How PSEi member stocks performed — July 23, 2020
Here’s a quick glance at how PSEi stocks fared on Thursday, July 23, 2020.
Bargain hunters keep PSEi at 6,000 amid gloom
By Denise A. Valdez, Reporter
THE MAIN INDEX sank on Thursday, hitting the 5,900 level intraday before recovering at the close on last-minute bargain hunting.
The bellwether Philippine Stock Exchange index (PSEi) ended Thursday’s session at 6,029.01, down 35.25 points or 0.58% from a day ago. The broader all shares index lost 29.07 points or 0.81% to 3,540.02.
The PSEi opened at its intraday high of 6,076.9 and fell to as low as 5,915.83 during the session before returning to the 6,000 level to close at 6,029.01.
“Local shares closed lower once again after news on the closure of the Chinese consulate in Houston, which fuelled worries about US-China relations. However, some last-minute bargain hunting pushed the market above 6,000 due to optimism over the likelihood for a new spending bill and potential coronavirus vaccines,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The US government ordered the suspension of operations of the Chinese consulate in Houston on Thursday following long-running tensions between the two countries.
In a report from CNN, the US State department was quoted as alleging China to be engaged in “massive illegal spying and influence operations,” but not specifying what triggered the closure order.
As was the case over the past couple of years since the US and China started arguing over its trade relations, many global equities were in red territory when the local market closed on Thursday.
However, bargain hunters kept the PSEi within the 6,000 level despite the gloom in global markets.
“After several days on the sidelines, buyers decided to scoop up shares of blue chips that have been sold off heavily early in the week,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
He added that the government’s order to public hospitals to increase allocation for coronavirus disease 2019 (COVID-19) patients helped offset negative investor sentiment.
At the end of Thursday’s session, industrials dropped 121.42 points or 1.64% to 7,282.10; mining and oil shed 73.21 points or 1.42% to 5,056.41; services trimmed 19.43 points or 1.36% to 1,401.06; and holding firms shaved off 64.68 points or 1.01% to 6,290.54.
Two indices gained: financials by 2.46 points or 0.2% to 1,181.80 and property by 4.40 points or 0.14% to 2,971.53.
Value turnover dipped to P4.27 billion with 1.61 billion issues switching hands from the previous day’s P4.50 billion with 3.01 billion issues.
Decliners numbered thrice as much as advancers, 150 against 50, while 36 names ended unchanged.
Foreign investors remained sellers, with net outflows growing to P710.59 million on Thursday from the P393.11 million on Wednesday.
Peso up on less safe-haven demand, profit taking
THE PESO appreciated against the greenback on Thursday on the back of profit taking and less safe-haven demand for the dollar due to improving market sentiment.
The local unit closed at P49.365 per dollar on Thursday, gaining a centavo from its P49.375 finish on Wednesday, data from the Bankers Association of the Philippines.
The peso started the session at P49.45 versus the dollar, which was also its weakest showing for the day. Meanwhile, its intraday best was at P49.36.
Dollars traded dropped to $481.2 million from the $567.13 million seen on Wednesday.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s strength to gains in the US stock market, which reduced demand for the greenback.
“The peso closed stronger due to less demand for the US currency as a safe-haven investment in view of gains in the US stock market,” Mr. Ricafort said in a text message.
Wall Street ended higher on Wednesday after a see-saw session as investors digested mixed quarterly results and contentious stimulus negotiations in Washington, Reuters reported.
The major stock indexes oscillated for much of the day but ended in the black. The Nasdaq had the smallest gain, capped by a 1.2% drop in Amazon.com, Inc. shares.
The Dow Jones Industrial Average rose 165.44 points or 0.62% to 27,005.84; the S&P 500 gained 18.72 points or 0.57% to 3,276.02; and the Nasdaq Composite added 25.76 points or 0.24% to 10,706.13.
Meanwhile, a trader said the peso gained on profit taking.
