NEWS

Philippines' ABS-CBN in talks with Canadian cable firm for expansion in Canada

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp is negotiating with a Canadian cable company over the Philippine company's plan to offer 24-hour all-Filipino cable services in Canada.
     ABS-CBN vice president for corporate and government affairs Maloli Espinosa-Manalastas said the Canadian government has required ABS-CBN to partner with a Canadian cable company.
     "We are pursuing it already. We are in negotiation with a Canadian partner," Manalastas said. No further details were provided.
     Aside from Canada, ABS-CBN plans to expand its cable services in Asia, particularly in Hong Kong, Singapore and Taiwan.
     The company launched its cable and direct-to-home satellite in Europe in December.
     North America remains its major cable market with at least 130,000 subscribers. It also offers the same service in Australia, Japan, Indonesia and Asia Pacific countries.
     The broadcasting firm's 24-hour cable service is being handled by its 100 pct unit ABS-CBN Global Ltd.
     (1 usd = 56.02 pesos)
     afxmanila@afxasia.com

Philippines presidential front-runner names 19-member team of advisers

     MANILA (AFX-ASIA) - Movie star presidential candidate Fernando Poe Jnr has unveiled a team of economic advisers in a bid to allay investor concerns over his inexperience ahead of May's election in the Philippines.
     The 19-strong, pro-market team of economic, governance, law, international relations and education experts will help draft Poe's policies if he wins, his spokesman Francis Escudero said in a written statement.
     In the latest opinion polls, incumbent President Gloria Arroyo trails Poe, a Filipino version of Hollywood hero John Wayne, but a political newcomer with little formal education.
     The peso has fallen to an all-time low, government debt has suffered a rating downgrade and the stock market has become volatile amid political uncertainty in the lead up to the May 10 vote.
     In his proclamation rally last week, 64-year-old Poe distilled the main problems of the impoverished Philippines into three words -- "breakfast, lunch, dinner".
     "We have what, we believe, is the most potent group of economists and planners that can be formed," said Escudero, an opposition member of the House of Representatives.
     "The blueprint for economic development will be guided by fundamental market principles and shall be founded on Mr Poe's commitment to alleviate poverty, provide basic services efficiently and effectively, create more jobs and ensure equal opportunities to all Filipinos."
     The team consists almost exclusively of academics, with an 11-member economic team led by Raul Fabella, dean of the School of Economics at the state-run University of the Philippines and Bernardo Villegas, a Harvard University-trained economics professor.
     Poe has been dogged by allegations that he fathered children through extra-marital affairs, as well as a Supreme Court suit seeking to have him disqualified on claims that he is an American, and not a Filipino citizen.

Philippines' Jollibee Foods 2003 net profit up 21 pct

     MANILA (AFX-ASIA) - Jollibee Foods Corp said its net profit rose 21 pct to 1.256 bln pesos in 2003, from the previous year's 1.039 bln.
     Net profit in the fourth quarter came in at 346 mln pesos. No comparative figure was immediately available.
     (1 usd = 56.15 pesos)
     afxmanila@afxasia.com

Manila shares close flat on consolidation; PLDT gains ahead of results -UPDATE

     (Updating with analyst quotes, prices)
     MANILA (AFX-ASIA) - Share prices closed little changed amid market consolidation as investors were sidelined by political and economic concerns in the run-up to the May 10 elections, dealers said.
     Last-minute bargain-hunting and positioning in Philippine Long Distance Telephone Co (PLDT) ahead of the release of its 2003 results on Thursday provided the market some support.
     Investors, however, exercised caution as the Supreme Court this week starts hearing two cases, seeking to disqualify opposition presidential candidate and current front-runner Fernando Poe Jr from the race -- on the grounds that he is an American and not a natural-born Filipino citizen.
     Rising domestic interest rates and a weaker peso also undermined sentiment, they added.
     The composite index closed down 0.11 points or 0.01 pct at 1,464.88 on volume of 126.5 mln shares valued at 476.7 mln pesos. It traded between 1,451. 59 and 1,464.88.
     In the broader market, losers slightly edged out gainers 25 to 22, while 36 stocks were unchanged.
     Pre-election political worries, a weak peso and a recent central bank policy tightening through an increase in banks' liquidity reserve requirement are putting upward pressure on local interest rates, as shown in yesterday's rise in 91-day and 182-day Treasury bill rates, a treasury official said.
     At the Philippine Dealing System, the peso averaged 56.137 to the US dollar at noon after closing at 56.100 yesterday.
     Currency traders said the peso may fall below its record low of 56.220 in the near-term as the market prices in political risk premium.
     "We failed to break resistance at 1,480 last week, resulting in a sustained pull-back," Regina Capital Development Corp analyst Gomer Tan said.
     "The spotlight is now on the Supreme Court regarding the FPJ (Fernando Poe Jr) disqualification issue," Westlink Global Equities chairman Rommel Macapagal said.
     "There's also no impetus for them to buy at this stage," he added, although he noted the market's support at 1,450 is intact.
     Yesterday, the movie actor dispelled fears of violent protests by his supporters, saying he will not contest the Supreme Court if it disqualifies him on citizenship grounds.
     A recent survey commissioned by a Manila newspaper showed Poe is still leading the race, but incumbent Gloria Arroyo is catching up.
     The Philippine Daily Inquirer, in its banner story today, said Arroyo's two new appointees at the Commission on Elections asked the Supreme Court yesterday to disqualify Poe on the grounds that he is not a natural-born citizen.
     The poll body recently dismissed a disqualification case against Poe for lack of merit.
     Top-traded Globe Telecom was down 5.00 pesos at 870 on 128,230 shares.
     PLDT rose 10 to 930 on 88,360 shares. Analysts polled by AFX-Asia expect PLDT's 2003 net profit to come in at 9.0-13.0 bln pesos, at least three times the previous year's 3.1 bln, on the sustained robust performance of its wireless business.
     PLDT affiliate Piltel rebounded from earlier weakness triggered by profit-taking to close 0.02 higher at 1.76 on 40.1 mln shares.
     Buying-interest in Piltel, which expects to swing to profit this year after heavy losses in recent years, is being boosted by persistent speculation it will merge with PLDT unit Smart Communications Inc to facilitate the latter's backdoor listing.
     Bank of the Philippine Islands also recovered from earlier declines, closing 0.50 higher at 44.50.
     Petron Corp fell 0.15 to 3.30 on 4.1 mln shares following recent gains.
     The all-shares index was up 9.96 points at 951.28.
     The commercial-industrial index fell 0.29 to 2,269.54.
     Property dropped 2.67 to 536.88.
     Mining and oil were unchanged at 1,583.47 and 1.29, respectively.
     Banking and financial services rose 1.10 to 433.70.
     edelacruz@afxasia.com

