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Five rural utilities charged more on system loss in 2019

RURAL UTILITIES remain compliant with the government’s limit on passing on system loss costs in the distribution of electricity to consumers with only five charging more than the prescribed cap in 2019, according to their association.

Lawmakers on Monday raised concerns on power providers which levied on customers the cost of system loss that exceeds the prescribed limit set by the Energy Regulatory Commission (ERC).

The Philippine Rural Electric Cooperatives Association (Philreca) affirmed that there were five out of all 121 electric cooperatives that charged as much as 20% for system loss in customers’ bills, way higher than the 12% limit. 

“Five ECs (electric cooperatives), or 4.13%, were reported to have exceeded 20% system loss due to problems such as pilferages, overloaded system, long distribution lines (which increase voltage drop), and delayed implementation of capital expenditures project due to regulatory requirements, peace and order situation, and other concerns,” it said.

This was found in the 2019 compliance report on the performance of electric cooperatives by the National Electrification Administration (NEA).

The agency is already closely monitoring said “underperforming” utilities, and are subject to a series of discussions by all concerned stakeholders, the association said.

On average, electric cooperatives were able to charge system loss cost at a 10.16% level, “a figure well within the ERC cap.”

“Of the 117 ECs assessed, 99 are within the system loss cap, 59 of which have single-digit level. Only eighteen ECs or 15% exceeded the allowable system loss cap,” it added.

Power utilities are allowed by law to recover system loss from consumers at an approved rate.

A portion of electricity that dissipates in the process of distribution due to heat, pilferage and other causes is called a system loss. The cost of incurring such loss is recovered from consumers at a rate approved by the regulator.

In 2018, the ERC ordered the gradual reduction of said charges. By 2021, private electricity distributors will charge up to 5.5% for system loss recovery from a 6.5% cap, while electric cooperatives will recover the cost at an 8% limit in 2022 from 12%.

The commission has based its prescribed caps on load density, sales mix, cost of service, delivery voltage and other technical considerations.

“Overall, however, electric cooperatives have been complying [with] regulation and standards set by government regulators on system loss as well as other technical parameters,” Philreca asserted.

The House Committee on Good Government and Public Accountability continues to probe cases of the alleged spike in electricity bills and power interruptions during the lockdown period. — Adam J. Ang

Trove of 1,000-year-old gold coins unearthed in Israel

CENTRAL ISRAEL — Israeli youths have unearthed hundreds of gold coins stashed away in a clay vessel for more than a thousand years.

The treasure was discovered on Aug. 18, the Israel Antiquities Authority said on Monday, by teenagers volunteering at an excavation in central Israel where a new neighborhood is planned to be built.

“The person who buried this treasure 1,100 years ago must have expected to retrieve it and even secured the vessel with a nail so that it would not move. We can only guess what prevented him from returning to collect this treasure,” said excavation director Liat Nadav-Ziv.

The area it was found in housed workshops at the time the treasure was hidden and the identity of the owner is still a mystery.

“It was amazing,” said Oz Cohen, one of the volunteers who found the treasure.

“I dug in the ground and when I excavated the soil, saw what looked like very thin leaves. When I looked again I saw these were gold coins. It was really exciting to find such a special and ancient treasure.”

Dating back to the ninth century Abbasid Caliphate period, the 425 24-carat pure gold coins would have been a significant amount of money at the time, said Robert Kool, a coin expert at the Antiquities Authority.

“For example, with such a sum, a person could buy a luxurious house in one of the best neighborhoods in Fustat, the enormous wealthy capital of Egypt in those days,” Kool said. — Reuters

BTr rejects bids for 20-year bonds

THE GOVERNMENT did not award the 20-year Treasury bonds (T-bonds) it offered on Tuesday as investors wanted higher returns, pushing up rates.

The Bureau of the Treasury (BTr) rejected tenders worth P46.921 billion for the reissued 20-year T-bonds yesterday even as this exceeded the government’s plan to raise P30 billion from the offering.

The bonds have a remaining life of 12 years and seven months and carry a coupon rate of 3.635%.

