How PSEi member stocks performed — July 21, 2020

July 22, 2020 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Tuesday, July 21, 2020.

Philippines slips in UN’s E-Governance ranking

July 22, 2020 | 12:00 am

Peso inches sideways after BSP cuts small banks’ RRR

July 21, 2020 | 9:00 pm

THE PESO closed sideways against the greenback on Tuesday following the reduction in the reserve requirement for smaller lenders and as investors await clarity on further fiscal support in the United States.

The local unit closed at P49.39 versus the dollar on Tuesday, depreciating by 1.50 centavos from its P49.375 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P49.30 per dollar. Its weakest showing was at P49.40 while its strongest was at P49.27 versus the greenback.

Dollars exchanged totaled $676.25 million, an increase from the $492.33 million logged on Monday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the slightly weaker peso came on the back of the latest reserve requirement ratio (RRR) cut.

“The peso exchange rate corrected slightly versus the dollar after the surprise 100 bps (basis points) cut in the RRR of thrift and rural and cooperative banks that will effectively infuse P10- billion additional peso liquidity into the banking system,” Mr. Ricafort said in a text message.

The cut will bring down the RRR of thrift and rural banks to three percent and two percent, respectively.

The Bangko Sentral ng Pilipinas said the reduction is expected to boost smaller banks’ lending capacity to benefit small businesses and rural community-based clients.

This follows the 200-bp reduction in big banks’ RRR to 12% in April.

The Monetary Board has authorized up to 400 bps in reserve requirement ratio cuts for this year.

Meanwhile, a trader attributed the local unit’s decline to bargain hunting as investors await news on new fiscal stimulus measures in the US.

“The peso slightly depreciated on the close from bargain-hunting by market participants during intraday strength as investors look forward to additional US fiscal support being discussed by US President Donald J. Trump and Treasury Secretary Steven T. Mnuchin,” the trader said in an e-mail.

Reuters reported that Mr. Trump’s advisers, together with Democrats, are scheduled to discuss steps related to the national response to the virus on Tuesday. Meanwhile, Republicans are pushing for a $1-trillion relief bill. — LWTN with Reuters

Shares fall on cautious trade as virus cases climb

July 21, 2020 | 9:00 pm

THE LOCAL MARKET ended in negative territory on Tuesday as investors were cautious amid rising coronavirus disease 2019 (COVID-19) cases in the country.

The 30-member Philippine Stock Exchange index (PSEi) fell 14.39 points or 0.23% to 6,136.31 while the broader all shares index declined 5.96 points or 0.16% to 3,599.72.

Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message that the local market declined as investors continued to monitor the daily reports of COVID-19 cases in the country.

“Metro Manila recorded five straight days of more than 1,000 cases in a single day. If cases do not slow down, there would be a higher chance of stricter lockdown measures in the National Capital Region (NCR),” Ms. Alviar said.

Ms. Alviar added that amid rising cases in the country, investors are waiting for the next quarantine measures to be implemented by the government and President Rodrigo R. Duterte’s State of the Nation Address (SONA) on July 27.

“Today’s investors’ participation remained weak at P4.37 billion. It is lower compared with the year-to-date average of P6.5 billion, and last week’s average of P5.1 billion,” Ms. Alviar said on Tuesday.

Meanwhile, PNB Securities, Inc. President Manuel Antonio G. Lisbona said despite the market’s lower close, the PSEi is trading at the low part of the 6,030 and 6,600 consolidation range.

“On a positive note, the peso’s strength despite sustained foreign selling, which has already totaled P74 billion year to date implies that funds are not flowing out of the country, at least for the moment,” Mr. Lisbona said.

The peso closed at P49.39 versus the dollar on Tuesday, depreciating by 1.5 centavos from its P49.375 finish on Monday, data from the Bankers Association of the Philippines showed.

Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said the local market is on a wait-and-see stance as they monitor the government’s response to rising COVID-19 cases in the country.

Sectoral indices ended mixed. Financials retreated 12.43 points or 1.03% to 1,184.97; property shrank 22.21 points or 0.74% to 2,979.93; and industrials went down 36.60 points or 0.48% to 7,470.99

Meanwhile, mining and oil climbed 48.41 points or 0.95% to 5,093.76; services rose 8.11 points or 0.57% to 1,429.96; and holding firms increased 17.15 points or 0.26% to 6,479.88.

Advancers outnumbered decliners, 95 to 91, while 52 names ended unchanged.

Net foreign selling was higher at P582.24 million on Tuesday from the P47.63 million seen on Monday.

