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Friday, September 05, 2003
Forex
- Philippine peso ends slightly weaker on domestic concerns
Philippine
end-Aug forex reserves 16.17 bln usd vs 16.10 bln in July
Philippines'
PCI Leasing buys back 15.00 mln shares Sept 4
Philippine-based
foreign bankers' group expresses support for Buenaventura
Philippines
still vulnerable to shocks and contagion - Lehman Brothers
Philippines
H1 ODA disbursements 618.00 mln usd vs 485.00 mln - NEDA
Philippine
Grand Plaza Hotel says directors approve share buyback program
Philippine
economic and corporate news summary JJS20
Manila
shares close mixed on select buying amid political concerns
Philippine
banking sector outlook revised to stable from negative-S&P
Philippines'
Buenaventura asks Court of Appeals to reconsider suspension orde
Philippine
National Bank raises 51.00 mln pesos from asset sale
DATAWATCH
- Slower Philippine CPI suggests weak domestic demand - GK Goh
Slower
Philippine Aug CPI allows accommodative monetary policy - Buenaventura
STOCK
ALERT-Singapore's AP Oil sharply up on winning 23.80 mln sgd contracts
Philippine
2003 CPI rise seen at low-end of 3.00-3.50 pct forecast-Neri
Forex
-Philippine peso weaker early on renewed corporate demand for US dollars
Philippine
Aug CPI up 3.00 pct yr-on-yr, 0.20 pct mth-on-mth
Philippine SEC
approves Transpacific Broadcast IPO
Philippines'
National Steel plant attracts foreign groups - report
FedEx
considers relocating Philippines regional hub - report
Philippines
may issue Islamic bonds to raise 200-300 mln usd - report
Thursday, September 04, 2003
Philippine
central bank to borrow 500 mln usd - Buenaventura
Manila
shares close down on profit-taking; PLDT leads decline
Manila
shares down on profit-taking due to weak July exports;PLDT drops
Philippine
officials taking steps to head off new plot to oust Arroyo
DATAWATCH
- Philippine exports recovery likely to be delayed - BPI
Forex
- Philippine peso firmer in absence of demand for US dollars
Philippine
rating outlooks maintained by Moody's despite political pressures
Wednesday, September 03, 2003
Philippine
Meralco says may borrow 200 mln usd in H2 to cover cash shortfall
Philippine
BIR Aug tax collections 37.90 bln pesos vs 38.00 bln target
Philippine
San Miguel CEO says govt should lessen interference in business
Philippine
Treasury sets Sept 8-9 auctions for 5-yr, 7-yr notes
Philippines'
PNOC in talks with Japanese investors on LNG facility
Philippine
San Miguel says likely to meet 7.00 bln peso FY profit goal
Manila
shares close sharply higher on Wall St bounce; PLDT leads gains
Philippines'
PCI Leasing buys back 77,000 shares at 1.30 pesos each
Philippines'
Ayala Land to list 16.39 mln common shares tomorrow - PSE
Philippine
military denies rumours of new coup plot
Forex
- Philippine peso extends gains on lack of dollar demand
STOCKWATCH
- Philippines' PLDT extends gains on sharp ADR rise, valuation
Philippine
Aboitiz Equity files 613-mln peso suit against Vivant
Philippines'
Ionics H1 net loss 894.55 mln pesos
Philippine
Supreme Court stops changes in mobile phone billings - report
SingTel,
Ayala continue talks to buy Globe Telecom stake from Deutsche -report
| Forex - Philippine peso ends slightly weaker on domestic concerns |
MANILA (AFX-ASIA) - The peso ended weaker, but off lows, as reports of a new plot to oust President Gloria Arroyo prompted investors to begin hedging on the US dollar anew, dealers said. The peso closed at 55.020 after trading between 54.980-55.130 on volume of 180.90 mln usd. It closed at 54.950 yesterday. Dealers said corporate demand for the US unit has resurfaced ahead of the weekend. The peso also tracked other regional currencies which were softer across the board, they added. "Nobody wants to be short of the dollar ahead of a weekend especially on renewed concerns over reported destabilization efforts against the government, " a dealer said. Arroyo and her aides have said military officials are being bribed to join a new coup plot. However, they said preemptive steps are being taken to head off the recruitment. More than 300 soldiers took part in a failed military mutiny at the Makati financial district on July 27. cecille.yap@afxasia.com |
| Philippine end-Aug forex reserves 16.17 bln usd vs 16.10 bln in July |
MANILA (AFX-ASIA) - The country's gross international reserves (GIR) stood at a preliminary 16.17 bln usd as of end-August compared with 16.10 bln at end-July, central bank governor Rafael Buenaventura said. He gave no other details. The central bank aims to keep the GIR within 14.00-15.00 bln usd this year. afxmanila@afxasia.com |
| Philippines' PCI Leasing buys back 15.00 mln shares Sept 4 |
MANILA (AFX-ASIA) - PCI Leasing said it bought back from the market a total of 15.00 mln shares on Sept 4 under its share buyback program. The company, in a disclosure to the stock exchange, said the shares were bought at 1.30 pesos each for a total of 19.50 mln pesos. PCI Leasing closed up 0.04 pesos at 1.36 pesos. (1 usd = 55.075 pesos) afxmanila@afxasia.com |
| Philippine-based foreign bankers' group expresses support for Buenaventura |
MANILA (AFX-ASIA) - The Offshore Bankers Association of the Philippines has expressed "deep concern" over the Court of Appeals' decision to suspend central bank governor Rafael Buenaventura and four officials over the alleged hasty closure of Urban Bank in 2000. "We believe this ruling could seriously undermine the central bank's effectiveness in performing its mandate to supervise and to ensure the safety and soundness of the country's banking system," the association, which represents international bankers based in the Philippines, said in a statement. The group said its members "believe Buenaventura had acted in the best interest of bank depositors to maintain public confidence in the financial system." The appellate court has ordered a one-year suspension of Buenaventura and several central bank officials, but the officials continue to carry out their functions since the decision is not yet final and executory. The central bank officials have appealed the decision. afxmanila@afxasia.com |
| Philippines still vulnerable to shocks and contagion - Lehman Brothers |
MANILA (AFX-ASIA) - The Philippines remains vulnerable to financial shocks and contagion due to its huge debts, US investment bank Lehman Brothers said today. It said the Philippines measured 31 on a recent study of 15 developing countries using a Lehman proprietary early warning system to identify the likelihood of those headed for financial crises. A score of 75 or more means the country is vulnerable to financial crisis. This "suggests fairly low susceptibility to financial crisis. However, its economy is structurally weak and vulnerable to shocks and contagion," Lehman Brothers said in a statement. The index shot up to more than 75 for the Philippines in 2001 after the Sept 11, 2001 attacks in the US and the Argentine financial crisis, it added. The Philippines, along with Thailand, South Korea, Indonesia and Malaysia, suffered a meltdown during the 1997-1998 financial crisis. "To lower its susceptibility, the country needs to persevere in reducing its large fiscal deficit and trim public and external debt, which are currently above 70 pct of GDP (gross domestic product)," Lehman Brothers said. "A key challenge for the Philippines is to not drop the ball on economic reform in the lead-up to the presidential elections next year," Lehman Brothers senior economist for Asia Rob Subbaraman said. Subbaraman had developed the index, called "Damocles". It measures 10 variables including the ratios of foreign reserves to imports, as well as short-term external debt, external debt to GDP, short-term external debt to exports, current account to GDP and domestic private credit to GDP. The other factors are foreign reserves, real short-term interest rate, stock market index and real trade-weighted exchange rate. Lehman Brothers said Asia overall has notably reduced the risk of crisis across the region since the meltdown six years ago. "There are growing signs that global capital is now returning to Asia," and the region "is in a much better condition to weather future financial storms," it added. |
