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How PSEi member stocks performed — February 17, 2021

Here’s a quick glance at how PSEi stocks fared on Wednesday, February 17, 2021.

Stocks drop on Taal’s activity, inflation concerns

PHILIPPINE SHARES fell on Wednesday as concerns over the Taal volcano recent activity and the peso’s weakness caused the market to become cautious.

The Philippine Stock Exchange index (PSEi) dropped by 77.63 points or 1.1% to finish at 6,966.43 on Wednesday. The broader all shares index also declined by 35.31 points or 0.83% to close at 4,213.53.

“Taal poses an uncertainty of whether another eruption could affect surrounding local economies once more,” China Bank Securities Corp. Research Associate Jason T. Escartin said in an e-mail.

“Developments over the Taal volcano and the vaccine delivery will likely drive market movement over the coming days with volatility likely to persist,” he added.

Philippine authorities evacuated dozens of people from areas near Taal volcano, a tourist attraction 65 kilometers south of the capital, after it recorded increased seismic activities, Bloomberg reported.

About 60 residents of Taal island were moved to safer ground, the Philippine Coast Guard said on Twitter. Taal recorded 98 tremor episodes lasting five to 12 minutes in the past 24 hours, the Philippine Institute of Volcanology and Seismology said in a Feb. 16 report.

Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the PSEi’s decline may also be due to the increase in US Treasury yields.

“This comes on the back of the rise in the 10-year US Treasury yield to 1.30%. The sudden depreciation of the Philippine peso also contributed to Wednesday’s foreign fund outflows,” Mr. Tantiangco said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message that higher global oil prices and the weaker peso, which could push inflation higher, also caused some concern among investors.

“Market also partly weighed by recent signals on some delays in the arrival of COVID-19 vaccine supply in the first half of 2021,” he added.

All sectoral indices went down on Wednesday. Financials decreased by 22.96 points or 1.56% to end at 1,443.37; property fell 51.3 points or 1.43% to 3,533.62; holding firms dropped 60.84 points or 0.83% to 7,195.19; services declined by 9.43 points or 0.62% to 1,489.57; industrials went down 48.06 points or 0.52% to 9,051.32; and mining and oil gave up 47.93 points or 0.52% to end at 9,087.20.

Value turnover rose to P19.35 billion on Wednesday with 17.23 billion shares switching hands, higher than Tuesday’s P18.16 billion with 21.86 billion issues traded.

Decliners beat advancers, 145 to 82, while 45 names finished unchanged. Net foreign selling rose to P941.66 million yesterday from the P68.75 million in net outflows logged on Tuesday.

Analysts expect the PSEi to close at around 6,880 to 6,910 for the rest of the week. Investors are looking for signs of recovery, Philstocks Financial’s Mr. Tantiangco said.

“Lack of such is seen to lead to an extension of the market’s decline with a possible testing of the 6,900 support.” — Keren Concepcion G. Valmonte with Bloomberg

Peso sinks to weakest close in 3 months

THE PESO weakened further against the greenback on Wednesday on risk-off sentiment following the stock market’s decline and amid concerns over rising commodity prices.

The local unit finished trading at P48.38 per dollar on Wednesday, losing 13 centavos from Tuesday’s close of P48.25, data from the Bankers Association of the Philippines showed. This was its weakest finish since Nov. 4 when it closed at P48.40.

The peso opened the session at P48.30 versus the dollar. Its low for the day was at P48.47 while its intraday best was at P48.222 against the greenback. Dollars traded climbed to $1.387 billion from $1.039 billion from Tuesday.

The peso depreciated amid some weakness in the local stock market on Wednesday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The bellwether Philippine Stock Exchange Index inched down by 77.63 points or 1.1% to 6,966.43 on Wednesday.

Meanwhile, a trader attributed the local unit’s depreciation to concerns over rising inflation.

“The peso weakened significantly for the second day from elevated inflation concerns amid rising oil prices and local food supply constraints,” the trader said in an e-mail.

