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Monday, September 22, 2003
Philippine central bank to penalize banks 'window dressing' finances
Philippine troops on high alert amid reports of anti-Arroyo plots - official
Arroyo to meet Mahathir to speed up peace talks with Philippine Muslim rebels
Philippines' Globe says 2.70-bln pesos bond issue for loan refinancing
Forex - Philippine peso closes firmer on strong yen
Philippines' Swift sees 2004 net profit close to 270 mln pesos vs 2003 loss
Philippine PCGG sees favorable court ruling on disputed San Miguel shares soon
Philippine Globe Telecom appoints Ablaza, Genio as Innove chair, CEO
BROKER CALL - Philippines' Jollibee remains a 'hold' - ING
Philippine Treasury says T-bill, T-bond offers unchanged in Q4
Philippine govt properties in Japan attract 13 prospective investors - DOF
Philippines' Asia United Bank seeks central bank approval for 10 new branches
Philippine Globe Telecom's 2.70 bln peso bonds rated 'PRS Aaa' - PhilRatings
Philippines' PCI Leasing buys back 1.548 mln shares
Manila shares close higher on late buying in select blue chips
Philippine central bank keeps overnight interest rates unchanged
Philippines' Premiere suspended on Nextmobile acquisition - PSE
Philippines' Lepanto says robbed of 21 kg of gold bars in robbery
Philippine Ever-Gotesco unit takes over cinema operations to avoid losses
Philippines' Chinabank 2.46 mln shares crossed midmorning - PSE
STOCK ALERT - Philippines' Piltel extends gain, breaks resistance on outlook
STOCK ALERT - Philippines' Music firmer on catch-up play, outlook
Philippines' BCDA prequalifies 3 Japanese JV firms for road project
Philippine central bank to swap pesos with 200 mln usd from ADB
Rise in July imports shows improved Philippine economic prospects - Neri
Philippines' Ayala Corp swaps Greenbelt lot with Ayala Land shares
Philippines says c/a surplus target's lowering won't hurt credit rating, peso

Friday, September 19, 2003
Philippines' Napocor raises 250 mln usd via 15-yr notes issue - Perez
Philippines' Primetown says court appoints rehabilitation receiver
Taiwan's Mega Financial unit finds new buyers of China Banking shares
Manila shares close weaker on budget deficit, peso concerns
Philippine central bank lifts 6-mth limit on forex forward contracts
Philippine central bank cuts 2003 current a/c surplus target
Manila shares lower late on profit-taking on budget deficit, peso
DATAWATCH - Philippine exports to rebound after July imports rise - GK Goh
Philippine July merchandise imports 3.23 bln usd, up 1.30 pct yr-on-yr

September 17 - 18 
September 15 - 16 
September 10 - 12 
September 8 - 9 
September 3 - 5 
September 1 - 2 


 

Philippine central bank to penalize banks 'window dressing' finances


     MANILA (AFX-ASIA) - The Monetary Board, the highest policy-making body of the central bank, will penalize banks charging provisions for probable loan losses to accounts other than operating expenses for the same period, acting central bank governor Alberto Reyes said.
     The new policy effectively prohibit banks from their normal practice of "window dressing" their finances by charging loan loss provisions for the current year from earnings or surplus made in the previous year.
     Erring banks will face the maximum penalty of 30,000 pesos a day from the time the offense was committed until such time it was corrected.
     Auditing firms approving such practice shall also face sanctions from either the central bank or the Professional Regulatory Commission.
     "Aside from the fine, we are also prepared to slap administrative sanctions like suspension of privileges to rediscount and to tap other central bank facilities," Reyes said.
     afxmanila@afxasia.com

 

Philippine troops on high alert amid reports of anti-Arroyo plots - official


     MANILA (AFX-ASIA) - Troops have been placed on heightened alert to thwart possible destabilization moves while President Gloria Arroyo visits the troubled south, a military spokesman said.
     Intelligence reports point to unidentified groups plotting to stage anti-Arroyo rallies around the capital, including near a historic shrine that served as a staging point for popular uprisings that ousted former president Joseph Estrada in 2001 and dictator Ferdinand Marcos in 1986.
     "The AFP (armed forces) declared the red alert status effective 4:00 pm today (0800 GMT)," military spokesman Lieutenant Colonel Daniel Lucero said.
     "This is to prepare for any eventuality that may arise during the absence of the president and this is also a reaction to some intelligence reports that there are some groups planning to conduct rallies during her absence," he said.
     Arroyo left today for a short trip to check on anti-terror operations in the southern Philippines. She is due back in Manila tomorrow.
     Lucero said a special military task force has been activated to thwart anti-Arroyo moves, and a battalion-sized unit has been deployed to the military headquarters as a back-up force.
     "We just want to have enough troops to assist in crowd control in case we need these groups to join in maintaining peace and order in Metro Manila, " Lucero said, but added that intelligence operatives are still trying to determin e which specific groups are involved in the plot.
     In August, Arroyo quashed an uprising by more than 300 soldiers who had accused her and other top military officers of corruption. Government contends it was part of a larger plot to assassinate Arroyo and replace her with a 15-man junta.
     Leaders of the uprising have all been jailed, while others who were only duped into joining were later freed. Rumors of continuing coup plots, however, have been persistent, forcing Arroyo to constantly check with military officials and seek support from retired generals.

