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Peso likely to rise on fewer virus cases

THE PESO may continue climbing versus the dollar this week as the economy further reopens due to expectations of fewer cases of the coronavirus disease 2019 (COVID-19) in the country and strong liquidity.

The local unit closed at P48.48 versus the dollar on Friday, rising by 12 centavos from its P48.60 finish on Thursday, data from the Bankers Association of the Philippines showed.

Week on week, the peso appreciated by 14.5 centavos from its P48.625-per-dollar finish on Oct. 16.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso rose after the continued decline in COVID-19 cases.

Meanwhile, a trader said the peso was stronger as the United States government was expected to advance talks on a stimulus to combat the impact of COVID-19.

Mr. Ricafort said over the weekend that the peso may continue to strengthen versus the dollar this week as the decreasing trend in coronavirus cases could convince the government to further relax quarantine measures in Metro Manila and nearby areas.

“Major catalysts include any additional measures to further reopen the economy, such as possible relaxation of Metro Manila’s general community quarantine to a modified version as early as November or December,” Mr. Ricafort said in an e-mail.

The government earlier this month allowed persons aged 18 to 65 to leave their homes for non-essential travel. It also shortened curfew hours in Metro Manila cities.

A trader said the local currency will likely rise further as the easing of restrictions could boost business activity.

Mr. Ricafort said other catalysts for the peso this week will include data on domestic loans and the country’s balance of payments.

For this week, Mr. Ricafort sees the peso moving from P48.35 to P48.60 versus the dollar, while the trader expects it to range from P48.40 to P48.60. — KKTJ

Profit taking expected after last week’s rally

By Denise A. Valdez, Senior Reporter

THE MAIN INDEX may start declining this week after five straight days of increases that brought it to 6,484.06 on Friday.

The benchmark Philippine Stock Exchange index (PSEi) gained 139.43 points or 2.19% in the last trading session, maintaining a weeklong climb that raised the index by 585.59 points or 10% on a weekly basis.

Value turnover grew 54% to an average of P8.5 billion. Foreign investors became net sellers, posting an average net inflow of P4.12 million from the prior week’s average net outflow of P726.6 million.

“The local market staged a strong rally which brought it up by 9.93% week-on-week. With the quick surge however, the local bourse is now at the overbought territory making it susceptible to profit taking. Thus, we may see a pull back in this week’s trading,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a text message.

Prospects of economic recovery backed by the easing of several quarantine rules and the start of the release of third quarter earnings reports helped lift the market last week. The PSEi marked its best week since June after breaking through the 6,000 level.

While this week is expected to see some profit taking, Mr. Tantiangco said the PSEi is still likely to hold its ground at the 6,000-6,100 support range due to sustained optimism for the fourth quarter.

Specific catalysts for this week’s trading will be the earnings reports of BDO Unibank, Inc.; Manila Electric Co.; and Puregold Price Club, Inc.,  online brokerage 2TradeAsia.com said.

“(They) would set the tone for trades, not only for their size (~P900 billion in market cap, 10.7% of PSEi basket) and contribution to their parent companies, but also as proxies for their respective industries, being sector leaders,” it said in a market note.

“A critical price gap between 6,000 and 6,750 made during the collapse last March will be the next hurdle. This is mostly likely to be the next resistance, especially as the index attempts to find stabler footing above 6,000,” 2TradeAsia.com said.

As for downside risks, Mr. Tantiangco of Philstocks said investors would be watching the coronavirus case count. Any spike due to the relaxation of quarantine rules may cause investors to worry.

The Health department reported 2,057 new coronavirus cases on Saturday, resulting in a total case count of 367,819.

Another factor that may pull the local market lower is any negative news on ongoing talks for a US fiscal stimulus, as it may weigh on Wall Street and thus spillover to the PSEi, Mr. Tantiangco said.

Philstocks is putting the market’s support within 6,000-6,100 and resistance at 6,600. 2TradeAsia.com put immediate support at 6,000 and resistance between 6,500 and 6,750.

Duterte urged to set De Lima free after favorable testimony

MINORITY senators on Sunday urged the government of President Rodrigo R. Duterte to release an opposition lawmaker critical of his deadly war on drugs after an expert witness said there was no evidence linking her to the illegal narcotics trade.

“The fraudulently concocted evidence against Senator Leila de Lima is crumbling,” Senators Franklin M. Drilon, Risa N. Hontiveros-Baraquel and Francis N. Pangilinan said in a statement on Sunday.

