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PSEi advances on bargain hunting amid concerns

LOCAL SHARES sustained their climb yesterday as investors turned bargain hunters amid the coronavirus disease 2019 (COVID-19) watch.

The benchmark Philippine Stock Exchange index (PSEi) advanced 76.72 points or 1.13% to 6,867.26 on Wednesday, while the broader all shares index gained 26.81 points or 0.66% to 4,089.06.

The PSEi’s rise is its highest in almost a month, following its 2.09% rise on Feb. 6 to 7,506.51.

“The market rose by 76.72 on last-minute bargain hunting,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message. “This is despite value turnover decreasing to P6.08 billion and foreigners remaining net sellers.”

Value turnover yesterday improved from Tuesday’s P5.83 billion with 674.7 million issues switching hands. Net foreign selling also declined to P724.48 million from P915.46 million the day prior.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the improvement in the local market may also be attributed to the performance of US markets on Tuesday: the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices fell 2.94%, 2.81% and 2.99%, respectively.

He said investors reacted to the drop in 10-year US Treasury yields to a historic low of below 1% and the emergency rate cut by the US Federal Reserve by 0.5%.

Markets in Asia-Pacific ended mixed on Wednesday. Japan’s Nikkei 225 index climbed 0.08%, China’s Shanghai Shenzhen CSI 300 index gained 0.58% and South Korea’s Kospi index jumped 2.24%. But Japan’s Topix index declined 0.17%, Hong Kong’s Hang Seng index dropped 0.24% and Australia’s S&P/ASX 200 index lost 1.71%.

Most Southeast Asian stock markets slipped on Wednesday, tracking Wall Street as a surprise rate cut by the US Federal Reserve failed to allay fears over the coronavirus’s impact, while dismal China economic data dented sentiment as well.

The move was upended by “worries about the depth and duration of negative economic ripples from COVID-19 impact; doubts about efficacy of rate cuts, and lack of details on transmission/credit relief measures,” Vishnu Varathan, a senior economist at Mizuho Bank, said in a note, Reuters reported.

Back home, property rose 70.79 points or 1.91% to 3,777.97; holding firms added 66.99 points or 1.01% to 6,692.53; financials grew 11.71 points or 0.73% to 1,615.83; and industrials gained 32.46 points or 0.40% to 8,154.62.

On the other hand, mining and oil decreased 31.86 points or 0.50% to 6,327.67; and services lost 2.57 points or 0.19% to 1,342.92.

Names that fell at the market’s close stood at 123, while names that gained clocked in at 74. Those that ended unchanged were 37.

“The market was able to breach the 6,800 levels today. We may have to see if the 6,800 level holds while next support is around 6,740,” Timson Securities’ Mr. Pangan said. — Denise A. Valdez with Reuters

Peso surges as Fed cuts rates amid COVID-19 fears

THE PESO surged against the dollar on Wednesday after the surprise rate cut from the US Federal Reserve and dovish signals from the Bangko Sentral ng Pilipinas (BSP).

The local unit ended trading at P50.551 versus the dollar yesterday, strengthening by 13.9 centavos from its Tuesday close of P50.69.

The currency opened the session at P50.68 per dollar. It sank to as low as P50.73, while its intraday best was at P50.54 versus the greenback.

Dollars traded slipped to $1.187 billion on Wednesday from $1.239 billion.

A trader attributed the peso’s rebound to the Fed’s move to cut borrowing costs.

“The peso strengthened after the US Federal Reserve unexpectedly cut policy interest rates by 50 basis points in an emergency decision overnight,” the trader said in an e-mail.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion attributed the peso’s strength to recent dovish remarks from the BSP chief.

“The peso strengthened as the BSP stressed its readiness to boost market confidence and economic growth amidst the COVID-19 (coronavirus outbreak) epidemic…,” Mr. Asuncion said in a text message.

The US central bank slashed its key rates by 50 basis points (bps) in a surprise move to temper economic risks that could arise from the coronavirus outbreak.

Meanwhile, BSP Governor Benjamin E. Diokno said earlier this week another 25-bp cut is on the table this year, adding that they will assess anew the impact of the virus on the economy during the Monetary Board’s policy-setting meeting on March 19. Last week, he also said the central bank is not ruling out cuts worth 50 to 75 bps this year.

