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Thursday, October 09, 2003
Philipine
PNOC unit open to First Gas taking stake in pipeline project
Forex
- Philippine peso closes stronger on firmer yen, inflows
Philippine
SEC cuts penalties on Makati Finance for late filings by 50 pct
Philippine
peso stronger vs dollar on inflows as yen firms - Tetangco
Philippine
Sept motor vehicle sales up 4.30 pct yr/yr, down 8.30 pct mth/mth
Philippine
Lepanto receives BOI incentives for Victoria II gold mining project
BROKER
CALL - Bank of the Philippine Islands to post weak loan growth - ING
BROKER
CALL - Philippines' Globe set to match Smart's e-load offer - ING
Philippines'
Chinabank says 9 mths net profit 'will be at least 2.0 bln pesos'
Manila
shares close slightly up ahead of Q3 economic and corporate results
Philippines'
Banco de Oro says 9 mths net profit likely exceeded yr-ago level
BROKER
CALL - Philippines' Smart likely to pay extra div to PLDT in Q4 - ING
STOCKWATCH
- Philippines' San Miguel A firmer, B steady after court ruling
Australia
defence minister sees Manila as likely Jemaah Islamiyah target
Philippines'
Metrobank sells 40 pct stake in Metrobank Card to ANZ Funds Pty
Manila
shares slightly lower early on political concerns
STOCK
ALERT - Philippines' Meralco lower early on speculation
STOCK
ALERT - Philippines' San Miguel A firmer, B steady after court ruling
Philippines'
Republic Glass cash dividend 0.15 pesos
Philippines'
Chemphil sells 4.79 pct stake in Kemwater to unit LMG Chemicals
Philippine
govt approves bidding rules for Napocor's re-insurance coverage
Philippine
Unioil Resources' trading suspension lifted - stock exchange
Philippines
to appeal against order lifting sequestration on San Miguel- Bunye
Manila
shares outlook - Mixed to slightly higher on bargain-hunting
Philippine
Manila Water allots 1.7 bln pesos for 2004 capital expenses-report
ROUNDUP-Philippine
court nullifies sequestration of San Miguel's 20-pct block
Wednesday, October 08, 2003
Philippine
San Miguel to benefit from lifting of govt sequestration - analyst
Philippine
oil firms announce 0.25 pesos/liter fuel price hike
Philippine
court nullifies sequestration order on San Miguel shares
Total
Philippines announces 0.25 pesos/liter fuel price hike
Manila
shares close mixed on consolidation; PLDT lifts key index
Philippines
checking report of Malaysia kidnapping
Group
of Malaysians kidnapped from resort island - police official
Philippines'
Globe says may increase planned bond issue size to 3.5 bln pesos
DATAWATCH
- Philippines' consumer demand seen remaining weak - GK Goh
Philippines
inflation to remain stable at 3.0 pct yr-on-yr in Q4 - Neri
Philippine
Banco De Oro says UBS soliciting interest for 100-mln usd notes
Philippines
Sept CPI up 2.90 pct yr-on-yr, 0.10 pct mth-on-mth
Philippines'
LandBank 8 mths net profit 1.45 bln pesos, may exceed FY target
Philippine
central bank approves Banco de Oro notes issue hike to 130 mln usd
Philippines'
Meralco may hike 2003 capex to 6.0 bln pesos - report
Philippine
govt end-July total debt 3.14 trln pesos vs 2.96 trln in June
Arroyo
announces Philippines re-election bid
October 6 - 7
October 3 - 4
October 1 - 2
| Philipine PNOC unit open to First Gas taking stake in pipeline project |
MANILA (AFX-ASIA) - PNOC Exploration Corp, a unit of state-owned Philippine National Oil Co, said it is open to allowing First Gas Power Corp to take a stake in its 100 mln usd natural gas pipeline project. PNOC-EC, which the Energy Department has mandated to lead the construction of the pipeline to carry Malampaya natural gas from Batangas province to Manila, intends to obtain private sector support for the project. "We are willing to talk with them (First Gas), but nothing has been formalized. If this is the only way for the project to take off then we are willing to talk things over with them," PNOC president Thelmo Cunanan said. "Right now, the equity structure is being worked on." The Energy Department granted PNOC-EC a provisional permit to construct, own and operate an onshore downstream natural gas pipeline from Batangas to Manila. PNOC-EC president Rufino Bomasang earlier said the 100-kilometer pipeline project is targeted for completion next year. PNOC-EC has received inquiries from at least four investors , three local and one foreign, to take part in the project, he said, without identifying them. "What needs to be resolved is the ownership issue since First Gas also wants to apply for a permit. That is why we are willing to talk things over with the other party," Cunanan said. First Gas, a unit of First Philippine Holdings Corp, is also seeking strategic partners for its own pipeline project. Other companies that have expressed interest to construct and operate a gas pipeline in the Philippines include Japan Gas Corp, Korean Gas Corp, Petronas of Malaysia, British Petroleum Plc, Korean Electric Power Co, Mashhor of Brunei, afxmanila@afxasia.com |
| Forex - Philippine peso closes stronger on firmer yen, inflows |
MANILA (AFX-ASIA) - The peso closed firmer, supported by fresh inflows and after the yen gained more ground against the US dollar this afternoon, dealers said. Although the yen was back above 109 after hitting 108.85, purportedly due to Bank of Japan intervention, local dealers said the market was positioning on expectations that the Japanese unit will gain more strength going forward and as more inflows come in ahead of the Christmas holidays. The peso closed at 54.870 to the dollar after trading in the range of 54. 865 to 55.020, on volume of 146.10 mln usd. It closed at 55.000 yesterday. "The stronger regionals, particularly the yen, led to dollar-selling shortly before the market closed. The market thinks that the Japanese central bank intervention only delays the yen's appreciation possibly to 105 level," a commercial bank dealer said. "Given the bearish trend on the dollar, I think the peso will gain more ground." Another dealer, however, said local market players are unlikely to aggressively sell dollars at this time, despite expectations of seasonally strong inflows during the last quarter. "The yen seems to be gaining ground on the back of improving Japanese economic environment. But the Philippine economy is not showing that kind of recovery," he said. "Yes I agree that the peso has room for further strengthening, but mainly on the back of inflows during the last quarter. But I don't think that is sustainable." Remittances from Filipinos working abroad normally peak during the last quarter when they send money to their families here in time for the Christmas holidays. Central bank deputy governor Amando Tetangco Jr said fresh fund inflows, including remittances from Filipino workers abroad, coupled with positive sentiment over a stronger yen against the dollar, gave the peso a boost today. He said the central bank was not in the market today. "The peso's improvement today is a continuation of yesterday's momentum and driven by (overseas Filipino workers') remittances, exporters' dollar sales, and offshore inflows on the back of a stronger yen," he told reporters. The second dealer, however, said political risk concerns, as the May 2004 elections draw near, will likely re-emerge after the Christmas season and weigh on the peso again. The dealer said dollar demand by importers also seems to be winding down, and that also added support for the local unit. The first dealer sees the dollar supported initially at 54.700 tomorrow, while the second dealer sees the US unit being traded in the range of 54. 800-55.000. "Anything above 55 seems to be expensive for now as the market is expecting more inflows in the coming days," the second dealer said. edelacruz@afxasia.com |
| Philippine SEC cuts penalties on Makati Finance for late filings by 50 pct |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has halved the penalties it had imposed on Makati Finance Corp for its failure to meet certain reporting requirements, the company said. Makati Finance Corp, in a disclosure to the stock exchange, said the SEC approved a 50-pct reduction of the penalty to 69,650 pesos. The commission said it granted the request for a reduction in penalties in view of the current global financial crisis. It added the delay in submitting its filings was an "honest mistake" on the part of the company. (1 usd = 54.87 pesos) afxmanila@afxasia.com |
