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Friday, December 19, 2003
Philippines' SPI Technologies reaches no deal with PPM on tender offer
Philippine Jan-Nov budget deficit 172.2 bln pesos vs 189.7 bln target
Philippines Jan-Sept BOP deficit 783 mln usd vs surplus 751 mln
Philippines sees 2003 exports up 1.4 pct yr-on-yr; imports up 6.6 pct
Philippines' December CPI seen up 3.3 pct yr-on-yr - Neri
Philippines Q4 GDP yr-on-yr growth seen at 3.8-4.0 pct - Neri
Philippines' Ayala Land to list 63.375 mln shares Dec 23
Manila shares close up on more year-end window-dressing, telecom gains
Philippines' SPI Technologies forms partnership, secures new contracts
DATAWATCH- Philippine imports Oct rise shows pick-up in Q4 activity-Unicapital
STOCK ALERT - Philippines' Supercity Realty untraded on stock exchange debut
Philippines' NSO updates CPI base to 2000 from 1994
STOCK ALERT - Philippines' PLDT, Globe firmer on earnings outlook
Philippines Oct merchandise imports up 7.0 pct yr-on-yr
LNM Holdings increases offer for Philippines' National Steel - report
Philippines to remain under IMF post-program monitoring in 2004 - Buenaventura

Thursday, December 18, 2003
Philippines' WG&A shareholders approve stock dividend, change in name
BJCHECK Philippines' Ayala Land expects to 'do better' in 2004
Philippines' 11-month budget deficit about 172 bln pesos -acting finance chief
Philippines' Metro Pacific cuts debt further via payment-in-kind deals
Philippines' Mondragon says secured creditors want MLRC to manage Mimosa
Philippines' end-Nov forex reserves revised to 16.826 bln usd from 16.801 bln
Philippines' Jollibee Foods to list 11,034 common shares tomorrow - PSE
Philippine central bank keeps policy interest rates steady
Manila shares close firmer on window-dressing; key index at 6-week high
Philippines' RCBC appoints Santos acting treasurer from Jan 1
Philippine exchange bans trading in its shares held by Asian Capital Equities
Forex - Philippine peso firmer early on weaker dollar demand
Philippines' Music approves change in corporate name, re-organization
STOCK ALERT - Singapore's Medtecs higher after SARS concerns re-emerge
Philippines' UCPB board approves 10-year business plan - report
Moody's seen having downgrade bias towards Philippines' ratings - report
Marubeni to co-develop geothermal power plants in Indonesia - report



December 15 - 17 
December 10 -12 
December 8 - 9 
December 3 - 5 
December 1 - 2 


 

 

Philippines' SPI Technologies reaches no deal with PPM on tender offer


     MANILA (AFX-ASIA) - SPI Technologies Inc said it has reached no agreement with PPM Ventures Ltd on the principal terms and conditions of a tender offer proposed by PPM.
     Owned by Britain's Prudential plc, PPM was supposed to launch a tender offer for all the issued and to-be issued share capital of database services provider SPI later this month or early January.
     The supposed tender offer would follow PPM's move to acquire control of SPI.
     SPI chief financial officer Francisco Suarez Jr, in a letter to the stock exchange, said the exclusivity period given by the company to PPM to allow the conduct of due diligence and other activities related to PPM's proposed tender offer has lapsed without any agreement between them.
     "Accordingly, the corporate does not anticipate a tender offer being launched by PPM Ventures," he said.
     edelacruz@afxasia.com

 

Philippine Jan-Nov budget deficit 172.2 bln pesos vs 189.7 bln target


     MANILA (AFX-ASIA) - The government managed to keep its budget deficit below the ceiling in November, despite some overspending, on a sustained revenue collection effort, the Department of Finance said.
     The November deficit came in at 8.3 bln pesos, less than half the 17.8 bln target for the month.
     The lower figure helped limit the cumulative deficit for the 11 months to November to 172.2 bln pesos, below the ceiling of 189.7 bln set for the period.
     The government is now highly confident that the full-year budget deficit will come in below the ceiling of 202 bln pesos, it said.
     "The encouraging fiscal performance in 2003 is reflective of the national government's continuing efforts to maintain fiscal discipline throughout its fiscal agencies through enhanced revenue generation and prudence in government spending," Finance Secretary Juanita Amatong said.
     She attributed the government's sustained positive fiscal performance to "the great strides we have taken in instituting administrative reforms and persistent efforts to broaden the tax base."
     November revenues totaled 56.9 bln pesos, exceeding the target of 54.4 bln, while expenditures amounted to 65.2 bln pesos against the budget of 72.2 bln.
     In the 11-month period, revenues amounted to 569.7 bln pesos, 6.9 pct above the target, while expenditures exceeded the budget by 26 pct at 741.9 bln pesos.
     The Bureau of Internal Revenue collected a total of 42.3 bln pesos in November, exceeding the year-ago level and the monthly goal by 3.5 pct and 4. 6 pct, respectively.
     The Bureau of Customs revenues reached 9.0 bln pesos in November, up 10 pct from year-ago level and 2.1 pct better that its monthly target.
     Having set its sights on keeping this years's budget deficit at 4.7 pct of gross domestic product, the government intends to bring down the rate to 4. 2 pct in 2004.
     (1 usd = 55.35 pesos)
     afxmanila@afxasia.com