The Monetary Board slashed benchmark rates by 25 bps on Feb. 6 as a preemptive move to cushion the country from the impact of COVID-19.

The rates on the BSP’s overnight deposit, overnight reverse repurchase, and overnight lending facilities currently stand at 3.25%, 3.75% and 4.25%, respectively.

In 2019, the central bank cut key policy rates by a total of 75 bps. This means the BSP has already unwound 100 bps from the 175 bps worth of rate hikes done in 2018 to quell multi-year high inflation.

For today, the trader expects the peso to end at around P50.50 to P50.70 against the greenback, while Mr. Asuncion sees the peso playing around the P50.40-P50.70 levels. — Luz Wendy T. Noble

Manila to cut workers to Kuwait on restrictions

THE Philippine Labor department will cut the deployment of workers to Kuwait after the Middle Eastern state started requiring medical clearance from recruits amid a novel coronavirus outbreak that has killed more than 3,000 people, mostly in China.

Labor Secretary Silvestre H. Bello III said at a briefing on Wednesday the Kuwaiti policy was “a practical order” but was an added burden and Filipino workers might as well go elsewhere.

“They should not require our overseas Filipino workers to get medical certificates that are paid,” Mr. Bello said.

“That’s why they should settle for medical certificates issued by our Department of Health (DoH) or medical centers certified by DoH,” he added.

Mr. Bello said “scaling down” the deployment means the processing of overseas employment certificates would take longer.

This will cover skilled, semi-skilled, professional workers and housemaids.

The deployment of Filipino workers to Kuwait will increase again once the medical clearance requirement is lifted, Mr. Bello said.

Philippine Foreign Affairs Undersecretary Brigido J. Dulay, Jr. called the Kuwaiti restriction “very unfortunate and perplexing” for Filipino workers.

He noted that the Philippines had reported only three confirmed cases of the deadly coronavirus strain — one died and two have been discharged after recovering — compared with Kuwait’s 56 cases.

Kuwait will require travelers from the Philippines and nine other countries to undergo medical examinations before entering to prevent the spread of the coronavirus disease 2019 (COVID-19).

The certificates must be approved by the Kuwaiti Embassy in these countries, according to a March 3 circular issued by the state’s Directorate General of Civil Aviation.

Also covered by the circular are India, Bangladesh, Egypt, Syria, Azerbaijan, Turkey, Sri Lanka, Georgia, and Lebanon.

Passengers without a certificate will be barred from entering Kuwait and “deported on the same carrier airline, without any financial costs incurred by the State of Kuwait.” Airlines found violating the circular will also be fined.

Kuwaiti citizens are exempted from the examination.

Mr. Bello last month lifted the deployment ban on Kuwait after the two governments reached an agreement on better working conditions for Filipino workers.

The Labor chief said the ban would only be lifted once Filipino housemaid Jeanelyn Villavande gets justice.

Among the conditions met by the Kuwaiti government was the filing of charges against Jeanelyn Villavende’s employers.

Mr. Bello first imposed a total deployment ban after the Philippine government received a “dishonest” postmortem report of Ms. Villavende’s autopsy from Kuwait authorities.

The National Bureau of Investigation earlier said an autopsy showed the Filipina had been battered and sexually abused, something that was left out in Kuwait’s initial report.

Mr. Bello later lifted the deployment ban partially, only prohibiting housemaids from working in Kuwait.

In 2018, the Philippine government barred Filipinos from working in Kuwait after news of the murder of domestic helper Joanna Demafelis broke. The ban lasted four months. — Charmaine A. Tadalan

Duterte repeals fiat shunning aid from drug-critic nations

PRESIDENT Rodrigo R. Duterte has revoked an order he issued last year rejecting loans and grants from 41 countries that backed a probe of his deadly war on drugs, his spokesman said on Wednesday.

“Please be informed that such directive is hereby lifted, effective immediately,” according to a copy of a Feb. 27 memo issued by Executive Secretary Salvador S. Medialdea to state agencies but released only yesterday.

Presidential spokesman Salvador S. Panelo did not immediately reply to a mobile-phone message asking why the ban was lifted.

