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Wednesday, December 24, 2003
Philippines
economic and corporate news summary RSD93
Philippines
to block some US beef imports after mad cow case
Philippine
prosecutors oppose Estrada's release for medical treatment in US
Philippines
watching US mad cow case 'very closely'
Tuesday, December 23, 2003
Philippines'
PNOC unit signs exploration deal with PetroEnergy, Petronas
Philippine
court allows Estrada to seek medical treatment in US
Forex
- Philippine peso closes at 3-week low on further short-covering
Philippines'
Magnum Holdings approves stock right offer of 14.96 mln shares
Philippine
Seven Corp chairman transfers 8.0 pct stake to his children
Nokia
wins another GSM/EDGE network equipment order from Globe Telecom
OUTLOOK
- Philippine politics seen drag on equities market in early 2004
Philippines'
A Soriano Corp to sell 35 pct stake in Mindanao Container
Philippines'
wooden-hulled ships are island lifelines despite risks - official
Manila
shares close up on window-dressing; profit-taking hits PLDT
Philippine
banks end-Oct NPL ratio 15.16 pct vs Sept's 14.49 pct
STOCK
ALERT - Philippines' Petron extends gains on Napocor fuel supply deals
STOCKWATCH
- Philippines' PLDT gains on ADR rise, debt cut plan via Smart IPO
Philippines'
SPI Tech buys back additional 400,000 shares at 13 pesos each
Philippines'
Meralco allowed to proceed with rate hike Jan 1
Malaysian
cargo ship rescues 20 from Philippines ferry disaster - navy
Monday, December 22, 2003
Philippine
end-2003 forex reserves over 16 bln usd, no boost for peso
Philippines'
PLDT CEO sees unit Smart IPO raising around 600 mln usd
Philippines
sees 2004 FDI at 1.09 bln usd, portfolio inflows at 3.3 bln usd
Philippines
puts half of Malampaya project stake on auction block
Philippines
movie icon Poe formally accepts presidential nomination - report
Manila
shares close slightly weaker on profit-taking
Philippines names
new foreign secretary
Philippine
coast guard says ferry with more than 70 people missing
STOCK
ALERT - Philippines' PLDT gains on window-dressing, debt cut plan
STOCK
ALERT - Philippines' Jollibee Foods firmer on earnings prospects
Philippines'
Export and Industry Bank to reactivate Urbancorp Bank
Philippines'
SPI Technologies begins buying back shares
Philipines'
Fil-Estate Land, Union Bank reach loan payment deal
Philippine
government sets 4-5 pct inflation target for 2005
Philippine
Airlines-Air Philippines merger plan scrapped - report
Philippines'
Meralco seeks 0.1852 pesos/kwh cut in generation rate - report
Philippines'
Music Semiconductor to pay 1.2 mln usd debt in 2004 - report
Philippines'
PLDT to cut debts by 400-450 mln usd in 2004 - report
200
feared dead in Philippine landslides as rescuers race against time
Philippines'
Republic Cement to list 1.54 bln common shares on Dec 23 -PSE
Philippines
appoints SGV chairman Purisima as trade secretary
December 18 - 19
December 15 - 17
December 10 -12
December 8 - 9
December
3 - 5
December
1 - 2
| Philippines economic and corporate news summary RSD93 |
BEIJING (AFX-ASIA) - A summary of Philippine economic and corporate news at 1000 GMT -SATS to spend 1 bln rgt on Senai airport expansion -Ralco proposes 1-for-2 bonus issue, rights issue with free warrants -Sunway Infrastructure takes up 100 mln SILK new shrs at 100 mln rgt -Cosway wins further 6 months to meet public float rule |
| Philippines to block some US beef imports after mad cow case |
MANILA (AFX-ASIA) - The Philippines will block the importation of some US beef products but will not impose a blanket ban after the detection of a case of mad cow disease in America, agriculture officials said. "We just want to reassure the consuming public that our meat here is safe, " Agriculture Secretary Luis Lorenzo told a press conference. The United States disclosed yesterday a single cow believed infected with mad cow disease has been found in the northwestern state of Washington. Lorenzo said none of the beef in the Philippines comes from the place where the infected animal was detected. "We believe they (US authorities) are taking all the necessary procedures, " Lorenzo said. He said there is no need for a blanket ban on US beef but added that quarantine officials will likely restrict the importation of certain kinds of American beef products, particularly meat that has not been de-boned. Agriculture Undersecretary Cesar Drilon said the Philippines will restrict importation of meat with bones as well as offal and internal organs. The mad cow disease is believed to be spread to humans through the consumption of brains and the spine of infected animals. US embassy counsellor Ronald Post said US authorities have quarantined the area where the case of mad cow disease was detected, adding his government will be "totally transparent" in dealing with the disease. Drilon said the Philippines imported about 2,800 tonnes of beef from the United States this year, amounting to only about eight percent of total beef imports. Most of the country's imported beef comes from Brazil and Australia, he added. |
| Philippine prosecutors oppose Estrada's release for medical treatment in US |
MANILA (AFX-ASIA) - Philippine government prosecutors said Wednesday they would seek a Supreme Court ruling to block the release of ex-president Joseph Estrada for three months to get medical treatment in the United States. "We might ask for a temporary restraining order," chief special prosecutor Dennis Villa Ignacio said. He was speaking a day after a special anti-graft court, which is trying Estrada on charges of massive corruption, agreed to release him for medical treatment. Villa Ignacio warned that once Estrada reaches the United States, he would no longer be bound by the court's jurisdiction or by any conditions it sets for his three month furlough. The prosecutors will file a motion with the Sandiganbayan anti-graft court on Monday, asking it to suspend its ruling allowing Estrada's release. They would file another motion, requesting reconsideration of the decision, Villa Ignacio said. Estrada, who was ousted by a military-backed popular revolt in 2001 amid allegations of massive corruption, obtained permission from the Sandiganbayan court to have his arthritic knees operated on in the United States. Estrada has to deposit a one mln peso bond and be accompanied by four Filipino policemen to ensure he does not escape, the court said. The court said Estrada should return to the Philippines by the end of March to resume his trial on charges he plundered some 80 mln usd from state coffers during his 30 months in office. However, Villa Ignacio said there was nothing to stop Estrada from travelling wherever he wants when he gets to the United States. Private prosecutor Marichu Lambino warned that Estrada's escorts would not be legally allowed to restrain the deposed leader once he is in the United States. "Once he is there (in America), he can go to the Bahamas. The court has allowed a person charged with a capital offense to escape," Lambino said. However Archbishop Fernando Capalla, the head of the influential Catholic Bishops Conference of the Philippines on Wednesday, endorsed the decision to allow Estrada to leave. "I join many of our fellow believers in happily thanking the court for its humane and compassionate gesture which is in tune with the spirit of Christmas," said Capalla. Church leaders played a key role in the sparking the uprising that toppled Estrada and they still wield influence in this largely Catholic nation. Critics have accused President Gloria Arroyo of agreeing to Estrada's departure to soften opposition ahead of the May presidential elections where she will face key Estrada ally, Fernando Poe. |
