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Provinces given over P6-B grant to help with COVID-19 expenses

THE Department of Budget and Management (DBM) released P6.197 billion worth of financial aid to all 81 provinces to shore up their funding in the coronavirus disease 2019 (COVID-19) containment effort, with provinces in Regions IV-A and III receiving the largest amounts overall.

Local Budget Circular No. 126 dated April 13 sets guidelines on the release of P6.197-billion Bayanihan Grant to Provinces (BGP), a one-time financial package equivalent to half a month’s internal revenue allotment (IRA) for 2020.

IRAs are the share of local governments of national-government revenue.

The DBM said the BGP can only be used during the six-month State of Calamity, which was declared on March 16. Meanwhile, all unutilized funds after the state of calamity is lifted will have to be remitted back to the Treasury, it added.

The largest allocation was P734.508 million for provinces in Region IV-A or the CALABARZON region, so called because it comprises the provinces of Cavite, Laguna, Batangas and Quezon. This was followed by P653.695 million for the provinces of Region III or Central Luzon, P469.893 million for those of Region VI or Western Visayas and P421.961 million for those of Region V or the Bicol Region.

The other grants were P379.503 million for the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM); P378.752 million for Region VIII or the Eastern Visayas; P375.914 million for Region VII or the Central Visayas; P369.293 million for Region II or the Cagayan Valley; P337.487 million for Region I or the Ilocos Region; P332.292 million for Region IV-B or MIMAROPA, so called because it comprises the provinces of Mindoro, Masbate, Romblon and Palawan; P330.651 million for Region X or Northern Mindanao; P324.734 million for Region XII or SOCCSKARGEN, so called because its components are South Cotabato, Cotabato Province, Sultan Kudarat, Sarangani and General Santos City; P309.096 million for Region XI or the Davao Region, P283.049 million for Region XII or the Caraga region of northeastern

Mindanao; P260.697 million for the Cordillera Administrative Region; and P235.756 million for Region IX of the Zamboanga Peninsula.

“The BGP shall be released to all provinces to be used as augmentation to the funding requirements for the operation of provincial, district, and other local hospitals operated by the provincial government, and maintenance of duly established provincial checkpoints related to COVID-19, in support to the on-going efforts of the Government to respond to the crisis brought about by the COVID-19 pandemic,” according to the circular, published late Tuesday.

DBM said the funds can only be used to pay for personal protective equipment; medical equipment, reagents and testing kits; medicines and vitamins; other hospital equipment and supplies; disinfectants, sprayers and other disinfecting supplies and equipment; food, transportation and accommodation expenses for health workers and other personnel of public hospitals; construction, repair or rental of additional establishments to accommodate COVID-19 patients or those for monitoring; training of personnel and other COVID-19-related expenses of the local government and the hospitals it operates.

The funds can also be used to pay for the expenses associated with maintaining checkpoints, including food, medicine, protective gear and disinfecting supplies.

The DBM ruled out the use of the funds for cash assistance programs; personal services expenditures such as salaries; administrative and traveling expenses; registration fees for training, seminars and conferences; furniture, fixtures, equipment or appliances for administrative offices, and motor vehicles, including ambulances.

Earlier, the DBM released a P30.8-billion Bayanihan Grant for cities and municipalities to boost their capacity in responding to the public health crisis. The grant was equivalent to a month’s worth of 2020 IRA and can only be used for COVID-19-related expenses. — Beatrice M. Laforga

Rural power consumers’ bills waived for March, April

POWER consumers in the countryside with usage of under 50 kilowatt-hours (kWh) will not need to pay for electricity in March and April as a form of relief granted by the government in response to the disruptions caused by coronavirus disease 2019 (COVID-19).

In a briefing by the Inter-Agency Task Force on Emerging Infectious Diseases, Cabinet Secretary Karlo B. Nograles said so-called “lifeline consumers” will have their bills waived by rural electric cooperatives.