Had the BTr made a full P30-billion award, the average rate of the notes would have been quoted at 3.501%, lower than the 5.341% fetched in the Nov. 25 auction, which was when the 20-year tenor was last offered.

Yesterday’s auction marked the first time in five months of weekly auctions that the BTr did not accept any tenders.

The last time it rejected all bids was in late March when rates shot up because investors opted to hold on to cash as the country was placed under one of the world’s strictest lockdowns to curb the spread of the coronavirus.

Yields on government securities have been on a downtrend since then as investors flocked to safe-haven assets amid uncertainties due to the pandemic.

National Treasurer Rosalia V. de Leon said they did not award any 20-year bonds yesterday after market participants asked for higher rates following the Bangko Sentral ng Pilipinas’ (BSP) move to pause its monetary easing cycle.

“Bids [were] way too high versus valuation for the tenor. [Investors were] asking for higher return for additional duration as [the] BSP takes [a] pause in [its] accommodative stance,” Ms. De Leon told reporters via Viber following the auction.

She said the Treasury expected the bonds to be quoted a yield below three percent.

A bond trader said the average yield that would have been fetched by the reissued papers had the Treasury made a full award was higher compared to “the nearest liquid benchmark, FXTN-20-17, which is trading only at 2.7-2.75%.”

A second bond trader also attributed the uptick in rates to the BSP’s decision to stand pat on its current policy settings.

The BSP’s Monetary Board last week kept benchmark interest rates steady amid a benign inflation outlook and signs of economic recovery. Rates on the BSP’s overnight reverse repurchase, lending and deposit facilities are currently at record lows of 2.25%, 2.75% and 1.75%, respectively.

Despite yesterday’s auction result, Ms. De Leon said the Treasury expects rates to remain steady on the back of ample liquidity in the market and investors’ preference for safe-haven assets.

The second bond trader meanwhile said the rates will continue to move sideways as headline inflation is expected to remain within the 2-4% target this year.

“Moving forward, inflation was up last time at 2.7% (July) but then again, it is still within the target so there’s no reason for yields to go up so in the meantime. [We see] sideways [movement for now],” the trader said.

The BTr raised P143.033 billion from the local market through its weekly auctions of government securities this month, lower than its original plan to borrow P170 billion.

Broken down, it borrowed P113.033 billion via Treasury bills (T-bills) and P30 billion from T-bonds versus the programmed P110 billion and P60 billion, respectively.

The Treasury also raised a record P516.3 billion from its offer of five-year retail Treasury bonds earlier this month. The bonds fetched a coupon of 2.625% amid strong liquidity in the market.

The government is looking to borrow around P3 trillion this year from local and foreign lenders to plug its budget deficit seen to hit 9.6% of gross domestic product. — B.M. Laforga

Closure of mall-based National Book Store ‘not true’

NATIONAL BOOK STORE (NBS) maintains that the majority of its stores will remain open, denying social media posts that the company is closing down branches in high-end malls.

In response to a social media post claiming that the company is closing down mall-based stores in favor of stand-alone branches and e-commerce selling, NBS, in a statement on Monday, said that “the story is not true” and that the company is adapting to challenges created by the pandemic. 

“In fact, the support given to us by our mall partners, especially Ayala, Robinsons and SM, in whose malls most of our stores are located, has given us a chance to focus our energies in trying to overcome this crisis and continue to serve our customers and communities,” NBS said.

But the company said that there will still be a “small number” of nonperforming branches that could be evaluated for closure or downsizing. NBS did not respond to questions about the number of stores that may be evaluated and the reasons behind possible downsizing.

Many retailers have been shutting down operations throughout the lockdown as customer foot traffic declined.

After the Metro Manila lockdown was once again eased, the Philippine Retailers Association (PRA) said that it expects some improvement in consumer spending — although this would still be well below pre-pandemic levels.

PRA Vice-Chair Roberto S. Claudio said that lower demand is caused by limitations in public transportation and some apprehension from the public to go to malls.

National Book Store also said that it is developing new ways for customers to shop from home, including via SMS, Viber and Facebook Messenger. The store’s products can already be bought on its website, along with e-commerce platforms Shopee and Lazada.

