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How PSEi member stocks performed — December 14, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, December 14, 2020.

Peso climbs as US OKs vaccine use

THE PESO strengthened versus the greenback on Monday, supported by optimism after the United States approved the use of a vaccine against coronavirus disease 2019 (COVID-19).

The local unit closed at P48.05 per dollar on Monday, appreciating by two centavos from its Friday finish of P48.07 versus the greenback.

The peso opened the session at P48.10 against the dollar, which was also its weakest showing for the day. Meanwhile, its intraday best was at P48.04 versus the greenback.

The volume of dollars that changed hands amounted to $358.8 million, dropping from the $540.85 million seen on Friday.

The peso strengthened versus the dollar on the back of positive market sentiment on the progress on the use of a vaccine in the US, a trader said.

“The peso appreciated from market optimism after the US FDA (Food and Drug Administration) officially approved over the weekend the Pfizer [Inc.]’s COVID-19 vaccine for emergency use,” the trader said in an email.

The coronavirus vaccine, developed by Pfizer and its German partner BioNTech, gained emergency-use approval from federal regulators late on Friday, clearing the way for distribution to begin a mere 11 months after the United States documented its first COVID-19 infections, Reuters reported.

Healthcare workers and elderly residents of long-term care homes will be first in line to get the inoculations of a two-dose regimen given about three weeks apart.

Public health officials have warned Americans not to become complacent about wearing masks and avoiding crowds in the meantime.

More than 100 million people, or about 30% of the US population, could be immunized by the end of March, US Operation Warp Speed chief adviser Dr Moncef Slaoui said in an interview with Fox News Sunday.

Another source of risk-off sentiment on the dollar was the one-week extension of an expiring federal funding, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a text message.

Reuters reported that President Donald J. Trump on Friday signed the extension deal, buying more time for talks on a spending bill and further COVID-19 relief measures.

The US Senate passed the bill on the same day following its Wednesday approval in the House. The expiration of the federal funding will mean partial shutdown for government programs such as airport operations and activities of the US State Department.

The US Congress is now working to pass a $1.4-trillion bill meant to maintain federal operations until September 2021.

For today, Mr. Ricafort expects the peso to trade from P48 to P48.10 per dollar while the trader expects the local unit to move within the P48 to P48.20 range. — with Reuters

PSEi extends rally as investors await BSP review

THE LOCAL MARKET closed higher on Monday, sustaining its rally, as investors await the upcoming policy meeting of the central bank.

The 30-member Philippine Stock Exchange index (PSEi) climbed 35.19 points or 0.48% to close at 7,281.35, while the broader all shares index rose 19.78 points or 0.45% to end at 4,338.51.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the local bourse closed higher as investors await the result of the policy meeting of the Bangko Sentral ng Pilipinas (BSP) on Thursday.

“The PSEi kick started the week as investors made bets ahead of the BSP meeting on Thursday and the continued Christmas rally,” Mr. Limlingan said in a mobile phone message.

The central bank is likely to keep its key policy rates at the record low levels on Thursday, as it considers the recent uptick in the country’s inflation rate, according to analysts.

A BusinessWorld poll last week showed all 15 analysts do not expect the Monetary Board to go for another rate cut at its seventh and final policy meeting for the year on Dec. 17.

The central bank has lowered policy rates by 200 bps this year.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun credited the market’s climb to the lack of selling pressure at the start of trading.

“Trading today is a clear indication that investors remain confident with current conditions and are willing to hold positions for the longer term,” Mr. Mangun said in an e-mail on Monday.

“The US Food and Drug Administration’s approval of Pfizer and BioNTech’s COVID-19 vaccine also helped in extending gains this Monday,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message.

Meanwhile, Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said in a mobile phone message that the market sustained its rally despite foreigners turning net sellers.

Net foreign outflows reached P816.66 million, a turnaround from the net inflows worth P212.08 million on Friday.

Most of the sectoral indices at the PSE were gainers on Monday, with property being the sole decliner, going down 28.27 points or 0.76% to 3,690.96.

Financials improved 23.7 points or 1.59% to 1,510.30; mining and oil went up 104.96 points or 1.12% to 9,410.93; industrials increased 101.04 points or 1.07% to 9,521.96; services jumped 8.74 points or 0.57% to 1,542.3; and holding firms gained 37.44 points or 0.5% to 7,493.31.

Advancers bested decliners, 134 to 75, while 58 names ended unchanged.

Some 46.02 billion issues valued at P8.93 billion switched hands on Monday, down from the previous session’s 75.92 billion shares worth P9.89 billion.