The United Nations Human Rights Council on July 11 ordered its human rights office to present a comprehensive report as it expressed concerns about human rights violations in the Philippines in connection with Mr. Duterte’s anti-illegal drug campaign.

The body adopted a resolution that Iceland proposed and 17 other nations voted for. Twenty-four other nations who co-sponsored the resolution did not vote.

The Iceland-sponsored resolution drew the ire of Mr. Duterte, who writhes at Western condemnation of his drive that is widely supported by Filipinos.

Philippine police have said they have killed more than 6,000 people in illegal drug raids, many of them resisting arrest. Some local nongovernmental organizations and the national Commission on Human Rights have placed the death toll at more than 27,000. — Gillian M. Cortez

Duterte urged to deport unwanted Chinese nationals

AN OPPOSITION senator urged the government of President Rodrigo R. Duterte to deport Chinese criminals with links to offshore gaming companies here and who bribed their way into the country.

“Deport these criminals,” Senator Risa N. Hontiveros-Baraquel said in a statement on Wednesday. “Filipinos’ safety comes first.”

She cited reports that $447 million (P22.68 billion) entered the country from September last year to February, half of which was traced to Chinese nationals.

“Philippine offshore gaming operators (POGO) are a big mess,” Ms. Baraquel said. “POGO brings in crimes. Let’s catch the blacklisted and those involved in money laundering and other crimes. They need to be deported immediately,” she added.

Senator Richard J. Gordon earlier claimed Chinese nationals had brought in more than $160 million in cash into the country since December, and raised the possibility of money laundering activities.

He said Philippine offshore gaming operators (POGO) were probably being used as fronts for Chinese spies.

The Immigration bureau earlier said it had revamped workers at Terminals 1 to 3 of the international airport in Manila after the “recent resurgence of unauthorized activities and irregularities” there.

The agency relieved 19 officials and employees allegedly involved in a bribery scheme that allowed the illegal entry of Chinese nationals who end up working in offshore gaming companies here.

Ms. Baraquel earlier showed a video of incoming Chinese nationals being escorted to an office at the international airport in Manila.

She also showed screenshots of Viber messages among Immigration officers discussing the bribery scheme, as well as a worksheet containing the P10,000 paid by each of the tourists.

An immigration officer earlier told a Senate committee some blacklisted foreigners had been granted entry for as much as P200,000.

Also yesterday, Justice Undersecretary Adrian F. Sugay told reporters the agency would probably wait for the results of the Senate investigation of money-laundering activities involving offshore gambling companies before pursuing cases.

“We’re just taking our cue from the results of the Senate investigation on this matter,” he said.

Mr. Sugay said that the department was working closely with the Anti-Money Laundering Council.

“If there are appropriate complaints that need to be pursued we have told them that we are ready to help them to pursue these cases,” he said.

The Immigration bureau earlier asked the Justice department and National Bureau of Investigation to probe corrupt practices at the airport, including human trafficking and escort services.

Immigration officials have denied knowledge of the illegal scheme. — NPA with Vann Marlo M. Villegas

Anti-red tape body tags LRA for slow action

THE Anti-Red Tape Authority on Wednesday flagged the Land Registration Authority (LRA) for failing to approve pending transactions with the public on time.

Jeremiah B. Belgica, the agency’s director general, told reporters that out of five “problematic agencies” tagged by President Rodrigo R. Duterte in his yearly address to Congress last year, LRA stands out.

The anti-red tape body had received reports that LRA had not streamlined transactions.

He said LRA’s charter falls under the “3-7-20” rule — simple transactions should be done in three days, complex transactions in seven days and highly technical ones in 20 days.

LRA officials should fix this or face cases for violating the anti-red tape law, Mr. Belgica said.

The agency has ordered all government bodies to approve pending applications before March 7 or face sanctions for inefficiency.

The regulator also asked all public offices to strictly enforce the processing periods prescribed by their charters.

Agencies mentioned by Mr. Duterte — the Social Security System, Bureau of Internal Revenue, Land Transportation Office, Pag-IBIG Fund and LRA — will be prioritized for audit, according to ARTA’s chief.