| Philippines watching US mad cow case 'very closely' |
MANILA (AFX-ASIA) - The Philippines is closely monitoring the suspected case of mad cow disease in the United States but has not ordered a suspension of imports, Agriculture Secretary Luis Lorenzo said today. "We've been in touch with the US government and we're watching very closely," Lorenzo told Agence France Presse following reports that a single cow believed infected with the mad cow disease had been found in the northwestern US state of Washington. However Lorenzo said the Philippines had not suspended beef imports from the United States. It is not immediately clear how much US beef is imported into the country. |
| Philippines' PNOC unit signs exploration deal with PetroEnergy, Petronas |
MANILA (AFX-ASIA) - PNOC Exploration Corp said it has signed an agreement with PetroEnergy Resources Corp and Petronas Carigali Overseas Bhd for an oil and gas exploration project in offshore Mindoro. PNOC Exploration, a unit of state-owned Philippine National Oil Co, said the Mindoro block is currently covered by Geophysical Survey and Exploration Contract (GSEC) No. 100 with the Department of Energy. It said it will file for a new GSEC with the DoE to replace GSEC 100, which will expire on Jan 13. Under the agreement, the partners will drill one exploratory well and an optional well in the contract area. PNOC Exploration gave no financial details of the project. afxmanila@afxasia.com |
| Philippine court allows Estrada to seek medical treatment in US |
MANILA (AFX-ASIA) - A Philippine court released former president Joseph Estrada from detention for three months to allow him to seek medical treatment in the United States. Estrada, who was ousted by a military-backed popular revolt in 2001 amid allegations of massive corruption, had sought permission from the Sandiganbayan anti-graft court to have his arthritic knees operated on in the United States. Estrada has to deposit a 1 mln peso bond and be accompanied by four Filipino policemen to ensure he will not escape, the court said. The court said Estrada should be back by the end of March to resume his trial on charges he plundered some 80 mln usd from state coffers during his 30 months in office. President Gloria Arroyo's spokesman Ignacio Bunyes said the government welcomes the decision on humanitarian grounds. "We respect the decision of the court," Bunye said. "The court acted in its independent and enlightened judgment after a close study of the issues and thought this was the most judicious course of action." The court's decision came a month after Arroyo called for national reconciliation and sent fence-mending feelers to her rivals, including Estrada's camp. Critics said the move is a bid to soften opposition to Arroyo ahead of the May 2004 presidential polls, in which she is seeking a second term. Estrada remains the de facto head of the opposition and still wields considerable influence despite being detained. Some 10,000 Estrada supporters last month clashed with police in Manila's financial center of Makati, calling for Arroyo's ouster, and the government remains wary of alleged destabilization moves linked to political figures close to the former president. Estrada's close friend, movie icon Fernando Poe, yesterday also formally accepted the opposition's nomination to become its standard bearer for the presidential race. Poe has been beating Arroyo in recent surveys. (1 usd = 55.55 pesos) |
| Forex - Philippine peso closes at 3-week low on further short-covering |
MANILA (AFX-ASIA) - The peso extended its fall, closing at a three-week low as banks and some corporates, including oil companies, further covered their short US dollar positions ahead of the extended Christmas holidays, dealers said. The central bank was seen in the market unloading dollars to support the peso, they added. The peso closed at the day's low of 55.590 after trading at a high of 55. 500, its closing level yesterday. It is the peso's weakest finish since Nov 28, when it closed at 55.730. "There were a lot of last-minute buyers (of dollars), including oil companies, to cover their short positions and requirements," a commercial bank dealer said. Philippine financial markets are closed from tomorrow and trading will resume on Monday. "The central bank was seen supporting the peso at 55.550 early in the session, and it likely sold more than 20 mln usd today, but demand (for the dollar) was more than supply." Although central bank governor Rafael Buenaventura has projected that the peso will likely settle at around 55.50 by year-end, the dealer said the local unit may close at a weaker level. "The peso will likely be at current levels by next week, before we enter a new year," the dealer said. edelacruz@afxasia.com |
| Philippines' Magnum Holdings approves stock right offer of 14.96 mln shares |
MANILA (AFX-ASIA) - Magnum Holdings Inc said its shareholders have approved management's proposal for a rights offering involving 14.96 mln shares. Of the shares to be offered, some 5 mln should cover the company's negative equity and sustain its operations next year, the company said. Magnum gave no other details in its statement to the stock exchange. The company is engaged in acquiring and disposing of properties and securities. edelacruz@afxasia.com |
| Philippine Seven Corp chairman transfers 8.0 pct stake to his children |
MANILA (AFX-ASIA) - Philippine Seven Corp, the local operator of 7-Eleven convenience stores, said its chairman, Vicente Paterno, has transferred an 8. 0-pct stake in the company to his five children. Paterno, who still owns 2.3 pct in Philippine Seven, will however continue to vote his and his children's shares as a block, accounting for a 10.3 pct interest. Transferred were 18.83 mln Philippine Seven common shares at a purchase price of 3.00 pesos each. The transaction was undertaken on Dec 18 via a cross sale through the Philippine Stock Exchange. "Simultaneous with the sale, a voting trust agreement was executed by (Paterno's children) in favor of Mr Vicente Paterno for the said 18,839,754 Philippine Seven shares," the company told the stock exchange. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| Nokia wins another GSM/EDGE network equipment order from Globe Telecom |