“This will pave the way for her eventual exoneration and long-deserved freedom,” they added.

In an Oct. 23 hearing, a digital forensic examiner from the Philippine Drug Enforcement Agency reportedly testified that there was no evidence from extraction reports linking Ms. de Lima to the illegal drug trade.

Ms. de Lima is on trial for allegedly abetting the illegal drug trade in the country’s jails when she was still Justice secretary. She was accused of extorting millions of pesos from a drug lord that she allegedly used to finance her senatorial campaign in 2016.

She has been jailed at the Philippine National Police Custodial Center in Camp Crame since February 2017. Several witnesses against Ms. de Lima were drug convicts serving time at the national penitentiary in Muntinlupa City.

The European Union (EU) Parliament earlier adopted a resolution urging the Philippines to free Ms. Lima and look at extrajudicial killings in Mr. Duterte’s anti-drug campaign. The EU lawmakers also asked the European Commission to revoke tax perks enjoyed by the country if the state fails to address human rights violations.

An Anti-Money Laundering Council investigator also said investigations found no money flowed from the bank accounts of the senator and her co-accused.

“With these statements made in court under oath, the credibility of these two agencies is at stake, thus, their representatives had no reason not to tell the truth,” the minority senators said. “Senator de Lima’s accusers are merely clutching at straws in a desperate attempt to pin her down for a crime she did not commit.”

The Committee for the Freedom of Leila M. de Lima on Saturday also urged the government to allow her to post bail and drop the drug charges.

A local human rights group made a similar call. “Clearly, the charges against Senator Leila de Lima are baseless and fabricated by those who want to silence her voice and let lies and tyranny reign in the country,” Christina Palabay, human rights group Kaparatan secretary-general said in a Messenger chat.

“Especially with these statements by prosecution witnesses, she should be released now,” she added.

Party-list Rep. Carlos Isagani T. Zarate said the Duterte government has used the law to harass critics like Ms. de Lima and other political prisoners. 

“This continuing weaponization of the law and legal processes by the Duterte administration against its critics and the opposition should be condemned,” he said in a statement on Sunday.

Presidential Legal Counsel Salvador S. Panelo said minority senators should let the courts decide on Ms. de Lima’s fate.

“Let the law take its course,” he said in a Viber message on Sunday. “Let the court do its job. Let the rule of law prevail.”

The senator earlier asked the court to let her post bail since the prosecution had failed to prove her alleged drug transactions by omitting details of the crime such as the specific drugs involved, the buyers and sellers and the place where the trade took place. — Charmaine A. Tadalan, Kyle Aristophere T. Atienza and Gillian M. Cortez

Coronavirus cases top 370,000 as deaths near 7,000

THE DEPARTMENT of Health (DoH) reported 2,223 coronavirus infections on Sunday, bringing the total to 370,028.

The death toll rose by 43 to 6,977, while recoveries increased by 14,944 to 328,036, it said in a bulletin.

There were 35,015 active cases, 82% of which were mild, 11.3% did not show symptoms, 2.4% were severe and 4.2% were critical.

Of the new cases, 112 came from Quezon City, 111 from Laguna, 109 from Rizal, 79 from Cavite and 74 from Batangas, the agency said.

Metro Manila had the highest number of new deaths with 16, followed by the Calabarzon region with eight, Caraga with four, and Central Luzon and Soccsksargen with three deaths each.

The Ilocos region and Zamboanga Peninsula reported two deaths each, while the Bicol region, Western Visayas, Central Visayas, Northern Mindanao and Davao region reported one death each.

More than 4.3 million people have been tested for the coronavirus, DoH said.

Last week, Health authorities said DoH was P10.5 billion short of funds for coronavirus vaccines to cover a fifth of the Philippines’ more than 100 million population once they become available.

The agency needs more than P12 billion to inoculate priority groups including health workers and the poor, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing last week.

It only had allotted P2.5 billion for vaccines in its P204-billion budget for next year. The cost considered two doses for each person, she said.

President Rodrigo R. Duterte earlier said the Philippines has funds to buy coronavirus vaccines but it needs more so the entire population of more than 100 million could be inoculated.

He said he would look for more funds so all Filipinos could be vaccinated, adding that he was okay with vaccines developed either by Russia or China.