Manila shares close flat on consolidation amid political, economic concerns

     MANILA (AFX-ASIA) - Share prices closed little changed amid market consolidation as investors were sidelined by political and economic concerns in the run-up to the May 10 elections, dealers said.
     Last-minute bargain-hunting and positioning in Philippine Long Distance Telephone Co (PLDT) ahead of the release of its 2003 results on Thursday provided the market some support.
     Investors, however, exercised caution as the Supreme Court this week starts hearing two cases, seeking to disqualify opposition presidential candidate and current front-runner Fernando Poe Jr from the race -- on the grounds that he is an American and not a natural-born Filipino citizen.
     Rising domestic interest rates and a weaker peso also undermined sentiment, they added.
     The composite index closed down 0.11 points or 0.01 pct at 1,464.88 on volume of 126.5 mln shares valued at 476.7 mln pesos. It traded between 1,451. 59 and 1,464.88.
     In the broader market, losers slightly edged out gainers 25 to 22, while 36 stocks were unchanged.
     Pre-election political worries, a weak peso and a recent central bank policy tightening through an increase in banks' liquidity reserve requirement are putting upward pressure on local interest rates, as shown in yesterday's rise in 91-day and 182-day Treasury bill rates, a treasury official said.
     At the Philippine Dealing System, the peso averaged 56.137 to the US dollar at noon after closing at 56.100 yesterday.
     Currency traders said the peso may fall below its record low of 56.220 in the near-term as the market prices in political risk premium.
     edelacruz@afxasia.com

Manila shares weaker early on lack of leads, political concerns

     MANILA (AFX-ASIA) - Share prices were lower in mid-session as the market consolidated in the absence of fresh positive leads and due to pre-election political concerns, dealers said.
     They said investors are staying on the sidelines awaiting more 2003 corporate results and the results of the Supreme Court's hearing this week of two cases seeking to disqualify opposition bet and current front runner Fernando Poe Jr from the May 10 presidential race -- on the grounds that he is an American and not a natural-born Filipino citizen.
     At 10.42 am, the composite index was down 10.17 points or 0.69 pct at 1, 454.82 on volume 47.3 mln shares worth 123.6 mln pesos. It has traded between 1,454.82 and 1,464.38 so far.
     In the broader market, losers led gainers 23 to 12, while 26 stocks were unchanged.
     "We're seeing a continuation of yesterday's profit-taking after the market failed to break resistance at 1,480 last week. Investors are also pulling back with the spotlight now on the Supreme Court regarding the FPJ disqualification issue," Westlink Global Equities chairman Rommel Macapagal said.
     "There's also no impetus for them to buy at this stage."
     Yesterday, the movie actor dispelled fears of violent protests by his supporters, saying he will not contest the Supreme Court if it disqualifies him on citizenship grounds.
     A recent survey commissioned by a Manila newspaper showed Poe is still leading the race, but incumbent Gloria Arroyo is catching up.
     The Philippine Daily Inquirer, in its banner story today, said Arroyo's two new appointees at the Commission on Elections asked the Supreme Court yesterday to disqualify Poe on the ground that he is not a natural-born citizen.
     The Commission on Elections recently dismissed a disqualification case against Poe for lack of merit.
     Bank of the Philippines was top-traded so far and down 1.00 peso at 43 on 888,900 shares.
     Pilipino Telephone was weaker on profit-taking following a 60 pct gain between Feb 5 and yesterday on expectations it will swing to profit this year after heavy losses in recent years, and on speculation it will merge with Smart Communications Inc to facilitate the latter's backdoor listing.
     The rise of 91-day and 182-day Treasury bill rates at yesterday's auction also undermined investor sentiment, dealers said.
     The government rejected all bids for the 364-day tenor.
     Pre-election political worries, a weak peso and a recent central bank policy tightening through an increase in banks' liquidity reserve requirement are putting upward pressure on local interest rates, a treasury official said.
     At the Philippine Dealing System, the peso averaged 56.148 to the US dollar after closing at 56.100 yesterday.
     Currency traders said the peso may erase its record low of 56.220 in the near-term as the market prices in political risk premium.
     edelacruz@afxasia.com

STOCK ALERT - Philippine PSE firmer on bargain-hunting

     MANILA (AFX-ASIA) - Philippine Stock Exchange (PSE) was firmer in mid-trade on renewed interest in the stock after its recent sharp decline, dealers said.
     PSE was up 4.00 pesos at 125 on 50,300 shares, with turnover boosted by cross sales.
     The stock recently traded lower after PSE's board announced that five institutional investors bought 5.265 mln of its shares at a steeply discounted price of 119.50 pesos each.
     These 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 would benefit shareholders.
     (1 usd = 56.148 pesos)
     cecille.yap@afxasia.com