HELSINKI (AFX) - Nokia Corp said it won an order for GSM/EDGE equipment from Philippine operator Globe Telecom Inc for its phase 10 network expansion project, without disclosing financial details. Deliveries are expected to start in first quarter 2004, with equipment put into operation based on a progressive schedule, it said. This deal follows the recent announcement of Nokia's EDGE network solutions delivery to Globe's network in Manila. Globe's phase 10 network expansion project is aimed at providing coverage to rural areas and adding capacity to the network, it said. Globe Telecom's primary shareholders are Ayala Corp and Singapore Telecom International. tarmo.virki@afxnews.com |
| OUTLOOK - Philippine politics seen drag on equities market in early 2004 |
---- by Enrico dela Cruz ---- MANILA (AFX-ASIA) - Politics will play an increasingly significant part in setting the direction for the Philippine equities market in 2004, analysts said. They said the uncertain political environment will likely be a major drag on the local market, particularly in the first half of next year when investors are expected to take a more cautious stance, while waiting for the political dust to clear. Major investment decisions will depend on the outcome of the May national elections, they said, particularly on the winners' economic and political platforms. "Political developments in the run-up to the May polls will dictate the direction for the local markets particularly in the early part of next year," said Harry Liu, president of Summit Securities Inc. Although the likelihood of another movie icon -- Fernando Poe Jr -- becoming the next Philippine president initially worried investors, Liu said that what is more important is for the market to get a clear picture of what the winners intend to do, particularly in restoring confidence in the economy and sustaining growth, in the next six years. Along the way, however, analysts said share prices may see some upside, particularly for those companies that are expected to sustain their strong earnings performance beyond 2003, such as telecom firms led by Philippine Long Distance Telephone (PLDT). But caution will prevail, and investors' positions are likely to remain short term in nature ahead of the elections, they added. Despite the volatile political environment, the local market has seen significant gains this year on the back of the improved earnings performance of a few blue-chip companies, led by PLDT. After ending at 1,018.41 points in 2002, the composite index closed today at 1,427.40, or a gain of about 40 pct. Analysts attribute this to investors' moves to price in the future earnings prospects of some stocks, including PLDT, as well as the positive prospects for the global economy in 2004. "Despite the obstacles along the way, the threats to peace and order, the SARS outbreak, the Iraq war, and the challenge for the government to maintain fiscal discipline, our market managed to rise this year," First Grade Holdings managing director Astro del Castillo said. "At the end of (2003), we see the government in better fiscal position, while the peace and order situation has somehow been put under control." Going forward, he said the country's positive economic fundamentals should help to offset the negative impact of domestic political uncertainties on investor confidence. "We remain positive about the economic fundamentals. On the corporate front, we have seen some recovery stories, and I think the telecom sector will continue lead growth next year," he said. Investors have also factored in the expected boost in spending during the election season, analysts said. But some analysts said a further run-up is difficult to ascertain. "Some stocks have run up so fast that there are investors who are worried that stock-price growth may be getting ahead of profit growth," said AB Capital Securities research director Jose Vistan Jr. "The surge in share prices this year also means that it's tougher to find bargains." He said investors need to be cautious as "domestic politics remains as a potential excuse for profit-takers to pull down the market." Analysts said investors will also closely watch the foreign exchange market in 2004. "I think everybody is bracing for that - that the peso will hit record lows next year due to the political uncertainty," First Grade's del Castillo said. "The peso remains unstable after hitting a historic low of 55.850 (to the US dollar)." The central bank expects the peso to settle at around the 55.50 level by the end of the year, with "too much political noise" still weighing heavily on the local unit. edelacruz@afxasia.com |
| Philippines' A Soriano Corp to sell 35 pct stake in Mindanao Container |
MANILA (AFX-ASIA) - Holding firm A Soriano Corp said its board of directors has agreed to sell its 35 pct stake in Mindanao Container Corp. The company, whose other interests are in mining, finance, manufacturing, insurance property, agribusiness and paper production, gave no other details in its disclosure to the stock exchange. Conglomerate Aboitiz Equity Ventures Inc (AEV) earlier said it also agreed to sell its 35 pct stake in Mindanao Container for 26.95 mln pesos as part of its program to dispose of non-core assets. The companies have not disclosed the names of the buyers for their Mindanao Container stakes. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| Philippines' wooden-hulled ships are island lifelines despite risks - official |