“Immediate resistance may be placed at 7,500, while nearest support is pegged at 6,700,” Timson Securities’ Mr. Pangan said. — Revin Mikhael D. Ochave

Gov’t close to finishing vaccine agreement with China’s Sinovac

By Gillian M. Cortez and Vann Marlo M. Villegas, Reporters

THE GOVERNMENT is expected to finalize a procurement deal for coronavirus vaccines with Chinese drug maker Sinovac Biotech Ltd. this week, according to its vaccine czar.

“We want to finalize the final negotiations so that we can firm up the other terms and we are looking at the exact time of distribution,” Carlito Galvez, Jr., the chief enforcer of anti-COVID-19 (coronavirus disease 2019) efforts, told a news briefing on Monday.

He added that negotiations continue so the government could meet its March 2021 target to get the vaccines. The government also expects to get a second tranche of vaccines in the latter part of 2021.

Sinovac is the government’s top pick for vaccine orders for its mass immunization program that will start next year. The government seeks to immunize 20 million Filipinos yearly in the next three years.

The government is also in talks with nine more vaccine developers. Other than Sinovac, the Philippines is looking to import vaccines from two other Chinese vaccine makers that are in advanced stages of clinical trials — the China National Pharmaceutical Group Co., Ltd. (Sinopharm) and CanSino Biologics.

“The Chinese have announced they are ramping up production,” Philippine Ambassador to China Jose Santiago L. Sta. Romana said at the same briefing “They want 500 million doses within the next 12 months.”

The Department of Health (DoH) reported 1,339 coronavirus infections on Monday, bringing the total to 450,733.

The death toll rose to 8,757 after 24 more patients died, while recoveries increased by 41 to 418,723, it said in a bulletin.

There were 23,253 active cases, 85.1% of which were mild, 5.7% did not show symptoms, 5.9% were critical, 3% were severe and 0.32% were moderate.

Quezon City reported the highest number of new cases at 147, followed by Davao City at 124, Rizal at 65, Laguna at 50 and Manila at 49.

DoH said six duplicates had been removed from the tally, while two recovered cases were reclassified as deaths. Nine laboratories failed to submit their data on Dec. 13, it added.

In a separate statement, the agency said there were now 192 licensed COVID-19 testing laboratories nationwide.

About 5.9 million Filipinos have been tested. The positivity rate was at 8.7% as of Dec. 12, it said.

Meanwhile, five participants in the coronavirus clinical trials of the Japanese anti-flu drug Avigan have completed their trials, Health Undersecretary Maria Rosario S. Vergeire told an online news briefing.

She said 16 participants had been recruited as of Dec. 7, nine of whom were ongoing and two withdrew. Patient recruitment continues, she added.

The clinical trials for Avigan started on Nov. 20.

There are four participating hospitals for the trials. These are the Philippine General Hospital, Dr. Jose N. Rodriguez Memorial Hospital, Quirino Memorial Medical Center and Sta. Ana Hospital.

Ms. Vergeire last month said the sample size for the Avigan trial had been expanded from 96 to 144 and the criteria were eased to recruit more patients.

Japan in April said it would send the vaccine made by Fujifilm Toyama Chemical Co., Ltd. to 38 countries, including the Philippines after clinical trials.

Also on Monday, the Management Association of the Philippines (MAP) said company chief executives were cautiously optimistic about economic prospects.

MAP President Francisco E. Lim, citing a September survey, said 59% of them were confident about revenue prospects in the next 12 months and 83% expected the economy to recover in one to three years.

“The roll-out of the vaccines, especially if their acquisition and distribution are accelerated, will certainly boost this confidence and hasten the economic recovery of our country,” he said in an e-mailed statement.

US and Philippines resume coast guard training exercises

THE UNITED States and the Philippines have resumed their training program on small boat operations for the Philippine Coast Guard amid a coronavirus pandemic, according to the US Embassy.

The US Coast Guard held the second phase of the program on Nov. 16 to Dec. 11 to capacitate 16 local coast guard instructors who will in turn train other personnel, it said in an e-mailed statement on Monday.

“This was the first training event conducted by the US Coast Guard in the Philippines since the onset of the COVID-19 pandemic,” the embassy said.

The program is part of US-Philippine cooperation to enhance the maritime law enforcement capability of the local coast guard.

The first phase of the series was held on Feb. 24 to March 6, before the entire Luzon island was placed under a strict lockdown to contain the pandemic.