| Philippine peso stronger vs dollar on inflows as yen firms - Tetangco |
MANILA (AFX-ASIA) - Fresh fund inflows, including remittances from Filipino workers abroad, coupled with positive sentiment over a stronger yen against the US dollar, gave the peso a boost today, central bank deputy governor Amando Tetangco Jr said. "The peso's improvement today is a continuation of yesterday's momentum and driven by (overseas Filipino workers') remittances, exporters' dollar sales, and offshore inflows on the back of a stronger yen," he told reporters. The peso closed at 54.870 to the dollar on the spot market, after trading between 54.865 and 55.020, on volume of 146.1 mln usd. It closed at 55.000 yesterday. The central bank was not in the market today, Tetangco said. afxmanila@afxasia.com |
| Philippine Sept motor vehicle sales up 4.30 pct yr/yr, down 8.30 pct mth/mth |
MANILA (AFX-ASIA) - Domestic motor vehicle sales in September rose 4.30 pct to 7,744 units from 7,423 in the same month last year, data from the Chamber of Automotive Manufacturers of the Philippines (CAMPI) said. In the first nine months of the year, sales rose 14.00 pct to 69,918 from 61,350 during the same period a year earlier. However, month-on-month sales were down 8.30 pct from 8,320 units in August. Passenger car sales fell 2.7 pct year-on-year to 1,703 units in September, but rose 22.6 pct from August. Sales down 9.5 pct year-on-year to 14,975 for the Jan-Sept period. Planned car purchases that were held off in August and the prior months may have been pursued in September following the passage of a new excise taxation scheme for vehicles that effectively lowered taxes on cars, industry officials said. Meanwhile, commercial vehicle sales dropped 12.80 pct month-on-month to 6, 041 units in September. Year-on-year sales were up 6.50 pct. For the first nine months to September, commercial vehicle sales rose 22. 60 pct to 54,943 units compared to a year earlier. The new tax measure removed the tax exemptions on 10-seater vehicles. Toyota Motor Philippines Corp led September sales with 2,023 units, followed by Mitsubishi Motors Philippines Corp with 1,487 and Isuzu Philippines Corp with 1,408. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Philippine Lepanto receives BOI incentives for Victoria II gold mining project |
MANILA (AFX-ASIA) - Lepanto Consolidated Mining Co said it has received the Board of Investment's approval for its Victoria II gold mining project in Benguet province in northern Luzon. As a new project on a "non-pioneer" status, Victoria II will enjoy certain incentives, among which is an income tax holiday for four years and extendible by three years starting April 2004. The approved capacity of the mining project is 970,570 tons, equivalent to 162,860 ounces of gold annually. Lepanto earlier said it will invest 73.41 mln usd in the Victoria II mining project for a period of seven years. The company said the project, which is expected to commence commercial operations early next year, will generate over the same period a net cash flow of 78.20 mln usd from a gold production of close to one mln ounces. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| BROKER CALL - Bank of the Philippine Islands to post weak loan growth - ING |
MANILA (AFX-ASIA) - ING Financial Markets said it has reduced its profit forecasts for the Bank of the Philippine Islands from this year until 2005 due to sluggish growth in the bank's loan portfolio. ING however maintained its buy recommendation on the stock, saying the bank continues to be the most attractively valued among Philippine banks in terms of earnings. Still, it reduced BPI's target price of 50.00 pesos per share over a 12-month period. "...We learned that BPI has given back the 2.00 pct loan growth it achieved in the second quarter of 2003 during the months of July and August. This was due to pay downs from top corporates and the fairly sluggish growth in corporate lending," ING said. BPI will also have to undergo a "mandated reclassification" of around 4. 00 bln pesos in loans representing a loan made to the central bank. The portfolio will be reclassified as an interbank loan, resulting in a lower loan portfolio for BPI. BPI's non-performing loan ratio declined to 11.20 pct as of end-September from 11.50 pct in the previous quarter, which ING said is equivalent to a decline of some 1.00 bln pesos. ING however said the reduction was largely due to a transfer of the NPL accounts to foreclosures, which are now at 17.00 bln pesos from 15.20 bln in the second quarter. The loans of automotive battery manufacturer Ramcar have been converted into real estate assets. "BPI continues to explore the possibility of disposing its non-performing assets (NPAs) on a wholesale basis, notwithstanding the failed bidding last month for the said assets. Meanwhile, the bank continues to pursue the sale of foreclosure on a retail basis," ING said. The bank has so far sold 1.00 bln pesos in foreclosures, higher than the 800.00 mln pesos in 2002. "We are lowering our profit forecasts by 4.00 pct in 2003 and 7.00 pct in 2004 and 2005 on reduced loan growth assumptions," ING said. It expects BPI's net profit for the year to reach 5.47 bln pesos and hit 6.36 bln and 7.21 bln in 2004 and 2005 respectively. It did not disclose previous forecasts. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| BROKER CALL - Philippines' Globe set to match Smart's e-load offer - ING |
MANILA (AFX-ASIA) - Globe Telecom Inc is expected to offer soon more electronic re-loading services for its pre-paid wireless customers, inspired by the success of Smart Load of its rival Smart Communications Inc, ING Financial Markets said. Smart Load offers Smart subscribers low-denomination electronic re-loading through a nationwide network of retailers. ING said about 63 pct of the pre-paid subscribers of Smart, a unit of Philippine Long Distance Telephone Co (PLDT), now re-load their accounts through Smart Load, while 72 pct of Talk 'N Text subscribers use this medium. Talk 'N Text is the wireless brand of Pilipino Telephone Corp, which is part of the PLDT group. Globe, however, was the first to introduce electronic re-loads through banks' automated teller machines, ING said. In its latest note, ING said it also expects quarter-on-quarter improvement in net subscriber additions for Globe, though Smart has been more successful in penetrating the mass market with Smart Load. "Although we expect Globe to offer more (electronic re-loading) services...our impression is that the distribution network may not be as wide as Smart Load," it said. "Still, we expect Globe to report quarter-on-quarter improvement in net subscriber additions in the third quarter as pre-paid churn rates decline following the introduction of lower-denominated re-loads," ING said. Globe now offers pre-paid load for as low as 100 pesos, and as low as 50 pesos for its Touch Mobile brand. Globe, whose major shareholders include Ayala Corp, Deutsche Telekom AG, and Singapore Telecom International Pte Ltd, earlier reported total wireless subscribers of almost 7.30 mln as of end-June, up 34 pct from last year. PLDT's wireless subscriber base, on the other hand, had exceeded 11 mln as of end-August. ING said it expects both Globe and Smart to benefit from continued strong market growth, especially as new entrant Sun Cellular of Digital Telecommunications Philippines Inc would not complete the third phase of its capital expenditures intended for expansion and network upgrade until the second half of 2004. ING noted, meanwhile, that Globe's 2003 capex budget of 367.00 mln usd is in line with its forecast. It estimates 2004 capex will be at 285.00 mln usd, equivalent to 33 pct of mobile service revenues and which is consistent with management's target of spending 30.00-35.00 pct of revenues on capex. ING is maintaining its "buy" call on Globe, as well as its 12-month price target of 820 pesos. Globe closed today unchanged at 700 pesos. (1 usd = 55.00 pesos) edelacruz@afxasia.com |
| Philippines' Chinabank says 9 mths net profit 'will be at least 2.0 bln pesos' |
