NEWS &
ADVISORY
ARCHIVE
| FEATURES | NEWS/ADVISORY | CHARTS | CONTACT |
Friday, September 12, 2003
Philippines'
PNOC-EC to farm out interest in Mindoro oil exploration site
STOCKWATCH
- Philippines' PLDT higher on mobile subscriber growth, technicals
Manila
shares slightly lower on extended consolidation
Philippine
PLDT's wireless subscribers exceed 11 mln at end-Aug
Philippines
end-June total debt 2.97 trln pesos vs 2.96 trln in May
Philippines'
San Miguel says 'in talks' to acquire Keppel IVI Investments
Philippines'
BPI scraps plan to sell idle assets to Merrill Lynch - report
Manila
shares outlook - Mixed to slightly lower on extended consolidation
Philippines'
Exportbank to reactivate stock market listing this year - report
Philippines'
CDC says Mondragon forfeits claim to Mimosa leisure estate
Philippines'
Digitel seeks 120 mln usd loan for cellular unit - report
Philippines'
San Miguel Corp in talks to acquire Keppel local unit - report
Philippines'
SEC indefinitely suspends broker-dealer and tender offer rules
Thursday, September 11, 2003
Philippines
trade dept to impose cash bonds on imported glass mirrors - Roxas
Manila
shares close lower on profit-taking, Wall St losses
Philippines'
Music says Aug semiconductor orders highest in two yrs
Wednesday, September 10, 2003
Manila
shares close lower on profit-taking
Rates
on Philippine debt may rise on Argentina default - Buenaventura
Forex
- Philippine peso firmer late morning on central bank restrictions
Philippines'
Arroyo confident central bank can stabilize peso
Philippine
president issues terror alert on eve of September 11
Philippine
Jardine Davies sells unit Hawaiian-Philippine Co for 561 mln pesos
Philippines'
Mondragon rescinds MOU with Clark Dev't Corp over Mimosa Estate
Philippine
central bank restricts US dollar purchases - report
Philippines'
Security Bank plans to raise Tier 2 capital - report
Philippine
Senate approves 25-year franchise for Digitel Crossing - report
September 8 -
9
September 3 -
5
September 1 - 2
| Philippines' PNOC-EC to farm out interest in Mindoro oil exploration site |
MANILA (AFX-ASIA) - PNOC Exploration Corp said it is currently in the midst of negotiations with a prospective partner to farm out its interest in an oil exploration site in offshore Mindoro, south of Manila. "Hopefully, this agreement will be finalized sometime next month," PNOC-EC said in a disclosure to the stock exchange. At 10.45 am, PNOC-EC was untraded. It previously closed at 1.00 peso. (1 usd = 55.06 pesos) cecille.yap@afxasia.com |
| STOCKWATCH - Philippines' PLDT higher on mobile subscriber growth, technicals |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Corp was higher in mid-trade, recouping previous losses, on the back of a steady growth in its wireless subscriber base, dealers said. At 10.20 am, PLDT was up 5.00 pesos at 620 on volume of 72,900 shares. The composite index was down 5.40 points or 0.42 pct at 1,276.60 on 47.18 mln shares worth 104.16 mln pesos. Dealers added the stock is undergoing a technical correction after recent declines, bucking the trend of its New-York-traded American Depositary Receipts, which ended lower by 0.21 usd at 11.11 overnight. An official of PLDT unit Smart Communications told AFX-Asia that PLDT's total wireless subscriber base has reached over 11 mln as of end-August. The figure is roughly 7.00 pct higher from 10.30 mln in June and nearer to the company's subscriber base target of 11.40 mln for the full year. "Achieving the 11 mln mark in August suggests the company has been able to sustain a growth rate of 300,000 monthly, despite the fact that the industry is close to the 25 pct penetration target," AB Capital Securities research director Jose Vistan Jr said. The National Telecommunications Commission had earlier said it expects the number of cellular phone subscribers in the country to reach 20.00 mln by year-end with the addition of 2.00 mln users in the second half. Earlier estimates also suggest 25 pct of the country's total population would be cellular phone users by the end of the year, from 19.00 pct in 2002. "There seems to be no sign of slowing down as far as subscriber pick-up is concerned," Vistan said. He added a growing subscriber base is also indicative of the likelihood that PLDT's 9.00-10.00 bln peso full-year net profit target would be met. However, this assumes that no major provisions will be booked in the second half. (1 usd = 55.065 pesos) cecille.yap@afxasia.com |