“The peso appreciated from profit taking as the dollar initially surged after the US ordered the withdrawal of the Chinese consulate in Houston,” the trader said in an e-mail.
On Wednesday, the US State department said it is giving China 72 hours to close its Houston consulate due to accusations of spying. US President Donald J. Trump said the closure of more Chinese consulates was “always possible”.
For today, Mr. Ricafort gave a forecast range of P49.25 to P49.45 versus the dollar while the trader expects the local unit to move around the P49.35 to P49.55 band. — L.W.T. Noble with Reuters
Gov’t reimposes ban on leisure travel abroad for insurance lack
THE Philippine government has reimposed a ban on leisure travel overseas after insurance companies rejected coverage for Filipinos seeking to leave the country amid a coronavirus pandemic.
Only one insurance company agreed to cover rebooking and accommodation expenses of travelers whose trips might get canceled, presidential spokesman Harry L. Roque told an online news briefing on Thursday.
“So the Inter-Agency Task Force suspended nonessential travel in the meantime,” he said.
The government lifted the ban on nonessential overseas travel at the start of the month as part of a plan to reboot the economy by relaxing lockdowns meant to contain a coronavirus pandemic.
Filipinos with a tourist visa had been allowed to travel abroad as long as they adhere to certain requirements, including adequate travel health insurance. Travelers must also sign a declaration acknowledging the risks.
There should also be no ban on Filipino tourists in the destination country. Returning Filipinos must undergo a 14-day quarantine and coronavirus swab test.
Mr. Roque said travelers with confirmed flight bookings as of July 20 would be exempted from the new travel ban.
President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation including flights to contain the pandemic. People should stay home except to buy food and other basic goods, he said.
Mr. Duterte extended the strict lockdown twice for the island and thrice for Manila, the capital and nearby cities. The lockdown in most areas have been eased, but mass gatherings remained banned.
Filipino tourists were barred from flying out of the country. Only overseas Filipino workers, permanent residents abroad and holders of a student visa were allowed to leave.
Meanwhile, Mr. Roque said essential outbound travel was now allowed. Travelers must acknowledge the risks in writing and compliance with quarantine protocols when they come home.
The travel ban was lifted as the Department of Health (BoP) reported 1,540 new coronavirus infections on Tuesday, bringing the total to 47,873.
Many countries around the world have imposed travel bans to help curb the spread of the coronavirus. Airports have been shut down, with incoming and outgoing flights suspended, while nationwide lockdowns were imposed to contain the global pandemic.
The virus has sickened 15.4 million and killed about 631,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.
More than 9.4 million people have recovered, it said.
At least 93% of the global population now lives in countries with coronavirus-related travel restrictions, with about three billion people living in countries enforcing complete border closures to foreigners, according to recent analysis by the Pew Research Center.
The US State Department on March 19 issued a Level 4 “do not travel” advisory, asking American citizens to avoid any global travel.
The European Union also started a 30-day ban on nonessential travel to at least 26 European countries from the rest of the world. — Gillian M. Cortez
Palace blames Health dep’t for unclear rules
THE presidential palace on Thursday blamed Health authorities for unclear home quarantine rules that supposedly caused a surge in coronavirus infections.
“The Department of Health (DoH) wasn’t clear that asymptomatic and mild cases can stay home,” presidential spokesman Harry L. Roque told reporters on Thursday in Filipihno. “They didn’t clear that you must have your own room and bathroom.”
But the government is correcting it now, he said. “We have fully intensified our testing.”
Health Undersecretary Maria Rosario S. Vergeire earlier said home quarantine was still allowed as long as health protocols were followed.
She issued the statement after Cabinet Secretary Karlo Alexei B. Nograles told DZBB radio home quarantine was being discouraged to contain the pandemic.
An inter-agency task force made up of Cabinet secretaries has launched a program accepting COVID-19 patients whose houses are not suitable for home quarantine at isolation facilities.