MANILA (AFX-ASIA) - China Banking Corp said it is "confident" its first nine months to September net profit will reach the 2.00 bln peso mark. "We are still in the final stages of closing our books for the end of the third quarter. However, we are confident that the final figures will be at least 2.00 bln pesos," Chinabank said in a disclosure to the stock exchange. No comparative figure was provided. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Philippines' Chinabank says 9 mths net profit 'will be at least 2.0 bln pesos' |
MANILA (AFX-ASIA) - China Banking Corp said it is "confident" its first nine months to September net profit will reach the 2.00 bln peso mark. "We are still in the final stages of closing our books for the end of the third quarter. However, we are confident that the final figures will be at least 2.00 bln pesos," Chinabank said in a disclosure to the stock exchange. No comparative figure was provided. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Manila shares close slightly up ahead of Q3 economic and corporate results |
MANILA (AFX-ASIA) - Share prices closed marginally higher in lethargic and directionless trade as investors stayed on the sidelines ahead of third quarter economic and corporate results, dealers said. They added political bickering ahead of the 2004 presidential elections has continued to deter most investors from returning to the market as shown in the low turnover in value terms. However, bargain-hunting on selected stocks managed to keep the market at bay. The composite index closed up 5.12 points or 0.39 pct at 1,303.66 on 1.31 bln shares worth 503.86 mln pesos. It traded between 1,293.36 and 1,305.05. Gainers beat losers 28 to 22, with 42 stocks unchanged. "There are apprehensions on the political front. The decision of the President to run in the 2004 presidential race has raised concerns about its possible effect on the business community," AB Capital Securities research director Jose Vistan Jr said. Vistan said there are concerns that "controversial" decisions, detrimental to some publicly-listed companies, may be taken in line with the President's political goals. For instance, he said it would be "unpopular" for the government to approve Manila Electric Co's plans to increase distribution rates. A formal petition has yet to be submitted by the country's largest power distributor to the Energy Regulatory Commission. "October is usually that time of the year when companies re-assess whether to keep or revise their profit goals, so investors are now on a wait-and-see attitude," Accord Capital Equities analyst Ron Rodrigo said. He added the market is consolidating near the 1,300 level, and that the market will "remain healthy," so long as it does not go below the 1,257 level. "People are waiting for third quarter earnings results before entering the market anew," Asiasec Equities analyst Oliver Plana said. Philippine Long Distance Telephone was top-traded, although down 5.00 pesos at 680 on 249,040 shares. Meralco B, open to foreigners, was down 0.75 pesos at 21.50 on 3.26 mln shares. Meralco A was unchanged at 14.50 on 392,600 shares. SM Prime was up 0.20 pesos at 6.40 on 9.7 mln shares. Exportbank was down 0.04 pesos at 0.71 on 45.26 mln shares. Bank of the Philippine Islands shed 0.50 pesos at 43.50 on 681,800 shares. Ayala Land was down 0.10 pesos at 6.10 on 2.97 mln shares, while parent Ayala Corp was up 0.05 at 4.70 on 538,000 shares. Aboitiz Equity Venture was up 0.15 pesos at 3.35 on 3.13 mln shares. The all-shares index was up 3.35 at 801.30. The commercial-industrial index gained 4.54 pts at 1,913.97, while property was up 4.87 at 568.42. Mining bucked the trend to shed 66.75 to 1,518.96. Oil was up 0.03 at 1.39. Banking and financial services gained 3.22 at 435.19. 1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| Philippines' Metrobank sells 40 pct stake in Metrobank Card to ANZ Funds Pty |
MANILA (AFX-ASIA) - Metropolitan Bank and Trust Co said it has sold its 40.00 pct stake in Metrobank Card Corp to ANZ Funds Pty Ltd, a wholly-owned subsidiary of Australia and New Zealand Banking Group Ltd. In a disclosure to the stock exchange, Metrobank said the transaction involved 141.04 mln Metrobank Card shares. It did not provide financial details. "The transaction will result in a joint venture between the Metrobank Group and ANZ Group," Metrobank assistant corporate secretary Antonio Viray said. In a separate statement, ANZ said the agreement with Metrobank is another step the company has taken to establish a small network of lower-risk growth options in Asia over the medium to long term. ANZ said its specialist credit card expertise and Metrobank's local franchise creates a business with significant growth potential. "Clear governance principles have been established, including proportional board representation, with ANZ having significant management involvement," it said. (1 usd = 55.00 pesos) edelacruz@afxasia.com robert.fenner@afxasia.com |
| Philippines' Banco de Oro says 9 mths net profit likely exceeded yr-ago level |
MANILA (AFX-ASIA) - Banco de Oro Universal Bank said its nine months to September net profit likely exceeded the year-ago level. The bank did not provide figures and other details in its disclosure to the stock exchange. Banco de Oro earlier reported an unaudited net profit of 772.1 mln pesos in the first nine months of 2002. The bank said it may also surpass its 2003 net profit target of 1.35 bln pesos. "We must, however, reiterate that our basis consists of initial figures which are still tentative," it said. (1 usd = 55.00 pesos) edelacruz@afxasia.com |
| BROKER CALL - Philippines' Smart likely to pay extra div to PLDT in Q4 - ING |
MANILA (AFX-ASIA) - ING Financial Markets said it sees Smart Communications Inc being on track to pay parent Philippine Long Distance Telephone Co (PLDT) an additional dividend of 1.8 bln pesos in the last quarter of 2003. In addition, another affiliate Pilipino Telephone Corp (Piltel) may add value to PLDT, it said. Both Smart and Piltel have made impressive gains in the wireless business, according to ING, which maintains its "buy" call on PLDT and a 12-month price target of 780.00 pesos. At 11.50 am, PLDT was down 5.00 pesos at 680.00. Smart's successful churn management has resulted in a strong growth in the company's mobile subscriber base and higher margins, ING said in its latest note. It is on track to pay PLDT a further dividend of 1.8 bln pesos in the fourth quarter, bringing its pay-out ratio to 100.00 pct of the 2002 net profit," ING added. "Even Piltel, long written off by investors, may provide value," it said. As at end-August, the combined subscriber base of Smart and Piltel, with its Talk 'N Text mobile brand, stood at more than 11.00 mln, up from 10.30 mln as at end-June, PLDT said earlier. PLDT said it expects its mobile phone subscribers to exceed 12.00 mln at the end of the year. It is confident the continued gains in the wireless business will boost its net profit, including one-off provisions, to around 9.00 bln pesos this year from 3.10 bln in 2002. "Net subscriber additions in the third quarter exceeded (those in the second quarter), when both Smart and Talk 'N Text signed on a total of almost 1.00 mln new subscribers. We estimate 11.50 mln subscribers for the group as of Sept 2003, up 11.00 pct quarter-on-quarter," ING said. This strong subscriber base growth was partly due to lower churn rates, following the introduction in May of the now widely available Smart Load, which offers low-denomination over-the-air pre-paid re-loads, ING said. "According to management, 63.00 pct of Smart's pre-paid subscribers now reload their accounts through Smart Load, while 72.00 pct of Talk 'N Text subscribers use this medium, indicating strong acceptance of the product," it said. Piltel, on the other hand, is no longer a cash drain to PLDT, after Talk 'N Text's surprisingly strong performance, it added. Piltel reported an operating profit of 54.00 mln pesos and EBITDA of 305. 00 mln pesos in the first half, ING said, adding that the amounts, plus its internal cash flow, mean the company now has enough funds to cover interest expense. "Piltel has also managed to reduce its payables to Smart to only 736.00 mln pesos as at June 2003, as opposed to 1.7 bln a year ago," it added. As for a merger between Smart and Piltel, ING sees it as beiung "extremely complicated" as it would require consent of creditors of the two companies and those of PLDT. There has been speculation of a possible merger of the two wireless operators, with some investors looking at Piltel as the vehicle for the listing of Smart shares, a requirement under its franchise. "A merger of Smart and Piltel has been suggested, especially if Piltel's creditors agree to write off some of Piltel's outstanding 22.00 bln peso debt, " ING said. (1 usd = 55.00 pesos) edelacruz@afxasia.com |
