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Brocka’s Children

MOVIE REVIEW
Pamilyang Ordinary
Directed by Eduardo W. Roy, Jr.
Netflix

EDUARDO W. ROY, Jr.’s Pamilyang Ordinaryo (Ordinary People, 2016, now streaming on Netflix, with English subtitles) is one of the many and arguably one of the best recent films to continue the brand of social realism Lino Brocka helped initiate in Maynila sa Mga Kuko ng Liwanag (Manila in the Claws of Neon, 1975) — if anything, it raises the ante on challenges facing the eponymous couple. Aries (Ronwaldo Martin) and Jane (Hasmine Kilip) aren’t just homeless they’re homeless teens, not just homeless teens but married homeless teens, with a month-old child named Arjan (a portmanteau of both their names) dependent on their constant hustling, purse-snatching and shoplifting for sustenance.

Roy uses a largely handheld camera to capture 2016 Metro Manila, and his findings can be summarized in that classic US Marine acronym: SNAFU (“Situation Normal: All Fucked Up”) — Julio Madiaga in Brocka’s masterpiece struggled to live on the margins of this vast metropolitan sprawl and while Aries and Jane are younger, faster, far more agile, they face the same intimidating problems, with (if anything) a lower level of education.

On occasion Roy cuts to a surveillance camera (simply locked-down camera footage in black-and-white, with a time signature running on the upper right corner) and we see the urban digital equivalent of the Godlike point-of-view: the single eye looking down, serene, unmoving, dispassionately recording every passing moment. Roy often uses this shot as testimony to the couple’s various crimes, at one point generating considerable suspense (Jane walking past her marks — will she give up? Go through with it? Approach and beg for help?).

Early in the film, a plot twist — and suddenly the challenges Aries and Jane face become that much more challenging, perhaps impossible, to meet.

Along the way Roy touches on the different strata of society — the business owners who look on these two not just with indifference but hostility, and not without cause (Are they going to buy something? Steal something? Wreak havoc?); the police officers who seize the opportunity to do some sleazy sexual harassing (To Jane: “How old were you when you were first fucked? Did you enjoy it?”); the men and women who play on youthful gullibility (“Don’t you need a loan? You don’t have to pay me back just yet.”).

At one point we meet Jane’s mother (played with a flinty sharpness by Maria Isabel Lopez) and looking at her bitterly exhausted face you’re not much surprised that Jane would take to the streets (“Fuck this life,” the elder woman mutters, neatly summing up everyone’s feelings to date).

As for the upper class — they don’t even bother showing up for the film but have their domestic servants representing in their stead.

Some issues: Moira Lee plays Ertha, one of the adults who seem to care about these indigent youths and instead of chiding the film for showing a transgendered actor playing a negative role I’d rather say she’s proving transgendered actors can play any role, negative or positive (she’s very good for the record, wheedling and encouraging, charming and annoying, all at the same time).

Samples of public media responses to the couple’s flight raises a valid question: isn’t baby Arjan better off with a more materially wealthy couple? Jane brushes the arguments aside with more vehemence than reason; at one point she’s asked if she can recognize her babe and she says without hesitation — “Of course. I would recognize my child immediately. I’d know my own blood.” There are things, Jane seems to be saying, that no training or preparation can teach a mother, just as there are things a mother gives a child that no caretaker, no matter how wealthy, can easily substitute.

That’s Jane’s assertion and to Hasmine Kilip’s credit she presents them directly, with total conviction. That she’s easily fooled actually helps her case — she may be intimidated or turned on her head but she never tells a deliberate falsehood; she says exactly what she means, 100%. You stare at her face and for at least a passing moment, maybe longer, can’t help but be sold, however, mildly or partially, on the truth of her words.

A quick google survey shows improving figures on poverty incidence in the Philippines: 16.6% in 2018, down from 23.3% in 2015. That said the numbers remain staggering: 17.6 million Filipinos who don’t earn or possess the P2,145 (around $43) necessary to survive for a year. Of those, 4.5 million are homeless, with 3 million sleeping on sidewalks in Metro Manila alone, and some 200,000 teenagers became pregnant in 2017.