 

Philippines Jan-Sept BOP deficit 783 mln usd vs surplus 751 mln


     (Updating with comments from central bank governor)
     MANILA (AFX-ASIA) - The Philippines posted a balance of payments deficit of 783 mln usd for the January to September period, compared to the year-earlier's surplus of 751 mln usd, due to loan repayments, the central bank said.
     In the nine months to September, the current account surplus stood at 1. 852 bln usd, substantially lower than the year-earlier's surplus of 2.622 bln, central bank managing director for research Diwa Guinigundo said.
     Meanwhile, the central bank said it sees the BOP deficit of 446 mln usd at end-2003, lower than the earlier projection of 1.13 bln usd, on a rise in foreign borrowings.
     The 2003 current account surplus is seen at 1.68 bln usd, close to the 1. 7 bln target for the year.
     The central bank expects a 2.0 pct year-on-year growth in exports, lower than the government's projection of 5.0 pct, after receipts for Philippine-made goods failed to improve in the second half of the year. Imports are seen growing 7.0 pct for the full year.
     "We continue to reflect fairly good growth targets because the assumption here is that the fundamentals of the economy remain very strong," central bank governor Rafael Buenaventura said.
     He added the effect of the negative perception, particularly of political noises leading to the May election, on foreign direct and portfolio investments is only limited "simply because they are waiting for (presidential candidates') platforms."
     "If candidates come up with credible platforms, then people will become less nervous (about the Philippines situation)," Buenaventura said.
     For next year, the BOP deficit is seen at 660 mln usd and the current account surplus at 1.1136 bln usd.
     Central bank governor Rafael Buenaventura said the benchmark 91-day T-bill rate will likely average at 7.5-8.5 pct in 2004 on expectations the national government will source most of its financing requirements from the local market.
     (1 usd = 55.369 pesos)
     afxmanila`afxasia.com

 

Philippines sees 2003 exports up 1.4 pct yr-on-yr; imports up 6.6 pct


     MANILA (AFX-ASIA) - The Philippines will likely post a 1.4 pct year-on-year growth in exports and a 6.6 pct rise in imports, below the government's targets for the year, preliminary data from the National Economic Development Authority (NEDA) shows.
     "These emerging growth figures are based on the trends of the first nine months of the year and our forecasts for the last quarter," said NEDA director Scholastica Cororaton.
     NEDA and the central bank have both forecast 10 pct growth for exports in 2004.
     Earlier, the government reported that merchandise imports in the January to October period rose 5.0 pct year-on-year to 31.106 bln usd from 29.616 bln, while exports grew 1.0 pct to 29.489 bln usd from 29.191 bln.
     The government is, however, hoping for a rebound in exports in 2004 on the back of an expected global economic recovery to be led by the US and Japan, the Philippines' two major trading partners.
     The Philippines recorded a trade deficit of 1.62 bln usd in the January to October period.
     (1 usd = 55.369 pesos)
     afxmanila@afxasia.com

 

Philippines' December CPI seen up 3.3 pct yr-on-yr - Neri


     MANILA (AFX-ASIA) - The Philippines' consumer price index (CPI) in December is expected to rise 3.30 pct year-on-year, but unchanged from November, due to the peso's weakness and increased consumer spending for the Christmas season, Economic Planning Secretary Romulo Neri said.
     The December CPI data will be announced in early January.
     The government target for the full-year CPI in an increase of 4.5-5.5 pct, while the central bank has set a lower full-year forecast of a rise of nearly 3.0 pct.
     In the January to November period, inflation averaged 3.1 pct.
     afxmanila@afxasia.com

 

Philippines Q4 GDP yr-on-yr growth seen at 3.8-4.0 pct - Neri


     MANILA (AFX-ASIA) - The Philippines is expected to post gross domestic product growth of 3.8-4.0 pct year-on-year in the fourth quarter on improved agricultural output and a robust services sector, Economic Planning Secretary Romulo Neri said.
     The gross national product in the fourth quarter is seen growing 4.5-4.8 pct year-on-year.
     The Philippines' GDP grew 4.40 pct year-on-year in the third quarter, exceeding the government's forecast of an expansion of 3.80-4.30 pct.
     At a press conference, Neri said he remains optimistic the Philippines' full-year GDP growth will hit 4.2 pct, the lower end of the government's 4. 2-5.2 pct target. Full-year GNP growth is expected at 5.4 pct, or within the year's goal of 5.1-5.7 pct.
     Neri said the government is maintaining its 2004 GDP growth target of 4. 9-5.8 pct on the back of an expected global economic recovery, favorable weather and higher spending related to the upcoming general election.
     The GNP, or GDP plus income from abroad, is targeted to grow 5.2-6.0 pct year-on-year in 2004.
     "The country's economic fundamentals still support a stable macroeconomic environment, but some risks remain, such as expectations of higher oil prices (and) uncertainties over the change in leadership," Neri said.
     The Philippines will hold its next presidential elections in 2004.
     Neri stressed the need for presidential candidates to announce their platfor ms to clear the air of uncertainty.
     afxmanila@afxasia.com