“Sa mga kababayan nating komu-konsumo ng mas mababa sa 50 kilowatts per hour o ‘yung mga tinatawag na “lifeline consumers” ng mga electric cooperatives dito sa Luzon, maging sa Visayas at Mindanao… libre na po ang inyong konsumo sa loob ng March to April billing period (Consumers of less than 50 kWh, or those so-called lifeline consumers of electric cooperatives… your power for the March to April billing period is free.) Mr. Nograles said.

On other bills these consumers have also been granted a one-month grace period, he added.

Recently, the Philippine Rural Electric Cooperatives Association, Inc. launched the Pantawid Liwanag Project, which aims to subsidize electricity costs for poor consumers affected by the enhanced community quarantine (ECQ) imposed following the COVID-19 outbreak.

“Target na tulungan ng Pantawid Liwanag ang tatlong milyong mahihirap na consumer ng mga electric cooperative (The Pantawid Liwanag Project aims to help three million poor customers of electric cooperatives),” Mr. Nograles added.

“To show solidarity in dealing with this crisis, the electric cooperatives are exploring all means to continuously deliver electricity services to their respective consumers, as well as mitigate the cost of electric consumption by accessing funds for the design and implementation of Pantawid Liwanag,” National Electrification Administration (NEA) Administrator Edgardo R. Masongsong said in a statement Saturday.

The Department of Energy and the Energy Regulatory Commission ordered the energy industry to extend payment deadlines by up to 30 days from April 14, which was initially the date of the end of the Luzon ECQ.

The ECQ has since been extended to April 30. — Adam J. Ang

Rice distribution issues seen causing supply crunch in quarantined areas

A SENIOR legislator warned of an impending crisis in rice distribution for communities cut off by the enhanced community quarantine (ECQ) and urged the Department of Agriculture (DA) and the Department of Trade and Industry (DTI) to get ahead of the problem.

“Historically, we’ve had challenges with rice price and supply during economic and social crises, but those challenges were rarely about having enough rice for everyone in the aggregate. The issues have always been about getting the national supply of rice into the communities that need the supply. Those challenges are made starker by delays in ECQ (enhanced community quarantine) checkpoints,” Albay Representative and ways and means committee chairman Jose Maria Clemente S. Salceda said in a statement Wednesday.

On the global supply front, Mr. Salceda noted that rice prices rose as much as 12% week-on-week during the first week of April as purchasers stocked up in anticipation of food supply disruptions during the coronavirus disease 2019 (COVID-19) outbreak.

“As of 01 March 2020, the total rice inventory (in the Philippines) stood at 2,178.64 thousand metric tons, 1.9% lower year-on-year, and 8.3% lower month-on-month. Harvest season doesn’t come until May so we have to be prepared,” he added.

Mr. Salceda also said checkpoints continue to disrupt the food supply.

“Just today, the National Food Authority (NFA) reported that some drivers of 14 trucks carrying 14,000 sacks of rice from Regions 1, 2 and 3 failed to meet at their Malolos warehouse to deliver the rice to… Valenzuela and Cavite. Only eight trucks were able to reach the Malolos warehouse, while six trucks were allegedly stopped at quarantine checkpoints. Government to government na yan, ah (and that’s for a government-to-government transaction),” he said, suggesting that private cargoes might be experiencing more difficulties.

Mr. Salceda recommended the unhampered flow of rice and other essential commodities, as well as the necessary inputs to produce and process these commodities; mobile stores selling food at fair prices to dampen “artificially inflated prices” in some areas; matching rice producers and markets to keep middleman costs at a minimum; and the establishment of an online, citizen-based monitoring system for the price of rice and other commodities.

“Wherever there are localities with anomalously higher prices compared to baseline or expected prices, the DTI and the DA must use appropriate interventions such as stricter monitoring and enforcement of retail price measures. The system will also allow consumers to compare prices in nearby areas, making local cartel practices easier to spot and prevent,” he said.

He also cited uneven enforcement of the quarantine at some checkpoints, despite the exemptions granted to food shipments.

