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Saturday, October 04, 2003
OFFICIAL CORRECTION Philippines Filinvest Land unit to issue 100 mln usd notes
Philippines Sept 1-19 net portfolio inflows 37.9 mln usd vs 2.9 mln outlflows
Forex - Philippine peso closes firmer vs dollar but political concerns weigh
Philippine Vice President Guingona quits ruling Lakas party

Friday, October 03, 2003
Philippines' Metrobank confirms plans to sell idle assets worth 14.0 bln pesos
Philippines' PLDT considering to manage Philcom's Mindanao local exchange ops
Philippines' San Miguel 8 mths sales 96.8 bln pesos, up 11 pct yr-on-yr
Philippine mosque blast kills one, injures 30
Philippine National Bank to raise 140 mln usd tier 2 capital via notes issue
Manila shares close higher on bargain-hunting, PLDT gains - UPDATE
Philippines' Union Cement approves plan for two loans worth 2.65 bln pesos
Philippines' Filinvest Land offshore unit to issue 100 mln usd 5-yr notes
Philippine exchange to suspend Balabac shares trading Oct 6-8
DATAWATCH-Philippine FY export target unlikely; politics partly to blame -UAP
Philippines says Asia emerging as major market for its non-electronic exports
Manila shares outlook - Higher on extended bargain-hunting, Wall St gains
Philippines eyes 1.0 bln usd savings from renegotiation of Casecnan power deal
Philippine Metrobank eyes sale of 14-bln peso distressed asets to SPV - report
Philippines may miss Sept deficit goal on 'conscious' overspending - Camacho
Philippines economic and corporate news summary LLN37
Philippine says possibility of fresh uprising against Arroyo 'near zero'
Forex - Philippine peso closes weaker on US dollar short-covering
Philippine Belle to offset APC's 1.2 bln peso share subscription vs advances

October 1 - 2 


 

OFFICIAL CORRECTION Philippines Filinvest Land unit to issue 100 mln usd notes


     (Company corrected the name of bookrunner)
     MANILA (AFX-ASIA) - Filinvest Land Inc said its wholly-owned offshore subsidiary FLI Capital (Cayman Islands) Ltd intends to issue 100 mln usd in fixed-rate notes with a minimum tenor of five years.
     The company, in a disclosure to the stock exchange, said it has been authorized by its board of directors to guarantee the notes to be issued by the subsidiary.
     JP Morgan Securities Ltd was appointed sole bookrunner and issue manager of the notes offer.
     FLI first vice president Fely Ramos earlier said proceeds of the borrowing will be used to refinance the company's 2.00-bln peso, five-year commercial paper, which is due in Nov 2004.
     It will also need about 800.00 mln pesos for working capital next year.
     Filinvest Land closed unchanged at 1.08 pesos.
     (1 usd = 54.90 pesos)
     cecille.yap@afxasia.com

 

Philippines Sept 1-19 net portfolio inflows 37.9 mln usd vs 2.9 mln outlflows


     MANILA (AFX-ASIA) - Net portfolio inflows to the Philippines totalled 37. 90 mln usd from Sept 1-19, compared with net outflows of 2.90 mln a year ago, according to the central bank.
     Inflows during the period totalled 114.00 mln usd against outflows of 76. 10 mln.
     Net inflows in the eight months to August were reported earlier to be 351. 40 mln usd.
     edelacruz@afxasia.com

 