“That less than two weeks after this Oplan Kalinga was launched, our isolation centers were getting full,” Mr. Roque said. “That’s how great the positive cases are because of intensified testing.”
“The DoH perhaps should have been clearer at the onset that you should stay home if you have your own room and you have your own bathroom,” he said.
DoH reported 2,200 new coronavirus infections on Thursday, bringing the total to 74,390. The death toll rose to 1,871 after 28 more patients died, while recoveries increased by 760 to 24,383, it said in a bulletin. There were 48,136 active cases, it added.
Health Undersecretary Maria Rosario S. Vergeire traced the increase in deaths to reports from Central Visayas.
She reiterated that confirmed COVID-19 patients with mild or no symptoms may get home quarantined if they have their own bedroom and toilet. Otherwise, they should be treated at the nearest temporary treatment and monitoring facility, she said.
People under home quarantine must also not have elderly, pregnant, or family members with medical conditions in the house.
Meanwhile, the palace said no staff member of Radio Television Malacañang (RTVM) had tested positive for the coronavirus, correcting an earlier statement in the day that said otherwise.
Mr. Roque said some workers from the Presidential Communications Operations Office had been infected with the virus, not from the Office of the Presidential Spokesperson. — Gillian M. Cortez and Vann Marlo M. Villegas
Four more lawsuits filed vs terror law
FOUR MORE lawsuits have been filed questioning the validity of the government’s expanded law against terror at the Supreme Court.
Constitutional experts, lawmakers and human rights groups asked the tribunal to stop the government of President Rodrigo R. Duterte from enforcing the law, which they called a “weapon against constitutionally protected speech.”
The National Union of Journalists also filed a separate pleading asking the court to void the law, while youth groups filed their own. Muslim lawyers likewise questioned the legality of the law, bringing the total lawsuits against the Anti-Terrorism Act to 16.
Constitutional framers Florangel Rosario-Braid and Edumundo Garcia said the definition of the crime of terrorism is “breathtakingly vague and overbroad.”
They were joined by Senators Francis N. Pangilinan and Leila M. de Lima and Quezon City Rep. Jose Christopher Y. Belmonte, former Senators Sergio R. Osmeña III and Wigberto E. Tañada, former Deputy Speaker Lorenzo R. Tañada and former party-list Rep. Loretta Ann P. Rosales.
“Given the vagueness of the definition of terrorism in the assailed law, its enforcement and implementation will encroach on basic rights and fundamental freedoms, particularly freedom of speech and of expression,” according to a separate petition filed by the journalists.
They also said the law violates people’s right to due process and the separation of powers after a proposed Anti-Terror Council was empowered to order the arrest of suspected terrorists.
Students from the University of the Philippines Diliman, De La Salle University, Ateneo de Manila University and University of Santo Tomas said the law leads to a “chilling effect” by regulating protected speech.
“Public discontent against the ineptitude of the government in confronting the pandemic is already apparent,” according to a copy of their suit. “No one can and should blame the Filipino people for their tendency to express their discontent as they see more and more of their countrymen die or lose their livelihoods while government officials simply endeavor to further consolidate their power and selectively apply harsh laws to the powerless and uninfluential.”
Muslim lawyers said the intention of the law was “laudable” but it has provisions that undermine the safety of the people and has “vague provisions susceptible to multiple interpretations.” “The vague provisions would victimize innocent people,” they said.
The law, which took effect on July 18, considers attacks that cause death or serious injury, extensive damage to property and manufacture, possession, acquisition, transport and supply of weapons or explosives as terrorist acts.
It also allows the government to keep a suspect in jail without an arrest warrant for 14 days from three days previously.
Justice Secretary Menardo I. Guevarra said the government would draft the rules that will enforce the law. The Solicitor General on Thursday said the law could be enforced pending the rules.
