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Kominers’s Conundrums: The best puzzles are made out of words

By Scott Duke Kominers, Bloomberg Opinion

DURING these recent weeks of lockdown, we’ve solved logic puzzles based around household objects — light switches and chessboards.* Now it’s time to try another genre, one of my personal favorites: wordplay.

Making games out of words is literally ancient. Even the Romans had a precursor of our modern crossword. And, of course, wordplay comes naturally to everyone in the form of puns, tongue twisters, and spoonerisms.** Wordplay puzzles take things to the next level by seeking surprising relationships between words, such as the ability to convert one into another by shuffling letters — otherwise known as an anagram. Here’s a famous one: https://wordsmith.org/anagram/hof.html

One of the best sources for these sorts of puzzles is the National Puzzlers’ League. They publish a monthly compilation in a journal called The Enigma — mostly in a versical form called “flats.”

In flats — which predate the crossword — a short poem is presented with some words conspicuously missing, along with a clue about how those words are related. The goal is to fill in the blanks.

I published one in The Enigma just over a decade ago:

HETERONYM (9, 2 *4-3)

(*4 = not MW)

I’m NINE that any hunter

Would want to TWO FOUR-THREE.

In rabbit or duck season,

It’s a bad plan, you see.

The verse itself is the puzzle, and lines at the top tell you a bit about the words you’re looking for:

The Basics: A “HETERONYM” is a classic form of wordplay. It means you’re looking to fill in the verse with two words or phrases that have the same spelling but different meanings. “Object” pronounced one way means “a thing”; pronounced another way, it means “to disapprove.” Meanwhile, “contract” could mean either shrinking something or a legal document. “Sake” is a rice wine, but it’s also the reason you take an action. You get even more heteronymic opportunities if you allow changes in capitalization (“August” vs. “august”; “Polish” vs. “polish”) or spacing (“mustache” becomes “must ache”).

The Clues: The numbers “(9, 2 *4-3)” indicate the lengths of the two parts of the answer: One of them is a single word that’s nine letters long; the other is a three-word phrase consisting of a two-letter word, a four-letter word, and a three-letter word (with a hyphen). The “*” before the 4 means that the four-letter word is actually a proper noun. And, naturally, these answer words fit into the analogous spaces in the verse (“NINE” and “TWO FOUR-THREE,” respectively).

The Advanced Clue: “(*4 = not MW)” further explains that the four-letter word isn’t just a proper noun — it’s an unusual one. In particular, it doesn’t appear in “MW,” better known as Merriam-Webster’s dictionary.

So give it a try: Can you think of a nine-letter word that fits where the “NINE” appears in the poem, and which you can break up into a three-word phrase with the proper word lengths to fit “TWO FOUR-THREE”?

Are you puzzled — befuddled, even?

There are multiple angles to try out: First, you might examine the verse, and focus on the words that seem most specific, or most unusual. Those are likely to be clues. “Rabbit or duck season?”: Why those animals specifically? Do they remind you of anything in particular?

And then you can think about the words themselves: How many nine-letter words would fit into the first line? It seems like the verse is suggesting a word like “SURPRISED.” That has nine letters, but when you break them up into the prescribed pattern it turns into gobbledygook.

So what else could the nine-letter word be?

Here’s another hint: I’ve actually used the word in my discussion of this puzzle already. Can you find it, figure out how it fits the verse, and then work out the wordplay? If so, then you’ve succeeded in stretching a different part of your brain than the one used for the light-switch and chessboard conundrums. Instead of logical reasoning, you’re deploying your brain’s language faculties, perhaps with a bit of assist from the part that processes humor.

And here’s another puzzle for more practice:

HETERONYM (7, 7)

Stuck at home another week:

a child past SEVEN?

“Not at all,” he said to me,

“I’ve got my game SEVEN!”

Here you’re looking for a single word with seven letters that means different things in the two contexts.*** And if you’ve really enjoyed solving these flats, check out this mini-issue of The Enigma, which gives a more detailed introduction to the form — http://download.puzzlers.org/public/enigma-minisample.pdf.