Of course given the information-gathering resources and techniques in the Philippines, these figures are woefully outdated (the latest statistic I’ve managed to uncover is from 2018); 200,000 pregnant teens sounds awful, but not all of them should be presumed homeless (hopefully). I wouldn’t argue that the figures are overstated however; if anything they’re probably understated, as none of these factors in the impact of Duterte’s campaign on illegal drugs (estimated 30,000 dead and counting) or the COVID-19 (coronavirus disease 2019) pandemic and its resulting lockdowns.

The point? Things are bad, not exactly getting worse, but there’s a long way to go for kids like Aries and Jane, not to mention a whole fresh set of problems (Roy at one point has the pair on a tin rooftop sniffing glue, and you think, “How long would they survive in the middle of Duterte’s drug war? And why are they targeted instead of the upper-level criminals supplying the drugs in that war?”). Roy, however, is no nihilist — despite everything, Aries and Jane manage somehow to hang on to their sense of humanity; if they lose everything else, at least they have that. Which isn’t saying much, but is definitely saying something.

DoLE sets up ‘one-stop shop’ job center

THE Department of Labor and Employment (DoLE) will set up a center in Metro Manila to deal with the employment concerns of retrenched workers, including those laid off from ABS-CBN Corp., the Palace said on Thursday.

In a briefing, Palace Spokesman Herminio L. Roque said a “one-stop shop” is being set up to aid all retrenched workers in the capital region, rendering many broadcast personnel redundant.

The plan for the center was put together by Labor Secretary Silvestre H. Bello III.

“I have good news… so tinawagan ko si Secretary Bello. Magkakaroon siya ng one-stop shop center para sa NCR at sa ABS-CBN para makakapag-apply ang retrenched na empleyado ng ABS-CBN (I called up Secretary Bello. He will have a one-stop shop center for [workers from] the National Capital Region and ABS-CBN so those who were retrenched from ABS-CBN can apply),” he said.

Mr. Roque added that the Labor Secretary will also set up a job referral system to help match workers to potential jobs. A job fair is expected to be organized soon.

Last week, the House of Representatives denied the TV network’s franchise renewal, endangering the employment of over 11,000 employees.

In a statement on Wednesday, ABS-CBN said it was forced to start the layoff process after being rejected for a franchise, involving workers at the network and its subsidiaries. — Gillian M. Cortez

AC Energy builds largest wind farm in Vietnam at 210MW

AYALA-LED AC Energy, Inc. is building what is touted to be the largest wind farm in Vietnam, raising its overall renewables capacity to 1,200 megawatts (MW).

On Thursday, the energy firm said it is constructing a 210-MW wind farm in the coastal area of Quang Binh province with partner AMI Renewables Energy Joint Stock Co.

The first stage of construction will deliver a capacity of 109.2 MW, while the second phase will bring 100.8-MW capacity.

“We are excited to embark on what would be the largest wind project for Vietnam as well as for AC Energy,” AC Energy President Eric T. Francia said in a statement.

The project will be using 50 V150 4.2 MW wind turbines with a hub-height of 145 meters from Danish manufacturer Vestas.

AMI AC Renewables, the two firm’s joint-venture platform, eyes the commissioning of the energy farm in the third quarter of 2021 to qualify for the $8.50-per-kilowatt-hour feed-in-tariff of the Vietnamese government, a policy mechanism that boosts renewables investments.

The power companies started their partnership centered on building clean energy plants in 2017. They aim to put up projects with a total capacity of 1,000 MW by 2025.

The Quang Binh Wind Farm project, according to AMI Renewables Chairman Nguyen Nam Thang, is an “important milestone in the strategic plan execution of AMI AC Renewables.”

AC Energy, which aims to be one of the biggest renewables producers in Southeast Asia, places its money in Vietnam, seeing it as a “key” market that is ripe for wind power, according to Patrice R. Clausse, AC Energy’s international chief operating officer. He added that the company wants to help the country meet its increasing power demand. — Adam J. Ang

BSP net income nearly halved in January to May

THE CENTRAL BANK posted lower net earnings in the first five months of the year as revenues fell due to the drop in its interest and miscellaneous income.

