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Philippine peso weakness 'seasonal' - Buenaventura |
MANILA (AFX-ASIA) - Central bank governor Rafael Buenaventura
said the peso's slight weakness versus the US dollar was "seasonal"
in nature, explaining that February is traditionally a weak period
for remittances from overseas Filipino workers and lower exports
during this time of the year.
Higher import bills related to previous increases in world oil
prices also contributed to increased demand for the US dollar, he
added.
"This is exacerbated by continuing political concerns about our
forthcoming election," Buenaventura said.
The peso closed at 56.100, near its lowest level for the day,
after trading between 55.98-56.105 on volume of 181.50 mln usd. It
closed 55.975 yesterday.
Some dealers said investors are particularly awaiting the
Supreme Court's decision on the disqualification case against
opposition presidential candidate Fernando Poe Jr.
A group of lawyers has asked the High Court to disqualify the
movie star on the grounds that he is not a natural-born citizen, and
is thus not allowed to run for the highest post of the land.
Investors fear the possibility of a mass uprising should this
happen, dealers said.
Dealers added the central bank's decision to keep benchmark
interest rates steady served as a go-signal for investors to resume
aggressive dollar-buying.
cecille.yap@afxasia.com
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Philippine central bank scraps forex rule on import payments
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MANILA (AFX-ASIA) - The central bank's monetary board has
scrapped the registration requirement for payment of imports with US
dollars bought from the banking system, the regulator's governor
Rafael Buenaventura said.
In particular, imports under documents against acceptance (D/A)
and open accounts (O/A) settled with dollars purchased from banks
and bank-affiliated foreign exchange corporations no longer need to
be registered with the central bank.
Importers will just have to report transactions to the central
bank for monitoring purposes, specifically for dollar movements for
foreign obligations and balance of payments data.
The central bank believes the measure will not put pressure on
the peso, which fell back to the 56 level against the dollar today.
Buenaventura said the measure is in response to the request of
the Bankers Association of the Philippines and Bank Administration
Institute of the Philippines for shorter processing period and
reduced costs for such types of imports.
"The shift from D/A-O/A registration to mere reporting should
facilitate import payments and put the Philippines on par with
neighbors that do not require such registration," he said.
Both importers and exporters using imported inputs will benefit
from the measure, he added.
afxmanila@afxasia.com
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Philippines issues 1.3 bln usd global bonds in swap, cash deal
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MANILA (AFX-ASIA) - The Philippine government said it has
completed a liability management exercise after issuing 1.3 bln usd
worth of global bonds due 2011, most of which were exchanged for
short-dated outstanding bonds maturing in 2006, 2008, 2009 as well
as so-called Brady bonds.
In a statement, the Department of Finance said it had also
raised 120 mln usd from the bond offer, although it said it had
received offers in excess of that amount.
The global bonds were issued at a coupon rate of 8.375 pct to
yield 8.465 pct.
"With the completion of this exercise, the (Philippines'
government) has achieved its objective of smoothening out its
liability profile and at the same time extending the average
maturity by 2.7 years," the government said.
The exercise helped reduce the outstanding debt level in 2006
by 323 mln usd, in 2008 by 252 mln, in 2009 by 356 mln, and the
remaining Brady bonds by 315 mln, it said.
Brady bonds were issued by the government in 1992 when it
restructured the country's foreign debt. While long-term in nature,
the Brady bonds were backed by US Treasury bills as collateral,
making them expensive for the government.
The exercise also enables the government to release
approximately 28 mln usd of US Treasuries.
"This liability-management exercise exceeded our expectations
and achieved all the objectives we have set out for this
transaction," National Treasurer Sergio Edeza said.
"We have received more offers on the exchange as well as on the
cash component but we decided to cap the new size to 1.3 bln usd in
line with our objective of keeping the outstanding amount to a
reasonable size through our liability curve," Edeza said.
Finance Secretary Juanita Amatong said the "very successful
transaction is again evidence that institutional investors continue
to be comfortable with the outlook on the Philippines."
"This also reflects our proactive effort in improving our
liability profile which will thus further strengthen the country's
financial position."
Citigroup,
Deutsche Bank and JP Morgan are the lead managers for the
transaction.
edelacruz@afxasia.com
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Philippine Equitable PCI Bank 2003 net profit up 69 pct, exceeds
target |
MANILA (AFX-ASIA) - Equitable PCI Bank reported 69 pct
year-on-year growth in its 2003 net profit to 1.23 bln pesos on the
back of strong retail banking growth and higher fee-based income.
It is the financial institution's highest profit since the
merger of Equitable Bank and PCI Bank in 1999.
"It is the broadest strength in the consumer sector that we've
seen for some time, and it bodes well for profits in 2004 and 2005,"
Equitable PCI Bank president and chief executive Rene Buenaventura
said.
Consumer loan growth offset sluggish loan demand among large
companies.
After exceeding the 20 pct profit growth it had forecast for
2003, Buenaventura said the bank is confident of sustaining its
"momentum" to produce annual earnings growth of "no less than this
target in the next few years."
"We will continue to concentrate services on the consumer
sector, especially after the elections. We expect business to
increase," Buenaventura said.
Also contributing to the profits for 2003 were a 20 pct rise in
low-cost deposits, an 8.1 pct growth in fee-based income to 3.79 bln
pesos and "improving" credit quality.
The bank reported a nonperforming (NPL) ratio of 14.4 pct as of
end-December. Its loan-loss coverage stood at 73 pct.
Equitable PCI Bank is the country's third largest lender and
has more than 4,000 branches nationwide.
(1 usd = 56.10 pesos)
cecille.yap@afxasia.com
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Philippine SEC seeks PSE timetable for additional share sale
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MANILA (AFX-ASIA) - The Securities and Exchange Commission
(SEC) wants the Philippine Stock Exchange (PSE) to set a timetable
for its full compliance with the 20 pct ownership limit for
member-brokers set under the Securities Regulation Code (SRC).
SEC chairwoman Lilia Bautista said the commission also wants to
know how the PSE will comply with the rule after having already sold
nearly 40 pct of its shares mostly to institutional investors.
The state-run Government Service Insurance System, PLDT
Beneficial Trust Fund, San Miguel Retirement Fund, Kim Eng
Investment Ltd and KE Strategic Pte Ltd have acquired 5.265 mln PSE
common shares at a discounted price of 119.50 pesos each.
"We appreciate the private placement made by institutional
investors to the PSE, but it is not a substantial compliance (with
the SRC rule). We want PSE to give us a timetable as to when they
can comply," Bautista told reporters.
The SEC wants the PSE to offer more shares either through an
initial public offering or another private placement.
Yesterday, PSE officials and its underwriter, ATR-Kim Eng
Capital Partners, said the exchange will sell more of its shares,
this time to foreign investors. They said a deal may be completed in
the next two to three days.
ATR-Kim Eng said it is in talks with some US and UK-based
investors for a possible share sale, which may involve 3.6 pct of
PSE.
Bautista said the SEC will consider PSE to be in "substantial
compliance" with the SRC if and when it has already sold at least 60
pct or a majority of its shareholdings to non-brokers.
She said the bourse has to make a public offering as provided
under a memorandum of agreement signed by the SEC and PSE last
December.
