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Friday, December 05, 2003
Manila
shares close slightly lower on last-minute profit-taking
Philippine
CPI to rise in 2004 on poll spending -Unicapital Securities
Philippines'
Bayantel corporate credit rating lowered to D from SD - S&P
STOCK
ALERT - Philippines' Meralco up on ERC's decision to stay with rate hike
Philippines'
Meralco completes 10 major capital projects
Philippine
Nov CPI up 3.3 pct yr-on-yr, 0.2 pct mth-on-mth
Philippines'
BayanTel expects deal with MCI
Philippines'
Allied Bank to raise more capital on foreign market - report
Philippines
confident of extradition of Estrada co-accused from US - officials
Philippine
central bank says 'abating' political noise behind peso recovery
Philippine
trade secretary sees FY exports growth of 'at least' 3 pct
Philippines'
Negros Navigation says to study SEC inquiry into 2002 report
Forex
-Philippine peso firms further, shrugs off Poe's lead in election survey
Philippine
Treasury to raise T-bill/bond offers in Q1 2004
Thursday, December 04, 2003
Philippines'
First Generation Holdings delays IPO until after May polls
Philippine
Treasury cancels all T-bill/bond auctions this month - Edeza
Philippines'
Megaworld still interested in Fort Bonifacio 25 pct stake
Philippines'
end-Nov forex reserves 16.801 bln usd vs 16.87 bln end-Oct
Philippines'
San Miguel declares 0.35 peso/share cash dividend
Philippine
ERC not ready to reconsider Meralco rate hike despite Arroyo appeal
Manila shares
close lower on profit-taking
Philippines'
Republic Cement to convert loan from Lafarge into equity
Philippines'
ABS-CBN Holdings to list 20,000 PDRs tomorrow
DATAWATCH
- Philippine exports seen rebounding in Q4 as global demand improves
STOCK
ALERT - Philippines' Meralco B lower on Arroyo's rate hike appe
Philippine
Oct merchandise exports 3.223 bln usd, up 6.2 pct yr-on-yr
Philippine
SEC approves Republic Cement's capital hike, share issue to SeaCem
Philippine
Congress to probe Meralco's provisional rate increase - report
Philippines'
Megaworld says has cash to buy 45 pct stake in FBDC - report
Philippines'
SEC finds discrepancies in Nenaco's 2002 statement - report
Philippine
central bank likely to increase key interest rates next year
Forex
- Philippine peso ends firmer on higher remittances, central bank
Philippine
movie icon tops survey on presidential race, Arroyo left behind
Wednesday, December 03, 2003
Philippines'
Lopez family denies political deals with Arroyo
Philippine
oil firms raise LPG prices by 1.50 pesos per kilogram
Philippines'
Arroyo urges ERC to reconsider Meralco rate hike decision
Manila
shares close up on further bargain-hunting; index at 3-wk high
Manila
shares firmer as buying momentum lifts key index above resistance level
STOCK
ALERT - Philippines' Meralco, affiliates extend gains on tariff hike
Philippines'
PCI Leasing buys back 423,000 shares Dec 2
STOCK
ALERT - Philippines' Globe Telecom up on catch-up play
President
Arroyo's rating down ahead of Philippine elections - survey
Philippines'
Aboitiz - no significant deficiencies in 2002 financial reports
Forex
- Philippine peso firmer in line with stronger regionals, remittances
Philippines'
Prime Gaming buys back 638,400 common shares at 20 pesos each
Bank
of Philippine Islands' reinsurance unit to merge with Malayan Reinsurance
Philippine
govt mulls tax amnesty program before May polls - report
Sale
of Philippines' National Steel expected this month - report
| Manila shares close slightly lower on last-minute profit-taking |
(Updating with analysts' comments, share prices) MANILA (AFX-ASIA) - Share prices closed slightly lower on last-minute profit-taking after sluggish trade, while the market consolidated in the absence of fresh leads, dealers said. Slight gains in top-traded Philippine Long Distance Telephone Co limited the market's declines. The 30-company composite index closed down 6.13 points or 0.45 pct at 1, 345.37 on 233.63 mln shares worth 520.0 mln pesos. It traded between 1,345.37 and 1,358.42. Losers outnumbered gainers 30 to 23, with 37 stocks unchanged. Dealers said there was very little incentive to trade, with political concerns ahead of the 2004 presidential election still a major concern. Barring any major negative news, the market is however expected to undergo extended consolidation next week, with a positive bias ahead of the traditional Christmas rally. "The net effect of politics is uncertainty and uncertainty allows prices of stocks to be bought at discounted levels," DA Market Securities president Nestor Aguila said. He added investors are still digesting news on President Arroyo's appeal for the Energy Regulatory Commission (ERC) to reconsider the provisional rate increase it granted Meralco, which analysts said creates the perception that politics and business do mix well in the country. Dealers said the market is seen continuing to trade sideways in the next few days, consolidating before staging another rally by the end of the year. Brokerage houses traditionally load up stocks on year-end window dressing and in preparation for more robust trading activities next year. "We have very little to go by (today). The market is taking a breather," Asiasec Equities analyst Oliver Plana said. PLDT was up 5.00 pesos at 805 on 208,280 shares. SM Prime shed 0.20 at 6.30 on 10.26 mln shares on profit-taking. Meralco B, open to foreigners, gained 0.50 at 23.75 on 2.38 mln shares. Meralco A was up 0.25 at 15.00 on 162,100 shares. Dealers said there was renewed interest in the stock after the Energy Regulatory Commission said it is not ready to reconsider its decision granting Meralco a provisional increase in tariff of 0.12 pesos per kilowatthour despite Arroyo's appeal for the regulator to consider the public's welfare. Chemical Industries Philippines was down 10.00 at 25 on a cross sale of 1. 6 mln shares worth 40 mln pesos. Ayala Land was down 0.20 at 5.40 on 4.23 mln shares, while parent firm Ayala Corp was steady at 4.95. Bank of the Philippine Islands shed 0.50 at 44.00. Globe Telecom dropped 5.00 at 745. San Miguel B, gained 1.50 to close at 63, while San Miguel A was unchanged at 55. Metrobank was down 0.50 at 26. The all-shares index was down 1.83 at 852.88. The commercial-industrial index gained 6.74 at 2,025.43. Property closed down 17.00 at 536.66, mining shed 30.70 to 1,653.45. Oil gained 0.06 to 1.36. Banking and financial services shed 3.20 at 424.58. (1 usd = 55.312 pesos) cecille.yap`afxasia.com |
| Philippine CPI to rise in 2004 on poll spending -Unicapital Securities |
MANILA (AFX-ASIA) - Inflationary pressure will build up further after the Christmas holidays, as Philippine election-related spending is expected to push consumer prices higher, Unicapital Securities research head Elena Ponceca said. This and a possible interest rate increase by the US Federal Reserve may force the Philippine central bank to tighten its monetary policy, she added. "We expect the upward pressure on prices to remain beyond Christmas since historical figures show that inflation rates accelerate in months ahead of an election," Ponceca said. The peso will remain under pressure in early 2004 as the market prices in political uncertainties in the run-up to the May elections, giving the central bank another reason to tighten liquidity, she said. The Philippine consumer price index rose 3.3 pct year-on-year in November, a little higher than the 3.1 pct rise recorded in October, the National Statistics Office (NSO) said today. Consumer prices rose an average 0.2 pct month-on-month, also slightly higher than the 0.1 pct rise in October. The November year-on-year rate came in within the 3.1-3.7 pct range projected by economists in an AFX-Asia poll. Government economic planners at the National Economic and Development Authority expected the November inflation rate at 3.3 pct, on higher oil prices and a weaker peso. The central bank, meanwhile, expected the CPI to have risen 3.5 pct year-on-year in November, also due to higher oil prices and increased consumer spending ahead of the Christmas holidays. In the 11 months to November, the inflation rate averaged 3.1 pct, below the government's 4.5-5.5 pct full-year target. The NSO said the year-on-year CPI rise was mainly brought about by a 0. 60-percentage point increase in the food, beverage and tobacco (FBT) index. The month-on-month increase reflected price increases for food items particularly corn, fish, fruit and vegetables and chicken, it said. Prices of medicine, gasoline, diesel, liquefied petroleum gas, kerosene, firewood, cement and selected construction materials also rose during the month, it added. Ponceca said the inflation rate acceleration in November was within expectations, as consumer spending started to pick up as the Christmas holidays draw near. "It is not surprising to see a higher inflation rate since consumer spending is normally on the rise during this time of the year," she said. She said that the central bank may also tighten liquidity to arrest the inflationary pressure and to keep the interest rate differential should the US Fed raise the key rate next year. Central bank governor Rafael Buenaventura said earlier that the Monetary Board may raise its overnight interest rates by 50 basis points next year if the Fed implements a rate hike of as much as one percentage point. The central bank's overnight rates are currently at 6.75 pct for borrowing and 9.00 for lending. At this stage, however, the central bank does not plan any policy tightening. "The regime of low interest rates abroad is ending next year. But the Philippine central bank probably has sufficient flexibility to stay at our current rates," Buenaventura said, noting the "sufficient" level of liquidity in the financial system. The pressure on the central bank to adopt policy measures has weakened as the peso gets some boost from seasonally strong foreign exchange remittances from Filipinos abroad. After plunging to a record low of 55.85 last week versus the US dollar, the peso is now stronger, averaging 55.30 in late morning trade at the Philippine Dealing System. edelacruz@afxasia.com |