 

Arroyo to meet Mahathir to speed up peace talks with Philippine Muslim rebels


     ZAMBOANGA, Philippines (AFX-ASIA) - Philippine President Gloria Arroyo said she would meet with Malaysian Prime Minister Mahathir Mohamad to speed up the resumption of peace talks with local Muslim rebels on the sidelines of the UN General Assembly gathering in New York.
     "I'm going to the United Nations, I'm going to talk with Prime Minister Mahathir about our peace process," Arroyo said in a visit to the southern island of Jolo, long a stronghold of Muslim separatist guerrillas.
     Both leaders are expected to attend the UN meeting on Sept 25.
     Malaysia is hosting the revival of formal peace talks between the Philippine government and the Moro Islamic Liberation Front (MILF), the main Muslim separatist group in this country.
     Officials earlier said Arroyo was expected to ask Mahathir to host the talks ahead of the Organization of Islamic Conference (OIC) summit to be hosted by Malaysia in the second week of October.
     Manila and the 12,500-strong MILF signed a ceasefire on July 18 but the reopening of formal talks has been repeatedly delayed by technicalities.

 

Philippines' Globe says 2.70-bln pesos bond issue for loan refinancing


     MANILA (AFX-ASIA) - Globe Telecom Inc said it would use the proceeds of a planned 2.70-bln peso bond issue for loan refinancing.
     Philippine Ratings Services Corp assigned the highest rating of "Aaa" on the issue to signify that it carries the smallest degree of investment risk.
     "We are proud to have received an affirmation of Globe's strong credit position from PhilRatings. We hope that this show of confidence will have a favorable impact on the company's 2.70 bln peso bond issue," Globe president and chief executive officer Gerardo Ablaza Jr said in a statement.
     "We believe that the superior rating we have earned reflects well on the company's delivery of solid financial results and strong growth prospects."
     He said the rating also "paves the way for even greater access to capital going forward."
     Globe did not disclose the timetable for the bond issue, which has yet to be registered with the Securities and Exchange Commission.
     Globe is the country's second largest mobile phone service provider. Its major shareholders include Ayala Corp, Singapore Telecommunications, and Deutsche Telekom.
     (1 usd = 55.07 pesos)
     edelacruz@afxasia.com

 

Forex - Philippine peso closes firmer on strong yen


     MANILA (AFX-ASIA) - The peso closed firmer, on a boost from the Japanese yen, which was stronger against the US dollar after finance ministers of G7 member countries called on Asian governments to adopt flexible exchange rates, dealers said.
     The peso closed at 55.070 after trading at range of between 54.960 and 55. 100 on volume of 92.000 mln usd. It closed at 55.165 last Friday.
     "The peso's performance was at par with other currencies in the region and, in particular, driven by the yen in the absence of fresh news on the domestic front," a local bank dealer said.
     The yen surged against the dollar to 111.380, its highest level since Dec 2000, in early trade on speculation that Japan may not act to weaken its currency after Saturday's meeting in Dubai of G7 finance ministers and central bank chiefs.
     However, local dealers see the peso's gains to be temporary and expect demand for the US dollar to come in as early as tomorrow.
     The peso is seen trading at 55.100-55.200 tomorrow, although the performance of other regional currencies may continue to dictate momentum.
     cecille.yap@afxasia.com

 

Philippines' Swift sees 2004 net profit close to 270 mln pesos vs 2003 loss


     MANILA (AFX-ASIA) - Swift Foods Inc said it expects to book a net profit of close to 270 mln pesos in 2004, turning around from a projected net loss of 150 mln this year on the back of improved sales.
     It said sales in 2004 are expected to reach close to 4.50 bln pesos.
     The company, in a disclosure to the stock exchange, said it would expand its operations in Cagayan de Oro province in the southern Philippines, and would need additional investments for this.
     It did not say how much investments would be made and how the money would be raised. The company, however, said it is looking at third parties or its current business partners for this expansion project.
     Swift said it plans to expand the capacities of its contract growing base, hatchery facilities, further processing capability and other support facilities.
     The food manufacturer booked a net loss of 121.00 mln pesos for the first quarter to March, lower than the year-earlier loss of 253.00 mln pesos, following lower sales volume and low selling prices of poultry products.
     In 2002, its net loss was recorded at about 700 mln pesos.
     (1 usd = 55.07 pesos)
     edelacruz@afxasia.com

 

