How PSEi member stocks performed — April 30, 2020
Here’s a quick glance at how PSEi stocks fared on Thursday, April 30, 2020.
Index boosted by optimism about easing lockdown
By Denise A. Valdez, Reporter
THE MAIN INDEX kept its upward trajectory yesterday as investors remained optimistic in anticipation of easing quarantine measures in select areas across the country.
The bellwether Philippine Stock Exchange index (PSEi) rose 56.74 points or 1% to end at 5,700.71 on Thursday. The broader all shares index also climbed 20.55 points or 0.60% to 3,445.83.
“The local bourse ended the shortened week on a positive note as some areas previously under ECQ (enhanced community quarantine) will be part of the more relaxed GCQ (general community quarantine) conditions,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.
“Investors may have seen this as a positive thing for our economic well-being,” he added.
As the ECQ in select areas was set to expire yesterday, the government has started issuing clearer rules on which sectors may start going out and resume operations to oil the economy.
This is expected to help dampen the economic toll of the 1.5-month-long ECQ in Luzon, which shut down the operations of most sectors except a few ones considered “essential.”
Trading at the local bourse is suspended today in observance of the Labor Day holiday.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the sustained climb of the PSEi yesterday is also driven by positive development on finding a solution for the coronavirus disease 2019 (COVID-19) and the result of the meeting of the US Federal Reserve.
“Philippine equities jumped on the back of positive data from a potential coronavirus treatment from Gilead Sciences, continued effort from the Federal Reserve to sustain US growth,” he said in a mobile message.
US-based healthcare firm Gilead Sciences, Inc. continued reporting positive development from its trials of its anti-COVID-19 drug yesterday.
Also after meeting on Wednesday, the US Federal Reserve decided to keep its benchmark interest rate near zero until its economy has recovered from the COVID-19 pandemic. It likewise committed to do what it takes to lift the economy, Reuters reported yesterday.
All sectoral indices at the PSE closed with gains at the end of Thursday’s session: services improved 24.82 points or 1.84% to 1,373.82; financials added 18.80 points or 1.61% to 1,188.67; property rose 34.19 points or 1.18% to 2,921.92; holding firms gained 34.92 points or 0.63% to 5,544.29; mining and oil climbed 15.63 points or 0.33% to 4,708.57; and industrials increased 9.54 points or 0.12% to 7,474.93.
Some 590.40 million issues valued at P6.58 billion switched hands yesterday, slightly improving from Wednesday’s 584.34 million issues worth P4.54 billion.
Advancers stood at 120, decliners at 71, and unchanged names at 46.
Net foreign selling slowed to P658.39 million yesterday from P726.05 million the day prior.
Peso continues to rise on strong reserve data
THE PESO continued to strengthen on Thursday on the back of higher dollar reserves and continued risk-on sentiment due to news of the gradual lifting of lockdowns in some parts of the United States.
The local unit finished trading at P50.40 per dollar yesterday, strengthening by 11 centavos from its P50.51 close on Wednesday, according to data from the Bankers Association of the Philippines.
Week on week, it also appreciated by 43 centavos from its P50.84 finish on April 24.
Financial markets are closed today, May 1, for Labor Day.
The peso opened the session at P50.41 per dollar. Its weakest was seen at P50.50 while its strongest was its close of P50.40 against the greenback.
Dollars traded surged to $906.8 million on Thursday from the $498.5 million logged in Wednesday.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso’s gains came on the back of the latest gross international reserves data from the central bank.
“The peso exchange rate closed stronger after the country’s GIR (gross international reserves) reached a new record high, thereby providing greater cushion for the peso,” Mr. Ricafort said in a text message.
Preliminary data from the Bangko Sentral ng Pilipinas showed GIR hit a record-high $88.995 billion as of end-March, surpassing the $88.187 billion seen at end-February as well as the $83.613 billion logged a year ago.
Meanwhile, a trader said optimism continued to buoy the peso amid news of the possible easing of lockdowns in some parts of the world.
“The peso’s movement is recently headline driven and there was risk-on sentiment from investors as some authorities state their plans to gradually lift lockdowns because this could help economic recovery,” the trader said in a phone call. — LWTN
Philippines seeks $750-M COVID-19 loan from AIIB
THE Philippines has applied for a $750-million facility from China’s Asian Infrastructure Investment Bank (AIIB) to help fund the coronavirus pandemic 2019 (COVID-19) containment effort, with the application expected to be acted on by mid-May.