PSE's share price plunged 64 pesos or nearly 35 pct to 121
today following the sale of shares to institutional investors at a
huge discount.
It listed 9.2 mln of its shares on the local bourse at 100
pesos each in December as an initial step towards demutualization.
On listing day, the stock price rose to as high as 250 pesos.
(1 usd = 56.1 pesos)
afxmanila@afxasia.com
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Philippines' Equitable PCI Bank 2003 net profit up 69 pct, exceeds
target |
MANILA (AFX-ASIA) - Equitable PCI Bank reported 69 pct
year-on-year growth in its 2003 net profit to 1.23 bln pesos on the
back of strong retail banking growth and higher fee-based income.
It is the financial institution's highest profit since the
merger of Equitable Bank and PCI Bank in 1999.
"It is the broadest strength in the consumer sector that we've
seen for some time, and it bodes well for profits in 2004 and 2005,"
Equitable PCI Bank president and chief executive Rene Buenaventura
said.
Consumer loan growth offset sluggish loan demand among large
companies.
After exceeding the 20 pct profit growth it had forecast for
2003, Buenaventura said the bank is confident of sustaining its
"momentum" to produce annual earnings growth of "no less than this
target in the next few years."
(1 usd = 56.10 pesos)
cecille.yap@afxasia.com
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Asian rice industry in crisis on inadequate support - research
institute |
MANILA (AFX-ASIA) - Asia's rice industry is in crisis due to
inadequate support, driving farmers into penury and spurring mass
migration with potential adverse implications on regional security,
the International Rice Research Institute said here today.
"The Asian rice industry is in trouble," an IRRI statement
quoted its director-general, Ronald Cantrell, as saying.
"Not only is the rice industry in Asia facing a crisis in the
supply of such essential resources as land, labor and water, but,
most importantly of all, many nations are finding it difficult to
develop sustainable ways to provide decent livelihoods for rice
farmers and consumers."
Philippines-based IRRI said the stability of Asia, including
the "troubled nations of Indonesia and the Philippines, is
threatened on the continuing lack of development" in its most
important cereal crop.
Rice farming remains a poverty trap in many Asian nations,
mainly because of very small farm size and compounded by declining
support for public rice research, it added.
The institute said Asia's rice producers enjoyed annual yield
increases of 2.5 pct and production gains of more than 3.0 pct
between the early years of the Green Revolution and up to the early
1980s.
However, from the late 1980s until the late 1990s, the rate of
annual yield growth was nearly halved, and the rate of production
increase fell even further.
As stagnating yields push them deeper into poverty, "many rural
rice communities in Asia are growing increasingly restless," it
warned.
Poverty and a lack of opportunity "can foster instability.
Desperate people forced to leave home in search of work are
susceptible to extremism," it said, citing the case of one of Jemaah
Islamiyah (JI) militants, convicted of the Oct 2002 Bali bombings,
which killed more than 200.
While the case of the convict, who fled the village of
Tenggulun (in Indonesia) to seek work in Malaysia, where the JI
recruited him "is a worst-case scenario, such reports should not be
discounted," the IRRI statement said.
"A lack of opportunity in heavily agricultural Tenggulun has
forced 20 pct of its working-age population to leave in search of
employment -- a story repeated time and again throughout rural
Asia."
Cantrell said international support for public rice research
has been collapsing, with mainly Western donor nations taking aid
money elsewhere, including to Africa after having achieved "visible
success" in Asia.
"While IRRI still has some very committed donors, there is no
doubt the institute could do a lot more if it had more support," he
said.
Cantrell said new rice technologies the IRRI and other entities
developed have not reached ordinary farmers in many countries
because the extension systems for delivering them are chronically
under funded.
"Assuming there are 200 mln rice farmers in Asia, an investment
of just 0. 40 usd per farmer for each of the next 20 years would go
a long way toward ensuring that they can earn a decent sustainable
living, supplying poor consumers with plentiful supplies of
affordable, nutritious rice," he said.
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OUTLOOK - Philippines' PLDT 2003 net profit 9.0-13.0 bln pesos vs
3.1 bln |
---- by Cecille Yap ----
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT)
is expected to report full-year net profit of 9.0-13.0 bln pesos for
2003 - at least three times higher than its 2002 earnings - thanks
to the sustained robust performance of its wireless business,
analysts said.
If the forecasts come in as expected, PLDT's earnings would
increase by as much 319.35 pct over the previous year and may even
exceed company's profit forecasts of 9-10 bln pesos.
Analysts polled by AFX-Asia said the performance of PLDT's
wireless unit Smart Communications Inc is expected to be at its
strongest in the fourth quarter as phone usage surges and subscriber
take-up peaks during the Christmas holidays.
PLDT booked unaudited net profit of 5.8 bln pesos in the nine
months to September, up 58 pct year-on-year, despite provisions
related to job cuts and certain investments.
Without those non-recurring charges, PLDT's net profit during
the nine-month period would have stood at 11.3 bln pesos, 140 pct
higher than in the year-earlier period.
Smart and Talk 'N Text - the mobile phone brand of another PLDT
affiliate Pilipino Telephone Corp (Piltel) - ended 2003 with more
than 13 mln subscribers.
"Last year was a banner year for the telecom sector, and for
PLDT in particular. For this year, we will likely see this trend
continue as wireless communication becomes an even more relevant
medium during an election year," Accord Capital Ron Rodrigo said.
Rodrigo projects PLDT's net profit to reach 12.8-13.0 bln pesos
in 2003 and to 15.5 bln this year.
BPI Securities senior analyst Robert Cano said growth in the
subscriber base will likely continue this year as cellular firms
expand to operate in unserved and underserved rural areas.
However, it is too early to say whether subscriber take-up will
be as robust as last year, analysts said.
Smart's 4,000 cell sites now cover 80 pct of the country's
total population, or approximately 67 mln people nationwide.
ING Financial Markets, in a November study, said it sees the
competitive environment in the Philippine mobile market remaining
benign at least for the next 12 months.
Cano is forecasting PLDT will post 2003 net profit of 10.6 bln
pesos.
"One thing is for sure, PLDT's profitability comes from its
strong cash flow from operations," Westlink Global Equities research
head James Lago, who expects PLDT's net profit to have hit 9 bln
pesos, said.
Lago added PLDT's earnings goal of 10 bln pesos is "always
feasible," although he prefers to be more conservative as it may
have had to make further provisions in the last quarter of 2004.
Smart has continued to grow and at the same time protect its
pre-paid subscriber base through innovative marketing strategies
such as the lower over-the-air loads and recently, the "Pasa Load"
scheme, which allows subscribers to share their pre-paid loads by
using the spare capacity of fellow Smart subscribers.
"This is a sign that while they are quite optimistic of the
business, there is a slowing down of momentum," Accord's Rodrigo
said.
Cano added these strategies are intended "more to help (lower)
the churn instead of (improve profitability)."
Analysts said Smart's strong subscriber base growth was partly
due to lower churn rates, following the introduction in May last
year of the now widely available Smart Load, which offers
low-denomination over-the-air pre-paid re-loads.
More than 60 pct of Smart's pre-paid subscribers and 72 pct of
those of Talk 'N Text use the Smart Load to reload their accounts.