Philippine PCGG sees favorable court ruling on disputed San Miguel shares soon


     MANILA (AFX-ASIA) - The Presidential Commission on Good Government (PCGG), which is holding ill-gotten assets from the Marcos dictatorship, said it expects the Sandiganbayan anti-graft court to rule in favor of the government on disputed shares in San Miguel Corp in the next few months.
     "We expect a ruling in civil case 33-F...in the next few months, I hope. 33-F involves ownership of San Miguel Corp," PCGG commissioner Ruben Carranza told a forum staged by the Foreign Correspondents Association of the Philippines.
     The government has been contesting ownership of a 47 pct block of shares in San Miguel, the country's biggest food and beverage conglomerate. It alleges that company chairman and chief executive officer Eduardo Cojuangco Jr had used levies collected from coconut farmers during the Marcos administration to buy the shares.
     The courts have allowed Cojuangco to have voting rights for a 20 pct block of the shares, while the Sandiganbayan has yet to rule on the other 27 pct.
     "We are confident that the Sandiganbayan will rule not only with respect to that 27 pct that is directly registered (using the) coconut levy, but even as to the 20 pct Mr. Cojuangco had registered in his own name," Carranza said.
     He said he expects Cojuangco to be forced to relinquish control over the disputed San Miguel shares, given the Supreme Court's decision in July to strip Cojuangco of control of United Coconut Planters Bank, which was also allegedly acquired using the so-called coco levy funds.
     UCPB is the administrator of the 27 pct block of San Miguel shares being held by the commission.
     Carranza said the government has filed eight civil cases against Cojuangco involving alleged misuse of the coco levy funds worth an estimated "150 bln pesos in ill-gotten wealth, the largest part of which of course is the San Miguel block of shares."
     Cojuangco, who has been considering running in the 2004 presidential elections, said he would look at all options to keep his shares in San Miguel and UCPB.
     "A Cojuangco candidacy should have no legal implications, no legal consequences on the litigation...(but) a Cojuangco presidency is another story altogether," Carranza said.
     "We are the Presidential Commission on Good Government. Can you imagine a PCGG headed by the very person the PCGG is going after?"
     (1 usd = 55.01 pesos)
     afxmanila@afxasia.com

 

Philippine Globe Telecom appoints Ablaza, Genio as Innove chair, CEO


     MANILA (AFX-ASIA) - Globe Telecom said its board of directors has appointed Globe Telecom president Gerardo Ablaza and Isla Communications chief operating officer Gil Genio as chairman and chief executive officer of Innove Communications Inc, respectively.
     Innove, formerly know as Islacom, is a wholly-owned unit of Globe and has more than 24.00 bln pesos in assets and 8.00 bln pesos in annual revenues, 2. 00 bln in annual operating profit and zero debt. It offers voice, private data networks and internet services to individuals and corporate clients.
     "With the transition of Innove now almost complete, Gil's appointment is intended to provide strong and focused leadership to the new initiatives of the new company," Ablaza said in a statement.
     Aside from Ablaza and Genio, also elected board members of Innove are Delfin Gonzalez, Rodolfo Salalima and Cesar Maureal.
     "The creation of a separate board and the appointment of a new CEO for Innove will create a sufficient level of autonomy for Innove to set its own direction while still being ensured of an adequate oversight by Globe and its shareholders," Globe Telecom said in the statement.
     (1 usd = 55.07 pesos)
     afxmanila@afxasia.com

 

BROKER CALL - Philippines' Jollibee remains a 'hold' - ING


     MANILA (AFX-ASIA) - ING Financial Markets said it is maintaining its "hold" rating on Jollibee Foods Corp, given its sluggish sales growth in the third quarter, a slowing branch expansion and lower earnings potential in the near term.
     In a research note, ING said it has revised down its 12-month target price per share for Jollibee to 18.00 pesos from 16.00. The stock closed at 18.00 pesos today.
     The overall picture is still fairly sluggish as Jollibee remains negative, ING said, adding that restaurants account for nearly 70.00 pct of group sales, making them its major growth driver.
     It noted Jollibee's third quarter same-store sales growth improved relative to the previous quarter's decline of 2.30 pct, but still remained negative.
     The company's Greenwich Pizza restaurants have posted positive same-store sales growth in the third quarter from a decline of 8.40 pct in the second, while Chowking continues to show positive same-store sales growth.
     ING also Jollibee's third-quarter performance as far as branch expansion is concerned has also slowed slightly to a rate of four net new stores per month from nearly six a month in the second quarter.
     The company opened 43 new stores for the entire chain during the January to August period, versus its full-year target of 60-80 store openings. However, eight stores were closed during the same period.
     "Management is targeting to start operation of Jollibee's third commissary next month, which is a six-hectare facility in Laguna. This will improve cost efficiency over the long term as it will support store expansion, with current Jollibee commissaries in Pasig and Cebu nearing capacity limits," ING said.
     However, it noted that the new commissary will have a negative impact on the company's earnings in the near term due to depreciation.
     ING said it expects Jollibee's margins to be "squeezed" starting in the fourth quarter and face further pressure from increased raw material costs due to the peso's weakness.
     Still, ING lauded Jollibee's cautious stance in expanding overseas.
     "The company is still market-testing areas for future overseas expansion. Most significant are China for the Jollibee restaurant chain and Indonesia for the Chowking restaurant chain," ING said.
     afxmanila@afxasia.com

 

