NEWS

Wednesday, October 29, 2003
Singapore-listed Fastech Q3 net loss 963,000 usd vs 71,000
Philippines Congress to impeach chief justice after talks break down
Philippine Meralco eyes 2 foreign groups to partly refinance 2004 obligations
Philippine govt end-Aug total debt 3.158 trln pesos vs 3.14 trln in July
Philippine Aboitiz Equity 9 mths to Sept net profit 1.86 bln pesos
Philippine central bank still confident peso to end year at 54/dollar
ADB to lend China 250 mln usd for Yunnan road projects
Philippine central bank likely to keep interest rates steady - Buenaventura
Manila shares close slightly higher on bargain-hunting, Wall St rise
Philippine Ayala Corp 10.198 mln shares sold in block in late trade - PSE
Philippine Chinabank 57,350 shares crossed in late trade - PSE
Philippines' Arroyo asks judiciary, Congress to resolve impasse
Philippine National Bank taps JP Morgan as arranger of note issue
Philippine Music taps Unicapital as adviser for 60-90 mln peso capital hike
Philippine Abra Mining says 2-yr lock up of 10 bln shares to expire on Oct 30
Philippine Mabuhay Vinyl reports caustic soda spillage in Batangas depot

Tuesday, October 28, 2003
Philippine central bank says not in spot market as peso regains some ground
Philippine Treasury plans to issue up to 20 bln pesos in retail bonds in Nov
Philippine PSALM in talks with other investors on sale of transmission assets
First Philippine Holdings to list 40,722 shares on Oct 29
Philippine Treasury raises 3.0 bln pesos via 2-yr bonds; coupon at 8.75 pct
Philippines' PCI Leasing plans to issue 100.0 mln pesos in short-term notes
Manila shares flat early on peso weakness, politics
Bid to impeach Philippines chief justice paralyzes Congress - speaker
Philippine SM Prime opens mall in Quezon province
Philippines' Unionbank 9 mths to Sept net profit 2.074 bln pesos, up 77 pct
Philippine Megaworld interested in 25 pct of Fort Bonifacio Development Corp
OUTLOOK - Philippines' Ayala Land Q3 net profit 570-664 mln pesos vs 553 mln
Philippine BIR to collect 6.0 bln pesos unpaid gross receipt taxes from banks
Manila shares outlook - Mixed to lower on consolidation, weaker peso
Mirant Philippines keen on 20 pct stake in Aboitiz's power project - report
Philippines' Aboitiz Equity Ventures interested in transmission assets -report

October 24 - 27
October 22 - 23
October 20 -21
October 16 - 17
October 14 - 15
October 10 - 13
October 8 - 9
October 6 - 7
October 3 - 4
October 1 - 2

Singapore-listed Fastech Q3 net loss 963,000 usd vs 71,000

     SINGAPORE (AFX-ASIA) - Philippine-based Fastech Synergy Ltd third quarter to September results:
      Sales - 4.46 mln usd vs 4.89 usd
      Pre-tax loss - 961,000 usd vs 64,000 usd
      Net loss - 963,000 usd vs 71,000 usd
      Loss per share - 0.006 usd vs 0.0005 usd

     (1 usd = 1.73 sgd)
     denise.wee@afxasia.com

Philippines Congress to impeach chief justice after talks break down

     MANILA (AFX-ASIA) - Philippine legislators agreed to impeach Supreme Court chief justice Hilario Davide on Nov 10 after last-minute talks to head off a possible constitutional crisis failed, Agence France-Presse reported, quoting House Speaker Jose De Venecia.
     The House of Representatives agreed at a caucus to proceed with an opposition-led move to oust Davide, the country's fifth most senior official, when Congress resumes sessions on Nov 10, House Speaker Jose de Venecia said.
      He conceded that the move would be "bad for the country," but insisted the legislators were left with no choice but to follow the constitution after negotiators for the Supreme Court backed out of a settlement.
     The last time Congress impeached a government official, it led to a popular revolt and the military-backed ouster of the sitting president, Arroyo's predecessor Joseph Estrada.
     The attempt to impeach Davide caused the local currency and stocks to slide earlier this week.
     Nearly a third of the House of Representatives want Davide impeached for his refusal to open the judiciary's budget books to Congress. It would take about one-third of the House, or 76 members, for the impeachment to go ahead.
     Davide is accused of misusing about 48 mln pesos (about 865,000 US dollars) from a judiciary fund. If the Senate finds him guilty he would be removed from office.
     He insists the legislature does not have power to oversee an equal branch of government and that official auditors have said the books are in order.
     De Venecia claimed the Supreme Court negotiators backed out of a deal to open the books to congressional scrutiny in exchange for the withdrawal of the impeachment complaint.
     The House leadership suspended sessions on Tuesday to allow time for a settlement. But de Venecia said the Supreme Court raised the stakes when it ordered Congress to "maintain the status quo", effectively preventing the House from transmitting the impeachment complaint to the Senate for trial.
     The court said it would hold a public hearing on the merits of the complaint next week.
     "There is a system of checks and balances in our country, and for this purpose we are going to transmit, unless a settlement comes sooner before the reconvening of Congress on Nov 10, the impeachment complaint (to the Senate)," de Venecia said.
     He said the Congress would send its lawyers to the court hearing on Nov 5.
     "We do not wish to defy the decision of the Supreme Court (summonsing the sponsors of the impeachment complaint) because we don't want military adventurers to take advantage of the beginnings of a constitutional crisis," he added.
     De Venecia said backroom negotiations would continue with the Supreme Court in hopes of averting the crisis.
     President Gloria Arroyo, who survived a military rebellion three months ago, urged Congress and the Supreme Court earlier Wednesday to resolve what she described as a harmful standoff.
     The controversy is "causing our nation and democratic system more harm than good," Arroyo said in a statement.