Meanwhile, PLDT's target price this year is seen reaching
1,200-1,300 pesos per share, from today's closing price of 940, on
the back of its sustained robust performance.
Dealers however said the much-awaited initial public offering
(IPO) of unit Smart could be a major worry among investors.
Under its congressional franchise, Smart is required to sell at
least 30 pct of its common shares to the public by Aug 2004, raising
concerns that lower earnings contributions from Smart could hurt
PLDT's profitability and share value.
However, PLDT president and chief executive officer Manuel
Pangilinan said Smart's IPO will likely raise around 600 mln usd
should PLDT offer a 30-pct block of the wireless unit. The proceeds,
he said, may be used to pare down the parent firm's debts to "a more
sustainable and agreeable level."
The PLDT group has total debts of 2.7 bln usd, with Smart
accounting for some 300 mln usd.
(1 usd = 56.04 pesos)
cecille.yap@afxasia.com
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Philippine cabinet committee approves 583 mln peso e-commerce
project |
MANILA (AFX-ASIA) - A cabinet committee has recently approved a
583-mln peso e-commerce project intended to speed up the cargo
clearance process in the Bureau of Customs and reduce opportunities
for corruption in the government.
The project is also expected to increase the agency's revenues,
the National Economic and Development Authority said.
The automated system for customs data management (ASYCUDA)
World project is a web-based version of customs automation system.
It allows to conduct transactions, from customs declaration to cargo
manifest and transit documents, through the Internet.
It is also designed to support the exchange of information
between countries and the sharing of information among government
agencies.
To be funded by a so-called E-Government Fund, the project is
expected to help the agency achieve its revenue targets through
improved collection efficiency and plugging of revenue leakages.
The customs bureau collects roughly 18 pct of the government's
revenues annually.
(1 usd = 56.06 pesos)
cecille.yap@afxasia.com
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Philippine SEC approves CADP spin-off of sugar business
|
MANILA (AFX-ASIA) - The Securities and Exchange Commission
(SEC) has approved CADP Group Corp's plan to spin-off its sugar
business to subsidiary Central Azucarera de la Carlota Inc (formerly
Jade Orient Sugar Corp).
CADP said the SEC has approved its unit's application for the
increase in its capital stock to 201 mln pesos from 1.0 mln.
No further details were available.
(1 usd = 56.06 pesos)
cecille.yap@afxasia.com
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Philippine Metro Alliance to lead acquisition of Bataan Polyethylene
Corp |
MANILA (AFX-ASIA) - Metro Alliance Holdings & Equities Corp
said it will acquire the debts of Bataan Polyethylene Corp (BPC) to
pave the way for the ownership and operation of the petrochemical
midstream facility.
Metro Alliance said it has designated Polymax Worldwide Ltd - a
company incorporated in the British Virgin Islands - as the
acquisition vehicle in the purchase of BPC's debt papers.
Metro Alliance said it is organizing a consortium of local and
foreign investors that will eventually operate the plant.
"(We are) the lead company in the project to acquire the
secured debt papers and other debts of BPC, exercise the option to
either foreclose on the plant or convert the acquired debt into
equity, and thereafter operate ... the facility," the company said.
Metro Alliance has full management control of Polymax, which
was set up on Aug 2003 mainly to serve as the vehicle that will
acquire BPC's debt papers.
(1 usd = 56.06 pesos)
cecille.yap@afxasia.com
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Philippines' Alaska 2003 net profit 499 mln pesos, up 14 pct
|
MANILA (AFX-ASIA) - Alaska Milk Corp reported a net profit of
499 mln pesos for 2003, up 14 pct or 60 mln pesos from 439 mln a
year earlier on the back of higher sales volume across all product
lines.
The milk manufacturer said revenues grew 9 pct to 4.34 bln
pesos in 2003 from 3.97 bln a year earlier.
"Liquid canned milk sales volume expanded at nearly
double-digit rates, helping to expand market share in the category.
In the meantime, the condensed-filled milk business continued to
enjoy brisk sales," Alaska said in a disclosure to the stock
exchange.
Moving forward, the company said its profit margins this year
will likely be tempered by the higher prices of skimmed milk powder
and additional costs as a result of a weaker peso.
Prices of skimmed milk powder peaked at 1,800-1,900 usd per
metric ton in the fourth quarter of last year, and are seen
remaining at "high levels" in the first half of 2003.
Alaska's cash position stood at 1.9 bln pesos as of
end-December.
The company said its powdered filled milk business continued to
grow despite the contraction in the powdered milk market last year.
Its newly-launched powdered high calcium milk product also boosted
growth in the powdered milk business.
Alaska shares were untraded after previously closing at 3.15
pesos apiece.
(1 usd = 56.06 pesos)
cecille.yap@afxasia.com
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| Manila
shares close marginally higher on further consolidation |
MANILA (AFX-ASIA) - Share prices closed marginally higher in a
mixed session on selective buying, while the market continues to
trade around the 1, 480-point key index level, dealers said.
The composite index closed up 1.49 points or 0.10 pct at
1,480.77 on volume of 152.05 mln shares worth 565.7 mln pesos. It
traded in a narrow range of 1,474.06 to 1,483.87.
In the broader market, losers slightly edged out gainers 22 to
19, while 48 stocks were unchanged.
Investors were seen positioning themselves in companies that
are expected to sustain positive earnings performances this year,
such as Pilipino Telephone Corp (Piltel) and Petron Corp.
Dealers said the market is awaiting the release of more 2003
financial results, including those of Philippine Long Distance
Telephone Co (PLDT).
"The market is waiting for new leads, such as more corporate
results, while it remains in consolidation," Westlink Global
Equities chairman Rommel Macapagal said.
"We may still move sideways early next week. Investors will
take their cue from the 2003 earnings releases," DA Market
Securities president Nestor Aguila said.
Top-traded PLDT closed flat at 940 pesos on 236,050 shares,
giving back gains made early in the session following a 0.45 usd
rise in its New York-listed American Depositary Receipts (ADRs) to
17.41 last night.
PLDT will release its 2003 results on Feb 19, which are widely
expected to show sustained strong gains from its wireless unit Smart
Communications Inc.
PLDT affiliate Piltel was up 0.24 at 1.58 on 51.05 mln shares.
Piltel expects to book net profit of 402.4 mln pesos this year,
after a projected net loss of 3.33 bln in 2003. It reported a net
loss of 21.8 bln pesos for 2002.
It sees its business being boosted by growth in its wireless
GSM subscriber base to 3.68 mln at the end of this year from 2.78
mln as of end-2003.
Some speculators have also not given up on the stock after
accumulating Piltel shares, on hopes it will merge with Smart
despite official denials.
Metrobank was up 1.00 at 26.50 on 1.4 mln shares.
Oil refiner Petron rose 0.10 to 3.55 on 9.6 mln shares.
The Philippine Stock Exchange (PSE) fell 64 to 121 on 100,610
shares after the bourse sold 5.265 mln of its shares to five
institutional investors at a discounted price of 119.50 pesos each.
The share sale was part of the exchange's demutualization
program.
San Miguel A was down 0.50 at 55, while San Miguel B, which is
available to foreign investors, rose 0.50 to 69.