Online shopping increased during the lockdown, with Lazada Philippines in July saying that its daily online seller onboarding tripled during the lockdown compared to preceding months. — Jenina P. Ibañez

Nominations for new National Artists now being accepted

THE National Commission for Culture and the Arts (NCCA) and the Cultural Center of the Philippines (CCP) are now accepting nominations for the Order of the National Artists.

Jointly administered by the NCCA and CCP and conferred by the President of the Philippines, the Order of National Artists is the highest national recognition given to Filipino individuals who have made significant contributions to the development of Philippine Arts.

The nominees should only be nominated under one category where the artist has made his/her most substantial contribution but his/her other merits will be added to the citations as well. The categories are: Architecture and Allied Arts, Dance, Design, Film and Broadcast Arts, Literature, Music, Theater, and Visual Arts.

The Order of National Artist is given to artists who have met the following criteria:

• living artists who are Filipino citizens at the time of nomination and at the awarding, as well as those who died after the establishment of the award in 1972 but were Filipino citizens at the time of their death;

• artists who through the content and form of their works have contributed in building a Filipino sense of nationhood;

• artists who have pioneered in a mode of creative expression or style, thus earning distinction and making an impact on succeeding generations of artists;

• artists who have created a substantial and significant body of works and/or consistently displayed excellence in the practice of their art form, thus enriching artistic expression or style; and,

• artists who enjoy broad acceptance through prestigious national and/or international recognition, such as the Gawad CCP para sa Sining, CCP Thirteen Artists Award, and NCCA Haraya Awards (Alab and Dangal).

Nominations should be submitted on or before Dec. 15, 2020, to either the Order of the National Artists Secretariat, Office of the Executive Director, National Commission for Culture and the Arts, NCCA Building, 633 General Luna Street, Intramuros, 1002 Manila, or to the Order of the National Artists Secretariat, Office of the Artistic Director, Cultural Center of the Philippines, Roxas Boulevard, 1300 Pasay City.

The Order of National Artist was established under Proclamation No. 1001, on April 27, 1972. The first award was conferred posthumously later that year to painter Fernando Amorsolo.

For more details, contact Elijah Joshua Benjamin D.F. Aban, Project Officer, Awards and Recognition Unit, through via e-mail (onaa@ncca.gov.ph) or visit the NCCA website (www.ncca.gov.ph).

Arts & Culture (08/26/20)

Exhibition featuring sustainable Japanese Architecture

THE JAPAN Foundation, Manila and the Metropolitan Museum of Manila, in cooperation with the Embassy of Japan in the Philippines present the traveling exhibition Built Environment: An Alternative Guide to Japan which will be physically exhibited from Sept. 1 to 30 at the Metropolitan Museum of Manila. The exhibit presents a rarely considered aspect of Japan, taking the built environment of the various regions of a country that is geographically diverse and often struck by natural disasters, with the aim of examining how Japanese people have engaged and struggled with the natural environment and how they have carried on and created locality. The exhibition features photos, texts, and videos to introduce a total of 80 buildings, civil-engineering projects, and landscapes which extends from the modern era of the late 19th century to the present, and geographically, it includes at least one offering from each of Japan’s 47 prefectures. It has been exhibited in countries like Vietnam, South Korea, China, India, and more. The exhibit will be launched on Sept. 1, 4 p.m., during an online webinar which will feature a virtual tour of the exhibit at the MET followed by a dialogue with the curator and a panel of Japanese and Philippine architects and an engineer focusing on the built environments both in Japan and the Philippines, using responsive design that withstand natural disasters including a perilous pandemic in both countries. The webinar will feature the exhibit curator Kurakata Shunsuke (Associate Professor of Faculty of Engineering at Osaka City University), Kurokawa Sho (CEO, Sho Kurokawa architects Co. Ltd.), Jo Miranda (Chairman, United Architects of the Philippines-Emergency Architects), Lorena Hernandez (Project Team Leader, TAO-Pilipinas) and will be moderated by architect Emmanuel Minana and a member of the museum’s Board of Trustees. The online webinar  will be held on Zoom and Facebook Live. To register, go to this link: http://bit.ly/OurBuiltEnvironmentsWebinar.

