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Courts ordered to keep skeletal workforce

THE Supreme Court (SC) has ordered courts in Metro Manila to operate using skeletal staff from March 15 to April 12 after President Rodrigo R. Duterte declared a lockdown in the capital and nearby cities.

“All justices and judges must be on standby during this period to act on and hear urgent matters,” it said in statement.

The high court held a special en banc session on Friday to address health concerns due to the new coronavirus outbreak.

The court also ordered the Court of Appeals, Sandiganbayan and Court of Tax Appeals, to allow the entry of those who have official business, provide court premises and common areas were sanitized.

Executive and associate justices must monitor their personnel and workplaces, it said.

The court yesterday issued a circular suspending hearings in all courts from March 13 to 18. — Vann Marlo M. Villegas

Travels to and from Davao City discouraged

DAVAO CITY Mayor Sara Duterte-Carpio has issued an order discouraging travel to and from the city given limited local medical services and facilities amid a novel coronavirus threat.

“We are asking people to cancel all their plans to visit Davao City,” Ms. Carpio, who is on self-quarantine after a recent trip to Metro Manila, said over state-owned Davao Disaster Radio late Thursday.

The City Information Office on Friday said there was no lockdown.

Davao City has the Southern Philippines Medical Center (SPMC), the biggest state hospital in Mindanao. It is the only designated test center on the southern island for the coronavirus disease 2019 (COVID-19).

Two of those confined at the hospital’s isolation facility, whose capacity is limited to 12 patients, are sisters from Glan, Sarangani province who tried to escape the mandatory quarantine in their hometown.

The sisters, both overseas Filipino workers who were scheduled to fly back to Japan, were under monitoring for COVID-19 at a Sarangani facility after showing symptoms of the disease.

They left and were traced to a hotel in Davao City, where a team of health and police officers picked them up on Friday morning.

Glan Mayor Vivien B. Yap told media she might file charges against the two for violating a presidential proclamation placing the country under a state of public health emergency. — Maya M. Padillo and Carmelito Q. Francisco

Stocks rise 1% as investors, pension funds snap bargains

LOCAL stocks ended on a positive note on Friday, capping a wild week that saw the equities market reel from the continuous spread of the novel coronavirus disease (COVID-19) epidemic.

The 30 member Philippine Stock Exchange index (PSEi) increased by 1% or 57.67 points to 5,793.94 while the broader all shares index went up by 0.03% or 0.87 points to 3,493.64.

In a text message, Philstocks Financial, Inc. Research Associate Claire T. Alviar credits the increase to bargain-hunting and support from the government.

She said the instruction of Finance Secretary Carlos G. Domínguez III to state benefits and retirement funds Government Service Insurance System (GSIS) and Social Security System (SSS) “to take advantage of the stocks’ bargain prices lifted investor sentiment, pushing them to pick up more stocks which seen in the strong value turnover of P10.71 billion — the second highest value turnover for this year.”

Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan added that investors may have reacted positively on reports that the GSIS and SSS were urged to purchase more shares as the market was going down.

However, during the day, the market went down as low as 5,097.9. It prompted the PSE’s 10% circuit breaker and started a 15 minute cool off.

“The 6.51% decline at the opening was the widest since September 18, 1998’s 7.46% drop,” Ms. Alviar said.

In a text message, PNB Securities, Inc. President Manuel Antonio G. Lisbona said he saw the break as vital in giving the investors time to recover.

“Investors did take the break to regain some sort of composure and digest some of the latest developments which prompted them to reassess their trades. News of central banks’ increases in liquidity as well as economic support measures from international governments provided much needed comfort,” Mr. Lisbona said.

Among the indices, the mining and oil index had the biggest decline at 4.72% or 233.94 points to 4,727.81, followed by property going down by 2.5% or 76.46 points to 2,985.4 and industrials shrinking by 0.65% or 46.07 points to 7,071.11.

Meanwhile, financials increased by 3.79% or 51.65 points to 1,415.66, holding firms went up by 1.3% or 72.75 points to 5,673.65, and services went higher by 3.42% or 39.3 points to 1,187.61.

Mr. Pangan said that market breadth remained negative as investors focused on hunting bargain blue chips.

Decliners outpaced advancers with 139 and 87, respectively, while 36 remained unchanged. Net foreign selling was at P1.6 billion. — Revin Mikhael D. Ochave

SEC to firms: disclose Impact of virus on operations

THE Securities and Exchange Commission (SEC) told listed companies to disclose information concerning the impact of the new coronavirus disease 2019 (COVID-19) pandemic on their operations.