The all-shares index was down 2.59 points at 946.38.
The commercial-industrial index rose 3.53 to 2,291.42.
Property fell 3.90 to 544.04, while mining advanced 25.47 to
1,607.15.
Oil was unchanged at 1.26.
Banking and financial service rose 3.34 to 438.38.
(1 usd = 56 pesos)
edelacruz@afxasia.com
|
| STOCK
ALERT - Philippine PSE down on shrs placement to institutional
investors |
MANILA (AFX-ASIA) - Philippine Stock
Exchange was sharply lower in late trade after 5.265 mln of its
shares were placed with five institutional investors at a
discounted price of 119.50 pesos apiece, dealers said.
The Securities and Exchange
Commission has approved the listing of the placement shares.
At 11.51 am, PSE was down 62 pesos,
or 33.5 pct, at 123 on volume of 52, 610 shares. The turnover was
boosted on cross sales.
"Investors have started buying
PSE shares at a discount. They feel now is the right time to get
into the stock after some investors were able to buy at a much
lower price," Accord Capital Equities analyst Ron Rodrigo
said.
Dealers said member-brokers may have
decided to sell their PSE shares to retail investors at a discount
this early on expectations that the price could drop further to
near the 119.50-peso selling level to the five institutional
investors.
The five are state-run pension fund
Government Service Insurance System (GSIS), PLDT Beneficial Trust
Fund, San Miguel Retirement Fund, Kim Eng Investment Ltd and KE
Strategic Pte Ltd.
The PSE will use proceeds of 629 mln
pesos from the private placement to develop its infrastructure,
fortify its working capital and address other concerns that
benefit shareholders.
PSE listed 9.2 mln of its shares on
the local bourse in Dec 2003 as an initial step towards
demutualization.
(1 usd = 56.06 pesos)
cecille.yap@afxasia.com
|
| Philippine
Stock Exchange to invest 200 mln pesos to improve technology |
MANILA (AFX-ASIA) - The Philippine
Stock Exchange (PSE) said it will invest 200 mln pesos in
technology improvement.
The funds will come from the 629-mln
peso proceeds of the sale to five institutional investors of PSE
shares, which account for 36.4 pct of its common shares. The
shares were sold at 119.50 pesos each.
In a statement, the PSE said another
200 mln pesos will be lend to the exchange's guarantee fund, while
the balance is to be spent for other projects subject to approval
by the board.
The PSE, now trading on the local
bourse, announced yesterday its plan to sell more shares,
accounting for 3.6 pct of its common shares, this time to foreign
investors as part of its demutualization program.
The Securities Regulation Code (SRC)
capped brokers' and financial institutions' ownership of the PSE
at 20 pct.
At 10.50 am, PSE was down 35 pesos
at 150 on 50,110 shares, largely on cross sales.
(1 usd = 56 pesos)
edelacruz@afxasia.com
|
| Philippine
SEC approves Globe Telecom's 3-bln peso bond offering |
MANILA (AFX-ASIA) - The Securities
and Exchange Commission (SEC) has approved Globe Telecom Inc's
3-bln peso bond offering, the company said.
"Globe Telecom has received
notice that the registration of the 3 bln pesos worth of bonds has
been declared effective by the SEC through the issuance of an
order of registration and a certificate of permit to offer
securities for sale," the company told the stock exchange in
a disclosure.
The offering comprises 256.55 mln
pesos worth of three-year floating rate bonds, 743.45 mln pesos
worth of five-year and one-day floating rate bonds and 2 bln pesos
worth of five-year and one-day fixed-rate bonds.
The planned bond offer, which was
increased to 3.0 bln pesos from 2.7 bln previously, received a PRS
Aaa rating from Philippine Rating Services Corp, the local
affiliate of Standard & Poor's.
The rating implies that "the
issue has the smallest degree of investment risk" and that
"interest payments are protected by a large or by an
exceptionally stable margin, and principal is secured."
Proceeds from the offering will be
used to refinance a portion of a 220 mln usd senior notes issue
due in 2009.
(1 usd = 56.034 pesos)
cecille.yap@afxasia.com
|
| STOCK
ALERT - Philippines' Piltel firmer on expected financial
turnaround |
MANILA (AFX-ASIA) - Pilipino
Telephone Corp (Piltel) firmed further in mid-session on
expectations the company will swing to profits this year following
heavy losses in recent years, dealers said.
Piltel was up 0.04 peso at 1.38 on
15.3 mln shares.
Piltel, an affiliate of Philippine
Long Distance Telephone Co, expects to book a net profit of 402.4
mln pesos this year, after a projected net loss of 3.33 bln in
2003. It reported a net loss of 21.8 bln pesos for 2002.
It sees gains being boosted by
expected growth in its wireless GSM subscriber base to 3.68 mln at
the end of this year from 2.78 mln as of end-2003.
Some speculators have also not given
up on the stock after accumulating Piltel shares on hopes it will
merge with PLDT wireless unit Smart Communications Inc despite
official denials, dealers said.
(1 usd = 56 pesos)
edelacruz@afxasia.com
|
| Forex
- Philippine peso slightly weaker after central bank keeps rates
steady |
MANILA (AFX-ASIA) - The peso was
slightly weaker in early trade as aggressive dollar-buying resumed
a day after the central bank decided to keep benchmark interest
rates steady, dealers said.
The peso has so far hit a low of
56.09 in early morning trade after opening at 55.98 to the US
dollar and averaging 56.015 on 56.5 mln usd as of 9.53 am. It
closed at 55.975 yesterday.
"The central bank's decision
not to further tighten monetary policy served as a go signal for
investors. This early, we're seeing huge demand among corporate
clients," a local bank dealer said.
The central bank's monetary board
yesterday voted to leave the regulator's policy interest rates
unchanged at 6.750 pct for overnight borrowing and 9.000 pct for
overnight lending, saying its current stance is still supportive
of the government's inflation and economic growth targets.
However, the central bank warned it
may still consider a "further active policy measure" to
prevent a sharp and sustained fall of the peso against the US
dollar.
The decision followed the surprising
200 basis points increase in banks' liquidity reserve requirement
the central bank announced last week to siphon excess liquidity to
prevent speculation against the peso.
Another dealer said political
mudslinging connected to the May general elections may have
started to weigh down on the market and the political noise will
intensify further as the election nears.
They expect the peso to trade within
the 55.90-56.10 for the rest of the session.
cecille.yap@afxasia.com
|
| STOCK
ALERT -Philippines' PLDT firmer early on ADR gain ahead of 2003
results |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone (PLDT) was higher in early trade on buying
after overnight gains in its American Depositary Receipts (ADR)
ahead of the release of its 2003 financial results, dealers said.
PLDT was top-traded so far and up 15
pesos at 955 on 17,570 shares.
Its New York-listed ADRs rose 0.45
usd to 17.41 last night.
PLDT's 2003 results, to be announced
on Feb 19, are expected to be impressive thanks to strong gains in
the wireless business.
(1 usd = 56 pesos)
edelacruz@afxasia.com
|
| Philippine
Bank of Communications may raise 3-4 bln pesos from asset sale |
MANILA (AFX-ASIA) - Philippine Bank
of Communications (PBCom) said it estimates it may be able to
raise 3-4 bln pesos from the sale of its bad assets.