“In some checkpoints, may mga nalilito pa (some are confused about the rules) Some checkpoints still delay inputs such as fertilizers and pesticides. We can’t produce rice without those inputs. I’m asking the DA and the DTI to make sure that we unchain the whole supply chain. That’s why a week before the DA and the DTI issued agency orders, I requested that we ensure that the checkpoints are rational and nationally supervised,” he said.

Mr. Salceda said that the droughts in Thailand and Vietnam are “aggravating the impact of the pandemic in the case of rice importing countries like the Philippines.” — Genshen L. Espedido

No counteroffers received for Mindoro offshore exploration block

THE Department of Energy (DoE) said an undisclosed bid for an exploration block southwest of Mindoro attracted no counteroffers from other parties.

Nominated Area No. 5 of the Philippine Conventional Energy Contracting Program (PCECP) is a 212,331-hectare block put up for oil exploration. It is on the Sulu Sea basin near Mindoro.

Asked for an update, Demujin F. Antiporda, a specialist in the Petroleum Resource Development Division of the DoE’s Energy Resources Development Bureau (ERDB), told BusinessWorld that “there were no counter-proposals received until the last day of submission last March 31” for the nominated area.

The deadline fell within the quarantine period declared for Luzon. Recently, the DoE said in an advisory that it postponed the opening of applications for the nominated area with the implementation of an enhanced community quarantine in Luzon starting March 15.

“The formal opening of the application will be determined based on the health protocols to be set by the DoH (Department of Health), as soon as the enhanced community quarantine has been lifted in Metro Manila, and the DoE becomes fully operational,” Mr. Antiporda said.

Meanwhile, the ERDB is considering an extension of the challenge period for Nominated Areas No. 6, 7 and 8.

“As of this moment, there is no approved extension for the challenge period of Nominated Area Nos. 6, 7, and 8. But this matter will be discussed in our next Management Committee Meeting in the Energy Resource Development Bureau,” Mr. Antiporda said.

The PCECP is a petroleum service contract awarding mechanism that allows the government to develop indigenous petroleum resources in partnership with qualified Philippine and international exploration companies.

Under the PCECP, service contracts are awarded via a competitive selection process or via nomination. — Adam J. Ang

Unlicensed firms found selling tech investments

Securities and Exchange Commission (SEC) logo

THE Securities and Exchange Commission (SEC) said unlicensed firms have been found selling technology investments without authorization, and warned the public against buying such securities.

In a statement Wednesday, the regulator flagged Delta Crypt Limited, INVEXPERT and The Billion Coin (TBC) for selling investment contracts without licenses to offer or sell securities in the Philippines.

It also noted that the groups were not SEC-registered as corporations or partnerships.

Delta Crypt, which claims to be a private firm registered in England and Wales, sells standard investment plans promising yields of 104% to 6,000% after one to 90 days for a $10 to $100,000 deposit. The group is purportedly engaged in cryptocurrency trading.

INVEXPERT, which also claims to be based in England, offers returns ranging from 104% to 3,000% after one to 30 days for a $500 to $100,000 deposit. INVEXPERT’s claimed investment portfolio includes start-up firms in Artificial Intelligence, the Internet of Things and financial technology.

TBC promotes its own cryptocurrency, TBCoins, whose value fluctuates by the number of users, holders and investors.

The value of the so-called “abundance cryptocurrency” is claimed to never drop, continuously increasing by 1% to 5% daily until it reaches a value of 1 billion euros for every TBCoin. The value of TBCoin is derived by multiplying the number of investors by one euro.

TBC also sells investment packages for P100 to P25,000, promising a full return every 25 days, along with bonuses for recruiting members.

“Those who act as salesmen, brokers, dealers or agents of fraudulent investment schemes may be held criminally liable and penalized with a maximum fine of P5 million or imprisonment of 21 years or both under the Securities Regulation Code,” the SEC said in its advisory.

It added that scams perpetrated during the coronavirus disease 2019 (COVID-19) pandemic are subject to an additional two months’ imprisonment, a maximum fine of P1 million or both under the Republic Act No. 11469 or Bayanihan To Heal As One Act. — Adam J. Ang

BoC seeking proposals for real-time monitoring of warehoused imports

THE Bureau of Customs (BoC) said it is soliciting proposals for a system that will monitor in real time the transfer, storage and withdrawal of imports held in inventory at off-dock customs facilities and warehouses (CFWs).