MANILA (AFX-ASIA) - Wooden-hulled vessels in the Philippines, like the one that sank in the on Sunday, leaving 55 people feared dead, are often the only trade, transport and communication links for many areas in the island nation, an official said today. The 63-ton motor launch Piary, which sank off western Palawan island, would not have been allowed to sail were there economically viable alternatives, said coast guard chief Commodore Arthur Gosingan. Outside the primary ports that major domestic ferry and cargo shipping lines serve, wooden vessels are the only means of transport between points in the central and southern Philippines, he added. "Wood is the only means of transport from one island to another in many areas," Gosingan said on a radio program. These vessels make up "almost 80-90 pct" of the domestic fleet, he added. "The transportation of resources from one place to another would stop" if they are taken off abruptly, he said. A majority of the population of the Philippines live on the main island of Luzon, but the rest are scattered among several hundred of the Southeast Asian country's 7,106 other islands. Huge waves holed the Piary's bow to sink the ferry. A Malaysian cargo ship rescued 20 of the vessel's 75 passengers and crew, but the rest were still missing after 48 hours. After a series of deadly maritime disasters involving wooden-hulled vessels over the past three years, President Gloria Arroyo has ordered the Maritime Industry Authority to effect fleet modernization and gradually phase out these rickety boats. The government has also barred these types of vessels from sailing at night and ordered those that reach a certain age in service be retired. Popular opposition from commuters and vessel operators have, however, forced the government to re-draft the guidelines, Gosingan said. In the Philippines, foreign vessels are barred from transporting people or cargo on local routes and Gosingan said there is scant capital or inclination to invest in vessels with fiber-glass or metal hulls. "It has to be a gradual phase-out so the economy will not be affected," he said. In the meantime, the authorities are making do with increased vessel safety inspections, he added. |
| Manila shares close up on window-dressing; profit-taking hits PLDT |
(Updating with analyst comments, prices) MANILA (AFX-ASIA) - Share prices closed firmer on extended window-dressing of portfolios ahead of the year-end as Wall Street's overnight gains provided a positive backdrop, dealers said. Philippine Long Distance Telephone, however, gave back some gains after extending its rally early in the session on the back a strong overnight rise in its American Depositary Receipts (ADRs) in New York, they added. Profit-taking in PLDT, which has also announced plans to cut its debt levels with proceeds from the initial public offering (IPO) of unit Smart Communications Inc, capped the market's upside. Investors have also shifted their focus to other issues that had not been gaining like PLDT and other blue chips, which have benefited from the traditional year-end realignment of portfolios, dealers said. The composite index closed up 6.37 points, or 0.45 pct, at 1,427.40 on volume of 180.5 mln shares valued at 273.79 mln pesos. It traded between 1, 422.02 and 1,428.19. In the broader market, gainers led losers 38 to 16, while 41 stocks were unchanged. The financial markets will be closed from tomorrow in the Philippines, with trading resuming on Monday. "Most investors are already gone for the holidays, while some market participants continued to window-dress their portfolios, drawing inspiration from Wall Steet's gains," Citiseconline.com analyst Mark Alan Canizares said. With only two sessions left before the year ends, analysts expect investors to be more cautious and lock in profits in selected stocks amid prevailing pre-election political jitters. Top-traded Ayala Land Inc was unchanged at 6.00 on volume of 6.88 mln shares. Parent Ayala Corp rose 0.10 to 5.30 on 5.2 mln shares. PLDT was down 5.00 at 935 on 39,970 shares. Petron Corp was up 0.08 at 2.32 on 10.26 mln shares, extending gains after the oil refiner recently won new fuel supply contracts with state-owned National Power Corp worth 1.5 bln pesos. Bank of the Philippine Islands was up 0.50 at 46.50 on 334,600 shares. Manila Electric B, available to foreign investors, was up 0.25 at 24.25, while Meralco A was unchanged at 14.75. The Energy Regulatory Commission has allowed the power distributor to implement a provisional 0.12 pesos per kilowatthour tariff increase effective Jan 1, despite appeals by some consumer groups that it should reconsider the tarriff increase. The all-shares index was up 9.99 points at 861.49. The commercial-industrial index rose 6.72 to 2,157.00. Property was up 2.79 at 568.53, and oil was up 0.05 at 1.26. Mining was down 9.37 at 1,589.00. Banking and financial services gained 5.48 to 436.85. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| Philippine banks end-Oct NPL ratio 15.16 pct vs Sept's 14.49 pct |
MANILA (AFX-ASIA) - Philippine commercial banks' non-performing loans (NPL) accounted for 15.16 pct of their total loan portfolio as of end-October, versus 14.49 pct as at end-September, the central bank said. Their average NPL ratio stood at 16.36 pct a year ago. On a month-on-month basis, the sector's total loan portfolio contracted 3. 0 pct to 1.668 trln pesos as of end-October, while total NPL increased 1.5 pct to 253.0 bln, central bank data showed. Restructured loans rose to 133.96 bln pesos in October from 133.32 bln in September. Real and other properties owned and acquired were valued at 199.16 bln pesos in October, up from 198.57 bln in September. Banks' total non-performing assets (NPAs) stood at 446.91 bln pesos as at end-October, up from 442.39 bln in September, while reserves for NPAs amounted to 140.03 bln pesos against 138.13 bln in the preceding month. Their total assets fell to 3.331 trln pesos in October from 3.337 trln a month earlier. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Petron extends gains on Napocor fuel supply deals |
MANILA (AFX-ASIA) - Oil refiner Petron Corp was higher on sustained interest after winning new fuel supply contracts with National Power Corp (Napocor) worth 1.5 bln pesos, dealers said. They said window-dressing activities ahead of the year-end by investors have benefitted Petron, after it recently secured fuel supply deals with state-owned Napocor. Petron was up 0.06 peso at 2.30 on volume of 4.9 mln shares. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| Philippine banks end-Oct NPL ratio 15.16 pct vs Sept's 14.49 pct |
MANILA (AFX-ASIA) - Philippine commercial banks' non-performing loans (NPL) accounted for 15.16 pct of their total loan portfolio as of end-October, versus 14.49 pct as at end-September, the central bank said. Their average NPL ratio stood at 16.36 pct a year ago. On a month-on-month basis, the sector's total loan portfolio contracted 3. 0 pct to 1.668 trln pesos as of end-October, while total NPL increased 1.5 pct to 253.0 bln, central bank data showed. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| STOCKWATCH - Philippines' PLDT gains on ADR rise, debt cut plan via Smart IPO |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) extended gains after a strong overnight rise in its American Depositary Receipts (ADR) and on its plan to reduce debts with proceeds from unit Smart Communications Inc's initial public offering, dealers said. At 10.05 am, PLDT was up 5.00 pesos at 945.00 on volume of 13,100 shares. Its ADRs rose 0.66 usd to 17.15 in New York. The composite index was up 2.83 points, or 0.20 pct, at 1,423.86. The Philippines' dominant telecom carrier plans to use proceeds of about 600 mln usd from Smart's IPO to cut debt, PLDT president Manuel Pangilinan said. Smart is required, under its congressional franchise, to sell at least 30 pct of its common shares to the public before August 2004. In 2004, PLDT plans to cut its debt level by 400-450 mln usd, including borrowings of about 320 mln usd of its fixed-line business and about 100 mln of the wireless operation, he said. The PLDT group has total debts of 2.7 bln usd, with Smart accounting for some 300 mln usd. Summit Securities president Harry Liu said buying interest in PLDT and its ADRs on the back of its positive earnings prospects beyond 2003 has been further boosted on news of its debt reduction plan and the ADR gains. "Investors are still window-dressing their portfolios and are focusing on certain counters, such as PLDT," he said. Analysts said PLDT is expected to retain control of Smart, despite the public offering, since it has been its main source of earnings. They agreed that cutting PLDT's debts will reduce interest expenses, which will translate to a further improvement in earnings. (1 usd = 55.55 pesos) edelacruz@afxasia.com |
| Philippines' SPI Tech buys back additional 400,000 shares at 13 pesos each |
MANILA (AFX-ASIA) - Information technology services provider SPI Technologies Inc said it bought back a further 400,000 shares on the market yesterday at an average price of 13 pesos each. The shares repurchased shares accounted for nearly half of total volume yesterday, with SPI closing flat at 13 pesos. The company has been undertaking a 55-mln peso share buy-back program since Friday after announcing that it failed to reach an agreement with PPM Ventures Ltd, owned by Britain's Prudential Plc, on a supposed tender offer by PPM to acquire control of the Philippine firm. (1 usd = 55.50 pesos) edelacruz@afxasia.com |
| Philippines' Meralco allowed to proceed with rate hike Jan 1 |
MANILA (AFX-ASIA) - Manila Electric Co (Meralco) will be allowed to impose a provisional 0.12 peso per kilowatthour tariff increase effective January 1, the Energy Regulatory Commission said yesterday in ruling against the appeal of consumer groups to suspend the rate hike. The ERC has begun a series of public hearings on Meralco's petition for a rate hike, as well as the appeals that several consumer groups lodged against an increase in power rates. ERC chairman Manuel Sanchez said the next hearing will be held on January 5, which means the provisional authority for Meralco to raise rates will take effect as scheduled on January 1. "We cannot decide instantly (on the petitions against the rate increase). We have to look carefully into the merits of the consumer groups' claims," he told reporters. President Gloria Arroyo has appealed to the ERC to reconsider its decision to allow Meralco to raise its rate after she faced criticism and accusations that the rate hike is part of a political arrangement with the Lopez family, who controls the power firm. It has been insinuated that Arroyo is trying to win the support of the Lopez family, who also controls one of the country's largest television and radio network, for her bid in the May presidential election. Arroyo, Sanchez and the Lopez family denied there has been any political deals behind the ERC rate hike ruling. The latest rate hike is 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 revenue by 1. 9 bln pesos annually and help it undertake projects to improve its service and pay maturing loans. Meralco retails electricity in metropolitan Manila and nearby provinces. (1 usd = 55.50 pesos) edelacruz@afxasia.com |
| Malaysian cargo ship rescues 20 from Philippines ferry disaster - navy |
MANILA (AFX-ASIA) - A Malaysian cargo ship has rescued 20 passengers and crew from a sunken Philippines ferry, leaving 55 people still missing, the navy said here today. The cargo ship, Pacific Valor, en route to Sandakan in Malaysia from China, plucked 20 survivors from the Sulu Sea off the western island of Balabac near the Malaysian border, navy spokesman Commander Gerry Malabanan said. The Philippines flagged ferry, the 63-ton Piary, sank in bad weather off Balabac on Sunday. It was carrying 68 passengers and seven crew members. A Philippine Navy ship was scheduled to meet up with the Pacific Valor early today to take the unidentified survivors, Malabanan said on DZRH radio. The ferry accident is the latest pre-Christmas disaster to hit the central Philippines, which is still digging up the dead from a series of landslides in other islands that are estimated to have claimed more than 200 lives. |
| Philippine end-2003 forex reserves over 16 bln usd, no boost for peso |
MANILA (AFX-ASIA) - The country's gross international reserves (GIR) level is expected to settle at over 16 bln usd by the end of 2003, boosted by fresh inflows after the government moved to pre-fund its 2004 budget requirements and a revaluation of gold, central bank governor Rafael Buenaventura said. However this GIR level, which is adequate to cover 1.4 times the country's short-term debt, is unlikely to give the peso enough of a boost to reach 54 to the US dollar by year-end, he said, adding that the peso may end 2003 "probably closer to where we are now." At the Philippine Dealing System, the peso closed at 55.500 to the dollar today after trading between 55.400 and 55.500 on volume of 96.50 mln usd. It closed at 55.400 on Friday. The GIR stood at 16.826 bln usd at end-November compared with 16.877 bln at end-October. At his year-end economic briefing, Buenaventura dismissed former finance secretary Jose Isidro Camacho's claim that the country has plunged into a fiscal crisis. He warned, however, the country will find its debt level unsustainable if it fails to implement fiscal reforms in the next two to three years. On the monetary side, Buenaventura said the central bank has room to keep its policy interest rates stable at least for the next six months. He said should there be any need to tighen policy, however, any adjustment will likely be made in the second half of next year, with the scenario including an interest rate hike of as much as 25 basis points. The central bank's overnight rates currently stand at 6.75 pct for borrowing and 9.00 pct for lending. afxmanila@afxasia.com |
| Philippines' PLDT CEO sees unit Smart IPO raising around 600 mln usd |