 

Philippines' Ayala Land to list 63.375 mln shares Dec 23


     MANILA (AFX-ASIA) - Ayala Land Inc is set to list an additional 63.375 mln common shares on December 23, the Philippine Stock Exchange said.
     The shares, with a par value of 1.00 peso each, were issued to parent firm Ayala Corp in exchange for a property site in Manila's Makati business district.
     The property, which used to house the Ayala Museum and is set to be developed into a mixed residential and commercial complex, had a total appraised value of 532.35 mln pesos and was swapped at a price of 8.40 pesos per share.
     Ayala Land was unchanged at 6.00 pesos per share while Ayala Corp was up 0.10 peso at 5.30 pesos.
     (1 usd = 55.369 pesos)
     cecille.yap@afxasia.com

 

Manila shares close up on more year-end window-dressing, telecom gains


     MANILA (AFX-ASIA) - Share prices finished the day's trade at their highest closing level in six weeks on gains in telecommunications stocks, as fund managers went on a buying spree to window-dress their portfolios ahead of the year's end, dealers said.
     Wall Street's strong showing overnight also did its part to boost sentiment further, they added.
     The composite index closed up 11.47 points, or 0.81 pct, at 1,422.24 on 256.82 mln shares worth 439.28 mln pesos. It traded between 1,414.18 and 1, 424.72.
     It was the benchmark index's highest close since Nov 6, 2003, when it ended at 1,423.39.
     Gainers outnumbered losers 36 to 18, while 40 stocks closed unchanged.
     PLDT was top-traded, rising 20.00 pesos to 930 on volume of 108,370 shares.
     The second most active stock was Globe Telecom and it gained 25 pesos to 850 on 80,460 shares.
     Dealers said telecom stocks extended their advances on the back of higher earnings expectations beyond 2003, given sustained strong gains of their wireless businesses.
     "The local market's rise is part of a regional trend attributable mostly to the better-than-expected US economic data. Improving economic fundamentals in the US are expected to trickle down to export-dependent countries like the Philippines," Citiseconline.com analyst Mark Alan Canizares said.
     Accord Capital Equities analyst Ron Rodrigo said there is room for further upside, even though the market is nearing its oversold level. Resistance is seen at 1,450, which is expected to be tested in the remaining four trading days of the year, he said.
     Ayala Corp closed up 0.10 pesos at 5.30 on volume of 6.47 mln shares, while unit Ayala Land was unchanged at 6.00 on 4.8 mln shares.
     Bank of the Philippine Islands was unchanged at 46.00 on 732,300 shares.
     SM Prime was steady at 6.50.
     Metrobank shed 0.50 at 26.50.
     The all-shares index was up 4.81 points at 852.70.
     The commercial-industrial index gained 26.78 to 2,148.90.
     Property shed 0.46 to 567.01, while mining fell 0.69 to 1,621.20.
     Oil declined 0.03 to 1.21 and banking and financial services slid 0.45 to 433.50.
     (1 usd = 55.369 pesos)
     cecille.yap@afxasia.com

 

Philippines' SPI Technologies forms partnership, secures new contracts


     MANILA (AFX-ASIA) - SPI Technologies Inc said it has entered into a new partnership, won its first contract in the financial transactions processing sector and secured several new contracts, that will all help it post further growth in 2004.
     In a disclosure to the stock exchange, SPI said it has signed an agreement with KPMG's forensic technology services group to provide electronic data discovery services to Fortune 500 companies and leading US law firms, using the KPMG technology platform.
     SPI has also been taken on as KPMG's exclusive partner for all the latter's litigation coding requirements.
     The company said unit SPI Content Sciences has also signed a contract with a major US mortgage lending and insurance company, which it did not name, to provide transactional business processing outsourcing services in the area of application processing.
     SPI added it has also reached agreement with a major scientific, technical and medical publication for a "significant" back-file conversion project.
     "This is a very significant win. It solidifies SPI's position as the premier provider of conversion services to the scientific technical medical market," SPI Technologies president and chief executive officer Ernest Cu said.
     Another unit, SPI Publisher Services, reported it has effectively doubled its volume of business with main client Elsevier Science. It is also close to an agreement with another major scientific technical medical publication for the provision of ongoing journal production services, which will generate additional revenue of around 1.0 mln usd.
     The company said the unit is on track to achieve record revenue of 7.6 mln usd in 2003 and is poised to register 35 pct growth in 2004.
     "The company's medium-term prospects continue to strengthen with these new contracts, partnerships and successful entry into new vertical markets. We are well positioned to make 2004 even better than our record 2003," Cu said.
     (1 usd = 55.369 pesos)
     cecille.yap@afxasia.com