PNB Securities’ Mr. Lisbona expects the PSEi to trade within the range of 6,030 to 6,600 in the coming sessions.

“The PSEi seems to respect the 6,000 level as it moves sideways. Immediate resistance may be placed at the 6,350 area,” Timson Securities’ Mr. Pangan said. — Revin Mikhael D. Ochave

Manila testing two local herbs as supplements vs coronavirus

July 21, 2020 | 7:54 pm

THE Philippines has added two medicinal plants to its list of therapeutic supplements in the treatment of patients with the coronavirus.

Anti-cough herb lagundi and tawa-tawa — a popular folkloric treatment for dengue — could soon be tested as supplements for COVID-19 (coronavirus disease 2019) patients, according to the Department of Science and Technology (DoST).

“These have anti-viral properties,” DoST Secretary Fortunato T. de la Peña said at an online briefing on Tuesday. Lagundi was already being used to treat cough and other respiratory infections, he pointed out.

The trial for lagundi, a medicinal herb known scientifically as vitex negundo, could start next month, he added.

The University of the Philippines-Manila Ethics Board has issued clearance for such work and experts were awaiting the Food and Drug Administration’s approval. The project is expected to run for five months.

Meanwhile, President Rodrigo R. Duterte on Monday night ordered the police to enforce lockdown restrictions amid rising coronavirus infections.

The President said failure to use face masks and observe physical distancing are “serious crimes.”

“We have to ask our police to be more strict, violators should be caught,” he said in a televised speech in mixed English and Filipino. “A little shame would put them on.”

“Who wants to get caught?” Mr. Duterte asked. “But if you are brought to the police station and detained there, that would give you a lesson for all time.”

The President’s order was part of a “unified ordinance” crafted by local governments on minimum health standards, his spokesman Harry L. Roque said at a separate news briefing.

Mr. Duterte also said he wanted to buy more face masks that will be given to the public for free.

“I will try to buy as many as I can afford, we will give these to you for free,” he said. An inter-agency task force made up of Cabinet secretaries made wearing face masks mandatory for people leaving their homes.

Mr. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended lockdown on the island twice and thrice for the capital region. The lockdown in Metro Manila has since been eased, with more businesses allowed to reopen with minimal workforce. Mass gatherings remained banned.

Coronavirus infections continue to rise, with many hospitals reaching full capacity for COVID-19 cases.

The government was fast-tracking the setup of four hospitals dedicated to coronavirus cases, Carlito G. Galvez, Jr., chief enforcer of the state’s anti-COVID-19 efforts, said at the same event on Monday night.

These are similar to hospitals built by China in less than two weeks at the height of the coronavirus crisis that started in Wuhan City, he said. — Gillian M. Cortez

Face-to-face classes approved for January

July 21, 2020 | 7:53 pm

PRESIDENT Rodrigo R. Duterte has approved a proposal to allow limited face-to-face classes in coronavirus low-risk areas starting January.

“I’m with you on this,” the President said in a speech on Monday night, referring to Education Secretary Leonor M. Briones’ earlier recommendation. “Let’s try to make ourselves productive.”

Mr. Duterte earlier said he wouldn’t allow face-to-face classes until a vaccine for the virus is found.

The Department of Health reported 1,952 new COVID-19 infections on Tuesday, bringing the total to 70,764. The death toll rose to 1,837 after two more patients died, while recoveries increased by 209 to 23,281, it said in a bulletin.

Government rules bar people younger than 21 years from leaving their homes in places under lockdown. But Ms. Briones said children are at the “lowest risk,” noting that less than 1% of local deaths from the coronavirus were children.

She said on Monday night face-to-face classes would be strictly regulated. She said these classes would be allowed in areas under an altered general community quarantine, and would be on a case-to-case basis.

School facilities would be inspected and health standards would be enforced. Face-to-face learning won’t start until January, she added.

Ms. Briones said students would benefit from classroom meetings once or twice a week. “The limited face-to-face classes close inequality gaps,” she said, adding the pure online learning won’t benefit those who don’t have access to digital equipment.

Classes are expected to begin on Aug. 24 using blended learning strategies that include modules, radio, television and online videos.

Meanwhile, Senator Sherwin T. Gatchalian on Tuesday said distance learning should be kept to prevent the virus from spreading in schools.

