Peso drops further on foreign outflows

May 26, 2021 | 9:00 pm

THE PESO dropped further against the greenback on Wednesday as foreigners exited the local stock market and on expectations of improved US data, which could hasten the US Federal Reserve’s policy tightening.

The local unit closed at P48.15 versus the dollar on Wednesday, weakening by 1.5 centavos from Tuesday’s finish of P48.135, data from the Bankers Association of the Philippines’ website showed.

This was the peso’s worst close in three weeks or since its April 29 finish of P48.315 per dollar.

The peso opened Wednesday’s session at P48.125 against the dollar. Its intraday best was at P48.10, while it dropped to as low as P48.175 versus the greenback during the trading session.

Dollars traded went down to $746.88 million on Wednesday from the $1.039 billion seen on Tuesday.

“The peso [was] weaker after the large net foreign selling at the local market today amounting to $134.6 million from the $1.8 million on Tuesday,” said Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort in a text message on Wednesday.

Rising global oil prices also continued to affect the peso, he said.

Oil was little changed as traders weighed expectations of improving demand in the US against the possibility of new supply from Iran. Global benchmark Brent crude was up 5 cents at $68.70 and US crude fell 3 cents to $66.04 per barrel, Reuters reported.

Meanwhile, a trader said peso weakened due to market expectations of strong US economic data, which could cause the Fed to taper its bond purchases soon.

Federal Reserve policy makers have begun to acknowledge they are closer to debating when to pull back some of their crisis support for the US economy, even as they say it is still needed to bolster the recovery and employment, Reuters reported.

This suggestion that talking about tapering could become appropriate is a shift from just a month ago when Chair Jerome Powell said it was “not yet” time to even contemplate having that conversation.

Since their April meeting, two regional Federal Reserve bank presidents have publicly urged that the discussion begin soon, and others have highlighted the risks should a current round of price increases become a more embedded cycle of inflation.

The Fed has promised it won’t raise rates until the economy is back to full employment and it sees inflation reach 2% and poised to rise above that level.

The US central bank will get new inflation data on Friday, with forecasters expecting that prices for personal consumption goods excluding food and energy rose at a 2.9% annual rate in April. That would be the highest reading since June 1993 and beyond the Fed’s 2% inflation target.

The Fed meets next on June 15-16.

For Thursday, the trader expects the peso to move between P48.05 and P48.25 versus the dollar, while RCBC’s Mr. Ricafort gave a forecast range of P48.10 to P48.20. — IBC with Reuters

PSEi climbs on expected easing of restrictions

May 26, 2021 | 9:00 pm

THE Philippine Stock Exchange index (PSEi) closed in the green on Wednesday on hopes of a further easing in current restrictions amid cases of coronavirus disease 2019 (COVID-19) in the country, with the country’s vaccination program also progressing.

The benchmark PSEi went up by 144.53 points or 2.33% to close at 6,341.24 on Wednesday. The broader all shares index also improved by 64.61 points or 1.68% to 3,899.39.

“Market rebounded strongly [on Wednesday] in anticipation of further easing announcement from the government starting next month as infection rates continued on the downtrend, though health-care system [is] still [overwhelmed] with [the] double-digit death rate,” Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said in a text message.

Meanwhile, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the market “roared back to life”, recording its biggest daily jump in the past three months.

“This is the first time that investors were willing to come in at higher prices after just supporting most issues as they went lower in the last three months,” Mr. Mangun said in an e-mail.

“Investors may start to gain confidence and finally appreciate the positive vaccine developments,” he added.

The Health department reported 5,310 new COVID-19 cases on Wednesday, bringing the country’s total infections to 1.19 million. Active cases stood at 46,037, with a positivity rate of 13.5%.

Meanwhile, 150 deaths were logged on Wednesday, bringing the country’s death toll to 20,169. The Health department also reported 7,408 new recoveries, which brought the total to 1.13 million.

President Rodrigo R. Duterte was set to address the nation on Wednesday evening and was expected to announce new quarantine measures as current restrictions are only in effect until this week.

All sectoral indices posted gains on Wednesday. Property climbed by 89.35 points or 3.01% to 3,052; holding firms went up by 151.60 points or 2.44% to finish at 6,344.26; services improved by 31.61 points or 2.18% to 1,478.71; mining and oil gained 134.76 points or 1.46% to 9,332.64; financials moved up by 18.36 points or 1.33% to 1,394.56; and industrials increased by 66.32 points or 0.77% to end at 8,601.42.