 

DATAWATCH- Philippine imports Oct rise shows pick-up in Q4 activity-Unicapital


     MANILA (AFX-ASIA) - The increase in the country's October merchandise imports signals a pick-up in economic activity in the last quarter of the year, aided by the recovery in the economies of the country's major trading partners, Unicapital Securities research head Elena Ponceca said.
     Increased imports will likely translate into higher exports in the coming months, she said, as some of the raw materials shipped into the country are used to produce export items.
     Merchandise imports rose 7.0 pct year-on-year to 3.154 bln usd in October, following a 4.5 pct year-on-year fall in September, the National Statistics Office said.
     The growth was again led by electronic products, which accounted for 47.4 pct of October's import bill, rising 8.9 pct year-on-year to 1.496 bln usd.
     In the first ten months of the year, merchandise imports rose 5.0 pct to 31.106 bln usd from 29.616 bln in the same period last year.
     The NSO said the Philippines recorded a trade surplus of 69.0 mln usd in October, and a trade deficit of 1.62 bln usd in the January to October period.
     "I think this growth (in imports) will be sustained for the rest of the year and, going into 2004, as we are now seeing recovery signs in the US and Japan," Ponceca said.
     She said the expected continued recovery in the global economy in 2004 led by the US as well as Japan should benefit the Philippines.
     The Philippines' "sound" economic fundamentals give it a "fighting chance" to post higher growth next year despite an uncertain political environment in the run-up to the May elections, Ponceca added.
     (1 usd = 55.361 pesos)
     edelacruz@afxasia.com

 

STOCK ALERT - Philippines' Supercity Realty untraded on stock exchange debut


     MANILA (AFX-ASIA) - Supercity Realty Development Corp, which made its trading debut on the Philippines Stock Exchange today, was untraded mid-session on a lack of investor interest, dealers said.
     Supercity's launched its initial public offering at 1.10 pesos per share.
     "The market has been doing well and it's the best time to do an initial public offering. However, as people are tied up with their pre-Christmas preparations, there's no appetite for the stock at the moment," Accord Capital Equities analyst Ron Rodrigo said.
     Supercity is a mass housing developer with focus on the so-called Calabarzon area, which comprises the provinces of Cavite, Laguna, Batangas, Quezon and Bulacan.
     Earlier, Supercity said it will use the proceeds of 50 mln pesos from its IPO to set up a plant to mass produce ready-mix concrete and major raw materials for land development, purchase capital equipment, as well as repay loans and meet working capital needs.
     (1 usd = 55.369 pesos)
     cecille.yap@afxasia.com

 

Philippines' NSO updates CPI base to 2000 from 1994


     MANILA (AFX-ASIA) - The National Statistics Office said it will update the base year of its consumer price index to 2000, from the current 1994 level, to reflect the changes in the consumption patterns of Filipinos.
     It said it will start using 2000 as the base year in its January 2004 data, to be released on Feb 5.
     "It was necessary to shift the reference period to a more recent base year in order for the CPI (consumer price index) to become more reflective of existing conditions," NSO Administrator Carmelita Ericta said.
     She added that since the last time the base was updated, "economic, social and technological changes have influenced Filipinos' tastes and preferences and these, in effect, may have resulted in changes in the consumption patterns of the population."
     The CPI re-basing to year 2000 involves updating the basket of goods and services and the weighting assigned to each category.
     The food, beverages and tobacco (FBT) commodity group will be assigned a 50.031-points weighting, lower than the current rating of 55.118 pts.
     The weighting on non-food items - such as clothing, housing repairs and rentals - will be increased to 49.969 from 44.882.
     The fuel, light and water index will be given a 6.950 rating from the current 5.737.
     cecille.yap@afxasia.com

 

STOCK ALERT - Philippines' PLDT, Globe firmer on earnings outlook


     MANILA (AFX-ASIA) - Shares of Philippine Long Distance Telephone and Globe Telecom were firmer in early trade, extending gains as investors window-dress their portfolios and accumulate stocks which are expected to post positive earnings beyond 2003, dealers said.
     PLDT also rose following a 0.45 usd gain in its New York-listed American Depositary Receipts last night to close at 16.55.
     Top-traded Globe was up 10.00 pesos at 835 on 51,570 shares.
     PLDT rose 25 to 935 on 26,140 shares.
     Both companies are seen sustaining strong gains from their wireless businesses in 2004.
     "Investors are positioning in these stocks due to their good earnings potential," said Elena Ponceca, head of research at Unicapital Securities Inc.
     "PLDT is still cheap if you look at its price-to-earnings ratio," said Accord Capital Equities research consultant Ron Rodrigo, who has a target price of 1,000 pesos for the stock up to the first quarter of 2004.
     (1 usd = 55.35 pesos)
     edelacruz@afxasia.com