British Council holds virtual exhibit

THE BRITISH Council and National Museum of the Philippines present the virtual exhibition Together Apart — Art world voices that connect us now, through the British Council in the Philippines’ website (https://www.britishcouncil.ph/programmes/arts/visual/platform). The exhibition highlights thoughts of art leaders in the Philippines, UK and other parts of the world during a global crisis. Responding through artworks from the British Council Collection, their reactions are deeply personal and serve as a reminder of the transformative power of art. Co-curated by the National Museum of the Philippines, the presentation allows a global audience to discover select pieces from the National Fine Arts Collection. The artworks bridge circumstances from the time they were created to today’s context. They evoke familiar feelings and perspectives presented through the exhibition themes, from anxiety to the need for solidarity. Notable artworks include those by well known British portraitist Lucian Freud and pioneering female abstract artist Nena Saguil from the Philippines, just to name a few.

Virtual Design Week 2020

AS PART of the Virtual Design Week 2020: Reflections on a New Digital Earth, a roundtable discussion entitled “Philippine Talks Academe: Equality, Community and Sustainability,” will be held, with industry experts and academic leaders speaking on how the Philippine creative industry and leading art educational institutions are adapting to the new normal despite the digital divides. Hosted by ACIIID (A Contemporary of Inspirational, Influential, & Interdisciplinary Design(er)s), a digital platform dedicated for news, inspirations and trends on design, fashion and the arts, the event aims to tackle the most pressing social issues today that affect design through the lenses of sustainability, equality and community. The panel will be comprised of De La Salle-College of Saint Benilde School of Design and Arts Center for Campus Art Director and Curator Gerry Torres, who will explain art and design in the academic scene and how the pandemic transformed physical exhibits to online installations and exhibitions, and animator and former Toon City Animation mentor Ian Tamara, who will discuss the technological innovations and methodologies of design in the Philippines. They will be joined by iAcademy School of Design and Arts Dean Jon Cuyson, who will identify the differences of virtuality and reality and the strategic improvement for industry partners, and University of Santo Tomas Assistant Professor Gemma Mendoza, who will explore the design cultures across South East Asia. The featured industry experts will likewise discuss the challenges brought by the transition and share their personal experiences and future projects. Benilde School of Design and Arts educator Nandi dela Paz will be the moderator. “Philippine Talks Academe: Equality, Community and Sustainability” will be held on Aug. 27, 7 p.m., via Zoom. Interested participants may register through this link: https://us02web.zoom.us/webinar/register/WN_gsae5n_lRiOSNqXHCyzbWw.

Silverlens exhibits extended

SILVERLENS GALLERY’S current exhibitions, Hoarding Fossils in Blankets by Patricia Perez Eustaquio and Dashiell Manley’s eponymous show, will be extended until Sept.12. While viewable online, the gallery encourages viewers to see these exhibitions in person as there is hardly a substitute that compares to the experience of standing before a work of art and absorbing its scale, as well as the delicate nuances missed by its photographic reproduction. To ensure the health and safety of the gallery staff, guests, and larger community, the gallery is taking strict measures to prevent the spread of COVID-19. Thus the gallery is not accepting any walk-ins. Gallery visits are limited and by appointment only, from Tuesday to Saturday, 10 a.m. to 4 p.m. Upon entering the compound, security guards will take the visitor’s temperature and they will be asked to fill out a health inspection form. Hand sanitizer will be provided, and high-touch surfaces will be cleaned following each visit. All visitors are required to wear masks. The gallery is at 2263 Don Chino Roces Ave. Ext., Makati.For details, visit www.silverlensgalleries.com, call 8816-0044, 8816-0044, or 0917-587-4011, or e-mail info@silverlensgalleries.com.

