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Thursday, November 20, 2003
Philippine ERC says studying call to set up foundation with Meralco refund
OUTLOOK - Philippines Q3 GDP up 3.8-4.5 pct vs 3.2 pct rise in Q2
Philippines' Jollibee to list 10,892 shares on Nov 21 - stock exchange
Manila shares close higher on Wall Street rise, bargain-hunting
Philippines' Cityland Inc increases stake in Cityland Development to 50.4 pct
Singapore's KLW unit expands in Malaysia; looks to enter 3 more countries
Philippines' Swift Foods Q3 net loss 4.0 mln pesos vs loss 138.0 mln
STOCK ALERT - Philippines' PLDT firmer early on ADR gains, bargain-hunting
Bank of the Philippine Islands cash div 0.80 pesos/shr
Philippines' ERC to order Meralco to refund customers in cash
Philippines' Manila Water to spend 15 bln pesos to replace old pipes - report

Wednesday, November 19, 2003
Philippines' Banco de Oro signs remittance tie-up with Chartered Forex
Philippines' DMCI Holdings Q3 net profit 34.55 mln pesos vs loss 128.57 mln
Philippine Oct budget deficit 21.172 bln pesos vs 22.333 bln ceiling
Philippines' SM Development 9 mths net profit 292.66 mln pesos vs 274.27 mln
Philippines' Leisure & Resorts Q3 net loss 19.62 mln pesos vs loss 8.63 mln
Manila shares close lower on political concerns, in line with region
Philippine San Miguel's 2.0 mln B shares sold in cross transactions - PSE
Manila shares lower in late trade on political, security concerns; Wall St
Philippine central bank likely to keep interest rates unchanged -Buenaventura
Philippines' Metrobank, RCBC deny interest in acquiring PBCom
Philippines' SPI Technologies to acquire India's Kolam Information
Philippines' PBCom shareholders agree to inject 3.0 bln pesos in extra capital
Philippines' Benguet Corp to bid for Baguio City's water supply project
Philippine Atlas Mining Q3 net loss 331.55 mln pesos vs loss 92.97 mln
Philippines' Bankard Q3 net profit 29.77 mln pesos vs 30.25 mln
Philippine September imports 3.046 bln usd, down 4.5 pct yr-on-yr
Philippines' Banco De Oro says not in discussion to acquire PBCom
Philippine expects stronger agriculture growth in Q4 - Lorenzo
Philippine Bank of Communications expects to end 2003 in profit - report
Philippine Oct budget deficit about 21.17 bln pesos; lower than ceiling-source
FCC orders US carriers to resume payments to Philippines' Smart Communications
EU asks Asia to take tough measures to stem flow of fake goods - report
Philippine Treasury raises 3.0 bln pesos via five-year T-bond issue
Philippines' PNOC unit to apply for new exploration permit
Philippines' Jollibee, First Holdings to list additional shares this week -PSE
Philippines' Music looks to raise funds to address deficit, avoid delisting
Philippines' San Miguel obtains investment license for Vietnam expansion
Coca-Cola manager in Philippines killed in botched kidnap bid

November 17 - 18 
November 13 - 14 
November 11 - 12 
November 7 - 10 
November 5 - 6 
November 3 - 4 


 

Philippine ERC says studying call to set up foundation with Meralco refund


     MANILA (AFX-ASIA) - The Energy Regulatory Commission is studying a proposal from some business groups that a foundation be set up to manage the proceeds of 18 bln pesos from the last phase of Manila Electric Co's refund program, said ERC chairman Manuel Sanchez.
     The fourth phase of Meralco's ongoing 30.5 bln pesos refund program will cover commercial and industrial customers.
     "The proposal sounds palatable and we're seriously looking into it. The businessmen believe the 18 bln pesos has already been passed on to consumers and it is just right that the fund be used for social causes," Sanchez said at a press conference.
     Early this year, the Supreme Court ordered Meralco to refund to customers some 30 bln pesos in overcharges, which resulted from the power distributor's inclusion of income tax as part of its operating expense.
     Sanchez said businessmen have nominated that either Corazon Aquino or Fidel Ramos, the country's two former presidents, be named to head the foundation, which will address social issues, involving education, health and anti-drug campaigns.
     There are other business groups that want refunds credited to their future electricity billings, Sanchez added.
     Meanwhile, the ERC has ordered Meralco to complete the refund's third phase within six months from January. The third phase covers residential customers with monthly electricity consumption of at least 301 kilowatthours.
     Sanchez said the state regulator will not allow Meralco to refund customers through billing credits.
     (1 usd = 55.33 pesos)
     cecille.yap@afxasia.com

 