“I strongly urge the Department of Education to continue with the distance learning modality and suspend face-to-face classes this coming Aug. 24,” he said in a statement. “This is to protect our learners, parents and teachers from the possibility of infection from the COVID-19 virus.” — Gillian M. Cortez, Charmaine A. Tadalan and Vann Marlo M. Villegas

Beijing working with Belt allies on health

July 21, 2020 | 7:52 pm

THE PHILIPPINES and China along with other Belt and Road Initiative partners are fast-tracking cooperation to improve their health sectors amid a global coronavirus pandemic, Chinese Ambassador Huang Xilian said.

The Chinese government also assured Manila it would be prioritized once Beijing finds a vaccine for the coronavirus disease 2019.

“Against the backdrop of the COVID-19 pandemic, China, the Philippines and other Belt and Road Initiative partners are committed to building a Health Silk Road and a community of common health for mankind,” Mr. Huang said in an article published in the Global Times on Monday.

He also said the Philippines and China were negotiating two-way essential travel and a “green channel” to ensure that supply chains are not disrupted during the crisis.

Mr. Huang said bilateral trade between the two states have reached $19.37 billion in the five months through May, while its direct investment in the Philippines has hit $18.25 million, 82.5% higher than a year earlier.

China has donated 252,000 testing kits, 130 ventilators and 1.87 million medical masks to help the Philippines deal with the coronavirus that has sickened 14.9 million and killed almot 614,000 people worldwide.

Mr. Huang said both countries have continued to synergize the BRI and the Duterte administration’s massive infrastructure program.

“We have coordinated virus prevention and control efforts, resumed work and production, and promoted the construction of key cooperation projects in the Philippines in an orderly manner, helping to stabilize the local economy, ensure employment and improve people’s livelihoods in the country,” he said.

“Steady progress has been made in key projects involving Chinese assistance, such as the two bridges over Pasig River in Manila and the Philippine National Railways South Long-Haul Project,” he added.

The Chinese envoy also said new contracts worth $3.11 billion have been signed in the first five months, with a turnover of $970 million. More China-funded projects would come as the country eases restrictions, he added. — Charmaine A. Tadalan

Regional Updates (07/21/20)

July 21, 2020 | 7:51 pm

Davao City records 10.7% hike in H1 revenue due to business permit renewals in January

DAVAO City recorded a P6.12-billion revenue collection in the first half of 2020, up 10.7% from P5.53 billion in the same period last year, due mainly to business permit renewals which were collected in January. “The increase in the collection is attributed to our stable tax collection. Aside from that, the bulk of collection that we collected were from the Business Permit renewal last January,” City Treasurer’s Office head Lawrence D. Bantiding said in a statement on Tuesday. Income from other taxes and the local government’s economic enterprises such as markets and the transport terminal, however, dropped as the city went on strict lockdown from mid-March to June to mitigate a coronavirus outbreak. Mr. Bantiding said they are optimistic of hitting the P10.3-billion revenue target for the year through stricter permit inspections for the remainder of the year. “For example, the Business Bureau, they must ensure that those who are conducting business must have a permit. For the Office of the City Building Official, they must ensure that all constructions have secured a building permit. All revenue generating offices should intensify their inspection to ensure that all those who need permits from the city should have gotten one and that should translate an additional income for the city,” he said. The city council has passed several ordinances providing relief to businesses and other taxpayers, such as an extension on the 3^rd quarter deadline for real estate tax payments, amnesty to delinquent tax payers, and reduction in rental fees for government-run stalls.

Nationwide round-up

July 21, 2020 | 7:50 pm

Entry of new inmates in local jails suspended to mitigate coronavirus transmissions

PRISONS FACILITIES managed by the Bureau of Jail Management and Penology (BJMP) will not be accepting new inmates until Aug. 31 to prevent coronavirus transmissions. BJMP handles jails at the district, city and municipal levels. Judges nationwide have been ordered not to issue commitment orders to these jails during the moratorium, and instead send newly-arrested individuals to local police stations which have detention facilities. Court Administrator Jose Midas P. Marquez said on Tuesday the order was made upon the request of Interior Secretary Eduardo M. Año. Mr. Marquez also said Police General Archie Francisco F. Gamboa has confirmed that they can accommodate the temporary arrangement. The Aug. 31 date “may be extended in a subsequent circular of the Office of the Court Administrator, if found to be warranted,” reads the order issued on July 21. The Supreme Court has issued several guidelines to address congestion in jails to prevent the spread of coronavirus, such as the release of indigent inmates through reduced bail or own recognizance, and conduct of hearings through video conferencing, among others. From the start of the lockdown on March 17 until July 3 a total of 43,171 prisoners were released nationwide, according to the court. — Vann Marlo M. Villegas

