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Monday, November 10, 2003
Manila
shares close lower on political, security concerns
Philippines'
Benpres says intl court allows MWSS to draw on 120-mln usd bond
Philippine
Supreme Court, parliament set for showdown - report
Manila
Jockey Club approves market study on possible property development
Manila
shares slightly lower in late trade on political concerns
STOCKWATCH
- Philippines' Benpres weaker after court order on unit Maynilad
Philippines'
Chemphil acquires Rhodia's 40 pct in Chemphil Albright & Wilson
Forex
- Philippine peso weaker on domestic political, security concerns
Philippine
EDSA Properties Holdings says it has complied with SEC rules
Philippine
exchange halts trading on Kuok, Edsa Properties
Philippines'
Metrobank seen to post 4.0 bln pesos in net profit in 2004-report
Manila
shares outlook - Mixed to lower on consolidation, politics
Philippines'
SEC threatens to revoke licenses of 2 companies - report
Philippines'
Petron Corp receives tax perks for 5.5-bln peso refinery upgrade
Philippine
central bank declares 4.0 bln in UCPB loans as substandard -reports
Philippine
government revenue seen exceeding 2003 target by 3.0 pct
Philippines'
PLDT plans to issue 15 bln pesos in bonds in 2004 - report
Arroyo
says airport siege not an attempt to grab power
Foreign
donors pledge 2 bln usd aid for Philippines in 2004
Court
orders Philippines' Maynilad to pay dues to govt, maintain concession
Manila
police kill 2 armed men in gun battle for airport control tower
Philippines'
Security Bank gets central bank approval for cash div
Philippines'
Jollibee Foods cash div 0.20 pesos/share
Friday, November 07, 2003
Forex
- Philippine peso closes weaker on renewed security concerns
OFFICIAL
CORRECTION - Philippine govt to issue 3-yr 250.0 mln usd T-bills
Philippines'
Negros Navigation 9 mths net profit 73.6 mln pesos vs 67.3 mln
Philippines'
Metro Pacific back to profit in 9 mths to September
Philippine
leader Arroyo warns of plots to overthrow her government
Philippine
Treasury cancels 3-yr T-bond auction set for Dec 2
Philippines'
DFNN to list additional 7.0 mln common shares Nov 11
Philippines
mulls diplomatic protest over Chinese move in Spratlys
Philippines'
San Miguel Q3 net profit 1.79 bln pesos, up 15.0 pct yr/yr
Manila
shares close lower on profit-taking
Pioneer
solar cell plant to be set up in Philippines by US firm Cypress
Philippines'
Cityland to launch new commercial/residential condominium
STOCK
ALERT -Philippines' San Miguel weaker ahead of Q3 results
Manial
shares lower on profit-taking, consolidation
Waterfront
Philippines Q3 net profit 5.04 mln pesos vs loss 102.90 mln
Manila
shares outlook - Mixed to lower on extended profit-taking
Philippines'
SM Group to enter housing development - report
Philippines'
BIR October revenue 35.41 bln pesos, exceeds monthly target
Philippine
PLDT to sell, lease out idle assets - report
Philippines'
Globe Telecom seeks IFC's help in swap transactions
Motorola
sees sustained growth for Philippine wireless market in next 2 yrs
Philippines
SEC approves Ayala Land's 2.00-bln peso bond issue
| Manila shares close lower on political, security concerns |
MANILA (AFX-ASIA) - Share prices closed lower as cautious investors cashed out of select stocks or stayed on the sidelines, awaiting news on whether the impeachment bid against Supreme Court Chief Justice Hilario Davide will be elevated to the Senate today, dealers said. Security concerns following a three-hour siege of the Manila airport's control tower at the weekend also undermined sentiment, they added. The composite index closed down 3.77 points, or 0.27 pct, at 1,409.34 on volume of 201.80 mln shares worth 333.40 mln pesos. It traded within a range from 1,407.71 to 1,415.51. In the broader market, losers beat gainers 25 to 19, with 38 stocks unchanged. The peso also lost some ground largely on political and security concerns. At the Philippine Dealing System, the local unit averaged 55.375 to the US dollar by noon, after closing at 55.270 on Friday. The House of Representatives and the Supreme Court are set to issue separate rulings today on the impeachment of Davide, raising fears of a possible constitutional crisis. Over the weekend, a former aviation official and an ex-navy officer were killed after staging a three-hour siege of the Manila airport control tower, in what was feared to be part of destabilization attempts against the administration of President Gloria Arroyo. "The impeachment issue and the weekend developments have triggered a bit of a wait-and-see attitude in the market," ATR-Kim Eng Securities research head Andrew Long said. "Investors are taking profits and sitting back, while the market is attempting to consolidate recent gains and building a base, and at the same time digesting third quarter corporate results." Gains in Ayala Land and Philippine Long Distance Telephone, however, capped the market's downside. The property firm, which is scheduled to release its third quarter results this afternoon, was up 0.10 pesos at 6.40 on volume of 17.92 mln shares. Parent Ayala Corp was down 0.10 at 5.40 on 3.39 mln shares. Ayala Corp unit Globe Telecom, which may also announce its results this afternoon, was unchanged at 820 pesos. PLDT was up 5.00 at 820 on 82,290 shares. Bank of the Philippine Islands was up 1.00 at 45 on 713,600 shares. SM Prime, which is also expected to release its results this afternoon, was down 0.30 at 7.10 on 3.3 mln shares. Benpres Holdings Corp was down 0.04 pesos at 0.53 on 29.56 mln shares. An international arbitration court ordered Benpres unit Maynilad Water Services to pay 6.77 bln pesos in concession fees and continue with its 25-year contract to provide water supply services to some parts of metropolitan Manila. Dealers see the ruling as a possible major burden on Benpres, which is currently seeking to restructure 553 mln usd in debts. Chinabank was up 5.00 at 665. The all-shares index was up 5.60 points at 848.10. The commercial-industrial index was down 7.73 at 2,089.19. Property was down 8.15 at 611.86, mining down 3.66 at 1,623.37, and oil down 0.02 at 1.36. Banking and financial services gained 4.31 to 439.94. edelacruz@afxasia.com |
| Philippines' Benpres says intl court allows MWSS to draw on 120-mln usd bond |
MANILA (AFX-ASIA) - The International Arbitration Court has allowed state-run regulator Metropolitan Waterworks and Sewerage System (MWSS) to draw on a 120.00-mln usd bond put out by Maynilad Water Services Inc, Maynilad parent Benpres Holdings Corp said. Benpres guarantees 60.00 pct of the bond, the other 40.00 pct is guaranteed by its partner in Maynilad, the Suez/Ondeo group. Benpres said its guarantee of the Maynilad bond is already included in the 553.00-mln usd obligations currently being restructured under its Balance Sheet Manangement Plan. In a disclosure to the stock exchange, Benpres said Maynilad received on Nov 7 a copy of the decision of the arbitration panel, ruling that Maynilad should pay 6.77 bln pesos in concession fees to the government, and must maintain its 25-year concession agreement to supply drinkable water to parts of metropolitan Manila. The panel said the concession fees are payable within 15 days. Justice Undersecretary Manuel Teehankee said at the weekend the court order represents "a major victory" for both the government and MWSS. He said, however, Maynilad could still appeal the decision either in the international court or the local Court of Appeals. Benpres said it will issue a statement later today regarding the action it will be taking. Maynilad in late 2002 decided to terminate its 25-year concession agreement with the MWSS early, after failing to get rate increases. It said the government failed to comply with the terms of the concession agreement. Maynilad later brought the case before the International Court of Arbitration after the government disputed the allegations. Maynilad won one of the water supply concessions covering metropolitan Manila in 1997. The other concession was awarded to Manila Water of the Ayala-led group. (1 usd = 55.398 pesos) edelacruz@afxasia.com |
| Philippine Supreme Court, parliament set for showdown - report |