OUTLOOK - Philippines Q3 GDP up 3.8-4.5 pct vs 3.2 pct rise in Q2


     MANILA (AFX-ASIA) - The country's gross domestic product likely grew at a faster pace of 3.8-4.5 pct year-on-year in the third quarter than the 3.2 pct expansion in the preceding quarter on a strong recovery in agricultural output, economists said.
     Increased government spending and sustained gains in the services sector also aided economic growth, said economists AFX-Asia polled.
     With the improved performance in the July-September period, economists said the government has now a fair chance of meeting its full-year GDP growth target of 4.2-5.2 pct.
     The National Statistical Coordination Board will release the economic data next week.
     "The recovery in the agriculture sector was a pleasant surprise," said ATR Kim Eng Securities economist Luz Lorenzo, whose projection is for third-quarter GDP growth of 3.8-4.5 pct.
     Agricultural output, which accounts for about a fifth of the economy, grew 4.32 pct year-on-year in the third quarter on the back of improved volumes and higher revenue, despite unfavorable weather conditions.
     A dry spell hampered output, which grew only 1.52 pct year-on-year in the second quarter for a cumulative increase of just 2.4 pct for the first half, thereby limiting economic expansion in the period.
     University of Asia and the Pacific economist Victor Abola, who expects third-quarter GDP to have grown 4.0 pct year-on-year, also attributed the growth to the sustained positive performance of the services sector.
     The services sector's showing was, in particular, attributable to robust spending in and expansion of the telecommunications sector.
     Telecom companies, the darlings of stock-market investors, remained the country's highest earners on sustained growth in their wireless subscriber bases. In particular, they have been expanding in the countryside after the subscriber market in the urban area started to show signs of saturation.
     "The lower end of the government's 2003 GDP target is still achievable, although there are still some concerns over the lower-than-expected performance of the exports sector," Abola said.
     Exports posted almost flat growth of 0.40 pct to 26.267 bln pesos in the nine months to September, putting at risk the country's chances of meeting a full-year growth target of 5.0-8.0 pct for the sector.
     Electronics, the top-export earner, will have to post double-digit growth in the last quarter to achieve the goal. Electronics exports increased 0.90 pct in September to 2.162 bln usd after consecutive months of decline.
     GK Goh Securities economist Song Seng Wun said the Philippines' recovery is more modest than in other Asian countries, where the economies have rebounded on the back of stronger domestic demand following the SARS outbreak.
     Song said he expects the Philippines' economy to have grown 4.03 pct in the third quarter, upgrading his earlier forecast of 3.5-3.8 pct after stronger agricultural production.
     Banco de Oro Universal Bank market strategist Jonas Ravelas said: "Additional government spending, as reflected in the higher deficit figure, also contributed to growth."
     The government spent more than programmed in August and September, before returning to fiscal discipline in October.
     Its budget deficit stood at 21.172 bln pesos in October, lower than the ceiling of 22.333 bln, on the back of higher revenue collection during the period. The deficit for the January to October period amounted to 163.875 bln pesos, below the ceiling of 171.88 bln.
     Ravelas said he expects the GDP to have grown 4.0-4.2 pct year-on-year in the third quarter and sees and expansion of 4.0-4.25 for the full year.
     Greater spending in the run-up to next May's presidential election will see 2004 GDP grow a marginally higher 4.5 pct year-on-year, he added. (1 usd = 55.33 pesos)
     cecille.yap@afxasia.com

 

Philippines' Jollibee to list 10,892 shares on Nov 21 - stock exchange


     MANILA (AFX-ASIA) - Jollibee Foods Corp will list 10,892 common shares on Friday, Nov 21, the stock exchange said.
     The shares to be listed came under the company's tandem stock purchase and option plan.
     Jollibee closed unchanged at 16.75 pesos.
     (1 usd = 55.33 pesos)
     cecille.yap@afxasia.com

 

Manila shares close higher on Wall Street rise, bargain-hunting


     MANILA (AFX-ASIA) - Share prices led by Philippine Long Distance Telephone Co (PLDT) closed higher in a mixed session on the back of Wall Street's rise overnight and bargain-hunting in select stocks, dealers said.
     The 30-company composite index closed up 14.03 points or 1.06 pct at 1, 332.34 on 241.98 mln shares worth 418.46 mln pesos with turnover boosted by cross sales. It traded between 1,323.21 and 1,334.23.
     In the broader market, losers outnumbered gainers 28 to 22, with 41 stocks unchanged.
     PLDT, top-traded early, ended up 20 pesos at 745 on 111,380 shares, following the rise of its American Depositary Receipts (ADR) in New York last night, which gained 0.06 usd to 13.56.
     Dealers said the local market moved in line with other regional bourses, which rose early across-the-board in step with Wall Street's performance.
     They however doubt the sustainability of today's rise, saying the low value turnover indicates that investors remain cautious awaiting further developments in the political front, particularly the final list of candidates for the 2004 presidential election.
     "Today's rise was more a technical correction and does not herald another rally," Unicapital Securities senior analyst Elena Ponceca said.
     Technical charts suggest further downside at the 1,290-1,300 level before the market could sustain steady gains, she added.
     Dealers said the below-ceiling budget deficit for October and the first 10 months was welcomed by investors as an indication of the government's improving fiscal discipline.
     The Finance department announced on Wednesday that the government's budget deficit stood at 21.172 bln pesos in October, lower than the 22.333 bln ceiling, on the back of higher revenue collection during the period.
     In the 10 months to October, the deficit reached 163.875 bln pesos, below the ceiling of 171.88 bln.
     The government is even "more optimistic" of containing the budget deficit level within the full-year target of 202.00 bln pesos given the favorable October figures.
     San Miguel B was top-traded, unchanged at 60 on 1.4 mln shares, with turnover boosted by cross sales.
     SM Prime gained 0.20 pesos at 6.50 on 7.35 mln shares.
     Globe Telecom ended down 10.00 at 760 on 43,370 shares.
     Meralco B, open to foreigners, was higher by 1.50 at 21.50. Meralco A closed up 0.50 at 14.00.
     Parent First Holdings was also up 0.75 at 18.25.
     Ayala Land and parent Ayala Corp gained 0.10 to close at 5.80 and 4.95, respectively.
     Banking unit BPI gained 1.00 at 43.50 after announcing that its board of directors has approved a cash dividend of 0.80 pesos per share.
     The all-shares index was up 0.11 points at 825.31.
     The commercial-industrial index rose 12.66 to 1,977.68.
     Property was up 13.58 at 564.91, while mining shed 13.02 to 1,670.51.
     Oil was lower by 0.02 at 1.36.
     Banking and financial services ended higher by 4.79 at 423.91.
     (1 usd = 55.33 pesos)
     cecille.yap@afxasia.com