Mr. Belgica said they would also prioritize the Land Transportation Franchising and Regulatory Board and Food and Drug Administration. — Gillian M. Cortez

Pasig turns over passenger boats to MMDA; other cities pledge support

THE PASIG City government has formally turned over its two ferry boats to the Metropolitan Manila Development Authority (MMDA), which will be added to the existing fleet for the Pasig River Ferry Service (PRFS). “Improved facilities, more boats, information dissemination, and consistency will make the PRFS ridership increase and even double in number,” Mayor Victor “Vico” N. Sotto said during Wednesday’s signing of the memorandum of agreement. The donated boats, M/B Mutya ng Pasig 1 and 2, are 57-seater vessels. “The two boats donated to the PRFS by the City of Pasig is surely a big help to continually give the best service to our passengers,” MMDA Chairman Danilo D. Lim said. Since the PRFS relaunch in December last year, there has been an average of 700 to 1,000 passengers daily, according to MMDA, with limited boats in operation and not all 14 ferry stops in operation. Undersecretary Frisco San Juan, Jr., MMDA deputy chairman and PRFS head, said other local government in Metro Manila have pledged support to the service. The Manila City government has promised to donate two boats while San Juan City plans to offer free shuttle service to the station during rush hour to encourage commuters to take the ferry service. Mr. San Juan said the Office of the President will also be giving two boats. In January, Senator Juan Edgardo M. Angara said a P176 million budget has been allocated for the purchase of four boats for PRFS. The MMDA earlier announced that the ferry ride will remain free until the end of March.

Oslob resort owners volunteer to demolish ‘illegal’ structures

RESORT OWNERS and residents in Oslob, a southern Cebu town popular for whale shark watching, have committed to voluntarily demolish parts of their structures that have encroached the easement zone. In exchange for their pledge, the 20-meter easement zone has been cut back to three meters. Last Monday, Governor Gwendolyn F. Garcia, along with regional directors from the Department of Environment and Natural Resources (DENR), Department of Tourism (DoT), and representatives from the Provincial Environment and Natural Resources Office (PENRO), met with residents of four coastal villages to discuss their compliance to the easement zone. Under the 20-meter standard, 420 structures, both residential and commercial, have been found in violation of the zoning law. Of these, 157 are commercial establishments and the rest residential.

URBAN
Article 51 of the Water Code of the Philippines prohibits the building of infrastructure within specified easement zones. “The banks of rivers and streams and the shores of the seas and lakes throughout their entire length and within a zone of three meters in urban areas, 20 meters in agricultural areas and 40 meters in forest areas, along their margins, are subject to the easement of public use in the interest of recreation, navigation, floatage, fishing and salvage,” the provision states. “No person shall be allowed to stay in this zone longer than what is necessary for recreation, navigation, floatage, fishing or salvage or to build structures of any kind.” It was agreed during the meeting that the coastal villages meet the requirements to be classified as urban barangays. For a barangay to attain an urban classification, it must have a population of 5,000 residents, host a commercial establishment with 100 employees or five commercial establishments with at least ten employees each. The four barangays are the first of 15 in Oslob to have completed the inspection and inventory of establishments. — The Freeman

MinDA partners with Pilmico for sorghum program

THE MINDANAO Development Authority (MinDA) has tapped Pilmico Foods Corp. to help with the marketing strategy for the Sorghum Development Program that aims to develop about 100,000 hectares for the crop. Pilmico Assistant Vice President Glen L. Banogon, in a statement released by MinDA, said the country’s sorghum requirements have been mostly imported and producing it locally will benefit the livestock and poultry industries. “The three main considerations for sorghum are its nutritional value, availability and cost. There’s a big potential here, with DA (Department of Agriculture) and MinDA’s assistance and facilitation in the cultivation process and Pilmico’s help in the market aspect,” said Mr. Banogon. Pilmico, an Aboitiz company, is engaged in feeds for aquaculture, livestock, and poultry. He explained that sorghum seeds can be used as feeds for fish, duck, chicken, and hogs while the stalks can be used as silage for goats and cattle. “If we are successful with this, we will be able to bring down the cost of feeds allowing us to compete with imported goods, therefore increasing income and alleviating poverty with focus and consistency,” MinDA Chair Emmanuel F. Piñol said.