The Bangko Sentral ng Pilipinas (BSP) saw its net income drop by 49.7% to P14.04 billion in January to May from the P27.91 billion seen in the same period a year ago.

Revenues also fell 25.77% to P40.52 billion versus the P54.59 billion logged in the first five months of 2019.

Interest income shrank 25.74% to P33.04 billion from the P44.49 billion recorded a year ago.

Miscellaneous income, which includes trading gains, fees and penalties, likewise plunged 25.94% to P7.48 billion from P10.10 billion. This, as net gains on foreign exchange fluctuations sank 74.19% to P2.09 billion from P8.1 billion in the January to May 2019 period.

Expenses also declined 2.83% to P28.57 billion from P31.78 billion.

The BSP’s total assets as of May stood at P5.948 trillion, a 14.6% increase from the P5.191 trillion logged a year ago.

The central bank’s net income in 2019 stood at a record high of P47.1 billion.

Despite provisions from Republic Act 11211 or The New Central Bank Act which exempts the BSP to pay dividends to the national government, the BSP has remitted P21.48 billion in dividends to the national government in March in a bid to boost the country’s war chest to battle the pandemic. — L.W.T. Noble

Stuff to do at home (07/17/20)

Ballet Philippines streams Gabriel Barredo’s Opera

THE 2016 production of Gabriel Barredo’s Opera, which Ballet Philippines President Kathleen L. Liechtenstein called “one of our finest productions,” is currently viewable online via the new Ballet Philippines website (ballet.ph). The ballet — which is based on Mr. Barredo’s exhibit, Opera, which took its inspiration from a Victorian operating theater (“opera” here means “to operate”) — focuses on the beauty and terrifying aspects of the human body as it tells the story of a pair of twins and their mother fighting against an entity called The Watcher.

Ballet Philippines conducts masterclasses online

FOR THE entire month of July, Ballet Philippines (BP) is conducting a series of online masterclasses taught by international dancers. On July 17, New York-based independent choreographer and dancer Jason Kittelberger will be hosting his masterclass from 10:30 to 11:30 a.m. The schedule of other masterclasses can viewed on the BP website at ballet.ph. The masterclasses are free, and registration can be done via https://ballet.ph/sign-up/.

Salcedo Auctions’ Gavel & Block online auction

SALCEDO AUCTIONS will hold an online auction on July 25, 11 a.m. A selection of pieces in this auction are being offered for the benefit of Hands on Manila Foundation, Inc. (HOM) and funds raised will go to the COVID Relief Feeding Program administered by HOM’s partner organization, Advancement for Rural Kids, in Coron, Palawan. The online catalogue is now available at bit.ly/GB_interiors.

Japan Foundation Manila holds Japan Film Week

JAPAN Foundation Manila will hold a spin-off online-only event of its beloved Eiga Sai Japanese Film Festival. Japan Film Week will feature six Japanese films from July 22 to 26 via Vimeo. The online film screening is free on a first-come, first-serve basis subject to limited slot availability. The films can be accessed via https://bit.ly/Japan_Film_Week. For more information visit the Japan Foundation Manila website and Facebook page.

Tirada printmaking exhibit catalog now online

THE EXHIBIT catalog of Tirada: 50 Years of Philippine Printmaking 1968-2018, featuring essays by guest curator Patrick Flores and printmakers Virgilio Aviado, Imelda Cajipe-Endaya and Jose Santos Ardivilla, is now available for digital download in the Cultural Center of the Philippines (CCP) website. The exhibit, which was held at the CCP from May 19 to July 15, celebrated five decades of the Association of Pinoyprintmakers, formerly known as the Philippine Association of Printmakers or PAP. The Tirada exhibit catalog may be downloaded using the link https://www.culturalcenter.gov.ph/events/visual-arts/tirada-50-years-of-philippine-printmaking-1968-2018/details.