| Manila shares slightly lower on extended consolidation |
MANILA (AFX-ASIA) - Shares prices were slightly weaker in early trade on extended consolidation, with investors continuing to cash in on recent gains, dealers said. At 10.11 am, the composite index was down 1.63 points or 0.13 pct at 1, 280.37 on volume of 44.06 mln shares worth 93.82 mln pesos. It has so far traded between 1,279.47 and 1,286.64. Losers led gainers 11 to 7, with 24 stocks unchanged. The peso has slightly weakened mid-morning, averaging 55.083 to the US dollar on volume of 60 mln usd after it closed at 55.030 yesterday. cecille.yap@afxasia.com |
| Philippine PLDT's wireless subscribers exceed 11 mln at end-Aug |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Corp's total wireless subscriber base has reached over 11 mln as of end-August, an official of unit Smart Communications told AFX-Asia. The estimate is roughly 7.00 pct higher from 10.30 mln in June and nearer to the company's subscriber base target of 11.40 mln for the full year. "I confirm that the combined subscriber base of Smart and Talk 'N Text surpassed the 11 million mark at the end of August," Smart Communications investor relations head Deborah Anne Tan said. She declined to elaborate. Market talk is that Smart and Talk 'N Text, the wireless brand of Pilipino Telephone Corp, added 636,000 new subscribers for July and August alone. PLDT is targeting a full-year net profit of 9.00-10.00 bln pesos, despite substantial provisions in the first half. In 2002, net profit stood at 3.10 bln pesos. (1 usd = 55.030 pesos) cecille.yap@afxasia.com |
| Philippines end-June total debt 2.97 trln pesos vs 2.96 trln in May |
(Repeating for technical reasons) MANILA (AFX-ASIA) - The Philippines' total outstanding debt inched up to 2.97 trln pesos as of end-June from 2.96 trln in May, government documents showed. The size of local government borrowings was up 17 bln pesos to 1.542 trln in June from May's 1.525 trln. Meanwhile, foreign debt declined 0.42 pct or 6.00 bln pesos to 1.427 trln in June versus 1.433 trln a month ago. The foreign component of the government's debt liabilities slightly declined month-on-month to 48.04 pct from 48.44 pct, while domestic obligations comprised 51.95 pct of the aggregate from May's 51.56 pct. (1 usd = 55.030 pesos) cecille.yap@afxasia.com |
| Philippines' San Miguel says 'in talks' to acquire Keppel IVI Investments |
MANILA (AFX-ASIA) - San Miguel Corp confirmed reports that it plans to acquire Keppel IVI Investments Inc, a local investment house owned by Singapore's Keppel Group. San Miguel, in a disclosure to the stock exchange, said: "The company had been in talks with Keppel IVI Investments, a member of the Keppel Group of Singapore, but no agreements have been reached." Keppel IVI is no longer operating, although it has a license to engage in the investment banking business. It suspended operations in 2001 due to financial difficulties. cecille.yap@afxasia.com |
| Philippines' BPI scraps plan to sell idle assets to Merrill Lynch - report |
MANILA (AFX-ASIA) - Bank of the Philippine Islands has decided not to push through with the sale of foreclosed properties to US investment bank Sources said the offer did not meet the bank's target price of 10.00 bln pesos. (1 usd = 55.030 pesos) afxmanila@afxasia.com |
| Manila shares outlook - Mixed to slightly lower on extended consolidation |
MANILA (AFX-ASIA) - Share prices are expected to open mixed to lower as the market continues to consolidate after sharp gains early this week, dealers said. Yesterday, the composite index closed down 10.52 points or 0.81 pct at 1, 282.00 on 244.31 mln shares worth 371.94 mln pesos. BPI Securities, in its daily note to investors, said the correction is healthy as it allows new players to enter the market at lower prices. "While investors seem to have discounted the current political and security concerns, the market is fragile and remains sensitive to new developments in the economy and politics," BPI said. It nevertheless sees some accumulation on select issues such as telecommunication, consumer and utility firms on expectations of a strong profit performance in the second half. BPI said the market needs to break the 1,300-1,309 resistance level if it is to set a more bullish tone. It sees support at 1,264 and resistance at 1,284 today. (1 usd = 55.030 pesos) cecille.yap@afxasia.com |
| Philippines' Exportbank to reactivate stock market listing this year - report |