The central bank last week raised its inflation forecast for the year to 4% from 3.2% as it expects sustained pressure from rising food and oil prices in the coming months due to supply constraints and base effects.

Inflation has been climbing since October, spiking to a two-year high of 4.2% in January.

For Thursday, Mr. Ricafort gave a forecast range of P48.30 to P48.45 per dollar while the trader expects a slightly wider band of 48.25 and 48.45. — LWTN

Gov’t agrees not to file suits in case of vaccine side effects

THE PHILIPPINE government has agreed not to press charges against coronavirus vaccine makers in case of injuries, according to the presidential palace.

The government would assume responsibility for the emergency use of their vaccines under so-called indemnification agreements, vaccine czar Carlito G. Galvez, Jr. told a televised news briefing on Wednesday.

Among those covered by the waivers are Pfizer, Inc. and Astrazeneca Plc, he said.

“All of the manufacturers are requiring an indemnity agreement in all the contracts we’re signing,” he said. “Nondisclosure and indemnity were included there.”

The lack of an indemnification plan has hindered the delivery of the first 117,000 doses of Pfizer vaccines under a global initiative for equal access, Mr. Galvez said, citing the concerns of foreign drug makers about the country’s past experience with its dengue immunization program.

Sanofi Pasteur, a French pharmaceutical giant, was sued after several Filipino children died supposedly due to the side effects of its dengue vaccine CYD-TDV, sold under the brand name Dengvaxia.

The World Health Organization (WHO) in 2017 said the dengue vaccine should not be given to people who have not been infected with the dengue virus.

At the same briefing, Senator Juan Miguel F. Zubiri said the Senate would fast-track the passage of the proposed Vaccination Program Act, which will set up a P500-million indemnity fund to compensate potential victims who may experience side effects.

“If the government still needs funds, they can take it from the contingency fund of the General Appropriations Act, which is about P13 billion,” he said.

Mr. Zubiri said senators failed to pass Senate Bill 2057 on first reading on Tuesday after resource persons who were supposed to answer questions about the measure failed to show up.

Senators were expected to approve the bill later in the day, he said. They expect to ratify the measure by Monday and submit it to the presidential palace for President Rodrigo R. Duterte’s signature, he added.

The bill also empowers local governments to make advance payments for the purchase of coronavirus vaccines and other supplies for up to 50% of their target population, in cooperation with the Department of Health (DoH) and National Task Force Against COVID-19.

DoH reported 1,184 new coronavirus infections on Wednesday, bringing the total to 553,424. The death toll rose by 53 to 11, 577, while recoveries increased by 271 to 512,033, it said in a bulletin.

There were 29, 814 active cases, 2.6% of which were critical, 85.4% were mild, 8.5% did not show symptoms, 2.6% were severe and 0.83% were moderate.”

DOH said two cases had been removed from the tally, while four more were reclassified as recoveries. Thirty cases tagged as recoveries were reclassified as deaths. — Kyle Aristophere T. Atienza

Congressmen seek P500-M fund for vaccine harm or loss

CONGRESSMEN are considering creating a P500-million fund that will cover damage claims in case people get sick from coronavirus vaccine shots.

The fund will cover any adverse effects and ensure that the government’s vaccination program goes smoothly, Quirino Rep. Junie E. Cua said in his sponsorship speech on Wednesday.

The clause was inserted in House Bill 8648, which will also allow local governments to bypass procurement rules in the emergency purchase of vaccines.

Meanwhile, Albay Rep. Jose Maria Clemente “Joey” S. Salceda  said the government should prioritize rolling out its vaccination program if it plans to further ease the general lockdown in Metro Manila.

Economic output in the capital region could grow by as much as 2.3% this year once it shifts to a modified general community quarantine (MGCQ), he said in a statement.

“That’s a very generous estimate that considers no sudden shifts back to a general community quarantine (GCQ), or no sudden spikes in infections,” Mr. Salceda said.

