poor households conditional on the enrollment of their child members,” it added.

Using this approach, the government can increase enrollment and provide cash support for those facing hunger due to the crisis.

They also backed continuing school-based feeding programs for undernourished students in pre-school and elementary. The program provides rations for delivery to households or pick-up by parents. Similar programs are in place in Colombia and Congo, with access to meals seen as a motivation for parents to keep their children in school.

They recommended building internet hubs in poor barangays as well as supplying devices and mobile data allowances. — Luz Wendy T. Noble

Power sector wants subsidies cut off for non-poor electricity consumers

September 1, 2020 | 6:54 pm

THE energy industry called for a review of the government’s policy subsidizing poor consumers after indications that some non-poor households with low power usage are benefitting from the aid.

In a Senate energy committee hearing, the industry backed Senate Bill No. 1583, which extends for another 20 years the subsidy policy to so-called lifeline consumers, or those consuming below 100 kilowatt-hours of power.

However, it wanted to resolve the issue of non-poor customers receiving subsidies for low power consumption.

An in-house study by the office of Senator Sherwin T. Gatchalian, the proponent of the measure, revealed that around 3.45 million household beneficiaries that are not necessarily poor got an estimated P973 million from the collected lifeline subsidy component in 2019 bills alone.

The P973 million forms a significant portion of the P2.195 billion in total subsidies generated from all power utilities in the period.

“The spirit of this lifeline rate subsidy is to give it to our poor constituents, not the ones living in condominiums and other high-end residential areas,” the legislator said.

The lifeline rate is set by the Energy Regulatory Commission (ERC), which also determines the group of consumers who will benefit from the subsidy based on their low usage, said Alvin M. Ortega, the commission’s chief energy regulation officer.

For Metro Manila consumers, non-lifeline households are charged 1% of their total bills or six cents per kilowatt-hour of consumption.

“There have been leakages that were detected throughout the years. I am just surprised after 20 years, we haven’t plugged these leakages,” Mr. Gatchalian said.

Section 73 of the Republic Act. No. 9136, or the Electric Power Industry Reform Act, authorizes a cross-subsidy mechanism, which will end next year after being extended in 2011. It was first enforced in 2001.

The ERC told Mr. Gatchalian it will come up with a report addressing the matter.

The Department of Energy (DoE), which also expressed its support for the extension of the subsidy, said there must be “accurate” targeting of beneficiaries eligible under the usage threshold set by the government.

“We want to recommend… a provision that provides a mechanism for the accurate targeting of the true beneficiaries of this lifeline rate program,” said Mario A. Marasigan, director of the DoE’s Electric Power Industry Management Bureau.

“Only end-users falling within the nationally or regionally accepted level of poverty threshold as provided by the National Economic and Development Authority (NEDA) or other duly-authorized government agencies shall be qualified for the lifeline rate,” he added.

Asked about how to resolve discrepancies in the subsidy allocation, Mr. Marasigan said the poverty level of power consumers should be considered. He said the urban poor should benefit from the aid, while those people in high-income residences should pay for the lifeline rate.

Consumer group Laban Konsyumer proposed that the government itself should cover the cost of the subsidy.

The National Electrification Administration (NEA) took the position that electricity aid be a component of the conditional cash transfer program. The government can allocate P3.5 billion each year for such a subsidy, NEA Administrator Edgardo R. Masongsong said.

According to the Philippine Rural Electric Cooperatives Association, there were about 3.6 million poor customers in the countryside as of March.

The association of 121 electric cooperatives proposed reducing the usage threshold to 50 kilowatt-hours to qualify as a lifeline consumer.

Manila Electric Co., the country’s biggest distribution utility, is also in favor of reviewing the lifeline threshold, according to Lawrence S. Fernandez, its utility economics head.

Mr. Gatchalian, who heads the energy committee, asked the DoE and ERC to conduct a study and map out a strategy for preventing the flow of subsidies to unintended beneficiaries.

There were three million households earning less than P10,756 per month in 2018 or about 12% of all Filipino families, according to the Philippine Statistics Authority. — Adam J. Ang