 

Philippines Oct merchandise imports up 7.0 pct yr-on-yr


     MANILA (AFX-ASIA) - Merchandise imports rose 7.0 pct year-on-year to 3. 154 bln usd in October, the National Statistics Office (NSO) said.
     The NSO earlier reported a 4.5 pct year-on-year fall in merchandise imports in September.
     In the first ten months of the year, merchandise imports rose 5.0 pct to 31.106 bln usd from 29.616 bln in the same period last year.
     The NSO said the Philippines recorded a trade surplus of 69.0 mln usd in October, and a trade deficit of 1.62 bln usd in the January to October period.
     Imports of electronic products, which accounted for 47.4 pct of October's import bill, rose 8.9 pct year-on-year to 1.496 bln usd.
     afxmanila@afxasia.com

 

LNM Holdings increases offer for Philippines' National Steel - report


     MANILA (AFX-ASIA) - London-based LNM Holdings NV has decided to increase its upfront payment offer for the rehabilitation and reopening of the Philippines' National Steel Corp (NSC) by 500 mln pesos to 2.5 bln, BusinessWorld newspaper reported.
     The report quoted LNM general manager Eric Tierie as saying the company is also prepared to invest another 4.0 bln pesos for repairs, upgrades and working capital in the first year of operations.
     The move follows an announcement that NSC's management committee, composed of representatives of its creditors, has accepted an improved offer from India's Global Infrastructure Holdings Ltd to rehabilitate and operate the steel firm.
     The Securities Exchange Commission-appointed NSC liquidator, lawyer Danilo Concepcion, said earlier the committee had "agreed to submit to their (the NSC creditors') respective boards the improved terms and conditions for approval."
     He declined to give details about the improved offer from Global Infrastructure, but recent newspaper reports said Global Infrastructure had increased its upfront payment offer for NSC to 1.0 bln pesos from 655 mln.
     Global Infrastructure is now reportedly willing to pay 12.25 bln pesos for the debt-saddled firm, up from its previous offer of 11.905 bln pesos
     (1 usd = 55.30 pesos)
     edelacruz@afxasia.com

 

Philippines to remain under IMF post-program monitoring in 2004 - Buenaventura


     MANILA (AFX-ASIA) - The Philippines will remain under a post-program monitoring arrangement with the International Monetary Fund in 2004, central bank governor Rafael Buenaventura said.
     He said the arrangement with the IMF will give "extra comfort" to the international financial community that the country will remain committed to undertaking structural reforms recommended by the Fund, particularly on the fiscal front.
     Being under the IMF watch for one more year "is not a bad idea while we try to complete our reform program," Buenaventura said.
     The current arrangement with the IMF follows several Fund-sponsored programs accompanied by financial assistance.
     An IMF mission has just concluded its periodic review of the Philippine economy, and has decided to maintain its 2003 GDP growth forecast of 4.00 pct for the country.
     The IMF, however, upgraded its 2004 GDP growth outlook to 4.25 pct - from an earlier projection of a 4.00 pct growth - on the back of a widely-anticipated global economic recovery.
     The government is aiming for 2003 GDP growth of 4.20-5.20 pct after 4.40 pct expansion last year, and 4.90-5.80 pct in 2004.
     IMF senior adviser Masahiko Takeda, who heads the mission to Manila, had said on Wednesday that the Philippines will be staying under its post-program monitoring, which was supposed to end this year.
     He said the IMF still sees the need for continued policy dialog with the government, but denied that the Philippines is trying to secure a loan from the Fund.
     Acting Finance Secretary Juanita Amatong said staying under the post-program monitoring arrangement with the IMF is no big deal.
     "What is important is that we're not borrowing from the IMF ... that we're not going to tap any loans," she said.
     The IMF mission has concluded that periodic financial market pressures pose a continuing challenge to macroeconomic policies, citing a series of events since the July 27 failed military mutiny as leading to renewed pressure on the peso, sovereign bond spreads and domestic interest rates.
     It added implementing fiscal measures that will reduce public sector deficits and indebtedness should be prioritized.
     The IMF, meanwhile, has cautioned the government against adopting a new tax amnesty program, saying such a move will not have a positive long-term impact on revenues.
     afxmanila@afxasia.com

 

