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Ayala Malls gives free bikes for frontliners

AYALA MALLS has teamed up with Life Cycles PH to provide free bicycles for frontliners.

UP Town Center, through Life Cycles PH, has donated 21 free bicycles so far for health care workers who require transportation to and from home. To avail of the service, they can present a company ID for verification and monitoring at the Life Cycle Station along Phase 1, near Mercury Drug in UP Town Center.

Ayala Malls has also installed bicycle racks in all its malls.

How PSEi member stocks performed — July 6, 2020

Here’s a quick glance at how PSEi stocks fared on Monday, July 6, 2020.


Internet costs in the Philippines decline over time

Internet costs in the Philippines decline over time

Peso closes at three-year high ahead of inflation data

THE PESO rallied to log its best close against the greenback since 2016 on expectations of continued benign inflation, even as prices of some commodities went up.

The local unit closed at P49.381 versus the dollar on Monday, gaining 16.9 centavos from its P49.55 close on Friday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P49.52 per dollar. Its weakest showing was at P49.55 while its intraday best was at P49.36 against the greenback.

Dollars traded decreased to $609.77 million on Monday from the $758.3 million on Friday.

Analysts attributed the peso’s appreciation to manageable inflation despite expectations of a slight quickening in June.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso finished at its strongest “in more than 3.5 years or since Nov. 16, 2016 when it closed at P49.35” as investors await the release of June inflation data by the Philippine Statistics Authority this Tuesday, July 7.

A BusinessWorld poll of 16 economists yielded a median estimate of 2.2% for headline inflation in June, slower than the 2.7% a year ago but a tad faster than the 2.1% pace in May. Analysts said upward pressures mainly come from rising prices of oil and rice.

If realized, the median estimate would be near the lower end of the 1.9% to 2.7% estimate from the Bangko Sentral ng Pilipinas and well within the 2-4% target inflation for 2020.

“The peso continued to strengthen amid expectations of an uptick in the Philippine inflation report this Tuesday,” a trader said in an e-mail.

The trader said the actual inflation data on Tuesday will also determine market sentiment this Tuesday.

For today, both Mr. Ricafort and the trader see the peso moving within P49.25 to P49.45 per dollar. — LWTN

Shares decline as PHL daily cases hit record high

By Denise A. Valdez, Reporter

LOCAL SHARES pulled back on Monday as the rising number of coronavirus disease 2019 (COVID-19) cases in the Philippines weighed on investor sentiment.

The 30-member Philippine Stock Exchange index (PSEi) shed 44.25 points or 0.69% to close at 6,328.41 on Monday. The broader all shares index also slipped 15.76 points or 0.42% to end at 3,702.17.

“Local shares closed lower… as lack of leads made investors focus on other pertinent issues such as the worldwide surge in COVID-19 cases and the upcoming inflation report,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

He noted investors were still waiting for the resumption of Wall Street trading after a three-day holiday weekend and thus took cues from other news.

But unlike the local bourse, other Asian markets were faring in green territory on Monday. Japan’s Nikkei 225 and Topix indices, China’s Shanghai Shenzhen CSI 300 index, Hong Kong’s Hang Seng index and South Korea’s Kospi index were recording gains by the time the PSE closed.

“Asian stock markets rallied led by Chinese shares on encouraging comments from state media on how a healthy bull market will be extremely important to its economy in the future,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

“The PSEi did the opposite and ended slightly lower as investors are worried about a surge in new coronavirus cases and reports that the virus has mutated and is more contagious,” he added.

The Department of Health reported a record daily high of 2,434 new COVID-19 cases in the Philippines on Sunday, raising the country’s total to 44,254. There were also global news reports that COVID-19 may be airborne, citing more than 200 experts from different countries.

These issues, along with profit taking, brought the PSEi down after four straight days of gains. “The market corrected on profit taking…after we contracted the highest number of infections (on Sunday),” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.

Four of six sectoral indices closed with losses on Monday: financials dropped 27.85 points or 2.19% to 1,239.71; property fell 28.93 points or 0.91% to 3,140.75; holding firms slid 33.46 points or 0.51% to 6,532.53; and industrials decreased 20.74 points or 0.26% to 7,929.99.

On the other hand, mining and oil gained 152.07 points or 2.86% to 5,458.91, and services grew 18.99 points or 1.32% to 1,451.07.

Some 1.07 billion issues valued at P6.15 billion switched hands on Monday, down from 2.66 billion issues worth P7.39 billion in the previous session. Advancers and decliners totalled 103 each, while 43 names ended unchanged.