According to a statement Monday from the Beijing-based bank, the Philippine government has asked the AIIB for $750 million to cofinance its COVID-19 Active Response and Expenditure Support (CARES) Program, alongside the Asian Development Bank (ADB).
“The program will provide critically needed support to help the Government of the Philippines mitigate the severe health, social, and economic impact caused by the COVID-19 pandemic,” AIIB said.
Finance Undersecretary Mark Dennis Y.C. Joven, who also heads the department’s International Finance Group (IFG), told BusinessWorld that the AIIB is expected to decide on the loan in mid-May.
“AIIB will deliberate mid-May, I think,” Mr. Joven said in a mobile phone message Wednesday.
He added that the government does not have plans for a second tranche of COVID-19 funding support from the AIIB, “unless the need arises.”
The funds will be sourced from AIIB’s $5-10 billion COVID-19 Crisis Recovery Facility.
AIIB said it expects the COVID-19 response program to increase the country’s testing capacity to 8,000 per day by next month, reduce the average turn-around time for tests to 48 hours or less by July and have all health care workers and COVID-19 patients be covered by the Philippine Health Insurance Corporation by July.
On Tuesday, the government signed a $100-million loan agreement for the COVID-19 Emergency Response Project with the World Bank as well as a new $200-million loan from the Asian Development Bank for the Social Protection Support Project.
The Philippines has also tapped the World Bank for a $500-million loan to fund its pandemic response programs, on top of the $500-million (P25.4 billion) Third Risk Management Development Policy Loan approved earlier this month.
The ADB has likewise approved a $1.5-billion loan to supplement the government’s funds as it seeks to contain the outbreak.
The Department of Finance has said it hopes to tap $5.7 billion worth of financial assistance from multilateral agencies such as the World Bank and ADB. — Beatrice M. Laforga
DoE could outline plans for strategic oil reserve by June
THE Department of Energy (DoE) is planning to issue a circular by June outlining plans for the establishment of a strategic oil reserve.
Rino E. Abad, director of DoE’s Oil Industry Management Bureau (OIMB), said that the drop in global oil prices represents an opportunity to stock up on petroleum products.
“Plano po namin in the next month or two, makapag-isyu po tayo ng circular (We plan to issue a circular on the oil stockpile program in the next month or two),” he told BusinessWorld by phone.
“We really have to move forward on this,” he added.
The DoE has been pushing for an oil reserve to guard against oil price volatility and supply disruptions.
State-owned Philippine National Oil Corp. is currently putting together a feasibility study on the strategic reserve. The study will form the basis of the DoE’s planned regulatory regime.
The strategic reserve will also undergo the budgeting process in Congress.
As of April 27, the Philippines had an estimated 3.29 billion liters of petroleum in its inventory, equivalent to 56.7 days’ consumption. Finished petroleum products are good for 27.9 days, and crude oil 28.8 days.
Oil prices have continued to drop due to a glut caused by the decline in demand due to the coronavirus disease 2019 (COVID-19) pandemic.
Mr. Abad said that the decline in oil demand is only temporary and that it may recover, along with prices, by the fourth quarter or early 2021, as major world economies roll out stimulus programs to ensure their economies recover.
Meanwhile, Energy Secretary Alfonso G. Cusi said on ANC Thursday that domestic fuel prices will remain volatile up to the end of the third quarter as demand will not return to pre-quarantine levels.
“I think that the (oil) prices up to the end of the third quarter will be volatile, and we will be seeing lower demand (from) consumers because there will still be restrictions in the mobility of people and somehow it will affect the demand for oil,” he said.
Mr. Cusi said the country is not reaping the benefits of low oil prices “because people are not traveling.” It has also affected retailers because they are not selling fuel.
“They bought some stocks at the high price that are still being sold at a low price. So they are experiencing cash flow problems,” he added.
He has noted around 10% of domestic fuel retailers closed down during the enhanced community quarantine (ECQ).
The oil rout has also affected exploration activity as concession holders evaluate whether exploring is worthwhile with prices so low.