Philippines' WG&A shareholders approve stock dividend, change in name


     MANILA (AFX-ASIA) - Stockholders of shipping firm William, Gothong & Aboitiz Inc (WGA) approved at a special meeting the declaration of stock dividends in the form of common shares and a change in corporate name to Aboitiz Transport System Corp.
     Shareholders also approved a plan to increase its authorized capital stock to 3.27 bln pesos from 1.78 bln by increasing the number of common shares to accommodate the stock dividend.
     The company will issue one common share for every four shares held, equivalent to 25 pct or a total of 393.24 mln common shares, to stockholders of record as of a date to be determined by its board of directors.
     (1 usd = 55.30 pesos)
     edelacruz@afxasia.com

 

BJCHECK Philippines' Ayala Land expects to 'do better' in 2004


     MANILA (AFX-ASIA) - Property developer Ayala Land Inc expects to "do better" in 2004, with its retail and mid-income housing business leading growth, said company vice-president and comptroller Jaime Ysmael.
     "The growth will come from middle-income and mass housing, and also from our commercial (shopping mall) operations," he told reporters, but gave no specific figures.
     The company is still finalizing its capital expenditure budget for next year but Ysmael said the amount would likely be the same as this year, or around 7.9 bln pesos.
     Ysmael earlier said Ayala Land was "hoping" its 2003 net profit would exceed last year's level of 2.52 bln pesos despite what had been a difficult year.
     The Ayala Corp unit booked a third-quarter to September net profit of 604 mln pesos compared with 550 mln in the same period last year, while nine months to September net profit increased to 1.71 bln pesos from 1.62 bln a year ago.
     Earnings improved thanks to higher revenues from rents and land sales.
     (1 usd = 55.30 pesos)
     afxmanila@afxasia.com

 

Philippines' 11-month budget deficit about 172 bln pesos -acting finance chief


     MANILA (AFX-ASIA) - The government's budget deficit stood at around 172 bln pesos in the 11 months to November, around 30.0-bln peso below the full-year ceiling of 202 bln, Department of Finance officer-in-charge Juanita Amatong said.
     She said the government has managed to keep its budget deficit below the ceiling due to the sustained positive revenue performance of its collection agencies, notwithstanding some "slight overspending" in November.
     Amatong said it is unlikely the budget deficit will widen by as much as 30.0 bln pesos in December.
     The more detailed November fiscal figures will be released tomorrow.
     (1 usd = 55.30 pesos)
     afxmanila@afxasia.com

 

Philippines' Metro Pacific cuts debt further via payment-in-kind deals


     MANILA (AFX-ASIA) - Metro Pacific Corp, the local holding company of Hong Kong-listed First Pacific Co Ltd, said it has settled another 500 mln pesos worth of debts through a payment-in-kind arrangement with creditors.
     This brings down Metro Pacific's outstanding debts to around 800-900 mln pesos - from as much as 12.9 bln pesos in early 2002 - company president Jose Maria Lim told reporters.
     
     "We are on track with our targets," he said.
     "We're trying to bring debts down to a level which can be sustained by our cash flows."
     Metro Pacific, which has interests in property development and shipping, was aiming to bring down its debts to less than 1.0 bln pesos this year.
     After resolving the biggest portion of its 6 bln pesos worth of debt, when it sold its controlling stake in Bonifacio Land Corp to the Ayala-Campos group, Metro Pacific has also restructured some 2.0 bln pesos worth of debt with Metropolitan Bank and Trust Co (Metrobank) and wiped out other debt through payment-in-kind deals, using properties.
     "For the creditors, (the payment-in-kind arrangement) is a way to get repaid now, instead of waiting for 10 to 15 years (for repayment) if the loans were instead restructured," Lim said.
     After embarking on a further balance sheet clean-up, Metro Pacific will focus on developing its assets in 2004, he said.
     He sees Metro Pacific ending the year with a net profit of over 100 mln pesos, in line with the results reported for the first nine months.
     It booked net profit of 107.7 mln pesos in the nine months to September, a turnaround from a net loss of 8.6 bln pesos in the same period last year.
     It posted a net loss of 11.87 bln pesos in the whole of 2002.
     Metro Pacific's profit performance for 2004 will depend on three factors, Lim said.
     These are namely how fast it can clean up the balance sheet of subsidiaries, the entry of a new strategic partner for shipping unit Negros Navigation Co, and how fast new businesses can be launched.
     (1 usd = 55.30 pesos)
     afxmanila@afxasia.com

 