Philippine Treasury says T-bill, T-bond offers unchanged in Q4


     MANILA (AFX-ASIA) - The Bureau of Treasury (BTr) said it will keep the volume of T-bill and T-bond offers at regular auctions at 9.50 bln pesos and 3.00 bln pesos, respectively, during the fourth quarter.
     This is to maintain its flexibility in rejecting high bids in the future, it said.
     "We decided to keep (the levels unchanged) in the fourth quarter. We want to have leeway for future rejection," National Treasurer Sergio Edeza said.
     After allowing T-bill rates to rise across the board at the Sept 15 auction, a Treasury official said they were looking at the possibility of reducing the volume of both T-bill and T-bond offers for the last quarter given the government's "healthy" cash position at the moment.
     The government also offers 3.00 bln pesos worth of T-bonds weekly, in tenors of three, five, seven, and sometimes 10 and 20 years.
     It offers 4.00 bln pesos worth of 91-day bills, 2.50 bln worth of 182-day bills, and 3.00 bln worth of 364-day bills at the fortnightly auction.
     The government cancelled regular bond auctions early this month to give way to the offering of five-year and seven-year promissory notes. It had raised nearly 20.00 bln pesos from the Sept 8 and 9 notes offers.
     (1 usd = 55.01 pesos)
     afxmanila@afxasia.com

 

Philippine govt properties in Japan attract 13 prospective investors - DOF


     MANILA (AFX-ASIA) - A total of 13 prospective investors have so far expressed interest in bidding for the development of four government properties in Japan, the Department of Finance (DOF) said.
     The finance department's bids and awards committee said the idle properties located in Tokyo and Kobe will be developed through the build-operate-transfer (BOT) scheme.
     The DOF did not identify the interested parties.
     A preliminary conference for prospective applicants has been scheduled for tomorrow, while pre-qualified interested bidders will be announced on Oct 14, the finance agency said.
     The bids and awards committee has appointed TCGI Engineers-Yoshi Kankyo Kentiku Sekkei, an engineering consultancy group, to advise the government on the "optimum" development for the properties and to design parameters for the consular offices and ambassador's residence to be located in one of the properties.
     The consultancy firm will also conduct market appraisals for the properties and prepare the bid documents, terms of reference and closing contracts for the BOT scheme.
     The finance department said any proposal to develop the properties will have to be approved by the president.
     afxmanila@afxasia.com

 

Philippines' Asia United Bank seeks central bank approval for 10 new branches


     MANILA (AFX-ASIA) - Asia United Bank is seeking central bank approval for its plan to put up 10 new branches to expand its nationwide network, bank first vice president Rojo Fernandez said.
     The medium-sized AUB, which currently has 26 branches, believes that setting up new branches is more economical than acquiring those of other banks, which is a common practice among a few local banks.
     The approval of AUB's application appears uncertain, however, since the central bank has yet to lift the moratorium on the establishment of new bank branches.
     The central bank, which has been encouraging banks to consolidate, prefers to see banks merging their resources or taking over and absorbing weak players.
     AUB is hoping its net profit this year will reach 400 mln pesos, relatively flat year-on-year, Fernandez said.
     (1 usd = 55.01 pesos)
     afxmanila@afxasia.com

 

Philippine Globe Telecom's 2.70 bln peso bonds rated 'PRS Aaa' - PhilRatings


     MANILA (AFX-ASIA) - Philippine Rating Services Corp said it has assigned a "PRS Aaa" rating on Globe Telecom Inc's planned 2.70 bln peso bond issue, which is still in the process of registration with the Securities and Exchange Commission.
     "The issue has the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secured," PhilRatings, an affiliate of Standard & Poor's, said.
     The rating agency said it considered Globe's strong position in the cellular market.
     It expects Globe's first half to June net operating revenue of 24.00 bln pesos and net profit of 4.40 bln to be sustained as the company continues to expand outside metropolitan Manila and introduce new products and services.
     "With a subscriber base of about 7.30 mln as of June 2003, Globe has a 41. 00 pct market share in an industry with a strong two-player structure and the growth of which has defied the over-all sluggishness of the Philippine economy," PhilRatings said.
     It said Globe's cash flow protection measures are strong and its debt level will continue to be manageable.
     PhilRatings said increased competition in the cellular market over the medium to long-term as well as the settlement of the company's ownership issue following Deutsche Telekom's plan to sell its stake are not expected to adversely affect Globe's credit standing.
     (1 usd = 55.01 pesos)
     afxmanila@afxasia.com

 

Philippines' PCI Leasing buys back 1.548 mln shares


     MANILA (AFX-ASIA) - PCI Leasing said it bought back 1.548 mln shares from the market on Sept 19.
     The shares were purchased at 1.30 pesos each or a total of 2.012 mln pesos.
     PCI Leasing closed down 0.02 pesos at 1.30 on 1.55 mln shares.
     (1 usd = 55.01 pesos)
     afxmanila@afxasia.com

 