The US embassy earlier said the curriculum included pre-mission planning, risk management, docking, towing and navigation.

The coronavirus pandemic has not only delayed the coast guard training program, but has also resulted in the cancellation of the war games this year. The US-Philippine war games were originally set for May 4 to 15. — Charmaine A. Tadalan

Global labor group cites deteriorating state of human rights

AN INTERNATIONAL labor group on Monday called for the declaration of a human rights emergency in the Philippines after authorities arrested six union organizers and a journalist.

The Council of Global Unions called on the United Nations Human Rights Council and the International Labour Organization to consider as an emergency “the deteriorating human rights condition in the Philippines.”

International bodies should also send “their missions to investigate human rights and trade union repression in the country and help reverse the situation,” the group said in a statement.

The arrest of union leaders “is yet another blow to the trade union movement in the Philippines,” it said. “Killings among activists and rights defenders as a way of instilling fear and silencing the people have not ceased.”

Police arrested a journalist and several labor leaders in separate operations last week over alleged illegal possession of firearms and explosives — the common charges against activists.

Bagong Alyansang Makabayan Metro Manila Chairman Raymond V. Palatino said the arrests were the “handiwork of a terrorist regime.”

Mr. Palatino said President Rodrigo R. Duterte should be held responsible for intensified attacks against his critics.

“It was his speech of red-tagging activists which unleashed the brutal forces of the state and targeted those who are condemned as enemies of the government,” he told a news briefing attended by relatives of the suspects.

“A President intolerant of opposition and determined to wage an all-out war against communists, a judge issuing questionable search warrants, police fabricating evidence, public servants red-tagging activists — all of these were reflected in the recent crackdown,” Mr. Palatino said.

A Quezon City judge issued the warrants for the arrest that allowed police to raid the homes of the suspects.

A Supreme Court circular allows the executive judges of the Manila and Quezon City trial courts to issue search warrants that can be served outside their jurisdictions.

Data from human rights group Karapatan showed that at least 188 human rights defenders have been killed under the Duterte administration, while 426 activists and community organizers have been arrested. — Kyle Aristophere T. Atienza

Almost half of Filipinos feel poor — SWS

ALMOST half of Filipino families consider themselves poor, according to the latest Social Weather Stations (SWS) poll.

SWS said 48% of families rated themselves poor and 36% said they were borderline poor. Only 16% felt they were not poor.

The November poll was the first time the pollster did face-to-face interviews since the coronavirus pandemic struck. The self-rated poverty poll could not be done in SWS mobile phone surveys earlier this year.

In December 2019, the last time that poll was done, there were 54% that felt poor, 23% felt borderline poor and 23% felt they were not poor.

The November poll also found 31% of families rating themselves as food-poor, 47% feeling borderline food-poor and 22% feeling they were not food-poor, SWS said.

The polling firm interviewed 1,500 adults for the poll, which had an error margin of ±2.5 points. — NPA

Gov’t told to suspend RFID toll scheme

PHILIPPINE STAR/ MICHAEL VARCAS

THE SENATE on Monday adopted a resolution asking the Transportation department and its attached agencies to suspend its mandatory cashless toll payment scheme.

The agency should defer the program pending complaints from motorists, according to Senate Resolution 596.

“On the outset, we can already see two major issues: the absence of an interoperable RFID on all expressways and the sheer volume of vehicles that need to obtain radio frequency identification (RFID) stickers within a short time frame,” Senator Grace S. Poe-Llamanzares said in her sponsorship speech.

Fourteen senators signed the resolution including Senators Ralph G. Recto, Juan Miguel F. Zubiri, Maria Lourdes Nancy S. Binay, Emmanuel D. Pacquiao, Imee R. Marcos, Ramon B. Revilla, Jr., Ronald M. dela Rosa, Francis N. Pangilinan, Panfilo M. Lacson, Leila M. de Lima, Emmanuel Joel J. Villanueva, Richard J. Gordon, Risa N. Hontiveros-Baraquel and Sherwin T. Gatchalian.

Ms. Llamanzares cited complaints about difficulties in getting RFID stickers, the limit on RFID applicants daily and the high minimum load requirements. There were also complaints about malfunctioning RFID scanners and delays in the reloading system.

“The resulting problem is not merely confined in the area where electronic toll collection systems are located,” she said. “The traffic jams they cause extend to nearby cities and municipalities which, in turn, paralyzes their local economies.” — Charmaine A. Tadalan

Nationwide round-up (12/14/20)

More Filipinos come home

MORE than 300,000 migrant Filipino workers have come home amid a coronavirus pandemic that has sickened 72.7 million people and killed 1.6 million worldwide, according to the Department of Foreign Affairs (DFA).