Instituto Cervantes de Manila presents Los Santos Inocentes

NEXT IN its ongoing “Classics With You” program, the Instituto Cervantes de Manila will be showing Victor Erice’s 1983 film El Sur. It will be screened with English subtitles from July 18 and 19. It will be accessible to Filipino viewers at: https://vimeo.com/437822879. When entering Vimeo, use this password: clasicoscontigojulio17. Along with this film cycle, Instituto Cervantes and the Embassy of Spain in the Philippines present Cineclub Pelikula, an online cinema club. Video discussions of the weekend’s films are conducted by writer and cultural activist Jessica Zafra every Sunday, 5 p.m., on the Facebook page of Instituto Cervantes Manila (www.facebook.com/InstitutoCervantesManila).

Hana’s Miso Soup

One day, Chie (Hirosue Ryoko) is diagnosed with breast cancer. She marries Shingo (Takito Kenichi), the man who kindly stayed by her side, and at a risk of life or death, gave birth to Hana (Akamatsu Emina). Assailed by a relapse of the disease, Chie, knowing her time is limited, begins to teach Hana about the importance of food and family.

New show at BenCab Museum

JOHN Frank Sabado’s solo show, Distinction, which is up at BenCab Museum’s Gallery Indigo until Aug. 2, can be viewed online at the museum’s exhibit Facebook page(https://web.facebook.com/pg/bencabmuseum/photos/?tab=album&album_id=3113556848702650). The exhibit features Mr. Sabado’s new series of intricate pen and ink drawings that take a deeper look into the distinct ethnic markers of the peoples of the Philippine Cordillera.

Making sense of the pandemic work transition

I was hired as a potential key officer in a major bank. Within the first month on the job, I was placed in a fast-track, entry-level management training position. Rotating through various departments for two years was stimulating and educational. On my third year, however, the high volume of assigned tasks and tight deadlines made it difficult. There was no time to relax and reflect on what’s happening. The learning curve became steep for me. This was made difficult by the lockdown, which forced many of us to work from home. I feel that bank management has tripled the workload to offset the lack of physical monitoring. Now, I feel like quitting. Please give me your advice. — Terrified Anne

Here’s former heavyweight boxer James “Quick” Tillis on his first day in Chicago: “I got off the bus with two cardboard suitcases under my arms in the downtown area and stopped in front of the Sears Tower. I got my suitcases down and I looked up at the tower and said to myself: “I’m going to conquer Chicago. Then, when I looked down, my suitcases were gone!”

Remember the maxim: “When the going gets tough, the tough get going.” It means that when a situation becomes difficult, only the strong will work hard to meet the challenge. Being “strong” means both physically and mentally. An inspirational quote like this should be enough to get you going, no matter the perceived difficulties you’re facing at work.

You must realize that during this difficult time, many people are losing their jobs. It’s just not the right time to complain. What I’m saying is that you’re very lucky compared to other people who have lost their jobs. I believe many people would choose to be in your shoes.

FIVE SMART MOVES
It’s inevitable that in any management development program, you will be required to take on unexpected new challenges. Consider it a puzzle for you to solve. There’s a Japanese saying: “If you fall seven times, stand up eight.” And to help you to do just that, I’m recommending that you explore the following solutions:

One, divide the tasks into bite-size pieces. South African bishop Desmond Tutu once said: “There is only one way to eat an elephant: one bite at a time.” What he meant by this is that everything in life that seems almost impossible and overwhelming can be accomplished gradually by taking on just a little at a time.

If possible, negotiate with your boss to make goals realistic. If not, find a way to overcome the difficulties by offering practical solutions that may not have occurred to your management. More on this in number four below.

Two, accentuate your value by minimizing your weaknesses. Every one of us has limitations. But it should not prevent you from maximizing your value, thereby offsetting whatever weaknesses you have. This is easy to do and as long as you don’t develop an attitude problem, everything is manageable.

As a candidate on the management track, it’s important to choose your battles wisely. The bank chose you because of your strengths. I’m sure they have an idea of your weaknesses as well. It’s good that they chose to ignore your limitations. They can’t be very wrong in their assessment of your potential. Don’t be the person to debunk their image of you.

Three, accept all difficulties as part of growing up. Reframe your point of view. Be positive about all these challenges coming your way. Not every person has the same opportunities. I believe many of your college classmates might want to trade places with you.

It’s time to take everything in stride. Don’t waste the past three years. By accepting the challenges and proving yourself, you’ll know what you are capable of, and your colleagues will come to respect you as well. In no time at all, you’ll be promoted.