"The definite amount will be
determined after an actual valuation of the assets is conducted
and an offer price for the said assets is submitted by a Special
Purpose Vehicle (SPV)," the bank said in a statement to the
stock exchange.
PBCom's major shareholders have also
injected a little over 3 bln pesos in fresh capital into the bank.
The capital infusion has already been deposited with the bank, to
be converted into capital upon completion of the documentation
process, it said.
The bank was reported earlier to be
in talks with the Philippine Deposit Insurance Corp (PDIC) for
financial assistance.
The Philippine Daily Inquirer had
reported that the state-run PDIC had agreed to lend 7.6 bln pesos
to PBCom at an annual interest rate of 1.0 pct over a 10-year
period.
The report, citing unnamed sources,
said the 7.6-bln pesos will be placed by the bank in government
securities and pledged as collateral to the insurance firm. The
net interest income, excluding taxes and the 1.0 pct interest
payment, will accrue to PBCom as income assistance.
The loan will reportedly entitle
PDIC to a few seats on the bank's board.
PBCom shareholders, in a recent
special meeting, approved the increase in bank board seats to 15
from 12.
The bank booked a nine months to
Sept 2003 net loss of 85.35 mln pesos against a net profit of
281.8 mln pesos a year earlier.
(1 usd = 55.975 pesos)
edelacruz@afxasia.com
|
| Philippines'
UCPB plans to sell stakes in four oil mills - report |
MANILA (AFX-ASIA) - United Coconut
Planters Bank (UCPB) plans to sell its equity in four oil mills,
which it expects to yield revenues of 5-6 bln pesos, BusinessWorld
newspaper quoted bank president Jose Querubin as saying.
The sale will need approval from the
Philippine Deposit Insurance Corp and the Presidential Commission
on Good Government, who are represented in the UCPB board, the
report said.
The four oil mills, owned by UCPB
under the name of the Coconut Investment Industry Fund, reportedly
also own shares in food and beverage conglomerate San Miguel Corp.
BusinessWorld identified the firms
as the Legaspi Oil Company, San Pablo Manufacturing Corp, Southern
Luzon Oil Mills, and Granexport Manufacturing Corp.
Querubin said UCPB is trying to
boost its capital to improve its capital adequacy ratio.
(1 usd = 55.975 pesos)
edelacruz@afxasia.com
|
| Manila
shares outlook - Mixed to higher on further consolidation |
MANILA (AFX-ASIA) - Share prices are
expected to open mixed to higher on positioning ahead of the
release of more corporate earnings results, but the market will
continue to consolidate, dealers said.
The composite index closed yesterday
up a modest 2.24 points or 0.15 pct at 1,479.28.
"Investors are likely to
maintain their short-term outlook given the political uncertainty
due to the upcoming elections in May," BPI Securities said in
its daily note.
"We feel that investors will
take market corrections as an opportunity to accumulate as they
focus on the positive earnings outlook for select sectors (such as
telecommunications and power)."
Philippine Long Distance Telephone
is scheduled to release its 2003 results on Feb 19.
The market may consolidate within
the 1,400 to 1,500 range as investors are likely to take their cue
from the 2003 earnings releases within the next two weeks, BPI
said.
edelacruz@afxasia.com
|
| Philippines
Jan net portfolio inflows 47.8 mln usd, up 141 pct yr-on-yr |
MANILA (AFX-ASIA) - Portfolio
investments recorded a January net inflow of 47.8 mln usd, up 141
pct year-on-year, central bank data show.
The data, pooled from four banks
acting as custodians for the investments, shows total inflows of
206.6 mln usd against outflows of 158.8 mln.
The central bank expects minimal
capital inflows in the first half of 2004 as investors are likely
to have adopted a wait-and-see stance until after the May 10
presidential elections.
edelacruz@afxasia.com
|
|
Singapore ST Engineering unit to supply 12 mln usd helicopters to
Philippines |
SINGAPORE (AFX-ASIA) - Defense contractor ST Engineering unit
ST Aerospace said it has secured a 12 mln usd contract to supply 20
refurbished UH-1H helicopters to the Philippine Air Force.
The helicopters come with an integrated logistics package.
"The (deal) involves procurement and refurbishment within a
year," ST Aerospace said.
(1 usd = 1.69 sgd; 55.95 pesos)
singapore@afxasia.com
|
|
Philippines 2003 overseas workers' remittances up 6.3 pct
|
MANILA (AFX-ASIA) - Remittances from overseas Filipino workers
(OFW) in 2003 rose 6.3 pct to 7.6 bln usd from 7.2 bln in the
previous year, the central bank reported.
For 2004, OFW remittances are projected to rise by 3.0 pct to
7.8 bln usd.
"The growth in remittances for 2003 resulted from the increase
in the deployment of land-based workers with higher compensation
than other skilled workers, as well as sea-based workers," central
bank governor Rafael Buenaventura said.
The improvement was achieved despite a 4.7 pct contraction in
the total number of deployed land-based workers to 650,350. The
number of sea-based workers increased 2.4 pct to 214,694 from 2002.
OFW remittances account for roughly 16 pct of the country's
total current account receipts and 10 pct of gross domestic product.
The bulk of the remittances comes from Filipino workers in the
United States, Saudi Arabia, Hong Kong, Japan, Singapore and the
United Arab Emirates.
cecille.yap@afxasia.com
|
|
Philippine Stock Exchange to sell shares to foreign investors -
underwriter |
MANILA (AFX-ASIA) - The Philippine Stock Exchange (PSE) will
sell more of its shares, this time to foreign investors, underwriter
ATR-Kim Eng Capital Partners said.
The PSE has accepted subscription bids from five institutional
investors for 5.265 mln shares and raised 629 mln pesos from private
placements.
The five investors are pension fund Government Service
Insurance System, PLDT Beneficial Trust Fund, San Miguel Retirement
Fund, Kim Eng Investment Ltd and KE Strategic Pte Ltd.
ATR-Kim Eng Capital Partners Inc president and chief executive
officer Manuel Tordesillas said the sale of PSE shares to foreign
investors will be completed soon.
It may be in the next two to three days, PSE officials said.
The PSE may issue either new shares or sell to foreign
investors some of those already floated in the market, Tordesillas
said at a news briefing.
The shares sale to foreign investors may generate returns of
around 104 mln pesos, he said.
Tordesillas said ATR-Kim Eng is now in discussions with US and
British investors to sell PSE shares.
The shares account for the remaining 3.6 pct of PSE common
shares it has to sell to non-brokers to comply with its mandated
demutualization.
The PSE sold its shares to institutional investors at 119.50
pesos each, which the Securities and Exchange Commission describes
as "reasonable", but below the market level. The shares represent
36.4 pct of the total.
The exchange listed 9.2 mln of its shares on the local bourse
in Dec 2003 as an initial step towards demutualization.
The stock was not traded today after closing at 185 pesos
yesterday.
The Securities Regulation Code (SRC) puts a 20 pct cap on
brokers' and financial institutions' ownership of the PSE.
The PSE said it will use proceeds from the share sale to
develop its infrastructure, beef up working capital and "address
other concerns that benefit the shareholders."