| Philippines H1 ODA disbursements 618.00 mln usd vs 485.00 mln - NEDA |
MANILA (AFX-ASIA) - The government disbursed a total of 618.00 mln usd in Official Development Assistance (ODA) funds in the first half to June, up 28. 00 pct from the year-earlier 485.00 mln, the National Economic and Development Authority (NEDA) said. Disbursements of ODA funds extended by Japan Bank for International Cooperation, Asian Development Bank and the World Bank hit 565.00 mln usd in the first half, exceeding the target of 458.00 mln, the NEDA said in a statement. Disbursements for World Bank-assisted projects rose to 105.00 mln usd from 80.00 mln the previous year, it said. The agency said it has recommended that the government focus on disbursing more funds from ODA from ADB, whose loan commitments to the Philippines total 1.60 bln usd. It noted that ADB disbursements during the period were only 43.00 pct of World Bank disbursements . (1 usd = 55.07 pesos) afxmanila@afxasia.com |
| Philippine Grand Plaza Hotel says directors approve share buyback program |
MANILA (AFX-ASIA) - Grand Plaza Hotel Corp said its board of directors has approved a share buyback program to be offered to shareholders on record as of Sept 30. The company said the buyback will be funded with its unrestricted retained earnings. It will offer to purchase one share out of every 20 shares held by each stockholder as of the record date. The buyback price is at 50 pesos apiece. "The buyback offer is a one-time offer and will not be extendible or re-offered after the expiration of the offer period," Grand Plaza said in a disclosure to the stock exchange. Meanwhile, the company said it has renewed for another three years its lease contract with the Philippine Amusement and Gaming Corp. Grand Plaza Hotel was untraded after closing previously at 32 pesos per share. (1 usd = 55.075 pesos) afxmanila@afxasia.com |
| Philippine economic and corporate news summary JJS20 |
BEIJING (AFX-ASIA) - A summary of Philippine economic and corporate news at 0500 GMT -Philippine CPI 'to remain broadly stable' for rest of 2003 - Neri -2003 CPI rise seen at low-end of 3.00-3.50 pct forecast - Neri -Aug CPI up 3.00 pct yr-on-yr, 0.20 pct mth-on-mth -Philippine banking sector outlook revised to stable from negative - S&P -Philippines' Buenaventura asks Court of Appeals to reconsider suspension order -Slower Philippine Aug CPI allows accommodative monetary policy - Buenaventura -Central Bank says not planning to intervene in forex market today -Central Bank says to monitor dollar sales, purchases in market -Philippine National Bank raises 51.00 mln pesos from asset sale -Philippine SEC approves Transpacific Broadcast IPO ivy.cheng@xfn.com |
| Manila shares close mixed on select buying amid political concerns |
MANILA (AFX-ASIA) - Share prices closed mixed but the key index ended higher on select buying in blue chips led by Philippine Long Distance Telephone, dealers said. They added that lingering political and security concerns amid persistent rumors of a coup plot against President Gloria Arroyo kept investors cautious ahead of the weekend. The composite index closed up 6.71 points, or 0.54 pct, at 1,240.58 on volume of 130.66 mln shares valued at 349.78 mln pesos. It traded between 1, 233.97 and 1,241.86. There were 25 losers and 25 gainers, with 34 stocks unchanged. The weak peso, which averaged 55.073 to the US dollar by noon on volume of 131.90 mln usd, also undermined sentiment, dealers said. It closed at 54.950 yesterday. "There's select buying in blue chips. There are some sectors of the economy that are doing well and there are companies within those sectors that are doing very well, like PLDT," AB Capital Securities research director Jose Vistan Jr said. "The market just bounced back from recent weakness, but we saw a very low volume. The market is closely watching developments on the political front," ATR-Kim Eng research head Andrew Long said. Analysts said the slower Philippine inflation rate of 3.00 pct year-on-year in August compared with 3.40 pct in July may have prompted investors to buy select issues. PLDT was top traded, up 10.00 pesos at 595 on volume of 182,300 shares, after its American Depositary Receipts gained 0.04 usd in New York last night to 10.52. Manila Electric B, open to foreign investors, rose 20.50 to 356,300 shares, while A rose 0.25 to 13.00 on 284,100 shares. Ayala Corp was up 0.05 at 4.40 on 1.50 mln shares, while unit Ayala Land gained 0.10 to 6.30. Jollibee Foods fell 0.25 to 17.00. The all-shares index was up 3.16 points at 796.82. The commercial-industrial index rose 9.11 to 1,811.47. Property gained 2.76 to 541.03, while mining was up 3.66 at 1,239.80. Oil dropped 0.01 to 1.40. Banking and financial services shed 2.07 to 427.23. ATR-Kim Eng's Long said the market may move sideways on Monday with a possible upside if no unfortunate events happen during the weekend. AB Capital's Vistan said the local market may take its cue on Monday from the performance of offshore markets, mainly the US, before the weekend. edelacruz@afxasia.com |
| Philippine banking sector outlook revised to stable from negative-S&P |
(Updating with additional comments from S&P credit analyst) MANILA (AFX-ASIA) - Standard & Poor's Rating Services said it has revised the outlook for the Philippine banking sector to "stable" from "negative." "The change acknowledges the stabilizing of the bank sector in terms of asset quality that is evident from the tapering growth rates in nonperforming assets (NPAs)," S&P said in a statement. It also noted the improvement in earnings of Philippine banks as another positive indicator for the industry. S&P said banks have managed their funding costs and carrying costs of their non-performing assets more effectively given the low interest rate environment. "Coupled with the strong gains from their treasury activities, profitability has improved for the banks, alleviating some of the pressures on loan-loss provisioning, although such treasury gains are not considered to be recurring in nature," S&P said. S&P credit analyst Weekiat Sim said the local banking industry continues to face some challenges since the level of idle assets in the system remains high by international standards. "Given that some key legislation such as the Special Purpose Vehicle Act of 2002 are now finally in place, the industry needs to push ahead with more reforms, to hasten the progress towards the rectification of its asset quality problems," Sim said. S&P said the benefits of these reforms will be reaped over the medium-term on expectation of improved financial profiles of banks and credit quality. cecille.yap@afxasia.com |
| Philippines' Buenaventura asks Court of Appeals to reconsider suspension order |