| Philippines' Bayantel corporate credit rating lowered to D from SD - S&P |
MANILA (AFX-ASIA) - Standard & Poor's Ratings Services said it has lowered its corporate credit rating on local telecom operator Bayan Telecommunications Inc (Bayantel) to D from SD, citing the company's debt problems. S&P said its D rating on Bayantel's 200 mln usd senior unsecured notes due 2006 remains unchanged. After lowering the corporate rating, S&P said it has decided to withdraw all its ratings on Bayantel, a unit of Benpres Holdings Corp. edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Meralco up on ERC's decision to stay with rate hike |
MANILA (AFX-ASIA) - Shares of Manila Electric Co were firmer in mid-trade after the Energy Regulatory Commission (ERC) said it is not ready to reconsider its decision granting Meralco a provisional increase in tariff of 0.12 pesos per kilowatthour despite President Gloria Arroyo's appeal for the regulator to consider the public's welfare, dealers said. Meralco B, open to foreigners, was up 0.50 pesos at 23.75 on 533,300 shares. Meralco A was up 0.25 at 15.25 on 104,000 shares. Meralco parent First Philippine Holdings was up 0.25 at 19.25. Dealers said the ERC's statement is an indication the rate hike, effective January 1, stays. ERC chairman Manuel Sanchez, in an interview with AFX-Asia, asserted the ERC's independence and vowed to proceed with hearing Meralco's rate hike petition. Arroyo was criticized by some sectors following the ERC ruling, which fuelled perceptions that she may have entered into a political agreement with the Lopez family, which controls Meralco, to support her bid to seek a full term in the May election. Meralco expects the additional tariff increase to boost its revenues by 1. 9 bln pesos annually, and help it undertake projects to improve its service and pay maturing loans. (1 usd = 55.29 pesos) cecille.yap@afxasia.com |
| Philippines' Meralco completes 10 major capital projects |
MANILA (AFX-ASIA) - Manila Electric Co said it has completed 10 major electric system-related capital projects so far, which form part of its 4. 7-bln peso capital investment program for this year, despite "severe" financial constraints. It expects to complete 14 more of such projects by year-end. These projects include two 115-kiloVolt subtransmission lines covering the cities and towns of Makati, Pasay, Pasig, Mandaluyong, and Taguig; four substations in Bulacan, Cavite, Quezon City, and Laguna; and four distribution lines in Quezon City, Quezon province, and Bulacan. "The subtransmission projects were meant to improve the reliability of electric service, while the substation projects, individually, were intended to provide switching flexibility, relieve critical loadings, and improve power quality," Meralco said in a statement. "We are trying to keep our service at par with customers expectations although we cannot deny that we are really experiencing financial constraints, " said Meralco vice-president for corporate communications Elpi Cuna. The Energy Regulatory Commission has granted Meralco a provisional tariff increase of 0.12 peso per kilowatthour, which it expects to raise revenues by some 1.9 bln pesos annually. Meralco said it needs additional revenues to be able to finance future capital projects that will improve its service. (1 usd = 55.275 pesos) edelacruz@afxasia.com |
| Philippine Nov CPI up 3.3 pct yr-on-yr, 0.2 pct mth-on-mth |
MANILA (AFX-ASIA) - The country's consumer price index (CPI) rose 3.3 pct year-on-year in November, a little higher than the 3.1 pct rise recorded in October, the National Statistics Office (NSO) said. Consumer prices rose an average 0.2 pct month-on-month, also slightly higher than the 0.1 pct rise in October. The November year-on-year rate came in within the 3.1-3.7 pct range projected by economists AFX-Asia polled. In the 11 months to November, the inflation rate averaged 3.1 pct, below the government's 4.5-5.5 pct full-year target. afxmanila@afxasia.com |
| Philippines'
BayanTel expects deal with MCI |
MANILA (AFX-ASIA) - Bayan Telecommunications Inc (Bayantel) and US carrier MCI "I think it will happen soon with the series of meeting we will have with them in the next couple of weeks. I am very optimistic before the year ends we will have one," Fafunwa was quoted to have said. Other local carriers such as Philippine Long Distance Telephone Co, Smart Communications Inc, Globe Telecom Inc and Digital Telecommunications Philippines Inc had already signed interim agreements with MCI The FCC earlier ordered US carriers to suspend payments to local carriers for processed inbound calls from the US. The decision was based on claims that PLDT and other local telcos were blocking calls from two US carriers to force them to pay higher termination fees. cecille.yap@afxasia.com |
| Philippines' Allied Bank to raise more capital on foreign market - report |
MANILA (AFX-ASIA) - Allied Banking Corp, a universal bank owned by Chinese-Filipino businessman Lucio Tan, plans to raise additional capital from the foreign market, the BusinessWorld newspaper reported, quoting an industry source. The bank has reportedly sought the approval of the central bank for its plan to issue dollar-denominated subordinated debt that would qualify as Tier 2 capital. The amount has yet to be determined, the source said. Allied Bank earlier reported its Jan-Sept net profit grew 9.3 pct to 799 mln pesos from a year earlier. (1 usd = 55.275 pesos) cecille.yap@afxasia.com |
| Philippines confident of extradition of Estrada co-accused from US - officials |
MANILA (AFX-ASIA) - A US court has virtually assured the extradition of a fugitive friend of deposed president Joseph Estrada, Philippine justice officials said today. The Nevada District Court has denied a motion from Charlie Ang requesting that it throw out Manila's extradition request, Justice Sectary Simeon Datumanong said . Ang is accused of helping Estrada plunder government coffers of millions of dollars during the former president's 30 months in office. He fled to the US shortly after Estrada was ousted in 2001 and has been fighting an extradition request from the Philippines government, which wants to put him on trial alongside his friend. "Once the process is completed, we can have him back here so he can face trial," Datumanong told reporters. While Ang may still appeal the ruling, justice undersecretary Merciditas Gutierrez said it is not likely it will be reversed since the court has already stressed there is a ground to have him sent back for violating an extraditable offense. "In case he does not appeal, the court can then issue a certificate of surrender," Gutierrez said. Congress impeached Estrada in 2000, but his impeachment trial broke down after his allies in the Senate blocked crucial evidence against him. Public anger subsequently snowballed into a military-backed popular revolt that forced him to step down in January 2001. Estrada is now in detention while being tried for massive corruption. |
| Philippine central bank says 'abating' political noise behind peso recovery |
MANILA (AFX-ASIA) - Central bank governor Rafael Buenaventura attributed the peso's recovery to "abating" politicial noise and higher dollar remittances from overseas Filipino workers. Buenaventura said there is no need for the central bank to help the local currency, with the market correcting on its own after the peso's drop to its lowest level in history at 55.85 to the US dollar last week. "We're not in the market," Buenaventura told reporters. He added improved merchandise exports for October, which showed 6.2 pct year-on-year growth, also supported the peso's gain. "Exports are expected to come in stronger in November and December," Buenaventura said. The local unit closed at 55.275 to the US dollar today, after trading between 55.260 and 55.350 on volume of 117.85 mln usd. It closed at 55.380 yesterday. cecille.yap@afxasia.com |