In an advisory published in a newspaper yesterday, the BoC listed the qualifications for potential participants in the procurement exercise as Philippine-registered service providers operating in the Philippines for five consecutive years.

It also stipulated that potential bidders must supply a system compatible and capable of interfacing with the bureau’s cargo clearance process — both the current E2M Customs system or the upcoming Customs Processing system.

“The Bureau’s online inventory system for off-dock or off-terminal container freight stations will employ advanced technology in order to monitor the real-time status of import goods transferred, stored and withdrawn in the off-dock CFW to guard against possible revenue leakages arising from discrepancies and misdeclarations of quantity and gross weight,” it read.

Potential suppliers must not have been blacklisted by previous partners or had any of their services terminated by previous partners and should be proficient in cloud technology, which will be used when the system is deployed to all Customs collection offices and sub ports.

The BoC also stipulated a web-based with a real-time dashboard. It must display the status of cargo online, provide a portal for consignees to track cargoes from discharge date to release date, and issue pro forma invoices. The system must also be able to provide secure access to the application and maintain an audit trail for all activities, with such records to be held for at least five years.

The BoC also specified the recording of details like the trucking company assigned to move the shipment and information about the driver; the capture of photos of the sealed container and its contents.

“The subscription to the Cloud Solution shall be shouldered by the service provider for the duration of the contract,” it said.

The service provider will also have to train stakeholders, provide 24/7 support to users in the bureau and other parties and conduct weekly backups of the database. — Beatrice M. Laforga

NFA says rice stocks sufficient despite quarantine extension

THE National Food Authority (NFA) said its rice inventory is the equivalent of 11 days’ national consumption, which it judged as sufficient to meet projected demand even with the extension of the enhanced community quarantine imposed on Luzon.

NFA Administrator Judy Carol L. Dansal added that due to the coronavirus disease 2019 (COVID-19) outbreak, the NFA’s current market participation level — a measure of how much domestic rice it is buying and storing — is at 17.31%, against its usual share of 10%.

“Our rice supply is more than enough,” Ms. Dansal said.

Ms. Dansal also urged commercial rice traders to continue importing rice and to charge reasonable prices when selling to consumers.

She said that 90% of the country’s rice requirements are fulfilled by commercial rice traders.

Recently, the NFA released 88,065 bags of rice to the local governments of Caloocan, Malabon, Navotas, and Valenzuela.

“NFA and commercial rice traders need to work together to address the rice demands of the country,” Ms. Dansal said.

On March 30, NFA said that its rice inventory was at 481,800 metric tons.

The rice inventory included stocks bought from farmers during the last quarter of 2019. — Revin Mikhael D. Ochave

Palay prices rise 1.7% in late March

THE average farmgate price of palay, or unmilled rice, rose 1.7% week-on-week to P16.69 per kilogram in the fourth week of March, with prices down 11.2% year-on-year, according to the Philippine Statistics Authority.

In its weekly update on palay, rice, and corn prices, the PSA said that the average wholesale price of well-milled rice rose 0.9% week-on-week to P37.48 while the average retail price rose 0.6% to P41.49.

The average wholesale price of regular-milled rice rose 1% to P33.34 while the average retail price rose 0.03% to P36.37.

The average farmgate price of yellow corn grain fell 1.4% to P11.92 per kilogram.

The average wholesale price of yellow corn grain rose 1.3% week-on-week to P21.71 while the average retail price rose 0.7% to P25.11.

The average farmgate price of white corn grain rose 1.5% to P13.77.

The average wholesale and retail prices of white corn grain were flat at P16.33 and P26.90 respectively. — Revin Mikhael D. Ochave

PPA profit declines 25% in first quarter as pandemic dampens trade

THE Philippine Ports Authority (PPA) said Wednesday that net profit declined 25% year-on-year in the first quarter to P2.54 billion as port activity dwindled due to the coronavirus disease 2019 (COVID-19) outbreak.