| STOCKWATCH - Philippines' San Miguel A firmer, B steady after court ruling |
MANILA (AFX-ASIA) - San Miguel A shares were firmer, while B shares were flat in late trade after an anti-graft court yesterday ruled to lift a government sequestration on a 20 pct block of shares in the company in favor of businessman Eduardo Cojuangco Jr, dealers said. At 11.25 am, San Miguel A was up 0.50 pesos at 54.00 on volume of 86,000 shares. San Miguel B, open to foreigners, was steady at 61.00 on 19,4000 shares, recouping early declines. The composite index was up 5.35 points, or 0.41 pct, at 1,303.89. Dealers said they expect renewed investor interest on the company following the Sandiganbayan order, although they maintained the lifting of the 17-year old sequestration was only a minor victory for Cojuangco, the company's chairman and chief executive officer. Cojuangco and the government have been fighting for ownership of a key block of San Miguel shares. The ownership dispute is however seen as far from over, dealers said. "There's a saying that when there's a lot of wealth, there's a lot of bandit. So I would rather have those shares in private hands than in anybody else's," DA Market Securities president Nestor Aguila said, adding the recent court decision should be positively viewed by investors. Accord Capital Equities analyst Ron Rodrigo said the court decision should be favorable to the company's management as it effectively re-enforced Cojuangco's hold on three seats in San Miguel's board of directors. Citiseconline.com analyst Mark Alan Canizares said foreign interest in the stock remains lethargic, with investors likely awaiting a final resolution of the ownership dispute. "The case has not been fully resolved. The recent order could still be reversed by a higher court. This could perhaps explain the difference between how San Miguel's A and B shares are traded," Canizares said. The government, through the Presidential Commission on Good Government, may appeal against the Sandiganbayan decision, according to President Gloria Arroyo's spokesman Ignacio Bunye. Canizares added foreign investors may have also opted to invest in other blue chips elsewhere in the region, particularly those whose ratings have just been upgraded. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| Australia defence minister sees Manila as likely Jemaah Islamiyah target |
SYDNEY (AFX-ASIA) - Terrorist network Jemaah Islamiyah appears intact despite arrests around Southeast Asia and may start to focus more heavily on the Philippines, Defence Minister Robert Hill said. Hill told a conference in Canberra that the arrest in Thailand of JI operations chief Hambali was a significant but not a fatal blow to the group. Despite the arrest of more than 200 members, there were no indications the arrests had seriously damaged the group's command and control. In terms of western-style soft targets, he said, Manila represents the richest environment in Southeast Asia. "JI could turn its attention more resolutely to conducting terrorist attacks in the Philippines," Hill said. "Manila is probably the most target rich environment in Southeast Asia in terms of western-style clubs, discos, hotels and symbols of western culture such as multinational businesses and fast-food outlets. "Attacking soft targets in predominantly Christian areas fits with JI's modus operandi and would be appealing to it." JI is suspected of carrying out last year's Bali bombings and a string of other terrorist attacks, mainly in Indonesia. However, many of its operations are believed to have been coordinated from the Philippines, a mainly Christian country where there is a long-running separatist conflict in the south by members of its Muslim minority. |
| Manila shares slightly lower early on political concerns |
MANILA (AFX-ASIA) - Share prices were slightly lower in early trade in the absence of strong leads, with lingering political concerns ahead of the 2004 presidential elections weighing on investor sentiment, dealers said. The market also tracked Wall Street's slight decline overnight as well as the drop in the Philippine Long Distance Telephone Co's (PLDT) American Depositary Receipts in New York, which ended down 0.45 usd at 12.25 last night. Locally, PLDT was top-traded, down 5.00 pesos at 680 on 53,120 shares. At 10.14 am, the composite index was down 4.91 points, or 0.38 pct, at 1, 293.63 on volume of 138.58 mln shares worth 104.34 mln pesos. It has so far traded between 1,293.36 and 1,297.33. Losers have so far beat gainers 15 to 7, with 29 stocks unchanged. Investors have opted to take a wait-and-see stance, awaiting whether companies would revise or uphold their net profit goals for the year, dealers said. However, they expect bargain-hunting on select stocks during today's session, they added. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Meralco lower early on speculation |
MANILA (AFX-ASIA) - Shares of Manila Electric Co were lower in early trade on speculation the country's largest power distributor may not be able to increase distribution rates, dealers said. At 9.58 am, Meralco B, open to foreigners, was top-traded but 1.00 peso lower at 21.25 on 969,900 shares. Meralco A was down 0.75 pesos at 13.75 on 77,600 shares. The utility firm has been widely expected to file another tariff increase petition with the Energy Regulatory Commission soon to increase profitability amid ongoing refunds to customers who had been overcharged. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' San Miguel A firmer, B steady after court ruling |
MANILA (AFX-ASIA) - San Miguel A shares were firmer in light volume, while B shares were unchanged after an anti-graft court yesterday ruled to lift a government sequestration on a 20 pct block of shares in the company in favor of businessman Eduardo Cojuangco Jr, dealers said. At 9.41 am, San Miguel A was up 0.50 pesos at 54.00 on volume of 15,500 shares. San Miguel B, open to foreigners, was steady at 61.00 on 1,000 shares. Dealers said they expect renewed investor interest on the company following the court order, although they maintained the lifting of the 17-year old sequestration was only a minor victory for Cojuangco, the company's chairman and chief executive officer. Cojuangco and the government have been fighting for ownership of a key block of San Miguel shares. The ownership dispute is seen as far from over, dealers said. (1 usd = 54.98 pesos) cecille.yap@afxasia.com |
| Philippines' Republic Glass cash dividend 0.15 pesos |
MANILA (AFX-ASIA) - Republic Glass Holdings Corp said its board of directors has approved a cash dividend of 0.15 pesos per share to stockholders on record as of Oct 24. Payment is set for Nov 18, with the dividends to be taken from the company's retained earnings in year 2000. (1 usd = 55.00 pesos) edelacruz@afxasia.com |
| Philippines' Chemphil sells 4.79 pct stake in Kemwater to unit LMG Chemicals |
MANILA (AFX-ASIA) - Chemical Industries of the Philippines Inc (Chemphil) said it has sold its 4.79 pct stake in Kemwater Philippines Corp to unit LMG Chemicals Corp for 5.50 mln pesos. Chemphil said the transaction involved 5.50 mln shares sold at 1.00 peso each. In a separate disclosure to the stock exchange, LMG Chemicals said it has also acquired 24.50 mln common shares of Kemwater from Chemphil Marketing Corp for 1.00 peso each. (1 usd = 55.00 pesos) edelacruz@afxasia.com |
| Philippine govt approves bidding rules for Napocor's re-insurance coverage |
MANILA (AFX-ASIA) - The government has approved the bidding rules and procedures for the re-insurance coverage of National Power Corp's assets worth 6.50 bln usd, Finance Undersecretary Inocencio Ferrer said. Napocor will have to come up with a shortlist of bidders by November, based on a timetable approved by a bidding committee, he said. State workers' pension fund Government Service Insurance System (GSIS) will retain 70.00 pct of the risk premium on Napocor assets, while the re-insurer will take up the other 30.00 pct. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Philippine Unioil Resources' trading suspension lifted - stock exchange |