MANILA (AFX-ASIA) - Export and Industry Bank will reactivate the listing of its shares at the Philippine Stock Exchange within the year, the BusinessWorld newspaper reported, quoting Exportbank chairman Sergio Ortiz-Luis Jr. The bank's shares remain under the listed name of Urban Bank, which declared a bank holiday and was later closed by the central bank in 2001. Trading of the shares has been suspended since then. Exportbank bought Urban Bank and merged the operations of the two after several months. Exportbank has filed for a change in its listed corporate name and is seeking approval of the Securities and Exchange Commission before it resumes trading. cecille.yap@afxasia.com |
| Philippines' CDC says Mondragon forfeits claim to Mimosa leisure estate |
MANILA (AFX-ASIA) - Clark Development Corp (CDC) said Mondragon Leisure and Resorts Corp had no right to rescind the memorandum of understanding it signed with CDC for the operation of the Mimosa Leisure Estate in the former Clark airbase in Pampanga province, north of Manila. CDC president Emmanuel Angeles said Mondragon effectively forfeited its claim to the resort following its failure to pay 450.00 mln pesos in arrears on the Sept 8 deadline as specified in the MOU. The agreement involved a new rental and payment scheme of its back rentals to CDC. Angeles said CDC is invoking Article XI of the MOU signed on April 30, 2003, which states that "failure on its part to comply fully with the MOU within the given time frame shall be a conclusive ground for its withdrawal of its claims and interest over the resort complex, including waiver of any action against CDC and shall voluntarily leave the premises of the resort complex, without need of judicial action." The government took over Mimosa after Mondragon failed to pay its rental arrears. Mondragon is still in talks to restructure its debt of about 7.00 bln pesos. (1 usd = 55.030 pesos) cecille.yap@afxasia.com |
| Philippines' Digitel seeks 120 mln usd loan for cellular unit - report |
MANILA (AFX-ASIA) - Digital Telecommunications Philippines Inc is seeking 120 mln usd in financing over the next three years to fund civil works to support wireless unit Sun Cellular, the Philippine Daily Inquirer newspaper reported, quoting Philippine Export-Import Credit Agency president Joel Valdes. Philexim has been asked to provide a guarantee on the planned borrowing. Digitel has started negotiations to borrow from the Overseas Private Investment Corp of the United States, the report said. (1 usd = 55.030 pesos) cecille.yap@afxasia.com |
| Philippines' San Miguel Corp in talks to acquire Keppel local unit - report |
MANILA (AFX-ASIA) - San Miguel Corp is in talks to acquire Keppel IVI Investments Inc, a local investment house owned by Singapore's Keppel Group, the Philippine Daily Inquirer newspaper reported, quoting unidentified officials of the Securities and Exchange Commission. SEC officials said that negotiations between the SMC group and Keppel continue and it is not clear whether the company itself or a subsidiary or affiliate would acquire the local investment house. Keppel IVI was reported to have trouble meeting the minimum capital and reportorial requirement the SEC had set, the report said. cecille.yap@afxasia.com |
| Philippines' SEC indefinitely suspends broker-dealer and tender offer rules |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has extended the suspension of broker-dealer segregation and tender offer rules stipulated in the new Securities Regulation Code. In a circular to brokers, the compliance and surveillance group of the Philippine Stock Exchange said the SEC extended the suspension of the rules indefinitely. The broker-dealer rule separates the functions of a broker from a dealer, preventing members of the exchange from performing both functions. The tender-offer rule requires investors buying into a company to make a tender offer when the stake hits the 15.0 pct threshold for a single acquisition or 30.0 pct for a creeping acquisition. Instead, the SEC has hiked the threshold to 35.0 pct. afxmanila@afxasia.com |
| Philippines trade dept to impose cash bonds on imported glass mirrors - Roxas |
