Peso moves sideways ahead of BSP policy meeting
THE PESO closed sideways versus the greenback on Thursday as investors awaited the central bank’s monetary policy decision, which came after the market’s close.
The local unit finished trading at P50 per dollar on Thursday, depreciating by two centavos from its P49.98 close on Wednesday, data from the Bankers Association of the Philippines showed.
The peso opened the session at 50.05 per dollar, which was also its weakest showing for the day. Meanwhile, its intraday best was at P49.95 against the greenback.
Dollars traded reached $848.93 million on Thursday, higher than the $671.3 million seen on Wednesday.
The peso moved sideways yesterday as investors were on the lookout for leads from the Monetary Board’s policy-setting meeting, a trader said.
“Basically, the range was very tight. I think a lot of market players were awaiting the result of the policy meeting, people are speculating what will be done and it depends on the comments that will be made and if there will be changes in the rates,” the trader said in a phone call.
Ten out 13 economists polled by BusinessWorld earlier this week expected the Bangko Sentral ng Pilipinas (BSP) to keep rates steady on Thursday, saying it is likely to wait to better gauge the impact of the pandemic on the economy.
The BSP had cut rates by 125 basis points so far this year, bringing the overnight reverse repurchase, lending and deposit rates to record lows of 2.75%, 3.25% and 2.25%, respectively.
BSP Governor Benjamin E. Diokno said earlier this month they are “happy” with where the policy rates are but said the BSP continues to have ammunition if the situation gets worse.
Aside from the policy decision, investors were also cautious amid the rise of coronavirus disease 2019 (COVID-19) infections in the US, another trader said.
“The peso depreciated amid increasing concerns about the strong resurgence of new COVID-19 cases in various US states and some caution ahead of the BSP policy meeting,” the second trader said in an e-mail.
The first trader expects the peso to play around the P49.90 to P50.20 band versus the dollar today while the second trader sees the local unit moving around the P49.90 to P51.10 levels. — L.W.T. Noble
Stocks drop further on virus, economic worries
THE LOCAL MARKET closed lower on Thursday amid investor concerns over climbing coronavirus disease 2019 (COVID-19) cases and a dimmer outlook for the Philippine economy.
The 30-member Philippine Stock Exchange index (PSEi) fell by 70.57 points or 1.14% to close at 6,118.26. The broader all shares index lost 42.45 points or 1.16% to 3,600.98.
PNB Securities, Inc. President Manuel Antonio G. Lisbona in a text message blamed the market’s close on investor concern that the country’s COVID-19 cases may also increase after reports of rising infections in the United States.
“The market continued its downward trek today, closing below our first support level at 6,130, as investors chose to cash in on their positions out of COVID-19 concerns,” Mr. Lisbona said on Thursday.
As of June 25, total COVID-19 cases in the United States reached 2.38 million, with 121,979 people dying from the virus, according to the Johns Hopkins University Center for Systems Science and Engineering COVID-19 dashboard.
Aside from rising COVID-19 cases, for Philstocks Financial, Inc. Research Associate Claire T. Alviar, the market’s performance was heavily affected by the International Monetary Fund’s (IMF) revised Philippine economic outlook.
“(The) IMF projected the Philippine economy to shrink by 3.6%, from April’s forecast of 0.6% growth. Sentiments were dented as the figure is worse than the World Bank’s 1.9% contraction estimate and the government’s estimate of 2 — 3.4% decline,” Ms. Alviar said in a mobile phone message.
All sectoral indices fell on Thursday except for property, which rose 6.74 points or 0.22% to close at 3,033.84.
“Property sector is the sole gainer today due to bargain hunting after the sell-off on Wednesday,” Ms. Alviar said on Thursday.
Mining and oil dropped 154.04 points or 2.92% to 5,119.32; financials retreated 31.96 points or 2.54% to 1,225.07; holding firms went down 93.48 points or 1.44% to 6,358.63; services shrank 17.32 points or 1.25% to 1,366.84; and industrials fell 54.54 points or 0.71% to 7,575.52
Value turnover stood at P6.75 billion with 1.34 billion issues switching hands, versus the P6.64-billion worth of 3.8 billion issues on Wednesday.
Decliners outpaced advancers, 139 to 58, while 38 names remained unchanged. Net foreign selling on Thursday narrowed to P662.42 million compared to P2.07 billion the previous day.
“We are looking at some psychological support at 6,000 though if things worsen, we might find ourselves back at 5,700 to 5,800,” Mr. Lisbona said.
Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a text message that the next major support area is around the 6,000 level while resistance remains at the 6,600 level.
“Tomorrow (Friday) being the last day of the week, we may have to observe if investors would be comfortable holding positions through the weekend,” Mr. Pangan said. — Revin Mikhael D. Ochave
Less than half of 800,000 public teachers trained for new normal
By Charmaine A. Tadalan, Reporter
LESS than half of the country’s 800,000 public school teachers have been trained for distance learning amid a coronavirus pandemic, leading senators to question the school system’s readiness to start online classes in August.
Education Undersecretary Diosdado M. San Antonio told a Senate hearing about 40% or 337,486 public school teachers have been trained so far, they expect to train the rest in two months.
“We hope to be able to provide the training for the remaining 60 of our fellow teachers this coming July,” he told senators.
The Department of Education’s (DepEd) division and regional offices have also been training teachers in the provinces, he added.
“Aug. 24 is fast approaching,” Senator Francis N. Tolentino said at the hearing.” What’s the plan? If only 40% of teachers are ready, what about the other 60%?”
Some senators also criticized the agency for failing to map out areas where different learning methods would be used.
“Shouldn’t you have mapped this out by June?” Maria Lourdes Nancy S. Binay told the hearing. “The training that you provide should be appropriate to the area.”
The Senate education committee was tackling bills that seek to adopt education policies under the so-called new normal.
Senator Sherwin T. Gatchalian, who heads the panel, cited the importance of mapping, which happens to be a provision of Senate Bill 1565.
“That mapping provision is included in my bill because you can’t plan without knowing, you can’t plan without data,” he said. “Mapping is a basic form of data collection.”
Education officials said they were still gathering data for the mapping through a poll that students and their parents answer during enrollment.
“We’re getting there,” Education Undersecretary Tonisito M.C. Umali told lawmakers, adding that they expect to come up with the best learning methods by July.
He said DepEd had yet to print the learning materials but they expect to do this before classes start in August.
Education Secretary Leonor Briones earlier said face-to-face classes won’t start until a vaccine for the novel coronavirus that has sickened more than 30,000 and killed about a thousand people in the Philippines is found.
She took her cue from President Rodrigo R. Duterte, who has said he wouldn’t allow classes to open without a vaccine given the risk of an outbreak in schools.
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 the quarantine for the island twice and thrice for the capital region. The lockdown in Metro Manila has since been eased, but mass gatherings across the nation remained banned.
The Philippines has four levels of lockdowns — enhanced, modified enhanced, general and modified general community quarantine.
COVID-19 cases top 33,000; 1,212 dead
THE DEPARTMENT of Health (DoH) reported 778 new coronavirus infections on Thursday, bringing the total to 33,069.
The death toll rose to 1,212 after eight more patients died, while recoveries rose by 255 to 8,910, it said in a bulletin.
The government aims to reach one million COVID-19 tests by next month, as it boosts its testing capacity, Vivencio B. Dizon, deputy chief enforcer of the country’s anti-coronavirus measures, told a news briefing on Thursday.
The government seeks to test 10% of the country’s highly dense areas and 2% of the entire country, he said.
“We will push for more testing until it reaches our target of 10% to 12% of highly/densely populated areas.” Mr. Dizon said. These include Metro Manila, Central Luzon, Calabarzon, Cebu and Davao.
Mr. Dizon said they expect to test more than 2% of the population in the next few months.
Almost 23,000 tests have been conducted as of June 22, Monday. Daily testing capacity has reached 50,000. — Vann Marlo M. Villegas and Gillian M. Cortez
Bill wants to remove Aquino name from international airport
THREE congressmen have filed a bill seeking to rename the Ninoy Aquino International Airport as the Paliparang Pandaigdig ng Pilipinas (Philippine International Airport).
“We need a more representative branding for the international gateway of our country,” Deputy Speaker and presidential son Paolo Z. Duterte, one of the bill’s authors, said in a statement on Thursday.
The other authors of the bill were Marinduque Rep. Lord Allan Jay Q. Velasco and ACT-CIS Party-List Rep. Eric G. Yap.
The Manila International Airport was renamed Ninoy Aquino International Airport — in honor of the political nemesis of the late dictator Ferdinand E. Marcos — through a law passed in 1987.
Corazon C. Aquino replaced him as President after he was ousted by a popular street uprising in 1986.
It was President Rodrigo R. Duterte who allowed the dictator to be given a hero’s burial in November 2016 amid protests from Marcos critics.