Marikina Rep. Stella Luz A. Quimbo at the weekend said vaccinating 20 million Filipinos would cost almost P13 billion. She added that the budget was only enough to cover 3.9 million Filipinos at a testing price of P641 each. — Vann Marlo M. Villegas

Senate measures to expand assistance to jobless workers

TWO bills seeking to expand government aid to jobless workers amid a coronavirus pandemic have been filed at the Senate.

Senate Bills 1456 and 1836 mandate the government to provide emergency employment programs in times of natural disasters, public health emergencies, wars and armed conflicts.

The Senate labor committee will endorse the measure to the plenary soon, Senator Emmanuel Joel J. Villanueva said in a text message on Sunday. The chamber is on a break from Oct. 17 to Nov. 8.

The Labor department provides emergency employment for 10 to 30 days, depending on the nature of the work. It supports projects in the repair, maintenance or improvement of schools, health centers, farm-to-market roads and bridges, as well as reforestation.

Senate Bill 1456 authored by Mr. Villanueva will extend the employment to as long as 90 days.

Projects that will be eligible for funding are light works such as street sweeping and cleaning of public facilities for up to 15 days; and social community projects such as declogging of canals and debris cleaning for 45 days.

Other social community projects involving minor repairs and maintenance of public utilities may last for 60 days.

Meanwhile, work that seeks to improve government facilities and infrastructure, rehabilitate roads and bridges, tree planting and other field jobs may last up to 90 days.

Senate Bill 1836 authored by Senator Imee R. Marcos also seeks to increase the project duration to 90 days in exceptional cases. — Charmaine A. Tadalan

Gov’t reviewing ‘procurement issues’ in Red Cross, PhilHealth contract

THE DEPARTMENT of Justice (DoJ) is reviewing the memorandum of agreement (MOA) between Philippine Red Cross and Philippine Health Insurance Corp. (PhilHealth) before releasing payments for coronavirus swab tests to the former, citing “procurement issues” in the deal.

Red Cross announced last week that it will temporarily stop accepting RT-PCR tests chargeable to PhilHealth until the state insurer settles dues amounting to about P930 million.

Justice Secretary Menardo I. Guevarra told reporters via Viber that they will render an opinion within the week after reviewing the whole agreement, “but more particularly on procurement issues.”

“The DoJ opinion was requested by PhilHealth before it makes a decision to pay its indebtedness to the Philippine Red Cross,” he said.

Mr. Guevarra said the review on the validity of the agreement may result in civil liabilities but they are not ruling criminal liability.

“We are not ruling out anything until we have completed a thorough review of the subject MOA and laws applicable to the said deal,” he said.

Under the agreement, PhilHealth provided an advance payment of P100 million to Red Cross for testing service.

Presidential Spokesman Harry L. Roque on Wednesday said the government will be paying half of PhilHealth’s debt by next week as he appealed to Red Cross to resume its testing services. — Vann Marlo M. Villegas

Out-of-school youth to get free tech-voc training under OVP, USAID, PBED program

A PROGRAM that will provide free technical-vocational skills and employability training for at least 1,000 out-of-school youth in the country was launched Thursday.

The program is a collaboration among the Office of the Vice President, United States Agency for International Development (USAID), and the Philippine Business for Education (PBEd), with a combined P17 million commitment.

“We are grateful for this partnership with USAID and PBEd, which will allow us to open more doors for young people, who may need to support themselves and their families, especially during the COVID-19 crisis,” Vice President Maria Leonor G. Robredo said during the virtual launch.

PBEd Chair Ramon R. Del Rosario, Jr. said the partnership “is a massive boost towards empowering young Pinoys (Filipinos) who are disproportionately affected by this crisis.”

Interested applicants can register through youthworks.pbed.ph/trainee-registration/form. — Kyle Aristophere T. Atienza

FDA says Chinese firm Sinovac has passed pre-vaccination screening

THE FOOD and Drug Administration (FDA) on Thursday said Chinese pharmaceutical firm Sinovac Biotech Ltd. is the only company so far to pass the pre-vaccination screening phase locally among three applicants and is expected to begin clinical trials soon.

FDA Director General Rolando Enrique D. Domingo, in a briefing, said out of the three applicants that approached the Department of Science and Technology’s vaccine expert panel, only Sinovac has completed the pre-screening process.

“They applied today with the FDA for clinical trial permission to conduct a clinical trial here,” he said in mixed Filipino and English..