Advancers outperformed decliners, 140 against 74, while 47 names closed unchanged.

Value turnover soared to P13.09 billion on Wednesday with 1.26 billion shares switching hands, from the P6.02 billion with 1.16 billion issues traded on Tuesday.

Net foreign selling ballooned to P6.48 billion on Wednesday from the P88.89 million in net outflows logged on Tuesday.

“The big question is whether this is the beginning of a new rally or if it is just window dressing for the end of the month,” Mr. Mangun said. “The next few trading days will reveal this to us.” — KCGV

Metro needs 52M vaccines for herd immunity

May 26, 2021 | 8:41 pm

people-crowd-facemask — PHILIPPINE STAR/ MICHAEL VARCAS

By Vann Marlo M. Villegas and Kyle Aristophere T. Atienza, Reporters

ABOUT 250,000 coronavirus vaccines should be given to residents of Metro Manila and eight priority areas daily to achieve herd immunity by November, according to a research group from the country’s premier university.

At least 51.8 million vaccine doses are needed to vaccinate 70% of the population in these areas, or about 25.9 million adults, the OCTA Research Group said on Wednesday.

It would take 17 months to achieve herd immunity if 100,000 doses were given daily, eight months for 200,000 doses daily, and almost six months for 300,000 doses daily, OCTA research fellow Nicanor Pier Giorgio Austriaco told an online news briefing.

The government seeks to achieve herd immunity — when a majority of the population becomes immune from an infectious disease, either through vaccination or a previous infection, indirectly protecting those without immunization — by Nov. 27.

“If we are going to be doing this in the six-month period, we need to have 250,000 to 275,000 doses administered per day on the average of this six month period,” Mr. Austriaco said.

“The risk for a surge is substantially diminished as we approach containment,” he added.

Also part of the priority areas aside from the capital region are Metro Cebu, Metro Davao and the provinces of Bulacan, Batangas, Cavite, Laguna, Pampanga and Rizal.

OCTA said prioritizing these areas for vaccination would “optimize the scarce vaccines to give the maximum impact.”

Mr. Austriaco said this would build “an immunity wall” around international entry ports in Manila and Cebu. This will also revitalize the economy and restart domestic tourism.

The Health department on Tuesday said it supports President Rodrigo R. Duterte’s order to prioritize Metro Manila and the eight other areas. It said 67% of the vaccine supply is given out in Metro Manila, the Calabarzon region, Central Luzon Central Visayas and the Davao region.

EASING TREND
Meanwhile, OCTA research fellow Fredegusto Guido P. David said coronavirus infections in Metro Manila had fallen by 80% since a surge that started in March.

He said the daily infection average in Metro Manila in the past seven days stood at 1,099, lower than 5,550 during the peak in late March to April.

“This is a significant improvement and obviously we want to sustain this,” he told the same briefing. “We should remind everyone that even though we have made significant improvements, the National Capital Region will always be at risk of another surge.”

Mr. David said the capital region had a virus reproduction rate of 0.53, lower than more than two at the peak in July and August last year. A reproduction rate of 1 means an infected person can infect one more. 

He also recommended that the general lockdown be retained in June. “We should try to retain the general community quarantine at this time because the cases are still significant.”

He said Metro Manila had about 400 cases daily in February, when it  was still under a general lockdown.

“It also gives us the wrong messaging to the people,” he said about relaxing the quarantine. “We want to avoid situations where people become very complacent because they feel that the situation has improved significantly.”

Mr. David said the heightened restrictions could be relaxed by increasing the capacity in businesses that have been following protocols, while making sure that transmissions do not occur. Social gatherings should also be avoided.

Meanwhile, at least a million Filipinos have been fully vaccinated against the coronavirus since the government’s vaccination drive started on March 1, Health Undersecretary Myrna C. Cabotaje told a separate online news briefing.

Of the total, 581, 797 were health workers, while 195,952 were seniors. More than 250,000 seriously ill people and 535 essential workers had also been fully vaccinated, she added.

Ms. Cabotaje said about 3.4 million people have not completed their vaccination, having received only their first dose.