Former Senator Ferdinand R. Marcos, Jr. the strongman’s son, had courted the elder Duterte to become his running mate in the 2016 national elections.
Mr. Duterte earlier raised the possibility of the younger Marcos becoming vice president if he wins his election protest against Vice President Maria Leonor G. Robredo. — Genshen L. Espedido
Live births may rise by 13% on lockdown
THE PHILIPPINES expects almost two million live births next year — 13% or 214,000 more than usual — as people mostly stayed home amid a coronavirus pandemic.
About 600,000 Filipino women are also expected not to get their family planning supplies amid a lockdown meant to contain the pandemic, the Commission on Population and Development (PopCom) tod ABS-CBN News on Thursday, citing a study by the University of the Philippines’ Population Institute and United Nations Population Fund.
“Village health centers might not have enough staff members, so we’re urging local governments to please deliver the family planning supplies from house to house,” PopCom Executive Director Juan Antonio A. Perez III said.
There were about 1.7 million live births in 2018, he said. A tenth of the births will be among women below 20 years, he added.
The lockdown will increase the number of adolescents with unmet family planning needs by 15,000 to 178,000, Mr. Perez said.
“Because of the restrictions of movement as well as the reduction of access of women and men to family planning supplies, there will be at least one pregnancy for every three women with an unmet need for family planning,” he said in a separate statement yesterday.
Mr. Perez said emergency measures for family planning are in place, including home delivery of three months’ worth of supplies.
Health centers are also open to give injectables and subdermal implants to women who wish a more lasting contraceptive effect, he said. — Genshen L. Espedido
Nationwide round-up
Court dismisses inciting to sedition charge against teacher
A COURT in Olongapo City dismissed the inciting to sedition charge against a teacher who was arrested for a social media post offering a P50-million reward to anyone who kills President Rodrigo R. Duterte. In a 15-page decision, Judge Richard A. Paradeza granted the motion to quash of Ronnel A. Mas, saying the court is “stripped of any jurisdiction” due to the unlawful warrantless arrest of the suspect. “As there is apparent deprivation of the constitutional rights of accused Mas in this case, particularly the legality of his arrest, this court did not acquire jurisdiction over his person,” the ruling said. The National Bureau of Investigation in Dagupan, the judge said, “had no personal knowledge of the facts and circumstances that the person to be arrested has indeed committed the crime” at the time of the arrest. The Department of Justice resolved that Mr. Mas’ arrest was illegal but indicted him of inciting to sedition based on his confession to the media. The court said extrajudicial confessions must conform to constitutional requirements to be admissible as evidence. “In our criminal justice system, the extrajudicial confession has no probative value as it was taken without competent and independent counsel present to assist the appellant. Verbal admissions made without the assistance of counsel are inadmissible,” the decision reads. The judge acknowledged that the social media post is “despicable and provocative” and those who post such should be made liable, but without compromising constitutional rights. — Vann Marlo M. Villegas
Senator seeks inquiry on fake PWD cards
SENATOR JUAN Edgardo M. Angara on Thursday sought an inquiry on the issuance of identification cards for persons with disability (PWD) following reports that “fake” ones have been acquired to benefit from the 20% discount. “We need to tighten up the process involved in issuing these cards so that only legitimate PWDs will enjoy the benefits under the law,” Mr. Angara said in a statement as he filed Senate Resolution No. 455. Under Republic Act No. 10754, PWDs are entitled to at least 20% discount and exemption from value-added tax on certain goods and services such as medicines, movie tickets, transport fares, and medical services. The Department of Trade and Industry, through the Fair Trade Enforcement Bureau, is now investigating recent reports that an entire family acquired PWD cards to take advantage of the benefits. “The exploitation on the use of the benefits and privileges specifically intended to help alleviate any financial burden encountered by PWDs should not be tolerated especially at this time when establishments like restaurants, entertainment centers and hotels are still struggling from the impacts of the COVID-19 pandemic,” Mr. Angara said. — Charmaine A. Tadalan
Bond market expansion slows in first quarter
THE bond market expanded in the first quarter of 2020 but at a slower rate compared to a year earlier, with both government and corporate bonds posting growth, the Asian Development Bank (ADB) said.
According to the June issue of ADB’s Asia Bond Monitor report released Thursday, peso bonds expanded 7.9% year on year to P7.106 trillion in the first three months while growing 6.9% quarter on quarter.
In both cases, growth rates were below the year-earlier rates of 17.8% year on year and 8% quarter on quarter.