Four, challenge the status quo by offering a better solution. Management people are not always paragons of excellence. Just like you, they commit mistakes. You can discover these mistakes by carefully analyzing all current policies and procedures, many of which were established years ago to solve a problem from the time.

In reviewing a particular system, you might discover that the solution is no longer necessary. Start by asking a lot of “whys.” Be prepared to offer a better option. You’ll be glad you did.

Last, find the time to relax. No matter how busy you are, you can always squeeze in about 10-15 minutes out of every hour. It’s healthy to relieve your eyes from staring computer monitors and to avoid prolonged sitting.

You can also try morning walks of at least 30 minutes. You can also try the morning calisthenics practiced in Japanese-run workplaces. There are many examples from YouTube. Take a brisk walk after dinner. All of these give you a chance to loosen up and bring your best self to the job.

TAKE THE INITIATIVE
Whatever you do, no matter the difficulties, don’t be the first person to complain to your boss and colleagues. Everyone has his or her share of problems and you’re expected to do your part in dealing with your own situation. Sure, you can discuss problems with your boss, but be ready to offer alternative solutions.

Many organizations encourage their people to take responsibility. They want individuals willing to take initiative and a certain amount of calculated risk. In the right circumstances, you will be better off proactively solving problems rather than burying your head in the sand and giving up.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

Dilemma of pre-need plan holders

Risk is the possibility of a loss due to an uncertain event that may occur in the future. It includes the probability of the event as well as the severity of the impact. One cannot predict with precision how events will turn out despite all due diligence. This calls for active preparation. A major risk management tool is insurance as a protection for the unknown.

Technically, insurance is the transfer of the risk of a loss from one party (the insured) to another party (the insurer) in exchange for a premium payment. The transaction assures the insured a smaller loss as the insurer compensates or indemnify the insured for the financial loss. Operating based on probabilities and the law of large numbers, the insurer assumes that the premium payments and earnings therefrom will more than cover the operating expenses as well as claims by those insured.

A pre-need plan is one form of insurance. A funeral plan assures that you do not burden your loved ones the details as you pre-arrange everything in case the inevitable happens. Health plans help pay for the covered medical treatments. Education plans help in the matriculation of your children’s school needs. A pension plan is built up during one’s productive years so that one can draw periodic payments upon retirement from work.

On paper, pre-need plans serve a very useful function for the plan holder as it relieves him of the burden when the need arises. For the ordinary citizen, it is putting aside savings and postponing consumption today as a contingency measure so that future needs are adequately addressed.

The Philippines, however, have not been fortunate in the pre-need industry. One big failure in the past was CAP or College Assurance Plan which left millions of Filipino pension and educational plan holders holding an empty bag. People’s hard-earned money were set aside to address a future need but instead even the principal payments were gone after CAP was declared bankrupt. To this day, many plan holders have not even retrieved their principal premium investments in CAP.

This column does not intend to discuss why and how CAP failed. The irreversible truth is that it faltered, and the beneficiaries were paralyzed. The nagging question today is whether history will repeat itself. Please note that when a big player in the industry fails, it is reasonable to suggest that there must be a role that regulators played in the debacle, whether by omission or commission. Economic crises not just here but worldwide always report that both the governed and the governing contribute to the downfall.

I write this in light of an early June 2020 report from no less than the Insurance Commission (IC) that the pre-need industry suffered a net loss of P718.6M in 2019 as companies posted higher liabilities despite an increase in sales. Based on unaudited financial statements, 14 pre-need firms’ combined 2019 bottom line was a reversal of the P2.16B net income posted in 2018. Total liabilities grew 3.81% to P112.78B and reserve liabilities rose 4.7% to P108.65B. Sales, however, increased 11.51% to P22B, 778,033 plans in 2018 vs. 923,370 plus in 2019.

The disturbing element of this report is the performance was prior to COVID-19. With the pandemic, the country was placed in lockdown and in varying degrees of community quarantine. The Philippine GDP is expected to drop drastically in 2020. And surely, the pre-need companies are expected to be affected economically and financially.