MANILA (AFX-ASIA) - The Philippine parliament and Supreme Court are set to issue separate rulings today on efforts to impeach the country's top judge, setting the stage for a possible constitutional crisis, the AFP news agency reported. The two branches of government have been locked in a three-week trial of strength over an opposition-led attempt to impeach Supreme Court Chief Justice Hilario Davide, bringing a new bout of instability to the country, AFP said. The military last week went on alert as rumors of a new coup attempt swirled, while President Gloria Arroyo publicly warned would-be plotters not to try to capitalize on the situation, it added. Davide has rejected allegations from lawmakers that he used state funds alloted to improve the living conditions of Supreme Court workers to buy cars, houses and office furnishings for himself and the other senior judges. Supreme Court spokesman Ismael Khan said the court will issue a ruling at around noon (0400 GMT) on the the lower house of parliament's unprecedented bid to impeach Davide. If impeached, Davide will have to face trial in the Senate and may lose his job, AFP said. Should the court rule against impeachment and Congress insists on pushing ahead with the Senate trial -- as it has threatened to do when it sits at 4 pm (0800 GMT), the Philippines will be in uncharted legal territory, it added. Arroyo's allies in parliament were holding an emergency meeting early today to head off the possible impeachment, which the president has warned could damage the Southeast Asian nation's democratic institutions. Arroyo, who survived a military rebellion in July, had earlier offered a compromise solution, but the opposition rejected the move. After public court hearings on the impeachment complaint last week, legal analysts expected the Supreme Court to rule today whether it has jurisdiction over the case, as well as to decide whether the complaint is constitutional. Riot police cordoned off the streets around the Supreme Court building today amid threats of anti-Davide protests. Security jitters linked to street protests triggered a brief military and police alert last week, and a weekend incident at Manila airport only served to heighten the feeling of nervousness. Two men, one an ex-government official, armed with guns and explosives seized Manila airport control tower, denouncing alleged government corruption. Police shot dead the two gunmen after a three-hour standoff that shut down the country's busiest port of entry. National Security Adviser Roilo Golez said the authorities are trying to determine whether the three-hour siege on Saturday was an isolated case "or whether it was part of a coup plot or a terror plot." cgm/pp/pch/ds AFN |
| Manila Jockey Club approves market study on possible property development |
MANILA (AFX-ASIA) - Manila Jockey Club Inc said it has authorized Community Innovations Inc to conduct a market study on the joint development of its real estate properties in Manila into a residential subdivision. The gaming firm previously used the 6.5-hectare site as a horse-racing track. In a disclosure to the stock exchange, Manila Jockey said the study will determine the size of the target market and the specifications required, among other things. "An agreement for the development of the 6.5-hectare property shall be discussed and negotiated by both parties on completion of the market study," it said. At 10.57 am, Manila Jockey was untraded after closing at 12.50 pesos previously. (1 usd = 55.40 pesos) edelacruz@afxasia.com |
| Manila shares slightly lower in late trade on political concerns |
MANILA (AFX-ASIA) - Share prices were slightly lower in midmorning trade as investors chose to stay on the sidelines to await news of whether or not the impeachment complaint against Supreme Court Chief Justice Hilario Davide will be elevated to the Senate today, dealers said. Also weighing on sentiment were security concerns following the three-hour siege of the Manila airport's control tower at the weekend as there has been speculation the siege could be part of another destabilization attempt against the Arroyo administration. At 10.37 am, the 30-company composite index was down 1.10 points, or 0.08 pct, at 1,412.01 on volume of 46.84 mln shares worth 74.82 mln pesos. It has traded between 1,408.83 and 1,415.51 so far. Losers led gainers 17 to 11, with 23 stocks unchanged. Dealers said the market is seen moving sideways to slightly lower for the rest of the session. The peso's renewed weakness, largely attributable to lingering political concerns, has also kept most investors at bay. The Supreme Court is widely expected to issue its decision on the constitutionality of the impeachment complaint against Davide ahead of the Congress' opening session later this afternoon. "A quick resolution of the issue will be good for the market. It will remove a major political uncertainty and, at the same time, allow our lawmakers to move forward and do their job," Regina Capital Development analyst Gomer Tan said. While Saturday's takeover of the control tower at Manila's busiest airport was quickly resolved, concerns remain that the siege could have had the support of some people in the military and certain civilian groups, Tan said. Ayala Corp was top-traded and down 0.10 pesos at 5.40 on volume of 3.17 mln shares, while property unit Ayala Land was flat at 6.30 on 602,000 shares. Philippine Long Distance Telephone Co was steady at 815.00 on 18,400 shares. Benpres Holdings Corp was down 0.03 pesos at 0.54 on 14.10 mln shares. An international arbitration court ordered Benpres unit Maynilad Water Services to pay over 6.00 bln pesos in concession fees and continue with its 25-year contract to provide water services to the eastern part of metropolitan Manila. SM Prime was down 0.10 pesos at 7.30 on 732,000 shares. Dealers said investors have started to take profit ahead of the company's third quarter earnings report due this week. Bank of the Philippine Island was up 1.00 peso at 45.00 on 106,500 shares. Globe Telecom was up 5.00 at 825.00 on 4,610 shares. Metrobank was flat at 27.00. The all-shares index was up 7.25 points at 849.75. The commercial-industrial index was down 8.09 at 2,088.83. Property was up 0.30 at 620.31, while mining was down 17.37 at 1,609.66. Oil was unchanged at 1.38. Banking and financial services was up 4.31 at 439.94. (1 usd = 55.408 pesos) cecille.yap@afxasia.com |
| STOCKWATCH - Philippines' Benpres weaker after court order on unit Maynilad |
MANILA (AFX-ASIA) - Benpres Holdings was weaker in early trade following news that the International Arbitration Court has ordered unit Maynilad Water Services to pay more than 6 bln pesos in dues to the government and to maintain its 25-year concession agreement, dealers said. At 10.25 am, Benpres was down 0.03 pesos, or 5.26 pct, at 0.54 on volume of 14.09 mln shares. The composite index was up 2.40 points, or 0.17 pct, at 1,415.51. Justice Undersecretary Manuel Teehankee said at the weekend that the court issued the order to Maynilad after the utility tried to pull out of the concession last year, citing government failure to comply with requirements. The court order represents "a major victory" for both the government and the state water regulator, Teehankee said in a statement late Saturday. The ruling requires Maynilad to continue its services within its concession area in cooperation with the state water regulator, the Metropolitan Water and Sewerage Services (MWSS), he said. Dealers said the ruling would be a burden for Benpres, which has yet to fully recover from its financial troubles. The company is seeking to restructure debts totaling 552 mln usd. "The court ruling has sent jitters regarding Benpres' financial health. The payment would be a drain on Benpres' cash holdings, Maynilad being its subsidiary," Westlink Global Equities chairman Rommel Macapagal said. A Benpres spokeswoman said the company will issue a statement later this afternoon regarding the action to take following the ruling. Maynilad in late 2002 decided to pre-terminate its 25-year concession agreement with the MWSS after failing to get rate increases. It said the government failed to comply with the terms of the concession agreement. It later brought the case before the International Court of Arbitration after the government resisted its decision to pre-terminate the concession. (1 usd = 55.408 pesos) edelacruz@afxasia.com |
| Philippines' Chemphil acquires Rhodia's 40 pct in Chemphil Albright & Wilson |
MANILA (AFX-ASIA) - Chemical Industries of the Philippines Inc said its board executive committee has approved the company's plan to purchase the entire 40 pct stake of Rhodia Consumer Specialties Ltd in unit Chemphil Albright & Wilson Corp. It said the transaction involves 120.53 mln common shares valued at 250, 000 usd. Chemphil presently has a 59.67 pct stake in the unit. Chemphil gave no other details in its disclosure to the stock exchange. At 10.08 am, Chemphil was untraded after closing at 55.00 pesos previously. (1 usd = 55.418 pesos) edelacruz@afxasia.com |
| Forex - Philippine peso weaker on domestic political, security concerns |