8 PROVINCES
The sorghum program will focus on developing marginal lands and ancestral domains to hit the target area by 2021. Eight provinces have been identified as initial participants and will receive seeds from the 25-ton stock donated by an American company. The provinces are: Davao del Norte, Cotabato, Sarangani, Zamboanga Sibugay, Lanao del Sur, Bukidnon, Agusan del Sur, and Basilan. “We will orient you (beneficiaries) on what you could do with the crop, how the LGUs (local government units) could assist in the financial aspect, and MinDA on its part, will be reaching out to our funding agency partners and also link you up with a ready market,” Mr. Piñol told the first batch of beneficiaries during an orientation session in Davao City last Monday. MinDA said the projected income from the program is P15 billion annually. — Carmelito Q. Francisco

Davao City business chamber proposes permanent agri inspection and disinfection stations

A QUARANTINE CHECKPOINT set up by the Davao Occidental province following the African Swine Fever outbreaks in Davao del Sur and Davao City starting late January. — DAVAO OCCIDENTAL PIO

THE DAVAO City Chamber of Commerce and Industry, Inc. (DCCCII) is proposing the establishment of permanent inspection and disinfection stations in the Davao Region to mitigate and address concerns such as the recent outbreak of African Swine Fever (ASF) and related threats to livestock, poultry and crops. The group, in its second board of trustees meeting last February 20, passed a resolution to discuss the proposal with the Department of Agriculture (DA). DCCCII Vice President for Industry Cherrylin B. Casuga, in a statement on Wednesday, said such permanent facilities will help ensure biosecurity for both crops and livestock. “This is a good way of containing the possible spread of such virus. The earlier we contain these outbreaks, the better for our agribusiness companies,” she said. DCCCII President John Carlo B. Tria said they will be initiating the discussions and work closely with the DA on implementing the proposal. “We will be sending a copy of this resolution to Secretary William Dar and work with the government to help implement this,” he said.

Nationwide round-up

DTI eyes mentoring program for cooperatives


THE DEPARTMENT of Trade and Industry (DTI) is looking into the adoption of its mentoring program for cooperatives as it absorbs the agency overseeing the sector’s promotion and growth. DTI, in a statement on Wednesday, said it supports Senator Juan Miguel F. Zubiri’s suggestion for the department to create programs wherein large cooperatives will coach newly-formed and smaller cooperatives. The Cooperative Development Authority (CDA) became an attached agency of the DTI in February based on Executive Order 67, which provides for the integration of programs and activities for cooperatives. The integration also follows Republic Act No. (RA) 11364, the Cooperative Development Authority Charter of 2019. DTI’s Kapatid Mentor Me Project connects large corporations to micro and small enterprises for mentoring on business operations. The department also has the Shared Service Facility program, wherein micro entrepreneurs can access facilities built in their community. “Cooperatives are one of our many partners in supporting the development of Micro, Small, and Medium Enterprises. That’s why we are thankful for the proposal that the CDA should bring our mentoring program to the grassroots level through cooperatives,” DTI Secretary Ramon M. Lopez said. — Jenina P. Ibañez

Senators lambaste police, agencies over unsolved BuCor murders

SENATORS ON Wednesday slammed the Philippine National Police (PNP), among other government agencies, for failure to solve the killings of 16 Bureau of Corrections (BuCor) officers in the last nine years. A hearing, led by the Senate committee on justice and human rights, found that none of the 16 cases since 2011 have been solved due to the inaction of the PNP, BuCor and the Department of Justice. “There’s lack of urgency, there’s complacency, lack of professionalism, lack of caring for people who have been murdered,” Senator Richard J. Gordon said in a briefing. The committee held the probe following the death of former BuCor legal officer Frederick Santos on February 19. Mr. Santos was shot by riding-in-tandem criminals. The National Bureau of Investigation has yet to access the dashboard camera from Mr. Santos’ vehicle. Mr. Santos was among those who testified in the Senate investigation on the scheme allowing convicts of heinous crimes to avail the good conduct time allowance. The committee, which will hold another hearing, has asked the concerned government agencies for a more complete report on their investigations. —Charmaine A. Tadalan

Nation at a Glance — (03/05/20)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Nation at a Glance — (03/05/20)

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