Across emerging East Asia, the Philippine bond market was the second-fastest growing on a quarter-on-quarter basis, behind Vietnam’s 9.5% and ahead of China’s 4.9%. The sub-region consists of China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Thailand and Vietnam.
“The region’s bond market growth was tempered by the risk-off sentiment affecting emerging markets, which was brought about by the slowdown in the global economy and the onset of the coronavirus disease (COVID-19) during the quarter,” the ADB said.
The sub-region’s bond market grew 14% year on year to $16.3 trillion and expanded 4.2% from a quarter earlier.
The peso bond market consists of 77.8% government bonds and 22.2% corporate bonds.
ADB said the Philippines was among the countries that were most active in issuing government debt paper during the first quarter, alongside China, Indonesia, South Korea and Malaysia.
“(This is) due mostly to frontloading policies and increased financing needs to fund stimulus packages and recovery efforts in response to the COVID-19 pandemic,” it said.
Outstanding government securities issued as of the end of March totaled P5.526 trillion, up 6.2% year on year and 7.5% from a quarter earlier. Corresponding year-earlier growth rates were 16.2% year on year and 8.8% quarter on quarter.
The ADB noted that the Bureau of the Treasury (BTr) borrowed more in the first quarter, with a retail treasury bond issue conducted in February.
In the three months to March, the ADB said the government issued debt paper worth P718.2 billion, more than double the P272.2 billion issued a quarter earlier.
“The increased borrowing was programmed to take advantage of liquidity in the local market as a result of the reserve requirement ratio cuts in Q4 2019 by the BSP (Bangko Sentral ng Pilipinas), as well as of lower interest rates,” the ADB said.
It said the BTr can tap strong domestic demand for government debt paper especially the short-term issues as liquidity remains robust.
Corporate bond growth rates also eased in the first quarter to 14% year on year and 5% quarter on quarter. The corresponding year-earlier growth rates were 24.4% and 5.4%, respectively.
“The issuance growth came on the back of strong economic prospects prior to the outbreak of COVID-19 as corporates sought to capitalize on investor optimism by tapping the bond market,” it said. — Beatrice M. Laforga
DA says fertilizer auctions brought retail prices down
THE DEPARTMENT of Agriculture (DA) said its centralized bidding system for fertilizer procurement helped bring retail prices for urea fertilizer below P1,000 per 50-kilogram bag.
“The downward trend of prices of urea shows that we are on the right track in centralizing the bidding process, thus providing our farmers nationwide with affordable and reasonably-priced fertilizer,” Agriculture Secretary William D. Dar said in a statement Thursday.
The DA said the price of urea fertilizer exceeded P1,100 per bag in recent months, noting that the national average price of urea fertilizer between February and April was P1,051 per bag, according to the Fertilizer Pesticide Authority and the Philippine Statistics Authority.
Fertilizer procurers were authorized to spend about P1,000 per bag, leading allegations that the DA overpaid after some regional prices were shown to be less than P1,000.
According to the DA, bidders that submitted proposals below P1,000 were considered as long as they complied with the legal, technical, and financial requirements.
Mr. Dar said the procured fertilizer will be distributed to farmers participating in the DA’s Rice Resiliency Project on a buy two, take two basis for those using certified inbred seed and ‘buy two, take three’ for those using hybrid seed.
The DA said two companies won the first two fertilizer auctions and were awarded contracts to supply 1.8 million bags. La Filipina Uy Gongco Corp. and Atlas Fertilizer made offers of around P900 to P995 per bag.
“The volume awarded to them comprised four of the original 16 lots,” the DA said.
The companies will distribute fertilizer directly to municipalities identified for the Rice Resiliency Project in Central Luzon, CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon), Western Visayas, and Central Visayas.
The unawarded 12 lots have been repackaged into 26 smaller lots to attract more bidders. The bid announcement was published on May 28.
On June 17, four suppliers submitted bids and three qualified, with the disqualified bidder ruled out due to incomplete requirements.
The three qualified suppliers bid for eight lots out of the 26 and are currently being evaluated by the bids and awards committee’s technical working group.
The qualified suppliers are Goldman’s Supply Corp., which is seeking to supply North Cotabato, First Planters Agri Solution for La Union, Ilocos Sur, and Pangasinan, and Universal Harvester, Inc. for Cagayan, Isabela, Nueva Vizcaya, and Quirino.
The committee is expected to complete the bid evaluation and award the lots by July 9.