Manila shares close higher on late buying in select blue chips


     MANILA (AFX-ASIA) - Share prices closed slightly higher on late buying in select blue chips after directionless trade earlier, dealers said.
     They said investors are generally reluctant to take positions at the moment in the absence of fresh leads.
     The composite index closed up 4.19 points, or 0.32 pct, at the day's high of 1,314.00, on volume of 407.66 mln shares worth 1.92 bln pesos. It traded at a low of 1,307.68.
     They said large volumes of cross sales in China Banking Corp, worth a total of 1.62 bln pesos, boosted total turnover.
     In the broader market, gainers led losers 28 to 21, while 48 stocks were unchanged.
     "There was late buying, particularly in select blue chips, including Meralco. Investors are keen to accumulate stocks if the index is near 1,300. 00 points, suggesting strong support at that level," Accord Capital Equities research consultant Ron Rodrigo said.
     "We're expecting the market to consolidate this week with an upward bias, although a deeper correction below the 1,300.00 level is not totally ruled out."
     Westlink Global Equities chairman Rommel Macapagal said the market moved in a narrow range, in the absence of a definite direction and fresh leads.
     "I think the market is trying to build a base and will just trade between 1,300.00 and 1,320.00 points in the interim."
     Chinabank was top traded and unchanged at 660.00 pesos following cross transactions. No other details were immediately available.
     Bank of the Philippine Islands rose 0.50 to 43.00 on volume 824,800 shares.
     Pilipino Telephone was up 0.07 pesos at 0.74 on 44.73 mln shares, extending gains after breaking resistance at 0.67 amid a positive outlook for the local wireless industry.
     Manila Electric B, open to foreign investors, gained 1.25 to 24.25, while Meralco A rose 0.75 to 16.00.
     Meralco parent First Philippine Holdings was up 0.25 at 18.25.
     SM Prime was up 0.10 at 6.50 on 4.44 mln shares.
     Ayala Land was unchanged at 6.70 on 1.8 mln shares, while parent Ayala Corp fell 0.05 to 4.95 on 4.10 mln shares.
     Philippine Long Distance Telephone eased 5.00 to 655.00.
     Metro Pacific was up 0.02 at 0.32 on 26.27 mln shares.
     The all-shares index was up 4.43 points at 818.30.
     The commercial-industrial index rose 4.25 to 1,908.01, while property gained 4.03 to 596.56.
     Mining rose 14.79 to 1,250.09, oil fell 0.01 to 1.37 and banking and financial services gained 1.95 to 440.06.
     (1 usd = 55.01 pesos)
     edelacruz@afxasia.com

 

Philippine central bank keeps overnight interest rates unchanged


     MANILA (AFX-ASIA) - The central bank said its policy-making Monetary Board left its key overnight interest rates unchanged at today's monthly policy review.
     The central bank's overnight borrowing and lending rates stay at 11-year lows of 6.750 pct and 9.000 pct, respectively.
     afxmanila@afxasia.com

 

Philippines' Premiere suspended on Nextmobile acquisition - PSE


     MANILA (AFX-ASIA) - The Philippine Stock Exchange said it has suspended from today trading in Premiere Entertainment Productions Inc (PEP) shares after the company announced it will acquire a controlling stake in Nextmobile Inc for 6.582 bln pesos.
     The PSE said its decision is in line with disclosure rules on substantial acquisitions and reverse takeovers.
     "Trading of PEP shares shall be suspended starting today ... until the terms and conditions of the transaction, details pertaining to the business or project acquired are actually disclosed," the PSE said.
     The PSE is also asking first the latest audited financial statements of Nextmobile.
     PEP this morning said its board of directors approved the company's acquisition of a controlling interest in Nextmobile through the issue shares of stock of the company.
     Nextmobile is engaged in the management and operation of the Nextel Radio-Phone Network.
     In a disclosure to the stock exchange, the former movie producer said its board also approved the change in its primary business purpose to telecommunications from entertainment.
     Premiere will also implement a capital restructuring exercise to decrease its authorized capital to 500.00 mln pesos from 1.00 bln in order to lower its capital deficit.
     From 500.00 mln pesos, it will then raise its capital to 7.00 bln, through the acquisition of a controlling stake in Nextmobile.
     Premiere gave no other details on the deal with Nextmobile.
     (1 usd = 55.03 pesos)
     edelacruz@afxasia.com

 

Philippines' Lepanto says robbed of 21 kg of gold bars in robbery


     MANILA (AFX-ASIA) - Lepanto Consolidated Mining Co said it was robbed of an estimated 21 kilograms of gold bars in a robbery on Saturday.
     During the robbery, a metallurgical engineer and four of the company's security guards were killed.
     The company did not say how much was lost, but said the gold consignment was insured.
     afxmanila@afxasia.com

 

Philippine Ever-Gotesco unit takes over cinema operations to avoid losses


     MANILA (AFX-ASIA) - Ever-Gotesco Resources Holdings Inc said its wholly owned subsidiary Gotesco Tyan Ming Development Inc (GTMDI) has taken over cinema operations at the Ever Gotesco Ortigas Complex to cut revenues losses.
     The decision was made after GTMDI's anchor tenant and cinema operator, Gotesco Investments Inc, ceased to operate due to the adverse impact and proliferation of home videos and cheap pirated videos.
     GTMDI generates an average monthly rental revenue of 606,061 pesos or 7. 27 mln pesos annually from the cinemas, which represents 5.00 pct of its total annual revenues and 2.25 pct of the parent firm's consolidated revenue.
     "Realizing the economic contributions of the cinemas to the mall as a whole and to lessen the impact of its rental revenue loss in particular, GTMDI management with the approval of its board of directors, decided to retain and take over the operations of the cinemas," Ever-Gotesco said in a disclosure to tbe stock exchange.
     It said GTMDI estimates a monthly net profit of 0.36 mln pesos from an estimated monthly gross revenue of 3.00 mln pesos.
     The cinemas are expected to resume operations before the end of the year.
     (1 usd = 55.036 pesos)
     cecille.yap@afxasia.com

 