Forex - Philippine peso slightly weaker on political concerns

     MANILA (AFX-ASIA) - The peso was slightly weaker in early trade on renewed political concerns after a major daily reported that two top executives of the Commission on Elections asked the Supreme Court to disqualify front-runner Fernando Poe Jr from the presidential race.
     Dealers said the US dollar was weaker across the region, except the Philippines whose local currency traded weaker. Apart from worries on the political front, the central bank's recent data which showed a decline in the country's foreign exchange reserves and a higher balance of payments (BoP) deficit may prompt renewed buying interest on the US dollar, dealers said.
     At 10.21 am, the peso has averaged 56.148 on volume of 47 mln usd. It has so far traded between 56.13-56.17 after yesterday's close of 56.10 versus the US dollar.
     Dealers said investors are concerned that a possible disqualification of Poe may lead to violent protests by supporters of the popular movie star.
     The Supreme Court has scheduled for Thursday the oral arguments on the disqualification petition field against Poe, which stems from accusations that he is an American and not a natural-born Filipino citizen.
     Meanwhile, the level of the country's gross international reserves (GIR) has been revised to 16.08 bln usd as of end-January from the earlier reported 16.11 bln.
     The GIR fell from end-December's 16.87 bln usd due to the government's and central bank's higher debt servicing requirements. The end-January GIR was adequate to cover 4.5 months of imports of goods and payments of services and income.
     The central bank intends to maintain the GIR at a comfortable level of 14-15 bln usd this year.
     Meanwhile, the country's balance of payments (BoP) yielded a deficit of 595 mln usd in January, higher than the 77-mln usd deficit registered in December.
     Dealers said recent data suggest the central bank may not be in a comfortable position to continue defending the local currency.
     The peso is seen trading with a weaker bias, and may drop to as low as 56. 20-56.30 in the near term.
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' Piltel weaker on profit-taking

     MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) was lower in early trade on profit-taking following sustained gains since Feb 5, dealers said.
     Piltel was down 0.06 peso at 1.68 on 9.47 mln shares.
     Piltel had posted a 60 pct gain between Feb 5 and yesterday on expectations it will swing to profit this year after heavy losses in recent years, and on speculation it will merge with Smart Communications Inc to facilitate the latter's backdoor listing.
     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 on 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.
     Officials of PLDT and unit Smart, as well as Piltel, have denied the merger rumors.
     (1 usd = 56.15 pesos)
     edelacruz@afxasia.com

Philippines' Meralco to implement 3rd phase of refund in 12 months

     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) has confirmed it has been allowed by the Energy Regulatory Commission (ERC) to implement the third phase of its refund program over 12 months.
     The ERC modified its earlier decision requiring Meralco to finish the third phase of the refund, which covers residential customers with electricity consumption of over 300 kilowatthour, within a six-month period from January.
     The third phase will cost Meralco 4.9 bln pesos.
     Meralco earlier said a Supreme Court ruling suspending a 0.12-peso kilowatthour rate hike provisionally allowed by the ERC to be implemented from Jan 1 this year has made it difficult for the company to refinance its maturing debts.
     The provisional rate hike would have boosted Meralco's annual revenue by 1.9 bln pesos annually.
     The expected drain on Meralco's cash flow due to the refund coincides with the payment of its short-term and long-term debts falling due this year.
     The company's four-phase refund of overcharges dating back to 1994 will cost more than 30 bln pesos.
     (1 usd = 56.15 pesos)
     edelacruz@afxasia.com

Philippines end-Jan forex reserves revised to 16.08 bln usd from 16.11 bln

     MANILA (AFX-ASIA) - The level of the country's gross international reserves (GIR) has been revised to 16.08 bln usd as of end-January from the earlier reported 16.11 bln, the central bank's website shows.
     The GIR fell from end-December's 16.87 bln usd due to the government's and central bank's higher debt servicing requirements.
     The end-January GIR was adequate to cover 4.5 months of imports of goods and payments of services and income.
     It is also equivalent to 2.8 times the Philippines' short-term debt based on original maturity and 1.4 times based on residual maturity.
     The central bank intends to maintain the GIR at a comfortable level of 14-15 bln usd this year.
     edelacruz@afxasia.com

Philippines' BIR not to reverse tax ruling vs San Miguel - report

     MANILA (AFX-ASIA) - The Bureau of Internal Revenue (BIR) is standing firm in ruling that San Miguel Corp's San Mig Light brand is only a variant of its Pale Pilsen product and should, therefore, be subject to higher tax.
     "They (San Miguel) are keeping their stand, and we are sticking to our decision," the Philippine Daily Inquirer quoted BIR's large taxpayers division head Estelita Aguirre as saying.
     Yesterday, the food and beverage conglomerate issued a statement insisting that San Mig Light brand is not just a beer variant but a new brand, in a bid to convince the government that imposing a higher tax on the product would be "most inequitable."
     As a new brand, San Miguel Light is subject to a tax of 10.25 pesos per liter. But as a variant, it is subject as much as 19.91 pesos per liter in tax.
     San Miguel argued it has been paying tax for the San Mig Light classified as a new brand since it was registered in Oct 1999 and launched the following month.
     The company earlier said it may go to court to appeal against the BIR's decision imposing a higher excise tax on San Mig Light.
     The BIR ruling means San Miguel may have to pay about 1.5 bln pesos in back taxes, according to earlier newspaper reports.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippine movie star candidate says he will respect court on citizenship

     MANILA (AFX-ASIA) - Philippine presidential front-runner Fernando Poe dispelled fears of violent protests, saying he will not contest the Supreme Court if it disqualifies him from the May 10 election on citizenship grounds.
     Members of Poe's camp had earlier warned of civil unrest if Poe, 64, a hugely popular movie action star, is disqualified from the presidential race, in which incumbent Gloria Arroyo seeks a second term.
     The Supreme Court is to hear this week two cases seeking to disqualify Poe -- son of an American mother and Filipino father -- on the grounds that he is an American and not a natural-born Filipino citizen.
     "I will abide by the law, that's the law. I don't want violence, I don't want unrest," Poe said in a statement released by his campaign office.
     Newspapers had earlier quoted him as telling a huge crowd during a campaign sortie in the northern Philippines last week that his critics will not "see the light of day" if they continue to press for his disqualification.
     Poe's candidacy has already spooked financial markets with many wary that the high-school drop-out who has never held public office may not be able to effectively lead this impoverished country.
     The government's election authority, the Commission on Elections, has already thrown out a petition to have Poe barred from running on citizenship grounds, but the petitioners appealed the ruling to the Supreme Court.
     Poe enjoyed a substantial lead over Arroyo in public opinion polls as campaigning began last week although opinion polls now suggest his lead may be narrowing.
     He commands legions of fans in the Philippines as a result of a 50-year movie career playing mild-mannered heroes who defeat overwhelming odds.