THE BONUS ROUND
Try this 100% online “escape room” developed by Nick and Spike Huntington-Klein (https://nickchk.com/cgi-bin/escape_entrance.py). Or read and solve one of these interactive puzzle stories (https://www.puzzletales.com/). Get yourself a new virtual conference background (https://www.pocket-lint.com/apps/news/151711-best-zoom-backgrounds-fun-virtual-backgrounds-for-zoom-meetings), or just rate your competition (https://twitter.com/ratemyskyperoom?s=03; hat tip: Josh Krieger). Also: “Math Bridge Extended Beyond Fermat’s Last Theorem” (https://www.quantamagazine.org/amazing-math-bridge-extended-beyond-fermats-last-theorem-20200406/); RIP John Conway (https://www.nytimes.com/2020/04/15/technology/john-horton-conway-dead-coronavirus.html). Quarantine-themed picture puzzles (https://www.insider.com/quarantine-themed-puzzles-2020-4); a cool take on the quadratic formula (https://www.youtube.com/watch?v=ZBalWWHYFQc); a coffee-pouring problem (https://twitter.com/_herbeautyxo/status/928756533370015749) that apparently broke the Internet (https://www.insider.com/coffee-pouring-puzzle-has-the-internet-confused-2017-11). And inquiring minds want to know: Real or Cake? (https://www.coolmathgames.com/trivia/real-or-cake)

* Last week I suggested that we may not be able to tell when an arbitrary modified chessboard has a domino covering. But my student Alex Wei has managed to prove that one can quickly verify whether a domino covering is possible, by converting the problem into an example of what is called “bipartite matching.” So if you have a modified chessboard and are curious, you can send it to him :). Or if you’ve got a bit of graph theory under your belt, you can try to work out the algorithm yourself.

**And don’t forget the name game, which features prominently in “Glinky” perhaps the strangest short story I’ve ever read.

***Experienced flat aficionados will notice I’ve taken a bit of liberty with format here in order to make the puzzle more accessible to readers who’ve never solved them before.

Drop in productivity seen as companies shift to work-from-home setups

By Arjay L. Balinbin
Reporter

MANAGEENGINE, an India-based multinational technology firm, warned companies that a sudden shift to work-from-home setups could lead to a “big drop” in employee productivity.

In a recent e-mail interview, Rajesh Ganesan, vice-president of ManageEngine, told BusinessWorld there are operational risks associated with the work-from-home setups, which became popular during the coronavirus lockdown.

“The culture and operating model of the business may pose a challenge. For example, if teams inside the business are used to in-person meetings for communication and collaboration, or if the culture demands strict supervision of employees, the sudden shift to working from home will cause a big drop in productivity,” he said.

He added that leaders of companies should plan for this and instill continuous awareness and training to keep their employees’ productivity at optimum levels.

Mr. Ganesan likewise said maintaining information security during this period is a primary challenge.

“Attackers will exploit the opportunity, so IT leadership needs to ensure security is tight before opening up remote access. They should look into investing in technology that facilitates secure remote access,” he explained.

He noted that most businesses today have completely migrated their communication and collaboration tools to the cloud.

With the new setup, he said, companies should make sure their employees are trained in basic information security, ensure employees understand their responsibilities and set up comprehensive auditing and surveillance for all user sessions, among others.

When providing their remote employees with access to exclusive corporate information, he said remote privileged session management tools can help.

“These tools offer secure channels through which employees can access information and perform operations remotely. The tools only provide access to users with the right permissions, ensure remote sessions last only for the required time, and record all actions users carry out in every session,” he explained.

Another factor that could affect employees’ productivity is the “at-home environment” where they are expected to get their work done, Mr. Ganesan added.

“Leadership must be proactive and understanding of employee needs, and should prepare plans to allocate a portion of the workstation budget for employees that need to replicate an office setup at home,” he suggested.

ManageEngine is the enterprise IT management software division of Zoho Corp., a software company headquartered in India that focuses on developing web-based business tools and IT solutions such as office tools suites, Internet of Things management platforms, and IT management softwares.

SMC, DA tie up for food security

San Miguel Corp. (SMC) will partner with the Department of Agriculture (DA) in two initiatives that will help secure food supply as farmers struggle from the impact of the coronavirus disease 2019 (COVID-19) pandemic.

SMC will mass purchase agricultural produce, starting with four million kilograms of surplus corn. The move aims to help farmers in their livelihood and increase food supply during the enhanced community quarantine.