Philippine Meralco eyes 2 foreign groups to partly refinance 2004 obligations

     MANILA (AFX-ASIA) - Manila Electric Co plans to ask two foreign financial groups to partially refinance its 11.00 bln pesos in maturing obligations next year, the company's chief finance officer Daniel Tagaza said.
     "We have been in discussions with these two foreign private investors with tie ups with foreign banks," Tagaza told reporters. He declined to name the parties.
     Meralco treasurer Rafael Andrada said the company would pay 50 mln usd of its maturing loans in the first half of next year, and another of the same amount in the second semester.
     Andrada maintained the company is optimistic of meeting its 1.0 bln pesos net profit target on the back of improved electricity sales.
     The company has revised its sales volume growth target to 4.3 pct year-on-year from an earlier forecast of 3.2 pct.
     (1 usd = 55.30 pesos)
     cecille.yap@afxasia.com

Philippine govt end-Aug total debt 3.158 trln pesos vs 3.14 trln in July

     MANILA (AFX-ASIA) - The national government's total outstanding debt increased to 3.158 trln pesos as of end-August from 3.14 trln in July, official figures show.
     Fresh foreign and local borrowings to finance the budget deficit bloated the government's debt stock.
     Domestic borrowings stood at 1.657 trln, up from 1.65 trln in July, while foreign debt totalled 1.5 trln against the previous month's level of 1.49 trln.
     (1 usd = 55.30 pesos)
     cecille.yap@afxasia.com

Philippine Aboitiz Equity 9 mths to Sept net profit 1.86 bln pesos

     MANILA (AFX-ASIA) - Aboitiz Equity Ventures Inc (AEV) posted a net profit of 1.86 bln pesos for the nine months to September, up 3.1 pct year-on-year, with its power business contributing bulk of its earnings.
     For the third quarter, Aboitiz said its net profit rose 4.5 pct year-on-year to 681.00 mln pesos.
     The company said Aboitiz Power Corp contributed 1.27 bln pesos to the parent firm's income, down 8.1 pct from its contribution in the same period last year.
     Its banking unit Union Bank of the Philippines posted an 88.5 pct improvement in its net earnings contribution, turning in 736 mln pesos in the first nine months of the year.
     Aboitiz's transport group posted a 600 pct improvement in its earnings, which the company said reflects its increased investment in shipping unit WG&A. Aboitiz received 190 mln pesos from this side of the business against 27.0 mln a year earlier.
     Its food manufacturing unit Pilmico Foods Corp contributed 73 mln pesos, down 62.4 pct from last year. Other investments brought in 4.79 mln pesos to the holding company.
     (1 usd = 55.296 pesos)
     cecille.yap@afxasia.com

Philippine central bank still confident peso to end year at 54/dollar

     MANILA (AFX-ASIA) - The central bank remains confident the peso will end the year within its target level of 54.000 to the US dollar despite the recent weakness of the local currency, central bank governor Rafael Buenaventura said.
     "I think there is no reason for the peso not to hit the 54.000 level," Buenaventura told reporters.
     He said he expects the peso to improve on the back of higher dollar remittances from overseas workers and the relatively good performance of the economy.
     Buenaventura said that recent "political noise" in the runup to the presidential election in May, including the impeachment of Supreme Court Chief Justice Hilario Davide, have led to "a more expensive dollar."
     The peso on Monday ended at its record closing low of 55.500, dragged by huge dollar demand among companies rushing to complete their month-end financing requirements and on renewed jitters on the political front.
     The local currency has slightly recovered since, averaging at 55.296 to the dollar at the end of morning trade today.
     "Clearly, corporate requirements have been fully satisfied. The reaction to the political noise has subsided," Buenaventura said.
     He said the central bank has not intervened in the foreign exchange market in the past days.
     (1 usd = 55.296 pesos)
     cecille.yap@afxasia.com