| Philippine trade secretary sees FY exports growth of 'at least' 3 pct |
MANILA (AFX-ASIA) - Trade Secretary Manuel Roxas II said he still sees a full-year growth of "at least" 3 pct in Philippines' merchandise exports even though January-October shipments grew only a 1 pct year-on-year. "We are confident we will hit an export growth rate of at least 3 pct for the entire year," he said in a statement. "To end the year at 5 pct, we need to grow our November-December exports by 23 pct (year-on-year)." He added that inventory depletions in major market also indicate the possibility that a higher exports growth rate may yet be achieved by year-end. The government is maintaining its full-year growth target of at least 5 pct for exports, but the central bank is now looking at a 3 pct growth for the entire year in projecting a balance-of payment deficit of 1.1 bln usd. The National Statistics Office today announced that merchandise exports grew 6.2 pct year-on-year to 3.223 bln usd, against the 2.3 pct year-on-year increase to 3.264 bln usd in September. edelacruz@afxasia.com |
| Philippines' Negros Navigation says to study SEC inquiry into 2002 report |
MANILA (AFX-ASIA) - Negros Navigation Co (Nenaco), the shipping unit of Metro Pacific Corp, said it is carefully studying the substance of the Securities and Exchange Commission's inquiry into its 2002 financial report, in particular five accounting discrepancies which the regulator said may have bloated its earnings. "Nenaco regards the accuracy and thoroughness of its financial reporting with the utmost seriousness ... and after completion of an exhaustive due diligence review, we intend to fully answer any and all inquiries in the soonest possible time," the company said in a disclosure to the stock exchange. The BusinessWorld newspaper reported that the SEC has asked Nenaco to explain five accounting discrepancies in its 2002 audited financial statement. SEC general accountant Roberto Manabat, in a Nov 13 letter to Nenaco, asked the company to explain the discrepancies within 15 days. The report said the SEC accountant noted that in 2002, Nenaco reported a net profit of 103.0 mln pesos from a 1.8 bln consolidated net loss in the previous year. It said one of the contributing factors for the turnaround was a drop in operating and maintenance expenses. The SEC however said the decline was caused by an unexplained change in accounting policy which the firm had used for computing its expenses. (1 usd = 55.275 pesos) cecille.yap@afxasia.com |
| Forex -Philippine peso firms further, shrugs off Poe's lead in election survey |
MANILA (AFX-ASIA) - The peso closed firmer versus the US dollar, shrugging off news that popular movie actor Fernando Poe Jr has leapt to the top spot from fourth place in the latest Social Weather Station (SWS) survey on the presidential race, dealers said. Although there were attempts by some market players to buy up the dollar following the news, they said the inflow of remittances from Filipinos abroad, who are sending money to their families here in time for the Christmas holidays, continued to support the local unit. Weak demand for greenbacks also helped, they added. The peso closed at 55.275 to the dollar after trading between 55.260 and 55.350 on volume of 117.85 mln usd. It closed at 55.380 yesterday. "There has been an increased supply of dollars mainly because of the seasonally strong remittances from OFWs (overseas Filipino workers). The news about FPJ (Fernando Poe Jr) was not totally discounted, but there's a lot of dollars while there's not much demand for it at the moment," a commercial bank dealer said. Poe's declaration last week that he would be running for president in the May elections rattled local financial markets, pulling down the peso to its weakest level in history at 55.850 to the dollar. Dealers said news that the country's merchandise exports grew 6.2 pct year-on-year in October, and economists' projections of stronger growth rates in the last two months of the year, also likely boosted the market's expectation of a firmer peso in the remaining days of the year. The dealer said the peso broke support at 55.300. He sees the dollar traded within a 55.250-55.350 range tomorrow. edelacruz@afxasia.com |
| Philippine Treasury to raise T-bill/bond offers in Q1 2004 |
MANILA (AFX-ASIA) - The Bureau of Treasury will raise its fortnightly Treasury bill (T-bill) offerings to 11 bln pesos in the first quarter of 2004 from the current 9.5 bln pesos, National Treasurer Sergio Edeza said. The Treasury will auction, on a fortnightly basis from the first week of January, 3 bln pesos worth of 91-day T-bills, 3.5 bln pesos of 182-day T-bills and 4.5 bln pesos of 364-day notes. The bureau has also decided to raise its weekly Treasury bond (T-bond) offerings to 4.5 bln pesos in the first quarter of next year from the current 3.0-bln peso offer. The National Government has been pre-funding its financing requirements for 2004 ahead of the May 2004 presidential election when rates are supposed to go up due to rising political concerns. Earlier, the Treasury said it will cancel all T-bill and T-bond auctions for this month after having successfully raised 31 bln pesos from a recent public offer of three-year retail T-bonds. (1 usd = 55.275 pesos) afxmanila@afxasia.com |
| Philippines' First Generation Holdings delays IPO until after May polls |
MANILA (AFX-ASIA) - First Generation Holdings Corp has delayed its planned initial public offering until after the May elections due to unfavorable market conditions, vice chairman and chief executive officer Peter Garrucho. He said the company is still holding negotiations with financial advisors regarding the IPO plan. First Gen is one of the power generation firms of the Lopez group, which also controls Manila Electric Co. Unit First Gas Holdings owns and operates the 1,000-megawatt Santa Rita and 500-MW San Lorenzo natural gas-fired power plants in Batangas province. It was earlier considering to conduct the IPO in the first quarter of 2004. "We intend to hold the IPO, maybe, after the elections. But we are talking with a number of advisors already," Garrucho said. The company, earlier valued at 500 mln usd, is looking to offer a 25-30 pct stake to at least three foreign financial groups and 10 pct to the public. afxmanila@afxasia.com |
| Philippine Treasury cancels all T-bill/bond auctions this month - Edeza |
MANILA (AFX-ASIA) - The Bureau of Treasury has cancelled all T-bill and T-bond auctions scheduled for this month, National Treasurer Sergio Edeza said. The decision was reached after government successfully raised 31 bln pesos from its recent public offer of 3-year Retail Treasury Bonds (RTBs). The RTBs fetched a coupon rate of 10.00 pct. The Treasury was to auction 9.50 bln pesos worth of 91-,182- and 364-day T-bills on Monday, and 3.00 bln pesos worth of 4-year T-bonds on Tuesday. (1 usd = 55.30 pesos) afxmanila@afxasia.com |
| Philippines' Megaworld still interested in Fort Bonifacio 25 pct stake |
MANILA (AFX-ASIA) - Property developer Megaworld Corp said it remains interested in acquiring an initial 25 pct stake of Bases Conversion Development Authority (BCDA) in Fort Bonifacio Development Corp (FBDC). "Megaworld keeps its options open as it awaits the issuance by BCDA of the terms of reference for its 25 pct stake in FBDC," Megaworld told the stock exchange. Megaworld issued the statement following a local newspaper report quoting company vice president Cirilo Manlangit that they have enough funds to buy a 45 pct stake of state-run BCDA in FBDC. FBDC is the developer of the 214-hectare former military camp in Fort Bonifacio in Taguig in metropolitan Manila, in which Ayala Land and Metro Pacific Corp also maintains equity participation. (1 usd = 55.30 pesos) edelacruz@afxasia.com |
| Philippines' end-Nov forex reserves 16.801 bln usd vs 16.87 bln end-Oct |
MANILA (AFX-ASIA) - The country's gross international reserves (GIR) stood at 16.801 bln usd as of end-November, lower compared with 16.87 bln at end-October, central bank governor Rafael Buenaventura said. "The slight decline in reserves during the period was mainly due to the debt service requirements of the National Government and the central bank," he said in a statement. The outflows were however offset by the 250 mln usd proceeds of the national government's three-year fixed rate bonds, which was raised to partly pre-fund its financing requirements for 2004. The central bank aims to keep the GIR within 14.00-15.00 bln usd this year. The end-November GIR level is adequate to cover 4.7 months of imports of goods and payments of services and income. It is 2.8 times the country's short-term debt based on original maturity and 1.4 times based on residual maturity. (1 usd = 55.30 pesos) cecille.yap@afxasia.com |