The FDA official said the Sinovac vaccine for the coronavirus disease 2019 (COVID-19) will still go through the local regulatory process despite being already administered in China.

Mr. Domingo said the other two applicants in the pre-screening process, the Gamaleya Research Institute in Russia and Janssen Pharmaceutica of Johnson & Johnson from the United States, are still being studied by the panel.

Meanwhile, Philippine Ambassador to China Jose Santiago Santa Romana said November is the “optimistic” projection as to when China will mass produce vaccines for the COVID-19.

“Hopefully, mass production and distribution will happen in the near future, as early as November and December in terms of production. And it will depend on our capability to receive the vaccines in terms of our facilities, in terms of distribution. So, the prospects are bright in terms of a breakthrough in vaccine,” he said.

He added that even if the Philippines is one of the priority recipients, Chinese pharmaceutical firms will first be assessing the country’s capability to store the vaccines, especially given the tropical climate. — Gillian M. Cortez 

Group calls for independent task force to probe DPWH anomalies

THE GOVERNMENT should consider allowing independent experts to investigate the alleged corruption within the Department of Public Works and Highways (DPWH), an infrastructure think-tank said Thursday.

DPWH Secretary Mark A. Villar earlier this week formed a task force composed of department officials to probe anomalies inside the agency.

InfrawatchPH Convenor Terry L. Ridon, however, said an internal investigation would be regarded as merely for show after President Rodrigo R. Duterte lashed at the department last week for corrupt practices.

“The department’s anti-corruption task force requires independent views to ensure that its findings will be transparent and made with integrity,” he said, “Anything less will be perceived by the public as a ‘komite de abswelto’ if the task force will be composed of agency officials and personnel.”

Presidential Spokesperson Harry L. Roque said on Wednesday that it is not “inconceivable” that Mr. Duterte may create a separate task force for DPWH “in the same way he formed one for PhilHealth.”

Mr. Ridon said “legal bid rigging” of government contracts is the main problem in government projects.

“A review of infrastructure projects with only single bidders would show that its project prices offer no substantial variation from its approved budget, which is the ceiling price for all projects. In one of the more controversial DPWH projects in Metro Manila, the final contract price of P389-Million only had a 2.04% variance from the approved project budget of P398-Million,” he said.

This system, he said, allows private contractors and government employees to collude.

The Presidential Anti-Corruption Commission has previously listed DPWH as the most corrupt government agency. — Kyle Aristophere T. Atienza

Budget chief defends reduced allocation to Housing department

BUDGET SECRETARY Wendel A. Avisado on Thursday defended the reduced allocation of the newly-created Department of Human Settlements and Urban Development (DHSUD) for 20221, noting that the agency is not tasked with the actual construction of houses.

In a briefing on Thursday, Mr. Avisado said the DHSUD is mainly responsible for policy-setting, coordination, and monitoring while the National Housing Authority is in charge of building socialized housing projects.

“DHSUD has its own mandate. And if we look at the law itself, it says that it will be the sole and main planning and policy making regulatory, program, coordination and performance monitoring of all housing human settlement and urban development concerns,” he said.

Lawmakers on Wednesday questioned the P4 billion DHSUD allocation under the 2021 proposed budget, which is about half its P7.83-billion budget this year.

“Housing production is with the National Housing Authority and the National Housing Authority receives minimal subsidy from the national government because it has its own corporate funds. So that’s the reason why there’s not much funds that we can see at the department (DHSUD) itself because its function is not on housing production,” Mr. Avisado said. — Gillian M. Cortez 

Nationwide round-up (10/25/20)

PHL gets vice-chair post in ILO government group

THE PHILIPPINES has been elected as vice-chair for the International Labor Organization’s (ILO) sub-group on government, giving the country voting and speaking rights in making labor policies. The Philippine Overseas Labor Office in Geneva reported that Labor Secretary Silvestre H. Bello III will take on the role as vice-chair for government in the ILO starting next year. “This is the first time in the 100 years of the ILO that an observer nation is elected as vice-chair of its government group, the body that represents governments in the tripartite global labor organization,” the Department of Labor and Employment said in a statement on Sunday. Mr. Bello will also be sitting as chair for the government’s group during the International Labor Conference in 2022. — Gillian M. Cortez   