ADB to lend China 250 mln usd for Yunnan road projects

     MANILA (AFX-ASIA) - China will receive a 250 mln usd loan from the Asian Development Bank (ADB) for road projects to bring better marketing opportunities and services to the poor areas of Yunnan province, the lender said.
     It will finance the construction of a 77-kilometer four-lane toll expressway, along with access roads, interchanges, toll stations, administrative buildings and service stations, between the municipalities of Baoshan and Longling.
     More than 1.5 mln people will benefit from the improved market opportunities and services that will be created by the road project, the Manila-based ADB said in a statement.
     Yunnan is a relatively poor western province with a poverty incidence of 29 pct compared to the national average of 12 pct, the ADB said, adding that the poor road network there hampers economic growth.
     The road project is estimated to cost a total 582 mln usd, of which 43 pct will be financed by the ADB loan. A domestic commercial bank, China's ministry of communications and the Yunnan provincial government will shoulder the rest.
     The loan comes from the ADB's ordinary capital resources, carrying a 24-year term with a grace period of four years.

Philippine central bank likely to keep interest rates steady - Buenaventura

     MANILA (AFX-ASIA) - The central bank will likely keep key interest rates steady in its next policy meeting following US Fed's decision to keep its benchmark rates unchanged.
     "I don't think we will do any cutting, neither will we increase (the rates)," central bank governor Rafael Buenaventura said.
     The central bank's overnight rates are at their lowest in 11 years at 6. 750 pct and 9.00 pct for borrowing and lending, respectively.
     Buenaventura said the central bank will exert all efforts to maintain a stable economic environment despite political uncertainties, the most recent of which was the impeachment of Supreme Court Chief Justice Hilario Davide by the House of Representatives.
     The political noise, coupled with higher dollar demand among companies, have recently caused the peso to post its record closing low of 55.500 versus the US dollar early this week, raising concerns the central bank may used monetary tools such as increasing interest rates to keep the peso from falling further.
     "If inflation continues to be benign, we will continue to have an accommodative policy stance on the premise the budget deficit will be kept within target," Buenaventura said.
     (1 usd = 55.30 pesos)
     cecille.yap@afxasia.com

Manila shares close slightly higher on bargain-hunting, Wall St rise

     MANILA (AFX-ASIA) - Share prices closed marginally higher on bargain-hunting in select stocks, with Wall Street's overnight gains slightly lifting sentiment, dealers said.
     However, political concerns arising from the impeachment of Supreme Court Chief Justice Hilario Davide and a weaker peso have kept most investors at bay.
     The composite index was up 1.78 points or 0.13 pct at 1,364.82 on 219.48 mln shares worth 495.8 mln pesos, with turnover boosted by cross and block sales. It traded between 1,362.63 and 1,368.68.
     Gainers beat losers 23 to 13, with 50 stocks unchanged.
     Dealers said investors are also awaiting more third quarter earnings reports before returning to the market.
     "The disturbance caused by the Davide impeachment has been somewhat reduced, while the peso has slightly recovered. Hopefully, these developments should help the market regain its ground," Unicapital Securities Elena Ponceca said.
     She added companies which recently released their third quarter results have so far reported impressive performances, raising hopes that the next batch of reports would also be positive.
     "For the coming sessions, investors will be looking at local developments for guidance. When it comes to decisions about buying or selling stock, investors are likely to focus more on corporate earnings and economic data than what is going on in the political arena," AB Capital Securities research director Jose Vistan Jr said.
     Philippine Long Distance Telephone Co was top-traded, down 15.00 pesos at 725 on 132,600 shares.
     Globe Telecom eneded flat at 775 on 94,310 shares.
     SM Prime was up 0.10 at 7.00 at 9.4 mln shares.
     The company yesterday announced the opening of its 15th shopping mall located in Lucena, in the province of Quezon. A major daily today reported that it is also in negotiations with PLDT for the acquisition of the latter's prime property in Makati City, which SM intends to develop into a shopping mall.
     Chinabank was flat at 660 on 74,400 shares.
     Meralco B was down 0.75 at 20.25 on 1.04 shares. Meralco A was down 0.25 at 13.75 on 125,800 shares. Analysts said investors took profit following the company's 103 pct increase in its third quarter net profit to 573 mln pesos.
     Ayala Corp was flat at 4.90 on 1.7 mln shares. Some 10.19 mln shares were sold in a block at 4.85 pesos in late trade. Ayala Land was flat at 6.50 on 3. 3 mln shares.
     The all shares index was up 5.23 points at 831.48.
     The commercial-industrial index was down 2.26 at 1,999.20, while property was up 3.77 at 611.14.
     Mining gained 44.81 to 1,654.13, while oil was flat at 1.29.
     Banking and financial services gained 0.43 to 435.00.
     (1 usd = 55.30 pesos)
     cecille.yap@afxasia.com