MANILA (AFX-ASIA) - The Philippine Stock Exchange said the trading suspension on Unioil Resources Holdings Co has been lifted, effective today. The stock exchange earlier ordered the shares to be suspended after the Securities and Exchange Commission revoked Unioil's registration of securities and the permit to sell these securities. Unioil said the SEC has set aside the order of revocation, while penalties imposed on the firm were reduced to 135,000 pesos payable within six months. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Philippines to appeal against order lifting sequestration on San Miguel- Bunye |
MANILA (AFX-ASIA) - Presidential Spokesman Ignacio Bunye said the Arroyo government will appeal against an anti-graft court decision that lifted the sequestration on a 20 pct block of shares in San Miguel Corp in favor of businessman Eduardo Cojuangco Jr. Cojuangco, the company's chairman and chief executive, is a possible contender in the May 2004 presidential election. "We will probably not take the decision sitting down. The Presidential Commission on Good Government (PCGG) will file a motion for reconsideration," Bunye said in a radio interview. The government has been contesting ownership of a 47 pct block of shares in San Miguel, the country's biggest food and beverage conglomerate. It alleges that Cojuangco used levies collected from coconut farmers during the Marcos administration to buy the shares. Ruling on the 17-year sequestration of the 20-pct block of San Miguel shares, the court favored Cojuangco's defense that most of the sequestration orders on the shares were not valid since they were signed and issued by only one PCGG commissioner, which is contrary to PCGG's regulations that a writ of sequestration should have been issued upon the authority of at least two commissioners. The Sandiganbayan also dismissed as "misplaced" PCGG's argument that the Cojuangco group failed to show prima facie proof that the properties were legitimate acquisition. While the court lifted the writs of sequestration, it did not however rule on the ownership of the shares, saying "... the Republic continues to hold a claim on the shares which is yet to be resolved." "In the the event of sale, mortgage or other disposition of the shares by...Cojuangco...the consideration therefor, whether in cash or in kind, shall be placed in escrow with Land Bank of the Philippines, subject to disposition only upon further orders of this court," the Sandiganbayan added. In July, the Sandiganbayan court rejected Cojuangco's claim over a controlling block of shares in United Coconut Planters Bank (UCPB), which administers the other 27-pct block of the disputed interest in San Miguel. The court ruled that the so-called coco levies, used to acquire the bank and the company, were public funds that should rightfully belong to government. Cojuangco's legal counsel Estelito Mendoza, in a radio interview, said the Sandiganbayan ruling is expected to be beneficial for the company, saying this will further strengthen Cojuangco's helm in the country's largest food and beverage conglomerate. The 20 pct block has given Cojuangco three seats in the company's board of directors, the right to which he had exercised after obtaining a court injunction in the late 1990s. Mendoza also dismissed allegations of a compromise between President Gloria Arroyo and Cojuangco, who had expressed initial interests to run in the presidential race in May 2004. Cojuangco may announce his intention of whether to pursue his presidential ambitions in the next few weeks. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| Manila shares outlook - Mixed to slightly higher on bargain-hunting |
MANILA (AFX-ASIA) - Share prices are expected to open mixed to slightly higher on bargain-hunting after the market's recent decline, although lingering political concerns and Wall Street's modest decline overnight may limit gains, dealers said. The lifting of a sequestration order on a block of shares in San Miguel Corp will likely spur buying interest in the stock, they added. The composite index closed down 14.18 points or 1.08 pct at 1,298.54 yesterday. "The broader market should continue to move within the current trading range... We expect bargain hunters to again take advantage of market dips," BPI Securities said in its daily note to investors. BPI said the decision of the Sandiganbayan anti-graft court to lift the 17-year sequestration on 20 pct of San Miguel Corp in favor of SMC chairman and chief executive officer Eduardo Cojuangco Jr is beneficial to the company's management and "may impact favorably on trading." "As the Phisix has breached the psychological support of 1,300 and it closed near the lows for the day, the bias for the market is negative. The next support level of the Phisix is 1,270," AB Capital Securities research director Jose Vistan Jr said. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| Philippine Manila Water allots 1.7 bln pesos for 2004 capital expenses-report |
MANILA (AFX-ASIA) - Manila Water Co, a unit of Ayala Corp, will set aside 1.7 bln pesos to expand its water service next year, the BusinessWorld newspaper reported, quoting the company's business group director Miguel Jose Naverrete. He said the budget would be used for non-revenue water projects, pipe replacement and new water sources. The budget is 41 pct higher than the 1.2 bln pesos it allocated this year. Manila Water plans to invest at least 48.4 bln pesos in the next 20 years to expand its service coverage. (1 usd = 55.00 pesos) cecille.yap@afxasia.com |
| ROUNDUP-Philippine court nullifies sequestration of San Miguel's 20-pct block |
----by Enrico Dela Cruz---- MANILA (AFX-ASIA) - The Sandiganbayan anti-graft court has nullified the government's sequestration of a 20-pct block of disputed shares in San Miguel Corp, the ownership of which has been the subject of a court battle with businessman Eduardo Cojuangco Jr. The ruling is regarded as a "small victory" for Cojuangco, San Miguel chairman and chief executive officer, who currently votes for the 20-pct block of the long-disputed 47-pct interest in the food and beverage conglomerate. Analysts said the ruling appeared as a "small victory" for Cojuangco, but they believe any buying interest in San Miguel's A and B shares is still likely to be capped by the still unresolved ownership issue that's been hounding the company for about two decades now. The government has been contesting ownership of a 47.00 pct block of shares in San Miguel. It alleges that Cojuangco used levies collected from coconut farmers during the Marcos administration to buy the shares. Cojuangco, however, disputed the allegations, saying he acquired the shares using his personal money. In a Sept 17 decision made public only today, the court declared the writs of sequestration on the San Miguel shares "automatically lifted for being null and void." The court ruled the sequestration orders were not valid since they were signed and issued by only one commissioner from the Presidential Commission on Good Government (PCGG) instead of being signed by at least two. The PCGG, which was created in 1986 to go after what has been disputed as ill-gotten assets, said in a statement it has not yet received a copy of the Sandiganbayan order, but is confident it can prove that the disputed shares are "ill-gotten and should be returned to the people." The PCGG said it issued in April of 1996, 43 writs of sequestration over more than 26 mln shares in San Miguel that were registered in the names of various holding companies. The PCGG said the Sandiganbayan has already set for oral argument two weeks from now its motion for summary judgement on the ownership of the shares. Cojuangco's legal counsel, Estelito Mendoza, said the ruling does not cover the entire 47 pct of the stake being disputed. "Let me clarify that it only involves approximately 20 pct of Cojuangco's shares in San Miguel Corp on the basis of which he is able to elect three members of the board of directors," Mendoza said in a television interview. In July, the Sandiganbayan court rejected Cojuangco's claim over a controlling block of