Philippines' Chinabank 2.46 mln shares crossed midmorning - PSE


     MANILA (AFX-ASIA) - China Banking Corp's 2.46 mln shares worth a total of 1.623 bln pesos were sold in two cross transactions midmorning, data from the Philippine Stock Exchange show.
     The shares were sold at 660.00 pesos each, with the transactions handled by Lucky Securities Inc.
     No other details were available.
     Rizal Commercial Banking Corp earlier said it would make additional investments in Chinabank by purchasing 1.64 mln of its shares. It has not disclosed other details of its move.
     (1 usd = 55.03 pesos)
     edelacruz@afxasia.com

 

STOCK ALERT - Philippines' Piltel extends gain, breaks resistance on outlook


     MANILA (AFX-ASIA) - Pilipino Telephone Corp shares extended gains after the stock breached its resistance level, boosted by the positive outlook on the mobile services sector, dealers said.
     Piltel was up 0.04 pesos, or 5.97 pct, at 0.71 on volume of 23.45 mln shares.
     It broke resistance at 0.67 pesos, said Westlink Global Equities chairman Rommel Macapagal.
     The mobile subscriber base of the PLDT group, which includes Smart Communications and Piltel, exceeded 11.00 mln as of end-August from over 10. 30 mln at end-June.
     Piltel has narrowed its net loss to 535.00 mln pesos in the first half to June from a net loss of 1.98 bln in the year-earlier period on the back of its growing Talk 'N Text wireless brand subscribers, totalling 2.20 mln as of end-June.
     (1 usd = 55.03 pesos)
     edelacruz@afxasia.com

 

STOCK ALERT - Philippines' Music firmer on catch-up play, outlook


     MANILA (AFX-ASIA) - Music Corp's share price was higher midmorning after lagging the recent rally in technology-related stocks and of the entire local market, dealers said.
     They said the outlook for Music is also looking positive after the company last week said its semiconductor operation received orders totaling more than 830,000 usd for the month of August.
     That was 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 was up 0.02 pesos, or 4.76 pct, at 0.43 on volume of 5.55 mln shares.
     Music 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.
     The company also said last week that it would seek shareholders' approval for its plan to raise 1.00 mln usd in additional capital and change its corporate name to Music Semiconductors Corp.
     (1 usd = 55.03 pesos)
     edelacruz@afxasia.com

 

Philippines' BCDA prequalifies 3 Japanese JV firms for road project


     MANILA (AFX-ASIA) - The state-run Bases Conversion Development Authority (BCDA) said three groups of Japanese contractors have prequalified for the construction of the first phase of the Subic-Clark-Tarlac Expressway Project worth 19.00 bln pesos.
     Prequalified bidders include the MTI group composed of the Maeda Corp, Toyo Construction Co Ltd and Ishikawa-Harima Heavy Industries Co Ltd; the Hazama Corp, Taisei Corp, and Nippon Steel Corp group; and the KOJM group, including Kajima Corp, Obayashi Corp, JFE Engineering Corp, and Mitsubishi Heavy Industries.
     The project's first phase involves the construction of a 44-kilometer four-lane super highway that will connect the Clark special economic zone in Pampanga to Tarlac province.
     Construction will start in February or March next year and will be completed by 2006, the BCDA said in a statement.
     (1 usd = 55.165 pesos)
     edelacruz@afxasia.com

 

Philippine central bank to swap pesos with 200 mln usd from ADB


     MANILA (AFX-ASIA) - The central bank said it has approved a deal to swap its pesos with dollars from Asian Development Bank worth 200 mln usd.
     Central bank deputy governor Amando Tetangco Jr said the swap enables the central bank to boost its dollar reserves, while the Manila-based lending agency will be able to lend peso-denominated funds to local companies.
     "We want this to happen within the year to boost the gross international reserves," he told reporters.
     The central bank's GIR stood at a preliminary 16.17 bln usd as of end-August. It aims to keep the GIR within 14.00-15.00 bln usd this year.
     afxmanila@afxasia.com

 

Rise in July imports shows improved Philippine economic prospects - Neri


     MANILA (AFX-ASIA) - Economic Planning Secretary Romulo Neri said the country's economic growth prospects in the coming months have improved, citing the 1.30-pct year-on-year growth in imports in July.
     He noted that the growth in imports in July came largely from capital goods, particularly telecommunications equipment and electrical machinery.
     "This indicates that the fast pace of growth in telecommunication is expected to continue in the future," he said in a statement.
     Neri also saw growth in other sectors like paper and non-metallic imports because of construction-related growth and ahead of the elections next year when paper supply is expected to pick up.
     However, he noted that the growth in imports was capped by the continued decline in imports of raw materials for the manufacture of electronic products.
     "Although sales of semiconductors are recovering in the US, our exports and imports for the manufacture of electronics are lagging behind the recovery as demand continues to be met by inventory drawdown," he said.
     Still, he said a recovery in imports of such raw materials later this year or early 2004 is expected as inventories are to decline further.
     He said that imports of minerals and fuels also declined as a result of inventory adjustment.
     "Imports of fuel rose (previously) to achieve a comfortable level of supply and these inventories are now being drawn down," he said.
     Trade and Industry Secretary Manuel Roxas II said he expects exports to pick up towards the end of the year - after a flat performance in the first seven months of the year - as businesses start to replenish their inventories.
     edelacruz@afxasia.com