Philippine Jan BOP deficit 595 mln usd vs 77 mln usd deficit Dec

     MANILA (AFX-ASIA) - The country's balance of payments (BoP) yielded a deficit of 595 mln usd in January, according to data from the central bank's website.
     No other details were available.
     In December, the BoP registered a deficit of 77 mln usd.
     (1 usd = 56.10 pesos)
     cecille.yap@afxasia.com

Philippine banks end-Dec total loans at 1.49 trln pesos, up 3.8 pct yr-on-yr

     MANILA (AFX-ASIA) - Outstanding loans of Philippine commercial banks grew 3.8 pct year-on-year to 1.49 trln pesos as at end-December due to higher demand for borrowings from consumers and businesses during the holiday season, the central bank said.
     The December growth was, however, slightly lower than the 4.3 pct increase in November, when outstanding loans also stood at 1.49 trln pesos.
     The central bank said the growth in bank lending was due to a 20.2 pct rise in commercial banks' loans to the community, social and personal services sector.
     Continued expansion was also noted in the following sectors -- agriculture, fisheries and forestry up 8.9 pct, transportation, storage and communication up 8.1 pct, financial institutions, real estate and business services sector up 4.2 pct, wholesale and retail trade up 2.1 pct and construction up 1.8 pct.
     Loans in these sectors accounted for roughly 70 pct of commercial banks' total outstanding loans as at end-December.
     The central bank said the growth in bank lending was also accompanied by an acceleration in the growth of domestic liquidity, which grew 4.3 pct as at end-December.
     "This reflected mainly the growth in domestic demand, as shown in the improvements in real sector (economic) activity," said central bank governor Rafael Buenaventura said.
     The Philippines' gross domestic product (GDP) expanded 4.5 pct last year, while leading consumption indicators, such as passenger car sales and energy consumption, rose at faster rates of 11.9 pct and 4.4 pct, respectively.
     "Going forward, monetary policy will continue to provide an appropriate level of liquidity enough to finance the economy's requirements for sustained growth and respond in a timely manner to emergent risks to future inflation," Buenaventura said.
     The central bank, in a recent surprise move, raised banks' liquidity reserve requirement to 10 pct from 8 amid inflationary threats arising from a weak peso. The reserve hike was meant to siphon off around 30 bln pesos in liquidity.
     (1 usd = 56.10 pesos)
     cecille.yap@afxasia.com

Philippine presidential candidates say no turning back; outline platforms

     MANILA (AFX-ASIA) - Presidential candidates who have lagged behind front-runner Fernando Poe Jr and incumbent President Gloria Arroyo said there is no turning back from the presidential race even as a recent survey showed they have fallen further behind their opponents.
     Former senator Raul Roco, ex-police chief Panfilo Lacson and evangelist Eddie Villanueva all vowed to reduce poverty and save the country from a looming fiscal crisis.
     They promised to eliminate corruption through "leadership by example," improve tax collection, encourage foreign investments and control massive population growth.
     "It's very clear there's a need for change. Surveys show 73 to 80 pct want change in leadership," Roco said in a forum organized by the Foreign Overseas Correspondents Association of the Philippines (FOCAP).
     Both Poe and Arroyo did not attend the forum.
     A Feb 10-12 survey of 1,200 likely voters commissioned by the Manila Standard newspaper showed Poe and Arroyo winning 71 pct of the votes, with Arroyo at 31.3 pct, just under eight percentage points behind Poe's 39.1 pct.
     The survey was conducted during the first three days of the 90-day campaign period.
     Asked who he would endorse, should he back out of the race, Lacson, who split the main opposition party when he decided to run against Poe, said: "I have never thought of that (and) I'll never think of that."
     If he were not a presidential candidate, Lacson said he would definitely not vote for Arroyo, whose husband he has accused of corruption and other irregularities. Lacson's support has fallen to 8.9 pct, according to the survey.
     Meanwhile, evangelist Eddie Villanueva, who had backing of 1.74 pct in the Manila Standard survey, said he will serve as "the unifying force in this highly divided nation."
     Villanueva, who heads the million-strong Jesus Is Lord (JIL) movement, said he intends to trim down the bloated bureaucracy, impose a revenue-based budgeting system and push for the restoration of "morality" in government service.
     He said he expects to balance the budget within the next five years through improved revenue collections, debt restructuring, transparency checks and technologically-improved processes. If elected president, Roco said he would increase the tax effort ratio to 20 pct of the country's gross domestic product by broadening the tax base and ensuring an equitable distribution of the "tax burden."
     Open bidding of government projects would be encouraged under a Roco administration, he added.
     Lacson, meanwhile, said he intends to address the country's budget deficit problem by exercising a "strong" political will to go after tax cheats and tax evaders. He noted he did not avail himself of his 200-mln peso "pork barrel" fund in the Senate as this had been the source of corruption among legislators and local government officials.
     The country posted a budget deficit of 199.9 bln pesos in 2003, lower than the 210.74-bln budget gap in 2002, on the back of improved revenue collections on the part of the Bureau of Internal Revenue and the Bureau of Customs.
     However, experts - including former finance secretary Jose Isidro Camacho - have warned the country is in a fiscal crisis as a result of government's failure to implement crucial revenue reforms.
     Camacho said the government's high debt level "is not sustainable" and that borrowing costs for the government have increased "because of the loss in confidence."
     All three candidates also vowed to encourage the entry of foreign investments, the lack of which has often been cited as one of the reasons behind the country's dropping competitiveness in the world market.
     Villanueva said he will make sure investors are afforded "no nonsense" security measures, adding his government will draft incentives to allow foreigners in industries "that can't be occupied by Filipino investors."
     Lacson said the sanctity of private contracts must be protected, red tape eliminated and peace and order ensured to encourage foreign investors to come in.
     He said he will push for the amendment of the Constitution, particularly removing provisions which prevent foreigners from investing in certain industries such as in the exploitation of the country's natural resources, utilities and the media.
     Roco said the Philippines must "learn to live by the rules" and foreign investors must be welcomed on an equal footing, taking swipe at the Supreme Court for recent business and economic rulings that have been disadvantageous to businesses.
     cecille.yap@afxasia.com