Philippines' Mondragon says secured creditors want MLRC to manage Mimosa


     MANILA (AFX-ASIA) - Mondragon International Philippines Inc said its secured creditors, led by Metropolitan Bank and Trust Co (Metrobank), want its unit Mondragon Leisure and Resorts Corp (MLRC) to manage Mimosa Leisure Estate in the former Clark airbase in Pampanga province.
     The state-run Clark Development Corp (CDC) took over the operations of the 25-hectare resort after Mondragon failed to pay rental arrears amounting to 450 mln pesos.
     In a Dec 9 letter to the CDC, a copy of which was submitted to the Philippine Stock Exchange, Mondragon chairman and chief executive officer Jose Antonio Gonzalez said Mondragon's secured banks "prefer that subject to CDC's approval, MLRC undertake the management of Mimosa immediately."
     "Metrobank is prepared to secure unanimity in this respect," he said.
     Metrobank officials could not be reached for comment.
     MLRC is asking the CDC to pay as much as 470 mln pesos in back rent for the alleged unauthorized use of certain assets at Mimosa Leisure Estate.
     Gonzalez also asked CDC to include Mondragon when scouting for new investors to help turn around the leisure estate.
     "Unless Mondragon is part of the equation, this (move to invite new investors) shall be opposed by us vigorously.
     Mondragon owes creditors some 7.0 bln pesos.
     (1 usd = 55.33 pesos)
     edelacruz@afxasia.com

 

Philippines' end-Nov forex reserves revised to 16.826 bln usd from 16.801 bln


     MANILA (AFX-ASIA) - The country's gross international reserves (GIR) stood at a revised 16.826 bln usd at end-November compared with 16.877 bln at end-October, the central bank's website shows.
     The central bank earlier reported the end-November GIR at 16.801 bln usd, down due to the debt service requirements of the government and the central bank.
     The central bank is maintaining a GIR year-end target of 14-15 bln usd, but sees it ending the year at close to 16 bln.
     The earlier-reported end-November GIR level was adequate to cover about 4. 7 months of imports of goods and payments of services and income, according to the central bank.
     It was also 2.8 times the country's short-term debt based on original maturity and 1.4 times based on residual maturity.
     edelacruz@afxasia.com

 

Philippines' Jollibee Foods to list 11,034 common shares tomorrow - PSE


     MANILA (AFX-ASIA) - Jollibee Foods Corp will list an additional 11,034 common shares tomorrow, the Philippine Stock Exchange said.
     The shares were made available from the tandem stock purchase and option plan of the country's largest fastfood chain operator.
     Jollibee closed today unchanged at 17.25 pesos.
     (1 usd = 55.33 pesos)
     edelacruz@afxasia.com

 

Philippine central bank keeps policy interest rates steady


     MANILA (AFX-ASIA) - The Monetary Board voted to leave the central bank's overnight interest rates unchanged at today's monthly policy review, central bank governor Rafael Buenaventura said.
     The overnight rates stay at 6.75 pct for borrowing and 9.00 pct for lending.
     edelacruz@afxasia.com

 

Manila shares close firmer on window-dressing; key index at 6-week high


     MANILA (AFX-ASIA) - Share prices closed firmer in a mixed session, with year-end window-dressing and investors buying stocks with positive earnings prospects for the year ahead, pushing the key index to its highest level in six weeks, dealers said.
     Buying accelerated when the index broke the 1,400-point level, they added.
     The composite index closed up 12.21 points, or 0.87 pct, at 1,410.77 on volume of 208.35 mln shares valued at 627.35 mln pesos. It traded between 1, 396.27 and 1,411.55.
     It is the index's highest finish since Nov 7, when it closed at 1,413.11.
     In the broader market, losers led gainers 25 to 23, while 40 stocks where unchanged.
     Gains in telecom stocks led by Philippine Long Distance Telephone and in major property stocks pushed the market higher.
     (1 usd = 55.33 pesos)
     edelacruz@afxasia.com

 

Philippines' RCBC appoints Santos acting treasurer from Jan 1


     MANILA (AFX-ASIA) - Rizal Commercial Banking Corp (RCBC) said it has appointed board director Susanne Santos as concurrent acting treasurer effective Jan 1.
     She will replace Jaime Panganiban, who has tendered his resignation effective Dec 31.
     The bank also announced the resignation of Jorge Payawal as executive vice president and chief risk officer effective Dec 31.
     It said it has designated first vice president Narciso Erana as officer-in-charge of the treasury department and vice president Joseph Monzon as officer-in-charge of corporate risk management services department effective Jan 1.
     edelacruz@afxasia.com

 

Philippine exchange bans trading in its shares held by Asian Capital Equities


     MANILA (AFX-ASIA) - Trading in Philippine Stock Exchange shares held by Asian Capital Equities has been suspended until Asian Capital settles its liabilities to all its clients, the PSE said.
     The move follows the Securities and Exchange Commission's take over of the brokerage on allegations it violated the Securities Regulation Code.
     "In accordance with SEC take-over order dated Nov 27 2003, PSE has been directed to preserve the assets of Asian Capital Equities Inc for the protection of their client's interests," the PSE said in a memorandum to brokers.
     "In this regard, PSE shares in the name of Asian Capital Equities Inc cannot be traded, transferred or conveyed in any manner or form until after all its liabilities to all clients have been settled," it added.
     It directed traders to report to the PSE's compliance and surveillance group any query or attempt to sell these shares.
     edelacruz@afxasia.com

 