“The economic impact is probably closer to between 0.5% and 1.4%, which is not nothing, but it can be better with a more ambitious vaccination plan,” he added.

Mr. Salceda’s recommendation came after the National Economic and Development Authority (NEDA) this week sought to ease lockdown to fast-track economic recovery. — Gillian M. Cortez

Capital gets 2,000 hogs from south amid tight supply

AT LEAST 2,000 live pigs from South Cotabato in southern Philippines arrived in the capital region on Wednesday to augment pork supply amid rising prices, according to the presidential palace.

The hogs had been brought to a port in Tondo, Manila and would be distributed to different markets in the capital, presidential spokesman Herminio “Harry” L. Roque, Jr. told a televised news briefing on Wednesday.

President Rodrigo R. Duterte this month capped prices at P270 per kilo of pork shoulder, P300 per kilo of pork belly, and P160 per kilo of dressed chicken in Metro Manila for 60 days.

The Agriculture department earlier said a group of hog raisers in South Cotabato had committed to deliver 10,000 live pigs to Metro Manila weekly.

Mr. Roque said the government would continue to ship hogs to the capital region from areas unaffected by the African Swine Fever outbreak.

He said the government was ready to import pigs if local supply remains insufficient. “This is temporary because supply really ran out in Luzon because of the African Swine Fever,” he said in Filipino.

The Agriculture department on Tuesday said it had recommended to the palace to increase the minimum access volume for pork imports at lower tariffs.

The agency has set maximum prices for the landed cost of hogs shipped to Metro Manila from farms across the country to keep a lid on high pork prices and avert another inflation crisis.

In a memo, Agriculture Secretary William D. Dar said once additional hogs contracted on an emergency basis arrive in Metro Manila via subsidized transport, the landed cost of hogs from Mindanao will be capped at P165 per kilo. — Kyle Aristophere T. Atienza

SMC gets green light to extend Tullahan River cleanup

SAN Miguel Corp. (SMC) is extending its P1-billion Tullahan-Tinajeros River cleanup to 11.5 kilometers, almost halfway of the 27-km water system. 

SMC President and Chief Operating Officer Ramon S. Ang, in a statement on Wednesday, said the Department of Public Works and Highways (DPWH) has approved the company’s dredging plans for Sectors 4 and 5 of the river system, covering the stretch from Tinajeros Bridge to Potrero in Malabon and Valenzuela cities. 

SMC said the cleanup extension further complements ongoing flood mitigation measures in the cities of Navotas, Malabon, and Valenzuela, before the start of the rainy season. 

“We are making all the necessary preparations now to move into the next phase of our river cleanup and flood management initiative. We’re investing in new equipment, and hiring more people,” said Mr. Ang. 

SMC will be working with the local governments and the Metro Manila Development Authority’s (MMDA) Flood Control group in implementing the project.

Mr. Ang also said the project has employed 11 heavy equipment operators who graduated under the SMC-Technical Education Skills and Development Authority (TESDA) partnership skills training program.

The program beneficiaries are former residents of Barangay Taliptip in Bulacan, who were relocated from the future site of SMC’s P740-billion Manila International Airport project.

Nationwide round-up (02/17/21)

New consumer group to focus on fair service in power sector

NEWLY-launched consumer group Kuryente.org said on Wednesday that it aims to ensure the welfare of electricity consumers, and pursue transparency in the country’s energy industry sector. During the group’s virtual launch, national coordinator Nic Satur, Jr. said their organization is “open for collaboration with all sectors of the power industry,” including politicians, lawyers and the media, among others. “Our sole focus is (for) consumers to have a fair service of what (they) are paying for. The consumers’ welfare is our agenda, with consumers’ participation in the ERC (Energy Regulatory Commission) for representation and transparency,” Mr. Satur said. The group said the country has an “energy crisis,” which is “aggravated by the lack of consumer participation in the energy industry.” The group has been active through Facebook since last year, but their own Kuryente.org platform was officially launched Wednesday. “The Philippines remains to charge one of the highest electricity costs in Asia. This and the continued poor services especially during the current pandemic are affecting the ordinary Filipino’s capacity to cope. Many are also losing their jobs,” Mr. Satur said in a statement.