The government could return to formal discussions with Chinese partners for joint exploration in the disputed West Philippine Sea (WPS) as soon as the ECQ is lifted.
“Maybe after the ECQ, we will sit down with our Chinese counterpart to see what is the best way to explore and exploit the resources,” Mr. Cusi said.
The ECQ will be lifted after May 15. — Adam J. Ang
ASF largely confined to Luzon except for two Mindanao provinces
AFRICAN swine fever (ASF) has been confirmed in 23 provinces across eight regions as of April 27, the Department of Agriculture (DA) said, noting that outside of Luzon, the disease is present only in two of the Davao provinces.
In a virtual news conference yesterday, DA Spokesperson Noel O. Reyes said the national count for culled hogs is 282,486 animals, who were killed as a precaution.
The DA identified the provinces with confirmed cases as Benguet, Ifugao, Kalinga, Mt. Province, La Union, Pangasinan, Isabela, Nueva Vizcaya, Nueva Ecija, Cagayan Province, Bataan, Bulacan, Pampanga, Tarlac, Aurora, Batangas, Cavite, Laguna, Quezon, Rizal, Camarines Sur, Davao del Sur, and Davao Occidental.
ASF cases have also been detected in the National Capital Region.
“According to veterinary experts consulted by the DA, areas should be 100% free from the virus before we can declare that the country is safe from ASF,” Mr. Reyes said.
The DA has reported that the pork supply will fail to meet demand towards the end of the year, and estimated the size of the shortfall as equivalent to 31 days’ consumption.
According to the latest food outlook issued by the DA, pork demand is estimated at 1.2 million MT, with committed supply estimated at 1.1 million MT.
To augment pork supply, the DA said it will organize logistics for hog raisers in Mindanao to bring their surpluses to Luzon and the Visayas.
Hog raisers in Davao have committed to ship 500 metric tons (MT) of surplus pork monthly while those in General Santos City and Cagayan de Oro can send 3,000 MT monthly.
“Consumers should shift to other sources of protein such as poultry, which by the end of the year will be in sufficient supply, equivalent to 233 days,” Mr. Reyes said. — Revin Mikhael D. Ochave
Garment industry seeks revival of domestic textile production
THE Philippines must revive its textile industry following global supply chain disruptions during the coronavirus disease 2019 (COVID-19) outbreak, which cut off the garment industry from imported raw material, Philexport textiles, yarn, and fabric trustee Robert M. Young said.
“Right now, the Philippines is the only country without a textile industry,” he said in a webinar Wednesday, adding that lockdowns in China delayed textile imports for the garments industry.
“If we had factories nearby, we could have been supplied from these textile companies.”
The Philippines cannot continue to rely on imports, he said, and must attain some degree of self-reliance.
Mr. Young said that after the crisis, garment retailers will be focused on selling their remaining inventory, adding that consumers will likely be more conservative in buying clothing.
“The orders of the garment and apparel (from retailers) will be reduced by about 50%,” he said, adding that 50-70% of recent orders have been cancelled by buyers.
To boost the industry, Mr. Young said Internet and manufacturing technology capabilities must be improved, noting that bad Internet connectivity created difficulties.
“Most of the time, signals were dropped, especially in the provinces… the government should do something about the Internet speed because this is really vital,” he said, adding that factory machinery must be upgraded to improve efficiency.
Mr. Young also said the Philippines should continue its negotiations for free trade agreements (FTA), especially with the US.
“Selected goods such as garments, apparel, wearables can enter the USA tax-free, meaning we will have more business. Foreign buyers will be buying more from Manila because they will be paying zero tax,” he said.
Mr. Young said that he expects an industry recovery after 18 months, in the best-case scenario. — Jenina P. Ibañez
Railway projects on track, major airport works to proceed — DoTr
THE Department of Transportation (DoTr) said its ongoing railway projects are still on track despite the disruptions from the enhanced community quarantine (ECQ).
The department also said the major airport projects such as Ninoy Aquino International Airport (NAIA) Rehabilitation and Bulacan Airport projects will push through as soon as the COVID-19 situation softens.
In a virtual news conference Thursday, Philippine National Railways General-Manager Junn B. Magno reported that the implementation of the Metro Manila Subway Project resumed two weeks ago, and described the delay as “minimal.”