MANILA (AFX-ASIA) - Central bank governor Rafael Buenaventura has asked the Court of Appeals to reconsider its suspension order on him and four senior fellow officials for the alleged "abrupt" closure of Urban Bank in 2000. In a statement, Buenaventura said the management and board of directors of the Urban Bank voluntarily declared a bank holiday on April 25, 2000. Citing the legal opinion of central bank general counsel Juan de Zuniga Jr, the only respondent the appellate court cleared, Buenaventura said the bank's declaration of a holiday was "an admission ... it could no longer pay its obligations as they fall due in the ordinary course of business." Section 30 of the Philippine central bank charter authorizes the Monetary Board, under such circumstances, to put the bank under the receivership of the Philippine Deposit Insurance Corp. Buenaventura said the Supreme Court ruling in the Banco Filipino case in the 1980s, which the Court of Appeals invoked in making its decision, is not a "standard" to judge the central bank action on Urban Bank. He said Banco Filipino was closed as it was insolvent, while Urban Bank admitted to being unable to meet its obligations to depositors and clients. "While the process of determining whether a bank that is still doing business with the public is really insolvent or not takes time, the fact that it closes its doors to depositors and clients ... is a clear admission it could not meet obligations," Buenaventura said. He added the Monetary Board had "a bad experience" of previous closures when it waited before putting a bank on holiday under receivership. "Assets were stolen, records were destroyed, all to the detriment of the bank's depositors and debtors," Buenaventura said. He added that his exoneration by the Office of the Ombudsman in July 2002 was "final and unappealable" under the law. As such, he said the court had no jurisdiction to entertain the petition that former Urban Bank president Teodoro Borlongan filed. Buenaventura also claimed he was singled out from the seven-man Monetary Board that acted as a collegial body to place the bank under receivership. He said this was a violation of the equal protection clause in the Constitution. Buenaventura said he will continue to do his duties at th central bank as the court decision is not yet final and executory. afxmanila@afxasia.com |
| Philippine National Bank raises 51.00 mln pesos from asset sale |
MANILA (AFX-ASIA) - The Philippine National Bank said it sold 51 mln pesos worth of its foreclosed assets on Aug 28, marking the start of a series of public auctions to dispose its billion pesos worth of acquired properties. The bank said it is aiming to raise 2.50 bln pesos from sales of acquired assets this year. It is being assisted by CB Richard Ellis, as auction consultant/manager, in disposing of the foreclosed properties. PNB said the next auction is scheduled in mid-October. PNB president Lorenzo Tan earlier said the bank may book a net profit of between 29-100 mln pesos this year on the back of asset sales and increased fee-based gains and deposits. The bank, which is equally owned by the government and businessman Lucio Tan, incurred a net loss of 1.90 bln pesos in 2002. (1 usd = 55.082 pesos) edelacruz@afxasia.com |
| DATAWATCH - Slower Philippine CPI suggests weak domestic demand - GK Goh |
MANILA (AFX-ASIA) - A slower inflation in August suggests domestic demand remains weak, although it may not be long before prices of goods and services begin to rise sharply on higher fuel costs and a weaker peso, GK Goh regional economist Song Seng Wun said. The Consumer Price Index (CPI) rose 3.00 pct year-on-year in August, slower than the revised 3.40 pct in July. The August inflation rate suggests the central bank will continue to have sufficient flexibility with regards to its monetary policy, although the peso's weakness remains a serious concern. "There has been no pressure on prices in the absence of domestic demand and the situation is the same in most countries in the region. However, we expect pressure to start building up due to rising fuel prices and, lately, the weaker peso," Song said. He said higher crude oil costs will likely impact on prices from this month. Economic planning secretary Romulo Neri said the September inflation rate is expected to come in at 3.00-3.20 pct year-on-year on pressure from higher oil prices. Crude oil prices rose to 27.66 usd per barrel in August from 26.72 in July, which, Neri said, "will hit the local market in September." Song said the impact of a weaker peso, which fell to near the historic low of 55.750 to the US dollar in previous weeks, on prices may be felt in roughly six to nine months. "What we'll see more is the impact of higher oil prices on prices of goods and services," Song said. The NSO attributed the deceleration in year-on-year inflation to the slower price increases in the food, beverages and tobacco (FBT) group. A slowing of prices of fuel, light and water (FLW), as well as services, also contributed to the decline. On a month-on-month basis, inflation was steady from July at 0.20 pct as the upward adjustments in the prices of FBT and FLW offset the slower rises in the prices of clothing, housing and repairs and service items. Song said he expects an inflation rate of 3.0-3.5 pct over the next five months, although he still expects the full-year CPI average to be below the government target of 4.5-5.5 pct. Song's projection is for the CPI to come in at 3.2 pct for the full-year. cecille.yap@afxasia.com |
| Slower Philippine Aug CPI allows accommodative monetary policy - Buenaventura |
MANILA (AFX-ASIA) - Central bank governor Rafael Buenaventura said the slow rise in the inflation rate in August offers authorities room to maintain the central bank's "accommodative" monetary policy, despite the peso's volatility. "It's good and within expectations. It gives us an assurance to meet our inflation target," he said. "It reinforces our accommodative policy, given the expected benign inflation (this year)." The government is maintaining its full-year inflation target at 4.5-5.5 pct. In the first eight months of the year, the rate averaged 3.0 pct. The CPI rose 3.0 pct year-on-year in August after increasing 3.4 pct in July, the National Statistics Office said today. However, the peso's continuing volatility is a concern, Buenaventura said, adding that the pressure on the local unit is due to "non-economic factors." He said the market is jittery about persistent rumors of a plot to oust President Gloria Arroyo. After having quelled the July 27 military mutiny, Arroyo and her aides admit that destabilization efforts persist. Earlier, they said military personnel were being bribed to join a new coup plot, but preemptive steps had being taken to head off the threat. Buenaventura said the central bank has no plans to intervene to prop up the peso in the market today. However, the central bank will continue to monitor sales and purchases of US dollars on the spot market, he added. At 10.31 am, the peso averaged 55.081 to the dollar after closing yesterday at 54.950. afxmanila@afxasia.com |
| STOCK ALERT-Singapore's AP Oil sharply up on winning 23.80 mln sgd contracts |
SINGAPORE (AFX-ASIA) - AP Oil International Ltd shares were sharply higher in midmorning trade after the company said it won contracts to supply oil products to two state-owned oil companies in China and the Philippines valued at 23.80 mln sgd. AP Oil was up 0.045 sgd or 11.39 pct at 0.44 sgd off an earlier high of 0. 45 on volume of 10.17 mln shares. "Barring unforeseen circumstances, we expect these contracts to contribute positively to our turnover and bottomline in the second half of 2003," AP Oil chairman and managing director Ho Leng Woon said. (1 usd = 1.75 sgd) denise.wee@afxasia.com |
| Philippine 2003 CPI rise seen at low-end of 3.00-3.50 pct forecast-Neri |