PPA General Manager Jay Daniel R. Santiago said in a statement that this was “primarily because of the effects of the COVID-19 dating back when China first imposed a lockdown on Jan. 23 and eventually the (Philippine) government’s imposition of the Luzon-wide enhanced community quarantine from March 15 up to the present.”

In March, net profit declined 79% year-on-year to P300.93 million.

In terms of regulatory income, PPA said only Manila North Harbor Port, Inc. posted growth with a gain of 3.75%, while fees from International Container Terminal Services, Inc. and Asian Ports, Inc. declined 8% and 15%, respectively.

First-quarter revenue declined 17% to P3.75 billion, while March revenue fell 59% to P726.64 million, PPA said.

PPA recently remitted at least P5 billion in dividends to the national government. The funds will be used to support the government’s COVID-19 containment efforts and boost the Treasury with the disruption of the April tax collection season.

President Rodrigo R. Duterte extended the Luzon-wide lockdown period, originally scheduled to end on April 12, to the end of the month, pending containment of COVID-19.

“As early as January, there has been a slowdown in the movement of cargo as China, being the location of several transshipment hubs and a number of large manufacturing firms, has imposed restrictions to control the spread of the disease,” Mr. Santiago said. “Other countries, including the Philippines, followed suit.” — Arjay L. Balinbin

File now, amend later

In times of crisis, even clichés find renewed meaning. We all know that taxes are the lifeblood of the government. However, against the COVID-19 pandemic that has claimed thousands of lives worldwide, the maxim makes much more sense both literally and figuratively. Billions in public funds have been used to keep lives afloat, defray expenditures for medical supplies and equipment, and subsidize social amelioration projects for affected households, but much more is needed.

The impact of the impeded flow of taxes cannot be denied. Without the usual tax collections in April, the government quickly tapped emergency reserves, eyeing loans from foreign banks, and even considered selling government assets to pay for these loans and fund social welfare programs. With the extension of the quarantine until April 30, the Department of Finance (DoF) is facing further delay in the collection of taxes worth P145 billion, crucial for the country’s much-needed social protection and emergency health measures.

EXTENSION OF TAX DEADLINES
Even prior to the enactment of Republic Act No. 11469, otherwise known as the Bayanihan to Heal As One Act, on March 24, the Bureau of Internal Revenue (BIR) extended the filing and reportorial deadlines falling within the quarantine period. The various extensions covered not only tax return filings but also those related to value added tax refund claims, Certificate of Residence for Tax Treaty Relief (CORTT) Form filings, tax amnesty applications, and protests to tax assessments. All these extensions were consolidated in Revenue Regulations No. 7-2020 which formally implements the filing extensions granted under the Bayanihan Act.

With the extension of the quarantine, the BIR issued Revenue Memorandum Circular (RMC) No. 39-2020 on April 7, further extending the deadlines of some returns and reportorial requirements under RR No. 7-2020 for another 15 calendar days. Moreover, the BIR issued RR No. 10-2020 just recently to update all the extended deadlines and to include additional deadlines falling within the extended quarantine period until April 30.

PENALTY-FREE FILINGS AND AMENDMENTS
While the quarantine has made it necessary for the government to grant tax filing extensions, the BIR and the DoF have appealed to the public for early filing and payment of taxes and to take advantage of the online filing system and payment platforms.

Under the law, late payment of tax is subject to 12% interest, a 25% surcharge, and the applicable compromise penalty. The same penalties apply in case of an amended return with additional tax due but only if it is filed beyond the prescribed due date under existing regulations. The 25% surcharge alone accounts for a quarter of the basic tax due. Thus, while there may be taxpayers who prefer to submit their returns early, the risk of incurring these penalties may have held them back in case they have potential adjustments when finalizing their financial reports.