MANILA (AFX-ASIA) - The peso lost ground in early trade against the US dollar, weighed down by domestic political and security concerns, dealers said. They said the market is awaiting developments regarding the impeachment case against Supreme Court Chief Justice Hilario Davide as Congress resumes session today. Security jitters have also re-emerged following the weekend takeover of the Manila airport control tower by a former aviation official and an ex-navy officer, who were both killed after a three-hour siege. At 9.41 am, the peso averaged 55.419 to the dollar after weakening to the 55.350-55.490 range early in the session on volume of 58.0 mln usd. It closed at 55.270 Friday. "The market is testing at what level the central bank will support the peso amid political and security concerns," a commercial bank dealer said. "But we want to see if the peso's slide is backed up by corporate demand for dollars. If not, then we may see a recovery later in the session." The market is awaiting in particular whether the House of Representatives will be able to transmit the Articles of Impeachment to the Senate, which will act as the impeachment court. Philippine authorities, meanwhile, are looking into whether the airport control tower siege was part of a plot to grab power or sow terror. One of the attackers, former aviation chief Panfilo Villaruel, was interviewed over radio during the siege and denounced alleged corruption in the government. The siege amid political tension and debate over the constitutionality of the impeachment of Davide has sparked fears of further unrest. edelacruz@afxasia.com |
| Philippine EDSA Properties Holdings says it has complied with SEC rules |
MANILA (AFX-ASIA) - EDSA Properties Holdings Inc said it has submitted its quarterly reports to the Securities and Exchange Commission and denied a newspaper report saying that it had not done so. In a disclosure to the stock exchange, EDSA Properties said it has original copies of the reports that were acknowledged by the regulator. The stock exchange has halted trading in the shares of EDSA Properties and that of another company, Kuok Philippines Properties Inc, pending clarification of the newspaper article. The exchange has yet to lift the suspension. afxmanila@afxasia.com |
| Philippine exchange halts trading on Kuok, Edsa Properties |
MANILA (AFX-ASIA) - The Philippine Stock Exchange said it has suspended trading in shares of Kuok Philippine Properties Inc and Edsa Properties Holdings Inc for non-submission of reportorial requirements. The Securities and Exchange Commission had earlier threatened to revoke the secondary licenses of the two firms due to their non-compliance. SEC chairperson Lilia Bautista was quoted by a major newspaper as saying that the SEC will be constrained to cancel their licenses to sell securities to the public should the two firms continue to evade the requirement of the regulators. afxmanila@afxasia.com |
| Philippines' Metrobank seen to post 4.0 bln pesos in net profit in 2004-report |
MANILA (AFX-ASIA) - Metropolitan Bank & Trust Co is expected to earn 4.0 bln pesos in net profit in 2004, 1.0 bln pesos more than its target earnings this year, the BusinessWorld newspaper reported, quoting unidentified sources. The country's largest lender in terms of assets is also seen setting aside 4.0 bln pesos in provisions for probable loan losses next year. Metrobank booked 2.36 bln pesos in net profit for the nine months to September, slightly higher than the 2.335 bln pesos earned a year earlier, giving it enough headroom to meet its 3.0 bln target for 2003. (1 usd = 55.27 pesos) cecille.yap@afxasia.com |
| Manila shares outlook - Mixed to lower on consolidation, politics |
MANILA (AFX-ASIA) Share prices are expected to open mixed to lower on extended consolidation and political concerns, with investors likely to take advantage of higher prices to lock in recent gains, dealers said. Last Friday, the composite index closed down 10.28 points, or 0.72 pct, at 1,413.11 on volume of 392.93 mln shares valued at 484.98 mln pesos. "Market sentiment may turn negative with the resumption of session of Congress (today) and if the political crisis between Congress and the Supreme Court is not resolved soon," BPI Securities said. The House of Representatives is widely expected to formally endorse to the Senate today its impeachment complaint against Supreme Court Chief Justice Hilario Davide over the alleged misuse of the Judiciary Development Fund. Meanwhile, the Supreme Court is also seen issuing its decision on whether the impeachment complaint is constitutional. BPI Securites said investors would prefer to see the market consolidate first before taking new positions. It sees the market support at 1,386 and resistance at 1,410. |
| Philippines' SEC threatens to revoke licenses of 2 companies - report |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has threatened to revoke the secondary licenses of Kuok Philippine Properties Inc and Edsa Properties Holdings Inc for their non-submission of reportorial requirements, the Philippine Star newspaper reported, quoting SEC chairperson Lilia Bautista. Bautista said the two firms have failed to file quarterly reports despite repeated demands from the SEC. If the two firms continue to evade the regulator's requirement, the SEC will be constrained to cancel their licenses to sell securities to the public, Bautista was quoted to have said. afxmanila@afxasia.com |
| Philippines' Petron Corp receives tax perks for 5.5-bln peso refinery upgrade |
MANILA (AFX-ASIA) - Listed oil refiner Petron Corp will receive tax breaks from the government for the 5.5-bln peso modernization of its refinery in the province of Bataan, the Board of Investment (BoI) said. The BoI said it has approved the grant of fiscal and non-fiscal incentives for Petron's refinery upgrade, and at the same time pre-qualified the country's largest oil refiner to put up its own gasoline and service stations all over the country under the new liberalized Retail Trade Law. Petron is allotting 3.0 bln pesos for an oil hydrotreater to lower the sulphur content of its diesel products, and an additional 2.0 bln pesos for a light virgin naphtha isomerization facility to meet the new specifications on aromatics and benzene contents of gasoline products. The BoI said Petron will not be entitled to all the incentives since the refiner's additional infusion is only intended to improve the quality of its products. It did not elaborate. (1 usd = 55.27 pesos) cecille.yap@afxasia.com |
| Philippine central bank declares 4.0 bln in UCPB loans as substandard -reports |
MANILA (AFX-ASIA) - The central bank has declared substandard some 4.0 bln pesos worth of loans that the government-sequestered United Coconut Planters Bank (UCPB) had extended to companies linked to San Miguel Co chairman Eduardo Cojuangco Jr, the Philippine Daily Inquirer and BusinessWorld newspapers reported. A substandard loan is defined as one that carries "substantial and unreasonable degree of risk to the bank." Cojuangco and the government have been in a decades-long legal battle over both UCPB and San Miguel. The central bank said the substandard loans were given to Asturias Chemical Industries Inc, Lucky Star Holdings Inc and Skyassets Inc between 1999 and 2001, when the bank has been hounded by rising non-performing loans and mounting losses. "All three accounts are classified as substandard-secured in the current examination because of deficiencies in documentation and financial weaknesses, " the central bank said in its most recent audit report of UCPB. It however noted that of the three borrowers, only Lucky Star had an apparent link to San Miguel. San Miguel vice chair Ramon Ang owns 89.12 pct of Lucky Star. Cojuangco has been in a legal tussle with government over his disputed stake in UCPB, which administers 27 pct of the food and beverage conglomerate. Cojuangco personally owns 20 pct of San Miguel, while coconut farmers own 27 pct through the coconut levy fund. The anti-graft Sandiganbayan court earlier rejected Cojuangco's claim over the UCPB shares, after it ruled that the coco levy collected from farmers during the Marcos administration and used to buy the shares were public funds. Cojuangco however said he bought 72.22 pct of First United Bank from his relatives in 1975. The shares were then sold to the Philippine Coconut Authority in behalf of coconut farmers and using the coco levy funds, with Cojuangco getting 10 pct of the purchased stocks as "broker's fee." (1 usd = 55.27 pesos) cecille.yap@afxasia.com |
| Philippine government revenue seen exceeding 2003 target by 3.0 pct |
MANILA (AFX-ASIA) - The government is expected to generate as much as 602. 0 bln pesos in revenue this year, 3.0 pct or 18.0 bln pesos higher than the target, on the back of higher collections by the Bureau of Internal Revenue and the Bureau of Customs, a source from the Development Budget Coordination Committee said. The higher revenue should have allowed government to meet its 202-bln pesos budget deficit target for the year if had spending not accelerated in the third quarter. Government expenditures as of end-September had already exceeded the ceiling by 19.0 bln pesos. "The likely scenario for the revenue program is a high of 602 bln pesos against a program of 584 bln. The high scenario leaves room for additional disbursements of only 18.0 bln pesos to keep the 202-bln (budget) deficit target intact," the DBCC source said. Government must limit spending to 205.7 bln pesos and earn at least 152.3 bln to keep the deficit within the ceiling in the fourth quarter. (1 usd = 55.27 pesos) cecille.yap@afxasia.com |