Witness Sebastian’s death won’t affect case vs De Lima — Justice chief

THE DEATH of high-profile inmate Jaybee Sebastian, a witness in the drug-related charges against detained Senator Leila M. de Lima, will not affect the case’s trial, according to Justice Secretary Menardo I. Guevarra. “Jaybee Sebastian is only one in an array of witnesses against Senator De Lima,” he told reporters via Viber. “His loss does not affect in any significant manner the overall strategy of the prosecution in the pending criminal cases,” he added. Mr. Sebastian, a convicted kidnapper and carjacker, testified in 2016 against Ms. de Lima at a House of Representatives probe on her alleged involvement in the illegal drug trade at the national penitentiary. The senator has been detained since February 2017 over charges for conspiring to commit illegal drug trading in prison when she was justice secretary. Mr. Guevarra on Monday directed the National Bureau of Investigation to probe the death of nine high-profile prisoners who were convicted over involvement of illegal drugs, including Mr. Sebastian. The Department of Justice said on Monday that Mr. Sebastian died of coronavirus and his remains were immediately cremated, in accordance with health safety protocols. Bureau of Corrections Director General Gerald Q. Bantag said 21 inmates have died of coronavirus infection since March, according to the DoJ statement. Meanwhile, Senator Ralph G. Recto said on Tuesday a photo or video footage of the remains of prisoners who died from the coronavirus would be enough proof to allay suspicions surrounding the death of high profile inmates. “The proof of death is a photo of the body. If there is, then doubts will be laid to rest,” he said in a statement. Mr. Recto noted that the photo or footage needs only to be presented to the concerned agency and does not have to be publicized. “Show them to the Justice Secretary — and the death certificates and medical records of deceased high-profile drug lords — and all the conspiracy theories in this land, where weaving them is a national hobby, will be buried,” he said. Senate President Vicente C. Sotto III has called for an investigation over the failure of the Bureau of Corrections to report their deaths. — Vann Marlo M. Villegas and Charmaine A. Tadalan

57 deceased OFWs set for return July 28

ANOTHER 57 deceased overseas Filipino workers (OFWs) from Saudi Arabia are expected to arrive home on July 28. “This is the third batch of repatriation being undertaken by an interagency committee initiated by the Department of Labor and Employment (DoLE) last month, and had so far brought home a total of 137 OFWs who succumbed to the COVID-19 and other causes,” DoLE said in a statement on Tuesday. The first batch of 49 OFW remains arrived July 10, while the second batch of 88 were brought home July 19. — Gillian M. Cortez

BI clarifies only long-term visa holders allowed by Aug. 1

FOREIGNERS WITH long-term visas such as permanent or immigrant visas are the only ones who will be allowed to enter the Philippines starting Aug. 1, the Bureau of Immigration (BI) reiterated on Tuesday. Commissioner Jaime H. Morente said foreign tourists, non-immigrant visa holders, and those that fall under other categories are still prohibited from entering based on the policy approved by the national task force handling the coronavirus response. The clarification came after immigration offices at airports and other field offices received several queries on the previous announcement about the partial reopening of the country’s borders to foreigners. — Vann Marlo M. Villegas

Multi-channel approach keys DBP’s cash aid disbursement

July 21, 2020 | 6:58 pm

For state-owned Development Bank of the Philippines (DBP), a multi-channel approach in the disbursement of social amelioration funds proved to be a viable solution in assisting marginalized, often unbanked, Filipinos who were economically affected by the COVID-19 pandemic.

DBP president and chief executive officer Emmanuel G. Herbosa said the bank relied on this unique mechanism in the disbursement of more than P50-billion under the Small Business Wage Subsidy (SBWS) program.

“DBP used a unique fund disbursement approach that harnessed automation, financial technology, and the strength of its partner ecosystems to distribute funds quickly and efficiently to both banked and unbanked recipients.”

He added that DBP was tapped as the sole disbursement bank for the SBWS Program, in part due to its proven model in disbursing similar government subsidies to unbanked beneficiaries of the Rice Farmers Financial Assistance (RFFA) program of the Department of Agriculture.

The SBWS program was paid out in two tranches starting April 30, 2020. The first tranche covered the release of P23.97-billion, while the second tranche, which ended on June 28, 2020, disbursed P22.65-billion to more than three million qualified employees affected by COVID-19 quarantine measures. The SBWS Program Task Force representing the Department of Finance, the Bureau of Internal Revenue, and the Social Security System was responsible in meticulously drawing up and approving the list of qualified beneficiaries.