The surplus corn is enough to manufacture feeds for over seven million live broilers that can further augment poultry supply in the country and is enough to feed four million families in a day.

“Through this program with the Agricultural department, we will be able to keep our farmers afloat as we navigate these uncertain times,” SMC President and Chief Operating Officer Ramon S. Ang said in a statement.

SMC will buy most of the four million kilograms of surplus corn from corn farms in Cagayan Valley, which span about 25,000 hectares.

The purchase of surplus corn is under pre-agreed prices and volume.

Mr. Ang also thanked the DA for offering its network of corn and cassava farmers where San Miguel Foods, Inc. can source the raw materials it needs for food production.

Meanwhile, SMC is also planning to use its Petron gas stations nationwide as outlets for the DA’s Kadiwa ni Ani at Kita rolling store program.

Under the partnership, farm produce and basic food commodities under the Kadiwa program will be stationed at Petron stations.

“We can also help people stay safe, healthy, and nourished by providing them a convenient way to buy fresh fruits and vegetables from our local farmers,” Mr. Ang said.

Initial venues for the program include Petron stations in Filinvest, EDSA, and Katipunan, with additional gas stations set to participate in the coming days.

SMC also guaranteed ample food supply for at least six months, lasting beyond the enhanced community quarantine.

Its facilities produce a daily output of 1.96 million kilograms of fresh meats such as poultry, beef, and pork, 524,000 kilograms of processed meats such as canned meat, and 2.11 million kilograms of flour and baked goods such as biscuits and nutribuns. — Revin Mikhael D. Ochave

Lawsuit claims 10 big banks rigged market for ‘odd-lot’ corporate bonds

NEW YORK — Ten of the world’s largest banks, including JPMorgan Chase and Bank of America, have been sued for allegedly conspiring over nearly 14 years to rig prices in the $9.6-trillion US corporate bond market, costing ordinary investors billions of dollars.

The proposed class action filed on Tuesday in federal court in Manhattan said the banks have since August 2006 violated antitrust law by overcharging investors on “odd-lot” trades, which are worth less than $1 million and comprise 90% of all corporate bond trading.

Other defendants include Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and Wells Fargo & Co, or their respective affiliates.

According to the 81-page complaint, the banks leveraged their power from handling more than two-thirds of US corporate bond underwriting to quietly inflate spreads between the prices where they would buy and sell odd-lot bonds.

This allegedly resulted in spreads 25% to 300% higher than on “round-lot” trades over $1 million, which are normally conducted by institutional investors, enabling the banks to reap higher compensation while boosting retail investors’ trading costs.

“No reasonable economic justification explains the magnitude of the pricing disparity,” the complaint said. It added that odd-lot spreads are narrower even in foreign bond markets with lower volumes and liquidity.

Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and Wells Fargo declined to comment. Representatives of the other banks did not immediately respond to requests for comment.

The investors are led by Isabel Litovich, a San Juan, Puerto Rico, resident who said the collusion resulted in overcharges on odd-lot bond trades through her Morgan Stanley account.

Lawyers for the plaintiff did not immediately respond to requests for comment.

The Manhattan court has been home to dozens of private lawsuits accusing banks of conspiring to move various bond, commodity and currency markets. Earlier settlements in some of those cases have resulted in billions of dollars in recoveries.

The case is Litovich v Bank of America Corp et al, US District Court, Southern District of New York, No. 20-03154. — Reuters

US videogame sales surge in March as lockdown keeps people indoor

VIDEOGAME sales in March hit their highest in over a decade, as Americans turned to games like Animal Crossing: New Horizons and Call of Duty: Modern Warfare because of lockdowns to stem the spread of the coronavirus.

Sales of gaming hardware, software and accessories in the United States jumped 35% to $1.6 billion last month from a year earlier, according to data from research firm NPD.

The sales and growth are the highest for the month since March 2008, when sales grew over 52% to $1.8 billion, NPD analyst Mat Piscatella said.

Nintendo’s life-simulation title Animal Crossing: New Horizons, launched last month, topped NPD’s best-selling list, followed by Activision Blizzard, Inc.’s battle blockbuster Call of Duty: Modern Warfare.