 

Philippines' Cityland Inc increases stake in Cityland Development to 50.4 pct


     MANILA (AFX-ASIA) - Cityland Inc has increased its stake in property firm Cityland Development Corp to 50.40 pct from the previous 46.59 pct through the purchase of 37.64 mln shares in several cross transactions at the stock exchange today.
     The shares were bought at 1.90 pesos apiece.
     No further details were provided by Cityland Development in its disclosure to the stock exchange.
     (1 usd = 55.33 pesos)
     cecille.yap@afxasia.com

 

Singapore's KLW unit expands in Malaysia; looks to enter 3 more countries


     SINGAPORE (AFX-ASIA) - Construction firm KLW Holdings Ltd said its retail unit Barang Barang has opened a franchise store in Malaysia and plans to set up more franchises in Australia, Philippines and Spain.
     The company added that Barang Barang plans to open a second franchise store in a Petaling Jaya mall just outside Kuala Lumpur before the year-end, with another two scheduled to open within the next two years.
     Its retail unit is also negotiating with franchise operators to enter markets in Australia, Philippines and Spain.
     Barang Barang has also opened another store in Singapore, bringing the total outlets in Singapore to six.
     The company has set a sales target of 14.0 mln sgd for Barang Barang in 2003, up 14.0 pct from 2002.
     KLW has asked for the lifting of its trading suspension following this announcement.
     (1 usd = 1.71 sgd)
     rosana.gulzar@afxasia.com

 

Philippines' Swift Foods Q3 net loss 4.0 mln pesos vs loss 138.0 mln


     MANILA (AFX-ASIA) - Swift Foods Inc's third quarter to September results:
      Net sales - 935 mln pesos vs 1.57 bln
      Cost and operating expenses - 931 mln pesos vs 1.7 bln
      Operating income - 4.0 mln pesos vs loss 128.0 mln
      Other charges - 8.0 mln pesos vs 10.0 mln
      Net loss - 4.0 mln pesos vs loss 138.0 mln
      Loss per share - 0.01 pesos vs loss 0.17
     Nine months to September results:
      Net sales - 2.83 bln pesos vs 4.17 bln
      Cost and operating expenses - 3.00 bln pesos vs 4.66 bln
      Operating loss - 173.0 mln pesos vs loss 494.0 mln
      Other charges - 10.0 mln pesos vs 45.0 mln
      Net loss - 191.0 mln pesos vs loss 540.0 mln
      Loss per share - 0.20 pesos vs loss 0.57
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

STOCK ALERT - Philippines' PLDT firmer early on ADR gains, bargain-hunting


     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co was firmer in early trade on bargain-hunting and due to gains made by its American Depositary Receipts (ADRs) in New York overnight, dealers said.
     At 9.38 am, PLDT was up 10 pesos at 735 on 200 shares so far.
     Its ADRs rose 0.06 usd at 13.56.
     Dealers said the stock was also due for accumulation after recent decline.
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Bank of the Philippine Islands cash div 0.80 pesos/shr


     MANILA (AFX-ASIA) - Bank of the Philippine Islands said its board of directors has approved a regular cash dividend of 0.80 pesos per share.
     The bank has yet to announce the recording and payment date.
     (1 usd = 55.34 pesos)
     cecille.yap@afxasia.com

 

Philippines' ERC to order Meralco to refund customers in cash


     MANILA (AFX-ASIA) - The Energy Regulatory Commission (ERC) is set to order the Manila Electric Co to pay in cash,starting in January, all customers under phase three of its ongoing 30.5-bln peso refund program, ERC chairman Manuel Sanchez said.
     The refund's third phase, which will cost the country's largest power distributor some 5 bln pesos, covers 822,744 residential customers with monthly consumption of more than 301 kilowatthours.
     "We will announce something that concerns Meralco's refund. We still want Meralco to implement Phase III starting next year and refund the involved customers through cash," Sanchez said.
     The state-run regulator will hold a press conference today.
     Meralco had proposed to carry out the last phase of its refund to residential customers through credit to future billings, and intends to implement it within a 24-month period or between March 2004 to Feb 2006.
     (1 usd = 55.34 pesos)
     cecille.yap@afxasia.com

 

Philippines' Manila Water to spend 15 bln pesos to replace old pipes - report


     MANILA (AFX-ASIA) - Manila Water Co, an Ayala Corp subsidiary providing water services to the east zone of metropolitan Manila, has earmarked 15 bln pesos over the next 10 years to replace old pipes that could be sources of unsafe drinking water, the Philippine Daily Inquirer newspaper reported, quoting Manila Water president Antonino Aquino.
     For this year alone, the water concessionaire has earmarked more than 2.6 bln pesos to replace some 300 kilometers of aging pipeline and to lay an additional 100 km of new pipes, Aquino said.
     He added the pipe replacement is part of the company's effort to reduce its non-revenue water resulting largely from illegal connections.
     (1 usd = 55.34 pesos)
     cecille.yap@afxasia.com

 