Forex - Philippine peso closes firmer vs dollar but political concerns weigh


     MANILA (AFX-ASIA) - The peso closed stronger, but off highs, against the dollar, tracking the strength of regional currencies against the US unit, dealers said.
     Political concerns, however, re-emerged and led to some dollar-buying in afternoon trade following Philippine Vice President Teofisto Guingona's announcement of his resignation from President Gloria Arroyo's Lakas Party.
     Guingona's resignation from Lakas follows that of Senator Loren Legarda, who is believed to be interested in running for the presidency or the vice presidency in next year's polls.
     The peso closed at 54.920 to the dollar after hitting a high of 54.800 and falling to 55.010, on volume of 161.5 mln usd. It closed at 54.980 yesterday.
     "It was roller-coaster trading, with the peso's movement largely influenced by domestic factors, particularly the resignation of high-profile political figures from Lakas," a commercial bank dealer said.
     "We saw the peso gain ground in the morning in line with strong regionals, but the news about Guingona's resignation from Lakas led to the local unit's weakening in the afternoon session."
     Guingona said reforms that Arroyo had promised to carry out have not materialized.
     The dealer said "too much politics" has kept the peso-dollar exchange rate volatile.
     The market largely ignored disappointing August exports data the National Statistics Office released this morning, dealers said.
     Merchandise exports, a major source of foreign exchange inflows, fell 2. 20 pct year-on-year to 2.966 bln usd in August, as traditional dollar-earner electronics registered a 7.20 pct year-on-year drop in receipts to 1.907 bln.
     In January to August, exports grew 0.20 pct to 23.002 bln usd from 22.967 bln in the same period last year.
     It is the second straight month of decline for exports, July shipments fell 7.90 pct year-on-year.
     Dealers said they did not see the central bank in the market today.
     The dollar is seen being traded between 54.700 and 54.950 on Monday.
     edelacruz@afxasia.com

 

Philippine Vice President Guingona quits ruling Lakas party


     MANILA (AFX-ASIA) - Philippines Vice President Teofisto Guingona today announced his decision to quit from President Gloria Arroyo's Lakas Party, saying "badly needed" reforms she vowed to carry out have not materialized.
     Guingona's resignation follows that of Senator Loren Legarda, who is believed to be interested in running as presidential or vice presidential candidate in next year's polls.
     Arroya named Guingona, an elected senator, vice president after taking over the country's leadership in 2001 after a military-backed popular revolt that ousted elected president Joseph Estrada. Arroyo was elected vice president in 1998.
     The detained Estrada is on trial for corruption.
     In 2002, Guingona quit his concurrent post as foreign secretary after publicly disagreeing with Arroyo on the deployment of US anti-terror troops in the southern Philippines.
     Reading his resignation letter, Guingona referred to Aquino's Dec 30, 2002, announcement "that you would not run in the 2004 election because you would focus on reforms badly needed by the nation."
     "Unfortunately, those reforms have not materialized," he added.
     Arroyo is widely believed to be reconsidering her decision in late 2002 not to contest the May 10, 2004, presidential elections so as to be able to carry out unpopular reforms.
     afxmanila@afxasia.com

 

Philippines' Metrobank confirms plans to sell idle assets worth 14.0 bln pesos


     MANILA (AFX-ASIA) - Metropolitan Bank Trust Co said it is studying the sale of idle assets worth around 14.00 bln pesos to an asset management company (AMC), confirming a local newspaper report.
     The planned asset disposal will be in addition to the 16.00 bln pesos worth of bad loans it had earlier agreed to sell to Asia Recovery Corp, the AMC set up by Dutch retail bank Rabobank Nederland.
     The BusinessWorld newspaper reported earlier, citing unnamed sources, that Metrobank has received letters of interest from various parties regarding its idle assets, including local firm Asset Conversion and Enhancement Strategies Inc (ACES).
     (1 usd = 54.90 pesos)
     afxmanila@afxasia.com

 

Philippines' PLDT considering to manage Philcom's Mindanao local exchange ops


     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co said it is considering to manage "certain aspects" of Philippine Global Communications Inc's (Philcom Global) local exchange operations on Mindanao island in the southern Philippines.
     Philcom Global made the offer to PLDT, which said the proposal "would contribute to the improvement of the operations of Philcom and consequently enable PLDT to recover its outstanding receivables from Philcom and Philcom Global."
     PLDT gave no other details in its disclosure to the stock exchange.
     edelacruz@afxasia.com

 