To address these concerns, the BIR issued RMC No. 37-2020 on April 6 to confirm that taxpayers can file their returns within the original deadline or before the extended deadline, and file an amended return at any time on or before the extended deadline, without interest, surcharge, and penalty. While these are automatically computed under the electronic filing and payment system (eFPS), the BIR has nevertheless previously issued a tax advisory to ignore and pay only the basic tax due.

Conversely, if the amended return results in overpayment of taxes in the original filing, the taxpayer can choose to use the overpaid tax as a credit in the succeeding periods for the same tax return or file a claim for refund, as applicable.

This goes hand in hand with other measures the BIR has implemented to make tax filing easier even for those who intend or are compelled to pay manually. In Bank Bulletin No. 2020-03, the BIR reiterated the responsibilities of the Authorized Agent Banks (AABs) to accept payments for Annual Income Tax Returns for 2019 and other tax returns falling due within the quarantine period. The AABs are directed to be flexible in handling the tax payments citing the suitability of accepting a combination of cash and check payments, and out-of-district returns without the imposition of any penalties.

CLARIFICATION ON MODE OF FILING FOR CERTAIN CORPORATE TAX RETURNS
As a reminder, RMC No. 37-2020 stated that the January 2018 enhanced version of the BIR Form No. 1701 or the Annual Income Tax Return for individuals (including mixed-income earner), estates, and trusts is not yet available on the eFPS. As such, eFPS filers shall use the offline eBIR Forms Package Version 7.6 that was recently circulated through RMC No. 16-2020. However, the BIR did not mention the other enhanced annual corporate income tax returns that are also not yet available on the eFPS — BIR

Form No. 1702-RT (for corporations subject to regular tax), BIR Form No. 1702-MX (for corporations with income subject to multiple tax rates or special/preferential tax rates) and BIR Form No. 1702-EX (for corporations exempt from income tax).

During the tax filing season last year, since the enhanced version of the corporate tax returns were not yet available on eFPS, the BIR issued RMC No. 46-2019 to direct taxpayers to still file through eFPS using the old forms. It seems that the same procedure will have to be followed for this tax filing season. Nevertheless, it would perhaps be helpful if the BIR can also issue similar guidelines to confirm the mode of filing for this year.

HEALING AS ONE
People have been clamoring for the government to do what is necessary to address the pandemic. This includes enabling our health workers to hold the front lines, and sustaining the lives of people who cannot earn a living while under quarantine. All this entails funding. Now more than ever, both taxpayers and the BIR need to work hand-in-hand to keep the country buoyant.

It is good that the BIR has been on its toes in an effort to ensure that its pronouncements are clear, comprehensive, and released in a timely manner to reach as many taxpayers as possible. Likewise, with the extension of the deadlines and waiving of penalties, it may also be an opportune time to reflect on our sovereign responsibility and the significance of our collective capacity as taxpayers to file and pay taxes early, if possible. In the Filipino spirit of bayanihan, let us do our part in lifting our country back towards recovery.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only and should not be used as a substitute for specific advice.

 

Milette Zapanta is a senior associate with the Tax Services Group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

milette.f.zapanta@pwc.com

Peso inches up vs dollar as sentiment improves

THE PESO gained slightly as market sentiment improved. — BW FILE PHOTO

THE PESO inched up versus the greenback on Wednesday on the back of market optimism over the possible partial lifting of restrictions in the United States as well as gains in the local stock market.

The local unit ended trading at P50.62 per dollar on Wednesday, appreciating by a centavo from its P50.63 close on Tuesday, according to data from the Bankers Association of the Philippines.

The peso started the day at P50.65 per dollar. Its weakest showing was at P50.67 while its strongest was at P50.60 against the greenback.

Dollars traded declined to $248.60 million on Wednesday from $340.40 million on Tuesday.

A trader said the peso’s slight gain came after positive sentiment on the back of recent developments in the US.

“The peso slightly appreciated today due to market optimism over prospects of partially re-opening the US economy from current lockdowns imposed in various states such as New York,” the trader said in an e-mail on Wednesday.

Reuters reported that 10 states including California and New York, which account for 23% of the country’s economic output, have been looking to reopen business operations temporarily halted due to the COVID-19 pandemic.