Philippines' Banco de Oro signs remittance tie-up with Chartered Forex


     MANILA (AFX-ASIA) - Banco de Oro Universal Bank said it has signed several agreements with Chartered Forex Philippines Inc for a remittance tie-up and exclusive co-branding in the US.
     "Pursuant to these agreements, Chartered Forex will have the exclusive right to co-brand its remittance services with the trusted name of Banco de Oro in the US and its protectorates," Banco de Oro corporate information officer Elmer Soriano said in a disclosure to the stock exchange.
     In return, Chartered Forex has committed to Banco de Oro its foreign and inward remittance business in the Philippines.
     Chartered Forex is one of the largest Filipino-owned remittance and freight forwarding groups in the US with operations in Asia and Europe.
     No further details were provided.
     cecille.yap@afxasia.com

 

Philippines' DMCI Holdings Q3 net profit 34.55 mln pesos vs loss 128.57 mln


     MANILA (AFX-ASIA) - DMCI Holdings Inc's third quarter to September results:
      Revenues - 1.12 bln pesos vs 912.15 mln
      Cost and expenses - 1.08 bln pesos vs 1.05 bln
      Net profit - 34.55 mln pesos vs loss 128.57 mln
      Earnings per share - 0.02 pesos vs 0.06
     DMCI is a holding company with investments in construction, real estate and infrastructure.
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Philippine Oct budget deficit 21.172 bln pesos vs 22.333 bln ceiling


     MANILA (AFX-ASIA) - The government's budget deficit stood at 21.172 bln pesos in October, lower than the ceiling of 22.333 bln, on the back of higher revenue collection during the period, the Finance department said.
     In the 10 months to October, the deficit reached 163.875 bln pesos, below the ceiling of 171.88 bln.
     Finance Secretary Jose Isidro Camacho said that given the favorable fiscal performance in October, the government is even "more optimistic" of containing the budget deficit level within the full-year target of 202.00 bln pesos.
     Revenue for the month of October totalled 56.152 bln pesos, 17.5 pct higher than the target of 47.77 bln. Expenditure amounted to 77.324 bln pesos, higher than the programmed level of 70.11 bln.
     In the ten-month period, revenue reached 512.798 bln pesos, higher than the 478.70 bln target. Expenditure totalled 676.67 bln pesos against a ceiling of 650.54 bln.
     The government spent more in the third quarter to spur economic activities and help boost domestic demand.
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Philippines' SM Development 9 mths net profit 292.66 mln pesos vs 274.27 mln


     MANILA (AFX-ASIA) - Investment company SM Development Corp's nine months to September results:
      Income - 305.88 mln pesos vs 283.09 mln
      Cost and operating expenses - 10.35 mln pesos vs 8.82 mln
      Net profit - 292.66 mln pesos vs 274.27 mln
      Earnings per share - 0.095 pesos vs 0.075
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Philippines' Leisure & Resorts Q3 net loss 19.62 mln pesos vs loss 8.63 mln


     MANILA (AFX-ASIA) - Leisure & Resorts World Corp's third quarter to September results:
      Gross margin - 172.12 mln pesos vs 154.64 mln
      Operating expenses - 181.97 mln pesos vs 150.51 mln
      Operating loss - 9.91 mln pesos vs 10.56 mln
      Net loss - 19.62 mln pesos vs loss 8.63 mln
      Loss per share - 0.0169 pesos vs LPS 0.0074
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Manila shares close lower on political concerns, in line with region


     MANILA (AFX-ASIA) - Share prices closed lower in thin trade as investors stayed on the sidelines awaiting further developments on the political front, and with sentiment further undermined by the across-the-board falls on other bourses in the region, dealers said.
     The 30-company composite index closed down 9.73 points or 0.73 pct at 1, 318.31, on 190.83 mln shares worth 511.94 mln pesos. It traded between 1,316. 30 and 1,328.04.
     In the broader market, losers outnumbered gainers 38 to 14, with 41 stocks unchanged.
     The market is technically oversold after nine days of declines, but political uncertainties may still prompt investors to continue selling in the coming sessions, dealers said.
     Investors are awaiting the final line-up of candidates for next year's presidential elections and are particularly eager to see whether popular action movie star Fernando Poe Jr will join the presidential race, dealers said.
     Peace and order concerns have also re-emerged following reports of a steady rise in kidnapping incidents this year, they added.
     "The lingering uncertainties have technically led the market to almost the same trend it went through when (former President) Estrada was impeached. Others may argue it could be cyclical," Accord Capital Equities analyst Ron Rodrigo said.
     The indecision of the political opposition to name its candidate in the 2004 presidential race has also kept investors on the sidelines. An announcement should be made at the soonest possible time, he added.
     San Miguel B was top-traded, although unchanged at 60 pesos on 2.25 mln shares, with the volume boosted by cross sales.
     Globe was down 5.00 at 770 on 113,360 shares.
     Ayala Corp ended down 0.05 pesos at 4.85 on 15.13 mln shares, its property arm Ayala Land also shed 0.20 to 5.80 on 9.09 mln shares.
     SM Prime was down 0.10 at 6.30 on 4.85 mln shares.
     Philippine Long Distance Telephone was down 5.00 at 725 on 80,720 shares.
     Meralco B, open to foreigners, gained 0.50 at 20.25. Meralco A was unchanged at 13.50.
     The all-shares index was down 3.22 points at 825.20.
     The commercial-industrial index fell 10.95 to 1,965.02.
     Property was down 13.80 at 551.30 and mining was up 67.41 at 1,683.53.
     Oil was unchanged at 1.38.
     Banking and financial services shed 0.59 to 419.12.
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Philippine San Miguel's 2.0 mln B shares sold in cross transactions - PSE