| Philippines' San Miguel declares 0.35 peso/share cash dividend |
MANILA (AFX-ASIA) - San Miguel Corp said it will pay a cash dividend of 0. 35 peso per share to all stockholders on record as of Dec 19. Payment is set for Jan 26. The country's largest food and beverage conglomerate also announced it has set its next regular stockholders' meeting for April 20, 2004. (1 usd = 55.3 pesos) edelacruz@afxasia.com |
| Philippine ERC not ready to reconsider Meralco rate hike despite Arroyo appeal |
MANILA (AFX-ASIA) - The Energy Regulatory Commission (ERC) said it is not ready to reconsider its decision granting Manila Electric Co (Meralco) a provisional increase in tariff of 0.12 pesos per kilowatthour despite President Gloria Arroyo's appeal that the regulator consider the public's welfare. "We understand the President's sentiment, but we are an independent body, " ERC chairman Manuel Sanchez told AFX-Asia. "However, we are ready to explain our decision to the public as requested by the President." Facing criticisms and a growing perception that she has entered into a political agreement with the Lopez family, which controls Meralco, Arroyo urged the ERC yesterday to reconsider its rate increase ruling. She said the ERC should balance the welfare of the public with the "legitimate" claims of Meralco. Arroyo, Sanchez, and the Lopez family denied there was any political arrangement among them behind the rate increase ruling, which will take effect Jan 1, 2004. The government also owns at least 20.0 pct of Meralco. Sanchez said the ERC will able to tackle Arroyo's appeal only when the public hearing on Meralco's rate hike petition begins later this month. "(The appeal) will have to wait until we begin the public hearings this month," he said in a telephone interview. Some sectors have linked the ERC decision to purported moves by the Arroyo camp to bring in Senator Noli de Castro, who has been consistently leading surveys on the vice-presidential race, as her running mate in the May elections. "It is grossly unfair to demonize us just so some politicians can win populist brownie points," said Oscar Lopez, chairman of family holding firm Benpres Holdings Corp. De Castro, who is also faring well in surveys on the presidential race, presents programs for ABS-CBN Broadcasting Corp, which the Lopez family also controls. The latest rate hike was the second for Meralco since May, when the ERC approved a 0.0865 pesos per kWh increase in its distribution rate through the unbundling of power charges. Meralco expects the additional tariff increase to boost its revenues by 1. 9 bln pesos annually, and help it undertake projects to improve its service and pay maturing loans. Investors were unimpressed by Arroyo's appeal, with Meralco B, available to foreign investors, falling 0.50 pesos to 23.25 on volume of 1.47 mln shares after recent successive gains triggered by the ERC rate hike approval. Meralco A was down 0.25 at 14.75. (1 usd = 55.297 pesos) edelacruz@afxasia.com |
| Manila shares close lower on profit-taking |
MANILA (AFX-ASIA) - Share prices snapped a three-day rally to close lower on profit-taking in select stocks, with investor sentiment dampened by a recent survey showing popular movie actor Fernando Poe Jr leading the presidential race months ahead of the May 2004 election, dealers said. Dealers said investors may have also opted to cash in on gains in anticipation of a follow-through sell-off in the US market tonight. The 30-company composite index closed down 6.26 points, or 0.46 pct, at 1, 351.50 on volume of 172.95 mln shares worth 590.13 mln pesos. It traded between 1,346.40 and 1,359.52. Losers outnumbered gainers 34 to 14, with 54 stocks unchanged. Sentiment for Manila Electric Co and other Lopez family-led stocks was dampened on President Arroyo's appeal to the Energy Regulatory Commission to reconsider a 0.12 pesos per kilowatthour provisional increase granted to Meralco, dealers said. This came amid mounting criticism that the tariff adjustment was granted as a political accommodation to the Lopez family, whose ABS-CBN Broadcasting Corp talent Senator Noli de Castro is being eyed as Arroyo's running mate in the elections, they added. "Going into the election season, the market is starting to be affected by political concerns, prompting some profit-taking along the way," said Mark Alan Canizares, an analyst at Citiseconline.com. Another analyst said "the election is again becoming a popularity contest, " warning a possible repeat of former President Joseph Estrada's landslide win in 1998. Estrada, also a popular movie star, is now under detention on charges of corruption. Accord Capital Equities analyst Lawrence de Leon said the market is technically due for a correction after three days of gains. AB Capital research director Jose Vistan Jr said: "The issue over Meralco's rate increase is sending investors the negative perception of how politics is mixed with business." PLDT was top-traded, closing down 15 pesos at 800 on 148,850 shares. Prime Gaming Philippines was second top-traded on cross transactions worth 86.48 mln pesos involving 4.32 mln shares. Globe Telecom shed 5.00 to 750 on 97,310 shares. Bank of the Philippine Islands gained 0.50 to 44.50. Ayala Land was down 0.10 at 5.60, while parent Ayala Corp was flat at 4. 95. Meralco B, open to foreigners, was down 0.50 pesos at 23.25 on 1.47 mln shares and Meralco A down 0.25 pesos at 14.75 on 248,700 shares. Parent firm First Holdings fell 0.50 to 19 on 731,800 shares. Jollibee retreated 0.25 to 16.50. The all-shares index was up 2.03 points at 854.71. The commercial-industrial index dropped 11.93 to 2,018.69. Property closed down 4.79 at 553.66, mining gained 0.88 to 1,684.15 and Oil dropped 0.06 to 1.30. Banking and financial services rose 1.32 to 427.78. (1 usd = 55.297 pesos) cecille.yap@afxasia.com |
| Philippines' Republic Cement to convert loan from Lafarge into equity |
MANILA (AFX-ASIA) - Republic Cement Corp said its board of directors has approved the issuance of 1.128 bln common shares from its unissued capital stock to Lafarge Holdings (Philippines) Inc, the holder of its convertible notes issued in 2000. It said that under the agreement with Lafarge, the loan, with a face value of 1.467 bln pesos, can be settled by the conversion into equity. (1 usd = 55.299 pesos) edelacruz@afxasia.com |
| Philippines' ABS-CBN Holdings to list 20,000 PDRs tomorrow |
MANILA (AFX-ASIA) - ABS-CBN Holdings Corp is set to list a total of 20, 000 Philippine Deposit Receipts (PDR) tomorrow, the stock exchange said. The listing will bring the number of PDRs listed in the exchange to 270. 58 mln. At 10.53 am, ABS-CBN Holdings was down 1.00 peso at 26.00 on volume of 56,500 shares. (1 usd = 55.298 pesos) cecille.yap@afxasia.com |
| DATAWATCH - Philippine exports seen rebounding in Q4 as global demand improves |
MANILA (AFX-ASIA) - The Philippines' merchandise exports are likely to grow at even faster rates in the last two months of the year after expanding 6.2 pct year-on-year in October, DBS Bank regional economist Wong Chee Seng said. The faster rise in the October exports than the 2.3 pct year-on-year growth seen in September reflects the expected pick-up in global demand at this time of the year, he added. However, Wong said he is surprised exports to the US dropped at a time when the world's largest economy is showing signs of a rebound. Still, he noted that the Philippines appears to be benefiting from the improving economic environment in Japan. The National Statistics Office today said the Philippines' merchandise exports rose to 3.223 bln usd in October from 3.033 bln in the same month last year. In the January to October period, exports grew 1.0 pct to 29.489 bln usd from 29.191 bln last year, still below the government's full-year target of an expansion at least 5.0 pct. The country's traditionally biggest earner, electronics, posted an increase in receipts of 6.3 pct to 2.208 bln usd in October, from 2.077 bln last year, to account for 68.5 pct of October shipments. "I think those are positive numbers and that is a trend in the region. What we're seeing is the recovery expected before the year-end," Wong said. "But I'm shocked that shipments to the US were down when demand from that country is supposedly on the rise. What this means is that the turnaround in the Japanese economy is helping Philippine exports recover after posting weak numbers before September." He said Japan, as well as China, will remain among the country's biggest export markets. Japan accounted for 18.3 pct of total shipments in October, as receipts rose 36.8 pct to 589.48 mln usd from 430.78 mln last year. The US came next with a 16.2 pct share on shipments valued at 521.64 mln usd, down 23.2 pct from 679.43 mln previously. Wong said inflows from exports should help boost the value of the peso, which has recovered from last week's record low of 55.85 to the US dollar on the back of seasonally strong remittances from Filipinos abroad. At 10.10 am, the peso averaged 55.299 to the dollar after closing at 55. 38 yesterday. Pre-election jitters and Moody's Investors Service's possible sovereign ratings downgrade pulled the peso down to its lowest level in history Thursday last week. "The next two months will likely see Philippines exports rise, with growth stronger than 6.2 pct. But I don't expect that the full-year government growth (of 5.0 pct) to be achieved," Wong said. Although political uncertainties will continue to weigh on the economy in 2004, he said he does not expect them to have a negative affect on the exports sector. Exporters are likely to continue benefiting from increasing global demand, as well as a weak peso, as they will get more of the local unit in exchange for their dollars, he said. edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Meralco B lower on Arroyo's rate hike appeal |