Philippine, Thai energy chiefs meet in Manila on investment opportunities

     MANILA (AFX-ASIA) - Energy Secretary Vincent Perez and Thai counterpart Energy Minister Prommin Lertsuridej are to hold two-day bilateral talks here starting tomorrow, the Department of Energy (DoE) announced.
     The talks will focus on investment opportunities in the upstream and downstream oil and gas sectors, the DoE added.
     The two officials are expected to discuss, in particular, the countries' bid to establish regional petroleum hubs to bolster energy supply security in the ASEAN plus three economies, China, Japan and South Korea. "The Philippines and Thailand have strongly pushed for the creation of petroleum hubs that will be used as strategic locations for stockpiling and distribution points in Southeast Asia," Perez said.
     "We are hopeful that the strong collaboration between the Philippines and Thailand will encourage other countries in the region to push and support this initiative further."
     Prommin's two-day visit to Manila is a follow-up of the discussions during the 11th Asia Pacific Economic Conference (APEC) Economic Leaders' Summit held in Bangkok last October, the DoE said in a statement.
     The two energy officials had signed a Memorandum of Understanding on cooperation in the oil and gas activities at the Bangkok summit.
     The Prommin-led Thai delegation includes senior officials of the Petroleum Authority of Thailand (PTT).
     State-owned Philippine National Oil Co (PNOC) and PTT are to sign an agreement on Wednesday to create a technical working group that will study, explore, investigate and evaluate potential areas of cooperation between the two countries particularly in the utilization of existing oil storage facilities.
     President Gloria Arroyo will witness the signing of the memorandum of agreement.
     The TWG will be composed of PNOC and PTT officials and staff.
     PTT, in a joint venture with El Paso, is currently leasing and operating an oil storage facility in the Subic Bay Freeport Zone in central Luzon. It has a capacity of about 2.5 mln barrels of petroleum products.
     edelacruz@afxasia.com

Philippine National Bank raises Tier 2 notes size to 3 bln pesos

     MANILA (AFX-ASIA) - Philippine National Bank (PNB) said it issued 3 bln pesos worth of peso-denominated lower Tier 2 subordinated notes, 800 mln pesos more than the original plan, to meet strong demand from investors.
     The actual issue size was, however, lower than the 3.8 bln pesos offering the central bank had approved.
     The notes, callable at PNB's option at the end of five years or 2009, will mature in 2014.
     The notes were issued in two series, A and B, and priced at 100 pct of face value with an initial yield of 12.5 pct, which translates to a premium of 126.83 basis points over the five-year Mart 1 fixed-rate treasury notes.
     Series A notes were available to individuals and tax-exempt institutions, while those in series B were limited to those not holding series A notes.
     Equitable PCI Bank's trust banking group was appointed public trustee, registry and paying agent.
     Multinational Investment Bancorporation and ATR-Kim Eng Capital Partners Inc were the market markers, while JP Morgan Securities Ltd was the sole arranger.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines' Ayala Corp, Globe, Ayala Land nominate new directors

     MANILA (AFX-ASIA) - Ayala Corp said its board of directors has nominated Mercedita Nolledo as director to replace Minoru Makihara.
     Ayala Corp, one of the country's largest conglomerates, has interests in telecommunications, banking, property, utilities and technology.
     Separately, Ayala units Globe Telecom and Ayala Land Inc also announced the nomination of new directors to their respective boards.
     Globe said former finance secretary Roberto de Ocampo is nominated as company director for the ensuing year.
     Ayala Land said Jaime Ayala is nominated to replace Aurelio Montinola III.
     Ayala Land earlier said Jaime Ayala, managing director of the local unit of consultancy firm McKinsey Co, will join the company this year as executive vice president.
     The intention is to appoint Ayala as the successor to Ayala Land president Francisco Licuanan when he retires in mid-2004.
     afxmanila@afxasia.com

Philippines' San Miguel Pure Foods 2003 net profit 794 mln pesos, up 15 pct

     MANILA (AFX-ASIA) - San Miguel Pure Foods Co Inc (SMPFC) reported its net profit rose 15 pct to 794 mln pesos in 2003 from 691 mln in 2002.
     In a statement, the food division of San Miguel Corp, the country's largest food and beverage conglomerate, said its sales revenues exceeded 36 bln pesos, posting a 16 pct or 5-bln peso increase from the 2002 level.
     Operating income grew 16 pct year-on-year to 1.9 bln pesos in 2003 thanks to a turnaround of its poultry business and higher demand for flour and processed meat products.
     The company said the consolidation of Magnolia Inc in June last year also boosted sales as it added desserts and dairy to the company's growing product lines.
     "Long-term prospects of the company remain bright especially with the thrust to expand to Southeast Asia and China, move into higher value-added branded segments and transform its commodity business into globally competitive enterprises," San Miguel Pure Foods said.
     The company said higher income from operations was achieved despite the weaker peso, higher raw material costs and intense competition.
     Its poultry business ended 2003 with operating profits of 135 mln pesos, as "timely management of supply coupled with improvements in growing efficiencies contributed to this growth."
     Meanwhile its flour business posted a 12 pct growth in volume and 22 pct in revenues.
     Its processed meats segment Purefoods-Hormel posted an 18 pct increase in both tonnage and peso sales. It launched 17 new products in the market last year.
     (1 usd = 56.074 pesos)
     cecille.yap@afxasia.com