A total of 13,537 Filipinos arrived last week, the highest weekly count since DFA started the repatriation program in February, the agency said in a statement on Sunday night.

It facilitated 59 flights to bring home 319 distressed Filipinos from Dammam and Saudi Arabia; 11 who got stranded in Malaysia; nine undocumented workers in China; two seafarers in the Bahamas; and another in Australia.

Eight medical repatriates from France, Japan, Austria, Oman, the United Arab Emirates and the United States also came home. Three were from Qatar, Egypt and Syria, who may have been victims of human trafficking.

This brought the beneficiaries to 300,838 Filipinos, including 90,621 seafarers and 210,217 land-based workers, DFA said.

“This is the biggest repatriation effort in the history of the DFA and of the Philippines,” Foreign Affairs Undersecretary Sarah Lou Y. Arriola said in the statement.

In a separate statement, DFA on Monday reported 42 new coronavirus cases, 35 recoveries and one death.

About 12,350 Filipinos overseas have been infected with the virus, 3,457 of whom were being treated, 8,032 have recovered and 861 died. — Charmaine A. Tadalan

BI bats for ‘COVID-19 passports’

THE BUREAU of Immigration (BI) on Monday said it agrees with a proposal for a COVID-19 passport for international travelers that will show they have been vaccinated and are coronavirus-free.

In a statement, Immigration Commissioner Jaime H. Morente said this would speed up immigration processing at airports and could revive the travel industry.

He said the current procedure of requiring travelers to get tested at the airport “could pose problems” as the country reopens its borders.

“The anticipated influx of more international travelers could result in longer queues and overcrowding in our immigration counters as all of these passengers should be tested at the airport before they are allowed to enter the country,” he said.

Mr. Morente said having a COVID-19 passport showing that a traveller had been vaccinated and is not infected would result in quicken the immigration process.

He said he expects travelers to start arriving in the Philippines by the second half of next year, when a vaccine will have been available locally. — Vann Marlo M. Villegas

FB to expose lockdown violators

THE PHILIPPINE National Police (PNP) on Monday said it would monitor social media for potential quarantine violators amid a coronavirus pandemic during the holiday season.

PNP Chief of Staff Cesar R. Binag told a news briefing on Monday Facebook and other social media sites might show photos of people in large gatherings despite the prohibition.

Last week, Interior and Local Government Undersecretary Epimaco V. Densing III said local government officials should issue ordinances prohibiting mass gatherings and videoke activities during the holiday season.

National Task Force Against COVID-19 chief implementer Carlito G. Galvez, Jr. said the government would ask President Rodrigo R. Duterte to urge the public to take precautions before Christmas week.

The President is set to give a public address on Wednesday.

Mr. Galvez said he and Interior and local government officials were in talks on possible measures that will govern holiday events, including limiting attendance to 10% to 30%. — Gillian M. Cortez

Regional Updates (12/14/20)

NLEX urged to keep barriers up

THE MAYOR of Valenzuela City on Monday asked NLEX Corp. to make up its mind about his proposal to keep barriers up at its toll plazas to ease traffic congestion.

During a televised meeting between the company and city officials, city Mayor Rex T. Gatchalian said the toll operator should follow what is being done in neighboring countries such as Malaysia, where motorists still get charged even without toll fences.

NLEX Corp. President J. Luigi Bautista said the company would first consult regulators about keeping the toll fences up. “The open barrier is our direction,” he said. “But for us to get there, we will have to fix our infrastructure first. We will need coordination with the regulatory agency.”

On Dec. 7, Valenzuela City suspended NLEX Corp.’s business permits for some toll plaza, saying NLEX Corp. should address issues on consumer, traffic and radio-frequency identification sticker installation and reloading. — Arjay L. Balinbin

Housing offered to Pangasinan farmers

THE AGRARIAN Reform department on Monday said it had chosen Pangasinan as the pilot site for its housing project for farmers.

In a statement, Agrarian Reform Secretary John R. Castriciones said a 26,111-square meter lot in the village of Carayungan in Umingan, Pangasinan would be the site of the pilot that will start on Dec. 15.

Each house will cost P300,000 and will have duplex-type units with a 36-square meter floor area, toilet, electrical and water facilities, tiled floors and painted interior and exterior walls.