Former Bayan Muna representative dares Parlade to file charges

LAWYER Neri J. Colmenares, a former congressional member representing party-list Bayan Muna, dared a military general to stop red-tagging individuals and groups, and instead take legal action against alleged communist rebels. Mr. Colmenares challenged Lt. Gen. Antonio G. Parlade Jr., head of the Southern Luzon Command to file formal charges against them rather than resorting to “trial by publicity.” “(Mr.) Parlade’s statement that he will sue us during the official proscription (of alleged terrorists) proves the anti-terrorism law is meant to harass critics,” Mr. Colmenares told BusinessWorld. The military officer recently made controversial remarks against prominent female personalities over alleged involvement with leftist groups, for which he has been chided by a couple of Cabinet members. — Kyle Aristophere T. Atienza

Regional Updates (10/25/20)

Typhoon Quinta brings heavy rains, strong winds to Philippines

SEVERE TROPICAL storm Quinta intensified into typhoon category Sunday afternoon and was expected to make landfall over the eastern coast of Camariñes Sur or northeastern coast of Albay in the evening. In its 5 p.m. advisory on Oct. 25, weather bureau PAGASA raised typhoon alert levels in parts of Luzon and Visayas, and rainfall warnings were up in most areas of the country due to the storm’s wide trough. Emergency response and local government teams started preemptive evacuation in high-risk areas and sea travel along the storm’s path was also halted. The Philippine Coast Guard reported that as of Sunday morning, 649 rolling cargoes, 50 vessels, 10 motorbancas, and over 1,000 people were stranded in ports across the regions of Calabarzon, Mimaropa, Bicol, and Eastern Visayas. Quinta will continue to bring rains Monday as it moves over the West Philippine Sea. It is likely to exit the Philippine area on Tuesday afternoon, according to PAGASA’s forecast.

600-bed quarantine facility for Calabarzon patients ready by mid-November

DPWH

THE CONVERSION of the Calabarzon Regional Government Center in Calamba City into a 600-bed quarantine facility for coronavirus patients will be completed by mid-November, the Department of Public Works and Highways (DPWH) announced Sunday. The isolation facility will accommodate patients from the region, which is composed of the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon. Calabarzon has the second highest number of coronavirus disease 2019 (COVDI-19) patients in the country, after the capital region Metro Manila, with almost 11,000 active cases as of Oct. 24. DPWH said the converted facility will have 50 beds allocated to healthcare workers and the rest for  mild and asymptomatic COVID-19 patients. It will be jointly managed by the Calamba City government, Department of Health, and Office of Civil Defense. DPWH has been fast-tracking the construction of additional isolation units nationwide using existing buildings, shipping containers, and other quick-build materials to augment limited healthcare facilities. Undersecretary Emil K. Sadain, who heads the task force in charge of facility augmentation, said 357 of the 695 target facilities have been completed as of Oct. 22, providing 15,608 additional beds out of the 24,707 target. “The added bed capacity for isolation and quarantine will be a big boost to the government’s effort in containing the COVID-19 pandemic,” Mr. Sadain said.

Peralta to ask court to fast-track resolution of Manila Water, Maynilad appeal

CHIEF JUSTICE Diosdado M. Peralta said he will ask the court to fast-track the resolution of the appeal of the two Metro Manila water concessionaires over the almost P2 billion fine imposed against them for allegedly violating Republic Act No. 9275 or the Philippine Clean Water Act of 2004. “I’ll check the records, and then I will advise the member-in-charge to fast-track the resolution of that,” he told reporters in an online briefing Friday. Mr. Peralta has inhibited from the case as his wife, Court of Appeals Associate Justice Fernanda Lampas-Peralta, is part of one of the rulings involving a fine on one of the parties involved. “But as  a chief justice because that is your concern, I will confer with the member-in-charge to fast track resolution of the motion for reconsideration,” he said. The high court last year held Manila Water Co., Inc. and Maynilad Water Services, Inc. jointly liable with regulatory agency Metropolitan Waterworks and Sewerage Systems for failure to connect sewage lines and install and maintain wastewater treatment facilities within five years after the law took effect in early 2004. The two companies have been ordered to pay P921.5 million each in liabilities, covering the period May 7, 2009 to Aug. 6, 2019. The water concessionaires asked the court to reverse its ruling, citing compliance. Mr. Peralta, chairperson of the Supreme Court Manila Bay Advisory Committee, said Environment Secretary Roy A. Cimatu has reported to him on wastewater treatment projects being undertaken by Manila Water and Maynilad, which he intends to visit. — Vann Marlo M. Villegas

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