Philippines 91-day, 182-day T-bill rates rise; 364-day bids rejected

     MANILA (AFX-ASIA) - The average rates for 91-day and 182-day Treasury bills rose at today's auction, while the government rejected all bids for the 364-day tenor, the Bureau of Treasury said.
     The 91-day rate, which banks use as benchmark to price loans, averaged 6. 435 pct compared with 6.216 pct previously on a full award of 3.000 bln pesos. Tenders totaled 5.26 bln.
     The average rate for the 182-day bills rose to 7.834 pct from 7.546 pct previously, with the government accepting only 2.205 bln pesos of tenders totaling 3.105 bln.
     The government offered 3.500 bln pesos worth of six-month bills.
     The government also offered 4.500 bln pesos worth of one-year bills, the rate for which averaged 8.384 pct previously.
     Bids for the one-year bills ranged from 8.500 pct to 9.400 pct.
     Deputy national treasurer Mina Figueroa said the bigger tenders placed on the 91-day tenor indicates market preference for short-term investment instruments amid political uncertainties in the run-up to the May 10 presidential election.
     She also attributed the upward pressure on T-bill rates to the recent central bank's move to raise banks' liquidity reserve requirement by two percentage points to 10 pct, which was intended to take away some 30 bln pesos in liquidity from banks.
     The liquidity tightening aimed to limit banks' capacity to accumulate dollar s, preventing the peso from further weakening.
     At the Philippine Dealing System, the peso averaged 56.074 to the dollar at noon on volume of 37 mln usd. It closed at 56.10 on Friday.
     It hit an all-time low of 56.220 on Jan 29 due to political and economic uncertainties.
     Figueroa said the government rejected high bid rates for the 364-day tenor in order to encourage banks to lend their money instead to the private sector.
     The government will offer 4.500 bln pesos worth of four-year T-bonds at tomorrow's auction.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Manila shares close weaker on profit-taking; Piltel extends gain

     MANILA (AFX-ASIA) - Share prices closed weaker in thin trade as investors took profit on select blue chips, such as Philippine Long Distance Telephone Co (PLDT), dealers said.
     The market was unable to sustain early gains as investors took to the sidelines to await fresh leads, including more 2003 corporate results, they added.
     The composite index closed down 15.78 points, or 1.07 pct, at 1,464.99 on volume of 194.1 mln shares valued at 534.6 mln pesos. The index have moved in a range of 1,462.29 to 1,485.43.
     In the broader market, losers led gainers 24 to 15, while 41 stocks closed unchanged.
     "There was a bit of profit-taking in select blue chips, including PLDT, and some second-liners," Accord Capital Equities analyst Lawrence de Leon said.
     "The market may also be waiting for the results of the (Treasury) bills auction this afternoon to see how local interest rates are moving. Higher interest rates may trigger some selling pressure on equities."
     The peso's continued weakness against the US dollar, which is feared to result in inflationary pressures, has forced the central bank to tighten its monetary policy with a 200 basis points hike in the reserve requirement for banks recently.
     Top-traded PLDT, which will announce its 2003 results on Thursday, was down 20.00 pesos at 920.00 on 137,930 shares. Investors opted to lock in gains, despite a newspaper report the company may have booked a 2003 net profit after provisions of about 11 bln pesos, more than triple the 2002 earnings of 3.1 bln.
     Its American Depositary Receipts (ADRs) lost 0.44 usd to 16.97 on Friday, but are still ahead of the local share price.
     Analysts AFX-Asia polled expect PLDT's 2003 net profit to come in at 9. 0-13.0 bln pesos on a sustained robust performance of its wireless unit Smart Communications Inc.
     PLDT had initially expected its 2003 net profit to come in at 9.0-10.0 bln pesos after provisions.
     PLDT affiliate Pilipino Telephone (Piltel) rose 0.16 to 1.74 on 66.95 mln shares, extending gains for a seventh straight session on expectations it will swing to profit this year after heavy losses in recent years.
     Dealers said some investors may also be still betting on a possible, albeit officially denied, merger between Piltel and Smart Communications Inc to facilitate the latter's backdoor listing.
     "Investors are enjoying gains from Piltel's volatility. I think market players are looking at both Piltel's turnaround story and the possible merger, although the first one is a more compelling reason (for buying into Piltel)," Accord's de Leon said.
     Piltel earlier said it 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 on 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.
     PLDT rival Globe Telecom was down 10.00 at 875.00.
     Mall operator SM Prime was down 0.10 at 5.90.
     Bank of the Philippine Islands was down 1.00 at 44.
     Manila Electric B, available to foreign investors, was down 1.00 at 31.00 and Meralco A down 0.25 at 19.25.
     The Energy Regulatory Commission (ERC) has allowed Meralco to implement the third phase of its refund program over 12 months, longer than the six-month period the regulator imposed earlier, a local newspaper reported.
     Meralco earlier said a Supreme Court ruling suspending a 0.12-peso kilowatthour rate hike the ERC allowed to be implemented from Jan 1 this year has made it difficult for the company to refinance of its debts through an international capital markets transaction earlier scheduled this month.
     Benpres Holdings was down 0.05 at 0.59.
     Petron Corp fell 0.10 to 3.45.
     The all-shares index was down 5.06 points at 941.32.
     The commercial-industrial index fell 21.59 to 2,269.83.
     Property dropped 4.49 to 539.55, while mining lost 23.68 to 1,583.47.
     Oil was up 0.03 at 1.29.
     Banking and financial services shed 5.78 to 432.60.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines' JG Summit to reclassify 2.0 bln common shares to preferred shares

     MANILA (AFX-ASIA) - JG Summit Holdings Inc said its board of directors has approved a resolution amending its articles of incorporation, which will result in a portion of its unissued capital stock being reclassified as preferred shares instead of common shares.
     The reclassification, which will be presented to shareholders, involves 2. 0 bln preferred shares with a face value of 1.00 peso each.
     It gave no reason for the reclassification.
     JG Summit, which has interests in property, airlines, telecommunications, food and malls, was not yet trading as of 11.28 am. It last closed at 1.88 pesos.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

STOCKWATCH - Philippines' Piltel firmer on earnings prospects

     MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) was firmer in late morning trade, after six straight sessions of gains, on expectations it will swing to profit this year after heavy losses in recent years, dealers said.
     They said some punters may also be still placing their bets on a possible merger between Piltel and Smart Communications Inc to facilitate the latter's backdoor listing.
     At 11.13 am, Piltel was up 0.10 peso, or 6.33 pct, at 1.68 on volume of 44.57 mln shares. Trades in Piltel represent about 25 pct of the market's total turnover so far today.
     The stock rose to as high as 1.76 in early trade.
     The composite index was down 12.67 points, or 0.86 pct, at 1,468.10.
     "Investors are enjoying gains from Piltel's volatility. I think market players are looking at both Piltel's turnaround story and the possible merger, although the first one is a more compelling reason (for buying into Piltel)," Accord Capital Equities analyst Lawrence de Leon said.
     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 on 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.
     Officials of PLDT and unit Smart, as well as Piltel, have denied the merger rumors.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