MANILA (AFX-ASIA) - Smart Communications Inc's much-awaited initial public offering (IPO) will likely raise around 600 mln usd should parent Philippine Long Distance Telephone offer a 30-pct block in the wireless firm, PLDT president and chief executive officer Manuel Pangilinan said. Smart is required under its congressional franchise to sell at least 30 pct of its common shares to the public by Aug 2004. "If we float around 30 pct of Smart, it will raise at least 600 mln usd. We will use this to pare down debts to a more sustainable and agreeable level on the fixed-line side," Pangilinan told reporters. He considers a debt load of below 2 bln usd in the fixed-line segment as "sustainable and agreeable." PLDT plans to cut its debt level by 400-450 mln usd in 2004, including about 320 mln usd worth of debts in its fixed-line business and about 100 mln in the wireless segment, he said. The PLDT group has total debts of 2.7 bln usd, with Smart accounting for some 300 mln usd, he said. Smart has 100 mln usd in maturing debts every year, Pangilinan added. "By the end of 2005, (PLDT's debts) should be down to below 2 bln usd, hopefully around 1.7 bln to 1.8 bln usd. That's the agreeable level for (the) fixed-line (business)," he said. "At that level, fixed-line's interest expense should drop significantly. So the impact on our (profit and loss statement) in 2006 should be significantly beneficial." He said PLDT intends to keep control of Smart, which has been its main source of earnings. "We'll still own 70 pct of Smart, so it's not the end for PLDT. It's not a fatal wound (on PLDT's part)," he said. "Now, we're just maintaining our structure to continue our liability management exercise. Our approach to business is strategic." Smart is the country's leading mobile phone service operator, with over 12 mln customers as of end-October. PLDT booked a preliminary and unaudited net profit of 5.80 bln pesos in the nine months to September, up 58.00 pct year-on-year, despite provisions related to job cuts and certain investments. Without those non-recurring charges, PLDT's net profit during the nine-month period stood at 11.3 bln pesos, 140 pct higher than in the year-earlier period, on the back of a 212-pct rise in the net profit of Smart. Smart posted net profit of 4.2 bln pesos in the third quarter alone and 10.3 bln pesos in the nine months to September. PLDT expects to post full year 2003 net profit of 9-10 bln pesos after provisions. afxmanila@afxasia.com |
| Philippines sees 2004 FDI at 1.09 bln usd, portfolio inflows at 3.3 bln usd |
MANILA (AFX-ASIA) - Foreign direct investments are likely to reach 1.09 bln usd in 2004, substantially higher than this year's projected level of 169 mln, the central bank said. Portfolio investments for the year are seen at 3.3 bln usd, compared with 2003's projection of 3.56 bln, it said. afxmanila@afxasia.com edc/ds AFN |
| Philippines puts half of Malampaya project stake on auction block |
MANILA (AFX-ASIA) - The Philippines today put half its minority stake in the 4.5 bln usd Malampaya offshore natural gas project on the auction block, Agence France Presse reported, citing newspaper advertisements. State-run Philippine National Oil Co Exploration Corp said in newspaper advertisements that it has named ING Bank as its financial adviser and set a February 4 deadline for the submission of bids. The company will sell 49 pct of its 10 pct interest in Malampaya, a project that a unit of Royal Dutch/Shell operates under a consortium that also includes US oil major Malampaya, located in the South China Sea off the island of Palawan, is the largest single project in the Philippines. The deep-water site began supplying natural gas to power plants in the main Philippine island of Luzon last year. |
| Philippines movie icon Poe formally accepts presidential nomination - report |
MANILA 22 (AFX-ASIA) - Movie icon Fernando Poe today formally accepted the nomination to become the standard bearer of the Philippines' main opposition party for the May 2004 presidential race, Agence France Presse reported. Poe, 64, said he will choose from among senators, including Loren Legarda, Aquilino Pimentel, Gregorio Honasan and former senator Miriam Santiago, for his vice presidential running mate, the news agency said. Legarda is a popular former television broadcaster, Pimentel a veteran politician, while Honasan is an ex-army colonel state prosecutors have linked to a failed military mutiny against President Gloria Arroyo in July. "My name is Fernando Poe Junior, who is wholeheartedly recognizing and accepting my nomination as standard bearer of the Coalition of United Filipinos and the Filipino masses," Poe said at a news conference. "Definitely, I will file my candidacy," with the Commission on Elections within the month, Poe added. Poe is the self-proclaimed "King of Philippine movies" and is extremely popular among the masses. He has consistently topped surveys ahead of the elections and is seen as likely to dash Arroyo's hopes for a second term. A high-school dropout, Poe has never held public office and his candidacy has spooked financial markets. He has not divulged his platform and has so far shied away from appearing in high-level forums that the business sector has organized. |
| Manila shares close slightly weaker on profit-taking |
MANILA (AFX-ASIA) - Share prices closed marginally lower on selective profit-taking while the market consolidated ahead of the year-end, dealers said. Pre-election political concerns and extended Christmas and New Year holidays kept investors sidelined, they added. Gains in Philippine Long Distance Telephone (PLDT) and Jollibee Foods capped the market's downside, dealers said. The composite index closed down 1.21 points, or 0.09 pct, at 1,421.03 on volume of 156.4 mln shares worth 681.6 mln pesos. It moved between 1,415.73 and 1,423.57. The market's turnover was boosted by block and cross sales. In the broader market, losers outnumbered gainers 27 to 17, while 37 stocks were unchanged. The market will still be open tomorrow before closing for the rest of the week. It will also be open on Monday and Tuesday next week before the New Year holiday. "Investors are already in vacation mode, and the market is just consolidating ahead of the year-end," Regina Capital Development Corp analyst Gomer Tan said. "They have opted to lock in recent gains in select stocks, but there could still be further window-dressing before we enter the New Year." PLDT extended gains on follow-through window-dressing, supported by sound fundamentals and positive earnings prospects beyond 2003, dealers said. PLDT was up 10 pesos at 940 on volume of 103,040 shares. Local newspapers today reported, citing PLDT president and chief executive officer Manuel Pangilinan, that the company plans to cut its debt levels by 400-450 mln usd in 2004, including about 320 mln usd in its fixed-line business and about 100 mln in the wireless segment. Jollibee Foods was up 0.25 at 17.50 on 495,600 shares on expectations that a pick-up in consumer spending during the Christmas and New Year holidays will boost the fast-food chain operator's sales. Top-traded Ayala Land was unchanged at 6.00 on 29.8 mln shares. Parent Ayala Corp was down 0.10 at 5.20 on 2.37 mln shares. Filinvest Land was down 0.02 at 1.00 on 7.4 mln shares. PLDT rival Globe Telecom was down 5.00 at 845. The all-shares index was down 1.20 points at 851.50. The commercial-industrial index rose 1.38 to 2,150.28. Property was down 1.27 at 565.74, and mining was down 22.83 at 1,598.37. Oil was unchanged at 1.21. Banking and financial services shed 2.13 to 431.37. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippines names new foreign secretary |