MANILA (AFX-ASIA) - Economic Planning Secretary Romulo Neri said he expects the rise in the Consumer Price Index (CPI) to remain "broadly stable" for the rest of 2003, thereby putting the full-year inflation rate at the low-end of his 3.00-3.50 pct forecast. The government is sticking to its full-year inflation target of 4.50-5.50 pct. However, the inflation rate in September is expected to come in at 3.0-3. 2 pct year-on-year due to pressure from higher oil prices, he said. Neri noted that crude oil prices rose to 27.660 usd per barrel in August from 26.720 in July and this "will hit the local market in September." "Barring unexpected shocks, inflationary pressure is likely to ebb towards the end of the year," Neri said. The CPI rose 3.00 pct year-on-year in August, slower than the revised 3. 40 pct rise in July, the National Statistics Office said. The July year-on-year inflation rate was revised from 3.30 pct. The August figure came out at the lower end of market expectations. Economists AFX-Asia polled had expected the year-on-year inflation rate in August to come in at 3.00-3.20 pct on the impact of a weaker peso and higher oil prices. On a month-on-month basis, CPI rose 0.20 pct in August, unchanged from a revised 0.20 pct in July. The rise for July was earlier reported to be 0.10 pct. Analysts had expected prices to rise 0.40-0.50 pct month-on-month in August. The latest statistics put the average inflation rate for the January-August period at 3.00 pct, still below the government's full-year target. The National Economic and Development Authority had forecast the CPI to come in at 3.20 pct in August, while the central bank has predicted an increase of 2.80-3.10 pct. Neri noted that CPI decelerated in August due to slightly slower increase in the prices of clothing, housing and repairs, and services. "The deceleration in the prices of clothing, housing and repairs, and services partly offset the accelerated month-on-month increases in food and light," he said in a statement. "In general, food prices pushed up inflation, while non-food prices, except electricity, pulled down inflation for the month." He noted that prices of most food stocks, such as rice, corn, dairy items, fish, and meat increased, while those of fruits and vegetables declined from the previous month. He said the rise in electricity prices was felt mainly in areas outside metropolitan Manila as a result of hikes the Energy Regulatory Commission granted. afxmanila@afxasia.com |
| Forex -Philippine peso weaker early on renewed corporate demand for US dollars |
MANILA (AFX-ASIA) - The Philippine peso eased further in early trade on renewed corporate demand for US dollars, dealers said. They added the peso was also tracking other regional currencies which were softer against the US unit across the board. At 9.58 am, the peso averaged 55.064 after trading between 55.030-55.090 on volume of 34.50 mln usd so far. It closed at 54.950 yesterday. Dealers said reports of another plot to oust President Gloria Arroyo from power as well as weaker exports for July may have prompted corporate clients to scramble for the US dollar anew. "Demand from corporate clients have increased since yesterday. It could be that they are taking advantage of the current cheap rate or that rumors of another destabilization plot are triggering some panic-buying," a local bank dealer said. Another dealer said the US dollar was stronger against most currencies in the region in early trade and thus had also caused weakness in the peso. Arroyo and her aides have said military officials are being bribed to join a new coup plot. However, they said preemptive steps are being taken to head off the recruitment. More than 300 soldiers took part in a failed military mutiny at the Makati financial district on July 27. Meanwhile, the National Statistics Office reported exports for July dropped 7.90 pct year-on-year to 2.97 bln usd from a 4.20 pct growth in June. Lower expo rt receipts could put a strain on the country's foreign exchange reserves, dealers said. They see the peso trading between 55.000-55.200 today. cecille.yap@afxasia.com |
| Philippine Aug CPI up 3.00 pct yr-on-yr, 0.20 pct mth-on-mth |
MANILA (AFX-ASIA) - The Consumer Price Index (CPI) rose 3.00 pct year-on-year in August, slower than the revised 3.40 pct rise in July, the National Statistics Office said. The July year-on-year inflation rate was revised from 3.30 pct. The August figure came out at the lower end of market expectations as economists AFX-Asia polled had forecast a range of 3.00-3.20 pct on the impact of a weaker peso and higher oil prices. Month-on-month, CPI rose 0.20 pct in August, steady versus a revised 0.20 pct in July. The July rise was earlier reported to be 0.10 pct. Analysts had expected August prices month-on-month to rise 0.40-0.50 pct. The latest statistics put the average inflation rate for the January-August period at 3.00 pct, still below the 4.50-5.50 pct average full-year target of the government. The National Economic and Development Authority had forecast the CPI to rise 3.20 pct in August and the central bank had predicted an increase of 2. 80-3.10 pct. The NSO attributed the deceleration in year-on-year inflation to the slower price increases in the food, beverages and tobacco (FBT) group. A slowing of prices of fuel, light and water (FLW), as well as services, also contributed to the decline. Month-on-month inflation was steady from July at 0.2 pct since the upward adjustments in the prices of FBT and FLW offset the slower movements in the prices of clothing, housing and repairs and service items. The inflation rate for the FBT group slowed to 1.5 pct year-on-year in August from 2.2 pct in July. For food alone, the rate decelerated to 1.5 pct from 2.1 pct. The inflation rate for the FLW component slowed to 9.5 pct year-on-year from 9.9 pct and that for services decelerated to 5.8 pct from 5.9 pct in July. However, inflation was up 3.2 pct year-on-year from 3.0 pct for the housing and repairs group and 2.4 pct from 2.3 pct for clothing. Inflation for miscellaneous items was stable at 1.9 pct year-on-year, the NSO said. afxmanila@afxasia.com |
| Philippine SEC approves Transpacific Broadcast IPO |
MANILA (AFX-ASIA) - The Securities and Exchange Commission said it has approved the registration of satellite service provider Transpacific Broadcast Group International Inc's planned initial public offering. The company earlier said it plans to conduct an IPO for at least 33 pct of its common stock. It estimated to raise 77.25 mln to 99.32 mln pesos from the offering, which may be completed before the year ends. The company, which began commercial operations in 1996, has a licence to operate a satellite earth station for use in commercial telecommunications and television broadcasting operations. But it said its revenues come mostly from Internet and other services provided to schools, hospitals, private corporations and government agencies. (1 usd = 54.95 pesos) afxmanila@afxasia.com |
| Philippines' National Steel plant attracts foreign groups - report |
MANILA (AFX-ASIA) - National Steel Corp's (NSC) plant at Iligan in the south of the country has attracted several foreign groups, including two big steel trading companies, the Philippine Daily Inquirer reported, citing an unidentified official of one of NSC's creditor banks. Brazilian steel trader Duferco and Global Infrastructure Holdings Ltd, the parent of the Ispat group's Indian steel operations, have expressed interest to lease the Iligan plant, the source told the paper. There is a third group interested in the plant, but the source did not identify it, the report said. NSC creditors and shareholders earlier agreed on a rehabilitation program, under which the cash-strapped company's assets will be transferred to a newly incorporated special purpose vehicle for disposal. afxmanila@afxasia.com |
MANILA (AFX-ASIA) - Federal Express is looking into the possibility of transferring its hub from the Subic Bay Freeport Zone to either the Clark Special Economic Zone in Pampanga or China by 2008, BusinessWorld reported. Citing the president and chief operating officer local franchisee Airfreight 2100 Inc, Angelito Alvarez, the paper said He said afxmanila@afxasia.com |
| Philippines may issue Islamic bonds to raise 200-300 mln usd - report |
MANILA (AFX-ASIA) - The Philippines Government may consider entering the Islamic bond market to raise 200-300 mln usd, local newspaper Malaya reported, citing an unidentified source. The daily said a team comprising National Treasurer Sergio Edeza and central bank managing director Diwa Guinigundo flew to the Middle East late last month for a Deutsche Bank-organized road show. However, the government has no definite plan yet, Edeza was quoted as saying, adding that an Islamic bond issue is an option being considered to raise additional funds for the government. The government has programmed a budget deficit of 202 bln pesos for this year. (1 usd = 54.95 pesos) afxmanila@afxasia.com |