Philippines' San Miguel 8 mths sales 96.8 bln pesos, up 11 pct yr-on-yr


     MANILA (AFX-ASIA) - San Miguel Corp said its consolidated sales revenue in the eight months to August grew 11.00 pct year-on-year to 96.80 bln pesos, helping to bring its operating profit to 7.47 bln pesos.
     It gave no comparative figure for operating profit.
     The country's largest food and beverage conglomerate said its domestic beer operations, its main revenue-earner, maintained strong volume growth during the period, posting a 24.00 pct year-on-year gain in operating profit of 3.76 bln pesos.
     International beer sales rose 12.00 pct year-on-year during the period, reversing second quarter weakness as sales in Hong Kong and southern China recovered from the slump caused by the SARS outbreak in the first half, it said.
     "With the SARS problem now in check, recovery is expected to continue in the coming months," San Miguel said in a statement.
     The company said the consolidated sales revenue of its Coco-Cola Beverage Group - including sales of Coke and Cosmos soft drinks and bottled water - rose 15.00 pct year-on-year to 25.90 bln pesos in the first eight months of this year.
     Operating profit of its San Miguel Food Group hit 586.00 mln pesos, with total revenue of 26.00 bln for the January-August period, which showed volume gains for poultry and processed meats, San Miguel said. No comparative figures were given.
     (1 usd = 54.90 pesos)
     edelacruz@afxasia.com

 

Philippine mosque blast kills one, injures 30


     COTABATO, Philippines, (AFX-ASIA) - At least one person was killed and 30 wounded after a grenade attack on a packed mosque in the southern Philippine island of Mindanao, police said.
     An unidentified man hurled the grenades into the mosque inside the compound of the government's National Irrigation Administration in the town of Midsayap amid Friday prayers, Chief Inspector Eduardo Marquez said.
     The suspect fled as the grenades went off. Most of the casualties are employees of the government agency.
     Police had no immediate suspects or motive for the attack.
     Midsayap town, which is mainly Christian but has a sizable Muslim minority, has been hit by bomb blasts before.
     Most of the previous attacks were largely blamed on Muslim separatist guerrillas.

 

Philippine National Bank to raise 140 mln usd tier 2 capital via notes issue


     MANILA (AFX-ASIA) - Philippine National Bank said it will issue up to 140 mln usd worth of unsecured subordinated notes to raise tier 2 capital.
     PNB corporate secretary Renato Fernandez said management has yet to approve the terms and other arrangements, including the appointment of an underwriter.
     The bank did not specify any timetable for the issue in its letter to the stock exchange.
     (1 usd = 54.90 pesos)
     edelacruz@afxasia.com

 