MANILA (AFX-ASIA) - The government will impose provisional safeguard duties on imported glass mirrors and float glass to protect the local industry, Trade and Industry Secretary Manuel Roxas II said. "We have to provide protection to our local glass industry, which is besieged by the surge in imported glass mirrors and float glass, to prevent irreparable damage," Roxas said in a statement. A cash bond of 3,560 pesos per metric ton of imported glass mirrors under certain classifications shall be imposed for a period not exceeding 200 days after the Bureau of Customs issues the implementation order. The provisional safeguard measure will also cover imported float glass via a cash bond of 2,000 pesos per metric tons for clear float glass and 2, 650 pesos per metric tons for tinted float glass. Local glass manufacturers have complained of depressed prices and declining profit margins after landed costs of imports were found to be lower than those of locally produced glass mirrors and float glass. Exempted from the provisional duties are imports from various developing countries, whose actual share of total Philippine imports as of 2002 is less than 3.0 pct. (1 usd =54.931 pesos) cecille.yap@afxasia.com |
| Manila shares close lower on profit-taking, Wall St losses |
MANILA (AFX-ASIA) - Share prices ended lower for the second straight day on extended profit-taking, in tandem with Wall Street, which closed weaker overnight on renewed terror concerns, dealers said. The composite index closed down 10.52 points or 0.81 pct at 1,282.00 on 244.31 mln shares worth 371.94 mln pesos. It traded between 1,270.73 and 1, 289.41. Losers led gainers 38 to 10, with 36 stocks unchanged. Philippine Long Distance Telephone led the market's decline, down 25.00 pesos at 615 on 124,770 mln shares. Its American Depositary Receipts fell 0. 48 usd to 11.32 in New York last night. Dealers said some investors have continued to cash in on recent gains, while others have stayed on the sidelines as manifested in the low value turnover given renewed security jitters. A new tape of Al-Qaeda leader Osama Bin Laden emerged on the eve of the second anniversary of the Sept 11 terror attacks in the US. The Philippines, a staunch supporter of the US' anti-terrorism efforts, is on heightened security alert. "The index has gone up quite abruptly and what we're going through is a pullback or a correction from that upside," Summit Securities president Harry Liu said. "People are not so sure whether the upward movement could be a mere hiccup. But should the index hold above the 1,250 level in the coming days, then maybe we could say the resurgence (in trading activity in the market) can be sustained." He added investors on Wall Street and elsewhere in the region have stayed on the sidelines as a precautionary step in relation to the anniversary of the Sept 11 attacks, but added "we have more than the 9-11 to worry about." Asiasec Equities Inc's Oliver Plana said factors such as a lower Wall Street and renewed regional concerns on the re-emergence of the SARS outbreak, which have pulled down other bourses in the region, were "made as an excuse" for investors to take profit from recent gains. Citiseconline.com analyst Mark Alan Canizares said the market's upside early this week, which pushed the index to a seven-week high and a relatively hefty value turnover, is "hopefully" an indication that investors have learned to discount political concerns ahead of the 2004 elections. Ayala Corp was down 0.05 at 4.35 on 10.17 mln shares, while unit Ayala Land shed 0.10 at 6.60 on 4.4 mln shares. Globe Telecom was up 10.00 pesos at 700 on 62,220 shares. Bank of the Philippine Islands shed 0.50 to 43 on 577,400 shares. Meralco B, open to foreigners, shed 0.75 to 21.75 on 1.22 mln shares, while Meralco A lost 0.25 to 14 on 422,100 shares. Meralco parent First Holdings shed 1.00 peso to 17.75 on 730,800 shares. Filinvest Land was 0.04 pesos lower at 1.04 on 6.70 mln shares. The all-shares index was down 1.92 points at 807.43. The commercial-industrial index ended 16.98 lower at 1,858.12, while property was down 6.07 at 573.84. Mining ended 13.75 lower at 1,236.88, while oil was up 0.02 at 1.45. Banking and finance was down 0.72 at 439.67. (1 usd = 54.93 pesos) cecille.yap@afxasia.com |
| Philippines' Music says Aug semiconductor orders highest in two yrs |