     MANILA (AFX-ASIA) - San Miguel B shares, which open to foreigners, were sold in several cross transactions in early and late trade today, data from the stock exchange showed.
     The cross sales, which Deutsche REGIS Partners handled, involved 2.0 mln shares sold at 60 pesos each, or for a total of 120 mln.
     At 11.43 am, San Miguel B, was so far top-traded and steady at 60.00 pesos apiece.
     No further details were available.
     (1 usd = 55.35 pesos)
     cecille.yap@afxasia.com

 

Manila shares lower in late trade on political, security concerns; Wall St


     MANILA (AFX-ASIA) - Share prices were lower in late anemic trade, extending eight days of declines, as investors were sidelined by political and security concerns ahead of next year's presidential elections and following reports of a rise in kidnapping cases so far this year, dealers said.
     Sentiment was further weighed down by Wall Street's losses overnight, which also sent other regional markets lower, they added.
     At 11.12 am, the 30-company composite index was down 8.49 points or 0.64 pct at 1,319.5 on volume of 96.98 mln shares worth 296.22 mln pesos. It has so far traded between 1,318.22 and 1,328.04.
     In the broader market, losers beat gainers 28 to 12, with 31 stocks unchanged.
     Dealers said investors are awaiting the final list of candidates for the 2004 presidential election, and are particularly watching whether popular action movie star Fernando Poe Jr - expected to be a strong contender - will join the race.
     Peace and order concerns have also re-emerged after Chinese Filipino community leader Teresita See, who leads an anti-kidnap watchdog group, said kidnapping incidents are on the rise this year. More than 100 people were kidnapped up to October, with one victim being snatched every three days, slightly higher than the 83 abductions recorded by government.
     The official figure itself reflects a 31.7 pct jump in kidnappings from January to October last year. The statistics were made public following the death of a Coca-Cola executive, who was found shot dead early on Tuesday after a suspected botched kidnap attempt.
     (1 usd = 55.34 pesos)
     cecille.yap@afxasia.com

 

Philippine central bank likely to keep interest rates unchanged -Buenaventura


     MANILA (AFX-ASIA) - The central bank is likely to keep benchmark interest rates unchanged at tomorrow's policy-setting meeting, central bank governor Rafael Buenaventura said.
     "There's no compelling reason to change rates," Buenaventura told reporters.
     He said the recent decline of the peso versus the US dollar is "not interest-rate driven."
     The central bank's borrowing and lending rates are at their lowest level in 11 years at 6.75 pct and 9.00 pct, respectively.
     (1 usd = 55.34 pesos)
     cecille.yap@afxasia.com

 

Philippines' Metrobank, RCBC deny interest in acquiring PBCom


     MANILA (AFX-ASIA) - Publicly-listed Metropolitan Bank & Trust Co and Rizal Commercial Banking Corp have separately denied they are interested in acquiring medium-sized Philippine Bank of Communications (PBCom).
     They did not elaborate further in their respective disclosures to the stock exchange.
     Earlier, Banco De Oro Universal Bank also submitted a denial on the same issue.
     cecille.yap@afxasia.com

 

Philippines' SPI Technologies to acquire India's Kolam Information


     MANILA (AFX-ASIA) - SPI Technologies said it has signed a stock purchase agreement for the acquisition of Kolam Information Services Pvt Ltd of India.
     It did not disclose the acquisition price.
     Kolam is a full service provider to scholarly and professional book publishers, with onshore project management capability in the US and three production facilities with 300 employees in India.
     "The acquisition signals further expansion of SPI's publisher services business unit's book services, complementing its current journal production services," SPI chief financial officer Francis Suarez Jr said in a disclosure to the stock exchange.
     SPI Technologies is said to be the largest independent business process outsourcing provider in Asia, with nine sales and customer support offices in US and Europe and nine production facilities in the Philippines, China, India and Vietnam.
     cecille.yap@afxasia.com

 

Philippines' PBCom shareholders agree to inject 3.0 bln pesos in extra capital


     MANILA (AFX-ASIA) - Shareholders of Philippine Bank of Communications (PBCom) have agreed to inject an additional 3.0 bln pesos in fresh capital to fund future expansion and increase its asset base, bank president Isidro Alcantara Jr said.
     The planned capital injection comes after the bank reported a nine month to September net loss of 85.35 mln pesos against a net profit of 281.8 mln pesos a year earlier.
     "Further growth requires additional capital which the shareholders are wholeheartedly backing up," Alcantara said in a disclosure to the stock exchange.
     PBCom is majority owned by the Luy, Nubla and Chung families.
     Alcantara said the bank is also exploring the possibility of unloading its non-performing loans (NPLs) and non-performing assets (NPAs) to a special purpose asset vehicle (SPAV).
     "The objective is to determine how much of our NPLs and NPAs can be resolved by transferring them to our own SPAV," Alcantara said.
     (1 usd = 55.40 pesos)
     cecille.yap@afxasia.com

 

Philippines' Benguet Corp to bid for Baguio City's water supply project


     MANILA (AFX-ASIA) - Mining firm Benguet Corp said it intends to bid for a bulk water supply project in Baguio City in northern Philippines.
     The company said it is still awaiting the terms of reference (TOR) being prepared by Baguio's water district.
     "Pending the issuance of the TOR and actual bidding, the company is assessing its resources and capability, and studying the financial and technical viability of the project," Benguet said in a disclosure to the stock exchange.
     No further details were provided.
     cecille.yap@afxasia.com

 