Manila shares close higher on bargain-hunting, PLDT gains - UPDATE


     (Updating with analysts' comments, share prices)
     MANILA (AFX-ASIA) - Share prices closed firmer, but off highs, on extended bargain-hunting, with interest in Philippine Long Distance Telephone Co sustaining the market's gains for the second straight day, dealers said.
     The composite index closed up 6.84 points, or 0.53 pct, at 1,304.73 on 579.393 mln shares worth 662.0 mln pesos. It traded between 1,302.35 and 1308. 13.
     Gainers beat losers 29 to 16, with 40 stocks unchanged.
     PLDT was top traded, ending up 20.00 pesos at 690.00 on 396,110 shares. Its American Depositary Receipts (ADRs) in New York were up 0.56 usd at 12.81 last night.
     Dealers said the market also took its cue from Wall Street's overnight gains.
     However, news that the government is likely to miss its budget deficit for the second straight month in September, and lower export receipts for August, limited the market's gains.
     "What we experienced was not a broad rally, but was largely because of PLDT's gains," AB Capital Securities research director Jose Vistan Jr said.
     "Disappointing" macroeconomic indicators also capped the market's rise, he added.
     Merchandise exports in August fell 2.20 pct year-on-year to 2.966 bln usd, marking its second straight month of declines and keeping the eight months to August figure flat at growth of just 0.20 pct from a year earlier.
     Economists said the country is unlikely to hit the 5.00 pct growth target it had set for the year, and more importantly will be a drag on the country's economic performance in the third quarter.
     The government has said it is again likely to miss its budget deficit target for the second straight month due to "conscious" overspending in September, Finance Secretary Jose Isidro Camacho said.
     Camacho, however, remains optimistic the full-year deficit goal of 202.00 bln pesos will be met, given revenue surpluses and lower spending in previous months.
     "There was some bargain-hunting, while some investors are also buying on account of the market's strength after it broke the 1,300 level," Citiseconline.com analyst Mark Alan Canizares said.
     Ayala Land was the second most actively-traded stock, but fell 0.10 pesos to 6.20 on 18.40 mln shares. Its parent firm Ayala Corp was flat at 4.80 on 1. 88 mln shares.
     Bank of the Philippine Islands gained 2.00 pesos at 43.00 on 1.66 mln shares.
     San Miguel B, open to foreigners, was down 2.00 at 60.50 on 1.04 mln shares. San Miguel A was steady at 54.00 on 12,200 shares.
     Analysts said the "increasing" likelihood that SMC chairman and chief executive officer Eduardo Cojuangco Jr will run for the presidency, teaming up with popular broadcaster and lawmaker Senator Loren Legarda, is causing jitters among investors on fears of an eventual "leadership vacuum" in the company. Legarda has left the ruling political party Lakas.
     Metrobank shed 0.50 at 28.00 on 522,400 shares.
     Jollibee lost 0.25 to 17.25 on 425,000 shares.
     The all-shares index was up 6.11 points at 799.19.
     The commercial-industrial index gained 7.44 to 1,920.52, while property dropped 3.64 to 567.22.
     Mining was up 70.13 at 1,355.13, while oil was unchanged at 1.36.
     Banking and financial services gained 7.36 to 433.41.
     (1 usd = 54.74 pesos)
     cecille.yap@afxasia.com

 

Philippines' Union Cement approves plan for two loans worth 2.65 bln pesos


     MANILA (AFX-ASIA) - Union Cement Corp said its executive committee has approved the company's plan to take two loans totalling 2.65 bln pesos.
     One is a 1.65 bln peso loan under a syndicated agreement jointly arranged by ING Bank NV and SB Capital Investment Corp, and the other 1.0 bln peso loan from Metropolitan Bank and Trust Co and First Metro Investment Corp.
     In a disclosure to the stock exchange, the company did not say the purpose for taking the loans.
     (1 usd = 54.90 pesos)
     edelacruz@afxasia.com

 

Philippines' Filinvest Land offshore unit to issue 100 mln usd 5-yr notes


     MANILA (AFX-ASIA) - Filinvest Land Inc said its wholly-owned offshore subsidiary FLI Capital (Cayman Islands) Ltd intends to issue 100 mln usd in fixed-rate notes with a minimum tenor of five years.
     The company, in a disclosure to the stock exchange, said it has been authorized by its board of directors to guarantee the notes to be issued by the subsidiary.
     JP Morgan Europe Ltd was appointed sole bookrunner and issue manager of the notes offer.
     FLI first vice president Fely Ramos earlier said proceeds of the borrowing will be used to refinance the company's 2.00-bln peso, five-year commercial paper which is due in Nov 2004.
     It will also need about 800.00 mln pesos for working capital next year.
     At 11.44 am, FLI was up 0.02 pesos at 1.10 on 4.17 mln shares.
     (1 usd = 54.90 pesos)
     cecille.yap@afxasia.com

 

Philippine exchange to suspend Balabac shares trading Oct 6-8


     MANILA (AFX-ASIA) - The Philippine Stock Exchange said it will suspend trading in Balabac Resources Holdings Co Inc shares on Oct 6-8 to facilitate the reduction in the number of its listed shares.
     Balabac has filed a capital restructuring plan with the Securities and Exchange Commission.
     As part of its capital restructuring, the company said it wrote off subscription receivables amounting to 55.46 mln pesos.
     The write-off will result in the cancellation of some of its listed shares and, consequently, a decrease in the authorized and subscribed capital by the same amount, the company said.
     Balabac earlier said it had sought SEC approval for a planned quasi-reorganization in order to utilize its appraisal surplus against its capital deficit.
     The company also asked for approval to lower its authorized capital stock to 73.79 mln pesos from 1.00 bln pesos to wipe off its deficit partially.
     The stock exchange said Balabac is confident the SEC will approve its amended articles of incorporation by Oct 9, when trading of shares will resume.
     (1 usd = 54.94 pesos)
     afxmanila@afxasia.com