Offshore investors returned to selling on Monday with net outflows totalling P745.45 million, a reversal of Friday’s net buying of P834.22 million.

Duterte faces 4 suits aiming to void expanded anti-terror law

By Vann Marlo M. Villegas, Reporter

LAWYERS’ groups and opposition lawmakers asked the Supreme Court on Monday to stop the government of President Rodrigo R. Duterte from enforcing a law expanding anti-terror crimes, saying the measure arms the state to stifle dissent and violate human rights.

In separate lawsuits, the plaintiffs also asked the high court to void clauses of the law for being illegal.

Lawyers led by Howard M. Calleja submitted a printed copy of the petition they submitted electronically at the weekend. Albay Rep. Edcel C. Lagman filed the second pleading while law professors from Far Eastern University (FEU) led by Dean Melencio S. Sta. Maria filed the third.

A bloc of opposition congressmen also filed a separate lawsuit.

The FEU professors argued the Anti-Terrorism law’s definition of the crime is vague and “overly broad,” covering “traditionally recognized and protected forms of expression against government shortcomings and excesses.”

“In effect, the general manner by which the provision is couched puts constitutionally protected speeches and expressions under a criminal class, or at least, to a suspect class, to the detriment of these freedoms,” they said in a statement.

They also said the law allows warrantless arrests based on suspicion, which violates a person’s basic rights.

“With the passage of the Anti-Terrorism Act of 2020, the imminent and real danger of silencing the public and sending a chilling effect to detractors of the government has become real,” according to the lawsuit.

The law 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 creates an anti-terror Council made up of Cabinet officials who can perform acts reserved for courts, such as ordering the arrest of suspected terrorists. It also allows the state to keep a suspect in jail without an arrest warrant for 14 days from three days now.

The law, which repeals the Human Security Act of 2007, also allows the Anti-Money Laundering Council to examine bank deposits that may be related to terrorism and freeze these accounts without a court order.

Meanwhile, Mr. Lagman said the country does not need another anti-terror law and the government should instead enforce the old law.

“In a democratic society, security must never be attained or maintained at the expense of human rights and civil liberties,” the congressman said. “Derogation of freedom is not the price for security and peace, but the precursor of people’s unrest and righteous resistance.”

The congressional bloc also argued the law violates freedom of speech and the right to privacy because it allows the state to monitor suspects and record communications with a court order.

The lawmakers said the law is replete with unconstitutional provisions and should be nullified as a whole.

Presidential Spokesman Harry L. Roque said the law that Mr. Duterte signed on Friday safeguards people’s rights.

“You don’t have to worry if you’re not a terrorist,” he told an online news briefing in Filipino on Monday. “There are enough safeguards in the law.”

A terrorist is someone who tries to harm or kill a person, destroys or damages public or private property, interferes with critical infrastructure, develops, owns, or transports weapons and explosives, and causes fires, floods and explosions, according to the law.

It also provides that protests, advocacy and similar exercises of civil and political rights that don’t seek to harm people are not terror acts. — with Gillian M. Cortez

MRT-3 closed for 5 days amid outbreak

METRO RAIL Transit System Line 3 (MRT-3) operations will be shut down for five days amid a coronavirus outbreak among staff members, the Transportation department said on Monday.

“The temporary shutdown will be undertaken to give way to the swab testing of all MRT-3 personnel, including those of its maintenance provider and subcontractors, to prevent further spread of the disease, and, most importantly, to protect the health and safety of both its personnel and commuters,” the agency said in a statement.

The rail system will be closed from July 7 to July 11, and will resume limited operations when enough workers test negative for the COVID-19 virus, it said.

The shutdown period may be shortened or extended depending on the pace and results of the tests.

Six station workers — four ticket sellers, a nurse and a train driver — have been infected with the virus as of July 5, the Transportation department said. It added that 166 depot workers have tested positive for the virus.

Meanwhile, the Department of Health (DoH) reported 2,099 new coronavirus infections on Monday, bringing the total to 46,333.

The death toll rose to 1,303 after six more patients died, while recoveries increased by 243 to 12,185, it said in a bulletin. There are 32,845 active cases.

Health Undersecretary Maria Rosario S. Vergeire traced the increase in cases to the verification process in laboratories.

She said they have identified emerging virus hotspots including the cities of Marikina, Muntinlupa, Makati and Quezon, which are all in Metro Manila.