Philippine Atlas Mining Q3 net loss 331.55 mln pesos vs loss 92.97 mln


     MANILA (AFX-ASIA) - Atlas Consolidated Mining's third quarter to September results:
      Revenues - nil vs 4.88 mln pesos
      Cost and operating expense - 331.55 mln pesos vs 97.85 mln
      Net loss - 331.55 mln pesos vs loss 92.97 mln
      Loss per share - 0.93 pesos vs loss 0.35
     (1 usd = 55.40 pesos)
     cecille.yap@afxasia.com

 

Philippines' Bankard Q3 net profit 29.77 mln pesos vs 30.25 mln


     MANILA (AFX-ASIA) - Bankard Inc's third quarter to September results:
      Income - 648.89 mln pesos vs 530.99 mln
      Expenses - 605.40 mln pesos vs 492.32 mln
      Net profit - 29.77 mln pesos vs 30.25 mln
      Earnings per share - 0.10 pesos vs 0.09
     Nine months to September results:
      Income - 1.79 bln pesos vs 1.52 bln
      Expenses - 1.70 bln pesos vs 1.41 bln
      Net profit - 61.88 mln pesos vs 73.13 mln
      Earnings per share - 0.20 pesos vs 0.22
     (1 usd = 55.40 pesos)
     cecille.yap@afxasia.com

 

Philippine September imports 3.046 bln usd, down 4.5 pct yr-on-yr


     MANILA (AFX-ASIA) - Merchandise imports dropped 4.5 pct year-on-year to 3. 046 bln usd in September, a slight improvement from the 8.50 pct year-on-year decline posted in August, the National Statistics Office (NSO) said.
     In the January to September period, merchandise imports rose 4.80 pct to 27.952 bln usd from 26.669 bln in the same period last year.
     The NSO said the Philippines recorded a trade surplus of 218 mln usd in September from 2.0 mln usd a year earlier. It has reported a trade deficit of 138.000 mln usd in August.
     In the January-September period, however, the country registered a trade deficit of 1.686 bln usd versus a year-earlier deficit of 511 mln.
     The NSO previously reported that merchandise exports totalled 3.264 bln usd in September, up 2.3 pct year-on-year. In the January-September period, exports grew 0.40 pct year-on-year to 26.267 bln.
     Imports of electronic products accounted for 47.0 pct of September shipments and were valued at 1.431 bln usd, down 5.90 pct year-on-year.
      Mineral fuels and lubricants ranked second with a 9.8 pct contribution valued at 297.23 mln usd, up 0.5 pct year-on-year.
     Industrial machinery and equipment were the third on the imports list at 136.24 mln usd, down 0.6 pct year-on-year.
     The NSO said payments for capital goods, which accounted for 42.6 pct of total September imports, went up 6.6 pct year-on-year to 1.298 bln usd from 1. 217 bln.
     Raw materials and intermediate goods, representing 36.80 pct of the total September bill, were down 13.8 pct to 1.122 bln from 1.302 bln a year earlier.
     Imports from Japan accounted for 21.5 pct of the total September bill, up 0.8 pct to 653.79 mln usd. Exports to Japan amounted to 489.88 mln usd, yielding a trade deficit of 163.92 mln for the Philippines.
     September imports from the US accounted for 19 pct of the total at 579.99 mln usd. Exports to the US amounted to 630 mln usd, resulting in a trade surplus of 50.01 mln usd for the Philippines.
     Singapore was the third biggest source of imports, with payments of 197. 82 mln usd, up 4.80 pct year-on-year, while exports to the city state were worth to 224.25 mln usd. This resulted in a trade surplus of 26.43 mln usd for the Philippines.
     (1 usd = 55.40 pesos)
     cecille.yap@afxasia.com

 

Philippines' Banco De Oro says not in discussion to acquire PBCom


     MANILA (AFX-ASIA) - Banco De Oro Universal Bank has denied newspaper reports that it is one of several banks interested in acquiring Philippine Bank of Communications (PBCom).
     In a disclosure to the stock exchange, Banco De Oro said it "is not in discussions related to the acquisition of PBCom."
     It did not elaborate.
     cecille.yap@afxasia.com

 

Philippine expects stronger agriculture growth in Q4 - Lorenzo


     MANILA (AFX-ASIA) - The Philippine agricultural sector is expected to grow 3.7-4.7 pct year-on-year in the fourth quarter, higher than the 4.32 pct increase registered in the three month period to September, Agriculture Secretary Luis Lorenzo said.
     The sector's expected improvement is seen to be broad-based, he added.
     "Year on year, growth may reach 3-4 pct in 2003. Third quarter was principally driven by crops... But in the fourth quarter, we expect across the board expansion," Lorenzo said in a press briefing.
     Agricultural output grew 2.87 pct year-on-year in the nine months to September, compared with the year-earlier growth of 3.08 pct as the unfavorable weather limited farm production.
     Agriculture accounts for about a fifth of the Philippine economy.
     cecille.yap@afxasia.com

 

Philippine Bank of Communications expects to end 2003 in profit - report


     MANILA (AFX-ASIA) - Publicly-listed Philippine Bank of Communications is expecting to end 2003 with a net profit despite its net loss of 85 bln pesos in nine months to September, the Philippine Daily Inquirer newspaper reported, quoting PBCom president Isidro Alcantara.
     "Maybe we took some losses because we spent a lot on automation but we still expect to be positive by year-end. We see a lot of income coming from treasury," Alcantara was quoted to have said.
     The report also quoted an unidentified PBCom director as saying that the bank's owners are not eager to merge PBCom with another bank or sell their stakes despite several offers.
     PBCom has reportedly received merger offers from Banco De Oro Universal Bank, Metropolitan Bank & Trust Co, Rizal Commercial Bank and Security Bank. (1 usd = 55.40 pesos)
     cecille.yap@afxasia.com

