Total COVID-19 cases and vaccine regional breakdown (as of March 23)

March 25, 2021 | 12:00 am

How PSEi member stocks performed — March 24, 2021

March 25, 2021 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, March 24, 2021.

Stocks rise on bargain hunting, easing virus fears

March 24, 2021 | 9:00 pm

By Keren Concepcion G. Valmonte

PHILIPPINE stocks inched up on Wednesday as investors hunted for bargains and fears about a fresh surge in coronavirus infections eased.

The benchmark Philippine Stock Exchange index (PSEi) went up by 50.66 points or 0.78% to close at 6,497.01. The broader all-share index increased by 21.61 points or 0.55% to 3,934.93.

“The PSEi continued higher on less selling pressure and declining trading volumes,” Christopher John J. Mangun, research head at AAA Southeast Equities, Inc. said in an e-mail.

“The sentiment has improved as fears of the government losing control over the pandemic situation has subsided,” he added.

The bump was likely due to bargain-hunting in oversold issues, China Bank Securities Corp. Research Head Rastine Mackie D. Mercado said.

“However, further upside appears limited from a technical perspective as the 6,500 resistance is now overhead,” he said in an e-mail.

Majority of the sectoral indices closed higher on Wednesday except for mining and oil, which fell by 8.39 points or 0.1% to 8,230.73.

Meanwhile, services increased by 25.79 points or 1.82% to finish at 1,440.18, while industrials rose by 102.75 points or 1.22% to end at 8,492.96. Property stocks rose by 35.75 points or 1.11% to 3,233.4, financials improved by 10.55 points or 0.75% to close at 1,415.28 and holding firms gained 5.25 points or 0.08% to 6,517.98.

Value turnover soared to P21.32 billion, with 9.27 billion shares switching hands from P5.04 billion with 2.3 billion issues traded on Tuesday.

Decliners outperformed advancers 98 against 90, while 64 shares closed unchanged.

Net inflows reached P371.67 million, a reversal from the P690.22 million in net foreign selling on Tuesday.

The increase in trading volume may also be traced to the debut of the real estate investment trust (REIT) of DoubleDragon Properties Corp. at the local bourse. It was only the second REIT to be listed on the PSE.

“It started slightly higher, but then returned and closed at its initial public offering price,” Mr. Mangun said. “It may have been affected by the current risk off sentiment of investors due to market conditions.”

Market weakness was expected in Thursday’s trading session. Investors were expected to remain cautious until there are better signs of improvement in the country’s COVID-19 situation.

“We also note that upside is likely to be tempered over the near term as the possibility of more restrictions continue to be in play,” Mr. Mercado said.

Peso weakens as virus infections continue surge

March 24, 2021 | 9:00 pm

THE PESO depreciated against the dollar on Wednesday as market players remained cautious amid a fresh surge in coronavirus infections and before the central bank’s policy meeting.

It closed at P48.665 a dollar, weaker than its P48.631 close on Tuesday, according to data posted on the Bankers Association of the Philippines website.

The peso started trading at P48.69 a dollar, weakened to as much as P48.70 and strengthened to as much as P48.665.

Dollars exchanged fell to $649.75 million from $716.34 million on Tuesday.

Cautious market sentiment before the Bangko Sentral ng Pilipinas (BSP) policy meeting may have also caused the peso to weaken.

Nineteen analysts in a BusinessWorld poll last week unanimously said they expected the central bank to keep policy rates to support the economy amid the pandemic.

They also expect the monetary policy pause amid a decline in lending activity and rising consumer prices due to low supply after recent typhoons and an African Swine Fever outbreak.

The key policy rate is at 2% after the BSP slashed rates by 200 basis points during the health crisis last year.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the weaker peso to risk-off sentiment amid the surge in infections.

The Department of Health reported 6,666 new cases on Wednesday, bringing the total to 684,311. The daily tally hit a record 8,019 infections on Monday.

Mr. Ricafort expects the peso to trade at P48.60 to P48.70 on Thursday. — Luz Wendy T. Noble

Pacquiao files P335-B stimulus bill, including P100B in cash aid

March 24, 2021 | 8:18 pm

SENATOR Emmanuel D. Pacquiao filed a bill Wednesday calling for a further P335 billion in stimulus spending to aid in the recovery from the economic downturn.

The legislation was assigned the number Senate Bill (SB) No. 2123, which will become the Expanded Stimulus Package Act of 2021 if passed.

SB 2123 represents the latest attempt by legislators to get the government to loosen its purse strings for stimulus spending a year before national elections. A pending bill in the House proposes a P420-billion package for a would-be third Bayanihan law.