As the coronavirus shut down the country and forced millions inside their homes, certain businesses including gaming, online streaming and video conferencing have witnessed a boost in user engagement.

Analysts have expected gaming sales to benefit in the near-term from the stay-at-home orders.

NBA 2K20 from Take-Two Interactive Software, Inc. and Sony’s baseball simulation game MLB: The Show 20 were also among the most sold games, the data showed.

Sales of gaming consoles Xbox One, PlayStation 4 and Nintendo Switch rose 63% to $461 million in March from a year earlier. Nintendo Switch hardware sales more than doubled.

New-generation consoles, Microsoft Corp.’s Xbox Series X and Sony’s PlayStation 5, are expected to come out at the end of the year. — Reuters

Manila, Batangas ports at ‘optimal’ operations

Manila South Harbor and Batangas Port are operating at “optimal level” amid the government-imposed enhanced community quarantine, listed port operator Asian Terminals, Inc. (ATI) said.

ATI said government actions such as the issuance of guidelines to address possible logistics issues during the lockdown period have helped the ports it manages to “remain optimal.”

In March, the Philippine Ports Authority (PPA) had appealed to businesses to immediately remove their ready-for-delivery and overstaying cargoes, warning them that the shutdown of Manila port terminals was possible if they would not heed the request.

“A week after the Lenten break, berth and yard operations at Manila South Harbor have remained steady, with yard utilization at an optimum level of around 70%. Over in Batangas, yard utilization at the Batangas Container Terminal has remained its usual 50%, with manufacturers and industrial locators, mostly based in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon), pulling out cargoes in a regular and timely manner,” ATI said.

ATI Executive Vice President William Khoury said: “Government’s early intervention was critical to ensure that terminal operations remain unimpeded, so that the flow of food, raw materials, medicines, health equipment and other essentials remain unhampered, especially during this time of national emergency.”

ATI also reminded its consignees to withdraw their containers at the soonest possible time.

On Monday, International Container Terminal Services, Inc. (ICTSI) also reported that operations at the Manila International Container Terminal had returned to normal levels after stakeholders responded to calls to withdraw their overstaying cargoes. — Arjay L. Balinbin

E-payments pushed amid lockdown

THE CENTRAL BANK is urging consumers to shift to e-payments amid the current enhanced community quarantine (ECQ) to prevent further spread of the coronavirus disease 2019 (COVID-19).

In a statement, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno encourage the “use of e-payment services through electronic fund transfer schemes PESONet and InstaPay.”

“Fees for these services have been waived by authorized financial institutions during the ECQ period,” Mr. Diokno said.

According to the BSP, InstaPay and PESONet may be used for person-to-government transactions such as tax payments.

Likewise, government-to-person transactions such as the distribution of monetary benefits under the Social Amelioration Program of the Bayanihan We Heal as One Act can also be coursed through these payment channels.

InstaPay allows for real-time fund transfers of amounts up to P50,000 and is already offered by 45 financial institutions.

Meanwhile, PESONet is meant for high value transactions which can be credited by the end of the banking day, provided that the money was transferred within the cut-off time of financial institutions. The service is authorized to be carried out by 56 institutions.

Mr. Diokno said consumers should exercise due diligence and utmost vigilance when making e-payments and entering into other online transactions in view of potential risks, such as phishing, spoofing, fraud and scams.

“Usage of e-payments reduces people’s need for mobility, helps prevent health risks of physical contact during over-the-counter transactions, partially addresses difficulties of providing cash supply to ATMs (automated teller machines) and bank branches, and supports the general objectives of the ongoing ECQ,” the BSP said.

During the lockdown, banks have seen a surge in online transactions including opening of accounts as well as fund transfers.

The volume of online payment transactions in the country grew to 10% of total transactions in 2018 from a mere 1% in 2013, according to a study by Better-than-Cash Alliance. Meanwhile, the value of e-payments rose to comprise 20% of the total in 2018 from the 8% seen in 2013.

The central bank wants 20% of transaction volumes and 30% of transaction value done digitally by this year’s close. — LWTN

Why we should not ban liquor during ECQ

UNLIKE countries like South Africa and even Greenland, the Philippines is not technically under a total liquor ban during this COVID-19 crisis. However, it feels like it is. When President Duterte imposed the Enhanced Community Quarantine (ECQ, or a nicer way of saying “lockdown”) for Luzon on March 16 amid the threat of the pandemic, the actual guidelines do not include a call for a total liquor ban.