‘ENERGY ADVOCATE’
Senator Sherwin T. Gatchalian, who attended the event, said consumer protection and the competitive operations of the electricity industry are enhanced in the proposed Energy Advocate Act under Senate Bill No. 173. “The rationale for the Energy Advocate Act is to give organizations a bigger voice in terms of rates setting and going into the approval of retail rates here in our country,” he explained. The lawmaker, who chairs the Senate committee on energy, was also quoted in the group’s statement as saying that “consumer advocacy groups such as Kuryente.Org must come together to make noise and study the complexity of the energy industry to protect the rights of the consumers.” — Angelica Y. Yang

POPCOM pushes for law to decrease adolescent pregnancies

THE COMMISSION on Population and Development (POPCOM) called on the current Congress to pass proposed laws that will help prevent the rising number of adolescent pregnancies. Among the pending legislation are prohibition of child marriage, and raising the age to determine statutory rape from below 12 years old to below 16. Results of a nationwide survey conducted by the Social Weather Stations and commissioned by POPCOM, which were presented in an online briefing Wednesday, show 59% of the respondents said teenage pregnancy is the most pressing problem of women today, followed by physical violence (11%), unintended pregnancy (11%), and sexual violence (7%). With the lockdown due to the coronavirus pandemic from March 2020 contributing to the pregnancy boom in the Philippines, POPCOM projects 62,510 thousand live births by minors and 133,265 minor-led families at the end of 2021. In 2019, the National Economic and Development Authority (NEDA) declared the high adolescent pregnancy rate in the country as a national social emergency. POPCOM Executive Director Juan Antonio A. Perez III said while there are various programs already being implemented under the Reproductive Health Law, further measures and funding focusing on adolescents are needed. “We need Congress to act on the access of minors to reproductive health services,” Mr. Perez said. — Bianca Angelica D. Añago

Dismissal of charges against those in amnesty list not automatic, says Guevarra

JUSTICE Secretary Menardo I. Guevarra on Wednesday said legal cases involving persons included in a recent amnesty proclamation will not be automatically dropped. “The dismissals of these cases are not automatic,” Mr. Guevarra said in a Viber message to reporters. He said the National Prosecution Service will make an inventory of pending investigations or trials of people covered by the amnesty, and these will be subject to an evaluation by the National Amnesty Commission (NAC). The commission was recently created through an executive order signed by President Rodrigo R. Duterte. NAC has yet to draft the screening and evaluation rules, but the most important criterion “is whether or not the offense committed by the subject individual was in pursuit of a political objective,” Mr. Guevarra said. — Bianca Angelica D. Añago

Regional Updates (02/17/21)

Panay-Guimaras-Negros bridge construction won’t start under Duterte administration — Drilon

CONSTRUCTION of the Panay-Guimaras-Negros (PGN) bridges will be passed on to the next administration, Senate Minority Leader Franklin M. Drilon said on Wednesday following a meeting with the government’s adviser for flagship projects. “There is simply no time,” Mr. Drilon said in a statement. The senator, who hails from Iloilo where the Panay link will be located, said Presidential Adviser for Flagship Projects Vince B. Dizon informed him that the project is still undergoing feasibility study and that the target date for starting construction is 2023. Department of Public Works and Highways (DPWH) Information Officer Randy R. Del Rosario confirmed this, saying the project is still in the “Feasibility Studies stage.” Mr. Drilon has been pushing for the bridges that will span 32.47 kilometers, connecting the three islands of Panay, Guimaras, and Negros and boost the Western Visayas economy .“The PGN Bridge is a dream of the people of Western Visayas. The lack of inter-connectivity is a stumbling block to the region’s growth and development. We must address the lack of connectivity to transport our agricultural products between Panay, Guimaras, and Negros,” Mr. Drilon said. This “undelivered commitment,” he said, will be a factor when voters make their choices in next year’s local and national elections. — Bianca Angelica D. Añago