PSE chairwoman Alicia Arroyo said the sale of shares to
institutional investors is a "substantial compliance" with the SRC
and will pave the way for the PSE's full demutualization.
"The real requirement is 80 pct, but we'll be doing it in
phases, as the market improves," she said.
(1 usd = 55.975 pesos)
edelacruz@afxasia.com
|
In a statement, however, the central bank said it may still
consider a "further active policy measure" to prevent a sharp and
sustained fall of the peso against the US dollar, as such a scenario
may bring inflationary pressures.
"The decision to maintain the monetary policy setting reflects
the monetary board's belief that the current monetary policy stance
is appropriately supportive of the price stability objective and is
consistent with the need to ensure sufficient liquidity to sustain
domestic demand," the central bank said.
However, it said, "in the future, the monetary authorities may
consider a further active policy measure to avoid the adverse
inflationary implications of a sharp and sustained depreciation of
the peso."
Today's decision follows the surprising 200 basis points
increase in banks' liquidity reserve requirement the central
announced last week to siphon excess liquidity to prevent
speculation against the peso.
After trading relatively stable below 56 levels since the
reserve hike announcement, the peso today closed weaker at 55.975 to
the US dollar, compared to yesterday's finish of 55.905. It traded
between 55.880 and 55.980 on volume of 128 mln usd.
Analyst see the central bank's policy tightening as preventing
the peso from falling further after hitting an all-time low of
56.220 to the dollar on Jan 29 on heightened political uncertainties
ahead of the May 10 presidential elections.
At a news briefing, central bank governor Rafael Buenaventura
attributed the peso's fall today to weak regional currencies and
corporate dollar demand.
"Nothing unusual at this point," he said, noting that the peso
is just range bound.
He said the monetary authorities "are always watching threats
of inflation."
However, the monetary board will want to see first the effects
of last week's reserve hike on the currency market before making any
further moves, he said.
"The preemptive action of the monetary board has to be allowed
to work first," Buenaventura said.
Asked what possible measures the central bank may take if
pressure on the peso builds again, Buenaventura said a further
reserve hike is one of them.
"Or we could do other things, but I prefer not to discuss it.
Why would I translate my next move to the market," he said.
afxmanila@afxasia.com
|
|
BIRD FLU - Philippines to gain little from poultry exports amid
scare - Neri |
MANILA (AFX-ASIA) - The Philippine economy is not expected to
make significant gains from its planned exports of local chickens to
Asian countries hit by the avian flu virus, Economic Planning
Secretary Romulo Neri said.
He said the country's poultry exports will be limited because
of supply constraints.
"It could result in a temporary spike in exports but even then,
even if there is that big opportunity, the question is -- can we
supply (other Asian countries) ? How flexible is our own production
system?" Neri told reporters.
Philippine agriculture and trade officials have announced plans
to export chickens for the first time to Japan and to other Asian
countries.
The government is now facilitating talks between local chicken
integrators, such as San Miguel Corp and RFM Corp, and trading
houses in Japan for possible shipments of chicken to Japan, which
has banned chickens from countries that have been hit by bird flu.
Neri said supply constraints lie in the many years required for
a businessman to go on a commercial full-scale production, and in
the production of corn for chicken feeds.
Besides, he said the sustainability of such economic activity
is uncertain.
"I guess we can export chicken as long as the bird flu scare is
still around but once it's gone, then it stops," Neri said.
afxmanila@afxasia.com
|
|
Philippines targets to drill 51 oil, gas wells in next 10 years
|
MANILA (AFX-ASIA) - The government is looking for investors
interested in exploring commercial quantities of oil and gas in at
least 51 onshore and offshore sites in the next 10 years, the
Department of Energy said.
For this year alone, energy undersecretary Eduardo Manalac said
at least five wells are ready for drilling.
"We are targeting to sign at least four to five oil and gas
exploration contracts each year starting this year up to 2014," he
said.
"This is an ambitious target but we continue to encourage
investors to take a look at the potential exploration areas in the
country."
Manalac said some investors are now looking at potential
exploration areas in northwest Palawan, Sulu Sea, northern Cebu and
central Luzon.
The Department of Energy recently awarded a 4 mln usd drilling
contract to Singapore-based Gas to Grid Pte Ltd (G2G), the second
petroleum service contract (SC) to be signed this year.
The seven-year SC covers 2,415 square meters of onshore
development in the central Cebu areas within the Visayan petroleum
basin.
The signing with G2G followed the award of a 4.6-mln usd SC to
Premier Oil Philippines BV, which covers the exploration of Ragay
Gulf in the Bicol region and parts of the Bondoc Peninsula in Quezon
province.
The government has also announced a joint venture between
Malaysia's Petronas Carigali Overseas Sdn Bhd and the state-owned
Philippine National Oil Co, through its unit PNOC Exploration Corp,
covering a 15-18 mln usd exploration project in Mindoro.
edelacruz@afxasia.com
|
|
Philippines' Globe 3 bln peso bond offer rated 'PRS Aaa' -
PhilRatings |
MANILA (AFX-ASIA) - Standard & Poor's affiliate Philippine
Rating Services Corp (PhilRatings) said it is maintaining its "PRS
Aaa" rating on Globe Telecom Inc's planned bond offering.
Globe has increased the size of the offering to 3 bln pesos
from 2.7 bln.
PhilRatings said the rating implies that "the issue has the
smallest degree of investment risk."
"Interest payments are protected by a large or by an
exceptionally stable margin, and principal is secured," it said.
PhilRatings noted that Globe continues to maintain its strong
position in a fast-growing mobile phone market.
Globe's wireless subscribers totaled 8.9 mln as of end-2003, up
35 pct from the previous year.
It has drawn up a capital expenditure program of 350 mln usd
for this year, with a focus on increasing wireless coverage.
Globe, in which the Philippines' Ayala Corp and Singapore
Telecom both have substantial stakes, booked 2003 net profit of 10.3
bln pesos, 50 pct up from the previous year.
Its cash balance as of end-2003 amounted to 15.0 bln pesos,
while free cash flow stood at 13.3 bln.
"Going forward, the company is expected to enjoy ample
financial flexibility, given its strong ability to generate cash
internally and its favorable debt profile, where maturity is
well-spread over the next five years," PhilRatings said.
(1 usd = 55.95 pesos)
edelacruz@afxasia.com
|
|
Philippine Savings Bank expects net profit to rise 20 pct in 2004
|
MANILA (AFX-ASIA) - Philippine Savings Bank (PSBank) said it
expects net profit to grow 20 pct this year from last year's unaudited
403.6 mln pesos thanks to aggressive product offering and penetration
of the consumer market.
Last year's net profit rose 33 pct from 2002, supported by
marketing strategies focused on the retail consumer market and
aggressive selling.
PSBank is the thrift unit of Metropolitan Bank Trust Co, the
country's largest bank.
At end-2003, PSBank's non-performing loans accounted for 5.7 pct
of total loans, down from 7.8 pct at end-2002.
(1 usd = 55.95 pesos)
edelacruz@afxasia.com
|
|
Philippines' Globe increases size of peso bond offering to 3 bln pesos
|
MANILA (AFX-ASIA) - Globe Telecom Inc said it has increased the
size of its peso bond offering to 3 bln pesos from 2.7 bln.