As for the rehabilitation of the Metro Rail Transit (MRT) Line 3, he said the department was studying how to “accelerate” the works.
Transportation Secretary Arthur P. Tugade said of the major airport projects: “In so far as the NAIA Rehabilitation Project is concerned, there is ongoing checking and rechecking. As far as Bulacan Airport, may approval na yan, groundbreaking na lang (It has been approved and is awaiting groundbreaking). Sa Private airports proposals pwede natin ituloy yan but with mandates of safety and health. May mga balakid in pursuing these things because of ECQ and GCQ (general community quarantine). Itutuloy yan once the pandemic changes favorably (Private airport proposals can proceed but with adjustments for safety and health. We are constrained pursuing these projects because of ECQ and GCQ, but they will proceed one conditions improve).”
Civil Aviation Authority of the Philippines (CAAP) Director-General Jim C. Sydiongco said CAAP is planning to go ahead with at least 22 ongoing projects in CAAP-operated facilities that had been scheduled for 2020 but suspended due to the ECQ.
Transportation Undersecretary for Administrative Service Artemio U. Tuazon, Jr. said the department submitted to the Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) its proposed protocols for the operation of public transportation in both ECQ and GCQ areas.
He said the proposed protocols were included in the omnibus guidelines, for submission to President Rodrigo R. Duterte for his approval.
Under the proposal, public transportation will remain suspended in ECQ areas while a gradual reopening of operations of public utility vehicles (PUVs) with 50% reduced capacity will be implemented in GCQ areas.
The department also proposed to encourage the general public to use bicycles or mobility devices.
It said PUVs will be required to secure special permits to operate in GCQ areas. — Arjay L. Balinbin
CIC launches portal for ‘contactless’ credit database access
STATE-RUN Credit Information Corp. (CIC) said it launched its Covered Entity Portal, through which financial institutions can register and submit documents online.
“The CIC has always envisioned an end-to-end technology driven process. ARTA (Anti-Red Tape Authority) provided the initial motivation to improve government services so it was easier to switch to an almost fully automated process that would minimize physical interactions among CIC personnel, system users, and the general public,” CIC President and CEO Jaime Casto Jose P. Garchitorena was quoted as saying.
CIC recently issued Circular No. 2020-01, “Requirements on Becoming an Accessing Entity of the Credit Information Corporation” to enable “contactless and paperless” access for financial institutions to the Philippines’ sole credit registry.
It said applicants can register, update and submit documents online through the web-based application Covered Entity Portal, as well as manage their own user accounts.
Applicants can also access and upload the system-generated memorandum of agreement and the Accessing Entity Information Sheet (AEIS) on the portal.
The entities that can access the credit data are banks, quasi-banks, trust entities, investment houses, financing firms, cooperatives, non-governmental and micro-financing organizations, credit card and insurance companies, as well as state lending institutions.
Mr. Garchitorena said the CIC database serves as a “valuable tool” for enhanced risk assessment for financial institutions regarding a borrower’s capacity to pay, especially now that more small businesses are expected to avail of financial support programs and restructuring of loans.
“But even as these are designed to help borrowers and MSMEs (micro, small, and medium enterprises) in a state of credit distress, lenders still need to approach this from a data-driven, risk-based perspective,” he said.
Financial entities can access CIC’s credit reports at P10 per inquiry until December.
At the end of March, the credit registry’s database had records on 11.3 million unique individuals and around 83,000 firms.
CIC was created by Republic Act No. 9510 or the Credit Information System Act. — Beatrice M. Laforga
DoH says no COVID-19 peak yet as confirmed cases soar to 8,488
By Vann Marlo M. Villegas, Reporter
CORONAVIRUS infections in the Philippines have not reached their peak, the Department of Health (DoH) said on Thursday, as 276 new cases were added to bring the total to 8,488.
Health Undersecretary Maria Rosario S. Vergeire said new cases have been averaging between 100 and 200 daily, which is far from a plateau, even as authorities expand COVID-19 (coronavirus disease 2019) tests.
“It’s quite risky for us to declare now that we really are plateauing and that we really are reaching that peak,” she told an online news briefing. “We are not there yet.”