MANILA (AFX-ASIA) - Music Corp said its semiconductor operation has received customer orders totaling more than 830,000 usd for the month of August, the highest booking it registered for a single month during the last two years. It said average monthly bookings for the past two years stood at only 400, 000 usd. "Music cautions however that visibility in the networking market remains extremely limited, and thus it is much too early to translate the August result into a new trend," the company told the stock exchange in a disclosure. It said that if current business levels continue, its US subsidiary Music Semiconductors Inc will generate sufficient cash flow to pay off outstanding creditor obligations by 2004. At 11.52 am, Music was still untraded from the previous close at 0.38 pesos. (1 usd = 54.93 pesos) cecille.yap@afxasia.com |
| Manila shares close lower on profit-taking |
MANILA (AFX-ASIA) - Share prices closed lower as investors took profit after recent sharp gains, dealers said. The local bourse's performance was also in line with the decline on Wall Street and other markets in the region, which were lower on renewed SARS concerns, they added. The composite index closed down 6.81 points or 0.52 pct at 1,292.52 on volume of 373.87 mln shares worth 683.57 mln pesos. It traded between 1,286. 53 and 1,295.85. Philippine Long Distance Telephone Corp, which lead the market to its sharp rise early this week, led decliners. It was top-traded but ended 25.00 pesos lower at 640.00 on 262,960 mln shares. Losers beat gainers 40 to 16, with 42 stocks unchanged. "The market is down on a technical correction after we've seen the index's recent strength. Some market players have started to cash in on their gains," Unicapital Securities senior analyst Elena Ponceca said. She expects the trend to continue tomorrow given sharp gains in recent days. "It's a healthy correction. Hopefully, the resurgence of trading activities in the market will be sustained moving forward," Accord Capital Equities analyst Ron Rodrigo said. Regina Capital analyst Gomer Tan however said investors are expected to trade more cautiously on the eve of the second anniversary of the Sept 11 terror attacks in the US. President Gloria Arroyo has placed the nation on alert for possible terrorist attempts to mark the anniversary of the attacks. The Philippines is a key ally of the United States in its global campaign against terror and there have been concerns the country has become a target for terrorist groups in Southeast Asia. SM Prime was second-top traded, up 0.30 pesos at 6.10 on 17.70 mln shares. Bank of the Philippine Islands was up 0.50 at 43.50 on 2.30 mln shares. Ayala Land shed 0.10 to 6.70 on 7.50 mln shares, while parent Ayala Corp was down 0.05 at 4.40 on 11.80 mln shares. Meralco B, open to foreigners, was down 0.25 at 22.50 on 1.27 mln shares, while Meralco A was down 0.25 at 14.25 on 539,100 mln shares. Filinvest Land gained 0.02 pesos to 1.08 on 27.01 mln shares. The all-shares index was up 0.25 points at 809.35. The commercial-industrial index fell 23.83 to 1,875.10, while property was up 7.61 to 579.91. Mining was down 28.00 at 1,250.63. Oil was up 0.03 at 1.43. Banking and financial services gained 2.18 to 440.39. (1 usd = 55.080 pesos) cecille.yap@afxasia.com |
| Rates on Philippine debt may rise on Argentina default - Buenaventura |
MANILA (AFX-ASIA) - Central bank governor Rafael Buenaventura said rates of Philippine debt papers overseas will "probably go up" in a knee-jerk reaction to Argentina's foreign debt default. However, the reaction is expected to be temporary and is unlikely to affect the Philippine Government's plan to borrow before the end of the year, he added. "The price of debt papers will probably go up because of the (expected) contagion effect, but it will be temporary," Buenaventura told reporters. He said investors will eventually distinguish that the debt profile of Argentina is largely different from that of the Philippines, despite the fact that they belong to the same investment basket as emerging markets. "The government will borrow by October or November, at which point, even Argentina will have found a way to a compromise," Buenaventura said. He said the Philippines' debt situation is largely different from that of Argentina, where 60-70 pct of foreign borrowings are maturing in three years. "Our situation is rather different. Our maturing obligation does not represent a big chunk of our liabilities," Buenaventura said. He said only 10 pct of the country's debts are short-term, while the rest are either medium- to long-term. Buenaventura added the country's dollar reserves, which stand at a little over 16 bln usd, covers 1.3 times the country's short-term obligations. "The impact (of the Argentina default) would be minimal and if ever momentary," Buenaventura said. cecille.yap@afxasia.com |