But many Local Government Units (LGUs) have enacted local ordinances to carry out liquor bans. And like dominoes, provinces and Metro Manila cities follow.

While Visayas and Mindanao were not included in the quarantine, Cabinet Secretary Karlo Nograles, the designated spokesperson of the Inter-Agency Task Force for the Management for the Emerging Infectious Diseases (IATF-EID), said these regions outside of Luzon can also impose ECQ as necessary. And, sure enough, almost every province implemented their own ECQ following the same guidelines as announced for Luzon. Almost immediately after the ECQ announcement, the Cebu City government imposed a liquor ban on March 16.

In Metro Manila, liquor bans were not immediately imposed. But it took just a week or after the ECQ was implemented for some of the capital region’s 17 cities to tighten things up. Mandaluyong and Parañaque were among the earliest cities to enforce liquor bans, making their announcements on March 23. They were followed soon by Quezon City, Pasig, and Valenzuela. By the end of March, almost every city — except Makati, Taguig, Malabon, Marikina, Navotas, and Pasay — were implementing liquor bans. But Marikina, Navotas, and Pasay caved in eventually by April. By mid-April, cities nationwide — from Baguio, Legazpi, and Cebu, to Bacolod, Davao, and Cagayan de Oro — were all under liquor bans, easily covering 95% of our population in my humble estimate. This is a bit weird given that even our Muslim neighboring countries like Indonesia and Malaysia, both also in the midst of combating COVID-19, have not imposed liquor bans.

LIQUOR BAN JUSTIFICATION
When a country like South Africa, which is among the top 10 wine producing countries in the world, imposed a liquor ban on its populace during this COVID-19 crisis, something must be really crucial to make this tough decision. Even South African Breweries (SAB), owned by the multinational Anheuser-Busch InBev group (of Budweiser and Michelob), which enjoyed a San Miguel-like beer monopoly in South Africa, ceased operations during this liquor ban. Beer is the overwhelming preferred liquor in the country, followed by wine. Thousands of jobs, and of course the drinking lifestyles, were affected by the ban considering that South Africa is also among the world’s highest per capita consumer of liquor. South African research showed that a significant percentage of these liquor consumers are known to be binge drinkers and severe alcoholics.

President Cyril Ramaphosa declared the outbreak of COVID-19 in South Africa as a State of National Disaster by early March and then a lockdown, which included a liquor ban, by March 27. Many of the reasons cited were health- and social distancing-related, like consumption of liquor affects one’s immune system, and that alcohol reduces a person’s ability to exercise social distancing and follow the personal hygiene measures necessary to limit the spread of person to person virus transmission.

But a more convincing argument being emphasized, especially by healthcare workers, is that hospitals normally have to attend to liquor-related abuses, including car accidents, domestic violence, stabbings, gunshots, and alcohol poisoning. With an alcohol ban, the emergency rooms freed up at least 25% of their capacity that were otherwise given to liquor-related victims. While I do not see this as being the case in the Philippines, if we at all have statics similar to the South African finding, one thing is for sure, our health care is also very vulnerable as that of South Africa is, and every hospital bed and every health care personnel should be attending to COVID-19 and other health emergencies, and not those induced by liquor.

REQUEST TO LIFT LIQUOR RESTRICTIONS
There are liquor bans and there is liquor restriction. The latter is more serious as manufacturing plants of non-essential products, among which liquor products have been classified, have to shut down too. The tiny window of liquor commerce in Taguig, Makati, and Malabon, can dry up soon if no new liquor production nor new liquor importation come through from the strict restrictions during this ECQ.

The problem with this window is it allows those with liquor businesses based in Makati, Taguig and perhaps in Malabon to continue to thrive, almost unfairly against all the other companies based in cities outside of these three outliers. Actually many of these traders are selling off their oldest inventory at good margins given the lack of competition from other cities and other traders.

I am also not surprised that many people attempt to cross city borders to buy liquor, or use Lalamove or Grab to do this maneuver. Finally, I am even tempted to say it appeared elitist that Makati and Taguig, arguably the two most expensive local cities to live in, have no liquor bans. I strongly believe that if any of these three cities can discipline themselves when it comes to liquor abuse during ECQ, then all cities could do so too.