Tropical depression Auring enters PHL area Wednesday, heavy rain expected by weekend

THE country’s first typhoon for the year, named Auring, entered the Philippine area Wednesday morning but its impact is not expected until the weekend, according to the national weather bureau. Tropical depression Auring, located 900 kilometers southeast of Hinatuan in Surigao del Sur as of 10 a.m. Feb. 17, is expected to intensify into a tropical storm and make landfall within the Caraga Region by Saturday evening or early Sunday. The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) alerted authorities and residents in the storm’s path to “take appropriate preparatory measures due to increasing likelihood of heavy rains and gusty conditions associated with the potential passage of a tropical cyclone during the weekend through Monday.” Areas that are expected to be affected are: the Visayas islands; the regions of Bicol, MIMAROPA (Mindoro-Marinduque-Romblon-Palawan), Caraga, Northern Mindanao, and Davao; and the provinces of Cotabato and Lanao del Sur. PAGASA said typhoon signal #1 might be raised over Caraga and Davao by Friday due to expected strong wind. Auring was moving at 20 kilometers per hour (km/h) with maximum sustained winds of 45 km/h.

Ormoc Bay added to list of red tide areas

THE Bureau of Fisheries and Aquatic Resources (BFAR) has warned consumers from eating shellfish harvested in Ormoc Bay, Leyte after the area tested positive for red tide contamination. In its fourth shellfish bulletin for the year, BFAR said Ormoc Bay joins the growing list of red tide zones such as Inner Malampaya Sound, Palawan; Sorsogon Bay; Dauis and Tagbiliran City, Bohol; Tambobo Bay, Negros Oriental; and Daram Island, Zumarraga, San Pedro Bay and Cambatutay Bay in Western Samar. Other areas that remain positive for red tide include Calubian, Carigara Bay, and Cancabato Bay in Leyte; Biliran Islands; Guiuan and Matarinao Bay in Eastern Samar; Dumanquillas Bay in Zamboanga del Sur; Balite Bay in Davao Oriental; and Lianga Bay and Hinatuan in Surigao del Sur. All types of shellfish and Acetes sp. or alamang harvested from the aforementioned areas are unsafe for human consumption. Other marine species gathered in these areas can be eaten with proper handling and cooking. — Revin Mikhael D. Ochave

ARTA: Lack of automation at BAI an inflation risk

THE Anti-Red Tape Authority (ARTA) has asked the Bureau of Animal Industry (BAI) to automate its processes to help bring down the cost of produce and contain inflation.

ARTA Director-General Jeremiah B. Belgica said the BAI, which regulates livestock and related industries like animal feed, needs to bring online its document submission, payment, and releasing procedures, with permits made printable at home.

“Ang konsepto kasi natin dapat, ‘yung papel ang umiikot, hindi ‘yung tao at aksyunan agad ang mga pending applications, (The concept that needs to be adopted is that the documents should make the rounds, not people. The BAI should act on pending applications immediately),” he said in a statement Tuesday.

If online processes are not yet up to date, he said that the agency should send permits to applicants via courier to reduce on-site visits.

Mr. Belgica added that streamlined and automated processes will reduce the prices of meat and animal feed, thereby helping contain food prices and reducing the threat of another inflation crisis.

“Pag mahirap ang proseso, nadadagdagan ‘yung gastos mo sa permit… so tataas ang presyo. Pag streamlined, mabilis. Makakapagnegosyo agad ang tao, ang presyo din of course maaapektuhan. Makakatulong sa pagbaba ng presyo (If the process is difficult, applicants spend more for the permit. A streamlined process gets applicants through faster. They can go about their business right away and prices will fall).”