The offering comprises 256.55 mln pesos worth of three-year
floating rate bonds, 743.45 mln pesos worth of five-year and one-day
floating rate bonds and 2 bln pesos worth of five-year and one-day
fixed-rate bonds.
In a statement to the stock exchange, Globe said it is still
waiting for the Securities and Exchange Commission to register the
bonds.
It gave no other details of the offering.
The company said it will use the proceeds from the offering to
refinance a portion of a 220 mln usd senior notes issue, due in 2009.
(1 usd = 55.95 pesos)
edelacruz@afxasia.com
|
|
Manila shares close slightly firmer on selective buying |
MANILA (AFX-ASIA) - Share prices closed a touch higher on
selective buying in thin trade as the market remained in consolidation
phase, dealers said.
The composite index closed up 2.24 points, or 0.15 pct, at
1,479.28 on volume of 212.09 mln shares valued at 335.98 mln pesos. It
traded between 1, 472.30 and 1,482.77.
In the broader market, gainers led losers 27 to 22, while 36
stocks were unchanged.
Buying interest was limited to a few second-line stocks, such as
Petron Corp, while modest gains in Philippine Long Distance Telephone
Co also gave the market some support.
The market's upside was capped on the possible removal of the
Philippines from the list of permissible investment sites for US
pension fund California Public Employees' Retirement System (CalPERS),
dealers said.
Wall Street's overnight gains also provided a positive backdrop,
they added.
CalPERS' consultant, Wilshire Consulting, gave the Philippines
low scores in its latest review of the country's conditions,
government officials said.
It is the third consecutive year that the Philippines has
received poor scores from Wilshire.
Last year, CalPERS gave the country a one-year "cure period" to
correct any supposed deficiencies in its system to qualify permanently
as an investment site.
Wilshire had given the country low scores in areas of market
practises and business conduct. The government argued that the data
Wilshire used was inaccurate.
The CalPERS board will meet on Tuesday to discuss Wilshire's
recommendation.
"The market is still in consolidation stage and I don't think the
possible CalPERS's pullout should be a major concern since it has only
a few million dollars of investment in the country," Regina Capital
Development Corp analyst Gomer Tan said.
"Investors picked second-liners, such as Petron, Benpres, and
Megaworld as there has been no major positive news to spur interest in
major stocks," Accord Capital Equities analyst Lawrence de Leon said.
He said, however, that a possible CalPERS pullout may serve as a
signal for other foreign players to stay out of the Philippines.
"It may have a dampening effect as some foreign investors may
take that into consideration. That's another reason to get out of the
Philippines, in addition to the political uncertainty as the May 10
elections draw near," he said.
Top-traded Petron was up 0.25 peso at 3.45 on volume of 17.09 mln
shares with support from foreign funds expecting a dividend
declaration.
Dealers added that the oil refiner may also reap gains after
recent oil price increases, even as crude costs in the world market
begin to soften.
PLDT rose 5.00 to 940 ahead of the announcement of its widely
expected impressive 2003 results next week.
Bank of the Philippine Islands was down 0.50 at 45.
Benpres Holdings advanced 0.05 to 0.64 on 37.3 mln shares.
Ayala Corp fell 0.10 to 5.80, while property unit Ayala Land rose
0.10 to 5.90.
PLDT affiliate Pilipino Telephone was up 0.04 at 1.34.
First Philippine Holdings was up 0.50 at 23.75.
Megaworld was up 0.02 at 1.08 on 9.8 mln shares.
The all-shares index was up 5.54 points at 948.97.
The commercial-industrial index advanced 6.44 to 2,287.89.
Property rose 5.48 at 547.94, while mining gained 37.68 to
1,581.68.
Oil was unchanged at 1.26.
Banking and financial services fell 4.23 to 435.04.
(1 usd = 55.95 pesos)
edelacruz@afxasia.com
|
|
Movie-star candidate challenges Philippine's Arroyo in her own
backyard |
---- by Jason Gutierrez ----
GUAGUA, Philippines (AFX-ASIA) - Movie star presidential
candidate Fernando Poe was mobbed by large crowds today as his
showbiz-fuelled election bandwagon rolled into the home province of
incumbent Philippines leader Gloria Arroyo.
Poe, 64, flew by helicopter to San Fernando, capital of Pampanga
province north of Manila to begin a motorcade that wound through
several towns on its way to Arroyo's hometown of Lubao in a direct
challenge to Arroyo.
The action star, widely regarded as a Filipino John Wayne, was
greeted warmly in San Fernando where fans mobbed him and loudspeakers
blared political jingles.
The reception drew to a fever-pitch as Poe, wearing a signature
yellow vest and flanked by his vice-presidential running mate, Loren
Legarda, came closer to Lubao, aboard the back of a flatbed truck.
Thousands of residents waited on the roadside in sweltering
conditions for a glimpse of their celluloid hero accompanied by his
his senatorial candidates and local movie heart-throb Richard Gomez.
Hundreds of people grabbed at Poe and Legarda, a prominent
broadcaster and senator, just to get a brief handshake.
"It touches the heart because we did not think there would be
this many meeting us," said Poe, better known by his acronym, "FPJ"
for Fernando Poe Junior.
The motorcade of dozens of vehicles snarled traffic for
kilometers but drivers of buses and private cars cheerfully honked
their horns for Poe and flashed his signature gesture, a raised index
finger indicating the number one.
One man in a government vehicle gave the FPJ gesture, saying he
wasn't afraid to show his sentiment, "even if I get fired."
At one bridge, a billboard heralding Arroyo's infrastructure
projects declared "GMA (Gloria M. Arroyo) cares" but the children and
women standing in front of the sign were oblivious to this as they
chanted "FPJ, FPJ."
One car defiantly brandished a poster of Arroyo. But it was
ignored by the partisan supporters of Poe.
After a movie career of 50 years playing soft-spoken heroes who
shoot and punch villains into submission, Poe remains hugely popular
in this country.
Surveys show he is the front runner, ahead of Arroyo, in the race
for the May 10 presidential election despite little formal education
and zero experience in public service.
However his inexperience and his reluctance to lay out his
economic platform has worried the business community, causing the
local peso and the stock market to tumble sharply in recent weeks.
The fear is that an FPJ presidency would be similar to the
disastrous administration of another top movie star, Joseph Estrada,
who was elected in 1998 but was ousted from office by a
military-backed popular uprising in 2001 over a massive corruption
scandal.
Estrada, now in detention while facing graft charges, played a
crucial role in getting his close friend, Poe, to run and many of
Estrada's old backers are now aligned with Poe.
|
|
Manila shares slightly firmer late morning as market consolidates
|
MANILA (AFX-ASIA) - Share prices were slightly higher on
selective buying in late-morning thin trade, with investors staying on
the sidelines as the market remains in consolidation phase, dealers
said.
They said buying-interest was likely capped by the possible
removal of the Philippines from the list of permissible investment
sites for pension fund California Public Employees' Retirement
System's (CalPERS).
But they said some investors seem to be unaffected by this
possibility since CalPERS's exposure to the Philippines has been
limited to no more than 20 mln usd.