Philippine Ayala Corp 10.198 mln shares sold in block in late trade - PSE

     MANILA (AFX-ASIA) - Ayala Corp's 10.198 mln shares were sold in a block sale in late trade, data from the stock exchange show.
     The shares were sold at 4.85 pesos apiece for a total of 49.46 mln pesos, with the transaction undertaken by Deutsche REGIS Partners.
     At 11.53 am, Ayala Corp was up 0.05 at 4.95 per share.
     No other details were provided.
     (1 usd = 55.30 pesos)
     cecille.yap@afxasia.com

Philippine Chinabank 57,350 shares crossed in late trade - PSE

     MANILA (AFX-ASIA) - China Banking Corp's 57,350 shares worth a total of 37.85 mln pesos were sold in a cross transaction in late trade, data from the Philippine Stock Exchange show.
     The shares were sold at 660 pesos each, with the transaction handled by Ansaldo, Godinez & Co Inc.
     No other details were available.
     (1 usd = 55.30 pesos)
     cecille.yap@afxasia.com

Philippines' Arroyo asks judiciary, Congress to resolve impasse

     MANILA (AFX-ASIA) - Philippines President Gloria Arroyo today told Congress and the Supreme Court to resolve what she described as a harmful standoff over an opposition attempt to impeach Chief Justice Hilario Davide.
     The last time Congress impeached a government official, it led to a popular revolt and the military-backed ouster of the sitting president, Arroyo's predecessor Joseph Estrada.
     The controversy is "causing our nation and democratic system more harm than good," Arroyo said in a statement.
     "There is a solution to this issue and it does not lie in protracted bickering or partisan debates but in the will of everyone concerned to sacrifice personal or partisan concerns for the supreme national interest."
     Nearly a third of the House of Representatives want Davide impeached for his refusal to open the judiciary's budget books to Congress. It would take about one-third of the house, or 76 members, for the impeachment to go ahead.
     Davide, the country's fifth most senior official, is accused of misusing about 48 mln pesos from a judiciary fund. If the Senate finds him guilty he would be removed from office.
     He insists the legislature does not have powers to oversee an equal branch of government and that official auditors have pronounced the books to be in order.
     The attempt to impeach Davide has caused the local currency and the stock market to slide earlier in the week.
     The stakes rose late Tuesday when the Supreme Court ordered Congress to "maintain the status quo", which effectively prevents the House from transmitting the impeachment complaint to the Senate for trial.
     The court said it would hold a public hearing on the merits of the complaint next week.
     Also Tuesday, congressional leaders abruptly adjourned the house for two weeks, preventing the impeachment attempt proceeding, thus giving the government a breather to resolve what some are calling a constitutional crisis.
     However opposition congressmen have said they would continue to push for Davide's impeachment once the session resumes after November 10.
     Critics say the move to impeach Davide is in retaliation for court decisions against opposition figures.
     Supporters of Davide, including former president Corazon Aquino, have called for street demonstrations to show opposition to the impeachment move.
     Arroyo said she was "confident that the impeachment impasse will be resolved soon."
     ( 1 usd=55.319 pesos)

Philippine National Bank taps JP Morgan as arranger of note issue

     (Updating with maturity, underwriting fee)
     MANILA (AFX-ASIA) - Philippine National Bank said it has appointed JP Morgan Securities Ltd as sole arranger for its planned issue of up to 140.00 mln usd worth of unsecured subordinated notes to raise Tier 2 capital.
     In a disclosure to the stock exchange, the bank said it intends to launch the issue in November, and added the notes will be listed on Singapore's stock exchange.
     PNB said the notes will carry an indicative yield of 9.000-9.500 pct and will mature on 2014. The issue is callable after five years.
     It said the move will allow the bank to meet the minimum capital adequacy ratio required by monetary regulators.
     JP Morgan's underwriting fee is set at 1.00 pct of the total issue, with fixed expenses payable to the underwriter capped at 420,000 usd.
     (1 usd = 55.319 pesos)
     cecille.yap@afxasia.com