But now, the liquor manufacturers are also crying for help. It took a month after the ECQ was imposed before the Center for Alcohol Research and Development (CARD) Foundation Inc., whose members are composed of the largest liquor companies in the country, from Ginebra San Miguel and Emperador Distillers to the Lucio Tan Group, sent a letter, dated April 16 to Secretary Ramon Lopez of the Department of Trade Industry requesting for the lifting of liquor restrictions, including liquor bans. As CARD Chairman Gerard Tee eloquently explained in his two-page letter and I quote here from his second to the last paragraph: “As already said, the Alcohol Beverage Industry bears already the agony of declining market demand due to the imposition of high excise taxes on alcohol. We are pleading to let us thrive as a business, by allowing our products to exist in the market, with the same freedom of trade given to other goods and products. We plead that you take into consideration the plight of our workers and the benefit that our industry provides to our nation’s economy. It bears stressing, even with pain of being called redundant, that the sale of our alcoholic beverages is not an illegal undertaking, not deserving of the prohibition and total ban imposed by the Government. Allow us a means to survive amidst the already difficult situation we are in.”

Just last January, Republic Act 11467 was signed by President Rodrigo Duterte, raising excise taxes on liquor products. While the business argument will always be a very strong case, as a regular responsible drinker, I feel that alcohol consumption can really calm the nerves, especially when we are dealing with so much stress (social and financial) and a lot of uncertainty. In the US, liquor sales were up in high double-digits during the last week of March.

Unfortunately, like in the case of South Africa’s liquor ban concerns, there will be Filipinos who will abuse alcohol and break ECQ protocols, and thus the worry is really warranted.

MODEST SUGGESTION ON HOW WE LIFT THE LIQUOR BAN
When I read the news that the Philippine National Police declared that the crime rate in the country has gone down over 50% since the ECQ, the statistics included cities with and without liquor bans. I do not think crime reduction was any different in Makati than in Quezon City, which means the ECQ works to deter crime, and may have nothing to do with alcohol. The key is for responsible alcohol consumption. As mentioned also in the CARD Foundation letter to the DTI, and I quote another portion which summed up my belief: “… alcohol consumption can be taken in moderation by responsible individuals of the society who are accustomed to drinking alcohol.”

In the same letter, CARD actually suggested a Partial Ban on Sale and Purchase of Alcoholic Beverages, which CARD equated to a ‘restriction of time that alcohol can be sold.’ I agree with this, but I want to add another equally important provision, a limit to alcohol purchases. It can be likened to airline duty free restrictions of ONLY two bottles of liquor, or only 1.5 liters of alcohol. The time restriction, say from noon to 4 p.m., plus a 1.5L total purchase ceiling per ECQ pass holder, would probably make more sense initially. But this one, if approved, should be implemented in all cities, including Makati, Taguig and Malabon. Again, for fairness and equality, all cities should follow the same rules and guidelines.

The author is a member of the UK-based Circle of Wine Writers (CWW). For comments, inquiries, wine event coverage, wine consultancy and other wine related concerns, please e-mail him at protegeinc@yahoo.com.

Philippines slips in press freedom ranking

Philippines slips in press freedom ranking

How PSEi member stocks performed — April 22, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 22, 2020.


PSEi sinks for third straight day on profit taking

THE MAIN INDEX marked its third straight day of decline on Wednesday as the market was taken over by profit taking.

The benchmark Philippine Stock Exchange index (PSEi) shed 18.50 points or 0.33% to close at 5,573.75 yesterday, while the broader all shares index slid 1.57 point or 0.04% to 3,388.17.

“We saw heavy selling again at the open today which caused the PSEi to open much lower,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Wednesday.

The main index opened at 5,517.67 before trimming its losses throughout the trading session, reaching a high of 5,577.91 before settling at 5,573.75 at the close.

“After two days of consecutive losses, investors took a chance at current prices. It ended the day above the 5,500 support level and may start moving higher toward the end of the week,” Mr. Mangun said.

For Philstocks Financial, Inc. Research Associate Claire T. Alviar, the activity of investors yesterday was also driven by uncertainties on the extension of the enhanced community quarantine (ECQ) over Luzon.