Other states including Oregon, Washington, New Jersey, Connecticut, Delaware, Pennsylvania, Rhode Island, and Massachusetts, are also eyeing to gradually open their economy and authorities from said states will make decisions based on their specific needs, according to New York Governor Andrew Cuomo.

US President Donald J. Trump has said the decision to reopen the economy remains with him. The White House is preparing its own plans which are expected to be announced soon.

However, Mr. Trump also hinted that state governors may move based on their own assessments.

“I’d rather have them make the decision,” he said in his daily news conference, Reuters reported.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the stronger peso came after gains in both the US and local stock markets.

“Peso was stronger amid continued improvement in global market risk appetite with the latest gains in the US and local stock markets to new 1-month highs,” he said in a text message.

Reuters reported that the Dow Jones Industrial Average inched up by 558.99 points or 2.39% to 23,949.76. The S&P 500 also gained 84.43 points or 3.06% to reach 2,846.06 while the Nasdaq Composite rose by 323.32 points or 3.95% to 8,515.74 on Tuesday.

At home, the Philippine Stock Exchange index increased by 165.17 points or 2.86% to 5,946.05.

The trader expects the peso to move within the P50.55 to P50.70 range today while Mr. Ricafort gave a forecast range of P50.55 to P50.70. — L.W.T. Noble with Reuters

PHL stocks climb as investors pick up bargains

By Denise A. Valdez, Reporter

LOCAL SHARES sustained their climb on Wednesday as bargain hunters continued fanning the market’s rise.

The benchmark Philippine Stock Exchange index (PSEi) rose 165.17 points or 2.85% to close at 5,946.05 yesterday, as the broader all shares index added 82.78 points or 2.38% to 3,551.73.

“Further bargain hunting lifted the local bourse, taking cues from the US indices performance overnight,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message yesterday.

US markets closed in green territory on Tuesday with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices gaining 2.39%, 3.06% and 3.95%, respectively.

“The continued rally was on the back of optimism brought by the fiscal stimulus package of the Philippine government to fight the current pandemic,” Ms. Alviar added.

The government continued announcing fiscal measures to address the economic impact of the coronavirus disease 2019 (COVID-19) pandemic, as President Rodrigo R. Duterte approved on Monday night a P51-billion allocation for wage subsidy to 3.4 million Filipinos working in small businesses.

“Local shares continued to jump, resuming the market’s sharp rebound from last month’s lows, as investors grew more optimistic about the COVID-19 outbreak,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The Coronavirus Resource Center of Johns Hopkins University showed a declining trend in new COVID-19 cases starting April 11. Daily cases have been dropping from over 79,800 on Apr. 11, over 75,200 on Apr. 12, over 70,3000 on April 13, to over 58,800 on Apr. 14. As of yesterday afternoon, total COVID-19 cases in the world stood at 1.98 million, with deaths reaching more than 126,700.

Sectoral indices at the local bourse all closed with gains on Wednesday. Financials rose 53.96 points or 4.47% to 1,260.00; mining and oil increased 189.36 points or 4.06% to 4,850.15; holding firms added 187.98 points or 3.31% to 5,852.57; property picked up 76.46 points or 2.55% to 3,069.28; services gained 13.45 points or 1.03% to 1,319.49; and industrials improved 73.39 points or 0.95% to 7,728.99.

Value turnover jumped to P9.1 billion from Tuesday’s P7.38 billion. Some 911.54 million issues switched hands yesterday.

Advancers outnumbered decliners, 135 against 66, while 40 names ended unchanged.

Money continued exiting the market, with net foreign selling growing to P1.37 billion from P1.29 billion seen on Tuesday.

“(Yesterday’s) strong value flows, once sustained, could bring the market back to the 6,000 level,” Ms. Alviar said. “6,000 mark remained to be a resistance, particularly that foreigners are still sellers despite the rally, and as COVID-19 cases are mounting in the country. Sell-on-rally would be the strategy for now in the short-run.”

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