54 works selected for Ateneo art prize exhibit

AMID THE CRISIS brought about by the COVID-19 (coronavirus disease 2019) pandemic, the Ateneo Art Gallery celebrates its 60th anniversary with the announcement of the selected entries to the AAG-Marciano Galang Acquisition Prize (MGAP). On Aug. 27, AAG also celebrates the 96th anniversary of Fernando Zóbel, its founding donor. With the theme centered on COVID-19, MGAP encouraged Filipino artists to submit works on paper that reflect the turmoil, struggles, initiatives made, and hopes as the country continues to navigate through the pandemic. The AAG received 329 entries after closing its call last June from which 54 works on paper, rendered in different media, were selected by a jury to be part of the upcoming AAG-MGAP exhibit, which is tentatively scheduled for November. Each artist will receive a prize of P5,000 for each artwork selected for the show. Out of the 54 selected entries, the AAG will acquire 15 works for the museum’s permanent collection. The Embassy of Italy, through Ambassador Giorgio Guglielmino, will also purchase two additional works for the growing Philippine contemporary art collection of the Embassy. Each acquired work will be awarded an additional P15,000 cash prize. The Ateneo Art Gallery — Marciano Galang Acquisition Prize was introduced last April following the cancellation of the 2020 Ateneo Art Awards due to the pandemic. With support from the Embassy of Italy, the AAG-MGAP program aims to extend assistance to the Filipino artist community who have been greatly affected by the crisis. The program also honors visual artist Marciano Galang (1945 – 2001), whose 1964 assemblage Cavite was the first work acquired through Fernando Zóbel’s Purchase Fund. The Purchase Fund was conceived in 1965 in line with Zóbel’s mission to build and strengthen the AAG’s contemporary art collection by funding the acquisition of new works by Filipino artists.

Ayala Museum goes virtual

FIVE MONTHS after quarantine started, Ayala Museum launched Ayala Museum Virtual — officially continuing the museum’s commitment in bringing Philippine art and culture to the virtual space. Ayala Museum Virtual marks a new phase in the virtual programming of Ayala Museum and Filipinas Heritage Library, which include museum programs “History Comes Alive! with Prof. Ambeth Ocampo” and the Rush Hour Concerts with the Manila Symphony Orchestra online for the first time, as well as new programs like Muni-Muni Stories, a podcast by the Filipinas Heritage Library on Original Pilipino Music. (Go to this link to view the Ayala Museum Virtual Trailer: https://www.youtube.com/watch?v=dLpnR7_8_Fg.) Kicking off this slate of new virtual programs is “History Comes Alive! With Professor Ambeth Ocampo,” a lecture series that breaks down Philippine history for a contemporary audience. Now on its 10th year, the online lectures will be held on Sept. 18 and Oct. 2, and will take on two topics that have defined the year 2020: Pandemics and Fake News. The access rate for one lecture is P1,000 and P700 forteachers and students. The lectures as well as the upcoming Rush Hour Online Concert, are part of a fundraising drive called “Get Access, Give Access,” with proceeds going to Ayala Foundation’s Student Online Access Program that gives students online connectivity for the school year. For a donation of P2,700, an Ayala Museum’s Virtual pass will give access to two lectures and one Rush Hour Concert. Virtual Passes can be availed at http://bit.ly/AMVirtualEvents2020. “History Comes Alive!” Individual Passes are also available. For more information, visit the museum’s website at www.ayalamuseum.org. For event inquiries, e-mail virtualevents@ayalamuseum.org.

China’s banks hire thousands in latest rescue mission

CHINA’S MEGA BANKS are ramping up their recruitment of fresh graduates as a record number enter the labor market, joining other state-owned firms in boosting employment even as lenders deal with plunging earnings and ballooning bad debt.

The four biggest state banks, led by Industrial & Commercial Bank of China Ltd. (ICBC), this month kicked off their autumn campus hiring, instead of in November as in previous years. China Construction Bank Corp. plans to add 16,000 graduates this year, up from 13,000 last year. Bank of China Co. will increase its hiring by 15% to more than 10,000, according to their advertisements. Agricultural Bank of China Ltd. (AgBank) already hired 4,500 people during the spring round.