Philippine Music taps Unicapital as adviser for 60-90 mln peso capital hike

     MANILA (AFX-ASIA) - Music Corp has appointed Unicapital Inc as financial adviser and investment banker for its plan to raise between 60.00-90.00 mln pesos in additional capital.
     Proceeds of the capital-raising activity will be used to fund product engineering and development, the company told the stock exchange.
     Unicapital was also appointed as lead underwriter for a possible stock rights offering, Music added.
     (1 usd = 55.35 pesos)
     afxmanila@afxasia.com

Philippine Abra Mining says 2-yr lock up of 10 bln shares to expire on Oct 30

     MANILA (AFX-ASIA) - Abra Mining & Industrial Corp said the two-year lock-up period on its 10.0 bln shares issued to shareholders Jabel Corp and Discovery Mines in 2001 will expire on Oct 30.
     No further details were provided.
     afxmanila@afxasia.com

Philippine Mabuhay Vinyl reports caustic soda spillage in Batangas depot

     MANILA (AFX-ASIA) - Mabuhay Vinyl Corp said a tank in its Bauan depot in the province of Batangas has recently spilled caustic soda, a waste treatment regenerant.
     The company said emergency response and corrective measures were undertaken. Proper coordination and information dissemination were also made immediately with local government units and other agencies concerned.
     "MVC is continuously monitoring any possible effects of the spill and has adopted measures/ safeguards to prevent/minimize the same as a result thereof, " the company told the stock exchange in a disclosure.
     No further details were provided.
     cecille.yap@afxasia.com

Philippine central bank says not in spot market as peso regains some ground

     MANILA (AFX-ASIA) - The central bank said it has not sold dollars in the foreign exchange market today, and instead attributed the slight recovery of the local unit to fresh dollar remittances and the companies' completion of their month-end financing requirements.
     "People should not panic. There's enough level in the market, and it is just a question of price," central bank governor Rafael Buenaventura said in a television interview.
     At the Philippine Dealing System, the peso closed at 55.350 after trading between 55.300 and 55.590 on volume of 213.50 mln usd. It ended at a record closing low of 55.500 yesterday.
     Buenaventura said the peso has "begun to correct itself," expecting the local currency to further gain ground when developments on the political front begin to normalize and when corporate requirements for the dollars have been fully satisfied.
     He attributed the recent weakness of the peso to a combination of normal dollar demand during the end of the month as well as to the "huge funds" needed in the acquisition of Globe Telecom shares from Deutsche Telekom.
     Globe Telecom recently bought back 12 mln of its shares from Deutsche Telekom AG, while parent Ayala Corp expect to acquire 10.03 mln shares also from Deutsche Telekom this week. The shares are valued at 680 pesos each.
     cecille.yap@afxasia.com

Philippine Treasury plans to issue up to 20 bln pesos in retail bonds in Nov

     MANILA (AFX-ASIA) - The Bureau of Treasury will issue up to 20.00 bln pesos' worth of retail Treasury bonds (RTBs) in November to beef up government's cash position ahead of the presidential elections in May, which is expected to drive up interest rates, National Treasurer Sergio Edeza said.
     "We have to be prepared," Edeza told reporters.
     The new RTBs will either have a three- or five-year maturity, and a minimum issue of between 3.0-5.0 bln pesos.
     The government recently raised 1.05 bln usd from the international capital markets, which will cover its remaining 225.00 mln usd funding requirements for this year, as well as some of its 1.80-bln usd funding requirements for 2004.
     Government officials said it is not closing its doors to more borrowings to pre-fund its 2004 requirements to take advantage of stable interest rates. It expects rates to go up next year on uncertainties caused by the upcoming elections.
     (1 usd = 55.512 pesos)
     cecille.yap@afxasia.com

Philippine PSALM in talks with other investors on sale of transmission assets

     MANILA (AFX-ASIA) - The Power Sector Assets and Liabilities Management Corp is in talks with another investor, aside from Singapore Power Corp, for the privatization of the country's power transmission assets.
     The transmission facilities are currently being operated by the state-run National Transmission Co (Transco).
     "We've been looking for other investors. There are some interested investors with certain conditions like financial and political (stability). So far, there is another one which has been added to the list of keen investors for Transco," Transco president Alan Ortiz told reporters.
     "It is open season. We are not beholden to Singapore Power."
     Ortiz declined to name the other investor.
     The Singapore firm was the lone bidder for the transmission assets after two rounds of public bidding, prompting government to declare a failed bidding and begin negotiations with Singapore Power.
     However, PSALM, which is the residual company of the National Power Corp and Transco, has yet to receive a formal indication from the Singapore firm.
     Government is hoping to raise about 2.0 bln usd from the proceeds of the transmission assets' privatization.
     (1 usd = 55.512 pesos)
     cecille.yap@afxasia.com