| Philippines' PLDT plans to issue 15 bln pesos in bonds in 2004 - report |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) plans to issue next year bonds worth as much as 15.0 bln pesos to refinance maturing foreign-currency obligations, the Philippine Daily Inquirer reported, quoting unidentified sources. The report said PLDT president and chief executive officer Manuel Pangilinan has offered members of the Investment Houses Association of the Philippines the opportunity to underwrite the peso-denominated bonds as a club deal. The bonds, which will be issued in tranches over a one-year period, will have a maturity of five years and be listed at the country's fixed income exchange that is expected to operational by the second quarter of 2004. Last June, the central bank approved PLDT's application to issue as much as 450 mln usd in notes to fund the company's infrastructure spending. (1 usd = 55.270 pesos) cecille.yap@afxasia.com |
| Arroyo says airport siege not an attempt to grab power |
MANILA (AFX-ASIA) - President Gloria Arroyo said the brief siege of the Manila airport control tower that left two gunmen dead was not an attempt to grab power. "The course and magnitude of the incident show that is not an attempt to take over the government," Arroyo said on televised nationwide address Saturday. She was speaking just hours after police shot dead the Philippines' former top aviation regulator Panfilo Villaruel and an ex-navy lieutenant, identified as Ricardo Gatchalian, who took over the airport tower around midnight (1600 GMT Friday). Arroyo said "no unauthorized movement of troops have been detected as of this time anywhere in the country, no unusual threats directly or remotely have been monitored." However, she said the police and military would remain on "maximum alert. " She added that security checkpoints have been established around Manila while monitoring posts in the provinces and key urban centers activated as part of government surveillance. "I ask the public to remain calm, cooperate with authorities and bear with temporary inconveniences brought about by this incident," Arroyo said. "The situation has been resolved. We will scale down our alerts quickly as complete normalcy is established," she said, adding that alternate control facilities have been activated at the Manila airport so that inbound and outbound flights would not be hampered. Manila's former air transport office chief Villaruel and Gatchalin seized control of the tower using handguns and explosives. Police stormed the building before dawn Saturday to end the crisis, killing the two men, who claimed they wanted to expose corruption in government as reason for their action. |
| Foreign donors pledge 2 bln usd aid for Philippines in 2004 |
CEBU, Philippines (AFX-ASIA) - Foreign aid donors have pledged to extend 2 bln usd in assistance to the Philippines in 2004 following a meeting here yesterday, officials said. The 2 bln usd in aid was pledged by the governments of Canada, France, Japan, Australia, Germany, South Korea, New Zealand, the US, Finland, Netherlands and Britain, said Finance Secretary Jose Isidro Camacho and World Bank country director Robert Vance Pulley. Also contributing are the Asian Development Bank, the Saudi Fund Development, the European Community, the United Nations, the World Health Organization and the World Bank. This amount is some 15 pct less than the amount pledged during last year's consultative group meeting of the Philippines' foreign aid donors, said Camacho at the close of the two-day gathering in Cebu. He said attendance at this meeting was not as large as last year because it was held during Ramadan which prevented some potential Muslim donors from coming. Camacho emphasized that out of the 2 bln usd already pledged for 2004, 430 mln was earmarked for the strife-torn region of Mindanao which has been scarred by decades of separatist rebellion by the country's Muslim minority. However Camacho said that they did not have a breakdown of how much of aid was in loans and how much was in grants. "Everything is in generalities" said Camacho, adding that aid projects "have yet to be identified." Pulley said that the large aid commitments came because the Philippines had arrested the decline in tax revenues as a share of the gross domestic product (GDP). He also cited "low inflation rates, stable interest rates, strong growth of consumption, robust overseas worker remittances, stronger exports to China (and) relatively peaceful industrial relations." The 2 bln usd pledge does not include a 540 mln usd "multi-donor trust fund for Mindanao", that will become operational once a peace accord is signed with Muslim separatist rebels in the southern region of Mindanao, President Gloria Arroyo said. Arroyo, who attended the closing of the conference, said that the large aid pledges came because her government had fortified macroeconomic fundamentals and kept inflation below projections despite the Iraq war and the outbreak of the Severe Acute Respiratory Syndrome (SARS) earlier this year. The trust fund for Mindanao will be open to the Philippines after the government signs a peace accord with the main Muslim rebel group, the Moro Islamic Liberation Front (MILF), Arroyo added. She also said the government hoped to open formal talks with the MILF soon. However Camacho said the foreign donor community is still concerned over "fiscal consolidation," including the passage of key legislative reforms. The donors also called for efforts to "strengthen the banking system" to address non-performing loans and inadequate capitalization of some banks, as well as the importance of improving the investment climate. He also said that the donor community "notes the need to curb the relatively high population growth rate in the country," -- a ticklish issue in this country where most people are followers of the Roman Catholic faith which bars the use of artificial birth control devices. |
| Court orders Philippines' Maynilad to pay dues to govt, maintain concession |
MANILA (AFX-ASIA) - The International Arbitration Court has ruled that Maynilad Water Services should pay more than 6 bln pesos in dues to the government and must maintain its 25-year concession agreement, Justice Undersecretary Manuel Teehankee said. He said the court issued the order to Maynilad after the utility tried to pull out of the concession last year, citing government failure to comply with requirements. The court order represents "a major victory" for both the government and the state water regulator, Teehankee said in a statement late Saturday. The ruling requires Maynilad to continue its services within its concession area in cooperation with the state water regulator, the Metropolitan Water and Sewerage Services (MWSS), Teehankee said. He said the utility could still appeal the decision either with the international court or the local Court of Appeals but he expressed optimism that such moves would not bear fruit. Spokesmen for Maynilad could not be contacted for comment. The water firm is a joint venture between the Benpres Holdings Corp of the politically-prominent Lopez family, and an affiliate of French multinational Suez Lyonnaise des Eaux. Maynilad had announced in December that it is ending its 25-year concession agreement with the MWSS after failing to get rate increases. When the government resisted this, Maynilad brought the case before the International Court of Arbitration. Maynilad had blamed the government for failing to comply with the terms of the concession agreement but the government said it was Maynilad which had failed to live up to the conditions of the accord. The company had blamed the Asian financial crisis in 1997, the El Nino weather phenomenon and the government's failure to complete a vital river basin project for its inability to comply with the concession agreement. Maynilad won in 1997 the 25-year concession to supply water and improve water and sewerage services to about half of Manila. |
| Manila police kill 2 armed men in gun battle for airport control tower |
MANILA (AFX) - Police shot dead two armed men early Saturday shortly after they took over the Manila airport control tower in the Philippine capital, airport security chief Angel Atotubo said. Police became involved in an intense gun battle to recapture the control tower after "suspicious-looking characters were seen inside the tower", airport general manager Edgar Manda said over DZRH radio. Radio reports said up to 15 armed men led by a former aviation regulator, Panfilo Villaruel, had seized the tower shortly after midnight. |