In a notice dated Feb. 12, the corporate regulator required the publicly listed companies (PLC) to submit their current reports, which should include the measures they have undertaken or plans to adopt to temper their risks due to the coronavirus contagion.

“[A]ll publicly listed companies (PLC) are mandated to apprise the investing public of risks and impact of the COVID-19 on their business operation by filing SEC Form 17-C,” read the notice, which was released on Friday.

“The PLC must also indicate in their report, all measures to mitigate the risks of the COVID-19 that it will undertake or has undertaken,” it added.

SEC Form 17 or the current report informs the investing public of “every material fact or event that occurs, this would reasonably be expected to affect investor’s decisions in relation to those securities,” the regulator said.

The SEC said it is the duty of companies to report “every fact that would reasonably be expected to materially affect the decision of investors to buy, sell or hold securities.”

The companies can file their reports to be published at the Philippine Stock Exchange (PSE) Electronic Disclosure Generation Technology (EDGE) website until noon of March 16, Monday.

In response, MEDCO Holdings, Inc. released its report, informing the PSE that it has implemented a work-from-home scheme and has cut working hours for its employees doing office works starting March 13.

“A 14-day self quarantine period will also be imposed on employees who will be exposed to persons that are confirmed to have contracted the COVID-19 virus,” the mineral exploration firm added.

The Aboitiz Group said in a separate press statement that it had reminded employees about proper hygiene measures, travel and social distancing guidelines, workplace sanitation. It has also provided regular updates on COVID-19.

“Our utmost concern is the health and safety of our team members,” Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz said.

ABS-CBN Corp. told the PSE that the coronavirus pandemic had affected advertising revenues and retail sales, as well as events and theatrical box office business performances, both here and abroad.

“To that end, ABS-CBN has triggered its business continuity protocols which are designed to deliver on these objectives,” the media company added.

Its investment arm, ABS-CBN Holdings Corp., which issues Philippine Depositary Receipts, said the pandemic had “no associated risk” in its business, but it had considered teleconferencing after the government’s social distancing policy.

AllHome Corp., in another report, noted the risk on its inventories, especially on tiles and sanitary wares, due to the disruption in the supply chain. Besides this, it also perceived a decline in foot traffic on its stores and a drop in home furnishing and home building spending.

The home retailer also said it will inform stakeholders on the changes to its expansion program for the year.

Meanwhile, Philcomsat Holdings Corp. said the coronavirus disease would not be a risk on its operations, yet it had enforced preventive measures like providing rubbing alcohol and face masks to employees, and allowing a work-from-home scheme for some.

DMCI Holdings, Inc. also claims it has low risk to COVID-19 due to its small workforce. It has also carried out preventive procedures for offices and employees.

Euro-Med Laboratories Phil., Inc., on its part, said it “remain in full operation.”

Separately, the PSE said on Friday that it would implement guidelines for trading floor personnel.

It said trading participants with booths on the trading floor are “strongly encouraged” to temporarily switch to remote or offsite trading. Those that decide to continue doing business on the trading floor are required to limit the number of personnel to one trader per booth, effective Tuesday, March 17.

“Traders who will report on the trading floor will be subject to thermal scanning and other precautionary measures adopted by the Exchange and the building manager. Therefore, a trader whose body temperature is at least 37.3°C shall be refused entry. In cases where the trader developed fever subsequent to entry to the trading floor, the said trader will be required to go home immediately,” the PSE said. — Adam J. Ang

PAL, AirAsia cancel flights after Metro Manila ‘quarantine’

By Arjay L. Balinbin, Reporter

FLAG carrier Philippine Airlines (PAL) and budget carrier Philippines AirAsia, Inc. announced on Friday the cancellation of hundreds of their domestic flights to and from Manila from March 15 to April 14 in view of the implementation of President Rodrigo R. Duterte’s “community quarantine” order.

PAL, operated by PAL Holdings, Inc., said in an advisory that it was cancelling its domestic air travel to and from Manila during the said period to protect the public from the deadly COVID-19.

Mr. Duterte’s order came after the code alert system for COVID-19 in the Philippines was raised to Code Red Sublevel 2, which means that community transmission is already evident.

Both PAL and AirAsia said flights that are not bound for Manila will continue their normal operations.

AirAsia said 102 domestic round trip flights daily will be affected.

PAL said 60 of its daily domestic flights are going to be affected.