| Philippine central bank to borrow 500 mln usd - Buenaventura |
MANILA (AFX-ASIA) - The central bank will borrow up to 500 mln usd and expects to finalize the loan terms tomorrow, central bank governor Rafael Buenaventura said. "It looks like 500 mln usd. We're going to finalize the terms tomorrow," he told reporters, but gave no specific details. Earlier, he said the planned borrowing would be used to beef up the country's international reserves, which stood at 16.10 bln usd as of end-July. The central bank also needs up to 115 mln usd to cover the balance of its financing this year. It has a 200 mln usd loan falling due this month, only 85 mln of which is covered so far. The earlier plan was to seek offers for a loan with three- to five-year maturity. The central bank early this year raised 585 mln usd in syndicated loans, of which 500 mln was used to pay a loan that fell due in April. (1 usd = 54.95 pesos) afxmanila@afxasia.com |
| Manila shares close down on profit-taking; PLDT leads decline |
MANILA (AFX-ASIA) - Share prices closed lower on profit-taking after the market's three successive days of gains, with sentiment undermined by the weak July exports as well as political and security concerns, dealers said. The composite index closed down 7.61 points, 0.61 pct, at 1,233.87 on volume of 110.7 mln shares worth 402.17 mln pesos. It traded between 1,226.46 and 1,240.40. In the broader market, losers led gainers 32 to 23, with 43 stocks unchanged. Recent top-gainer Philippine Long Distance Telephone succumbed to profit-taking after its American Depositary Receipts declined 0.18 usd last night in New York to 10.48 usd. Shortly before the market opened, the National Statistics Office announced that merchandise exports in July fell to 2.97 bln usd from 3.22 bln a year earlier, pulling down the year-to-date growth to just 0.50 pct year-on-year at 20.04 bln usd, from the first-half growth of 2.10 pct year-on-year. The government is aiming for full-year exports growth of 5.00-8.00 pct. (1 usd = 54.70 pesos) edelacruz@afxasia.com |
| Manila shares down on profit-taking due to weak July exports;PLDT drops |
MANILA (AFX-ASIA) - Share prices weakened in thin late morning trade, but were off lows as investors locked in recent gains following July merchandise exports data which showed a 7.90 pct year-on-year decline, dealers said. They added lingering pre-election political and security concerns also undermined sentiment. At 11.13 am, the composite index fell 4.76 points or 0.43 pct to 1,236.12 on volume of 51.70 mln shares valued at 209.07 mln pesos. It has traded between 1,226.46 and 1,240.40 so far. In the broader market, losers led gainers 27 to 13, with 39 stocks unchanged. Recent top-gainer Philippine Long Distance Telephone succumbed to profit-taking after its American Depositary Receipts declined 0.18 usd last night in New York to 10.48. PLDT was top-traded, down 5.00 pesos at 585.00 on 110,800 shares. "The market is ripe for profit-taking after three successive days of gains," Westlink Global Equities chairman Rommel Macapagal said. "Weak economic indicators such as the exports drop in July also provided investors another reason to take profits." The National Statistics Office said exports in July fell to 2.97 bln usd from 3.22 bln a year earlier, pulling down the year-to-date growth to just 0. 50 pct year-on-year at 20.04 bln usd, from the first-half growth of 2.10 pct year-on-year. The government is aiming for a full-year growth of 5.00-8.00 pct for exports. Bank of the Philippine Islands was the second most actively traded stock, up 0.50 pesos at 42.50 on 911,800 shares. Manila Electric B, open to foreign investors, fell 0.50 to 20.00 while A dropped 0.25 to 12.75. The company said it may borrow up to 200 mln usd before the year ends to cover a projected cash shortfall arising from its continuing refund of overcharges to customers and avoid a possible default on debt payments. San Miguel A was down 1.00 at 54.00, while B eased 0.50 to 62.50. Yesterday, San Miguel chairman and chief executive officer Eduardo Cojuangco Jr said the food and beverage conglomerate expects to hit its 7.00 bln pesos net profit target for 2003 on the back of improved second half sales. San Miguel booked a net profit of 6.63 bln pesos in 2002 and a 2.00 pct year-on-year rise in net profit to 3.05 bln in the first half of this year. The second quarter to June, however, saw its net profit dropping 10 pct year-on-year to 1.70 bln pesos due to the impact of the SARS outbreak, particularly on beer sales in Hong Kong and China. Cojuangco, however, said that a new excise tax ruling on one of its beer brands will likely pull down earnings. He added San Miguel will soon sign agreements for the establishment of manufacturing units in seven markets in the region, including China, Australia, Indonesia, Malaysia, Taiwan, Thailand, and Vietnam. The all-shares index was up 6.53 points at 790.29. The commercial-industrial index fell 8.15 to 1,802.02. Property was down 0.47 at 542.18. Mining and oil were unchanged at 1,236.14 and 1.41, respectively. Banking and financial services shed 2.42 to 425.80. At the Philippine Dealing System, the peso averaged 54.699 to the dollar on volume of 107.50 mln usd after closing yesterday at 54.755. edelacruz@afxasia.com |
| Philippine officials taking steps to head off new plot to oust Arroyo |
MANILA (AFX-ASIA) - Philippine authorities are taking preemptive steps to head off the recruitment of military officers by groups allegedly involved in a fresh attempt to oust President Gloria Arroyo, security officials said. Arroyo and her aides said yesterday military officials were being bribed to join a new coup plot. Generals are being offered 10 mln pesos and ordinary soldiers 50,000 pesos to join the new destabilization attempt, armed forces chief of staff General Narciso Abaya said in a local radio interview today. "We are taking preemptive action and so far our action is very effective, " National Security Adviser Roilo Golez told the same station. He said certain people he would not name were using the same tactic used to recruit junior officers who took part in the brief occupation of part of Manila's financial district of Makati on July 27. More than 300 soldiers were arrested after the collapse of that mutiny, which the government has alleged was part of a larger plot to assassinate Arroyo and replace her with a 15-member military junta. Golez said criminal charges against those now trying to recruit prospective mutineers would not stick in court because the officers were approached in an "oblique" manner. Press reports here have said the new plot would involve setting up Vice President Teofisto Guingona as figurehead after Arroyo was toppled from power. Guingona revealed on Wednesday that "various parties" had approached him. He said he rebuffed all these approaches. (1 usd = 54.65 pesos) |
| DATAWATCH - Philippine exports recovery likely to be delayed - BPI |