“While there are provisions where operational details need to be spelled out or standards clearly defined in the implementing rules and regulations for the proper implementation of the law, there is no provision in the Anti-Terrorism Act that prohibits its implementation without it,” it said in a statement. — Vann Marlo M. Villegas and Charmaine A. Tadalan
Regional Updates (07/23/20)
Bird flu outbreak in Nueva Ecija contained — DA
THE bird flu outbreak in a quail farm in the town of Jaen, Nueva Ecija on March 13 has been successfully solved and contained, the Department of Agriculture (DA) said. The DA’s Bureau of Animal Industry (BAI), in a July 16 report to the World Organization for Animal Health, said the country has not posted any new case of the H5N6 Avian Influenza in poultry farms near the affected one for the last 90 days since cleaning and disinfection procedures were completed. “All laboratory tests yielded negative results for both quarantine and surveillance zones. Early reporting and early multi-agency response provided effective closure of the Nueva Ecija avian flu incident,” Mr. Domingo said. “All laboratory tests yielded negative results for both quarantine and surveillance zones. Early reporting and early multi-agency response provided effective closure of the Nueva Ecija avian flu incident,” BAI Director Ronnie D. Domingo said in a statement. However, Mr. Domingo said the Philippines cannot be declared as bird flu-free just yet as surveillance activities are still ongoing in other areas. Around 12,000 birds were culled while 3,000 died from the disease at the farm in Jaen. — Revin Mikhael D. Ochave
Antique hiring 612 interns to serve as ‘para-teachers’ for blended learning system
MORE THAN 600 interns will be tapped as “para-teachers” in Antique’s primary and secondary schools as the public education system adopts a blended learning program for the new school year that will start Aug. 24. The para-teachers will be hired under the government’s internship program handled by the Department of Labor and Employment (DoLE). A survey conducted by the DepEd Schools Division of Antique indicates 38.50% of the province’s parents or guardians cannot provide learning assistance to children at home due to limited educational attainment or are currently employed. “This will be a partnership between DoLE-Antique Field Office and the DepEd (Department of Education) Schools Division of Antique. A total of 612 interns will be capacitated… in the implementation of the new learning modalities in all the barangays and the school districts,” Antique Lone District Representative Loren B. Legarda said in a statement. Based on the DoLE-Antique guidelines, the interns will be engaged from Aug. 17 to Dec. 15, with 88 working days. Each will receive P395 per day, or P34,760 for the duration of the internship. Application is until July 31. Priority will be given to those with a degree in education and knowledge on information technology, 18-30 years old, and residents of the area of assignment.
After tree-cutting moratorium, Baguio council proposes ban on residential zone exemptions
THE BAGUIO City council has passed on first reading a law that aims to stop the construction of commercial projects in residential zones through a ban on the application and issuance of exemption permits. The proposed ordinance, according to a statement from the council, was upon the recommendation of Assistant City Planning and Development Officer Antonette A. Anaban, who raised the matter during a July 13 hearing on the cutting of pine trees in Outlook Drive Barangay for a condominium project. “Aside from a tree-cutting moratorium, perhaps we should also consider the moratorium for the applications for zoning exemptions kasi hindi nako-control… Ang dami-dami talagang (because it is not being controlled… there really are so many applications) for exemptions,” Ms. Anaban said. She added that the ban will give the city planning office time to review and update Baguio’s Comprehensive Land Use Plan. “The City Government as the regulating agency has that responsibility to counter-check the effects of these exemptions or variance on the utilization of lands covered in the zoning, thus the need to impose moratorium save for valid reasons,” states the proposed ordinance jointly authored by all council members. The proposal is now under review by the committee on urban planning, lands, and housing. The proposed ban on cutting of trees has also passed first reading and under committee review.