STOCK ALERT - Philippines' PLDT weaker on profit-taking

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) was weaker in late morning trade on profit-taking, dealers said.
     Investors are for the moment locking in gains despite a newspaper report the company may have booked net profit of about 11 bln pesos in 2003 after provisions, more than triple the 2002 earnings of 3.1 bln.
     PLDT was down 15 pesos at 925 on thin trade totaling 65,730 shares.
     Its American Depositary Receipts (ADRs) lost 0.44 usd to 16.97 on Friday, but are still ahead of local price.
     Analysts polled by AFX-Asia expect PLDT's 2003 net profit at 9.0-13.0 bln pesos, boosted by the sustained robust performance of its wireless unit Smart Communications Inc.
     PLDT, which will announce its results on Thursday, had expected its 2003 net profit to come in at 9.0-10.0 bln pesos after provisions.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines' San Miguel says San Mig Light a new brand to avoid higher tax

     MANILA (AFX-ASIA) - San Miguel Corp insists its San Mig Light brand is not just a beer variant but a new brand in a bid to convince the government that imposing a higher tax on the product would be "most inequitable."
     In a statement, the country's largest food and beverage conglomerate said that for the Bureau of Internal Revenue (BIR) to tax San Miguel as a variant would be "a reversal of the product's registration and tax classification through the years as a new brand and as subject to a tax rate of 9.15 pesos (later raised to 10.25 pesos) per liter."
     This classification is "a matter of record and which the BIR has confirmed both in writing and by approving tax payments on removals of San Mig Light on the basis that it is a new brand," the company said.
     The BIR imposes a tax of 19.91 pesos per liter for beer variants.
     San Miguel, which sells nine of every 10 beer bottles consumed in the Philippines, registered San Mig Light in Oct 1999 and launched the following month. Its more popular product is the Pale Pilsen brand.
     The company earlier said it may go to court to appeal against the BIR decision imposing a higher excise tax on San Mig Light.
     The BIR ruling means San Miguel may have to pay about 1.5 bln pesos in back taxes, according to earlier newspaper reports.
     The company also argued "if San Miguel is now required to pay retroactively a higher tax - it will be unable to adjust the selling price correspondingly, and recover the higher tax, for products already sold."
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippine Stock Exchange 2003 net profit 10.7 mln pesos vs 31.4 mln

     (Updating with company's official disclosure)
     MANILA (AFX-ASIA) - The Philippine Stock Exchange (PSE) said it booked a net profit of 10.7 mln pesos for 2003, only about a third of the 2002 level of 31.4 mln, due to lower revenue from company listings.
     The PSE hopes to boost its revenue this year with the re-imposition of a fee equivalent to 0.5 basis points per transaction for all stock-market trades effective Jan 1.
     The PSE stopped collecting transaction fees in 1995, when brokers wanted to generate more earnings while the market was enjoying huge volumes.
     It expects to generate up to 50,000 pesos in incremental income from a single-day turnover of 500 mln pesos.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines' Music name change approved but stock remains suspended - PSE

     MANILA (AFX-ASIA) - Music Corp has been renamed Music Semiconductors Corp, with its primary purpose changed to that of a semiconductor manufacturing company from a holding firm, a Philippine Stock Exchange circular for brokers said.
     The PSE, however, said the stock will remain suspended pending its compliance with some listing and disclosure requirements. It did not elaborate.
     Music had requested an indefinite trading suspension late last month as it sought to implement an equity restructuring and reorganization, which the Securities and Exchange Commission has approved.
     The company earlier said it aims to eliminate completely its capital deficiency and to record a capital surplus by mid-2004 in order to avoid being de-listed from the PSE
     The company had significantly reduced its capital deficiency to 102.0 mln pesos as of September 30 from 344.0 mln at end-2001, but intends to raise funds to wipe out the deficit totally.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines plans another global bond issue within Q1 - report

     MANILA (AFX-ASIA) - The government may go back to the global bond market within the first quarter of this year to cover part or all of its 2004 remaining external financing requirement of about 680 mln usd, the Philippine Daily Inquirer quoted Finance Secretary Juanita Amatong as saying.
     "We are studying a new global bond issue. The longer the term, the better, " she said.
     The government announced on Friday it issued 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.
     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.
     The liability management exercise enabled the government to extend the average maturity of its debts by 2.7 years.
     The 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.
     "If it is favorable to issue now, then we will do it soon. If not, we will likely do it after the (May) elections," Amatong was quoted as saying.
     edelacruz@afxasia.com

Philippines' Meralco given 12 months to implement 3rd phase of refund

     MANILA (AFX-ASIA) - The Energy Regulatory Commission (ERC) has allowed Manila Electric Co's (Meralco) to implement the third phase of its refund program over 12 months, longer than the six-month period earlier imposed by the regulator, BusinessWorld newspaper reported.
     Meralco had appealed against an earlier ERC ruling ordering the power distributor to complete the third phase of its refund in six months from January.
     BusinessWorld quoted ERC chairman Rodolfo Albano as saying that the commission approved Meralco's petition "because Meralco has paid 82 pct of the low income end-users."
     This refund was estimated to have already cost Meralco some 3 bln pesos.
     Meralco earlier said a Supreme Court ruling suspending a 0.12-peso kilowatthour rate hike allowed by the ERC to be implemented from Jan 1 this year has made it difficult for the company to refinance of its debts through an international capital markets transaction earlier scheduled this month.
     The provisional rate hike would have boosted Meralco's annual revenue by 1.9 bln pesos annually.
     The third phase of the refund, which covers residential customers with electricity consumption of over 300 kWh, will cost 4.9 bln pesos.
     The expected drain on Meralco's cash flow coincides with the payment of its short-term and long-term debts falling due this year.
     The company's four-phase refund of overcharges dating back to 1994 will cost more than 30 bln pesos.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippine government to ask CalPERS to keep country on investment list