| Forex - Philippine peso firmer late morning on central bank restrictions |
MANILA (AFX-ASIA) - The peso was firmer against the US dollar late morning, buoyed by a recent central bank circular prohibiting residents from purchasing US dollars in the spot market if they use them to buy dollar-denominated bonds, dealers said. At 11.21 am, the peso averaged 55.088 after trading at 54.970-55.220 on 122.00 mln usd. It closed at 55.195 yesterday. Dealers said profit-taking after the peso's four straight days of weakness also triggered the appreciation. "A recent central bank circular may have prompted banks to unwind long dollar positions," a local bank dealer said. He added that the market has, for the moment, ignored Argentina's default on its foreign debts, although this should have adverse impact on investor sentiment towards the Philippines since it is an emerging economy like Argentina. "We are surprised to see the peso improve this fast. The central bank circular effectively hampers demand for the US dollar as it prohibits residents from buying dollar bonds through dollar purchases from the spot market," another dealer said. Central bank governor Rafael Buenaventura said the recent weakness in the peso was due to higher oil prices, as well as "non-economic" factors. "We don't try to manage the currency. We do it indirectly through monetary tools," Buenaventura told a meeting of the Foreign Correspondents Association of the Philippinbes (FOCAP). cecille.yap@afxasia.com |
| Philippines' Arroyo confident central bank can stabilize peso |
MANILA (AFX-ASIA) - Philippine President Gloria Arroyo said she is confident monetary authorities have enough powers to counter any slide in the exchange rate. Arroyo blamed the peso's recent weakness on "mild transient shocks occasioned by politicking and destabilization attempts", referring to corruption allegations against her family and a failed military coup in July. "But we have gradually pulled the nation back on track and there is no cause for undue concern," Arroyo said in a statement. "The central bank has the power and the tools to stabilize the exchange rate in tandem with market forces. "Our people are undeterred in their will to resist destabilization and sustain enterprise and constructive activities," the president said. At 11.21 am, the peso averaged 55.088 to the dollar. It closed at 55.195 yesterday. |
| Philippine president issues terror alert on eve of September 11 |
MANILA (AFX-ASIA) - Philippine President Gloria Arroyo placed the nation on alert for possible terrorist attempts to mark the anniversary of the September 11, 2001 attacks in the United States. "The anniversary of the 9/11 tragedy reminds us that we should not take the threat of terrorism lightly for we know that there are still a number of terror groups waiting for a chance to strike," Arroyo warned in a statement today. "We must always remember the time-honored principle that the price of freedom is perpetual vigilance," she said. "We must never let down our guard against terrorists who strike when least expected." The Philippines is a key ally of the United States in its global campaign against terror, and there have been concerns the country has become a target for terrorist groups in Southeast Asia. Arroyo's statement came a day after security forces were placed on high alert to thwart possible retaliatory attacks from local Muslim radicals following the recent arrest in Thailand of al-Qaeda-linked Jemaah Islamiyah (JI) operations chief Hambali. Elite anti-terror police units have also been placed around Manila, the military said. The JI is said to be Southeast Asian arm of Osama bin Laden's al-Qaeda network blamed for the US attacks in 2001 as well as the bombings in Bali that killed more than 200 people last year. "We are on alert for possible retaliation (because) of the capture of Hambali. So we heightened our alert level to blue. It's actually aimed at preparing for any terroristic activity," military spokesman Lieutenant Colonel Daniel Lucero said on Tuesday. He said at least 2,000 troops were on the heels of Hambali associate Fathur Rohman al-Ghozi, an Indonesian member of the JI who escaped from a Manila jail in July. Both men had planned a spate of bombings in Manila in December 2000 that killed over 20 people, according to police. |
| Philippine Jardine Davies sells unit Hawaiian-Philippine Co for 561 mln pesos |