Herbosa said that DBP utilized PESONet to quickly credit the funds to more than two million employees who have accounts with 58 PESONet participating banks, or who maintain e-wallets with PayMaya, a fintech company. DBP also tapped M Lhuillier, a BSP-licensed non- bank financial institution (NBFI), to disburse the social amelioration funds of more than one million unbanked employees through the latter’s network of more than 2,500 cash outlets nationwide.

Jeffrey Pedrido, 41, of Marilao, Bulacan is among them. A father of three, he works as a driver in a small store selling bikes and strollers. Since he does not have a bank account, Pedrido opted to claim his wage subsidy via cash pick-up at a nearby M Lhuillier branch. “Malaking tulong po ito sa pamilya ko at makakabayad po kami ng mga bayarin.”

Assistance to Rice Farmers

Herbosa also bared that earlier this year, DBP took the same approach in the release of more than P1.485-billion cash assistance to around 297,000 small-scale farmers under the DA’s RFFA Program.

The RFFA is an unconditional cash transfer program for rice farmers in 33 rice-producing provinces across the country who are tilling a land area ranging from 500 square meters up to two hectares. Each beneficiary receives a P5,000 cash aid which can be used for farm inputs and implements.

Herbosa said these disbursement initiatives show how DBP has harnessed technology and its network of partners to deliver innovative financial services responsive to the requirements of the National Government. “DBP has become flexible enough to go beyond its usual brick-and-mortar banking in helping the National Government mitigate the economic impact of the pandemic particularly on low-income households, small businesses and other vulnerable sectors of the economy.”

Regulation looms for online cigarette sales

July 21, 2020 | 6:53 pm

ONLINE selling of so-called ‘sin’ products like cigarettes and alcoholic beverages, which the government relies on for tax revenue, will be subject to registration requirements to ensure only legitimate sellers get to use the platform, officials said.

In a statement Tuesday, the Department of Health (DoH) and Food and Drug Administration (FDA) said they support a proposal to ban unregistered sellers from participating in the online market for “sin” products.

The DoH and FDA said they will work with the Finance and Trade departments to create “a comprehensive regulatory framework” to govern online transactions.

“The Philippines has come a long way in safeguarding the public from the dangers of tobacco and alcohol consumption through its taxation policies and stringent regulatory measures. With wider and easier access to ‘sin’ products through technology, regulatory purview should be expanded to ensure that online selling is similarly covered,” they said.

DoH and FDA said that consumer safeguards require “registration, product quality, and safety mechanisms” that will validate that buyers of the “sin” products are over 18 years old.

“Expanding this regulatory purview to cover the online selling of these ‘sin’ products is a progressive step in protecting the health of Filipinos,” they said.

Early this month, Finance Secretary Carlos G. Dominguez III said his department will move to ban the online sale of alcoholic beverages and tobacco products by unregistered businesses.

In a Viber message Tuesday, Mr. Dominguez said that the DoF will also step up efforts to crack down on cigarette smuggling.

He said the higher excise taxes on tobacco products could increase illicit trade, which the Bureaus of Customs and Internal Revenue are closely monitoring.

“They will intensify their efforts. In the meantime, although the current laws and penalties are sufficient, we will put a study group together to determine if new laws and regulations are required,” he added. — Beatrice M. Laforga

Taguig City being evaluated as potential agri-industrial site

July 21, 2020 | 6:52 pm

TAGUIG CITY is being evaluated as a potential agri-industrial site because its location on the shore of Laguna de Bay could make it a landing spot for produce grown in Metro Manila’s southern and eastern hinterlands.

Agriculture Secretary William D. Dar said Monday that the Department of Agriculture’s (DA) current partnership with the city could be a launch pad for further cooperation in developing agri-industrial operations, to process food and add value to the harvests of farmers and fisherfolk in Rizal, Laguna and beyond.

On Monday the DA launched an agricultural assistance program to enhance the city’s urban food security and nutrition.

Mr. Dar said the project could serve as the initial stage for the establishment of an agri-industrial center.

“Farmers and fisherfolk from Rizal and Laguna could come directly to Taguig using their boats to bring their produce and see to it that we have all the cold storage, warehouses, and of course the markets for people to (visit) in a big way,” Mr. Dar said.

Mr. Dar said the program will also assist vulnerable communities and help develop Taguig’s urban ecological management.

According to Mr. Dar, agri-industrial sites are expected to provide facilities, capital, and production know-how to small farmers, while also boosting their productivity and generating jobs to strengthen the economy.

The DA is also hoping to develop New Clark City in Tarlac province as an agri-industrial center. — Revin Mikhael D. Ochave