 

DATAWATCH-Philippine FY export target unlikely; politics partly to blame -UAP


     MANILA (AFX-ASIA) - The Philippines is not likely to meet its full-year export growth target of 5.00 pct year-on-year after sales of Filipino products overseas failed to pick up for the second straight month, University of Asia and the Pacific economist Victor Abola said.
     He said the failed military mutiny around end-July and lingering political uncertainties ahead of the 2004 presidential elections were partly to blame for the disappointing performance.
     Merchandise exports in August fell 2.20 pct year-on-year to 2.966 bln usd, keeping growth for the eight months to August flat at 0.20 against the same period last year.
     The government is hopeful of hitting 5.00 pct export growth rate for the year, based on the expected global recovery and a pick-up in electronic sales.
     "It's a bit doubtful now. At best, the country could experience export growth rate of between 1.00-2.00 pct this year," Abola said.
     He noted exporters have been experiencing order cancellations from their overseas clients as political uncertainties, sparked by the July 27 failed military mutiny, raised concerns over the "reliability" of Filipino exporters.
     "Clients normally hesitate during times of uncertainties and have either temporarily stopped, or have reduced, orders on fears the reliability of deliveries would be compromised," Abola said.
     Nevertheless, Abola said Philippine exports could still manage to recover by September or October as traders stockpile ahead of the Christmas season.
     "The country's growth rate will have to be downscaled," said Abola, who sees full-year GDP growth at 3.80 pct, lower than the government's target of 4.20-5.20 pct.
     (1 usd = 54.94 pesos)
     cecille.yap@afxasia.com

 

Philippines says Asia emerging as major market for its non-electronic exports


     MANILA (AFX-ASIA) - Asia has emerged as a major market for the country's non-electronic exports, Economic Planning Secretary Romulo Neri said.
     He said National Statistics Office data show that exports of agro-based products, petroleum products, machinery and transport equipment, and non-semiconductor electronics items posted growth in August.
     "The strong growth of agro-based products cushioned the overall decline in exports (in August)," Neri said a statement.
     New Zealand and Japan have emerged as new markets for Philippine mangoes and papayas, he said, while the country's petroleum products have seen increased demand from China.
     Merchandise exports in August fell 2.20 pct year-on-year to 2.966 bln usd, the National Statistics Office (NSO) today said.
     In the eight months to August, exports grew 0.20 pct to 23.002 bln usd from 22.967 bln a year earlier.
     The NSO earlier reported July exports fell 7.90 pct year-on-year to 2.968 bln usd.
     Electronics exports registered a 7.20 pct fall in August year-on-year to 1.907 bln usd, accounting for 64.30 pct of total shipments for the month.
     Neri said the country's electronic sector continues to experience patchy growth as the global electronics sector continues to recover.
     The decline in electronics exports, along with the slowdown in garments exports, dragged down total merchandise exports in August, he said.
     He added that robust growth in non-semiconductor electronic exports "indicates that there is diversification taking place in the electronics sector."
     He cited the growth in other electronics products such as office equipment, consumer electronics, medical/industrial instrumentation, communication/radar, and automotive electronics.
     edelacruz@afxasia.com

 

Manila shares outlook - Higher on extended bargain-hunting, Wall St gains


     MANILA (AFX-ASIA) - Share prices are expected to open higher on extended bargain-hunting after the recent market decline, with investor sentiment boosted by Wall Street's further gains, dealers said.
     The composite index closed up 9.78 points, or 0.76 pct, at 1,297.89 on volume of 168.23 mln shares valued at 309.87 mln pesos yesterday.
     "Bargain hunting on select issues is likely to continue given that investors may take advantage of the recent market weakness to accumulate and take positions ahead of the third quarter corporate earnings results," BPI Securities said.
     It added investors may have already discounted Moody's recent revision of Philippines' foreign currency rating to negative from stable due to heightened political uncertainties.
     Interest in telecom stocks, supported by the sector's positive earnings outlook, and in property issues, after the central bank kept overnight interest rates steady, will likely sustain the market's rise.
     The market's support is seen at 1,287 and resistance at 1,309.
     (1 usd = 54.98 pesos)
     cecille.yap@afxasia.com