Parañaque sets July 31 deadline for business tax payment
BUSINESSES IN Parañaque City have only until July 31 to pay their local business tax without penalties, Mayor Edwin D. Olivarez announced on Thursday. “As a result of the extension, no interest, surcharge or any form of penalty shall be applied on any business tax, fee or charge accruing on or due and demandable during the extension period,” he said, noting that they moved the due date to give some relief to local entrepreneurs affected by the quarantine restrictions. This deadline, extended from the earlier April 20 compliance date, will be final, according to Business Permits and Licensing Office head Melanie Soriano-Malaya. She also noted that “businesses that fail to renew their business permit are, technically, not allowed to operate within the city.” Transactions can be made through the city’s new technology-enabled delivery service in partnership with Keri Delivery, Inc.
Another 9,000 stranded in Manila going home this weekend
ANOTHER 9,000 people stranded in Metro Manila are set to go back to their home provinces this weekend through the government’s Hatid Tulong Program. Presidential Management Staff Assistant Secretary Joseph B. Encabo, in a briefing on Thursday, said transportation has been arranged for those returning to various Mindanao provinces on July 25, and in the Eastern and Western Visayas Regions on July 26. Mr. Encabo said they have so far assisted about 126,000 individuals, not counting the 9,000, who were stuck in the capital following the lockdown imposed in mid-March to contain the coronavirus outbreak. Another 8,000-10,000 are still awaiting arrangements to return to their hometowns. — Gillian M. Cortez
Nationwide round-up
Garin files ‘Balik Probinsya’ bill
A MEASURE that will promote regional economic development to decongest highly urbanized areas has been filed in the House of Representatives. AAMBIS-OWA Rep. Sharon S. Garin, under House Bill No. 7111, seeks to institutionalize the “Balik Probinsya” program, which among others facilitates the reintegration of individuals to their area of origin. “The goal of the bill is to reduce this vulnerability by attaining equitable voluntary spatial distribution of the population and strengthen the resiliency of families and communities,” Ms. Garin, who chairs the economic affairs committee, said in a statement. President Rodrigo R. Duterte issued an executive order on May 6, 2020 establishing the Balik Probinsya program. “We need to encourage the urban population to return and be reintegrated in their areas of origin within the context of informed choice and voluntarism,” Ms. Garin said. The measure will also incentivize businesses and participating private companies that will relocate investments in the countryside and suburban areas through tax rationalization and financial subsidies, among other administrative support. A medium-term action plan will also be created to integrate national and regional plan. It will be managed by the provincial and city governments with the support of local population offices. — Charmaine A. Tadalan
BuCor says COVID-19 cases in national penitentiary ‘manageable’
THE BUREAU of Corrections (BuCor) on Thursday said the coronavirus situation at the New Bilibid Prison, the country’s national penitentiary, remains “manageable.” BuCor Spokesperson Gabriel Chaclag, in a briefing, said 350 have been confirmed positive for the coronavirus disease, of whom 260 are inmates and the rest are BuCor personnel. Of the total, 315 have recovered while 21 died. All the deaths involve prisoners, including nine high-profile inmates, which has prompted questions and conspiracy theories. Mr. Chaglag said all the deaths are “properly documented” and that they are following protocols on reporting to both the city health office of Muntinlupa, where the penitentiary is located, and to the Department of Health. The national penitentiary houses about 29,000 inmates. — Gillian M. Cortez
Employers call on government to bear cost of random testing
EMPLOYERS rejected a Health department’s proposal for business owners to conduct random coronavirus disease 2019 (COVID-19) testing on workers every two weeks, and called on the government to cover the cost of maintaining public health.
Health Undersecretary Maria Rosario Vergeire in a television interview last week said that businesses should randomly select workers for rapid testing that confirm the presence of antibodies.
The Employers Confederation of the Philippines (ECOP) in a statement Thursday said ideally, all employees should undergo more accurate swab tests that detect the presence of the virus instead of random rapid testing.
The group cited various medical organizations, including the Philippine Society for Microbiology and Infectious Diseases, which warned that the use of rapid antibody test kits to clear workers could result in the spread of the virus given the inaccuracy of the tests.