Agrarian reform beneficiaries may avail themselves of the housing program, which should boost farmers’ morale and result in better crop yields, income and quality of life, Mr. Castriciones said.

Aside from Umingan in Pangasinan, the project would be replicated in Nueva Vizcaya, Nueva Ecija, Samar, Cebu, Camariñes Norte and Davao del Sur, he said. — Revin Mikhael D. Ochave

House approves measure creating 99-year trust from coco levy funds

THE House of Representatives on Monday approved on third and final reading the bill creating the coconut levy trust fund.

With 221 affirmative votes, six negatives, and zero abstentions, legislators passed House Bill No. 8136, the proposed Coconut Farmers and Development Trust Fund Act. The measure seeks to mobilize coconut levy funds collected decades ago into programs designed to rehabilitate and modernize the coconut industry.

The levy, billed during the Marcos administration as a means of investing in the industry’s development, but actually redirected to purchase stakes in San Miguel Corp. and United Coconut Planters Bank, is now valued at around P76 billion.

President Rodrigo R. Duterte made it a campaign promise in 2016 to return the funds in his first 100 days in office. He vetoed a previous version of the bill last year, saying in his veto message that the measure failed to “accelerat(e) the further utilization of coco levy assets and funds for the benefit of our marginalized coconut farmers and the coconut industry.”

Deputy Speaker and Party-list Representative Sharon S. Garin, who heads the technical working group evaluating the measure, said in a statement that getting the bill signed into law would provide “much-needed relief for the families of coconut farmers who have long waited for their share.”

“With the COVID-19 pandemic choking agricultural supply chains, the situation of small coconut farmers will continue to worsen should the enactment of the bill be delayed,” she said in a statement.

Citing a 2013 report by the National Anti-Poverty Commission, she said the poverty rate among coconut farmers was between 41 and 60%.

The bill’s approval is a “good news to our coconut farmers and a boost to the industry,” Philippine Coconut Authority (PCA) Administrator Benjamin R. Madrigal, Jr. told BusinessWorld in a Viber message Monday.

Mr. Madrigal said the PCA has asked stakeholders to identify their “requirements for consideration or inclusion in the would-be proposed program for the levy fund” and to encourage all farmers to join the national registry system for the sector.

“We are now organizing a regional and provincial coconut industry stakeholders forum as a venue for info dissemination, coordination and consultation,” he said.

The bill is expected to benefit around 3.5 million coconut farmers from 68 provinces. The eligibility cutoff is set at ownership of five hectares of coconut land or less.

The bill calls for the trust fund to be maintained for 99 years, supporting the Coconut Farmers and Industry Development Plan (CFIDP) to be drafted by the PCA.

The measure creates a Coco Levy Trust Fund Board, composed of coconut farmers and their organizations, industry associations, civil society organizations, academic experts, and other stakeholders.

An initial allocation of P5 billion has been authorized for the PCA to organize the trust fund and prepare the CFIDP. The Department of Finance will manage the trust fund. — Kyle Aristophere T. Atienza

ARTA launches push to organize agency-level bodies in fight vs red tape

THE Anti-Red Tape Authority (ARTA) has launched a campaign to install red tape-reduction committees at all government agencies, which it billed as necessary to make public services more “citizen-centric.”

“It is indeed our sincerest desire that through this issuance every representation of the Philippine government will have a citizen-centric mindset and will strive hard to provide ways and means to give more efficient public service for the Filipino people,” ARTA Director-General Jeremiah B. Belgica said at the virtual rollout of the guidelines for forming such committees on Monday.

He added, “Hindi na po kakailanganin dapat ng taumbayan ng mga fixers na syang nagbibigay ng mas mabilis na proseso bagamat ito ay iligal. Tayo na po, ang ARTA, at sa tulong ng mga committees na ito ang magiging fixer ng kanilang problema. Fixer na walang bayad. Fixer na tama (The public should no longer resort to illegal fixers for faster service. Let us do the right thing and be the fixers ourselves, without pay.)” 

Mr. Belgica approved on Sept. 30 Memorandum Circular No. 2020-07, which sets the guidelines for organizing such committees, in compliance with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

The memorandum is applicable to all government agencies including state universities and colleges, local government units, and government-owned or controlled corporations, among others.

Under the guidelines, the committee will be composed of a chairperson, a vice chairperson, and at least five members.

“It shall be composed of a number of members who are institutionally tasked to identify, develop, implement, and review policies and monitor processes,” it said.

The committee will also be responsible for ensuring that the host agency complies with the requirements of the ease of doing business law. — Arjay L. Balinbin

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