 

Philippine Oct budget deficit about 21.17 bln pesos; lower than ceiling-source


     MANILA (AFX-ASIA) - The government's budget deficit stood at about 21.17 bln pesos in October, lower than the ceiling of 22.33 bln for the month, a government source said.
     In the first nine months of the year, the deficit reached 163.87 bln pesos, below the ceiling of 171.87 bln, the source said.
     The Department of Finance is expected to announce the official figures later this month.
     (1 usd = 55.44 pesos)
     cecille.yap@afxasia.com

 

FCC orders US carriers to resume payments to Philippines' Smart Communications


     MANILA (AFX-ASIA) - The United States Federal Communications Commission has ordered US carriers AT&T and MCI International to resume payments to Smart Communications Inc for the latter's share of revenues made by US carriers on calls to the Philippines.
     Smart is the wireless unit of Philippine Long Distance Telephone Co.
     The FCC International Bureau, in an order dated Nov 17, said it lifted the stop-payment order after receiving separate notices from the two US carriers that Smart had resumed direct connections with them after they settled their long-standing dispute over termination rates.
     The FCC had previously ordered the US carriers to stop payments to their Philippine counterparts, whose decision to increase termination rates for inbound calls from the US allegedly forced the US carriers to compete unfairly.
     The FCC's Philippine counterpart, the National Telecommunications Commission, had later ordered local carriers to reject calls from their US counterparts who refused to pay them for services rendered.
     "As a result of the full restoration of these AT&T and MCI circuits ... we lift the suspension of payments required in the order with respect to US carrier payments to Smart. Therefore, all US carriers must now resume making payments for termination services to Smart," FCC said in the order.
     cecille.yap@afxasia.com

 

EU asks Asia to take tough measures to stem flow of fake goods - report


     MANILA (AFX-ASIA) - The European Union (EU) urged Asia today to toughen its stance against the multi-billion-dollar racket in counterfeit goods, saying the region has become a key transshipment point for fakes, Agence France Presse reported.
     With Thai counterfeiters at the forefront, Asia accounts for two-thirds of all fake goods confiscated along the borders of EU states, according to fresh statistics from the EU's directorate general of taxation and customs, officials said.
     "This problem is serious, has created a shadow economy and supersedes existing structures in investment, innovation and trade and stifles creativity," spokesman for the European Patent Office Rainer Osterwalder told AFP.
     "What is worse is it puts consumers' health and security at serious risk, " he said, citing a list of fake goods to Europe from Asia ranging from daily necessities like toothbrushes, razor blades and detergent to Viagra, palm-tops and vehicle-brake pads.
     Osterwalder was speaking after the opening today of an international conference here on the role of customs in combating counterfeit and piracy.
     The conference has been organized by the Germany-based European Patent Office, the European Commission and the intellectual property office of the Philippines.
     "We're here not to lecture Asia on what should be done, but to work closely to tackle the (problem) through sharing of expertise and best practices, especially in detecting possible counterfeit cargo," he said.
     The one-week conference is being attended by more than 80 customs and other experts from the Association of Southeast Asian Nations (ASEAN) and EU to update developments on border enforcement and customs operations, said Supapohn Kanwerayotin, spokesman for the EU-ASEAN intellectual property rights cooperation program.
     Officials from EU's directorate general of taxation and customs told the conference that Thailand was a top transshipment point for Asia's counterfeit goods seized in Europe in 2002.
     China remains the biggest manufacturer of such goods in the region, they said.
     The EU recently expressed concern over China's enforcement on intellectual property rights, calling it "unacceptable."
     China is a member of the World Trade Organization (WTO), under which protection of intellectual property rights is secured by provisions of the so-called TRIPS agreement.
     Some 43 pct of the seizures in Europe in 2002 were from Thailand, according to EU statistics. Substantial fake exports also came from China (15 pct), Hong Kong (5 pct) and Malaysia (3 pct).
     The officials also said Asia accounted for two-thirds of the 87 mln counterfeit items seized in Europe last year, a whopping 800 pct jump from the 10 mln items confiscated in 1998.
     Guy Platton, a Manila-based European Commission diplomat, told the conference that the economic cost of trade in fake goods was rising.
     Citing a recent European Chamber of Commerce of the Philippines survey, he said sales of products of 11 multinational corporations faked in 2001 were valued around 3 bln pesos, translating into an estimated government tax revenue loss of 1.3 bln pesos.
     "The legal fight has been frustrating," said Platton. "Raids are being successfully carried out, but the prosecution is slow and tedious. There has not been a single, successful judgement to date," he lamented.

 

Philippine Treasury raises 3.0 bln pesos via five-year T-bond issue


     MANILA (AFX-ASIA) - The Bureau of Treasury said it fully awarded at today's auction its 3.0 bln peso offer of five-year Treasury bonds, with the coupon rate set at 10.25 pct.
     Tenders totaled 8.62 bln pesos, with bids ranging from 10.400 pct to 10. 600 pct, or an average of 10.568 pct.
     The Treasury said it has decided to open the tap facility window for the five-year T-bonds for a volume of 500 mln pesos until 3 pm tomorrow.
     (1 usd = 55.405 pesos)
     edelacruz@afxasia.com

 