“This is in direct response to the government’s call to protect jobs,” said Tang Jianwei, a Shanghai-based analyst at Bank of Communications Co.’s research institute. “Even though the big banks are facing pressure on their own earnings, they still need people to develop the business. Also it’s important for them to assume social responsibility.”

China’s largest banks have already been leaned on by Beijing to prop up the economy. They’ve been told to pump cash out to small- and medium-sized businesses and forgo profits by lowering interest rates and providing relief on trillions of yuan of troubled loans. Most recently, the government doubled down on pressure to get the major state-owned financial groups to cut salaries.

Together, the four biggest banks employ 1.6 million people and Construction Bank’s hiring plans alone approach the combined staff additions made by the largest US and European banks in this year’s first half. Chinese lenders are mostly looking to hire for customer service, wealth management, and information technology, according to job ads on their websites.

Representatives for ICBC, AgBank, Construction Bank and Bank of China declined to comment.

Yet the tens of thousands of new jobs are but a drop in the bucket. The record 8.7 million of fresh graduates face the bleakest job prospects in decades as the global pandemic has pummeled domestic demand and exports. While inching down recently, surveyed urban unemployment hit a record at the height of China’s virus outbreak in February. Unemployment for those of prime graduate age, 20 to 24, hovered at about 20% in July, according to the country’s statistics bureau.

A report by Zhaopin.com, one of China’s biggest recruiting websites, showed that more than a quarter of recent graduates were still looking for a job as of June after hunting for one year, a period during which most would have typically landed jobs in the past.

The government has repeatedly pledged support for jobs and rolled out measures such as increasing recruitment of post-grads, strengthening support for more flexible forms of work for graduates and promoting entrepreneurship among young people. The country’s other state-owned firms have vowed to provide at least a million jobs for the most vulnerable groups, including the newly graduated.

That has done little to help Crystal Wu, who graduated in July from one of the nation’s top universities with a degree in journalism. In her search, she found herself competing against people who already had work experience and at places receiving thousands of resumes rather than the normal few hundred. At the same time, with the travel ban, many students have dropped plans for study overseas, further tightening the jobs market.

“I knew it would be a tough market but this is even worse than I expected,” she said. Wu has opted for doing an internship at a non-profit in Beijing, but has also spent about 20 yuan joining a WeChat group run by a recruitment agency sharing tips on how to get a job at a bank. She prefers a policy lender such Asian Infrastructure Investment Bank or China Development Bank.

Finance is a coveted job. The average annual salary for non-private financial industry employees stood at about 131,000 yuan ($19,000), the third highest among 19 sectors tracked by the statistics bureau and more than 40% higher than the overall level.

Combined earnings at China’s more than 1,000 commercial banks slumped the most in at least a decade in the second quarter as bad loans hit a record 2.7 trillion yuan. The banking regulator said over the weekend that COVID-19 is a centennial catastrophe and that financial industry will need to step up further to get the economy fully back on track.

Globally, the biggest US and European banks added 19,000 people to their payrolls in the first half of the year as demand for loans and other services surged during the pandemic and planned staff cuts were largely put on hold. Eight of the top 15 firms increased headcount this year through June, while only four reduced it with HSBC Holdings Plc having the biggest reduction. — Bloomberg

Metro Global board approves new infrastructure unit

METRO GLOBAL Holdings Corp. is forming an infrastructure subsidiary to handle projects related to the sectors of transportation and communication.

In a disclosure to the stock exchange, Tuesday, the company said its board of directors had given the green light to the incorporation of a special purpose vehicle company, which will be called Metro Renewable Transport Solutions, Inc.

Metro Global said the main purpose of the new company is to engage in infrastructure development, among others.

“[Its] primary objective is to engage in infrastructure development or providing services in relation with and in connection thereto, including but not limited to the construction of whatever kind and nature and for whatever purpose, buildings, roads, bridges, railways, ports, highways and other passages and facilities for transportation and communication,” it said.

Metro Global said it would file an application with the Securities and Exchange Commission for the formation of the new infrastructure company.

The company’s businesses include equity interests in Metro Rail Transit Holdings, Inc. and Metro Rail Transit Holdings II, Inc.