Wall Street's overnight gains also provided a positive backdrop,
they added.
At 10.59 am, the composite index was up 4.27 points or 0.29 pct
at 1,481. 31 on volume of 98.29 mln shares valued at 183.9 mln pesos.
It has traded between 1,472.30 and 1,482.77 so far.
In the broader market, gainers led losers 19 to 12, while 27
stocks were unchanged.
"The market is still in consolidation stage. And I don't think
the possible CalPERS's pullout should be a major concern since it has
only a few million dollars of investment in the country," Regina
Capital Development Corp analyst Gomer Tan said.
CalPERS' consultant Wilshire Consulting gave the Philippines low
scores in its latest review of the country's conditions, raising the
possibility of the country being removed from the US pension fund's
list of permissible investment sites, finance and central bank
officials said.
It is the third consecutive year that the country received poor
scores from Wilshire, after CalPERS last year gave the Philippines a
one-year "cure period" to correct any supposed deficiencies in its
system to be able qualify permanently as an investment site.
Wilshire had given the country low scores in areas of market
practices and business conduct. The government argued that the data
used by Wilshire was inaccurate.
The CalPERS board will meet on Tuesday (Feb 17) to discuss
Willshire's recommendations.
Petron Corp was top-traded so far and up 0.30 peso or 9.37 pct at
3.50 on 13.1 mln shares, on interest from foreign funds expecting a
cash dividend declaration.
Dealers added the oil refiner may also reap gains after the
recent oil price increases, even as crude costs in the world market
are beginning to soften.
Benpres Holdings Corp was up 0.05 peso or 8.47 pct at 0.64 on
28.55 mln shares.
Philippine Long Distance Telephone Co was up 5.00 at 940.
(1 usd = 55.95 pesos)
edelacruz@afxasia.com
|
|
Philippine SEC approves PSE application to list 5.265 mln shares
|
MANILA (AFX-ASIA) - The Securities and Exchange Commission has
approved the Philippine Stock Exchange's application to list 5.265 mln
shares at the price of 119.50 pesos each.
The shares represent the private placement to five institutional
investors in the stock exchange. These investors include state-run
pension fund Government Service Insurance System (GSIS), PLDT
Beneficial Trust Fund, San Miguel Retirement Fund, Kim Eng Investment
Ltd and KE Strategic Pte Ltd.
"The commission resolved to approve the said listing application
provided that the shares approved for listing shall be deemed listed
on the PSE trading board only upon payment of the appropriate fees,"
SEC director Jose Aquino told the stock exchange in a letter.
The PSE will use proceeds from the private placement amounting to
629 mln pesos to develop its infrastructure, fortify its working
capital and address other concerns that benefit shareholders.
A group of PSE shareholders earlier asked the exchange's board to
suspend the plan to sell more of its shares through a private
placement, saying the move requires prior approval from them.
PSE listed 9.2 mln of its shares on the local bourse in Dec 2003
as an initial step towards demutualization.
As of 9.41 am, PSE was untraded after previously closing at
185.00.
(1 usd = 55.88 pesos)
cecille.yap@afxasia.com |
|
Manila shares outlook - Mixed on CalPERS lead, Wall Street gains
|
MANILA (AFX-ASIA) - Share prices are expected to open mixed as
the possible removal of the Philippines from the list of permissible
investment sites for pension fund California Public Employees'
Retirement System's (CalPERS) is likely to undermine sentiment,
dealers said.
Wall Street's overnight gains, however, provide a positive
backdrop, they added.
Yesterday, the composite index closed down 13.17 points or 0.88
pct at 1, 477.04.
"We may see a mixed session today as the CalPERS news may spur a
further market correction and consolidation. But investors may opt to
ignore that development and pick stocks that are not yet at overbought
levels following gains on Wall Street last night," Accord Capital
Equities research consultant Ron Rodrigo said.
CalPERS' consultant Wilshire Consulting gave the Philippines low
scores in its latest review of the country's conditions, raising the
possibility of the country being removed from the US pension fund's
list of permissible investment sites, finance and central bank
officials said.
It is the third consecutive year that the country received poor
scores from Wilshire, after CalPERS last year gave the Philippines a
one-year "cure period" to correct any supposed deficiencies in its
system to be able qualify permanently as an investment site.
Wilshire had given the country low scores in areas of market
practices and business conduct. The government argued that the data
used by Wilshire was inaccurate.
Rodrigo said pre-election political uncertainties also weigh on
sentiment.
He said the market could move in a tight range of "plus or minus
10 points."
edelacruz@afxasia.com
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Mazda
re-enters Philippine market through Ford |
MANILA (AFX-ASIA) - Mazda Motor Corp of Japan has re-entered the
Philippine market through Ford Group Philippines, and is looking to
secure a 2 pct share of the domestic car market this year.
The re-launch of Mazda Philippines is part of the 50-mln usd
investment announced last year by Ford, a major shareholder of the
Japanese car firm.
Mazda Philippines managing director Dave Macasadia said the
company will launch at least four models this year.
afxmanila@afxasia.com
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Philippines Jan motor vehicle sales down 5.3 pct yr-on-yr
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MANILA (AFX-ASIA) - Motor vehicle sales fell 5.3 pct year-on-year
in January to 6,518 units, the Chamber of Automotive Manufacturers of
the Philippines and the Truck Manufacturers Association said.
They attributed the decline to the seasonal drop in sales of
commercial vehicles after the Christmas and New Year holidays.
Commercial vehicle sales, which accounted for more than half of
overall sales, dropped to 4,090 units last month from 5,045 in the
year-earlier month.
Passenger car sales, meanwhile, rose to 2,428 units from 1,835 a
year ago.
edelacruz@afxasia.com
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Philippines gets poor score from CalPERS consultant for third
consecutive year |
MANILA (AFX-ASIA) - The Philippines scored poorly for a third
straight year in the latest assessment by California Public Employees'
Retirement System's (CalPERS) consultant Wilshire Consulting, raising
the possibility of the country being removed from the US pension
fund's list of permissible investment sites, finance and central bank
officials said.
The Philippines would have passed the test had Wilshire agreed to
correct the grading system, according to Corazon Guidote, executive
director of the government's Investor Relations Office.
The CalPERS board will meet on Feb 17 to discuss Wilshire's
recommendations.
Wilshire gave the Philippines a total score of 1.86, an
improvement from last year's 1.46 but below the cut-off score of 2.0
for qualified investments sites for CalPERS.
In its report to CalPERS, Wilshire cited the country's failure to
be removed from the Paris-based Financial Action Task Force's
blacklist of countries deemed to be uncooperative in the fight against
money-laundering.
A central bank official said the Philippines may be dropped from
the list before the end of the year.
CalPERS, which manages around 133 bln usd in assets, including
about 1.8 bln worth invested in emerging markets such as the
Philippines, last year decided to keep the country on its investment
list for an observation period of one year.
CalPERS made the decision despite a recommendation by Wilshire to
remove the country from the list.
During the one-year "cure period", the Philippines was supposed
to correct any deficiencies in its system, to qualify permanently as
an investment site.
Wilshire had given the country low scores in areas of market
practices and business conduct. The government argued that the data
used by Wilshire was inaccurate.
edelacruz@afxasia.com
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