The Ease of Doing Business law requires government agencies to meet three types of deadlines: Three working days for simple transactions, seven working days for complex transactions, and 20 working days for highly technical applications.

ARTA asked the BAI to submit a list of completed and fully paid applications that are still pending at the agency.

A price ceiling was placed on pork earlier this month after the African Swine Fever outbreak increased the cost of raising hogs while drastically reducing supply in Luzon. — Jenina P. Ibañez

Priority dredging works on Marikina River targeted for completion by end of April

THE Department of Public Works and Highways (DPWH) said Wednesday that dredging in three parts of the Marikina River identified as priority areas will be substantially complete by the end of April.

The dredging works are expected to improve the flow of the Marikina River and minimize the flooding risk after its waters rose during the typhoons that hit the country late last year.

The DPWH is helping the Department of Environment and Natural Resources (DENR) rehabilitate the Marikina River basin.

“By the end of April, we will see a significant accomplishment of this dredging activity in time, for the months of May and June, the time when typhoons usually start entering the country,” DPWH Engineer Jerry A. Fano said during the launch of the Marikina River Rehabilitation project Wednesday.

He said the priority areas identified by the DPWH for dredging are the stretch of river along the Olandes sewage treatment plant, designated “Site A,” near the SM Marikina or “Site B,” and near the East Metro Terminal or “Site C.”

Dredging in the three priority areas is expected to move out a combined 95,000 cubic meters, he said.

During the launch, Environment Secretary Roy A. Cimatu said the government plans to finish dredging at the three sites in about 65 days.

“I’m very sure that we would be able to speed up the movement of water in the river, and reduce flooding in the area,” Mr. Cimatu, who chairs Task Force Build Back Better, said.

Aside from the Wednesday launch of the pilot dredging activity in Barangay Kalumpang, Marikina City, the DENR also held a bamboo planting activity on the riverbank at Barangay Industrial Valley Complex, also in Marikina.

Fifteen days earlier, the DENR launched dredging operations on the Cagayan River, which overflowed and flooded towns in the Cagayan Valley late last year.

In a statement Wednesday, Mr. Cimatu added that efforts are now underway to dredge and desilt the Bicol River and Lake Bato, and rehabilitate floodgates and rivers around Mayon Volcano. — Angelica Y. Yang

PHL rice inventory drops 12.8% at start of 2021

THE national rice inventory declined 12.8% year on year to 2.33 million metric tons (MT) as of Jan. 1, the Philippine Statistics Authority (PSA) said.

In its rice and corn inventory report, the PSA said rice stocks held by households rose 7.6% year on year to 1.29 million MT, while inventories held by commercial warehouses fell 27.5% to 689.96 thousand MT.

Rice stocks held by the National Food Authority (NFA) fell 32.8% to 352.52 thousand MT.

The rice inventory fell 15.7% from 2.77 million MT at the start of December.

Household rice stocks fell 20.3% month on month, while inventory held by commercial warehouses fell 13.2% over the same period.

NFA rice volumes fell 0.1% month on month.

“The total rice inventory level during the month was composed of 55.3% households (stocks), 29.6% commercial warehouses, and 15.1% with the NFA,” the PSA said.

Meanwhile, the national corn inventory as of Jan. 1 rose 12.6% year on year to 914.07 thousand MT.

Corn held by households rose 37.7% to 289.03 thousand MT, while inventory in commercial warehouses rose 3.8% to 625.03 thousand MT.

Month on month, corn stocks fell 4.9% from the start of December.

Corn held by households fell 17.9%, while stocks in commercial warehouses rose 2.6%.

The NFA held no corn stocks during the period, according to the PSA.

“The total corn stocks during the month (consisted of) 31.6% in households and 68.4% in commercial warehouses,” the PSA said. — Revin Mikhael D. Ochave

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