About 22.4 million people were essential workers whose vaccination would start next month, she said, citing data from the National Economic and Development Authority.

About 8.5 million people were considered poor, she added.

The government earlier said essential workers and indigents would be vaccinated once the country’s supply of vaccines stablizes.  

Rabindra Abeyasinghe, the World Health Organization’s representative in the Philippines, earlier said the country would take delivery next month of as many as two million doses of the vaccine made by Pfizer, Inc. under a global initiative for equal access.

About two million doses of the vaccine made by AstraZeneca Plc would also arrive in June, he said.

The Philippines may receive next month about 4.5 million more doses of the vaccine made by Sinovac Biotech, Ltd., vaccine czar Carlito G. Galvez, Jr. earlier said.

Meanwhile, Ms. Cabotaje said more than a million doses of the two million AstraZeneca vials that the Philippines received earlier this month under the global initiative had been given out.

About 500,000 doses that will expire on July 30 would be given as second doses. The vials reserved as first doses will expire on June 30.

House OK’s easing ‘Cha-cha’ ownership limits

May 26, 2021 | 8:40 pm

The House of Representatives on Wednesday night approved on second reading a resolution seeking to ease economic restrictions in the 1987 Constitution.

Congressmen will amend the three-decade-old Charter by inserting  the phrase “unless otherwise provided by law” in clauses that limit foreign ownership in some sectors.

This will give lawmakers the leeway to pass laws that will lift the Charter change (Cha-cha) limits.

The House committee on constitutional amendments endorsed the measure in plenary in January. Congressmen have prioritized idebates on the measure since sessions resumed on May 17 after a two-month recess. — Gillian M. Cortez

5,310 more people get infected; total deaths at 20,169, says DoH

May 26, 2021 | 8:39 pm

THE DEPARTMENT of Health (DoH) reported 5,310 coronavirus infections on Wednesday, bringing the total to 1.19 million.

The death toll rose by 150 to 20,169, while recoveries increased by 7,408 to 1.13 million, it said in a bulletin.

There were 46,037 active cases, 1.7% of which were critical, 92.5% were mild, 2.1% did not show symptoms, 2.2% were severe and 1.51% were moderate.

It said six duplicates had been removed from the tally, four of which were tagged as recoveries. Eighty-six recoveries were reclassified as deaths. Four laboratories failed to submit data on May 24, DoH said. About 12.3 million Filipinos have been tested for the coronavirus as of May 24, according to the agency’s tracker website.

The coronavirus has sickened about 168.5 million and killed 3.5 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 150.1 million people have recovered, it said.

Meanwhile, a suspect in the illegal sale of vaccines and vaccination slots in Mandaluyong City was surrendered by his father, a village councilor, to Mandaluyong City Mayor Carmelita Aguilar Abalos.

Ms. Abalos and her husband, Metropolitan Manila Development Authority Chairman Benjamin de Castro Abalos, Jr. presented the suspect to media at a news briefing on Wednesday.

Hours earlier, the Criminal Investigation and Detection Group and the Anti-Cybercrime Group identified the suspect as 22-year-old Kyle Bonifacio, who allegedly offered vaccines and a vaccine slot to his high school friend through social media.

The suspect said he was innocent. “I have no connection to the local government unit because I am just a young student,” he told the news briefing in Filipino.

The suspect will be turned over to police for further investigation, the MMDA chief said.

Also on Wednesday, national police chief Guillermo T. Eleazar said he would summon people involved in the illegal sale of vaccination slots in the capital region. — Vann Marlo M. Villegas and Kyle Aristophere T. Atienza

Philippines keeps ban on worker deployment to Israel despite truce

May 26, 2021 | 8:38 pm

A PHILIPPINE ban on worker deployment to Israel stands despite a ceasefire between the Middle Eastern country and Hamas, according to the Labor department.

Local authorities would keep watching the geopolitical situation in Israel and Gaza before sending more workers, Labor Secretary Silvestre H. Bello III told an online news briefing on Wednesday.

“If the situation gets better, let us start processing,” he said.

The agency may start deploying Filipino workers to Israel starting next month, Mr. Bello said. About 400 workers were supposed to be deployed to Israel this month.

“Give it another two to three weeks,” he said, adding that the government would like to see if Israel’s ceasefire deal with Palestinians would be followed.