shares in United Coconut Planters Bank (UCPB), which administers a 27-pct block of the disputed interest in San Miguel. The court ruled that the so-called coco levies were public funds. Mendoza said the issue over the UCPB-held shares in San Miguel is not included in the court ruling. "The deprivation of his right to vote (since 1986 when the shares were placed under sequestration) has been without legal basis," Mendoza said, when asked on the implications of the ruling. Astro del Castillo, a director of the Association of Securities Analysts of the Philippines, said the ruling was a "small victory" for Cojuangco in his long-running court battle over ownership of the San Miguel shares. But it is "far from over," he pointed out. "That has really not changed the big picture (and) I think this case will drag on. I'm sure the government will appeal the case all the way to the Supreme Court." "The ownership dispute was a major overhang hounding the company. In fact, it has served as a major turnoff to investors," Citiseconline.com analyst Mark Alan Canizares said, noting their negative perception of government inefficiency in handling business concerns. The resolution of the issue will allow the company to focus on growing the business, he added. With the ownership issue still hanging, Del Castillo said it is unlikely that equities investors will now take aggressive positions on San Miguel shares. San Miguel A closed today down 0.50 pesos at 53.50 while San Miguel B, which is available to foreign investors, ended flat at 61 pesos. Despite its order nullifying the sequestration orders on San Miguel shares, the court underscored that the government "continues to hold a claim on the shares which is yet to be resolved." Hence, it said "any sale, pledge mortgage or other disposition of any of the shares of the defendants Eduardo Cojuangco, et al shall be subject to the outcome of this case." If Cojuangco decides to pursue the sale, mortgage or other disposition of the shares, the proceeds, whether in cash or in kind, should be placed in escrow with the state-owned Land Bank of the Philippines. This ruling also applies to cash dividends declared on the shares. Cojuangco's legal counsel said the San Miguel executive is considering appealing this portion of the court ruling. "With the lifting (of the sequestration), there would be no basis for requiring that in the event of sale, mortgage, as well as pledge and cash dividends, the proceeds should be placed in escrow with the LandBank," Mendoza said. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Philippine San Miguel to benefit from lifting of govt sequestration - analyst |
MANILA (AFX-ASIA) - An anti-graft court order lifting the government's sequestration on a disputed block of San Miguel Corp shares should benefit the country's largest food and beverage conglomerate, Citiseconline.com analyst Mark Alan Canizares said. The court decision is expected to generate further investor interest in San Miguel and, at the same time, allow the company to pursue growth and expansion without government intervention, he added. "The ownership dispute was a major overhang hounding the company. In fact, it has served as a major turnoff to investors," Canizares said, noting their negative perception of government inefficiency in handling business concerns. "With that issue almost out of the way, the company's management can now focus on growing the business." The Sandiganbayan nullified government's sequestration of a block of San Miguel shares for more than a decade. The case could now be elevated to the Supreme Court for a final ruling. The court favored Cojuangco's defense that most of the sequestration orders were not valid as only one PCGG commissioner signed and issued them, contrary to PCGG regulations that a writ of sequestration should have been issued on the authority of at least two commissioners. However, while the court lifted the writs of sequestration, it did not rule on the ownership of the shares, saying "... the Republic continues to hold a claim on the shares, which is yet to be resolved." Canizares, however, said it will be hard to ascertain if this "positive development" will hold for long since a separate ruling on the ownership of the disputed shares has yet to be made. San Miguel A closed today down 0.50 pesos at 53.50, while San Miguel B, which is available to foreign investors, ended flat at 61 pesos. (1 usd = 54.99 pesos) cecille.yap@afxasia.com |
| Philippine oil firms announce 0.25 pesos/liter fuel price hike |
MANILA (AFX-ASIA) - Petron Corp, Total (Philippines) Corp, Unoil Petroleum Philippines Inc said they will implement 0.25 pesos per liter pump price hikes for gasoline, diesel and kerosene products effective tomorrow, partly to reflect higher crude and foreign exchange costs. The price increase comes less than two weeks after the country's three biggest fuel sellers -- Petron, Pilipinas Shell Petroleum Corp and Caltex Philippines Inc -- implemented price reductions of 0.10 pesos per liter for kerosene and 0.20 pesos for gasoline. The suppliers had rolled back their pump prices several times, citing soft crude oil prices in the world market previously. However, Shell and Caltex have yet to issue statements on whether or not they will match their competitors' price increase. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Philippine court nullifies sequestration order on San Miguel shares |
MANILA (AFX-ASIA) - The Sandiganbayan anti-graft court has nullified the government's sequestration of a block of shares in San Miguel Corp, the ownership of which has been the subject of a court battle with businessman Eduardo Cojuangco Jr. "The writs of sequestration (on the San Miguel shares)...are hereby declared automatically lifted for being null and void," the court said in a Sept 17 order, which was released today. Cojuangco is chairman and chief executive of San Miguel Corp. The Presidential Commission on Good Government (PCGG), which is holding what has been disputed as ill-gotten government assets, had expected the Sandiganbayan to rule in favor of the government on the San Miguel shares. The government has been contesting ownership of a 47 pct block of shares in San Miguel, the country's biggest food and beverage conglomerate. It alleges that Cojuangco used levies collected from coconut farmers during the Marcos administration to buy the shares. The court favored Cojuangco's defense that most of the sequestration orders on the San Miguel shares were not valid since they were signed and issued by only one PCGG commissioner, which is contrary to PCGG's regulations that a writ of sequestration should have been issued upon the authority of at least two commissioners. The Sandiganbayan also dismissed as "misplaced" PCGG's argument that the Cojuangco group failed to show prima facie proof that the properties were legitimate acquisition. "It is a basic legal doctrine... that when a prima facie proof is required in the issuance of a writ, the party seeking such extraordinary writ must establish that it is entitled to it by complying strictly with the requirements for its issuance and not the party against whom the writ is being sought for," the court said. While the court lifted the writs of sequestration, it did not however rule on the ownership of the shares, saying "... the Republic continues to hold a claim on the shares which is yet to be resolved." "Any sale, pledge, mortgage or other disposition of any of the shares of the defendants Eduardo Cojuangco, et al shall be subject to the outcome of this case," the Sandiganbayan said. "In the the event of sale, mortgage or other disposition of the shares by...Cojuangco...the consideration therefor, whether in cash or in kind, shall be placed in escrow with Land Bank of the Philippines, subject to disposition only upon further orders of this court," the Sandiganbayan added. Cash dividends declared on the shares shall be placed in escrow with the state-owned LandBank, and will also be subject to disposition only upon further court orders, it said. Cojuangco earlier said he would make a final decision later this year whether to pursue his bid for the presidency in next year's elections. In July, the Sandiganbayan court rejected Cojuangco's claim over a controlling block of shares in United Coconut Planters Bank (UCPB), which administers a 27-pct block of the disputed interest in San Miguel. The court ruled that the so-called coco levies were public funds. The ruling was largely interpreted as a prelude to a bigger victory for the government involving control of San Miguel. Cojuangco then vowed he would "exhaust all means" to keep control of UCPB. He later appealed the Sandiganbayan ruling, saying it violated his right to due process. afxmanila@afxasia.com |