First Philippine Holdings to list 40,722 shares on Oct 29

     MANILA (AFX-ASIA) - First Philippine Holdings is set to list 40,722 common shares on Oct 29, the stock exchange said.
     The shares to be listed came under the company's stock option plan.
     First Holdings closed down 0.25 pesos at 17.50 on 942,700 shares.
     (1 usd = 55.512 pesos)
     afxmanila@afxasia.com

Philippine Treasury raises 3.0 bln pesos via 2-yr bonds; coupon at 8.75 pct

     MANILA (AFX-ASIA) - The Bureau of Treasury (BTr) said it raised 3.0 bln pesos at today's auction of 2-year bonds, with total tenders reaching 10.35 bln pesos.
     The coupon rate was set at 8.75 pct.
     (1 usd = 55.512 pesos)
     cecille.yap@afxasia.com

Philippines' PCI Leasing plans to issue 100.0 mln pesos in short-term notes

     MANILA (AFX-ASIA) - PCI Leasing & Finance Inc said it plans to issue 100. 00 mln pesos in short-term commercial papers to finance relending activities.
     The planned float has been assigned a "PRS1" rating by the Philippine Rating Services Corp, which indicates the issuer has the "strongest capability for timely payment of debt instrument issue on both interest and principal."
     (1 usd = 55.559 pesos)
     afxmanila@afxasia.com

Manila shares flat early on peso weakness, politics

     MANILA (AFX-ASIA) - Share prices were flat in early sluggish trade on extended consolidation, with the peso's weakness and political concerns weighing on investor sentiment, dealers said.
     Slight gains in Globe Telecom and Philippine Long Distance Telephone Co limited the market's decline.
     At 9.48 am, the composite index was down 2.42 points or 0.18 pct at 1,355. 75 on 49.05 mln shares worth 21.27 mln pesos. It has so far traded between 1, 355.75 and 1,360.52.
     Losers beat gainers 9 to 7, with 13 stocks unchanged.
     The peso has so far averaged 55.556 after trading between 55.550 and 55. 5590 on volume of 41.50 mln usd so far. It ended at its record closing low of 55.500 yesterday.
     cecille.yap@afxasia.com

Bid to impeach Philippines chief justice paralyzes Congress - speaker

     MANILA (AFX-ASIA) - An opposition move to impeach Philippines Supreme Court esident Gloria Arroyo's reform agenda, a congressional leader said.
     House of Representatives Speaker Jose de Venecia said he will meet legislators calling for the sacking as well as Davide's representatives later today to try and find a solution to "avert this damaging confrontation between Congress and the Supreme Court."
     More than 90 House members want Davide, the Philippines' fifth most senior official and fourth in line to the presidential succession, impeached and put on trial in the Senate for his refusal to open the judiciary's budget books for congressional scrutiny.
     The opposition has accused Davide of misusing about 48.00 mln pesos from the Judicial Development Fund, appropriated by Congress and managed by his office.
     De Venecia said that unless both sides moderate their positions, Congress will be unable to pass the 2004 budget or act on economic and social reform bills endorsed by Arroyo.
     He wants Davide to concede to congressional oversight over the funds, and for the opposition in return to withdraw the impeachment complaint.
     "Once the impeachment complaint reaches the Senate for trial, we may as well say goodbye to the budget, not to mention the economic and social legislation that will be held hostage and will not be taken up anymore," de Venecia said.
     "If we don't solve this problem this afternoon, then that (paralysis) will happen," he said on ABS-CBN television.
     "We will export the problem to the Senate and we will have a full blown constitutional crisis."
     With the peso at near-record lows, President Arroyo held phone conference calls with Davide and opposition leader Eduardo Cojuangco last weekend and showed up at a prayer rally for the chief justice outside the Supreme Court building yesterday.
     The President said she had "to mediate a controversy that may invite opportunistic destabilization attempts perpetrated by parties outside the dispute".