 

Philippines' Ayala Corp swaps Greenbelt lot with Ayala Land shares


     MANILA (AFX-ASIA) - Ayala Corp said it will receive 63.375 mln common shares of Ayala Land Inc in exchange for its 2,340-square meter lot at Greenbelt in Makati City.
     Ayala Land's board of directors today approved the issuance of new shares, Ayala Corp said in a statement.
     "The issuance by Ayala Land of the new shares is in pursuance to an earlier resolution of its stockholders approving the authority to issue new shares in exchange for properties needed ... for its development and landbanking activities," Ayala Corp said.
     It said the swap will enable its property unit to consolidate its ownership of the 11-hectare Greenbelt property, the site of upscale entertainment centers and shopping malls.
     The Greenbelt area is currently undergoing the initial phase of major redevelopment.
     edelacruz@afxasia.com

 

Philippines says c/a surplus target's lowering won't hurt credit rating, peso


     MANILA (AFX-ASIA) - The central bank said it does not expect the lowering of this year's current-account surplus target to lead to credit-rating downgrades for the Philippines or further weaken the peso.
     Central bank deputy governor Amando Tetangco Jr said the country's sound economic fundamentals should help offset whatever negative impact the move may have on sentiment.
     The central bank has lowered its 2003 current-account surplus target to 1. 70 bln usd from 2.35 bln due to weak exports.
     Merchandise exports in July declined 7.90 pct year-on-year to 2.97 bln usd. In the January-July period, exports grew 0.50 pct to 20.04 bln usd from 19.93 bln previously.
     The central bank's new current-account surplus target is based on a projected 3.00 pct growth in exports this year, lower than the previous assumption of 5.00 pct, it said.
     However, it sees full-year imports growing 8.00 pct from last year, higher that its previous projection of 7.00 pct.
     The central bank said it is keeping its full-year balance-of-payments (BOP) target at a deficit of 1.10 bln usd.
     "I don't think this will have an impact on the credit rating for the country given that there are positive developments (to consider) like the continuing growth in the economy, the low inflation rate, the maintenance of a comfortable level of international reserves, the external debt being biased significantly toward medium- to long-term loans, and the improvement in the fiscal performance relative to the target this year.
     He noted that they even discussed the external accounts projections with a team of Standard & Poor's analysts who were in Manila early this week.
     "They have not changed the rating for the Philippines and they have maintained the outlook as stable also," he said on ABS-CBN television.
     He said the lower current-accout surplus target should also not affect sentiment on the peso.
     "When you look at the behavior of the exchange rate, that would depend on flows not only in the current account account but also in the capital and financial account," he said.
     "(But) there's really no change in the overall (BOP) picture," he said.
     Tetangco said the central bank wants to be "conservative" in projecting a 3.00 pct growth for exports.
     The projection implies a 6.50 pct in exports during the last five months of the year, he said.
     He said exporters, however, are still optimistic about seeing a double-digit growth this year, particularly in electronics.
     "If that happens, then the 3.00 pct that we project will obviously be on the low side," he said.
     Although exports are seen to be weaker than originally projected, Tetangco said the central bank is now looking at higher inflows in the form of remittances from Filipino workers abroad.
     "Originally we projected zero growth for 2003, but for January to July, we've seen a 6.00 pct year-on-year growth for overseas remittances so we are now using that instead of zero growth," he said.
     On the capital and financial account side of the BOP, Tetangco said the central bank also took into account weak inflows due to uncertainties in the early part of this year amid the Iraq crisis, the SARS outbreak, and the "political noise" ahead of next year's elections.
     Central bank and national government borrowings, however, should offset those weak capital inflows, he said.
     "The central bank has taken a cautious stance by going to the market to borrow 500 mln usd (early this year) and we understand that the national government is also planning to pre-fund its 2004 (funding) requirements in the latter part of the year and possibly borrow about 1.00 bln usd," he said.
     "This would offset the reduction in the current account surplus projection and would leave the overall BOP projection still at 1.10 bln usd deficit."
     Hopefully, he said Philippine exports will rebound in the coming months and yield bigger inflows.
     "We've seen encouraging signs particular;y with the US growth starting to pick up. We've also seen upward projection in growth projection in Japan. (If these continue) then we'll have better demand for exports to these markets," Tetangco said.
     edelacruz@afxasia.com

 

Philippines' Napocor raises 250 mln usd via 15-yr notes issue - Perez


     MANILA (AFX-ASIA) - State-owned National Power Corp (Napocor) has raised 250 mln usd in fresh funds via the issuance of 15-year notes guaranteed by the US-based Overseas Private and Investment Corp (OPIC), Energy Secretary Vicente Perez said.
     The notes were issued by a special purpose vehicle called Philippine Power Trust I, and proceeds of the OPIC-insured trust certificates issue will be lent to Napocor.
     Rated "AAA" by Standard & Poor's, the trust certificates were priced with a fixed coupon rate of 5.40 pct per annum, representing a spread of 120 basis points over the benchmark 10-year US Treasury notes, Perez said.
     The cost to Napocor, inclusive of the OPIC insurance premiums and other structural-related costs, is 7.14 pct per annum or 84 basis points below the prevailing secondary market yields of comparable sovereign bonds, he said.
     Under these terms, Power Sector Assets and Liabilities Management Corp (PSALM) president Edgardo del Fonso said Napocor was able to save at least 100 basis points or 2.50 mln usd per annum, as against a new sovereign issue.
     Bear, Stearns & Co Inc arranged the notes issue.
     PSALM is responsible for privatizing Napocor's power generation and transmission assets and will handle its residual assets and liabilities on completion of the exercise.
     Philippine authorities had to create a US-based grantor trust to be able to carry out the notes transaction after Napocor early this year failed to borrow at favorable terms in the international market.
     The national government earlier came to the rescue by raising 750.00 mln usd for the utility through the issue of 10.5-year global bonds.
     Napocor needs 1.20 bln usd to finance this year's operating requirements and refinance loans.
     edelacruz@afxasia.com