“This is a developing situation. We shall provide further updates. As of this time, we are awaiting the official guidelines in relation to the implementation of this temporary suspension of domestic flights to/from Manila,” PAL said.

“Rest assured that we will comply with all government mandates and continue to coordinate closely with the government authorities in the interest of the health and safety of all our passengers,” it added.

Both airlines allow their passengers to rebook their flight tickets to a new travel date for free or obtain a full refund.

For AirAsia tickets, a passenger may retain the value of his fare in his AirAsia BIG Loyalty account for future travel with the carrier.

PAL allows its passengers to reroute their tickets on the same fare class.

Apart from domestic air travel, Mr. Duterte’s order also covers land and domestic sea travel to and from Metro Manila.

The measure is subject to daily monitoring and reassessment by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

Cabinet Secretary Karlo Alexei B. Nograles said flights from Metro Manila going to and coming from abroad will be allowed, but subject to travel restrictions that are currently in place.

“Anyone flying in from abroad via Ninoy Aquino International Airport will remain in Metro Manila until the domestic travel ban is lifted, and again, that begins on March 15. If the ultimate destination is in the provinces, we suggest to fly in via Clark, Cebu and other airports that are not under quarantine, so you can proceed to your ultimate destination in the provinces,” he said in a briefing.

Nickel Asia posts 11% income slide

NICKEL ASIA Corp. reported an 11% decline in attributable net income last year to P2.68 billion after the listed miner and ore exporter recorded a drop in its share from two mining investments.

In a disclosure to the stock exchange on Friday, the company said its share of equity in the net income of Taganito HPAL Nickel Corp. and Coral Bay Nickel Corp. decreased to P10 million in 2019, or much lower than the P348 million posted a year earlier.

“Last year was another challenging year for the company. The huge increase in nickel ore exports from Indonesia had put a dampener on ore prices for most of the year, making the company focus more on the sale of higher value saprolite ore,” said Nickel Asia President Martin Antonio G. Zamora in a statement.

The drop in the company’s share of equity from the two entities came after a decline in the average realized price of cobalt, which fell to $16.57 per pound last year from $37.35 per pound in 2018.

Nickel Asia said it recognized a foreign exchange loss of P264 million last year, a reversal of the P363 million gain from the earlier year, because of the weaker US dollar against the peso.

The company sold a total of 18.8 million wet metric tons of nickel ore, down 2.6% from the previous year. It said it had focused more on exports of higher value saprolite ore to China, resulting in a decline in shipments during the year.

Revenues last year slipped to P17.92 billion, down 3.9% from the previous year because of the lower shipments and a less favorable peso-dollar exchange rate. Costs grew by 5.5% to P7.91 billion. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 13.9% to P6.54 billion.

Mr. Zamora said that the company remains optimistic amid the challenges.

“The twin-effects of the Indonesian nickel ore ban, which took place on January 1st, 2020, combined with the bright outlook for LME (London Metal Exchange)-linked nickel, given the evolution of battery technology, will certainly bode well for the Company’s medium term prospects,” he said.

The company’s board of directors approved a cash dividend of P0.08 per common share, payable on April 8, 2020, for shareholders of record on March 27, 2020.

On Friday, shares in the company jumped by 3.3% to P1.86 each. — R. M. D. Ochave

JFC inks deal to expand Tim Ho Wan in China

TIM HO WAN is set to open its flagship store in China after Jollibee Foods Corp.’s (JFC) Shanghai-based joint venture Hong Yun Hong Food and Beverages Management Co. Ltd. has secured a franchise deal to expand the Hong Kong-based dim sum business in the mainland.

JFC announced on Friday that its joint venture with Dim Sum Pte. Ltd. through its wholly owned subsidiary Golden Plate Pte. Ltd. has signed a unit franchise agreement with Tim Ho Wan Pte. Ltd. to operate a franchised store of the dim sum company in Shanghai.

“The Tim Ho Wan deal provides JFC with an excellent opportunity to operate and expand one of the known Michelin-starred dim sum restaurant chain brands,” the chicken giant said in a disclosure sent to the Philippine Stock Exchange.

But the chicken operator said it is not planning an aggressive expansion in the next three to five years.

“The JV is not expected to have an immediate material impact on the JFC Group’s sales, profitability and balance sheet as it is not planning for an aggressive expansion in 3 to 5 years,” JFC said.