Trading of Metro Global’s shares have been suspended since February 2007. — Revin Mikhael D. Ochave

How PSEi member stocks performed — August 25, 2020

Here’s a quick glance at how PSEi stocks fared on Tuesday, August 25, 2020.

Peso rises versus dollar on improved sentiment

THE PESO strengthened further on Tuesday on improved market sentiment following the release of latest data on trade and remittances.

The local unit closed at P48.50 versus the dollar on Tuesday, gaining 12 centavos from its P48.62-per-dollar finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s session at P48.52 against the greenback, which was also its worst showing for the day. It traded within a very narrow range, with its closing level of P48.50 also logged as its intraday best.

Dollars traded climbed to $674.6 million from Monday’s $481.8 million.

The peso continued to appreciate as lawmakers ratified the Bayanihan II bill which seeks to provide a P165-billion fund to boost the economy amid the fallout from the coronavirus disease 2019 (COVID-19) pandemic.

Along with the stimulus measure, BDO Unibank, Inc. Chief Market Strategist and economist Jonathan L. Ravelas said sentiment on the peso has improved following the release of positive data on trade and remittances.

“The narrowed trade deficit means foreigners want more peso and less dollars. That’s good as the higher demand for the peso results in appreciation,” Mr. Ravelas said in a phone interview.

“The remittances have also recovered in June which has encouraged even more demand for peso in exchange for cheaper imports to be bought,” he added.

On the other hand, appetite for dollars remains weak as the virus continues to spread in the United States, he said.

Earlier this month, the Philippine Statistics Authority reported that the country’s trade deficit stood at $1.3 billion in June, narrower than the $2.64-billion gap a year ago. This, as exports dropped 13.3% to $5.33 billion while imports declined 24.5% to $6.63 billion.

Meanwhile, cash remittances coursed through banks rose 7.7% to $2.465 billion in June, its fastest growth rate in five months and snapping three consecutive months of contraction due to the pandemic, data from the Bangko Sentral ng Pilipinas (BSP) released earlier this month showed.

Year to date, remittances declined by 4.2% to $14.019 billion. The BSP expects cash remittances to drop by 5% this year due to the COVID-19 pandemic.

DOLLAR SLIPS
The dollar slipped on Tuesday and Asia’s trade-exposed currencies rose after the United States and China both hailed a phone call between their top trade officials as a success, Reuters reported.

Sentiment, and support for riskier currencies over the dollar, was also boosted by a Financial Times report which said that US authorities were considering fast-tracking approval for a COVID-19 vaccine being developed by AstraZeneca and Oxford University.

The safe-haven yen was steady at 105.95 per dollar.

Elsewhere, the trade-sensitive South Korean won rose with the mood, while the Indian rupee picked up where it left off after surging 1% on Monday as the central bank unexpectedly broke with a recent pattern of dollar buying. — with Reuters

Philippine stocks end higher on US-China talks

By Denise A. Valdez, Senior Reporter

THE PHILIPPINE Stock Exchange index (PSEi) recovered on Tuesday, but still fell short of hitting the 6,000 mark on lackluster trading.

The main index picked up 9.86 points or 0.16% to close at 5,953.44; while the broader all shares index increased 8.03 points or 0.22% to end at 3,548.60.

“Local shares traded between negative and positive before settling in the green as news came out that the US said both sides see progress on a Phase 1 with China,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

News wires reported Tuesday, Philippine time, that representatives from the US and Chinese governments held trade negotiations over the phone, specifically, to discuss the Phase 1 trade deal that the two economies signed earlier this year.

“Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement,” the US Trade Representative’s office said in a statement, quoted by Reuters in a report.

The development helped improve investor sentiment after the postponement of the Aug. 15 talks between the two countries. Most Asia-Pacific stocks were trading in green territory when the local market closed.

“The market was able to end higher today, despite starting on red territory, as positive sentiment in the US markets last night — due to reports that President Trump expanded the utilization of a coronavirus treatment using plasma — spilled over to the local bourse,” Timson Securities, Inc. Trader Darren T. Pangan said in a mobile message on Tuesday.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices rose 1.35%, 1% and 0.60%, respectively, on Monday. This, after reports that the US government is considering fast-tracking an experimental vaccine before November and using plasma to treat coronavirus patients, the Financial Times said.