MANILA (AFX-ASIA) - President Gloria Arroyo Monday has named Delia Albert, a career diplomat, as the Philippines foreign secretary, a presidential spokesman said. Foreign Undersecretary Albert replaces Blas Ople, who died last week, Arroyo spokesman Ignacio Bunye told reporters. |
| Philippine coast guard says ferry with more than 70 people missing |
MANILA, Dec 22 (AFP) - The Philippines' coast guard service said a ferry with more than 70 people on board is missing off the southern tip of Palawan island after strong waves smashed a hole in the vessel's hull. There has been no contact with the 63-ton Piary since Sunday morning when the vessel radioed it was taking on water, while heading for Brooke's Point in Palawan from the Cagayan de Sulu island group, a coast guard statement said. Naval reconnaissance aircraft dispatched from Palawan were unable to locate the ferry from its last plotted location about 60 nautical miles off Brooke's Point, it added. The ferry was carrying 68 passengers and an undetermined number of crew as well as a cargo of coconut meat. Two coast guard vessels were battling rough seas in an attempt to reach the last reported location. |
| STOCK ALERT - Philippines' PLDT gains on window-dressing, debt cut plan |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone was higher in late morning trade, extending gains on follow-through window-dressing for the year-end, dealers said. PLDT's sound fundamentals and positive earnings prospects beyond 2003 are driving its share price higher, as is the company's plan to lower its debt load. PLDT was up 5 pesos at 935 on volume of 38,660 shares. Local newspapers today reported that PLDT plans to cut its debt level by 400-450 mln usd in 2004. The reports quoted president and chief executive officer Manuel Pangilinan as saying that PLDT plans to settle about 320 mln usd worth of debts of its fixed line business and about 100 mln of the wireless segment. "These sustained gains reflect the company's strong fundamentals. It could also be getting support from fund managers' window-dressing, while its plan to reduce its debt load is also positive," Regina Capital Development Corp analyst Gomer Tan said. PLDT expects to post a full-year 2003 net profit of around 9 to 10 bln pesos after provisions, more than triple last year's 3.1 bln, on sustained gains in the wireless business. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Jollibee Foods firmer on earnings prospects |
MANILA (AFX-ASIA) - Shares of Jollibee Foods were firmer on expectations the seasonal pick-up in consumer spending during the Christmas and New Year holidays will boost the fast-food chain operator's sales, dealers said. Jollibee was up 0.25 peso at 17.50 on 493,600 shares. Its gains were helping to limit the market's downside, they said. "Increased consumer spending during the holidays will boost Jollibee's sales and that's likely being priced in now by some investors," Westlink Global Equities chairman Rommel Macapagal said. Jollibee is popular in the Philippines for its hamburgers and fried chicken. But it also sells pizza at its Greenwich restaurants and chinese meals at its Chowking outlets. It is also a Delifrance Asia licensee. Jollibee has branches in the US, Brunei and Hong Kong, and has been looking to get into the China market. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippines' Export and Industry Bank to reactivate Urbancorp Bank |
MANILA (AFX-ASIA) - Export and Industry Bank, which had acquired the assets of closed Urban Bank, said it will reactivate fully-owned subsidiary Urbancorp Development Bank Inc. It gave no other details in its disclosure to the stock exchange. Export and Industry Bank used Urban Bank as a backdoor listing vehicle in October. Urbancorp was a subsidiary of Urban Bank, which declared a bank holiday and was closed by the central bank in 2001. Trading of Urban Bank shares had been suspended since then. At 9.52 am, Export and Industry Bank was untraded after closing at 0.53 peso previously. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippines' SPI Technologies begins buying back shares |
MANILA (AFX-ASIA) - Database services provider SPI Technologies Inc said it has started buying back shares on the market and repurchased 171,000 shares at an average price of 12.9912 pesos on Friday. The company announced on Friday that its board of directors had approved a share buy-back budget of 55 mln pesos. The announcement was made simultaneously with the company's disclosure that it failed to reach an agreement with PPM Ventures Ltd, owned by Britain's Prudential Plc, on the principal terms and conditions of a supposed tender offer proposed by PPM to acquire control of the Philippine firm. At 9.38 am, SPI was untraded after closing at 13 pesos previously. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philipines' Fil-Estate Land, Union Bank reach loan payment deal |
MANILA (AFX-ASIA) - Fil-Estate Land Inc said it has concluded an agreement with creditor Union Bank of the Philippines on the full settlement of its loans amounting to 482 mln pesos. The property developer gave no other details in its disclosure to the stock exchange. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippine government sets 4-5 pct inflation target for 2005 |
MANILA (AFX-ASIA) - The government has set an average inflation target of 4.0-5.0 pct for 2005, similar to the range it set for next year, the central bank said. In a statement, the central bank said the targets are consistent with its inflation-targeting framework. Inflation-targeting is an approach to monetary policy involving the use of a publicly-announced inflation target the government set and which the central bank commits to achieve over a two-year horizon. "Promoting price stability is the central bank's main priority and the target serves as an anchor for the public's expectations of future inflation, allowing them to plan ahead with greater certainty," the statement said. It said the targets, set by the inter-agency Development Budget and Coordination Committee (DBCC), are also consistent with the government's gross domestic product growth goals of 4.9-5.8 pct in 2004 and 5.3-6.3 pct in 2005. "The (2005 inflation) target also reflects the likely developments in the monetary, fiscal and external sectors of the economy moving forward," it said. This year's average inflation rate is expected to settle at around 3.0 pct, well below the government target range of 4.5-5.5 pct. Next year's target, meanwhile, shows a "moderate" increase in prices that "reflects the impact of improved output growth and aggregate demand conditions as well as the expected cost-push impact of factors such as the volatility in oil prices," the central bank said. "At the same time, the inflation outlook also considers the risks stemming from financial market concerns over domestic political conditions in the run-up to the May 2004 elections, which may influence the direction and movement of the nominal exchange rate and other financial variables with potential inflationary effects," it added. The central bank also sees additional inflationary risks in the coming year from planned adjustments in import tariffs rates and utility charges. edelacruz@afxasia.com |