“The first few years will be focused on developing and building the store model and economics,” it added. — Adam J. Ang

2Go cancels trips to and from Manila

SHIPPING and logistics provider 2Go Group, Inc. announced on Friday the cancellation of its voyages to and from Manila from March 15 in view of President Rodrigo R. Duterte’s “community quarantine” directive in Metro Manila.

“For now, voyages to and from Manila from March 15 are cancelled. We are monitoring government advisories on a daily basis and once clearance is provided, we will resume normal operations,” 2Go said in an advisory.

It said the cancellation advisory does not cover its freight and cargo services.

The company also cancelled its Cagayan de Oro-Manila and Cebu-Manila trips on Friday.

“As the resumption of sailings is reviewed day to day, we encourage all passengers with trips booked on cancelled sailings March 13 onwards to monitor our announcements on resumption of service and rebook tickets accordingly at any corporate ticketing outlet or where tickets were bought,” it said.

It said surcharges like rebooking fees and fare difference will be waived.

Mr. Duterte’s order came after the code alert system for coronavirus disease 2019 (COVID-19) in the Philippines was raised to Code Red Sublevel 2, which means that community transmission is already evident.

At least two local airlines have cancelled their domestic flights to and from Manila from March 15 to April 14.

Land travel to and from Metro Manila will also be suspended during the said period.

The measure is subject to daily monitoring and reassessment by the Inter-Agency Task Force on Emerging Infectious Diseases (IATF).

The Trade department said the President’s directive does not cover the operations of businesses.

Goods are also free to move, according to Trade Secretary Ramon M. Lopez.

“To be clear, and to allay the fears and apprehension of the public, the government is essentially calling for a stricter implementation of preventive measures in order to slow down and put a halt to the further spread of COVID-19. While a total and absolute lockdown is considered by some as a valid preventive measure, current circumstances do not warrant such an extreme course of action,” Presidential Spokesperson Salvador S. Panelo said in a statement.

“While the Duterte Administration remains resolute in combating this disease, the Palace asks affected entities and individuals for their cooperation in properly observing the foregoing adopted measures,” he added. — Arjay L. Balinbin

SSS, GSIS directed to prop up PSE with more equities purchases

FINANCE Secretary Carlos G. Dominguez III said Friday that the state pension funds need to double their regular equities purchases to help prop up the stock market after sharp losses triggered trading halts Thursday.

In a Viber message yesterday, Mr. Dominguez told reporters he asked the Government Service Insurance System (GSIS) and the Social Security System (SSS) to double their daily average purchase volume, at the very least, in response to the market rout triggered by the coronavirus (Covid-19) outbreak.

“I have instructed GSIS and SSS to take advantage of the low stock prices as well as to support the stock market by at least doubling their daily average purchase volume of last year,” he said.

The Philippine Stock Exchange index (PSEi) fell 9.71% to 5,736.27 Thursday, its largest one-day drop since the 12.27% decline on Oct. 12, 2008, during the subprime mortgage crisis.

The PSEi dropped by as much as 10.33% intraday, which triggered the circuit breaker that halted trading for 15 minutes.

On Thursday, Mr. Dominguez said the government has “all the tools — medical, financial and monetary — to successfully handle this situation.”

Mr. Dominguez provided no estimates for the two pension funds’ equity positions.

Asked for details, the GSIS and SSS had not responded at deadline time. — Beatrice M. Laforga

Exporters call for gov’t aid to cushion impact of pandemic

THE Philippine Exporters Confederation, Inc. (PhilExport) said the the government needs to help businesses stay afloat during the coronavirus (Covid-19) outbreak and pitched a program of easier financing terms, tax breaks, and unemployment relief for workers.

“With no medical relief in sight to address the virus itself, we call on government’s assistance to help businesses, especially MSMEs (micro, small and medium enterprises), keep afloat through collateral-free loans, moratorium on loan and interest payments and tax breaks,” PhilExport President Sergio Ortiz-Luis Jr. said in a statement e-mailed to reporters on Friday.

He said PhilExport members have expressed their “very serious” concerns about the impact of the Covid-19 on their businesses.

Such concerns include late shipments, cancelled orders, and loss of buyers and suppliers, he said.

“These have resulted in higher cost of logistics and raw materials, as well as lower sales,” he added.

Mr. Ortiz-Luis said four exporters are now considering laying off workers.

“Assistance to displaced workers will be another welcome government intervention, with funds possibly coming from their local governments. Finally, it will be relevant and useful to divert or allot new funds to augment equipment, tools, medical personnel and facilities to support the response, recovery and rehabilitation phases of this crisis,” he added.