| Philippines' Security Bank gets central bank approval for cash div |
MANILA (AFX-ASIA) - Security Bank Corp said the central bank has approved its declaration of a 0.15 peso cash dividend to be paid on Dec 16 to stockholders on record as of Nov 20. (1 usd = 55.27 pesos) edelacruz@afxasia.com |
| Philippines' Jollibee Foods cash div 0.20 pesos/share |
MANILA (AFX-ASIA) - Jollibee Foods Corp said it will pay a cash dividend of 0.20 pesos per common share to stockholders. The payment date is set for Dec 8. It said the dividend will be taken from its unrestricted retained earnings as of Dec 31, 1997. The company said it has declared total cash dividends of 0.35 pesos per share this year, representing an increase of 25.00 pct over the total 0.28 pesos per share given last year. "The significant increase in cash dividends reflects the healthy cash flows of our business. The total cash dividends this year are the highest-ever declared by Jollibee Foods and this is remarkable since we are making one of our largest capital investments at the same time," Jollibee chief finance officer Ysmael Baysa said in a statement. Jollibee's total capital expenditure for the first nine months of 2003 amounted to 1.40 bln pesos, an increase of 74.00 pct over the 807.00 mln spent in the same period last year. Jollibee is expected to spend about 1.70 bln pesos this year, mainly on a new plant in Canlubang and new stores, which will total 80 by the end of this year. "Our working capital level meanwhile is quite healthy with accounts receivable at 15 days and inventory at 17 days of sales," Baysa said. He said the cash dividend will likely improve the payout ratio. "If we use the analysts' earnings estimate for Jollibee Foods in 2003 of 1.238 bln pesos or 1.25 pesos earnings per share, the payout ratio will increase from 26.24 pct in 2002 to 28.26 pct in 2003," he said. "We believe, based on our projections, that this rate is sustainable and that the plowback rate, or the rate retained for the business, is sufficient to drive our future growth." Baysa added that Jollibee is expected to continue making sizeable investments in the year ahead. "There are good investment opportunities for us, both in the domestic market and abroad," he said, without elaborating. Jollibee posted third quarter to September net profit of 298.00 mln pesos, up 12.50 pct from a year earlier, on the back of higher retail sales. Sales growth was propelled by its Chinese fast food chain Chowking, but Jollibee is more popular with its hamburgers and fried chicken. It operates Jollibee stores in US, Hong Kong, and Brunei, and has been looking to penetrate China. For the first nine months, Jollibee's net profit grew 17.20 pct year-on-year to 910.00 mln pesos. (1 usd = 55.270 pesos) edelacruz@afxasia.com |
| Forex - Philippine peso closes weaker on renewed security concerns |
MANILA (AFX-ASIA) - The peso closed weaker versus the US dollar on re-emerging security concerns following President Gloria Arroyo's pronouncement of renewed destabilization efforts against her government, dealers said. Arroyo said some groups were trying to overthrow her government by capitalizing on a raging constitutional crisis, but warned the full force of the law would be used to stop attempts to oust her from power. The peso closed at 55.270, its lowest level during the day, after opening firmer at 55.075. Total volume reached 183.85 mln usd. It closed at 55.090 yesterday. "Banks have started to cover their short (dollar) positions ahead of the weekend," a local bank dealer said, adding a slightly weaker yen versus the US dollar also weighed on other currencies in the region. Corporates also preferred to hold on to their dollar hoard ahead of the crucial November 10 opening of both houses of Congress. The market is waiting to see if the House of Representatives will be able to transmit on Monday the impeachment complaint against Supreme Court Chief Justice Hilario Davide to the Senate for deliberation. Dealers have projected a wide trading range next week, with the peso seen trading between 54.900-55.600 to the US dollar on lingering political concerns. cecille.yap@afxasia.com |
| OFFICIAL CORRECTION - Philippine govt to issue 3-yr 250.0 mln usd T-bills |
(Finance department correcting amount of offering to 250.00 mln usd from 150.00 mln) MANILA (AFX-ASIA) - The Department of Finance said the government will issue 250.00 mln usd worth of dollar-denominated retail treasury bills with a three-year maturity. The launch and pricing is expected next week, Finance Secretary Jose Isidro Camacho said in a statement, and the proceeds will be used to fund the government's 2004 financing requirement. The government has appointed HSBC, Land Bank of the Philippines, and First Metro Investment Corp as joint lead managers for the issue. The government is seeking to cover up to 1.00 bln usd of the 1.80 bln usd of 2004's foreign financing requirement before the end of the year. It has already raised about 800.00 mln usd from the recent sale of 1.05 bln usd worth of long-term bonds. The government deems it necessary to pre-fund its 2004 requirements as it expects uncertainties in the run-up to the May elections will make Philippine debt issues unattractive in the international market. (1 usd = 55.156 pesos) edelacruz@afxasia.com |
| Philippines' Negros Navigation 9 mths net profit 73.6 mln pesos vs 67.3 mln |
MANILA (AFX-ASIA) - Listed shipping firm Negros Navigation Co (Nenaco) reported its nine month to September net profit rose 9.0 pct year-on-year to 73.6 mln pesos on the back of its debt reduction program and strict cost management. Revenues for the nine-month period fell to 1.794 bln pesos from 1.829 bln a year earlier due to lower passage and freight cargo traffic in the third quarter. No third quarter data was provided in its press statement. Operating costs rose 5.0 pct to 1.527 bln from 1.457 bln a year earlier due fuel and lubricant price increases, expansion and improvement of terminal services and the introduction of new promotional and marketing programs. "During what has been an industry-wide lean third season, management further improved Nenaco's balance sheet by effecting real debt reduction exercises as well as continuing to reexamine and hold key costs," Nenaco president and general manager Conrado Carballo said. The company said strict cost management reduced general and administrative costs to 189.6 mln pesos in the nine month period from 200.5 mln a year earlier. Financing costs rose 10 pct to 86.6 mln pesos due to the servicing of liabilities and other costs related to its debt restructuring program. (1 usd = 55.156 pesos) cecille.yap@afxasia.com |
| Philippines' Metro Pacific back to profit in 9 mths to September |
MANILA (AFX-ASIA) - Metro Pacific Corp said its unaudited net profit for the nine months to September came to 107.70 mln pesos, from a loss of 8.60 bln in the same period last year. The company gave no results for the third quarter. It attributed the recovery to improved performances of its real estate and shipping businesses, as well as exceptional gains from debt-reduction exercises. The company said the reversals of provisions, which were no longer needed, also helped it return to profitability. Metro Pacific said its loss last year included 7.20 bln peso provisions for an expected sale of shares in former subsidiary Bonifacio Land Corp. The company sold its controlling stake in Bonifacio Land to a group composed of Ayala Land Inc and Evergreen Holdings, which had assumed 90.00 mln usd of debt owed by Metro Pacific to Larouge BV. In exchange for settling the debt, the joint venture took over Metro Pacific's 50.40 pct stake in Bonifacio Land, which controls the Global City property development in the former military camp Fort Bonifacio. Metro Pacific's consolidated net revenues in the nine-month period fell to 2.80 bln pesos from 4.10 bln a year ago, reflecting the fact that Bonifacio Land was no longer contributing to the group's accounts. Operating expenses totalled 520.90 mln pesos compared with 772.80 mln a year earlier. Financing charges fell 49.20 pct to 553.70 mln from 1.10 bln, while net non-recurring gains stood at 645.80 mln pesos, resulting from debt-for-asset swaps. As of Sept 30, Metro Pacific said it had repaid, or had reached agreements on, a total 12.10 bln pesos in outstanding loans, representing 94. 00 pct of debts totalling 12.90 bln. Property unit Landco Pacific Corp's unaudited net profit stood at 35.80 mln pesos in the nine-month period, up from 25.30 mln a year ago, while revenues rose to 508.10 mln from 421.60 mln. Property unit Pacific Plaza Towers reported total revenues of 323.50 mln pesos versus 136.20 mln a year earlier as a result of increased new unit sales. But it incurred a marginal net loss of 11.60 mln pesos due to increased operating costs. Shipping unit Negros Navigation Co (Nenaco) reported an unaudited net profit of 73.60 mln pesos in the nine-month period, up from 45.80 mln a year ago, with revenues of 1.79 bln compared with 1.82 bln for the same period in 2002. "As we near the conclusion of our debt-reduction and restructuring program, our efforts are now largely concentrated on enhancing the performance of our existing businesses through strict cost management and focused expansion," Metro Pacific president and chief executive officer Jose Maria Lim said in a statement. "Landco's and Nenaco's performances have improved ahead of expectations, and their better outlook gives us the confidence that the additional initiatives we are presently developing, will also be successful at broadening and deepening Metro Pacific's future revenues." Metro Pacific is a unit of the Hong Kong-listed First Pacific Co Ltd. (1 usd = 55.156 pesos) edelacruz@afxasia.com |