Bid winners must deliver 50% of the lot not later than July 15, with the other half expected by July 31. — Revin Mikhael D. Ochave
NCR construction materials retail price growth accelerates
THE growth in retail prices of construction materials in the National Capital Region (NCR) picked up in May, the Philippine Statistics Authority (PSA) said Thursday.
The PSA reported that the NCR construction materials retail price index (CMRPI), which measures changes in the average retail prices of construction materials in the region, rose 1% year on year in May, picking up from 0.8% in April.
The May result was driven by faster growth in carpentry materials (1% from 0.9% in April), and tinsmithry materials (1.4% from 1%).
The year-on-year growth in other commodities remained unchanged when compared with the previous month: painting materials and related compounds (1.5%) electrical materials (0.7%), miscellaneous construction materials (0.5%), and plumbing materials (0.4%).
Only the growth in retail prices of masonry materials showed a slowdown at 0.6% from 0.7% previously.
“The slight growth can be traced to the slight increase in construction activity after the quarantine conditions were eased. I see it as a lukewarm response to the restoration of more economic and business activities,” said University of Asia and the Pacific (UA&P) School of Economics Senior Economist Cid L. Terosa in an e-mail.
ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa added: “Supply conditions may have also forced prices to tiptoe higher with imports slowing due to logistics constraints linked to community quarantine measures,” he said in an e-mail.
The government started moving to more permissive forms of lockdown in Metro Manila on May 16 after more than two months of strict quarantine. The “modified” lockdown was eased further to a “general” lockdown on June 1 and is expected to be lifted by the end of the month.
“Demand may still be quite limited to government projects and prices will be determined in large part by the supply of materials likely imported from abroad. If logistics chains are restored, we could see CMRPI cool a bit next month,” ING’s Mr. Mapa said.
UA&P’s Mr. Terosa added: “I expect to see a moderate increase in the months to come.” — Lourdes O. Pilar
Gov’t completes 14 port projects; 22 more due
THE Department of Transportation (DoTr) and the Philippine Ports Authority (PPA) said Tuesday that they completed 14 port projects so far, including some that were inaugurated virtually during the coronavirus crisis.
“To date, the DoTr and the PPA have completed 14 port projects, amid the coronavirus disease 2019 (COVID-19) pandemic, and we are hoping to finish 22 more by the end of the year,” they said in a joint statement.
The projects consist of “new ports and improvements” to existing ports.
Some of the completed projects had to be “virtually inaugurated,” as mounting the traditional launch ceremony was difficult in lockdown conditions, they said.
The projects are ports in Coron, Palawan; Boac, Marinduque; Estancia, Iloilo; Iligan, Lanao del Norte; Jagna, Bohol; Mansalay, Oriental Mindoro; Ozamiz, Misamis Occidental; El Nido, Palawan; Tagbilaran, Bohol; Malalag, Davao del Sur; Currimao, Ilocos Sur; and Masao, Agusan del Norte. There are also two separate projects for the Iloilo Commercial Port Complex.
The government expects the newly-completed port projects “to bolster the operational capability of the current ports, specifically in inter-island travel and movement of essential goods across regions.”
22 MORE PORT PROJECTS
The DoTr and PPA said they target to complete 22 more port projects by December.
The projects include the Pier 18 rehabilitation and upgrade in Vitas, Tondo, Manila; the construction of a port operations building in Abra de Ilog, Occidental Mindoro; the Balanacan Port expansion project in Marinduque; the construction of the RC Pier and Ro-Ro ramp at the Port of Bansud, Oriental Mindoro; the construction of a back-up area at the Port of Bulalacao also in Oriental Mindoro; the construction of a Ro-Ro ramp and expansion project at the Port of Bulan, Sorsogon; and the construction of the Coastal Access Road project at the Port of Calapan, Oriental Mindoro.
Also expected to be finished by the end of the year are the expansion of the Port of Capinpin, Bataan; the reconstruction of the Carmen Port in San Agustin, Romblon; the Cobo Port construction project in Cobo, Catanduanes; and the construction of port operations buildings at the ports of Coron, Currimao, Masbate, Mauban, Quezon, and Talaga in Mabini, Batangas.
The port rehabilitation and upgrading of RC wharf at the Port of Legazpi; the port expansion projects in Matnog, Puerto Princesa, Salomague, Ilocos Sur, Tablas, Romblon, and TMO Pasig; and the rehabilitation of the Port of Tabaco, Albay are also targeted for completion by the end of 2020. — Arjay L. Balinbin