Infections in the Visayas region have been decreasing, but a “clustering of cases” has been observed in 64 towns in Cebu province and 314 towns in Metro Manila, Ms. Vergeire said. — Arjay L. Balinbin and Vann Marlo M. Villegas

18 million students opt for virtual classes

MORE THAN 18 million students are expected to start virtual classes next month as the Department of Education adopts blended and distance learning, the presidential palace said on Monday.

Of 18.2 million enrollees, 17.4 million were public school students, Presidential Spokesman Harry L. Roque said at an online news briefing.

Enrollment will end on July 15.

The new academic year starts on Aug. 24, but students must stay home in the absence of a vaccine for the novel coronavirus.

The Education department will enforce blended learning strategies so students can learn without going to school. Teachers will provide printed learning modules that can be delivered to students’ homes.

Students may also choose to answer electronic documents online.

Education officials earlier said less than half of the country’s 800,000 public school teachers had been trained for distance learning amid a coronavirus pandemic, leading senators to question the school system’s readiness to start online classes in August.

Some senators also criticized the agency for failing to map out areas where different learning methods would be used.

Education officials said they were still gathering data for the mapping through a poll that students and their parents answer during enrollment.

Education Secretary Leonor Briones earlier said face-to-face classes won’t start until a vaccine for the novel coronavirus that has sickened more than 44,000 and killed about 1,300 people in the Philippines is found.

She took her cue from President Rodrigo R. Duterte, who has said he wouldn’t allow classes to open without a vaccine given the risk of an outbreak in schools.

Mr. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain the pandemic. People should stay home except to buy food and other basic goods, he said.

He extended the quarantine for the island twice and thrice for the capital region. The lockdown in Metro Manila has since been eased, but mass gatherings across the nation remained banned.

The Philippines has four levels of lockdowns — enhanced, modified enhanced, general and modified general community quarantine.

Mr. Roque said parents should still send their children to school despite the pandemic. — Gillian M. Cortez

ABS-CBN denies allegations of bias

A SHUTTERED broadcast network critical of President Rodrigo R. Duterte on Monday said it has mechanisms for handling mistakes amid allegations of bias.

ABS-CBN Corp. has an in-house ombudsman who “receives, investigates and makes recommendations on complaints against news personnel,” Ma. Regina Reyes, who heads the media giant’s Integrated News and Current Affairs, told congressmen hearing its application for a franchise extension on Monday.

She said the mechanism ensures that its journalists adhere to their own code of ethics and observe the highest professional and ethical standards.

“We uphold this accountability and responsibility as vigorously as we uphold press freedom, freedom of expression and free speech,” Ms. Reyes told the virtual hearing.

She said about 69 million Filipinos have been deprived of the information that the broadcaster had been providing before the government ordered its closure after its franchise expired.

The National Telecommunications Commission shut down ABS-CBN’s TV and radio services on May 5. It also closed the network’s digital TV transmission through ABS-CBN TV Plus on June 30. — Patricia S. Gajitos

Regional Updates (07/06/20)

Mindanao businesses welcome DoTr discount order on food cargo but seek long-term solution to logistics issues

BUSINESSES IN Mindanao welcomed the recent government order for shipping companies to offer a discount of at least 40% on food cargo, but said more long-term policies are needed to help producers bring their goods to the local market. “That’s only because we have a public health emergency. That’s good for the moment but it’s still a palliative measure by all account,” Antonio S. Peralta, European Chamber of Commerce of the Philippines (ECCP)-Southern Mindanao chairman said via online messaging. A Department of Transportation directive issued on June 24 orders shipping firms to offer the discount as well as allocate 12% of cargo capacity on agricultural and food products to “help ensure the viability of food production and delivery thereof.” Another order on the issued the same day mandated the establishment of a shippers’ protection office to address complaints on the industry’s rates, charges and practices. “That would be a good move if the measures stay in place permanently and not as a short term measure,” Mr. Peralta said. “Still I think that the best way to get competitive shipping rates would be to streamline cargo shipments by getting scheduled shipments from consolidators for quicker turn around deliveries. And let the market determine cargo rates through more competition,” he added.