MANILA (AFX-ASIA) - B shares of Manila Electric Co, held by foreign investors, were lower in early trade after President Gloria Arroyo urged the Energy Regulatory Commission (ERC) to reconsider the 0.12 pesos per kilowatthour rate increase it granted the power distributor last week, dealers said. Meralco B was down 0.25 pesos at 23.50 on volume of 183,500 shares. Meralco A was unchanged at 15.00 on 20,000 shares. Its parent firm First Holdings was 0.25 pesos lower at 19.25 on 271,800 shares. Arroyo's appeal for reconsideration comes after some quarters described the rate hike as an accommodation to the Lopez family. The Lopez group is a majority shareholder of both Meralco and ABS-CBN Broadcasting Corp, whose long-time broadcaster-turned senator Noli de Castro is reportedly seriously being considered as Arroyo's running mate for the 2004 presidential election. Both Arroyo and the Lopez group have denied the allegations amid mounting protest against the tariff adjustment, which is expected to bring in 1.9 bln pesos in additional revenues to Meralco. Dealers said intense politicking may be detrimental to the viability of the country's power distributor, which is undergoing a 30.5-bln peso refund of overcharges to customers. Meralco said the rate increase is much-needed as this would allow the distributor to embark on its multi-billion capital projects intended to improve its services. The House of Representatives is set to conduct an investigation on the circumstances leading to the tariff increase. (1 usd = 55.29 pesos) cecille.yap@afxasia.com |
| Philippine Oct merchandise exports 3.223 bln usd, up 6.2 pct yr-on-yr |
(Updating with other export items, Philippine exports markets) MANILA (AFX-ASIA) - Merchandise exports grew 6.2 pct to 3.223 bln usd in October from 3.033 bln in the same month a year ago, the National Statistics Office (NSO) reported. In the 10 months to October, merchandise exports grew 1.0 pct to 29.489 bln usd from 29.191 bln a year earlier, still below the government's full-year target of at least 5.0 pct. The NSO reported merchandise exports grew 2.30 pct year-on-year to 3.264 bln usd in September. Electronics exports, which traditionally account for the bulk of Philippine shipments, increased 6.3 pct to 2.208 bln usd in October from 2. 077 bln a year ago. They represented 68.5 pct of October shipments. Semiconductor exports, which accounted for 47.8 pct of total exports in October, grew 6.4 pct year-on-year to 1.54 bln usd. Articles of apparel and clothing accessories remained the country's second top earning with a combined share of 4.8 pct and an aggregate receipt of 155.3 mln usd or 21.6 pct lower than the year-earlier 198.22 mln. Shipments of "Other Products Manufactured from Materials Imported on Consignment Basis" ranked third with total revenue of 59.39 mln usd, up 62.6 pct year-on-year. Accounting for 88.5 pct of total October receipts, exports of manufactured goods rose 5.8 pct year-on-year to 2.852 bln usd. Japan was the country's biggest export market in October, accounting for 18.3 pct of total shipments, as receipts rose 36.8 pct year-on-year to 589.48 mln usd from 430.78 mln a year ago. The US followed with a 16.2 pct share, with shipments valued at 521.64 mln usd, down 23.2 pct from 679.43 mln a year ago. Hong Kong came in third, accounting for 8.7 pct of total shipments worth 281.80 mln usd, which reflected a 23.5 pct increase from 228.17 mln a year ago. afxmanila@afxasia.com |
| Philippine SEC approves Republic Cement's capital hike, share issue to SeaCem |
MANILA (AFX-ASIA) - Republic Cement Corp said the Securities and Exchange Commission (SEC) has approved its application to raise its authorized capital stock to 8 bln pesos from 5 bln and issue shares to Southeast Asia Cement Holdings Inc (SeaCem). The increase in authorized capital stock consists of 3 bln common shares with a total par value of 3 bln pesos. Of the increase, Southeast Asia Cement subscribed to 1.548 bln Republic Cement common shares. As payment for the subscription, Southeast Asia Cement exchanged its 19. 96 common shares in FR Cement Corp and 10 mln common shares in Lloyds Richfield Industrial Corp. Republic Cement told the stock exchange that the SEC's approval is subject to certain unspecified conditions, which are expected to be complied with by Jan 2004. (1 usd = 55.38 pesos) edelacruz@afxasia.com |
| Philippine Congress to probe Meralco's provisional rate increase - report |
MANILA (AFX-ASIA) - A group of lawmakers in the House of Representatives have initiated to open a congressional inquiry into the circumstances leading to the Energy Regulatory Commission's (ERC) approval of a 0.12 pesos per kilowatthour rate increase for the Manila Electric Co (Meralco), the Today newspaper reported, quoting Representative Satur Ocampo. The report said Ocampo vowed to push for the passage of a bill that would clip the ERC's power to grant provisional rate adjustments, which he said works against the interest of consumers. Ocampo is set to file a resolution seeking an investigation into the provisional rate increase without any public hearings. Joining Ocampo as co-authors of the resolution are Representatives Abraham Mitra, Cynthia Villar and Roseller Barinaga. The latest rate hike was the second for Meralco since May, when the ERC approved a 0.0865 pesos per kWh increase in its distribution rate through the unbundling of power charges. Meralco expects the additional tariff increase to boost its revenues by 1. 9 bln pesos annually, and help it undertake projects to improve its service and pay maturing loans. The country's largest power distributor, which provides electricity in metropolitan Manila and nearby provinces, is refunding 30.5-bln peso in overcharges to customers. (1 usd = 55.38 pesos) cecille.yap@afxasia.com |
| Philippines' Megaworld says has cash to buy 45 pct stake in FBDC - report |
MANILA (AFX-ASIA) - Megaworld Corp has enough funds to buy a 45 pct stake of state-run Bases Conversion Development Authority (BCDA) in Fort Bonifacio Development Corp (FBDC), BusinessWorld newspaper reported, quoting Megaworld executive vice president Cirilo Manlangit. FBDC is the developer of the 214-hectare former military camp in Fort Bonifacio in Taguig. Manlangit said the property firm is awaiting the terms and conditions of the bid. The state-run BCDA expects to generate around 7.0 bln pesos from the sale. Despite the sale BCDA would still retain control over the development of the former military camp. The property development is led by Bonifacio Land Corp, which is 55 pct owned by BCDA. The remainder is held by Metro Pacific Corp, Ayala Land Inc and Evergreen Holdings Inc. (1 usd = 55.38 pesos) cecille.yap@afxasia.com |
| Philippines' SEC finds discrepancies in Nenaco's 2002 statement - report |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has asked Negros Navigation Co (Nenaco) to explain five accounting discrepancies in its 2002 audited financial statement, which may have bloated its earnings, the BusinessWorld newspaper reported, citing documents. Nenaco is the shipping unit of Metro Pacific Corp. SEC general accountant Roberto Manabat, in a Nov 13 letter to Nenaco, asked the company to explain within 15 days upon receipt of notice the discrepancies in the 2002 financial report. The report said the SEC accountant noted that in 2002, Nenaco reported a net profit after tax of 103 mln pesos from a 1.8 bln consolidated net loss in the previous year. It said one of the contributing factors for the turnaround was the decline in operating and maintenance expenses. The SEC however said the decline was caused by an unexplained change in accounting policy the firm used for computing its expenses. "The company did not disclose an appropriate and specific justification for the change. To just say that the change is in consonance with sound industry and accounting practice is unacceptable," Manabat was quoted to have said. Meanwhile, Nenaco's management is still reviewing its response to the letter and is expected to submit its reply either Friday or Monday, Nenaco corporate communications manager Gian Galvez was quoted by the report to have said. (1 usd = 55.38 pesos) cecille.yap@afxasia.com |