Mr. Pacquiao’s bill proposes to spend P100 billion in aid to low-income individuals, P100 billion for wage subsidies to employers, and P100 billion in “capacity-building” programs for industries severely affected by the pandemic.

It also proposes to spend P30 billion in assistance to displaced workers, while allocating P3 billion for internet allowances of K-12 teachers and students in the public schools; and P2 billion for similar internet allowances at the tertiary level for institutions supervised by the Commission on Higher Education.

“Decisive action (is needed) at the soonest possible time,” according to the bill’s explanatory note.

“Now is the perfect time for the fiscal managers of our government to commence with the rehabilitation of our economy,” Mr. Pacquiao said in a statement, noting that the bill “fills (a) void in our current system as it addresses the gaps in our policies while maintaining transparency measures among our agencies.”

The previous stimulus law to deal with effects of the pandemic was the P165.5 billion Republic Act No. 11494 or Bayanihan to Recover as One Act, also known as Bayanihan II. It was signed by President Rodrigo R. Duterte in September.

In December, the President extended the validity of Bayanihan II funds until June 30, 2021.

Bayanihan I was Republic Act No. 11469, or the Bayanihan to Heal as One Act. It realigned P275 billion from last year’s budget for pressing pandemic spending items, including the cash aid provided to around 18 million individuals. — Vann Marlo M. Villegas

DoTr seeking bids for South Commuter Railway building and civil engineering works

March 24, 2021 | 8:18 pm

THE Transportation department has started soliciting bids for the building and civil engineering works contract package of the South Commuter Railway, covering about 7.9 kilometers of at-grade and viaduct railway track structures, including an elevated station at Buendia and at-grade stations at EDSA and the Senate.

The deadline for submission of bids is June 22, the department said in an announcement Wednesday.

The project is funded by the Asian Development Bank (ADB).

Bidders must have average annual construction turnover of $150 million and working capital of $30 million, and provide a bank security worth $8 million.

“Open competitive bidding will be conducted in accordance with ADB’s Single-Stage One-Envelope without pre-qualification procedure and is open to all bidders from eligible countries as described in the bidding documents,” the department said.

The Transportation department announced separately that it is also seeking bidders for another building and civil engineering works package of the South Commuter Railway, involving about 5.8 kilometers of at-grade and viaduct railway track structures, including elevated stations at Bicutan and Sucat.

The deadline for submission of bids is also June 22.

Bidders must have average annual construction turnover of $110 million and working capital of $20 million, and need to present a bank security of $6 million. — Arjay L. Balinbin

PCC asked to look into alleged market manipulation in pork imports

March 24, 2021 | 8:18 pm

A LEGISLATOR called on the Philippine Competition Commission (PCC) on Wednesday to investigate possible market manipulation in pork imports, resulting in high prices.

In a briefing Wednesday, Marikina City Representative Stella Luz A. Quimbo said rising pork prices may not be solely due to supply disruptions as a result of African Swine Fever but also due to deliberate attempts to restrict the supply of imports.

“I call on the Philippine Competition Commission to take action and investigate possible anti-competitive behavior in the pork industry and penalize all those proven to have violated the law,” she said.

She added that based on past investigations into rising pork prices, legislators have found that the import quota for pork, known as the minimum access volume (MAV), was not fully utilized. The MAV is currently set at 54,000 metric tons (MT), which the Department of Agriculture plans to raise to 404,000 MT to expand supply and lower market prices.

Ms. Quimbo said there is no need to expand the MAV, especially by over 600% which she called “suspicious.”

She said it is a “mystery” why importers do not fully use their permits to import even with the supply of pork running low as a result of the ASF outbreak. Restricting supply is deemed a form of price fixing and violates the Philippine Competition Act.

“Bakit hindi ginagamit ang lahat ng permits to import lalo na’t kelangan na kelangan sa ngayon? Wala bang multa sa hindi paggamit ng isang limitado na pribilehiyo? Pasensya na, pero naiisip ko tuloy na baka merong pork mafia sa likod nito (Why are the permits to import not fully utilized especially now that there is demand for pork? Is there no penalty for not using this privilege? I’m sorry but I think there is a pork mafia behind this),” she said. — Gillian M. Cortez

DoE orders agencies to ensure continuous power supply after quarantine restrictions renewed

March 24, 2021 | 8:17 pm

electric pylons

THE DEPARTMENT of Energy (DoE) said it has ordered its oil and electric power bureaus to ensure the unimpeded delivery of power during the reimposition of stricter forms of quarantine on parts of the country.