Forex - Philippine peso firmer early on weaker dollar demand


     MANILA (AFX-ASIA) - The peso regained some ground in early trade on weak demand for US dollars, dealers said.
     They said remittances from Filipinos abroad also continued to flow into the market, albeit thinner than in previous days, while the US dollar was also generally weaker globally.
     At 9.57 am, the peso averaged 55.332 to the dollar after hitting a high of 55.300 on volume of 16.4 mln usd. It closed at 55.420 yesterday.
     "Demand (for dollars) is getting weaker and, globally, the dollar is also weaker," a commercial bank dealer said.
     He said he expects the dollar to find support at 55.200, while another dealer sees it at 55.250.
     The second dealer said the central bank has not been in the market so far, unlike in some sessions previously when it was seen accumulating dollars.
     The dealer said the central bank could be trying to boost its dollar reserves for debt payments in the coming months, while, at the same time, keeping the peso weak in support of exporters.
     However, this could not be confirmed with the central bank, which has in the past declined to disclose any of its activities in the foreign exchange market.
     edelacruz@afxasia.com

 

Philippines' Music approves change in corporate name, re-organization


     MANILA (AFX-ASIA) - Music Corp said shareholders have approved a change in the company's name to Music Semiconductors Corp and a plan to raise capital of between 60 mln and 90 mln pesos through an issue of new shares.
     At an annual meeting yesterday, shareholders also approved the change in the company's primary purpose to a semiconductor manufacturing entity from a holding firm.
     Music said it aims to eliminate completely its capital deficiency and to record a capital surplus come mid-2004 in order to avoid being de-listed from the Philippine Stock Exchange.
     The company earlier said it 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 = 55.42 pesos)
     edelacruz@afxasia.com

 

STOCK ALERT - Singapore's Medtecs higher after SARS concerns re-emerge


     SINGAPORE (AFX-ASIA) - Shares of Medtecs International Corp were higher on re-emergence of SARS concerns after 70 Singaporeans were quarantined at their homes after coming into contact with a SARS-infected Taiwanese man who had visited Singapore recently, dealers said.
     Medtecs, which makes surgical attire and medical bandages, was up 0.010 sgd or 4.08 pct at 0.255 with 154,000 shares traded.
     (1 usd = 1.70 sgd)
     daryl.loo@afxasia.com

 

Philippines' UCPB board approves 10-year business plan - report


     MANILA (AFX-ASIA) - United Coconut Planters Bank (UCPB) board of directors has approved, in principle, a 10-year business plan calling for an aggressive build-up in deposits and a significant reduction in the bank's non-performing assets, the Philippine Daily Inquirer reported.
     The report quoted UCPB chairman Deogracias Vistan as saying a "very good plan" plan has been drawn up to rehabilitate the bank, which has been at the center of an ownership dispute between the government and businessman Eduardo Cojuangco.
     The report said UCPB will submit the business plan to the Philippine Deposit Insurance Corp and the central bank's Monetary Board before the end of the year.
     edelacruz@afxasia.com

 

Moody's seen having downgrade bias towards Philippines' ratings - report


     MANILA (AFX-ASIA) - Moody's Investors Service may downgrade its ratings on the Philippines following former finance secretary Jose Isidro Camacho's remark that the country has plunged into a "fiscal crisis", the Philippine Star reported, citing unidentified government sources.
     However, Corazon Guidote, managing director of the government's Investors Relations Office, said it is "very hard to read what (Moody's) final decision will be."
     She said there appears to be a "50 pct" chance of a downgrade.
     The agency has just concluded its review of the Philippines' ratings and, according to Guidote, was initially seen as having a "negative bias" towards the country.
     The Philippine Daily Inquirer, however, cited Guidote as saying Moody's believes the country is far from being in a fiscal crisis.
     The agency, nevertheless, has warned that the prevailing political risks are a cause for concern and will have a big say in future ratings reviews.
     The reports said Moody's will announce its decision as on whether or not it will downgrade the Philippines' ratings early next year.
     Last month, Moody's announced that it had placed on review for possible downgrade the Philippines' long-term foreign and local currency ceilings and ratings, warning that heightened political uncertainties in the run-up to the May elections had begun to have adverse consequences for the government's financial position and the overall economy.
     edelacruz@afxasia.com

 

Marubeni to co-develop geothermal power plants in Indonesia - report


     TOKYO (AFX-ASIA) - Marubeni Corp will jointly develop geothermal power plants in Indonesia with state-run oil companies of that country and the Philippines, the Nihon Keizai Shimbun reported, without citing sources.
     Feasibility studies on geothermal plant operations in three locations in Indonesia are to be conducted, with construction of the plants to begin as early as fiscal 2004, the newspaper said.
     Marubeni signed a memorandum on the project in Tokyo on Wednesday with Indonesia's Pertamina and Philippine National Oil Co Ltd, with the three partners to set up a special purpose company to handle the feasibility studies, the report said.

 


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