Ten more patients died, raising the death toll to 568, DoH said in a bulletin yesterday. Twenty more patients have gotten well, bringing the total recoveries to 1,043, it added.
Ms. Vergeire said expanded nationwide testing was not limited to health workers and people considered to be vulnerable and with severe conditions, but also covers those with mild symptoms as long as resources were available. She added that DoH needs more data to predict a trend.
Ms. Vergeire on Wednesday said the testing capacity of all laboratories is between 2,895 and 6,420 tests daily.
The capacity will increase by 3,000 once the machines and other testing equipment are set up at the Jose B. Lingad Memorial Regional Hospital in San Fernando City, Pampanga province.
DoH said 89,021 tests have been conducted — 78,730 with negative and 10,139 with positive results.
The number of positive tests is higher than the confirmed cases because the test must still be validated and processed, Ms. Vergeire said.
Ms. Vergeire said at separate news briefing yesterday afternoon that 1,619 health workers — 557 physicians, 604 nurses, 99 nursing assistants, 63 medical technologists, 31 radiologic technologists, 17 respiratory therapists, 18 midwives, 13 pharmacists and 217 workers — had been infected with the COVID-19 virus.
Thirty-three of them have died, 250 have recovered, she added.
Ms. Vergeire said they were waiting for Japan to announce whether the Philippines will be included in the first batch of countries that will receive the drug Avigan, used for influenza, to treat COVID-19.
Japan earlier said it would send Avigan to 38 countries including the Philippines after conducting clinical trials with other countries.
Philippine General Hospital in Manila was studying the protocols so the clinical trials could be launched locally, Ms. Vergeire said.
Meanwhile, Ms. Vegeire said DoH in coordination with the Department of Justice, World Health Organization and International Committee of the Red Cross, had investigated and assessed coronavirus cases in local jails and prisons.
The Health department also coordinated with the Bureau of Corrections (BuCor) and the Bureau of Jail Management and Penology to conduct targeted testing for inmates.
BuCor said there were 50 cases at the Correctional Institute for Women (CIW) and the national penitentiary in Muntinlupa City, while other prison and penal farms in the country were still COVID-19-free.
Three of them have died, two from the female prison and the first and only confirmed case of the national penitentiary.
Nine inmates and nine staff members at the Quezon City Jail near the capital, and more than 210 at the Cebu City Jail have also been infected, adding to worries about contagion risks in the country’s jails.
The novel coronavirus has sickened about 3.2 million and killed more than 228,000 people worldwide, according to the Worldometer website, citing various sources including data from the World Health Organization. More than one million people have recovered, it said.
Philippines protests China’s creation of two new districts
THE Philippines on Thursday protested China’s creation of two new districts in the South China Sea because these are supposedly part of Philippine territory and sea zones.
“The Philippine government strongly protests the establishment of the so-called districts of Nansha and Xisha under the supposed administrative jurisdiction of its self-declared Sansha City announced on April 18, by the People’s Republic of China,” the Department of Foreign Affairs (DFA) said in a statement.
“It does not recognize Sansha, nor its constituent units, nor any subsequent acts emanating from them,” it added.
The Chinese government declared two new districts in Sansha City, which prompted Foreign Secretary Teodoro L. Locsin, Jr. to file a diplomatic protest at the Chinese Embassy in Manila.
Rival Southeast Asian claimant nations and the United States have criticized China’s recent assertive moves in the disputed waterway as the world battles the coronavirus pandemic.
DFA also flagged the Chinese names given to some features in the Kalayaan Island Group.
The agency asked China to comply with international law, including the United Nations Convention on the Law of the Sea.
It also cited the Declaration on the Conduct of Parties in the South China Sea, particularly a clause asking parties to “exercise self-restraint” in conducting activities that will escalate disputes.
The United Nations Permanent Court of Arbitration in the Haque favored the Philippines in its lawsuit against China in 2016, rejecting the latter’s nine-dash line claim to most parts of the South China Sea.
Senator Risa N. Hontiveros-Baraquel earlier slammed the plan to set up the districts on Paracel and Spratly Islands, accusing China of taking advantage of the coronavirus pandemic.
She had also asked the Philippine government to demand China to pay P200 billion worth of reef damages over its reclamation activities. — Charmaine A. Tadalan