| Total Philippines announces 0.25 pesos/liter fuel price hike |
MANILA (AFX-ASIA) - Total (Philippines) Corp said it will implement 0.25 pesos per liter pump price hikes for gasoline, diesel and kerosene products effective tomorrow partly to reflect higher crude and foreign exchange costs. The price increase comes less than two weeks after the country's three biggest fuel sellers -- Petron Corp, Pilipinas Shell Petroleum Corp and Caltex Philippines Inc -- implemented price reductions of 0.10 pesos per liter for kerosene and 0.20 pesos for gasoline. The suppliers had rolled back their pump prices several times, citing soft crude oil prices in the world market previously. However, the three have yet to issue statements on whether or not they will match Total's price increase. (1 usd = 55.00 pesos) afxmanila@afxasia.com |
| Manila shares close mixed on consolidation; PLDT lifts key index |
MANILA (AFX-ASIA) - Share prices closed mixed in a directionless session as the market continued to consolidate, dealers said. Gains in Philippine Long Distance Telephone, though modest compared with previous ones, provided support to the key index, they added. The composite index closed up 0.73 points, or 0.06 pct, at 1,305.46 on volume of 959.62 mln shares valued at 366.06 mln pesos. It traded between 1, 303.48 and 1,310.90. In the broader market, losers led gainers 27 to 18, with 45 stocks unchanged. Dealers said they expect sentiment to be undermined by increased political tension after President Gloria Arroyo announced she will run for president in the May 2004 elections, reversing an earlier decision not to run. "The market is just consolidating around the 1,308 level. Investors are staying on the sidelines and will continue to be focused on specific (corporate) issues for the meantime while political concerns remain," Westlink Global Equities chairman Rommel Macapagal said. Investors may, however, take positions ahead of the the Oct 18 visit of US President George W Bush to Manila, he said. "President Arroyo's weekend announcement should have a good impact (on sentiment) as one uncertainty has been taken out of the picture," but the analyst added political bickering is expected to heat up ahead of the polls. Macapagal said the market was largely indifferent to Wall Street's gains last Friday. The slower-than-expected year-on-year inflation rate of 2.90 pct in September did not spur buying in the equities market, as economists noted that the rise in consumer prices have remained somewhat stable probably because demand has not picked up strongly. The National Statistics Office today said the inflation rate in the first nine months of the year averaged 3.0 pct year-on-year, below the government's full-year target of 4.5-5.5 pct. PLDT was top traded and up 5.00 pesos at 695.00 on volume of 229,590 shares. Its New York-listed American Depositary Receipts rose 0.10 usd to 12. 91 on Friday amid expectations of strong earnings on further gains in the wireless business. Macapagal said PLDT has his resistance level at 700 pesos. Ayala Land rose 0.10 to 6.30 on 6.20 mln shares, but parent Ayala Corp was unchanged at 4.80 on 4.28 mln shares. Equitable PCI Bank dropped 0.50 to 32.50 on 670,900 shares. Manila Electric B, open to foreigners, was up 0.25 at 23.75, while Meralco A was unchanged at 15.00. ABS-CBN Holdings Corp was up 0.50 at 26.00 on 451,700 shares. Metrobank was down 0.50 at 27.50. Jollibee Foods fell 0.25 to 17.00. The all-shares index was down 0.77 point at 798.42. The commercial-industrial index rose 1.82 to 1,922.34, while property gained 3.55 to 570.77. Mining was up 12.41 at 1,397.54. Oil was unchanged at 1.36. Banking and financial services shed 2.72 to 430.69. (1 usd = 54.97 pesos) edelacruz@afxasia.com |
| Philippines checking report of Malaysia kidnapping |
MANILA (AFX-ASIA) - Philippines authorities are checking reports that a group of Malaysians has been kidnapped on Borneo island, Filipino armed forces chief of staff General Narciso Abaya said. Abaya said he had no immediate information on whether Abu Sayyaf guerrillas based in the southern Philippines -- who launched a cross-border raid on the Malaysian resort island of Sipadan and kidnapped 21 people in April 2000 -- were behind the latest kidnap. "I will have this report checked," he told AFP by telephone from Hawaii, where he is making an official visit. "I will alert our forces in the area." The official Bernama news agency said in Kuala Lumpur that a group of Malaysians has been kidnapped in Sabah state on Borneo island, which adjoins Abu Sayyaf strongholds in the southern Philippines. It said Malaysian police chief Norian Mai would hold a news conference on the "kidnapping of a small group of Malaysians in Sabah" at noon. In the Sipadan kidnapping, the captives, half of them western tourists, were taken by boat across the sea border to Jolo island in the Philippines, where they were held for nearly a year before being released in several batches in exchange for millions of dollars in ransom. |
| Group of Malaysians kidnapped from resort island - police official |
KUALA LUMPUR (AFX_ASIA) - A group of Malaysians has been kidnapped from a holiday resort island in Sabah state off the island of Borneo, a police official said today. "Eight Malaysians were kidnapped from the Borneo Felda Resort, located on an island some 30 kilometers from Semporna island off Borneo," the official told the AFP news agency. Another resort island in Sabah state, Sipadan, was the site of the kidnapping of 21 people, mostly Western tourists, by the Philippine Muslim rebel group Abu Sayyaf in April 2000. The captives were taken by boat across the sea border to Jolo in the Philippines, where they were held for nearly a year before being released in several batches in exchange for millions of dollars in ransom. Malaysian police chief Norian Mai will hold a news conference on the "kidnapping of a small group of Malaysians in Sabah" at noon (0400 GMT), the official Bernama news agency said, without giving any further details. |
| Philippines' Globe says may increase planned bond issue size to 3.5 bln pesos |
MANILA (AFX-ASIA) - Globe Telecom Inc said it may increase the size of its planned bond offering to 3.50 bln pesos from 2.70 bln, depending on market conditions. The company earlier said it will use the proceeds of the bond issue for loan refinancing. "Should market conditions upon issuance prove beneficial, the company has included in its application to the (Securities and Exchange Commission) the option to raise the bond offer to 3.50 bln pesos," Globe told the stock exchange. Philippine Ratings Services Corp has assigned the highest rating of "Aaa" on the issue to signify that it carries the smallest degree of investment risk. Globe said it plans to launch the bonds next year to refinance a portion of a 220.00 mln usd senior notes issue, due in 2009. (1 usd =54.97 pesos) edelacruz@afxasia.com |
| DATAWATCH - Philippines' consumer demand seen remaining weak - GK Goh |