“The local bourse…(ended) at the red territory as investors awaited the government’s decision whether to lift or to extend the enhanced community quarantine. It was evident on lower value flows today at P5.07 billion, compared with year-to-date average of P6.5 billion,” she said in a text message.

President Rodrigo R. Duterte is expected to make an announcement this week if the ECQ will be lifted or extended after its April 30 deadline. State leaders and experts have met on Monday to discuss options on how to balance containing the virus and kickstarting the recovery of the economy.

“Some investors were undecided on whether to pick up already or sell their position by now since this lockdown is still uncertain when to be lifted,” Ms. Alviar said.

Yesterday’s trading volume stood at 600.52 million issues valued at P5.07 million, down from Tuesday’s 764.34 issues worth P5.66 billion.

Sectoral indices were led by decliners: mining and oil dropped 88.48 points or 1.90% to 4,554.32; property lost 47.26 points or 1.65% to 2,813.66; holding firms trimmed 40.93 points or 0.73% to 5,510.91; and financials slipped 5.74 points or 0.48% to 1,189.60.

The only gainers were services, which added 28.36 points or 2.23% to 1,295.33; and industrials, which picked up 22.22 points or 0.30% to 7,277.63.

“[W]orries on oil prices were still on the table, despite the government’s comment that we are one of the net beneficiaries of it, because of dismal oil demand outlook. While BSP’s (Bangko Sentral ng Pilipinas’) tentative Philippine growth forecast between -1% and 0% dragged investors’ sentiment further,” Ms. Alviar said.

Decliners beat advancers, 101 against 67, while 54 names ended unchanged. Net foreign selling stood at P236.22 million, lower than Tuesday’s P763.35 million. — Denise A. Valdez

Peso inches lower as oil’s drop affects sentiment

THE PESO inched down as the decline in oil prices earlier this week continued to affect investor sentiment. — BW FILE PHOTO

THE PESO closed sideways on Wednesday due to weak investor sentiment because of worries over lockdowns amid the coronavirus disease 2019 (COVID-19) outbreak and after a drop in oil prices.

The local unit finished trading at P50.80 per dollar yesterday, depreciating by a centavo from its P50.79 close on Tuesday, according to data from the Bankers Association of the Philippines.

The peso opened the session at P50.85 per dollar. Its weakest showing was at P50.88 while its strongest was at P50.79 against the greenback.

Volume of dollars traded declined to $212.77 million from the $381.9 million logged on Tuesday.

A trader said the peso’s slight weakness came on the back of market jitters on the economic impact of lockdowns due to the pandemic.

“The peso slightly weakened as investors remained broadly cautious over the economic impact of the coronavirus-related lockdowns locally and abroad,” the trader said in an e-mail.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted the peso’s slight depreciation came after a decline in global stock markets.

“Peso was slightly weaker after healthy downward correction in the US and local stock markets, as the collapse in global oil prices could adversely affect valuation of listed oil companies,” he said in a text message.

Reuters reported that Asian stock markets dropped to two-week lows on Wednesday due to lower crude prices caused by falling demand on the back of COVID-19.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped by 0.8% while Japan’s Nikkei slumped by 1.2%.

At home, the Philippine Stock Exchange index shed 18.50 points or 0.33% to close at 5,573.75 on Wednesday.

Oil prices found some respite on Wednesday as US oil futures rose more than 20% and Brent prices steadied after a two-day price plunge, as markets struggle with a massive crude glut amid the coronavirus outbreak.

After falling into negative territory for the first time in history amid record trading volumes, US crude futures rose 20% as contracts for May delivery expired and the June contract became the front month.

West Texas Intermediate was up $2.05 or 18% at $13.62 a barrel by 0034 GMT.

Brent crude, which settled down 24% in the previous session, was up 4 cents at $19.37 a barrel after rising more than $1 earlier.

Oil prices have slumped over 70% this year as the coronavirus has slashed demand for everything from jet fuel to gasoline, while storage tanks around the globe are filling rapidly.

For today, the trader gave a forecast range of P50.80 to P51 per dollar, while Mr. Ricafort sees the local unit moving around the 50.70 to P50.90 levels. — LWTN with Reuters