 

Philippines eyes 1.0 bln usd savings from renegotiation of Casecnan power deal


     MANILA (AFX-ASIA) - The government expects to save 1.0 bln usd over a 17-year period from the renegotiation of the 700-mln usd Casecnan irrigation and power project in central Luzon, Finance Secretary Jose Isidro Camacho said.
     A proposed supplemental agreement on the build-operate-transfer (BOT) between the government and US-based California Energy International Ltd was approved by the investment coordination committee of the National Economic Development Authority (NEDA).
     "The amount represents the savings we are going to generate five to 15 years from now. Using a 10 pct discount rate, it corresponds to around 255 mln usd at present value," Camacho said.
     He said the potential savings resulted from concessions reached on nine items in the contract, including the waiver of some fees and discounts on charges.
     The Casecnan proponent also agreed to lower its claim for tax reimbursements to 48.65 mln usd from 131.65 mln.
     The BOT project, built in 1994, provides irrigation water to farmlands a hydroelectric power facility in central Luzon.
     (1 usd = 54.98 pesos)
     cecille.yap@afxasia.com

 

Philippine Metrobank eyes sale of 14-bln peso distressed asets to SPV - report


     MANILA (AFX-ASIA) - Metropolitan Bank & Trust Co is studying the sale of idle assets worth around 14.0 bln pesos to an asset management company, the BusinessWorld newspaper reported, quoting industry sources said.
     The planned asset disposal will be on top of the 16 bln pesos worth of bad loans it earlier sold to Asia Recovery Corp, an AMC set up by Dutch retail bank Rabobank Nederland.
     Sources said the bank has received letters of interest from various parties including local firm Asset Conversion and Enhancement Strategies Inc (ACES).
     The disposition is expected to be covered by the privileges and incentives embodied in the Special Purpose Vehicle (SPV) Law, which was passed last year to help banks in disposing of their non-performing assets and back to profitability.
     The first asset sale, made prior to the enactment of the SPV Law, did not qualify for incentives.
     (1 usd = 54.98 pesos)
     cecille.yap@afxasia.com

 

Philippines may miss Sept deficit goal on 'conscious' overspending - Camacho


     MANILA (AFX-ASIA) - The government is "not likely" meet the 22.078-bln peso deficit target for September due to "conscious" overspending, Finance Secretary Jose Isidro Camacho said.
     However, he expressed confidence the full-year budget deficit ceiling of 202.00 bln pesos will still be kept.
     "(Hitting the target) is not likely because we are continuing the expenditures in September. (But we may miss) only the monthly target and not the year-to-date," Camacho said.
     He said the extent of September's excess deficit will largely depend on the expenditure side as revenues are expected to remain on track.
     The government's budget deficit stood at 113.50 bln pesos in the eight months to August, still below the ceiling of 127.50 bln.
     However, the deficit in August alone was 18.17 bln pesos, exceeding the 8. 11 bln ceiling as the government spent more to boost the slowing economy.
     The government is maintaining its full-year deficit ceiling at 4.70 pct of GDP or about 202.00 bln pesos.
     (1 usd = 54.98 pesos)
     cecille.yap@afxasia.com

 