     MANILA (AFX-ASIA) - Philippine Ambassador to Washington Alberto del Rosario and Finance assistant secretary Jeremias Paul will meet with officials of the California Public Employees' Retirement System (CalPERS) this week in a last-ditch attempt to convince the US pension fund to keep the Philippines in its permissible investment sites, Finance Secretary Juanita Amatong said.
     CalPERS's consultant, Wilshire Consulting, has given the Philippines a failing grade in its latest condition assessment, raising the possibility that the country may be removed from the pension fund's list of permissible investment sites.
     The Philippines would have passed the test had Wilshire agreed to correct the grading system, Corazon Guidote, executive director of the government's Investor Relations Office, said last week.
     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.
     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 deficiencies in its system, to qualify permanently as an investment site.
     Wilshire last year gave the country low scores in areas of market practices and business conduct. The government argued that the data used by Wilshire was inaccurate.
     Del Rosario and Paul will present to CalPERS as well as Wilshire officials improvements in the country's legislative reform agenda and other developments that address Wilshire's concerns, Amatong said.
     edelacruz@afxasia.com

Philippine govt end-2003 debt 3.36 trln pesos, up 19 pct

     MANILA (AFX-ASIA) - The outstanding debt of the national government ballooned to 3.36 trln pesos, up 19 pct or about 540 bln from 2.82 trln a year ago, Bureau of Treasury data show.
     The foreign debt component of the government's total debts amounted to 1. 65 trln pesos compared with 1.34 trln at end-2002.
     Domestic debt reached 1.7 trln pesos, up from 1.47 trln a year ago.
     The government borrowed heavily last year to cover its budgetary deficit, which was recorded at 199.9 bln pesos in all of 2003, below the 202 bln ceiling.
     The government aims to contain this year's deficit at 197.8 bln pesos, or 4.2 pct of GDP. It also hopes to attain a balanced budget by 2009.
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines' PLDT to elect Pangilinan chairman, Smart's Nazareno president

     MANILA (AFX-ASIA) - The Philippine Long Distance Telephone Co (PLDT) board of directors is to elect current president and chief executive officer Manuel Pangilinan as its new chairman at a meeting on Thursday, the Philippine Star reported, without identifying its source.
     Napoleon Nazareno, president of PLDT's profitable wireless unit Smart Communications Inc, will be named PLDT president, the report added.
     PLDT's 2003 net profit, which will also be announced on Thursday, is expected to have hit a record of about 11 bln pesos after provisioning, the paper's source said.
     Analysts AFX-Asia polled expect PLDT's 2003 net profit at 9.0-13.0 bln pesos, at least three times higher than its 2002 earnings, on sustained robust performance of its wireless business.
     PLDT expects its 2003 net profit at 9-10 bln pesos, after provisions.
     The management changes at PLDT had long been expected after Pangilinan's appointment last year as managing director and chief executive officer of PLDT parent First Pacific Co Ltd.
     His First Pacific job requires him to spend most of his time in Hong Kong, where the parent firm is based.
     Pangilinan replaces Antonio Cojuangco as PLDT chairman.
     Cojuangco leads a group of businessmen that has acquired control of Associated Broadcasting Corp, operator of television station ABC-5
     (1 usd = 56.10 pesos)
     edelacruz@afxasia.com

Philippines' Arroyo gains, catches up with Poe in newspaper poll

     MANILA (AFX-ASIA) - President Gloria Arroyo, who is being portrayed as "the last, best hope" for the Philippines in her television ads, is catching up with front runner Fernando Poe Jr in a presidential poll commissioned by the Manila Standard.
     The paper reported that the Feb 10-12 survey, which was conducted by an unidentified private group, showed Arroyo garnering a rating of 31.3 pct against Poe's 39.14 pct.
     This compares with the Jan 16-22 survey conducted by pollster Social Weather Station, which showed Arroyo garnering 27 pct while Poe had 36 pct.
     "The survey showed Ms Arroyo has been taking votes off (former education secretary and senator) Raul Roco while Poe has been gaining supporters from (ex-police chief and currently senator) Panfilo Lacson," the paper's banner story said.
     In the vice-presidential race, Arroyo's running mate Noli de Castro had 60.5 pct against Poe's running mate Loren Legarda's 28.02 pct.
     Poe, more popularly known as FPJ, has been leading the race for the May 10 presidential election, but investors are largely worried about his little formal education and lack of experience in public service.
     edelacruz@afxasia.com

ADB to give 500,000 usd to help Mongolia's financial sector

     MANILA (AFX-ASIA) - The Asian Development Bank (ADB) said it will extend a 500,000-usd technical assistance grant to develop Mongolia's non-bank financial sectors.
     The grant, financed by the government of Japan, will help Mongolia formulate and design a program to promote the development of non-bank financial institutions, the ADB said in a statement from its Manila headquarters.
     This program will include strengthening governance, regulatory, and supervisory standards for such institutions, harmonizing regulatory and supervisory practices and developing a medium-term reform agenda for the sector, the bank added.

Philippines eases rules on dollar investments in stock market

     MANILA (AFX-ASIA) - The Philippines has eased restrictions on foreigners recovering their investments in dollars in the local stock market, the presidential palace said.
     Under new rules foreign investors will find it easier to convert the peso proceeds of their stock investments into US dollars, provided the stocks were originally bought in dollars, the palace said in a statement.
     The Central Bank of the Philippines believes this will encourage more portfolio investments in this country as there will be fewer restrictions on the outflow of dollars from the stock market, the palace said.
     The decision was also in response to repeated requests by large foreign investors and the Philippine Stock Exchange (PSE).
     In the past foreign investors were allowed to buy and unload shares in the stock market but were prohibited from using the proceeds from stock sales to buy dollars from the spot market.
     Such rules were intended to prevent "hot money" from coming in and out of the country in large volumes, making the foreign exchange rate unstable.
     "But now, we decided that it would be better in the long run to liberalize these rules and allow foreign investors to recover their investments in dollars," central bank deputy governor Amando Tetangco was quoted as saying.
     Total portfolio investments in the Philippines rose to 675.8 mln usd last year, three times the amount in 2002, the palace remarked.