| Philippine Airlines-Air Philippines merger plan scrapped - report |
MANILA (AFX-ASIA) - Flagship carrier Philippine Airlines (PAL) has called off plans to merge with Air Philippines, BusinessWorld newspaper reported. "They (Air Philippines) did not find any sufficient reason to do it (merger)," the paper quoted PAL president Avelino Zapanta as saying, although both airlines will remain "allies." Tycoon Lucio Tan controls both airlines. edelacruz@afxasia.com |
| Philippines' Meralco seeks 0.1852 pesos/kwh cut in generation rate - report |
MANILA (AFX-ASIA) - Manila Electric Co (Meralco) has filed a petition to the Energy Regulatory Commission (ERC) seeking a 0.1852 peso per kilowatthour reduction in its generation charges, the Daily Tribune reported. The report said Meralco is hoping to implement the proposed rate cut in February to offset a 0.12 peso per kWh provisional increase in distribution rate the ERC approved and will come into effect on January 1. Meralco sources about 60 pct of its electricity supply from its independent power producers. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippines' Music Semiconductor to pay 1.2 mln usd debt in 2004 - report |
MANILA (AFX-ASIA) - Music Semiconductor Corp will pay the remaining 1.2 mln usd debt to US creditors before the second quarter of 2004, BusinessWorld newspaper reported, citing company president Michael Burton. The company plans to settle about 750,000 usd of the debt next month and the balance later with available cash, he said. The company has been "cash flow positive" for the last seven quarters, the report quoted Music chairman Jimmy Soo as saying. Music earlier said it has satisfied the conditions of a California court for the dismissal of an involuntary chapter 11 bankruptcy petition filed against its unit. edelacruz@afxasia.com |
| Philippines' PLDT to cut debts by 400-450 mln usd in 2004 - report |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) plans to cut its debts level by 400-450 mln usd in 2004, BusinessWorld newspaper reported, citing president and chief executive officer Manuel Pangilinan. The company plans to settle about 320 mln usd worth of debts of its fixed line business and about 100 mln of the wireless segment, he said. "Next year ... to be safe, at least between 400 mln and 450 mln usd worth of debts will be paid," Pangilinan was quoted as saying. The PLDT group, which includes its highly profitable wireless unit Smart Communications Inc, has total debts of 2.7 bln usd, with the lattr accounting for some 300 mln usd, he said. Smart has 100 mln usd in maturing debts every year, he added. PLDT expects to post a full-year 2003 net profit of around 9 to 10 bln pesos after provisions, more than triple last year's 3.1 bln, on sustained gains in the wireless business. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| 200 feared dead in Philippine landslides as rescuers race against time |
MANILA (AFX-ASIA) - At least 200 people were feared dead after weekend landslides that reportedly buried entire villages in the central and southern Philippines, as rescuers battled bad weather Sunday to reach the devastated areas. Villagers used shovels and their bare hands to dig bodies from the mud and debris brought down in landslides that officials said crashed into 160 villages in central Leyte province and the southern island of Mindanao. By Sunday 83 bodies had been recovered and 120 people were still missing, officials said. Close to 100,000 people had been displaced or evacuated. With large parts of Leyte and the Surigao and Agusan provinces in Mindanao still blacked out and virtually isolated by the bad weather, hope for the missing dimmed. Some 700 troops had been sent to Leyte, but intermittent rain and strong winds grounded back-up helicopters and the soldiers were trying to reach remote areas on foot and by truck, Defense Secretary Eduardo Ermita said. "The number of casualties there will surely rise as we haven't yet recovered those reported to be missing," Ermita told Agence France-Presse. "Because of the landslides, towns are now isolated and roads are covered by mud. It is difficult to reach these areas and we are awaiting word from our military officer there. Soldiers are trying to reach some areas by foot, " he said. Local reports said that in some cases whole villages had been buried by landslides. Television footage showed villagers trying to dig bodies out of the mud in heavy rains in a remote village near the city of Surigao in Mindanao. Recovered corpses were wrapped in clear plastic bags and laid on the roadside to be identified. |
| Philippines' Republic Cement to list 1.54 bln common shares on Dec 23 -PSE |
MANILA (AFX-ASIA) - Republic Cement Corp will list an additional 1.54 bln common shares, arising from share-for-share swap deal with Southeast Asia Cement Holdings Inc (Seacem), on December 23, the Philippine Stock Exchange said. The shares, with a par value of 1.00 peso each, were issued for Republic Cement to acquire, through the swap transaction, a majority interest in Seacem and all of the latter's interest in Lloyds Richfield Industrial Corp. The additional shares comprise 1.46 bln common shares issued to acquire the majority stake in Seacem and 79.64 mln for the stake in Lloyds. Republic Cement was untraded today after closing at 0.50 peso previously. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Philippines appoints SGV chairman Purisima as trade secretary |
MANILA (AFX-ASIA) - President Gloria Arroyo has appointed Cesar Purisima, chairman of Sycip, Gorres and Velayo accounting firm as the new Secretary of the Department of Trade and Industry, her spokesman Ignacio Bunye said. Purisima will replace Manuel Roxas II, who resigned last week to campaign for a senatorial seat in next year's general elections. afxmanila@afxasia.com |
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