| Philippine leader Arroyo warns of plots to overthrow her government |
MANILA (AFX-ASIA) - Philippine President Gloria Arroyo said today that some groups were trying to overthrow her government by capitalising on a raging constitutional crisis. She warned that her government would use the full force of the law to stop the groups which she did not identify. "Once more, I call for national unity as I warn all attempts to undermine the Republic through unlawful plots," Arroyo said in a statement as street protests and debate intensified over an opposition-led bid to impeach the Supreme Court Chief Justice Hilario Davide. Arroyo, who faces a presidential election in six months, is under pressure to defuse the crisis which has shaken business confidence and sparked fears military opportunists could use the standoff as a pretext for a coup attempt. "If anyone attempts to turn this controversy into an illegitimate bid for political power, let them be forewarned," Arroyo said. "We will preempt criminal conspiracies with the full force of the law," she said. Arroyo survived a military rebellion in July but fears of restiveness in the armed forces persist. This week, she placed the military on red alert, the highest of a three-tiered alert level of the armed forces, to head off possible "destabilization" attempts. Earlier this year, Congress dismissed an impeachment complaint filed by ex-president Joseph Estrada against Davide and seven other Supreme Court justices, who he accused of conspiring with Arroyo to remove him from office. Estrada has long blamed Davide for having legitimized his removal in a military-led popular uprising in 2001 amid a corruption scandal. Accusing Davide of effectively mismanaging a judicial fund, lawmakers have now threatened to impeach him in the House of Representatives on Monday despite a Supreme Court writ cautioning against the alleged unconstitutional move. If the impeachment process is launched, Davide has to face a trial in the Senate and could lose his job. Arroyo has proposed that the lower House of Representatives drop the impeachment complaint in return for the Supreme Court opening its financial accounts to legislators for inspection. Davide has previously refused this compromise and Arroyo's mediation effort had not made much headway. More than 80 members of the 226-member House of Representatives had signed a petition to impeach Davide -- more than the one third majority or 76 signatures required. But anti-impeachment legislators aligned to Arroyo are trying to influence House members not to attend the session on Monday to deny a quorum for at least 114 members to be present, sources said. |
| Philippine Treasury cancels 3-yr T-bond auction set for Dec 2 |
MANILA (AFX-ASIA) - The Bureau of Treasury said it has cancelled its auction of the 3-year T-bonds scheduled on Dec 2 in lieu of the 3-year retail Treasury bond offering on Nov 26. The retail bonds, to be offered for a minimum of 5.0 bln pesos, will be issued on Dec 1. (1 usd = 55.156 pesos) afxmanila@afxasia.com |
| Philippines' DFNN to list additional 7.0 mln common shares Nov 11 |
MANILA (AFX-ASIA) - Diversified Financial Network Inc (DFNN) will list on Nov 11 an additional 7.0 mln common shares, with a par value of 1.00 peso each, to cover the private placement by OCU Group Inc at a subscription price of 4.20 pesos each, the stock exchange said. DFNN closed today unchanged at 2.00 pesos. (1 usd = 55.156 pesos) edelacruz@afxasia.com |
| Philippines mulls diplomatic protest over Chinese move in Spratlys |
MANILA (AFX-ASIA) - The Philippines will protect its interests after reports suggested Chinese research vessels and warships had been sighted in the disputed Spratlys island chain, President Gloria Arroyo said in a statement today. "We will protect our interests under the law and our diplomatic covenants, " she said adding that a diplomatic protest to China was being considered. China, the Philippines, Brunei, Malaysia, Taiwan and Vietnam all claim the Spratlys, a chain of islands in the South China Sea which are believed to sit on vast mineral resources. Military chief General Narciso Abaya announced yesterday that the armed forces had monitored increased visits by Chinese research vessels and warships in the Spratlys with new markers seen on reefs unoccupied by rival claimants. Arroyo said that if the report was true, "it is a breach of the status quo agreement," reached last year between China, the Philippines and other countries which claim all or part of the Spratlys. The Association of Southeast Asian Nations (ASEAN), which includes Brunei, Malaysia, the Philippines and Vietnam, signed an accord with China last year calling on all the claimants to the Spratlys to avoid actions which may heighten tensions there. Taiwan, which is considered a renegade province by China, was not included in the declaration. The Spratlys are considered a potential flashpoint in the region. Vietnam and China have clashed twice over the Spratlys, in 1988 and 1992 and since the 1990s, the Philippines has been concerned over a Chinese installation on the Spratlys atoll of Mischief Reef. |
| Philippines' San Miguel Q3 net profit 1.79 bln pesos, up 15.0 pct yr/yr |
(Updating with breakdown of results) MANILA (AFX-ASIA) - San Miguel Corp said its third quarter to September net profit rose 15.00 pct year-on-year to 1.79 bln pesos, with sales revenue growing 9.00 pct to 35.90 bln pesos in the same period. The 1.79 bln pesos net profit result was at the lower end of the 1.80-2. 00 bln range of analysts' expectations, based on an AFX-Asia poll. In the nine months to September, net profit rose 6.00 pct year-on-year to 4.84 bln pesos. San Miguel said the third quarter boost in revenue came from all of its main business groups. The food and beverage conglomerate said it posted double-digit gains in international beer, Coca-Cola Beverage Group, and packaging segments. It said consolidated revenues for the nine-month period rose 9.00 pct year-on-year to 108.10 bln pesos. On a year-to-date basis, consolidated operating profit was up 1.00 pct at 9.50 bln pesos. In the third quarter, consolidated operating profit stood at 3.33 bln pesos. San Miguel gave no comparative figure. "With the containment of SARS, (the overseas beer business) achieved significant recovery, posting 11.00 pct consolidated volume growth in the third quarter," San Miguel said in a statement. Revenues from overseas beer operations rose to 68 mln usd in the third quarter. Liquor unit Ginebra San Miguel Inc posted a 5.00-pct year-on-year gain in sales revenue during the nine-month period to 8.51 bln pesos, with sales volume up 6.00 pct year-on-year. Coca-Cola Beverage Group sales rose 16.00 pct year-on-year to 9.60 bln pesos in the third quarter. In the nine-month period, revenue was up 13.00 pct year-on-year to 29.60 bln pesos. Sales revenue in the packaging segment went up 14.00 pct year-on-year to 4.30 bln pesos in the third quarter. On a year-to-date basis, revenues rose 17.00 pct to 13.30 bln pesos, while operating profit registered a 66.00 pct improvement to 2.20 bln pesos. The San Miguel Pure Foods Group contributed revenues of 10.40 bln pesos in the third quarter, up 8.00 pct year-on-year, while year-to-date revenues grew 7.00 pct to 29.50 bln pesos. (1 usd = 55.156 pesos) afxmanila@afxasia.com |
| Manila shares close lower on profit-taking |