Philippines economic and corporate news summary LLN37


     BEIJING (AFX-ASIA) - A summary of Philippine economic and corporate news at 1000 GMT:
     -Philippine Bureau of Customs Sept collection 8.402 bln pesos, below target
     -Philippine customs bureau still confident of meeting 2003 collection target
     -Philippine says possibility of fresh uprising against Arroyo 'near zero'
     -Central bank to cut 2004 current account surplus forecast
     -Central bank keeps policy interest rates steady
     -BIR, BOC say Sept collections could be below targets
     -Philippine Belle to offset APC's 1.2 bln peso share subscription vs advances
     -Tanduay files counterclaim charge against Ginebra San Miguel
     -Metrobank says keeping 3.00 bln peso 2003 net profit goal
     -Metrobank eyes sale of more distressed assets on top of 16.0-bln peso sale
     -Metrobank says likely to hit lower end of 5.0-10.0 pct FY loan growth target
     -Metrobank sets aside 2.0 bln peso in extra loan loss provisions yr-to-date
     ivy.cheng@xfn.com

 

Philippine says possibility of fresh uprising against Arroyo 'near zero'


     MANILA (AFX-ASIA) - The possibility of a fresh military uprising against President Gloria Arroyo is "near zero", a senior military official said today as the government sought to assure a wary public.
     Brigadier General Victor Corpus, chief of the military's civil relations office, said there appears to be no "justifiable reason" for a coup against Arroyo, two months after she quelled a military uprising without bloodshed.
     While acknowledging that "a very small percentage" of the 130,000-strong armed forces remains restive, Corpus said all the leaders of the July mutiny against Arroyo have been taken into custody and posed no threat.
     Asked of the chances of a fresh uprising, he said: "Right now, near zero."
     More than 300 junior officers and men took over a portion of the Makati financial district in Manila on July 27, demanding that Arroyo and other top defense officials step down, accusing them of corruption.
     Officials charged that it was part of a larger plot to assassinate Arroyo and replace her with a 15-member junta.
     The rebellion was quelled the same day, but Arroyo was forced to accept the resignations of defense chief Angelo Reyes and Corpus, who was the military intelligence chief then.
     Arroyo this week appointed Reyes as ambassador for counter-terrorism and Corpus as head of the military's civil relations office, a move anti-corruption groups criticized.
     Separate accusations of corruption involving Arroyo's husband have also pulled down the president's popularity, according to a survey released this week.
     Arroyo acknowledged today "there has been some negativism cutting almost all institutions" of government, but said this was due to "excessive speculation, rumor-mongering and contrived threats."
     "But the fact remains that we have consolidated the military organization, put development programs back on track and restored international confidence in the stability of the Philippines," she said in a statement.
     "We are confident things will be looking up soon as we pass this unusually rabid phase of the political season," the president said.

 

Forex - Philippine peso closes weaker on US dollar short-covering


     MANILA (AFX-ASIA) - The peso ended four days of gains to close weaker against the US dollar as banks and their clients scrambled for the US currency to cover their short positions ahead of the weekend, dealers said.
     The peso closed at 54.980, its weakest for the day, after trading at a high of 54.695, on volume of 170.00 mln usd. It closed at 54.780 yesterday.
     Dealers said the peso also moved in line with other regional currencies, particularly the yen which was softer against the US dollar amid reports of heavy Bank of Japan intervention.
     "Some players in the market are trying to cover their short positions ahead of the weekend... Most of them have been selling dollars in the past few days," a local bank dealer said.
     Another dealer said news that the Bureau of Customs had failed to meet its revenue targets for September, due to lower imports and a weaker peso, may have also dampened sentiment regarding the local currency.
     The market is seen testing the 55.000 level tomorrow, with the peso likely trading between 54.900-55.100, dealers said.
     cecille.yap@afxasia.com

 

Philippine Belle to offset APC's 1.2 bln peso share subscription vs advances


     MANILA (AFX-ASIA) - Belle Corp said it will enter into an offsetting arrangement with APC Group Inc to cancel the latter's 1.2 bln peso subscription to Belle's preferred shares.
     Under the arrangement, APC'S subscription to Belle's preferred shares worth 1.2 bln pesos will be cancelled and the amount will then be offset against APC's advances from Belle.
     In a disclosure to the stock exchange, Belle said it has been advised that stockholders of APC Group Inc have approved the proposal.
     No further details were provided.
     (1 usd = 54.98 pesos)
     afxmanila@afxasia.com

 


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