MANILA (AFX-ASIA) - The expected recovery of Philippine exports, hinged on the resurgence of demand from its major trading partner the United States, may be delayed given the lag time between overseas orders and actual shipments, Bank of the Philippine Islands (BPI) economist Cecilia Tanchoco said. "Capital good orders in the US have been gaining strength and that should (impact) positively on the Philippines. However, we should understand that there is a lag effect on orders before they can be translated to actual shipments," Tanchoco said. Tanchoco said it is too early to say whether the blip in the country's July export receipts is the start of a worrying trend or is just an isolated event. Merchandise exports in July declined 7.90 pct year-on-year to 2.97 bln usd, a reversal from the 4.20 pct year-on-year growth in June, the National Statistics Office reported. In the seven months to July, exports grew 0.50 pct to 20.04 bln usd from 19.93 bln a year earlier. Unicapital Securities senior analyst Elena Ponceca said the exports sector's performance in the coming months will indicate the full-year trend. The government has been optimistic about a recovery in overseas demand for Philippine products in the second half of the year on the back of a US economic recovery. "The recovery of the United States is certainly good for us, but we should not expect to reap the benefits as early as now," Tanchoco said. Ponceca agreed, saying the decline in July exports might just be due to some "booking adjustments." "There might be some orders in July that could only be booked in August or later. Since we saw recent indicators suggesting a pick-up in global demand, maybe we can see a recovery in exports in the coming months." Exports to the US in July declined 23.10 pct to 658.19 mln usd from 856. 16 mln a year earlier and accounted for 22.20 pct of aggregate receipts for the month. Tanchoco, who expects a 5.00 pct growth in exports for the full-year, said this may have to be reviewed after exports for the seven months to July grew only 0.50 pct year-on-year. This means the export sector should grow at a double-digit rate to hit that goal. The government is targeting an export growth of 5.00-8.00 pct in 2003, which Ponceca described as "very bullish." "With the current political concerns likely to weigh on investments, we need exports (growth) to cushion it. Attaining the lower end of the GDP target for the year will depend on what will happen on exports and domestic demand," Tanchoco said. She added participants in the foreign exchange market may use the lower exports receipts as an excuse to bid up demand for the US dollar anew and thus cause a strain on the peso. (1 usd = 54.65 pesos) cecille.yap@afxasia.com |
| Forex - Philippine peso firmer in absence of demand for US dollars |
MANILA (AFX-ASIA) - The peso was firmer in mid-morning trade, bucking the regional trend in the absence of corporate demand for the US dollar, dealers said. At 10.45 am, the peso averaged at 54.682 after trading between 54.620-54. 800 on turnover worth 88.0 mln usd so far. It closed at 54.755 yesterday. Dealers said a statement from Moody's Investors Service keeping its ratings outlook on the Philippines unchanged despite lingering political concerns provided support for the peso. They said Moody's decision to retain its outlook effectively negated the adverse impact of the country's dismal export performance for July. Moody's said the administration of President Gloria Arroyo remains capable of maintaining the country's political and economic stability. The National Statistics Office reported merchandise exports in July declined 7.90 pct year-on-year to 2.97 bln usd. In the seven months to July, exports grew 0.50 pct to 20.04 bln usd from 19.93 bln a year earlier, with the government's chances of meeting its 5.00-8. 00 full-year export growth appearing more remote. "Lower export receipts suggest weaker dollar inflows, and this usually raises some concern about the peso. However, there isn't any pressure for the local currency at the moment since corporate demand for the US dollars had been satisfied in the previous weeks," a local bank dealer said. Dealers see the peso trading between 54.650-54.850 today. cecille.yap@afxasia.com |
| Philippine rating outlooks maintained by Moody's despite political pressures |
MANILA (AFX-ASIA) - Moody's Investor Service said it is maintaining its rating outlooks on the Philippines despite prevailing political concerns as the government remains capable of maintaining political and economic stability. In its latest assessment of the Philippine situation, the agency said it is keeping its stable outlook on its Ba1 foreign currency rating and the negative outlook on its Baa3 rating for government debts. "As long as domestic and external conditions suggest that the government will be able to advance its overall economic program, the Philippine ratings will be maintained at current levels," Moody's said. It noted, however, the recent challenges to President Gloria Arroyo and the central bank "reflect the underlying political cleavages in the Philippines." Arroyo had quelled a July 27 military mutiny that the government said was part of a coup plot. The Court of Appeals last month ordered the suspension of central bank governor Rafael Buenaventura and four of his subordinates over the closure of Urban Bank in 2000. They have said they will appeal against the decision. "To prevail against these challenges, the Macapagal-Arroyo administration will need to demonstrate that such incidents were isolated events, and do not portend greater upheaval in the run up to next year's elections," Moody's said. There have been reports, however, of continued destabilization efforts against the government and a plan to oust Arroyo. The President has vowed to crush all destabilization attempts, as she claimed solid support from the bureaucracy and the military. Moody's warned that an erosion of investor confidence would weaken both the government's fiscal position and the country's external payments position. "The July military uprising and August court injunction against the governor and other senior officials of the central bank are apparently intertwined and connected to maneuvering by political opponents of the president in the run up to the May 2004 presidential elections," the agency said. edelacruz@afxasia.com |
| Philippine Meralco says may borrow 200 mln usd in H2 to cover cash shortfall |
MANILA (AFX-ASIA) - Manila Electric Co is planning to borrow some 200 mln usd by issuing "high-yielding capital market instruments" before the year ends to cover a projected cashflow shortfall arising from the ongoing refund of overcharges to its customers, company president Jesus Francisco said. He gave no other details about the possible borrowing. In its motion filed with the Energy Regulatory Commission, Meralco said: "It is crucial that this instrument is issued in the soonest time possible, on or before Oct 2003, in order to mitigate Meralco's risk of defaulting on its debt service." Meralco's motion with the ERC sought an extension of the deadline for the submission of its proposal to carry out the third and fourth phases of the refund. Meralco has been ordered by the Supreme Court to return to its customers overcharges dating back to 1994, which it expects to cost up to 30.50 bln pesos. It has completed the first phase of the refund and is now implementing the second phase. Both phases cover customers with lower electricity consumption. The power utility estimated the first phase of the refund to amount to 1. 60-2.00 bln pesos, while the second phase would cost it 4.50 bln. That means Meralco will need over 20 bln pesos more to cover the next phases of refund, which will cover its commercial and industrial customers. Meralco told the ERC that the company, together with its creditors, arrangers, trustees, agents and underwriters, is formulating an overall liability management plan that will address its cashflow problems. (1 usd = 54.75 pesos) afxmanila@afxasia.com |
| Philippine BIR Aug tax collections 37.90 bln pesos vs 38.00 bln target |
MANILA (AFX-ASIA) - Manila Electric Co said it is planning to borrow some 200 mln usd by issuing "high-yielding capital market instruments" before the year ends to cover a projected cashflow shortfall arising from the ongoing refund of overcharges to its customers. Meralco has filed a motion with the Energy Regulatory Commission seeking an extension of the deadline for the submission of its proposal to carry out the third and fourth phases of the refund. Meralco has been ordered by the Supreme Court to return to its customers overcharges dating back to 1994, which it expects to cost up to 30.50 bln pesos. It has completed the first phase of the refund and is now implementing the second phase, both of which cover customers with lower electricity consumption. In its motion filed with the ERC, Meralco said: "It is crucial that this instrument is issued in the soonest time possible, on or before Oct 2003, in order to mitigate Meralco's risk of defaulting on its debt service." (1 usd = 54.75 pesos) afxmanila@afxasia.com |