MANILA (AFX-ASIA) - A slowdown in the September inflation rate suggests consumer demand has remained weak, with manufacturers trying to keep prices steady in a relatively weak economy, GK Goh regional economist Song Seng Wun said. The Philippine consumer price index rose 2.90 pct year-on-year in September, a slowdown from the 3.00 pct rise posted in August. Month-on-month, inflation rate inched up 0.10 pct. "The Philippines is not alone. Everywhere else in the region, we've seen relatively stable prices given the uneven recovery and the lack of pricing power (among manufacturers)," Song said. On a more positive note, the stable CPI has given the central bank continued flexibility in its macroeconomic policies, he added. The inflation rate averaged 3.00 pct in the first three quarters of the year. Song noted there has been no pressure for prices to go up dramatically as consumer demand remains weaker than usual. For instance, slower rates were recorded in the indices of food, beverage and tobacco (FBT) and housing and repairs (HR). For food alone, which makes up the bulk of the CPI basket, inflation fell to 1.40 pct in September from 1. 50 pct the month before, as prices of rice and vegetables dropped due to sufficient supplies. Inflation for clothing, services and miscellaneous items has remained steady from their August levels of 2.40, 5.90 and 1.90 pct, respectively. Only the fuel, light and water (FLW) component rose to 9.60 pct from 9.50 pct year-on-year, due to higher oil prices and a weaker peso in September. "It's a function of weak demand... I suspect that given all the turmoils the Philippines have had recently, we would likely see growth to remain sluggish," Song, who is projecting GDP growth of only 3.00 pct in the second half, said. While manufacturing in terms of output and value have been on a slight uptick in previous months, these do not translate into higher prices since "manufacturers cannot pass on their higher costs on concerns consumers may stop buying," he said. The latest data showed manufacturing output in July rising 4.40 year-on-year in volume terms, while sales increased 0.60 pct, also in volume terms. In value terms, manufacturing output in July rose 12.90 pct year-on-year, while sales increased 9.40 pct year-on-year. (1 usd = 54.976 pesos) cecille.yap@afxasia.com |
| Philippines inflation to remain stable at 3.0 pct yr-on-yr in Q4 - Neri |
MANILA (AFX-ASIA) - Economic Planning Secretary Romulo Neri said the country's inflation rate is expected to remain stable at around 3.0 pct year-on-year in the last quarter of the year. "Barring unexpected shocks in the coming months, we expect inflation to remain stable at around 3.0 pct on account of improved unhusked rice and corn output and stability in the currency market," he said in a statement. However, he expects inflationary pressure to arise from higher cost of crude oil following a cut in the oil output of the Organization of Petroleum Exporting Countries. Inflation in September slowed to 2.9 pct year-on-year from 3.0 pct in August, and to 0.10 pct month-on-month from 0.20 pct in the previous month, the the National Statistics Office (NSO) today said. It averaged 3.0 pct in the first three quarters of the year. Economists polled by AFX-Asia expected the CPI to have risen by 3.00-3.50 pct year-on-year in September due to higher food and oil prices. It was also below the central bank's projection of 3.00 pct year-on-year and the National Economic Development Authority' 3.00-3.50 pct range. edelacruz@afxasia.com |
| Philippine Banco De Oro says UBS soliciting interest for 100-mln usd notes |
MANILA (AFX-ASIA) - Banco De Oro Universal Bank said UBS Investment Bank, its bond bookrunner, has begun to solicit investor interest for its proposed 100-mln usd bond issue. Banco De Oro said the 100-mln usd senior bond issue, which will be listed on the Singapore Exchange, will have a maturity of five years with 3.0-year put option to the bank at par value. Minimum placement is set at 50,000 usd. The issue date is targeted for Oct 13 to 17. The central bank's Monetary Board has recently approved the bank's application to increase the size of its five-year tier 2 capital notes issue to 130 mln usd from 100 mln, central bank deputy governor Alberto Reyes said. The issue has met warm investor reception, prompting the bank to increase the size, he said. (1 usd = 54.968 pesos) cecille.yap@afxasia.com |
| Philippines Sept CPI up 2.90 pct yr-on-yr, 0.10 pct mth-on-mth |
MANILA (AFX-ASIA) - The consumer price index rose 2.9 pct year-on-year, slowing from 3.0 pct in August, the National Statistics Office (NSO) said. Month-on-month, the CPI inched up 0.10 pct versus the 0.20 rise in the previous month. The inflation rate averaged 3.0 pct in the first three quarters of the year. Economists polled by AFX-Asia expected the CPI to have risen by 3.00-3.50 pct year-on-year in September due to higher food and oil prices. The NSO said slower rates were recorded in the indices of food, beverage and tobacco (FBT), and housing and repairs (H&R). Inflation a year ago was 2. 9 pct year-on-year. The benign inflation environment and outlook have given the central bank room to maintain its "accommodative" monetary policy, despite the peso's volatility. Economic Planning Secretary Romulo Neri sees the CPI remaining broadly stable for the rest of 2003, barring any unexpected shocks. He expects the full-year rate at the low-end of his 3.00-3.50 pct forecast, compared with the official target of 4.50-5.50 pct. The inflation rate for the FBT and H&R groups slowed to 1.4 pct and 3.0 respectively in September from 1.5 and 3.2 in August. For food alone, inflation declined to 1.4 pct in September from 1.5 pct the month before as prices of rice and vegetables dropped due to sufficient supply. On the one hand, the inflation rate for the fuel, light and water component went up to 9.6 pct from 9.5 pct year-on-year. Inflation for clothing, services and miscellaneous remained at August levels of 2.4, 5.9 and 1.9 pct, respectively. edelacruz@afxasia.com |
| Philippines' LandBank 8 mths net profit 1.45 bln pesos, may exceed FY target |
MANILA (AFX-ASIA) - State-owned Land Bank of the Philippines said it booked a net profit of 1.45 bln pesos in the eight months to August, boosting its chances of hitting or even surpassing its full-year target of 1.80 bln. "If we hit 150 mln pesos in September, then that's 1.6 bln pesos (for the first nine months of the year) versus our target. We'll probably hit or exceed our target of 1.8 bln pesos," LandBank president Margarito Teves told reporters in a briefing. He said earnings improved on the back of profitable investments and prudent spending. At end-August, however, LandBank's ratio of non-performing loans to total loans hit 17.2 pct, up from 16.45 pct as of June 19. Teves attributed the rise in the NPL ratio to the drop in outstanding loans. (1 usd = 54.92 pesos) afxmanila@afxasia.com |
| Philippine central bank approves Banco de Oro notes issue hike to 130 mln usd |
MANILA (AFX-ASIA) - The central bank's Monetary Board has approved the application of Banco de Oro Universal Bank to increase the size of its five-year tier 2 capital notes issue to 130 mln usd from 100 mln, central bank deputy governor Alberto Reyes said. The issue has met warm investor reception, prompting the bank to increase the size. The bank earlier said the notes will be issued at the appropriate time depending on market conditions. afxmanila@afxasia.com |
| Philippines' Meralco may hike 2003 capex to 6.0 bln pesos - report |
MANILA (AFX-ASIA) - Manila Electric Co is considering increasing its capital expenditures budget for 2003 to 6.0 bln pesos from 5.5 bln and looking at an annual 6.5-bln peso budget from next year, the Philippine Star quoted company president Jesus Francisco as saying. "Our budget for 2003 was originally at 6.5 bln pesos. But we recently reduced it to 5.5 bln. We are now looking at the possibility of stretching it to 6.0 bln by the end of the year," Francisco said. He said the increase will depend on the number of Meralco customers that will avail themselves of the Supreme Court-ordered refund of overcharges dating back to 1994. Meralco earlier estimated the refund to cost it 30.5 bln pesos. (1 usd = 54.92 pesos) afxmanila@afxasia.com |
| Philippine govt end-July total debt 3.14 trln pesos vs 2.96 trln in June |
MANILA (AFX-ASIA) - The national government's total outstanding debt rose to 3.14 trln pesos as of end-July from 2.96 trln in June, official figures show. Fresh foreign and local borrowings to finance the budget deficit bloated the government's debt stock. Domestic borrowings stood at 1.65 trln, up from 1.54 trln in June, while foreign debts totalled 1.49 trln against the previous month's level of 1.43 trln. (1 usd = 54.92 pesos) afxmanila@afxasia.com |
| Arroyo announces Philippines re-election bid |
MANILA (AFX-ASIA) - Philippine leader Gloria Arroyo announced Saturday that she will run for president in 2004 elections, reversing an earlier pledge not to run. "I will offer myself to the electorate in 2004," she told a crowd of 50, 000 in her home province of Pampanga. |
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