MANILA (AFX-ASIA) - Jardine Davies Inc said it has agreed to sell its 84. 20 mln common shares in Hawaiian-Philippine Company (HPCo) to Marina Trading Corp for 561.02 mln pesos. The shares represent 98.95 pct of HPCo's outstanding capital stock. Jardine Davies, in a disclosure to the stock exchange, said it also received dividends from HPCo amounting to 84.20 mln pesos or 1.00 peso per share as part of the transaction. Marina is a company held by CADP Group Corp and several private investors, including certain executives of Jardine Davies. (1 usd = 55.195 pesos) cecille.yap@afxasia.com |
| Philippines' Mondragon rescinds MOU with Clark Dev't Corp over Mimosa Estate |
MANILA (AFX-ASIA) - Mondragon International Philippines Inc said it has rescinded the memorandum of understanding it entered into with Clark Development Corp (CDC) for the operation of the Mimosa Leisure Estate in the former Clark airbase in Pampanga province, north of Manila. It said it was constrained to rescind the memorandum for "various reasons, " but did not elaborate. Earlier, Mondragon said the agreement involved a new rental and payment scheme of its back rentals to CDC. "Despite this development, both parties continue to seek a "win-win" solution for the Mimosa Leisure Estate," Mondragon said in a disclosure to the stock exchange. The company said its officials have pledged "maximum cooperation in their mutual efforts to quickly locate an investor" for the leisure estate. The government took over Mimosa after Mondragon failed to pay 325 mln pesos in rental arrears. Mondragon is still in talks to restructure its debt of about 7.00 bln pesos. (1 usd = 55.195 pesos) cecille.yap@afxasia.com |
| Philippine central bank restricts US dollar purchases - report |
MANILA (AFX-ASIA) - The central bank has issued a circular prohibiting residents from purchasing US dollars in the spot market if they use them to buy dollar-denominated bonds, the Philippine Daily Inquirer newspaper reported, quoting central bank governor Rafael Buenaventura. "If we talk about capital flight, those who wanted out left already. But some are still converting their pesos to buy ROPs (dollar-denominated Philippine sovereign bonds) and that is why we issued the circular," Buenaventura was quoted to have said. He explained that following the issuance of the circular local investors can no longer finance their investments in ROPs out of dollars bought in the spot market. The peso has further weakened against the US dollar following a sharp decline in the country's July exports. Buenaventura said the absence of dollar inflows and some "non-economic" factors are adding pressure on the currency, which closed at 55.195 yesterday, its fourth straight day of losses. cecille.yap@afxasia.com |
| Philippines' Security Bank plans to raise Tier 2 capital - report |
MANILA (AFX-ASIA) - Security Bank Corp is revisiting plans to issue debt to raise Tier 2 capital this year, the BusinessWorld newspaper reported, quoting industry sources. Sources said the bank is studying whether it could raise up to 4.00 bln pesos in capital, although no definite amount has been finalized to date. The report said Allied Bank Corp and government-sequestered United Coconut Planters Bank are also contemplating issuing debt papers to raise capital. (1 usd = 55.195 pesos) cecille.yap@afxasia.com |
| Philippine Senate approves 25-year franchise for Digitel Crossing - report |
MANILA (AFX-ASIA) - The Senate has granted Digitel Crossing, a joint venture led by the Gokongwei group, a 25-year franchise to operate wire and wireless telecommunication systems in the country, the BusinessWorld newspaper reported. The report said the franchise allows Digitel Crossing to engage in mobile, cellular, paging and fiber optics services, multi-channel distribution, local multi-point distribution, and satellite transmit and receive systems. The company was also given the right to interconnect with other telecommunication firms. Digitel Crossing is a joint venture between Asia Global Crossing Ltd (now Asia Netcom), Digitel Telecommunications Philippines of the Gokongwei group and Broadband Infrastructure Group. The report said Digitel Crossing intends to connect the Philippines with Asia Global's East Asia System Crossing fiber-optic system that links Japan, Hong Kong, Taiwan, Korea, Singapore, Malaysia, China into a "seamless network. " cecille.yap@afxasia.com |
| FEATURES | NEWS/ADVISORY | CHARTS | CONTACT |