Israel and Hamas both claimed victory last week after they ended 11 days of fighting where more than 200 people died and caused widespread destruction in the Gaza Strip, Reuters reported.

Humanitarian officials said the damage to Gaza would take years to rebuild, according to the news wire.

Palestinian officials put the rebuilding costs at tens of millions of dollars, while economists said the fighting could curb Israel’s economic recovery from the coronavirus pandemic, Reuters said.

Hamas, the Islamic militant group that seeks to destroy Israel, needs to rebuild a territory that is already suffering from poverty, widespread job loss and a raging coronavirus pandemic.

Mr. Bello said the situation seems to have improved after the ceasefire.

The Labor department imposed the deployment ban last week, which the presidential palace backed. No Filipino death had been reported, he added. — Gillian M. Cortez

Russia eyes investments in Philippines

May 26, 2021 | 8:37 pm

RUSSIAN companies are looking at investing in Philippine oil exploration and the construction of traditional and nuclear power plants, its ambassador said on Tuesday.

Companies in the former Soviet Union are looking at the use of nuclear energy for “peaceful purposes” such as in fighting cancer and extending the shelf life of fresh fruits and vegetables, Russian Ambassador to the Philippines Marat Pavlov told an online news briefing.

Russia would not  interfere in Philippine internal affairs, while pursuing a “mutually beneficial partnership,” he told the briefing in celebration of the 45^thanniversary of Philippine-Russian diplomatic ties.

“We appreciate the atmosphere of trust,” Russian Deputy Foreign Minister Igor Morgulov told the briefing, adding that he expects Russian tourist traffic to the Philippines to reach a record once the coronavirus pandemic ends.

He said fast-tracking Philippine bureaucratic procedures in agriculture would increase bilateral trade.

The two countries were also discussing military procurement Mr. Morgulov said, adding that “Russia does not impose political conditionalities.”

Meanwhile, he said Russia’s shipment of its Sputnik V vaccines to the Philippines “will be gradually increased monthly to 20 million doses by the end of the year.” 

Philippine Trade Assistant Secretary Allan B. Gepty said there are opportunities for cooperation in pharmaceuticals, shipbuilding, information and communications technology and infrastructure.

He added that stronger Russian presence in the Philippines could pave the way for a stronger partnership between the Association of Southeast Asian Nations (ASEAN) and the Eurasian Economic Union. 

Philippine Ambassador to Russia Carlos D. Sorreta said the Philippines and Russia are discussing opening more opportunities for migrant Filipino workers in Russia, which needs more skilled workers.

The two governments are also in talks to set up safeguards to protect Filipinos there, he said. — Bianca Angelica D. Añago

Lawmaker calls for probe on condition of gig economy workers

May 26, 2021 | 8:36 pm

Hontiveros-Risa-SENATEgovph — SENATE.GOV.PH

A SENATOR on Wednesday filed a resolution calling for an investigation on the working conditions in the “gig-economy,” which covers delivery riders and other freelancers.

Senator Risa N. Hontiveros-Baraquel filed Senate Resolution No. 732 to address “reports of unfair working conditions,” especially during the coronavirus pandemic, and look into their employment benefits and other forms of social protection.

Gig economy under the resolution is defined as “new technology-enabled forms of work, often temporary and flexible, utilized by companies that rely primarily on independent contractors and freelancers.”

Among the issues the investigation aims to address is the practice of classifying gig economy workers as “independent contractors, and not employees,” which does not automatically qualify them to healthcare benefits, days off, and 13^th month and retirement pay, among others, under the labor law.

“Without laws that regulate and define the rights of our gig economy workers, they will certainly be exposed to abuse and exploitation,” Ms. Baraquel said in a statement.

The senator cited a report by Payoneer in 2019 where the country ranked 6^th in the world as the fastest-growing market for the gig-economy.

Ms. Baraquel also urged policy makers to create a permanent social safety net for all workers and “break out of the contractor-employee binary.” — Vann Marlo M. Villegas

Police ready to give Justice dep’t more case records for EJK review

May 26, 2021 | 8:35 pm

Police-chief-Eleazer-Guillermo-PNPgovph — PNP.GOV.PH

THE JUSTICE department will review more cases that might have involved extra-judicial killings (EJK), including police anti-drug operations, according to an official.