Philippine SM Prime opens mall in Quezon province

     MANILA (AFX-ASIA) - SM Prime Holdings said it opened its SM City Mall in Lucena in the province of Quezon on Oct 3.
     The SM City Lucena is one of three malls the company will open this year.
     The Lucena mall has three floor levels and a total of 72,056 square meters of shopping, entertainment and dining floor area.
     The company said it is also set to open malls in Baguio City and in Bulacan on Nov 21 and 28, respectively.
     By the end of 2003, SM Prime will have 17 malls with a total floor area of 2.2 mln sq m.
     cecille.yap@afxasia.com

Philippines' Unionbank 9 mths to Sept net profit 2.074 bln pesos, up 77 pct

     MANILA (AFX-ASIA) - Union Bank of the Philippines (UnionBank) reported its nine-month to September net profit rose 77.00 pct year-on-year to 2.074 bln pesos on the back of strong cash management services and steady growth in its capital and treasury-related businesses.
     In a disclosure to the stock exchange, UnionBank said total revenue was up 3.95 bln pesos from 2.96 bln a year ago. Total resources stood at 70.26 bln pesos as of end-September due to the increase in deposit liabilities to 42.36 bln pesos from 41.9 bln as of end-Dec 2002.
     The bank's risk-adjusted capital adequacy ratio was four times more than the central bank's 10.00 pct requirement at 46.40 pct.
     UnionBank said it set aside 255.00 mln pesos in additional loan loss reserves in the nine months to September to bring its reserve cover to 81.01 pct of non-performing loans. NPL as a percentage of total loans stood at 13. 49 pct versus the industry's average of 14.96 pct as of end-August.
     (1 usd = 55.500 pesos)
     cecille.yap@afxasia.com

Philippine Megaworld interested in 25 pct of Fort Bonifacio Development Corp

     MANILA (AFX-ASIA) - Property developer Megaworld Corp said it is interested in acquiring the 25.00 pct stake of state-run Bases Conversion Development Authority (BCDA) in Fort Bonifacio Development Corp (FBDC).
     FBDC is the developer of the Fort Bonifacio Global City in Taguig, which used to be a former military camp.
     Megaworld, in a disclosure to the stock exchange, said it is "seriously studying and evaluating its options in anticipation of the privatization of BCDA's remaining stake in FBDC."
     BCDA earlier said it expects to generate around 7.0 bln pesos from the sale of its 25.0 pct stake in FBDC.
     The state-run agency owns 45.0 pct of the 214-hectare prime property, while Ayala Land Inc and Evergreen Holdings earlier acquired a 50.4 pct stake from Bonifacio Land Co for 90.00 mln usd.
     (1 usd = 55.500 pesos)
     cecille.yap@afxasia.com

OUTLOOK - Philippines' Ayala Land Q3 net profit 570-664 mln pesos vs 553 mln

     ---by Cecille Yap---
     MANILA (AFX-ASIA) - Ayala Land Inc is expected to report third quarter to September net profit of 570.00-664.00 mln pesos on the back of steady gains in the medium- and low-end residential segments, analysts polled by AFX-Asia said.
     The forecast range represents an earnings improvement of between 5.00-20. 00 pct from the year-earlier net profit of 553.00 mln pesos, which was computed based on the company's 2002 nine-month and first half net profit of 1.62 bln pesos and 1.067 bln respectively.
     "Growth will likely come from all segments, with the sale of its lower-end residential units being the strongest," AB Capital Securities research director Jose Vistan Jr, who is projecting third quarter net profit of 664.00 mln pesos for the company, said.
     Ayala Land has projected third-quarter sales growth of 15.00-20.00 pct compared with the same period last year, Vistan said.
     "The company has also benefited from the low-interest rate environment, which has contributed to the increase in sales take-up... We might be in for a pleasant surprise," he added.
     Accord Capital Equities analyst Lawrence de Leon said he is expecting Ayala Land's net profit to grow a modest 5.00 pct year-on-year.
     He said the bulk of the company's revenues come from its mall rentals, which had been relatively "flat and predictable."
     Ayala Land earlier said leasing operations continued to drive revenue, contributing 1.79 bln pesos, or 28.00 pct, of total first half earnings.
     Rental revenue grew 17.00 pct year-on-year in the first half, boosted by new Greenbelt 2 and 3 commercial complexes as well as a 5.00-12.00 pct increase in basic rental rates at Ayala Center. The mall's occupancy rate stood at 96.00 pct.
     Ayala Center accounts for 70.00 pct of total revenue. Earnings from hotel operations account for 9.00 pct of the property firm's revenue.
     Earnings from office leasing were steady on the back of an average occupancy rate of 95.00 pct, it said.
     Regina Capital Development analyst Gomer Tan, who is also expecting Ayala Land's Q3 net profit to come in 5.00 pct higher than the year-earlier period, said its sales of residential units will likely remain strong in the second half on the back of a steady rise in remittances from overseas Filipino workers.
     ING Financial Markets has said it is maintaining a "buy" rating on Ayala Land, also due to strong take-up of residential and condominium units in the third quarter.
     However, it said the performance of Ayala Land's mall business has been less encouraging as same-store sales growth at the Ayala Center shopping mall complex remains flat.
     "We would partly attribute this to the adverse impact of recently opened space at the Greenbelt redevelopment, which is expected to partly cannibalise sales growth at existing, older spaces," ING said.
     (1 usd = 55.500 pesos)
     cecille.yap@afxasia.com