| Philippine central bank likely to increase key interest rates next year |
MANILA (AFX-ASIA) - The central bank's policy-making Monetary Board may move to increase key interest rates by 50 basis points next year should the US Federal Reserve push through with an expected 1.0 percentage point increase in its rates, central bank governor Rafael Buenaventura said. "We won't have to respond on a one-on-one basis," Buenaventura told reporters. The local central bank's overnight rates stand at 6.75 pct for borrowing and 9.00 for lending, their lowest levels in 11 years. Buenaventura said the Monetary Board would review a possible Fed hike in the context of local inflation numbers. "If inflation remains benign, then we will have sufficient room not to do anything," Buenaventura said. cecille.yap@afxasia.com |
| Forex - Philippine peso ends firmer on higher remittances, central bank |
MANILA (AFX-ASIA) - The peso closed firmer for the third straight day on the back of higher remittances from overseas Filipino workers and on strict monitoring by the central bank, dealers said. The peso closed at 55.380 to the US dollar after trading between 55.35-55. 45 on volume of 130.0 mln usd. It closed at 55.49 yesterday. Dealers said banks have avoided bidding the peso lower on fear of central bank intervention. The local unit fell to its historic low of 55.850 late last week after movie star Fernando Poe Jr announced his intention to run in the 2004 presidential race and after Moody's Investor Services warned of a possible ratings downgrade. "The central bank has been closely watching the market after having been widely criticized for its failure to defend the currency last week," a dealer with a local bank said. Dealers said the peso also moved in line with the strength of other regional currencies, with the US dollar performing weaker across-the-board due to trade deficit and protectionism concerns. Dollar inflows from Filipinos overseas traditionally peak in the first two weeks of December ahead of the Christmas holidays. "The remittances are more than the usual. People have been encouraged to exchange their dollars now after the peso fell sharply," another dealer said. The peso is seen trading between 55.30-55.50 tomorrow. Although the bias is still for a stronger local unit, political concerns may keep investors on the sidelines. A new survey showed popular movie actor Fernando Poe Jr and broadcaster-turned-senator Noli de Castro led a presidential poll conducted in November, with President Gloria Arroyo trailing. cecille.yap@afxasia.com |
| Philippine movie icon tops survey on presidential race, Arroyo left behind |
MANILA (AFX-ASIA) - Popular movie actor Fernando Poe Jr, who only last week announced his intention to run for the presidency in May, tops a survey on the presidential race conducted from Nov 8 to 24 by the Social Weather Station (SWS). Asked who they would vote for president if the elections were held today, 25 pct of respondents chose Poe, who will likely run under the opposition banner, while broadcaster-turned-senator Noli de Castro got 24 pct. "This indicates a significant gain for FPJ (Fernando Poe Jr) who as of mid-September had only 14 pct, and a decline for de Castro who formerly had 28 pct," said SWS chief Mahar Mangahas. Poe did not fare well in previous surveys. The pollster said former senator and education secretary Raul Roco got 18 pct support with the current president, Gloria Arroyo, 17 pct. Senator Panfilo Lacson got 10 pct, with about 6 pct undecided. In SWS's September survey, Roco got 20 pct, Arroyo 17 pct, and Lacson 10 pct. The survey was based on face-to-face interviews with 1,200 people nationally, the SWS said in a statement. It added that it considers Poe and de Castro to be jointly leading the race, as the survey has a margin of error of plus or minus three percentage points. When FPJ, who is also known as "Da King" of Philippine movies, announced last week that he would be running for the presidency in May, the peso plunged to a record low of 55.85 against the US dollar. Financial analysts said the business community sees a Poe presidency as bad for the economy as he has no experience in public office and business people are concerned Poe will pardon his close friend, former president Joseph Estrada, if he wins. Estrada, who has been detained and on trial on corruption allegations, has expressed his full support for Poe. As for the vice-presidential race, the SWS survey shows de Castro's suport has been cut, even though he still leads with 29 pct, followed by Senator Loren Legarda-Leviste with 23 pct. "This implies a deep cut in de Castro's lead for vice president over Leviste to only six points in November, from 22 points last September, when de Castro had 37 pct," Mangahas said. edelacruz@afxasia.com |
| Philippines' Lopez family denies political deals with Arroyo |
MANILA (AFX-ASIA) - The Lopez family, majority owner of Manila Electric Co and Maynilad Water Services Inc, today denied allegations it has entered into deals with President Gloria Arroyo in relation to recent regulatory and judicial reliefs its companies obtained. "It is grossly unfair to demonize us just so some politicians can win populist brownie points," said Oscar Lopez, chairman of family holding firm Benpres Holdings Corp. Several politicians have linked the 0.12 pesos per kilowatthour rate increase the Energy Regulatory Commission gave to Meralco and a regional trial court's temporary relief on water unit Maynilad to the widely rumored decision of Senator Noli De Castro to stand as Arroyo's running mate in the 2004 presidential elections. De Castro has been a long-time talent of the Lopez family's ABS-CBN Broadcasting Corp before becoming senator. The ruling party believes an Arroyo-de Castro pairing will be formidable, with de Castro topping various surveys this early. "The Meralco rate increase, the first real rise since 1994, had been modest and underwent scrutiny by the ERC," Meralco chairman Manolo Lopez said. The ERC provisionally approved the rate increase several weeks after Meralco's petition was filed and came despite an earlier statement that no tariff hike will be decided this year. The quasi-judicial body said the adjustment, which will mean an additional 1.9 bln pesos in revenue for the power distributor, is needed to enable Meralco to carry on with much-needed capital investments. As for Maynilad, Oscar Lopez pointed out, "the Arroyo administration, through MWSS (regulator Metropolitan Waterworks and Sewerage System) and the Justice Department, has given us no quarters. Temporary relief was granted us by the Quezon City Regional Trial Court." The court approved Maynilad's petition for debt relief in issuing a stay order on the enforcement of all creditors' claims against the company and its guarantors. Maynilad earlier filed a petition for corporate rehabilitation in the Quezon City court after the International Arbitration Court ruled that the water supplier should pay regulator MWSS 6.77 bln pesos in concession fees. The arbitration panel also ordered the Lopez family's water unit to continue with its 25-year concession agreement to supply drinkable water to parts of metropolitan Manila. The panel also allowed MWSS to draw on a 120 mln usd performance bond, which Maynilad put up on winning the concession a few years back. Benpres guarantees 60 pct of the bond, while the other 40 pct is guaranteed by its partner in Maynilad, the Suez/Ondeo group. Meanwhile, ABS-CBN chairman Eugenio "Gabby" Lopez III said it is not within his power, nor that of the family, to "deliver" their talent de Castro to Arroyo as a running mate. "Senator de Castro makes up his own mind and it is insulting to think that we can make him run with the president or with anybody or even run at all if he is not inclined to (do so)." The Lopez family asks the government, politicians and media to give them fair treatment. "While we have large financial obligations, nevertheless, we have nothing to be ashamed of. We did not steal from the people, we did not cheat the government," Oscar Lopez said. Benpres is restructuring over 500 mln usd in debts. (1 usd = 55.415 pesos) cecille.yap@afxasia.com |
| Philippine oil firms raise LPG prices by 1.50 pesos per kilogram |