“We will be reconciling the numbers. There could be a few more,” Justice Undersecretary Adrian F. Sugay told reporters on Wednesday.

Police chief Guillermo Lorenzo T. Eleazar said they are ready to turn over to the Justice department all such records upon request.

“We will provide them with this information,” Mr. Eleazar said in an interview on ABS-CBN news channel.

Justice Secretary Menardo I. Guevarra, who earlier this week said they will be looking into 61 out of the 7,000 police case records, said they are ready to expand their investigation.

“If the PNP (Philippine National Police) chief has said that the review panel may also review these other cases, we will be very happy to do so, as this is what we had wanted in the first place,” Mr. Guevarra told reporters Wednesday.

The 61 cases were those where “clear liability was established” based on a review and evaluation by the police Internal Affairs Service.

National Union of Peoples Lawyers President Edre U. Olalia, in a statement on Wednesday, said it would be best to “completely and totally open any and all files, documents, records, and uncontaminated evidence to an impartial scrutiny by an independent body, with no other purpose but to arrive at the truth in all its g(l)ory, to render justice to the victims, and to stop the barbaric impunity that has not solved the drug menace to this day.” — Bianca Angelica D. Añago

Judges face higher fines for misconduct, inefficiency

May 26, 2021 | 8:35 pm

JUDGES found guilty of misconduct or inefficiency now face higher fines of up to P200,000 after the Supreme Court amended Rule 140 of the Revised Rules of Court.

Court Administrator Jose Midas P. Marquez said the recommendation to adjust the penalties was made “in order to be consistent and commensurate with the prevailing Salary Schedule of judges and personnel of the Judiciary.”

Under the court’s resolution dated May 16 and made public Wednesday, judges found guilty of a serious charge may either be dismissed, forfeited from receiving benefits, and disqualified from public service; suspended for three to six months; or pay a fine “of more than P100,000 but not exceeding P200,000.”

The previous fines were set at P20,000 to P40,000.

For a less serious charge, the penalty is three months suspension or a fine of “not less than P35,000 but not exceeding P100,000.”

Judges found guilty of a light charge may be sanctioned with censure, reprimand, or admonition with warning and/or may be fined “not less than P1,000 but not exceeding P35,000.”

The changes take effect on May 31. — Bianca Angelica D. Añago

Bill creating local anti-drug abuse councils up for Senate plenary

May 26, 2021 | 8:35 pm

SEVERAL Senate committees approved a bill that will establish Anti-Drug Abuse Councils in every local government unit.

Senator Ronald M. dela Rosa, chair of the committee on public order and dangerous drugs, raised to the plenary Senate Bill No. 2215 or the Anti-Drug Abuse Councils Law.

“To address the country’s problem on drugs entails tapping into the wisdom and experience of those on the ground, those who can competently provide political judgment: our Local Government Units,” he said in his sponsorship speech.

“At the same time, it demands a systematic and institutional response,” he added.

The committee report was signed by the committees on public order and dangerous drugs, local government, and finance.

If signed into law, local governments will be mandated to establish the councils and formulate and implement the Local Anti-Drug Abuse Plan of Action.

The Department of the Interior and Local Government will monitor the implementation. — Vann Marlo M. Villegas

PCG commander rallies troops in Kalayaan Island: ‘West Philippine Sea is ours!’

May 26, 2021 | 8:34 pm

KalayaanIsland-Palawan-coastguards-PCG — PCG

THE PHILIPPINE Coast Guard (PCG) commandant visited Kalayaan Island on Tuesday where he rallied troops to protect the West Philippine Sea and proudly fly the flag.

“These are the two main objectives that we need to accomplish — stepping up our presence and flying the Philippine flag with a sense of pride — because the West Philippine Sea is ours!,” Admiral George V. Ursabia, Jr. was quoted as saying in a statement released by the PCG on Wednesday.

Mr. Ursabia, however, acknowledged that Kalayaan Island, which is part of the Spratly Islands, is a disputed area.

“We should not forget that it is also a contested area. There are others claiming that it is also theirs. But of course, we will not surrender the territory. It is ours! Hence, we have to do our part in a peaceful and rules-based manner,” he said.

The PCG along with the Bureau of Fisheries and Aquatic Resources have a combined five vessels deployed in West Philippine Sea for maritime and security operations.