Philippine BIR to collect 6.0 bln pesos unpaid gross receipt taxes from banks

     MANILA (AFX-ASIA) - The Bureau of Internal Revenue (BIR) will go after banks to collect as much as 6.0 bln pesos in unpaid gross receipt taxes from 1996 to 2002, BIR commissioner Guillermo Parayno said.
     He said a recent Supreme Court ruling, which upheld a previous ruling that gross receipts tax (GRT) payment is based on 100 pct of the banks' gross earnings, would allow the agency to collect about 1.0 bln pesos a year from the banking sector.
     Banks have applied the GRT to only 80.0 pct of interests earned on loans because of their different interpretation of the law.
     "I would like to think that the banks are very responsible and now that there is a final decision by the Supreme Court after the motion for reconsideration was thrown out, on their own, they will correct things," Parayno told reporters.
     The BIR collects 14.0 bln pesos in annual GRT, which the Supreme Court said represents only 80.00 pct of what the agency was supposed to collect from banks.
     (1 usd = 55.500 pesos)
     cecille.yap@afxasia.com

Manila shares outlook - Mixed to lower on consolidation, weaker peso

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to lower on extended consolidation, with a weaker peso and lingering political anxieties dampening investor sentiment, dealers said.
     Yesterday, the composite index closed down 5.23 points, or 0.38 pct, at 1, 358.17 on 184.42 mln shares worth 343.76 mln pesos.
     "The local currency's weakness has put renewed pressures on domestic interest rates and monetary policies. Already, the markets are expecting interest rates to move higher. Such outlook has caused interest sensitive stocks such as property issues to tumble," AB Capital Securities research director Jose Vistan Jr said.
     The peso fell to a record closing low of 55.500 on month-end corporate demand and renewed political concerns arising from the House of Representatives' recent impeachment of Supreme Court Chief Justice Hilario Davide, a key figure in the impeachment trial and eventual ouster of former President Joseph Estrada.
     Various sectors have opposed the impeachment, citing legal flaws and politics behind the move to oust Davide.
     2TradeAsia.com, in its daily note to investors, said another cautious trading is expected today as players adopt a wait-and-see approach "if there are variables that reverse the peso's current aberration against the greenback."
     The market is supported at 1,330, while resistance is at 1,380.
     cecille.yap@afxasia.com

Mirant Philippines keen on 20 pct stake in Aboitiz's power project - report

     MANILA (AFX-ASIA) - Mirant Philippines Corp, the country's largest independent power producer, is interested in purchasing a 20.00 pct stake in Aboitiz-controlled Subic Enerzone, the BusinessWorld newspaper reported, quoting Aboitiz Equity Ventures executive vice president Erramon Aboitiz.
     Subic Enerzone won the bid to provide power in the Subic Bay Freeport. It took over the operations of the power distribution facility from the Subic Bay Metropolitan Authority at the weekend.
     "We are in talks with Mirant. They are looking at a 20.00 pct stake," Aboitiz was quoted to have said.
     (1 usd = 55.500 pesos)
     cecille.yap@afxasia.com

Philippines' Aboitiz Equity Ventures interested in transmission assets -report

     MANILA (AFX-ASIA) - Aboitiz Equity Venturees plans to acquire some of the sub-transmission assets that will be sold by the National Transmission Corp (Transco), the BusinessWorld newspaper reported, quoting AEV executive vice president Erramon Aboitiz.
     "We are prepared to purchase the sub-transmission assets. We are just waiting for the Transco and the Energy Regulatory Commission (ERC)," Aboitiz was quoted to have said.
     AEV, the holding company of the Aboitiz group, owns several power distribution utilities such as the San Fernando Electric Light & Co in Luzon, the Visayas Electric Co in Cebu province and the Davao Light & Power Co in Mindanao.
     Transco hopes to generate between 6.0-7.0 bln pesos from the sale of all sub-transmission assets, and is awaiting the sale guidelines from the ERC.
     (1 usd = 55.500 pesos)
     cecille.yap@afxasia.com