MANILA (AFX-ASIA) - Pilipinas Shell Petroleum Corp and Caltex Philippines Inc raised the prices of their liquefied petroleum gas (LPG) products by 1.50 pesos per kilogram, or by 16.50 pesos for an 11-kilogram cylinder, effective yesterday. Total Philippines Inc will implement the same increase by midnight tonight, while Petron Corp has yet to make an announcement, company officials said. "The hike is due to the increase in LPG contract prices following strong seasonal demand in the region," Shell external affairs general manager Roberto Kanapi. This is the second time in less than a month that oil firms have hiked the price of this petroleum product following a 1.00 peso per kilogram increase implemented on Nov 5. (1 usd = 55.415 pesos) cecille.yap@afxasia.com |
| Philippines' Arroyo urges ERC to reconsider Meralco rate hike decision |
MANILA (AFX-ASIA) - President Gloria Arroyo has urged the Energy Regulatory Commission (ERC) to reconsider its decision to grant Manila Electric Co (Meralco) a provisional 0.12 pesos per kilowatthour rate increase. "We are urging the body to reconsider its decision based on the welfare of the public balanced against the legitimate claims of Meralco," Arroyo said in a statement. She also asked the quasi-judicial body to explain its position clearly to the public. "We have never mixed these sensitive rate determination processes with politics and we are asking the ERC to deal with the public in complete transparency," Arroyo added. Yesterday, Presidential Spokesman Ignacio Bunye denied the administration has cut a deal with the Lopez group, majority shareholder of the country's largest distributor. The statement was issued in response to allegations that Meralco's recent rate hike could be part of an agreement to support Arroyo's bid in the May polls. The Lopez group also owns ABS-CBN Broadcasting Corp, the largest television and broadcasting network in the country. Ignacio, in a news briefing yesterday, said the presidential palace is not considering making an appeal against the tariff hike. The latest rate hike was the second for Meralco since May, when the ERC approved a 0.0865 pesos per kWh increase in its distribution rate through the unbundling of power charges. Meralco expects the additional tariff increase to boost its revenues by 1. 9 bln pesos annually, and help it undertake projects to improve its service and pay maturing loans. (1 usd = 55.415 pesos) cecille.yap@afxasia.com |
| Manila shares close up on further bargain-hunting; index at 3-wk high |
MANILA (AFX-ASIA) - Share prices closed firmer for a third straight session on sustained bargain-hunting, with the key index ending at a three-week high after breaching the initial 1,340-point resistance level, dealers said. The market extended its rally on further gains in several blue chips led by Philippine Long Distance Telephone and Globe Telecom. The peso's steady recovery against the US dollar and a relatively quiet political environment helped keep sentiment positive, dealers said. They added investors are setting aside pre-election political concerns for now, and may be positioning themselves ahead of the traditional year-end rally. The composite index closed up 20.93 points, or 1.57 pct, at 1,357.76 on volume of 288.88 mln shares valued at 571.12 mln pesos. It moved between 1, 334.31 and 1,357.76. It is the index's strongest finish since Nov 12, when it closed at 1,363. 53. In the broader market, gainers led losers 44 to 16, while 38 stocks were unchanged. At the Philippine Dealing System, the peso averaged 55.415 to the dollar by noon after closing at 55.490 yesterday, on support from seasonally strong remittances from Filipino workers abroad and firmer regional currencies. The peso touched a record low of 55.85 last Thursday, weighed down by political and economic concerns. "There are still no signs that the bargain-hunting interest that emerged last Monday is weakening," Accord Capital Equities analyst Lawrence de Leon said. "The improving peso and a relative quiet political environment helped to keep sentiment positive. This could be the start of the year-end rally as investors may now be doing their window-dressing or positioning for next year. " He said the rally could be sustained tomorrow as some stocks still provide trading opportunities. "It's just a matter of cherry-picking or picking the right stocks," de Leon said. Top-traded PLDT was up 10 pesos at 815 on volume of 119,860 shares, after mild weakness early in the session due to profit-taking. Globe Telecom rose 15 to 755 on 117,770 shares due to catch-up play, as the stock had lagged the recent gains that rival PLDT made. Ayala Corp was up 0.05 at 4.95 on 13.9 mln shares, while unit Ayala Land was up 0.20 at 5.70 on 3.3 mln shares. SM Prime was up 0.20 at 6.50 on 9.9 mln shares. Manila Electric's B shares, available to foreign investors, rose 0.25 to 23.75 on 2.38 mln shares, while Meralco A was unchanged at 15. Meralco extended gains following the Energy Regulatory Commission's approval of a 0.l2-peso per kilowatthour tariff hike for the power distributor, effective Jan 1 next year. Meralco expects the rate hike to boost its annual earnings by 1.9 bln pesos. The positive sentiment in relation to Meralco continued to spill over to its parent, First Philippine Holdings, which was up 0.50 at 19.50 on 1.59 mln shares. First Holdings parent Benpres Holdings was up 0.02 at 0.51 on 12.97 mln shares. Bank of the Philippine Islands was up 1.00 at 44. The all-shares index was up 5.17 points at 852.68. The commercial-industrial index rose 19.39 to 2,030.62. Property was up 17.89 at 558.45, and mining up 47.07 at 1,683.27. Oil dropped 0.03 to 1.36. Banking and financial services gained 7.70 to 426.46. edelacruz@afxasia.com |
| Manila shares firmer as buying momentum lifts key index above resistance level |
MANILA (AFX-ASIA) - Share prices firmed further on a sustained technical rebound, with the buying momentum pulling up the key index above the 1, 340-point resistance level, dealers said. Gains in select blue chips led by Globe Telecom sustained the market's upside, as investors were seen positioning themselves ahead of the anticipated year-end rally. The peso's steady recovery against the US dollar also helped keep sentiment positive. At 11.29 am, the composite index was up 13.79 points, or 1.03 pct, at 1, 350.62 on volume of 127.15 mln shares valued at 385.59 mln pesos. It has moved between 1,334.31 and 1,350.62 so far. In the broader market, gainers led losers 36 to 13, while 37 stocks were unchanged. At the Philippine Dealing System, the peso averaged 55.417 to the US dollar after closing at 55.490 yesterday, supported by seasonally strong remittances from Filipino workers abroad and firmer regional currencies. "The (equities) market is sustaining its technical rebound. There's buying momentum now," Westlink Global Equities chairman Rommel Macapagal said. He sees the market's next immediate resistance at 1,360 points. Globe Telecom rose on catch-up play, as the stock had lagged the recent gains that rival Philippine Long Distance Telephone made, he said. Globe was up 10 pesos at 750 on volume of 97,820 shares on a boost from cross sales. PLDT was unchanged at 805 on 47,750 shares. edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Meralco, affiliates extend gains on tariff hike |
MANILA (AFX-ASIA) - Shares of Manila Electric Co (Meralco) and parents First Philippine Holdings Corp and Benpres Holdings Corp were higher, extending gains following the Energy Regulatory Commission's approval of a 0. l2-peso per kilowatthour tariff hike for the power distributor, dealers said. Meralco B, available to foreign investors, rose 0.25 pesos to 23.75 on 1. 28 mln shares, while Meralco A was up 0.25 at 15.25 on 604,700 shares. First Holdings was up 0.25 at 19.25 on 962,700 shares, while Benpres Holdings was up 0.02 at 0.51 on 8.86 mln shares. Meralco expects the rate hike, effective Jan 1, 2004, to boost its annual earnings by 1.9 bln pesos. Yesterday, President Gloria Arroyo's spokesman, Ignacio Bunye, said she was unhappy with the latest power rate increase, but the government, which holds a substantial stake in Meralco, has no plans of appealing against the ERC decision. Bunye also denied suggestions that the hike was part of a political deal between Arroyo and the Lopez family, which controls Meralco. There was talk that Arroyo's camp wants Senator Noli de Castro, who is close to the Lopez family, to be her running mate in the May elections. De Castro, who consistently topped surveys on the vice-presidential race, hosts a public affairs program for ABS-CBN Broadcasting Corp, which the Lopez family also controls. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippines' PCI Leasing buys back 423,000 shares Dec 2 |