Energy Secretary Alfonso G. Cusi issued the order through a memorandum dated March 23 to the Oil Industry Management Bureau and Electric Power Industry Management Bureau.

“The DoE will ensure continuous power services in the entire country, and not only in areas under GCQ (general community quarantine). We will keep checking if the supplies of electricity and oil are enough so the country’s economy can move forward, despite the coronavirus disease (COVID-19),” Mr. Cusi was quoted as saying.

The department said that Mr. Cusi also appointed Task Force on Energy Resiliency Chairman Alexander S. Lopez as the DoE’s OIC-alternate representative to the Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases.

President Rodrigo R. Duterte has approved the IATF’s recommendation to keep the National Capital Region and Bulacan, Cavite, Laguna and Rizal under GCQ with added restrictions between March 22 and April 4, Presidential Spokesperson Herminio L. Roque, Jr. said.

Last month, the DoE said that two of its units are working on providing backup power for COVID-19 vaccine storage and administration facilities.

Energy Undersecretary and Spokesman Felix B. Fuentebella has said that the plan to ensure continuous power for vaccine repositories involved coordination with the grid operator and distribution utilities, while ensuring available back-up power from generators at the facility or supplied by the local government unit. — Angelica Y. Yang

NCR records pickup in wholesale price growth of building materials

March 24, 2021 | 8:17 pm

GROWTH in the wholesale price of construction materials in Metro Manila hit a 16-month high in February to 2% year on year, according to the Philippine Statistics Authority.

Wholesale construction materials prices in the National Capital Region (NCR), as reflected in the construction materials wholesale price index (CMWPI), rose 2% year on year in February, accelerating from 1.2% in January. the year-earlier growth rate was 1.5%.

The February outcome was the highest reading since the 2.6% logged in October 2019. Wholesale prices reflect bulk buying by large construction firms engaged in major projects.

“The pickup in some construction activity after several months of lockdown may have nudged prices slightly higher but base effects may have also contributed to the uptick for prices of this sector,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail.

Construction prices slowed in 2020 as demand eased due to shut down in economic activity to limit the spread of the coronavirus disease 2019 (COVID-19). Last year, the CMWPI grew by an average of 1.2%, well below the 3% average in 2019.

The pickup in February was driven mainly by glass and glass products, which rose 14.4%, compared with a month earlier, when prices in the category were unchanged. This was followed by reinforcing and structural steel (3.3% from 1.7%); concrete products and cement (1.2% from 0.8%); doors, jambs, and steel casements (0.5% from 0.2%); and hardware (1.5% from 1.4%).

The wholesale price of electrical works rebounded to 0.4% growth in February from a 0.01% decline in January.

Construction materials that posted slower price growth compared with January were: sand and gravel (3.5% from 3.6%), lumber (2.8% from 3.6%), tileworks (2.2% from 2.6%), PVC pipes (0.6% from 1.3%), and painting works (0.3% from 0.4%).

Year-on-year price growth was unchanged for galvanized iron sheets (0.4%), plywood (0.4%), machinery and equipment rental (0%), and asphalt (0%).

“Although construction activity may be hampered by the return to stricter mobility curbs, authorities have indicated that economic activity outside certain services will continue. Thus, we may see only a modest pullback in construction efforts while the base effects may still lift prices to show some extent on a year-on-year basis,” ING Bank’s Mr. Mapa said.

Following a surge in COVID-19 cases, the government ordered new restrictions within the so-called “NCR Plus” bubble between March 22 and April 4. The orders ban non-essential travel to and from the bubble, while closing or lowering the operating capacity of selected establishments.

“Construction and the real estate sectors have been one of the most impacted by the ongoing pandemic and the stark correction in prices and concurrent drop-off in demand for both commercial and residential developments will likely keep prices subdued in the near term,” Mr. Mapa added. — Marissa Mae M. Ramos

Regulator says power distributors need to tap more renewable energy to meet 2040 target

March 24, 2021 | 8:12 pm

AN ENERGY regulator said distribution utilities need to tap more power from renewable sources if the Philippines is to meet the projected goal of a 55.8% share of renewable energy (RE) in the power mix by 2040.

They said the 1% renewable quota set for the renewable portfolio standards (RPS) program must be increased to at least 2.52%, a National Renewable Energy Board (NREB) official.

The DoE is targeting an RE share in the power mix of 37.3% by 2030 and 55.8% by 2040 in its draft National Renewable Energy Program (NREP).

On Tuesday, NREB Chairperson Monalisa C. Dimalanta said that the DoE held a public consultation last week on the draft of the 2020-2040 National Renewable Energy Program.