CONFERENCE
The ECCP-Davao, in partnership with freight forwarding firm All Transport Network, Inc., will hold a webinar on Business Conference on Logistics on July 24, with participants from sea and air cargo companies, importers and exporters, and representatives from ports and Customs bureau. Mr. Peralta noted that the amendments to the Cabotage Law in 2016 brought down shipping costs at a “very little” level. The upcoming webinar is the second in the series on logistics after the Visayas-Mindanao conference held in January wherein bottlenecks, demographics, market characteristics, and opportunities were discussed. “The preliminary results indicated that there is a need to lower the shipping costs and undertake a more systematic approach in shipping commodities from Mindanao to Cebu and Manila,” he said. In the online conference, the industry “aims to finally resolve the longstanding issue of high shipping rates. This has been the case since the republic was born. This obviously can’t go on. We need to find a solution for this constraint,” Mr. Peralta said. — Maya M. Padillo

Cashless shopping in Divisoria ready soon with PayMaya

SHOPPING IN Divisoria, an old commercial center in Manila popular for its diverse goods and bargain prices, can soon be done with cashless transactions through the PayMaya application. The digital payment firm has been tapped by the Manila local government to provide contactless payment facilities to shop owners in Divisoria as well as stalls around the city hall. “Manila City is one of the LGUs (local government units) that are leading the way in digitalization. Citizens can receive their financial assistance direct to their own PayMaya accounts linked to their Manila City ID cards, and now vendors can easily and safely accept cashless payments via PayMaya. We are proud to be a partner in the city’s digitalization efforts,” said PayMaya Founder and Chief Executive Officer Orlando B. Vea in a statement.

Nationwide round-up

Gov’t says country can’t afford another total lockdown

THE PRESIDENTIAL Palace on Monday said the country cannot afford another total lockdown despite the highest single-day record of coronavirus cases reported on Sunday at over 2,000. Palace Spokesperson Harry L. Roque, in a briefing, said the 2,493 new positive cases are mostly asymptomatic or mild. He added that less than 1% of the country’s over 44,000 patients are severe or critical. Mr. Roque said in Filipino, “94.3% are mild cases, 0.5% are severe and 0.1% only are critical. 5.1%, on the other hand, are asymptomatic.” Researchers have pointed out that the surge in cases comes after the easing of restrictions on business operations after more than two months of strict lockdown. Mr. Roque, however, said policies need to be balanced between public health safety and economy. — Gillian M. Cortez

Over 60,000 stranded people back to hometowns

A TOTAL of 62,762 people who were stranded in Metro Manila due to the lockdown have gone back to their hometowns as of July 2, Presidential Spokesperson Harry L. Roque reported on Monday. Mr. Roque said the government’s program to assist their return included rapid testing for the coronavirus disease 2019 (COVID-19) upon the request of local governments as part of managing potential local transmissions of the deadly virus. “Bukod pa po sa rapid testing, sila po ay isa-subject to PCR kung mayroon po sa pagdating sa probinsya o ‘di naman po ay doon sa 14-day quarantine (Besides rapid testing, they are subject to PCR testing if it is available in the province they go to or to where they do the 14-day quarantine),” he said. In a separate briefing, Presidential Management Staff Assistant Secretary Joseph B. Encabo warned people against unauthorized trips back to their provinces, which he said compromises efforts to contain COVID-19 as health protocols are ignored. “Naniniwala po ako na ang mga kolorum activities na ‘yan ang isa sa mga main rason kung bakit tumataas po ang COVID-19 cases sa isang lugar (I believe these unathorized activities are one of the main reasons why COVID-19 cases are increasing in certain areas),” he said. — Gillian M. Cortez

Over 80 schools interested in ‘study now, pay later’ scheme

STATE-RUN Land Bank of the Philippines (LANDBANK) said 83 schools have expressed their interest to participate in its “study now, pay later” lending program.

In a statement Monday, Finance Secretary and Bank Chairman Carlos G. Dominguez III said the LANDBANK board has approved P260 million worth of applications as of July 1 under the bank’s P3-billion Access to Academic Development to Empower the Masses towards Endless Opportunities.

Of the 83 educational institutions, LANDBANK President and CEO Cecilia C. Borromeo said in the same statement that six schools have already submitted partial requirements to avail of the program while one loan application is pending and will be up for approval by the fourth week of July.

“We continue to pursue opportunities to offer these program to as many eligible schools as possible through various means available,” Ms. Borromeo was quoted as saying in her report to Mr. Dominguez.

She said LANDBANK have been conducting several meetings with 15 other schools to help them assess their qualifications for the program, while 61 schools “have likewise expressed interest” to avail of the credit facility.

The bank launched its P3-billion lending program in May for private high schools, private technical-vocational education training institutions, colleges and universities to help their students study on credit.

The facility refinances or discounts promissory notes issued by the students’ parents.

The loans carry an interest rate of three percent per annum and are payable “based on the maturity of the sub-promissory notes but not to exceed three years.”

Schools can borrow up to 70% of the value of the promissory notes per semester and subject, subject to a cap based on the institution’s borrowing capacity.

The program is available until June 30, 2021. — Beatrice M. Laforga