MANILA (AFX-ASIA) - Share prices closed lower as investors continued to cash in on recent gains, particularly in Philippine Long Distance Telephone Co, dealers said. They said the market was cautious ahead of Monday's resumption of session of Congress, awaiting if the House of Representatives will be able to forward to the Senate its impeachment case against Supreme Court Chief Justice Hilario Davide Jr. Investors were also on the sidelines waiting for more third quarter corporate results, they added. The composite index closed down 10.28 points, or 0.72 pct, at 1,413.11 on volume of 392.93 mln shares valued at 484.98 mln pesos. It traded between 1, 408.42 and 1,422.03. In the broader market, losers narrowly beat gainers 29 to 28, with 45 stocks unchanged. "The market traded very lightly and quietly and was cautious ahead of Nov 10. Investors are waiting if the House will be able to transmit the Articles of Impeachment to the Senate," Accord Capital Equities analyst Lawrence de Leon said. The Senate will act as the impeachment court. The opposition-led move in the House to impeach Davide was based on allegations he misused public funds, a charge he strongly denied. "The market had reached oversold levels. Everybody is taking profit and squaring off their positions ahead of the weekend," DA Market Securities president Nestor Aguila said. PLDT was top-traded, down 10 pesos at 815 on 163,160 shares. Ayala Land was down 0.10 at 6.30 on 19.75 mln shares, while parent Ayala Corp was down 0.10 at 5.50 on 4.36 mln shares. The Ayala companies, along with Globe Telecom, will announce their third quarter results next week. Investors locked in gains in Ayala Corp, which posted gains recently on expectations of improved earnings contributions particularly from Globe. Globe was down 5.00 at 820. Globe had also recently rallied on expectations of an earnings boost from its wireless business. Analysts polled by AFX-Asia expect Globe to report on Tuesday a net profit of 1.60-2.60 bln pesos in the third quarter to September, exceeding the year-earlier profit of 1.30 bln. Barring any one-off charges, Globe's nine months to September net profit is seen in the range of 6.0-7.0 bln pesos, up from 4.30 bln in the same period last year, they said. Cross sales in Trans-Asia Oil and Energy Development Corp boosted its turnover, which totalled 67.35 mln pesos. The stock was up 0.08 at 1.00 on 67. 36 mln shares. San Miguel B, open to foreign investors, was down 0.50 at 62.50 on 325, 900 shares, while San Miguel A was unchanged at 56. Dealers said investors have discounted expectations of an improvement in the food and beverage conglomerate's third-quarter results. The company said its third quarter net profit was up 15 pct year-on-year to 1.79 bln pesos, at the lower-end of the 1.80-2.00 bln range of analysts' expectations, based on an AFX-Asia poll. Bank of the Philippine Islands was down 1.00 at 44. SM Prime, which will release its results on Monday, was up 0.10 at 7.40 on 1.98 mln shares. The all-shares index was down 14.61 points at 842.50. The commercial-industrial index was down 13.25 at 2,096.92. Property was down 0.91 at 620.01, and mining down 11.34 at 1,627.03. Oil was up 0.01 at 1.38. Banking and financial services shed 5.60 to 435.63. (1 usd = 55.156 pesos) edelacruz@afxasia.com |
MANILA (AFX-ASIA) - Share prices closed lower as investors continued to cash in on recent gains, particularly in Philippine Long Distance Telephone Co, dealers said. They said the market was cautious ahead of Monday's resumption of session of Congress, awaiting if the House of Representatives will be able to forward to the Senate its impeachment case against Supreme Court Chief Justice Hilario Davide Jr. Investors were also on the sidelines waiting for more third quarter corporate results, they added. The composite index closed down 10.28 points, or 0.72 pct, at 1,413.11 on volume of 392.93 mln shares valued at 484.98 mln pesos. It traded between 1, 408.42 and 1,422.03. In the broader market, losers narrowly beat gainers 29 to 28, with 45 stocks unchanged. (1 usd = 55.156 pesos) edelacruz@afxasia.com |
| Pioneer solar cell plant to be set up in Philippines by US firm Cypress |
---- by Mynardo Macaraig ---- MANILA (AFX-ASIA) - American technology firm Cypress will set up Southeast Asia's first wafer fabrication plant for solar cells in the Philippines in a move expected to fuel growth in the country's electronics industry. It will also be the first wafer fabrication plant in the Philippines, signalling the country's graduation to higher-end electronics manufacturing activities, officials said. Cypress Semiconductor's majority-owned subsidiary Sunpower Corp will begin setting up the plant next month for production of solar cells from wafers that are to be fabricated in the Philippines, said Theresa Go, director of the subsidiary's local operations. "This will be the first time for large-scale production of photo-voltaic cells to be carried out in Southeast Asia," she said. Photo-voltaic cells are the key components of solar energy systems, converting sunlight into electricity. They are vital in providing power in remote areas isolated from larger power grids as well as in reducing dependence on non-renewable energy sources like oil, officials said. Go said that most of the output would be exported with about 20 pct sold locally, adding that their photo-voltaic cells were among the most efficient in the world. Such cells could play a crucial role in the government's effort to provide electricity to remote rural areas and small islands, she said. Go said Sunpower decided to begin wafer fabrication in this country after the government and local utilities gave an assurance of a steady, stable supply of electricity and water, key ingredients for production of silicon wafers. Numerous assemblers of semiconductors and other electronic products have located in the Philippines in recent years, becoming the country's largest source of exports. The government has long been trying to convince the private sector to set up wafer fabrication facilities in the country so that more of the core materials for semiconductors would be produced locally. However, electronics firms have complained that Philippines infrastructure is not yet up to standard for wafer fabrication, which requires a very precise, steady supply of electricity and a guaranteed supply of water. Go conceded that making wafers for photo-voltaic cells was easier than making wafers for semiconductors. She expressed hope, however, that Sunpower's venture would show other electronic firms that the Philippines is improving its infrastructure to allow companies to engage in more sophisticated operations. Aside from semiconductor manufacturing in the Philippines, California-based Cypress's has facilities are in Indonesia and Taiwan. Go said Cypress chose the Philippines for this project because it had built up its Asian manufacturing base in the country over the last seven years. |
| Philippines' Cityland to launch new commercial/residential condominium |
MANILA (AFX-ASIA) - Cityland Development Corp said it will soon launch its new high-rise commercial, office and residential condominium, Cityland Makati Executive Tower 2, near the financial district of Makati City. Cityland gave no further details in its disclosure to the stock exchange. edelacruz@afxasia.com |
| STOCK ALERT -Philippines' San Miguel weaker ahead of Q3 results |
MANILA (AFX-ASIA) - San Miguel Corp's A and B shares were lower in late morning trade as investors locked in profits, having already discounted an improvement in third-quarter results, dealers said. San Miguel B, available to foreign investors, was down 0.50 pesos at 62. 50 on volume of 79,500 shares, while San Miguel A was down 0.50 at 55.50 on 106,200 shares. The food and beverage conglomerate is to release third quarter results today, which are largely expected to be in the range of 1.80-2.00 bln pesos, based on an AFX-Asia poll of analysts, versus 1.56 bln pesos in the same period a year ago. (1 usd = 55.162 pesos) edelacruz@afxasia.com |
| Manial shares lower on profit-taking, consolidation |
MANILA (AFX-ASIA) - Share prices were marginally lower in late morning trade as investors take profit while the market consolidates, dealers said. Investors also stayed on the sidelines ahead of more third quarter earnings reports and further developments on the impeachment complaint against Supreme Court Chief Justice Hilario Davide. At 10.23 am, the composite index was down 7.40 points or 0.52 pct at 1, 415.99 on 44.15 mln shares worth 158.45 mln pesos. It has so far traded between 1,415.85 and 1,422.03. Losers beat gainers 13 to 10, with 27 stocks unchanged. "The market had reached oversold levels. Everybody is taking profit and squaring off their positions ahead of the weekend," DA Market Securities president Nestor Aguila said. He said investors are taking a breather from telecom stocks, which have risen substantially in the past weeks, and have turned to other firms with promising revenue performance. "We're simply allowing the market to consolidate and search for its natural support level," Aguila added. The market's psychological support level is seen at 1,400, and resistance at 1,430. PLDT was top-traded, down 5.00 pesos at 820 on 12,210 shares. Dealers said investors have been taking profit after PLDT announced its robust third quarter net profit early this week. Ayala Land was down 0.10 at 6.30 on 3.16 mln shares, while parent Ayala Corp was down 0.10 at 5.50 on 1.7 mln shares. Meralco B, open to foreigners, was up 0.25 pesos at 20.75 on 411,000 shares. Meralco A was down 0.25 at 14.00 on 29,250 shares. Bank of the Philippine Island was down 0.50 at 44.50 on 72,500 shares. San Miguel B was down 0.50 at 62.50, while San Miguel A was steady at 56. 00. Benpres Holdings Corp, the parent firm of Lopez-led companies, was up 0. 01 pesos at 0.59 on 1.92 mln shares. Globe Telecom was steady at 825.00 on 1,210 shares. The all-shares index was down 1.25 points at 855.86. The commercial-industrial index was down 5.86 at 2,104.31. Property was down 4.07 at 616.85, while mining was also lower by 17.37 at 1,621.00. Oil was unchanged at 1.37. Banking and financial services shed 2.61 to 438.62. (1 usd = 55.146 pesos) cecille.yap@afxasia.com |