“We reached the same conclusion. We will not realize the target RE share by 2030 if we were to retain the RPS level at the current 1%. This level will need to be increased to at least 2.52(%) by 2023 if we are to have a fighting chance to reverse the decline in trajectory (of renewables adoption) over the last 10 years,” Ms. Dimalanta said during the 2^nd LNG & Clean Energy Investment virtual summit.

The RPS program requires distribution utilities to tap eligible RE facilities for a portion of their supply needs.

At the consultation, Ms. Dimalanta said that the DoE and NREB presented their projections for RPS quotas of 1%, 2.52%, 2.92% as well as a no-RPS scenario over a 10 and 20-year period.

“In both models, it is only by increasing the RPS levels to more than 2.5% starting 2023 that we can ensure a steady increase in RE share in the system, reverting to its 2008 level of 34% by 2030 and increasingly dominating the mix by 2040 with more than 55% share,” Ms. Dimalanta said.

She added that the NREB also sees the need for three types of programs — mandatory, voluntary, and “transition enablers” — which can help address the country’s so-called “energy trilemma.” The trilemma requires the industry to confront the need for energy affordability and access, energy security, and environmental sustainability.

Mandatory programs include RPS and green energy auction. The voluntary programs include the net-metering program and the green energy option program. Transition enablers involve grid and off-grid solutions.

“The task at hand is beyond what a single agency or group can do. It requires all hands to be on deck and all eyes focused on a shared vision for an energy-secure and sustainable future,” she said. — Angelica Y. Yang

Agricultural trade falls 6.8% by value in fourth quarter

March 24, 2021 | 8:12 pm

Banana exporters ask gov’t to improve access to key markets

AGRICULTURAL trade fell 6.8% year on year to $4.66 billion in the fourth quarter, reflecting a decline in both exports and imports, the Philippine Statistics Authority (PSA) said.

The PSA said agricultural exports fell 10.4% to $1.47 billion in the three months to December. The category accounted for an 8.2% share of the country’s exports during the quarter.

Edible fruits and nuts and peel of citrus fruits and melons accounted for $485.64 million or 33.1% of total agricultural exports.

Exports of animal or vegetable fats and oils and their cleavage products were worth $231.25 million; preparations of vegetables, fruit, nuts or other parts of plants $197.32 million; and tobacco and manufactured tobacco substitutes $123.78 million.

Agricultural imports during the fourth quarter declined 5% year on year to $3.19 billion, accounting for 13.5% of all imports.

Cereals were the top imported commodity at $523.22 million, followed by residues and waste from food industries and prepared animal fodder at $401.57 million, and miscellaneous edible preparations $393.47 million.

Within ASEAN, Malaysia was the leading destination of Philippine agricultural exports accounting for 40.9% of the total or $71.60 million, while Indonesia was the top source of agricultural imports with 31.9% or $315.51 million.

The PSA said the top agricultural products exported to other ASEAN countries were tobacco and manufactured tobacco substitutes valued at $61.73 million; animal or vegetable fats and oil and their cleavage products, prepared edible fats, and animal or vegetable waxes, $40.31 million; and edible fruit and nut and peel of citrus fruit melons, $11.70 million.

Miscellaneous edible preparations were the top agricultural commodity imported from ASEAN countries, valued at $273.63 million; followed by animal or vegetable fats and oil and their cleavage products, prepared edible fats, and animal or vegetable waxes, $239.03 million; and cereals, $132.44 million.

According to the PSA, the Netherlands was the top buyer of Philippine exports and supplier of agricultural products in the European Union, tallying $90.57 million and $70.92 million. — Revin Mikhael D. Ochave

DoE extends deadline for RE firms to apply for safety officer permits

March 24, 2021 | 8:11 pm

THE Department of Energy (DoE) told registered renewable energy (RE) developers that it will extend the deadline to apply for safety officer permits (SOP) to the end of March.

In a statement, the DoE said the SOP deadline has been revised following the full migration of SOP permit applications to the online Energy Virtual One-Stop Shop (EVOSS) platform.

“All RE Developers whose deadline to file has lapsed are hereby allowed to file SOP applications until March 31, 2021,” the DoE said.

The department added that it will not charge penalties for filing beyond the original deadline.

According to a department circular issued in 2012, an RE developer is required to renew its safety officer or safety engineer permit a month before expiry.

“The Bureau shall issue a new permit only after reviewing the qualifications and meritorious service record of the applicant, and compliance with… accreditation requirements,” the DoE said in its Renewable Energy Safety, Health and Environment Rules and Regulations.

In the deadline announcement, the DoE said developers were previously required to file their SOP applications before the permit process was moved to EVOSS. — Angelica Y.
Yang