Most members, he said, are turning to the domestic market to compensate for lost business.

“There is clearly other work to be done. For example, it may not be the right time to look for raw material suppliers (other than those in China) considering the extensive coverage of the virus. But this is definitely a critical future step as we rebuild,” he said.

Because of the situation, the organization also postponed its 2nd Quarter General Membership Meeting set for April 14.

On Thursday, President Rodrigo R. Duterte announced that Metro Manila will be placed under the so-called “community quarantine” between March 15 and April 14 as confirmed Philippine cases of Covid-19 continue to rise.

The Trade department said the President’s directive does not cover business operations.

Goods are also free to move, according to Trade Secretary Ramon M. Lopez. — Arjay L. Balinbin

NCR residents warned against excessive food stockpiling

THE Department of Agriculture said Metro Manila’s population of around 14 million need not maintain more than their usual supplies of food as major commodities like rice are readily available.

Agriculture Secretary William D. Dar issued the advisory in a news conference after the government adopted a “community quarantine” policy for parts of the capital region affected by the coronavirus (Covid-19).

“Don’t stockpile too much food. There is enough food supply that you can buy during this time of health emergency,” Mr. Dar said.

Mr. Dar said the current rice inventory held by NFA warehouses nationwide is good for at least 80 days and will be further augmented by the current harvest, providing additional stock good for another two to three months.

He added that rice supply is more than enough to meet Metro Manila’s weekly demand of 26,241 metric tons (MT).

“Together with stocks (held by) the private sector and households, there is a 35-week rice supply, amounting to 929,358 MT, in Metro Manila that can last for at least nine months,” he said.

He said based on 2015 Philippine Statistics Authority (PSA) data, weekly demand in Metro Manila for vegetables and root crops was 5,000 MT, well below the expected weekly supply of 17,302 MT; for poultry and meat 7,934 MT, against supply of 11,074 MT;for fish 8,000 MT, against supply of 10,264 MT; for eggs 25 million pieces, against supply of 42.5 million pieces.

In addition, Mr. Dar said that the DA’s food resiliency action plan will help ensure equal distribution of goods.

The action plan will include the strategic positioning of basic food commodities around Metro Manila. The effort will be directed by Undersecretary Ariel T. Cayanan.

Mr. Dar said the entry of food products into Metro Manila will continue despite movement restrictions under the “community quarantine” scheme, adding that supplies will continue to come in as usual.

“All vehicles carrying agricultural goods, regardless of volume, will pass without interference,” Mr. Dar added.

However, Mr. Dar said that adjustments may be needed if the situation worsens, including special lanes for vehicles carrying agricultural goods.

Typical precautionary measures will be implemented on drivers carrying produce to Metro Manila such as temperature check.

Suggested retail prices (SRPs) for basic commodities will remain in force, he said. — Revin Mikhael D. Ochave

NEA collects P2.3-B in loan payments from co-ops in 2019

THE National Electrification Administration (NEA) said loan payments from electric cooperatives (ECs) in 2019 totaled P2.297 billion, beating the target by 15% and exceeding the 2018 total of P2.263 billion.

It said the result was propped up by some prepayment activity by ECs.

“The early payment of outstanding loans by some ECs amounting to P94.35 million and increase in advance payment made by ECs of P283 million contributed to the attainment of high collection efficiency,” NEA Finance Services Department Acting Director Milagros Robles said in a statement.

It said the largest payments were received from Occidental Mindoro Electric Cooperative, Inc. (OMECO), Nueva Ecija II Electric Cooperative, Inc. — Area 2 (NEECO II — Area 2), Misamis Oriental II Rural Electric Cooperative, Inc. (MORESCO II), Central Pangasinan Electric Cooperative, Inc. (CENPELCO), and First Laguna Electric Cooperative, Inc. (FLECO).

NEA is responsible for the electrification of rural communities, regulating 121 ECs.

Its lending programs include stand-by credit and short-term loans, which aid them in settling accounts.

The agency also offers 10-year calamity loans at 3.25% annual interest.

In February, the agency provided a total of P51.596 million in calamity loans to six power cooperatives in the MiMaRoPa, Bicol and Eastern Visayas regions to aid the rehabilitation of their distribution systems after typhoon Tisoy in December.

The agency estimated a P911.668-million-worth of damage and losses to 27 ECs in Luzon and Visayas resulting from the typhoon. — Adam J. Ang

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