“We’ll have to observe if the index manages to stay above the 5,900 support level throughout the week, with nearest resistance lying at the 6,200 area,” Mr. Pangan added.

Three sectoral indices at the local bourse ended Tuesday’s session with gains. Services grew 19.69 points or 1.35% to 1,473.29; industrials improved 33.06 points or 0.42% to 7,890.84; and mining and oil added 17.94 points or 0.31% to 5,791.83.

On the other hand, financials lost 5.59 points or 0.49% to 1,116.19; property shed 6.34 points or 0.22% to 2,805.34; and holding firms slid 0.65 point or 0.01% to 6,169.07.

Some 1.25 billion issues valued at P4.56 billion switched hands on Tuesday, down from the previous day’s 2.28 billion issues valued at P10.27 billion.

Decliners stood at 109, advancers at 84, and unchanged names at 51 at the end of trading.

Net foreign selling declined to P463.07 million on Tuesday from P1.04 billion in the last session.

Senate body seeks abolition of graft-saddled PhilHealth

THE Philippine Health Insurance Corp. should be abolished and replaced by a new agency through legislation, the Senate blue ribbon committee said in a report on Tuesday after a probe that exposed corruption among high-ranking officials.

“The agency’s vice presidents and regional directors are the real mafia there,” Senator Richard J. Gordon, who heads the committee, told an online news briefing in Filipino.

The lawmaker said the state insurance company had failed to reform itself because high-ranking officials have been involved in various anomalous.

He cited the case of former PhilHealth acting President Roy B. Ferrer, who discovered the ghost dialysis scheme. Mr. Ferrer tried to rotate regional vice presidents but was later sued for the move.

“We do not mean here to prejudge and say he is innocent,” Mr. Gordon said. “We will let the courts decide his fate. But what is beginning to appear is a pattern that is also seen in the fate of De la Serna,” according to a copy of the committee report.

The body was referring to Celestina Ma. Jude P. de la Serna, who was PhilHealth chief between April 2017 and June 2018. She likewise pushed for the assignment rotation of regional officials.

Mr. Gordon recommended that PhilHealth regional directors be reshuffled and subjected to regular lifestyle checks.

He also asked the Office of the Ombudsman to conduct its own investigation for possible plunder charges against some PhilHealth officials.

The Senate committee wants to establish an online death verification system across PhilHealth, the Social Security System and Government Service Insurance System among other retirement services.

It also pushed the creation of a monitoring group on transactions and an Insurance Fraud Detection bureau.

Meanwhile, Justice Secretary Menardo I. Guevarra said a faulty information technology system had made it easy for PhilHealth officials to commit fraud.

“The IT system of PhilHealth is fragmented and it can easily be manipulated because there is no centralized control over the management information system,” said during a televised meeting with President Rodrigo R. Duterte on Monday night.

The Justice department, which is conducting a separate probe of PhilHealth, was focusing on the agency’s legal system and financial management, Mr. Guevarra said.

Mr. Duterte vowed to cleanse the agency and prosecute corrupt PhilHealth officials.

PhilHealth President Ricardo Morales and other officials have been accused of pocketing billions of pesos in taxpayers’ money that has bled the agency to death.

The Senate committee found gross overpricing of equipment bought by PhilHealth and favoritism in the release of so-called interim reimbursement mechanism funds.

The mechanism allowed the agency to grant advance payments to health institutions by up to three months during the pandemic, even if only P1 billion had been liquidated.

Former PhilHealth anti-fraud legal officer Thorsson Keith earlier told the Senate committee the agency’s top officials had pocketed P15 billion through fraudulent programs.

He said the sum came from overpriced equipment the agency had bought, as well as from a program that gave financial aid to health facilities amid a coronavirus pandemic.

PhilHealth officials have denied the allegations. — Charmaine A. Tadalan and Gillian M. Cortez

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