| Philippine San Miguel CEO says govt should lessen interference in business |
MANILA (AFX-ASIA) - The Bureau of Internal Revenue said preliminary figures show it collected a total of 37.90 bln pesos for the month of August compared with a target of 38.00 bln. BIR commissioner Guillermo Parayno did not rule out the possibility of exceeding the target, saying the final number will be known by Aug 14. BIR collections account for bulk of the national government's total revenues. Yesterday, the Bureau of Customs said it has so far booked 8.33 bln pesos in August collections, 4.50 pct less than its 8.72-bln peso target for the month. The government has set an 8.10-bln peso budget deficit ceiling for August. Budget Secretary Emilia Boncodin earlier said the government breached its expenditure program for the month. However, the budget deficit for the January-August period will still come in lower than the 127.00 bln peso target, she added. The government's budget deficit for July stood at 15.80 bln pesos, below the 17.10 bln ceiling, marking the fourth straight month that the deficit was below the monthly target. For the seven months to July, the deficit reached 95.40 bln pesos, also below the ceiling of 119 bln, thanks to higher-than-targeted revenues and below-program expenditures. (1 usd = 54.79 pesos) afxmanila@afxasia.com |
| Philippine Treasury sets Sept 8-9 auctions for 5-yr, 7-yr notes |
MANILA (AFX-ASIA) - The Bureau of Treasury said it will auction seven-year promissory notes on Sept 8 and five-year notes on Sept 9 to raise up to 6.00 bln pesos. Yesterday, deputy national treasurer Mina Figueroa said the bureau would cancel the auction of the four-year Treasury bonds originally scheduled for next week to facilitate the promissory notes issue. (1 usd = 54.79 pesos) edelacruz@afxasia.com |
| Philippines' PNOC in talks with Japanese investors on LNG facility |
MANILA (AFX-ASIA) - The state-owned Philippine National Oil Co (PNOC) is in talks with some Japanese companies for the development of a liquefied petroleum gas terminal in the Bataan province, north of Manila, PNOC president Thelmo Cunanan said. A number of foreign groups have also expressed interest to supply natural gas to the Philippines, including Qatar Gas, Petronas of Malaysia, British Petroleum and Cunanan declined to identify the Japanese groups they are talking with. "The LNG terminal is a must if we are to develop the downstream natural gas sector. Bataan is an ideal site. We have ongoing talks with Japanese companies to conduct studies on LNG," he told reporters. Cunanan, however, said the country's gas reserves should be enough to justify the need for such a terminal. PNOC unit PNOC Exploration Corp earlier said it was considering investing 70-80 mln usd in a 100-mln usd pipeline project that would transmit the Malampaya natural gas from Batangas province to Manila. The company plans to seek partners to take up the balance. The pipeline may be extended all the way to Bataan, officials said. PNOC has a 20 pct stake in the Malampaya discovery, with (1 usd = 54.79 pesos) afxmanila@afxsia.com |
| Philippine San Miguel says likely to meet 7.00 bln peso FY profit goal |
MANILA (AFX-ASIA) - San Miguel Corp is likely to meet its 2003 net profit target of 7.00 bln pesos, company chairman and chief executive officer Eduardo Cojuangco Jr said. The food and beverage conglomerate posted a net profit of 6.63 bln pesos in 2002, after booking a restructuring cost of 837 mln. "I think we will be able to hit our 7.00 bln peso net profit target this year," Cojuangco told reporters after delivering a keynote speech at the joint meeting of the Canadian, European and Japanese chambers of commerce in the Philippines. He said sales are likely to improve in the second half, but did not elaborate. San Miguel's second quarter to June net profit fell 10.00 pct to 1.709 bln pesos from 1.89 bln in the same period last year, as the SARS outbreak limited beer sales in Hong Kong and China. First half to June net profit rose 2.00 pct to 3.05 bln pesos from 3.005 previously, as net sales for the period grew 9.00 pct year-on-year to 72.16 bln. The improved profitability in the first half was also aided by lower interest expenses as a result of a substantial reduction in debt levels. Cojuangco said San Miguel will sign agreements "soon" for the establishment of food and beverage complexes in seven other markets in the region, including China. He gave no other details. He said earlier that a San Miguel "food and beverage complex" would also be set up in Indonesia, Vietnam, Thailand, Malaysia, Taiwan and Australia. "Ultimately, each (market) will have 100 mln usd (in investments by San Miguel)," he said. He had envisioned sales in these markets to boost the San Miguel group's annual revenue by 300 mln. (1 usd = 54.79 pesos) afxmanila@afxasia.com |
| Manila shares close sharply higher on Wall St bounce; PLDT leads gains |
(Updating with analyst comments, prices) MANILA (AFX-ASIA) - Share prices closed sharply firmer on buying in select blue-chip stocks led by Philippine Long Distance Telephone following Wall Street's advance overnight and the peso's further rebound against the US dollar, dealers said. The composite index closed up 23.38 points, or 1.92 pct, at 1,241.48 on volume of 158.89 mln shares valued at 393.14 mln pesos. It traded between 1, 218.10 and 1,241.48. In the broader market, gainers beat losers 41 to 14, with 36 stocks unchanged. PLDT was top traded and rose 25.00 pesos, or 4.42 pct, to 590.00 on volume of 132,810 shares following a hefty 0.66 usd gain in its American Depositary Receipts in New York last night to 10.66. At the Philippine Dealing System, the peso averaged 54.793 to the dollar by noon on volume of 72.50 mln usd. It closed at 54.825 yesterday. "We saw follow-through buying in select blue chips led by PLDT after recent market declines and Wall Street's gains overnight," Accord Capital Equities analyst Lawrence de Leon said. "Some of the regional markets were also firmer this morning, with the US economic numbers looking positive. But our gain is more pronounced because we lagged behind recent regional rallies due to our own domestic political problems," said Citiseconline.com analyst Mark Alan Canizares said. "The peso's rebound also added a positive tone to the market." Astro del Castillo, a director of the Association of Securities Analysts of the Philippines, described the market's rally as a dead cat's bounce. "Most of the investors have digested existing concerns. (But) given the low value turnout, it is indicative that investors are still cautious," he said. Canizares said there may be a "slight pause" tomorrow, as he sees possible profit-taking. "If this trend continues tomorrow, gains may not be as significant as some investors may opt to pocket gains given the still volatile situation." SM Prime Holdings was the second most actively traded stock, up 0.10 peso at 5.60 on 8.90 mln shares. Bank of the Philippine Islands rose 1.00 to 42.00 on 1.10 mln shares. Ayala Land was up 0.30 at 6.30 on 3.60 mln shares, while parent Ayala Corp gained 0.10 to 4.35 on 3.59 mln shares. Benpres Holdings rose 0.01 to 0.56 on 20.69 mln shares. The all-shares index was up 7.73 points at 783.76. The commercial-industrial index gained 23.08 to 1,810.17, while property rose 18.30 to 542.65. Mining closed 52.12 higher at 1,236.14, while oil was unchanged at 1.41. Banking and financial services gained 9.10 to 428.22. edelacruz@afxasia.com |
| Philippines' PCI Leasing buys back 77,000 shares at 1.30 pesos each |
MANILA (AFX-ASIA) - PCI Leasing & Finance Inc said it repurchased an additional 77,000 of its shares on the market on Sept 1 at 1.30 pesos each as part of its share buy-back program. PCI Leasing closed up 0.02 peso at 1.34 on volume of 498,000 shares. (1 usd = 54.793 pesos) afxmanila@afxasia.com |