MANILA (AFX-ASIA) - PCI Leasing said it bought back 423,000 shares from the market on Dec 2. The shares were purchased at 1.32 pesos each, or a total of 558,360 pesos, the company told the stock exchange. (1 usd = 55.417 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Globe Telecom up on catch-up play |
MANILA (AFX-ASIA) - Globe Telecom shares were higher on catch-up play, as the stock lagged behind recent gains of rival Philippine Long Distance Telephone, dealers said. Globe was up 10 pesos at 750 on volume of 69,310 shares, boosted by cross sales. PLDT was down 5.00 at 800 on 26,850 on mild profit-taking, dealers said. "Globe is playing catch up with PLDT, whose recent gains brought it again to 800 pesos. PLDT is now consolidating at that price level," Westlink Global Equities chairman Rommel Macapagal said. (1 usd - 55.40 pesos) edelacruz@afxasia.com |
| President Arroyo's rating down ahead of Philippine elections - survey |
MANILA (AFX-ASIA) - Public satisfaction ratings for Philippine President Gloria Arroyo and key government institutions have fallen five months ahead of national elections, a survey released today showed. The poll by the respected Social Weather Stations (SWS) "finds low levels of public satisfaction" with Arroyo, Congress and the Supreme Court. Among factors for the decline are Arroyo's decision to seek a second term in office in May elections and charges of corruption against her husband, the pollster said. The nationwide survey of 1,200 respondents from November 8 to 24 showed that 43 pct were "dissatisfied" with Arroyo's performance, compared to only 40 pct in September. Some 56 pct of respondents are against her decision to reverse an earlier pledge to bow out of politics, according to the poll. The fall in Arroyo's ratings is also due to a perception among those polled that accusations of graft against her husband, Jose Miguel Arroyo, may be true, SWS said in a report. The president has dismissed presidential aspirant Senator Panfilo Lacso's allegations that her husband had laundered millions in campaign funds. Another survey released last week by Pulse Asia Inc showed that Arroyo will likely lose in the elections if pitted against Lacson and two other contenders, popular movie star Fernando Poe Jr and former senator Raul Roco. The SWS survey also shows that Supreme Court chief justice Hilario Davide's rating is at an all-time low, with only 39 pct of those polled satisfied with his performance. A group of Congressmen failed in a bid to impeach Davide last month over corruption allegations in a standoff that threatened to plunge the country into a constitutional crisis. Davide had denied the claims. |
| Philippines' Aboitiz - no significant deficiencies in 2002 financial reports |
MANILA (AFX-ASIA) - Conglomerate Aboitiz Equity Ventures (AEV) said there were no significant deficiencies in its 2002 financial statements as alleged by the Securities and Exchange Commission (SEC). Responding to a Nov 6 letter from SEC, which cited several deficiencies in the company's financial statements, AEV said that the actual deficiencies were "not significant or substantial enough to render the said financial statements materially incomplete." The SEC cited such deficiencies as the insufficient disclosure of the impact of AEV's acquisition of control and consolidation of shipping firm William, Gothong and Aboitiz Inc (WG&A) and the deconsolidation of Visayan Electric Co Inc (VECO) in AEV's audited financial statements. The SEC also said that AEV's Statement of Management Responsibility did not comply with the form prescribed under the Securities Regulation Code (SRC), and that the account "Investment in Shares of Stocks at Equity" was not supported by a schedule as required under the SRC. In response to the SEC's findings, AEV said the consolidation of WG&A contributed 159 mln pesos or 7.2 pct to the 2002 consolidated income, and the components of that contribution were disclosed in its financial statements. It said the deconsolidation of VECO did not have an effect on the 2002 consolidated income since there was no change in the level of ownership, and that this was also explained in the statements. AEV said it has submitted a revised Statement of Management Responsibility in compliance with the additional requirements under SRC. On the alleged failure to submit supporting schedule of the account "Investment in Shares of Stocks Equity," AEV said contrary to the SEC's findings, the required schedule was also contained in its financial statements. (1 usd = 55.418 pesos) edelacruz@afxasia.com |
| Forex - Philippine peso firmer in line with stronger regionals, remittances |
MANILA (AFX-ASIA) - The peso gained further after falling sharply the previous week, in line with the across-the-board strength of most regional currencies and on the back of higher dollar inflows from overseas Filipino workers, dealers said. At 9.55 am, the peso averaged 55.426 after trading between 55.40-55.45 on volume of 22.0 mln usd. It closed at 55.49 yesterday. The US dollar has been recently battered, despite positive economic data, due to concerns about the US' trade deficit and increasing protectionism policy, dealers said. "Slowly everyday, we're seeing increased volume (of dollar sales). It's more than the usual," a local bank dealer said. Players in the spot market also shrugged off recent domestic developments such as yesterday's kidnapping of a two-year old Filipino-Chinese boy and lingering political concerns ahead of the 2004 presidential election. "The market has been getting used to these negative news, although these are not helping the peso," a dealer said. Last week, the peso fell to its historic low of 55.85 to the US dollar following Moody's Investors Service warning of a possible credit ratings downgrade a day after action star Fernando Poe Jr announced his intention to join the presidential race. The peso is expected to trade within a range of 55.40-55.50 today, with bias still on a stronger local currency, dealers said. cecille.yap@afxasia.com |
| Philippines' Prime Gaming buys back 638,400 common shares at 20 pesos each |
MANILA (AFX-ASIA) - Investment holding firm Prime Gaming Philippines Inc said it bought back 638,400 of its common shares from the open market on Dec 1 at 20 pesos each. The company is implementing a share buy-back program involving 5.5 mln common shares at a price not exceeding 20 pesos each. It said the Dec 1 share acquisition, which is equivalent to 0.0641 pct of the issued and paid-up capital stock, was financed by its retained earnings. At 9.41 am, Prime Gaming was untraded after closing at 20 pesos previously. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Bank of Philippine Islands' reinsurance unit to merge with Malayan Reinsurance |
MANILA (AFX-ASIA) - Bank of the Philippine Islands (BPI) said its unit Universal Reinsurance Corp will merge with Malayan Reinsurance Corp of the Yuchengco group, subject to regulatory approvals. "The merger is subject to the approval by the Office of the Insurance Commission and becomes effective upon the issuance by the Securities and Exchange Commission of the Certificate of Filing of Articles of Merger," BPI told the stock exchange. Universal Reinsurance is the surviving entity and will be renamed Universal Malayan Reinsurance Corp. Yuchengco group also controls Rizal Commercial Banking Corp. No other details were given. edelacruz@afxasia.com |
| Philippine govt mulls tax amnesty program before May polls - report |
MANILA (AFX-ASIA) - The government is pushing for a tax amnesty program which it wants to be in place before the May elections next year, BusinessWorld newspaper reported, citing Finance Undersecretary Grace Pulido-Tan. She said the tax amnesty measure may be passed by Congress before February, as it has been certified as urgent by President Gloria Arroyo. The report said the presidential palace had asked the Department of Finance to comment on a tax amnesty bill pending at the Senate Ways and Means Committee. The finance department is pushing for stricter rules for implementing a tax amnesty program. edelacruz@afxasia.com |
| Sale of Philippines' National Steel expected this month - report |
MANILA (AFX-ASIA) - Creditors of the National Steel Corp (NSC) and the prospective buyer of the company, Global Infrastructure Holdings Ltd, are expected to sign a sale agreement this month, the Philippine Star reported. The report quoted Philippine National Bank (PNB) president Lorenzo Tan as saying that the parties wanted to conclude the negotiations before the Christmas holidays to pave the way for the reopening of NSC's facility in Iligan province in the southern Philippines by the first quarter of 2004. PNB is one of the biggest creditors of NSC. Tan said the negotiations focused on the proposal to shorten the repayment period for NSC's obligations by the new operator to eight years from 15. edelacruz@afxasia.com |
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