“However, it is unfortunate that the underfunded and inadequate healthcare system in the Philippines cannot afford to provide free COVID-19 swab testing for the people,” the group said.
ECOP said that employers should not shoulder the costs of testing, noting that most are micro, small, and medium-sized enterprises (MSMEs) facing budget constraints caused by the lockdown.
MSMEs had to either temporarily or permanently close down, the group said, especially with reduced orders from large companies amid a decline in demand, lack of raw materials, and the inability to transport goods.
“Business owners are not a government health insurance scheme to be tasked with providing for affordable and accessible health and services to all its employees in fighting the spread of COVID 19,” ECOP said.
The group added that private sector-funded testing could drive up costs for businesses focused on preserving jobs, noting that high costs could lead to their eventual closure.
“Instead, business owners should diligently impose efficient company protocols such as but not limited to wearing of masks, maintaining social distancing, and frequent handwashing that are consistent with existing governmental guidelines on workplace prevention and control of COVID-19.”
The Philippine unemployment rate surged to 17.7% in April, the highest since the government adopted new definitions for the Labor Force Survey in 2005. This translates to 7.25 million unemployed, or more than three times the 2.27 million unemployed a year earlier.
The Health department also said that it is expanding the priority list of workers for testing to include more employees in tourism, manufacturing, and public service providers.
ECOP does not oppose the measure if the cost of testing is shouldered by the government.
“It becomes an entirely different story if business will be made to do so.” — Jenina P. Ibañez
Ride-share firms allowed to charge P50 cancellation fee
THE Land Transportation Franchising and Regulatory Board (LTFRB) has allowed transport network companies (TNCs) to charge a cancellation or no-show fee of P50.
The cancellation charge applies to passengers who cancel their bookings more than five minutes after confirmation.
The LTFRB issued the memorandum circular governing the new fee on July 22.
The no-show charge applies if the passenger is not at the agreed pickup point within five minutes of the driver’s arrival.
The memorandum allows for valid cancellations, which will not incur fees. These include those that happen within the five-minute window, cancellations resulting from a driver being 15 minutes late based on the estimated arrival time indicated in the mobile app, and cancellations that take place when the driver falsely claims that he has arrived.
TNCs are required to arrange for prompt crediting of the charge to the driver’s e-wallet.
The memorandum allows TNCs to impose a 10% service charge of the amount collected as cancellation fees. — Arjay L. Balinbin
Trade department seeking P500 million to fund shared facilities
THE Trade department is requesting P500 million to fund equipment to be shared by micro, small, and medium-sized enterprises (MSME) in 2021.
The department’s shared-service facilities (SSF) program provides machinery, equipment, and tools to companies, usually targeting cooperatives, small-scale food processors and light industry.
The program’s goal is to improve product quality, tap new markets, and create new jobs.
Trade Secretary Ramon M. Lopez said in a radio interview Wednesday that the department has been working with Budget Secretary Wendel E. Avisado and Senator Christopher Lawrence T. Go to secure funding, noting that many cooperatives need equipment at this time.
“Nag-aappeal pa kami (We asked for) up to P500 million for next year.”
The Department of Budget and Management allocated P100 million for this year.
“Para nga sa additional na pondo, dahil walang na-pondo dito sa SSF eh for this year, (This year’s SSF funding is depleted, so we need more),” Mr. Lopez said.
The Department of Trade and Industry (DTI) in January said it would provide shared service facilities for agri-business to process bamboo, in line with the Philippine Bamboo Industry Council’s plans to convert at least 19,000 hectares of land to bamboo plantations.
Loan applications for MSME recovery are currently more than triple the available funding at the department’s financing arm, the Small Business Corp. (SB Corp.).
Applications are now at P3.38 billion, while SB Corp.’s initial funding was P1 billion. DTI has been seeking more funds from state banks. — Jenina P. Ibañez