| Philippines' Ayala Land to list 16.39 mln common shares tomorrow - PSE |
MANILA (AFX-ASIA) - Ayala Land Inc will list some 16.39 mln common shares tomorrow to cover stock option availments by its executive officers and employees, the Philippine Stock Exchange said. Ayala Land closed up 0.30 peso, or 5.00 pct, at 6.30 on volume of 3.60 mln shares. (1 usd = 54.793 pesos) edelacruz@afxasia.com |
| Philippine military denies rumours of new coup plot |
MANILA (AFX-ASIA) - The military public information office denied media reports that several generals were prepared to resign as a signal for a new coup attempt. A newspaper report quoting military sources said retired military generals and some politicians had been holding clandestine meetings over a plot to oust President Gloria Arroyo and put Vice President Teofisto Guingona in place as a figurehead. The military said no meetings had been held and that no generals were planning to resign. It also dismissed the capability of any retired officer to trigger a coup attempt. A mutiny staged by some 300 soldiers on July 27 collapsed in less than a day but the government has said the masterminds of the plot remain at large. |
| Forex - Philippine peso extends gains on lack of dollar demand |
MANILA (AFX-ASIA) - The peso was firmer in late morning trade on continued selling of dollars amid a lack of demand for the US unit, dealers said. At 11.11 am, the peso averaged 54.789 to the dollar after hitting a high of 54.755 and a low of 54.840 on volume of 53.00 mln usd. It closed at 54.825 yesterday. "There's follow-through selling of dollars but there's still no demand from corporates," a commercial bank dealer said. The peso's continuing technical correction has led to the breach of support for the dollar at 54.800, the dealer added. The dealer sees the US unit traded at a range of 54.700 to 54.850 today. The central bank has not been seen in the market so far, he said. edelacruz@afxasia.com |
| STOCKWATCH - Philippines' PLDT extends gains on sharp ADR rise, valuation |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone was up midmorning, extending gains after the sharp advance of its American Depositary Receipts (ADRs) in New York overnight and on its valuation, dealers said. They said investors are seeking refuge in PLDT, which has good earnings prospects, amid concerns over the domestic political situation ahead of the 2004 elections. At 10.31 am, PLDT was top traded and up 20.00 pesos, or 3.54 pct, at 585. 00 on volume of 67,150 shares. PLDT's ADRs gained 0.66 usd to 10.66 overnight. The composite index was up 20.06 points, or 1.65 pct, at 1,238.16. There has been a return to buying interest in PLDT after its technical correction, having risen to the 600-peso level. "PLDT is a good buy for those wanting to hedge, given the sentiment over the political situation in the country. Investors are bullish on the company's earnings prospects, which look unaffected by what has been happening on the domestic front," Westlink Global Equities chairman Rommel Macapagal said. "Investors find value in the stock." "This gain in PLDT is also based on the strong performance of its wireless unit (Smart Communications), whose cellular subscriber base continues to grow," Accord Capital Equities analyst Lawrence de Leon said. The analysts believe the company's own 2003 net profit forecast of 10.00 bln pesos looks easily achievable on gains made in the wireless business. PLDT posted a full-year net profit of 3.10 bln pesos in 2002. In the first half, the company's net profit reached 6.60 bln pesos before provisions and 1.80 bln after. PLDT president and chief executive officer Manuel Pangilinan earlier said the company does not expect to book any further significant one-off provisions in the second half. (1 usd = 54.825 pesos) edelacruz@afxasia.com |
| Philippine Aboitiz Equity files 613-mln peso suit against Vivant |
MANILA (AFX-ASIA) - Aboitiz Equity Ventures said it has filed a 613 mln peso suit against Vivant Corp (formerly Philstar.com) for the alleged dilution of Aboitiz's shares in power utility firm Visayan Electric Co (VECO). Vivant, in a disclosure to the stock exchange, said "the corporation has not received a copy of the complaint and/or summons." It said it only learned of the case through newspaper reports. The subject of the complaint is the dissolution of Hijos de F. Escano, a private holding company whose principal assets were its controlling shareholdings in VECO, through a share swap agreement with Vivant. Hijos is majority owned by the Garcia family, which also owns Vivant. Aboitiz holds a 46 pct stake in Hijos. Under the share-swap deal, Vivant acquired about 2.09 mln shares belonging to Hijos in VECO in exchange for Vivant shares. The Aboitiz group, in its complaint, said the VECO shares were traded at book value, while the Vivant shares were valued at a premium to its book value. The effect of these valuations was to reduce the holdings of the minority shareholders in VECO. "This transaction was approved and implemented by the defendants/majority Garcia directors despite objections of the minority shareholders of Hijos, and despite months of repeated requests and demands by the minority shareholders for the majority Garcia directors to reverse the transaction," Aboitiz Equity Ventures said in a disclosure to the stock exchange. The complaint alleges that the share swap transaction misappropriates from Hijos minority shareholders approximately 80 mln pesos and 170 mln pesos from the holding company itself. Aboitiz is seeking damages of 613 mln pesos and a return of the transferred properties "so that Hijos may be dissolved and its assets distributed proportionately among its shareholders." (1 usd = 54.825 pesos) cecille.yap@afxasia.com |
| Philippines' Ionics H1 net loss 894.55 mln pesos |
MANILA (AFX-ASIA) - Ionics Inc first half to June results: Sales - 2.98 bln pesos vs 5.14 bln Costs of goods sold - 3.18 bln pesos vs 5.05 bln Gross loss - 196.37 mln pesos vs profit 91.670 mln Opg expenses - 120.21 mln pesos vs 142.054 mln Opg loss - 316.58 mln pesos vs loss 50.38 mln Net loss - 894.55 mln pesos vs loss 42.3 mln Comparative figures were based on a previous disclosure. (1 usd = 54.825 pesos) afxmanila@afxasia.com |
| Philippine Supreme Court stops changes in mobile phone billings - report |
MANILA (AFX-ASIA) - The Supreme Court has effectively stopped regulators from forcing cellular phone companies to change the way they bill customers and from charging them less for every call made, the BusinessWorld newspaper reported citing court documents. In an order, the Supreme Court sent back to a lower court the petitions of Smart Communications Inc and Globe Telecom Inc against a ruling of the National Telecommunications Commission on billings for telecommunication services. The report said the High Court also overturned a decision of the Court of Appeal to dismiss the petitions. The Supreme Court said the lower court should continue hearing the petition of the telecommunication companies. "We find merit in the petitions. The decision of the Court of Appeals and its resolution are reversed and set aside. This case is remanded to the court a quo for continuation of proceedings," the Supreme Court was quoted as saying. cecille.yap@afxasia.com |
| SingTel, Ayala continue talks to buy Globe Telecom stake from Deutsche -report |
SINGAPORE (AFX-ASIA) - Singapore Telecommunications Ltd and Philippines' Ayala Corp are still in talks to buy the 24.80 pct stake in Globe Telecom that Deutsche Telekom is selling, the Business Times quoted Globe Telecom senior vice president Gil Genio as saying. "The negotiations are still on going," Genio said. Ayala Corp and SingTel's option to buy Deutsche Telekom's stake in Globe Telecom lapsed last month without an agreement because of, analysts believed, a disagreement on the sale price. singapore@afxasia.com |
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