Philippines' PNOC unit to apply for new exploration permit


     MANILA (AFX-ASIA) - PNOC-Exploration Corp will likely apply for a new service contract to explore oil and gas prospects off the island of Mindoro, company president Rufino Bomasang said.
     The company, a unit of state-run Philippine National Oil Co, is in talks with Malaysia's Petroliam Nasional Berhad (Petronas) to form a strategic partnership for the Mindoro drilling project.
     The application for a new service permit will be submitted to the energy department either next month or in January, after a formal contract with Petronas is signed.
     "We sent our team to firm up the major terms of the contract (with Petronas). We expect to send the contract back to thrash out some minor issues," Bomasang said.
     PNOC EC was untraded after closing at 1.0 peso previously.
     (1 usd = 55.44 pesos)
     cecille.yap@afxasia.com

 

Philippines' Jollibee, First Holdings to list additional shares this week -PSE


     MANILA (AFX-ASIA) - Jollibee Foods Corp will list an additional 307,000 common shares on Friday (Nov 21), while First Philippine Holdings Corp will list an extra 4,600 common shares tomorrow, the stock exchange said.
     The listings will cover shares from their stock purchase and option plans.
     edelacruz@afxasia.com

 

Philippines' Music looks to raise funds to address deficit, avoid delisting


     MANILA (AFX-ASIA) - Music Corp said it is looking to completely eliminate its capital deficiency and to record a capital surplus by mid-2004, to be able to avoid being delisted at the Philippine Stock Exchange.
     The semiconductor firm said it significantly reduced its capital deficiency to 102.0 mln pesos as of Sept 30, from 344.0 mln at end-2001, but intends to raise funds to fully wipe out the deficit.
     Music will hold a shareholders' meeting on Dec 17 to seek approval for its plan to change its corporate name to Music Semiconductors Corp and redirect its primary purpose to a semiconductor operating firm from a holding company.
     The company will also present to stockholders its plans to raise capital of between 60.0-90.0 mln pesos through the issuance of new shares.
     It also proposes to put in place a stock option plan.
     "One of the key reasons to raise funds at this time is to eliminate completely this (capital) deficiency, and with the anticipated continuing operating profitability, ensure that by the middle of 2004, the company will be enjoying a capital surplus and thereby avoid possible delisting at the Philippine Stock Exchange," Music said in a statement.
     It expects to post a capital surplus of more than 43.0 mln pesos by June 2004, assuming it continues to be profitable through the first half of next year and taking into account the proceeds of at least 75.0 mln pesos from issuing new shares.
     Music also said it intends to keep penetrating networking and non-networking markets with its content addressable memory (CAM) products.
     The focus on the profitable CAM business and major cost-cutting across the group, Music said, has enabled it to engineer a financial turnaround of its business.
     In the nine months to September, operating profit rose to 62.8 mln pesos from 32.6 mln a year ago. Net profit, however, fell to 22.58 mln pesos from 61.00 mln in the same period last year.
     "From the significant losses of 1999 to 2001, Music Corp is turning in its second annual operating and net profitable year in a row," it said, but did not explain the drop in net profit for the nine-month period.
     (1 usd = 55.44 pesos)
     edelacruz@afxasia.com

 

Philippines' San Miguel obtains investment license for Vietnam expansion


     MANILA (AFX-ASIA) - San Miguel Corp said the People's Committee of Dong Nai Province in Vietnam has granted the Philippines' largest food and beverage conglomerate an investment licence to embark on an expansion program in that country.
     In a statement, San Miguel, which brews beer and sells processed meats, said the license allows the group to participate in Dong Nai's economic growth and prosperity.
     "Vietnam's growth in the past few years and ability to deal with a difficult economic environment have been admirable. While most regional markets reeled from the Asian financial crisis, Vietnam stayed true to its course," the statement quoted San Miguel chairman and chief executive officer Eduardo Cojuangco Jr as saying.
     He did not give details about the planned expansion in Vietnam.
     San Miguel said it has been doing business in Vietnam since 1996, when its brewery San Miguel Brewery Vietnam Ltd in Nha Trang began operations.
     San Miguel Phu Tho Packaging Co also started making metal closures and caps, while San Miguel Yamamura Haiphong Glass Co began producing and marketing glass containers that same year.
     The announcement follows San Miguel's acquisition of TTC Vietnam Ltd, a company involved in hog farming and feed milling operations in Binh Duong.
     San Miguel has embarked on a regional expansion program and is looking, in particular, at such markets as Thailand, Vietnam, China, Indonesia, Australia, Malaysia and Taiwan.
     San Miguel intends to invest 100 mln usd in these markets and help boost the company's annual revenue by 300 mln usd.
     (1 usd = 55.44 pesos)
     edelacruz@afxasia.com

 

Coca-Cola manager in Philippines killed in botched kidnap bid


     MANILA (AFX-ASIA) - A Coca-Cola executive in the Philippines was found shot dead early today after a suspected botched kidnap attempt, police said.
     The body of Betty Sy, 32, a Chinese-Filipino, was found wrapped in a blanket and stuffed in a trash bag near the seafront in southern Manila, radio reports quoted police as saying.
     The dead woman, a finance manager of Coca-Cola Export Corp, was abducted by unknown men on yesterday, according to reports. Company sources confirmed to AFP that Sy's body has been found.
     Chinese Filipino community leader Teresita See, who leads an anti-kidnap watchdog group, expressed concern over the rise in kidnappings this year, most of them from her ethnic group.
     More than 100 people have been kidnapped up to October, she said on local ABS-CBN television.
     The figure is higher than the 83 abductions stated by Angelo Reyes, the recently appointed head of a government task force against kidnapping, set up by President Gloria Arroyo following concerns expressed by the Chinese Filipino community.
     The official January-October figure reflects an increase of 31.7 pct year-on-year.

 


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