| Waterfront Philippines Q3 net profit 5.04 mln pesos vs loss 102.90 mln |
MANILA (AFX-ASIA) - Waterfront Philippines Inc's third quarter to September results: Revenues - 235.63 mln pesos vs 156.89 mln Costs and expenses - 144.30 mln pesos vs 191.83 mln Depreciation and financial charges - 85.91 mln pesos vs 67.96 mln Net profit - 5.04 mln pesos vs loss 102.90 mln Earnings per share - 0.00259 pesos vs loss 0.05288 Nine months to September results: Revenues - 736.64 mln pesos vs 541.65 mln Costs and expenses - 540.40 mln pesos vs 466.71 mln Depreciation and financial charges - 253.56 mln pesos vs 204.72 mln Net loss - 58.32 mln pesos vs loss 129.79 mln Loss per share - 0.02997 pesos vs loss 0.06670 (1 usd = 55.157 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Ayala Corp weaker on profit-taking |
MANILA (AFX-ASIA) - Ayala Corp was weaker in early trade as investors locked in recent gains made ahead of its third quarter results to be released next week, dealers said. Ayala Corp was down 0.10 pesos at 5.50 on volume of 1.66 mln shares. Dealers said investors were generally cautious ahead of the Nov 10 resumption of session of Congress, awaiting if the House of Representatives will be able to transmit to the Senate the Articles of Impeachment against Supreme Court Chief Justice Hilario Davide Jr. They said investors are also taking a breather while waiting for the release of more third quarter results. Ayala Corp's recent gains were on expectations of increased earnings contributions particularly from unit Globe Telecom Inc, which is also expected to report on Tuesday a third quarter net profit significantly higher than a year ago on sustained gains in the wireless business. (1 usd = 55.146 pesos) edelacruz@afxasia.com |
| Manila shares outlook - Mixed to lower on extended profit-taking |
MANILA (AFX-ASIA) - Share prices are expected to open mixed to lower, with investors likely to continue cashing in on recent gains, dealers said. They said the market is due for a correction after rising more than 5.0 pct in previous days. Yesterday, the 30-company composite index closed down 2.48 points or 0.17 pct at 1,423.39, on 193.24 mln shares worth 412.67 mln pesos. "Market fundamentals look much improved as some companies have reported strong third quarter earnings. We still expect some market support as investors may accumulate select blue chips ahead of their earnings release next week," BPI Securities said. Positioning in Ayala Corp and units Ayala Land and Globe Telecom is widely expected ahead of their profit announcements beginning on Monday. BPI Securities said the technical charts suggest the market remains overbought and susceptible to profit-taking. "We however view market corrections as an opportunity to accumulate," it said. Support is at 1,410 and resistance at 1,440. (1 usd = 55.09 pesos) cecille.yap@afxasia.com |
| Philippines' SM Group to enter housing development - report |
MANILA (AFX-ASIA) - Chinese-Filipino businessman Henry Sy's SM Group will enter the housing sector with the launch of its first residential project in Paranaque City tomorrow, the BusinessWorld newspaper reported. Henry Sy Jr, president of SM Synergy Property Holdings Corp, said the company is set to launch the project after building a chain of shopping malls nationwide. "The thrust is to develop communities for the middle-class and overseas Filipino workers... The community concept has always been a part of the SM chain of malls," Sy Jr was quoted as saying. By the end of 2003, SM Prime will have 17 malls nationwide. cecille.yap@afxasia.com |
| Philippines' BIR October revenue 35.41 bln pesos, exceeds monthly target |
MANILA (AFX-ASIA) - The Bureau of Internal Revenue (BIR) exceeded its October revenue collection target by 4.31 pct to 35.41 bln pesos largely due to the shift in the taxation scheme of the banking sector, BIR commissioner Guillermo Parayno said. However, total BIR collections for 10 months to October fell 1.69 bln peso short of its 348.15 bln target for the period. "It's an uphill battle for us, primarily because one big source of our revenue, the excise taxes from petroleum products, has been shifted to the Bureau of Customs," Parayno told reporters. (1 usd = 55.09 pesos) cecille.yap@afxasia.com |
| Philippine PLDT to sell, lease out idle assets - report |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) intends to either put up for sale, lease or joint venture some of its idle assets in a bid to reduce operating expenses, the Philippine Daily Inquirer newspaper reported, quoting PLDT president Manuel Pangilinan. Pangilinan said its recent manpower reduction program has released a lot of office space. The company has identified various properties that can be sold or leased, including a prime property in Makati currently used as a garage by PLDT officials, which is reportedly being eyed by SM Prime for mall development. The report did not say how much the company intends to raise from the plan. cecille.yap@afxasia.com |
| Philippines' Globe Telecom seeks IFC's help in swap transactions |
MANILA (AFX-ASIA) - Globe Telecom Inc said it is seeking the backing of the World Bank's International Finance Corp (IFC) as a "counter party" in its various market swap transactions. In a proposal to the IFC, Globe said the arrangement with the financing institution will help it hedge some 300 mln usd in foreign exchange exposure. "The venture will allow Globe to match better the currencies of its revenues and debts, thereby reducing risk and allowing a healthy company to grow and prosper," Globe said. "The proposed IFC investment is currency/interest rate swap on a notational amount of up to 300 mln usd of debt, which, depending on the final structure of such swaps, will have a loan equivalent exposure of up to 20 mln usd." edelacruz@afxasia.com |
MANILA (AFX-ASIA) - Mobile phone manufacturer "By 2005, (the) forecast is that we will reach 26.60 mln subscribers, a 31.00-pct growth from where we will end in 2003 and 43.00 pct higher than the next country, which is Thailand," Amarante said in a speech at a presentation of new Wireless service providers Smart Communications Inc, the market leader, and affiliate Pilipino Telephone Co have a combined subscriber base of over 12.00 mln as of end-October, while analysts believe Globe Telecom Inc's subscriber base may now have reached 9.00 mln, after reporting its subscriber base was 7.30 mln at end-June. Digital Telecommunications Philippines Inc's Sun Cellular has also penetrated the local wireless market but has lagged behind its competitors. Amarante said the popularity of "short messaging service" (SMS), or sending text messages via cellular phones, in the Philippines will continue to drive mobile phone sales. Finnish handset manufacturer Nokia has more than 75.00 pct of the local market currently, but she said afxmanila@afxasia.com |
| Philippines SEC approves Ayala Land's 2.00-bln peso bond issue |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has approved Ayala Land Inc's proposed 2.00-bln peso bond issue, which the company will use to finance capital spending and maturing obligations, documents from the SEC showed. The debt instruments will be in the form of fixed and floating rate bonds, with a five-year maturity period, the company told the SEC. Ayala Land has appointed HSBC and Land Bank of the Philippines as joint lead managers for the issue. The issue, which comes after the company's 3.00-bln peso offer in April last year, is intended for the general public. The company said net proceeds from the offer, estimated to be 1.97 bln pesos after deducting expenses, will be used to repay 1.20 bln pesos worth of maturing obligations and finance 770.00 mln pesos worth of capital spending. Its capital expenditure plans include 311.00 mln pesos for land development, 1.12 bln for its residential projects and 899.00 mln for commercial property development. (1 usd = 55.09 pesos) cecille.yap@afxasia.com |
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