There are signs of pending problems. A friend purchased a pre-need pension plan worth P300,000 fully paid over 5 years with the promise of yearly drawdown of P30,000 for X years and return of the principal upon maturity. The company offered a COVID assistance plan through a pre-termination package that will pay lumpsum immediately. Initially, it looked like a generous offer. The catch is the immediate payment is only around P240,000 or 80% of the principal/premium paid. For those with liquidity concerns, the program may be most welcome. But from a rational finance perspective, our plan holder is being literally offered an unwarranted margin discount which pays less than the principal shelled out. He would have been better off not getting the plan from the start.

Another educational plan holder is now entitled to graduation gift per his policy. But the company says because of the pandemic, he will get a 15% margin discount this year, unless he waits for another year to receive the full sum.

What was supposed to be a life vest for emergencies or for an unplanned future is backfiring on our plan holders. Some people will have no choice given the dire situation they are in. But at the end of the day, are our consumers being given a fair deal? Who protects our plan holders? And what lies in the near future once the pandemic economic whammy sets in?

Pre-need plans and insurance are almost real necessities in these days. But if the insured will be at the full mercy of the insurers, how can we help our people who literally have little choice in their hands? Authorities should look into these issues if we are to have a robust and deep financial system which protects the needs of the small and less privileged. Finally, let us not allow the CAP experience to happen again.

Benel Dela Paz Lagua was previously Executive Vice President and Chief Development Officer at the Development Bank of the Philippines. He is an active FINEX member and a longtime advocate of risk-based lending for SMEs. The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

ICTSI’s Royal Capital extends tender offer period

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) announced on Thursday that its subsidiary Royal Capital B.V. was extending to July 29 the period for its tender offer.

In a statement, ICTSI said there was a total nominal principal amount of $65,483,000 of perpetual securities callable in May 2021 submitted by securityholders in the tender offer.

Royal Capital offered a price of $1,007.50 per $1,000 in principal amount of perpetual securities to security holders, ICTSI said.

On July 6, ICTSI announced that Royal Capital was offering cash to the holders of its outstanding $450-million 5.5% senior guaranteed perpetual capital securities. The tender offer ended on July 14 at 5:00 p.m., Central European summer time.

At the same time, Royal Capital had successfully priced a $300-billion offering of senior perpetual capital securities, guaranteed by ICTSI.

ICTSI said the new perpetual securities “confer a right to receive distributions at an initial rate of 5.00% per annum and were priced at 98.979% with a reoffer yield of 5.20% per annum.”

“The new perpetual securities shall rank pari passu with all other outstanding unsubordinated obligations of the issuer, who will have the right to redeem the new perpetual securities on any day from (and including) February 5, 2026 (the first call date) to (and including) May 5, 2026 (the step up date), or on any semi-annual distribution payment date thereafter. The rate of distribution for the new perpetual securities will be reset on the step up date and every five years thereafter,” it added.

ICTSI also reported that the new perpetual securities were widely distributed among fund managers or asset managers, private banks, insurance companies and banks or pension funds, accounting for 64%, 18%, 12% and 6% respectively.

It said that Asia accounted for 91%, while the remaining 9% was allocated to Europe.

“The new perpetual securities benefitted from robust investor demand, allowing ICTSI to implement its largest-ever senior perpetual capital securities tightening of 42.5 bps from initial price guidance of 5.625% area,” the company said.

“This transaction also marks ICTSI’s first perpetual securities issuance since January 2018. The concurrent tender offer was an investor-friendly offering that facilitated investors who wished to roll over to the new perpetual securities whilst improving carry efficiency for ICTSI,” it added. — Arjay L. Balinbin

How PSEi member stocks performed — July 16, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, July 16, 2020.


The Philippine peso is around 50% undervalued against the US dollar

The Philippine peso is around 50% undervalued against the us dollar

Stocks recover as gov’t extends relaxed lockdown

By Denise A. Valdez, Reporter

LOCAL SHARES recovered on Thursday after investor worries eased as the government announced the continuation of a relaxed lockdown in Metro Manila.

The bellwether Philippine Stock Exchange index (PSEi) rose 131.15 points or 2.18% to close at 6,147.66 on Thursday. The broader all shares index also gained 63.44 points or 1.79% to end at 3,607.80.

“The PSEi recovered after President Duterte extended the quarantine measures on Metro Manila instead of enforcing stricter restrictions,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The market was on a downtrend in the past days due to investor anxiety that quarantine measures might be tightened again as the number of coronavirus disease 2019 (COVID-19) cases continued to rise.

But President Rodrigo R. Duterte announced Wednesday night that quarantine measures, which have been relaxed since last month, will remain the same until the end of July.

Restrictions in Cebu City, which was on a strict lockdown the past weeks due to rising COVID-19 cases, were also relaxed starting Thursday. Mr. Mangun said this also helped boost investor confidence as several business activities are based in Cebu City.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the improvement of the PSEi can be attributed to optimism over the development of a COVID-19 vaccine.

News wires reported that the vaccine being developed by United States-based Moderna, Inc. is about to enter its third phase of trials this month. This news did not benefit the local market the past sessions, but started to influence the PSEi on Thursday.

“The PSEi closed much higher as investors focused on COVID-19 vaccine hopes and early signs of an upswing in business activity during the pandemic,” Mr. Limlingan said in a mobile message.

All sectoral indices closed in green territory. Property climbed 86.93 points or 2.93% to 3,047.81; financials added 25.24 points or 2.14% to 1,199.69; holding firms increased 122.78 points or 1.94% to 6,427.30; services picked up 25.04 points or 1.79% to 1,419.02; industrials rose 94.72 points or 1.29% to 7,416.38; and mining and oil gained 18.10 points or 0.35% to 5,181.43.

Value turnover stood at P4.41 billion with 4.8 billion issues switching hands, lower from the previous day’s P7.29 billion with 2.66 billion issues.

“Selling pressure was minimal, however, buyers were still quite cautious as evident in the trade volumes with turnover value at P3.67 billion, just half of the daily average. We may see the main index start to move higher,” Mr. Mangun said.

Advancers outnumbered decliners, 135 against 62, while 37 names ended unchanged. Offshore investors remained sellers, but net outflows fell to P641.67 million on Thursday from P1.65 billion the day prior.

Peso weakens as remittances sink in April

THE PESO weakened anew on Thursday on risk-off sentiment after the steep drop in April cash remittances, which was the worst in nearly two decades.

The local unit closed at P49.535 per dollar on Thursday, shedding 5.5 centavos from the P49.48 finish the day prior, data from the Bankers Association of the Philippines showed.

The peso opened the session at P49.49 per dollar, which was also its intraday best. Meanwhile, its weakest showing was at P49.60 against the greenback.

Dollars traded increased to $768.49 million from the $563.8 million logged on Wednesday.

The local unit’s depreciation came on the back of the deeper contraction in remittances from overseas Filipino workers, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“The peso was slightly weaker but still in its strongest levels in more than three years after the weaker OFW remittances data,” Mr. Ricafort said in a text message.

Data from the Bangko Sentral ng Pilipinas (BSP) released Wednesday showed cash remittances sank 16.2% year-on-year to $2.046 billion in April from the $2.29 billion logged a year ago. The drop is the worst since the 33.5% contraction recorded in January 2001.

Year-to-date inflows also decreased 3% to $9.448 billion as of April against the $9.739 billion seen in the first four months of 2019.

The BSP blamed the decline on the unexpected repatriation of OFWs due to the pandemic. More than 88,000 Filipinos have been repatriated as of mid-July.

Meanwhile, a trader attributed the peso’s weakness to market worries on brewing US-China tensions.

“The peso depreciated from safe-haven demand after China hinted about imposing sanctions against specified US entities and individuals,” the trader said in an email.

China threatened to impose sanctions as US President Donald J. Trump approved an executive order to end preferential economic treatment for Hong Kong in response to Beijing’s imposition of a controversial security legislation on the special administrative region, Reuters reported.

“No external force can block China’s determination and confidence to maintain national sovereignty and security for Hong Kong’s long-term prosperity and stability,” Beijing’s Liaison Office in Hong Kong said in a statement.

For today, Mr. Ricafort and the trader gave a forecast range of P49.45 to P49.65 per dollar. — LWTN with Reuters