 

Philippines' Primetown says court appoints rehabilitation receiver


     MANILA (AFX-ASIA) - Primetown Property Group Inc said a Makati City Regional Trial Court has appointed lawyer Jose Absolom Jocom Jr as the company's rehabilitation receiver.
     Jocom replaced lawyer Ariel Salvador Magno, who declined the appointment, it told the Securities and Exchange Commission.
     Jocom has yet to declare his acceptance of the appointment, Primetown said.
     The court earlier stopped the enforcement of all claims against Primetown in connection with its petition to be placed under rehabilitation.
     afxmanila@afxasia.com

 

Taiwan's Mega Financial unit finds new buyers of China Banking shares


     TAIPEI (AFX-ASIA) - Mega Financial Holding Co (2886.TW) said unit International Commercial Bank of China (ICBC) found new buyers of its holdings in Philippine-based China Banking Corp, after an earlier deal in July was called off.
     ICBC booked a capital gain of 860.24 mln twd from the sale of 2.46 mln shares in China Banking for 29.52 mln usd to Columbus Atlantic Fund Ltd and Symmetrix Capital Global Ltd today, Mega Financial said in a statement.
     Based on its July 23 statement, ICBC expected to book a capital gain of 741.23 mln twd, or 1.18 bln pesos, from the disposal of 2.05 mln China Banking shares to Pan Malayan Management & Investment Corp for 1.33 bln pesos.
     Mega Financial closed down 0.10 twd at 17.40.
     (1 usd = 34.10 twd)
     philip.wang@afxasia.com

 

Manila shares close weaker on budget deficit, peso concerns


     MANILA (AFX-ASIA) - Share prices closed weaker as investors cashed in on recent gains on fresh concerns over the government's budget deficit and the peso's continuing volatility, dealers said.
     They said the market also had to undergo a technical correction following significant gains that lifted the composite index above 1,300 points this week.
     The key index closed down 9.91 points or 0.75 pct at 1,309.81 on volume of 350.72 mln shares valued at 458.13 mln pesos. It traded between 1,307.41 and 1,320.57.
     In the broader market, losers led gainers 30 to 24, with 42 stocks unchanged.
     The Department of Finance announced yesterday that the budget deficit for the eight months to August stood at 113.50 bln pesos, below the ceiling of 127.50 bln.
     For the month of August, however, the deficit shot up to 18.17 bln pesos, exceeding the 8.11 bln ceiling as the government spent more to boost to a slowing economy. It was the first time in five months that the deficit exceeded the monthly ceiling.
     The government nonetheless remains confident it can contain the full-year deficit ceiling at 4.70 pct of GDP or about 202.00 bln pesos.
     At the Philippine Dealing System, the peso averaged 55.246 to the US dollar by noon against yesterday's close of 55.280.
     "The budget deficit and the peso's weakness were used by investors as excuses to take profits," Accord Capital Equities analyst Lawrence de Leon said.
     "This correction, however, is good for the market following those sharp gains early this week."
     Although concerns over the budget deficit have re-emerged, he said investors should also take into account the fact that the cumulative budget gap as of end-August remains within ceiling.
     "It's not really bad especially since the deficit spending is meant to boost the economy, and so long as the deficit will not significantly exceed the ceiling," de Leon said.
     In this light, he said the market is unlikely to drop below 1,300 level again.
     "For next week I think the market will just trade near the 1,300 level as it consolidates," he said.
     Philippine Long Distance Telephone was top traded and down 5.00 pesos at 660 on 130,020 shares. Its affiliate Pilipino Telephone Corp rose 0.02 to 0. 67 on 17.42 mln shares.
     SM Prime was up 0.10 at 6.40 on 11.59 mln shares.
     Bank of the Philippine Islands fell 1.00 to 42.50 on 715,800 shares.
     Ayala Corp closed unchanged at 5.00 on 14.44 mln shares.
     Manila Electric's B shares, available to foreign investors, eased 0.75 to 23.00, while Meralco A was down 0.50 at 15.25.
     Meralco's parent First Philippine Holdings dropped 0.50 to 18.00.
     Globe Telecom eased 25.00 to 665.00.
     The all-shares index was up 4.74 points at 813.87.
     The commercial-industrial index fell 17.55 to 1,903.76.
     Property rose 2.41 to 592.53, while mining was down 1.94 at 1,235.30.
     Oil was up 0.03 at 1.38.
     Banking and financial services shed 4.50 to 438.11.
     edelacruz@afxasia.com

 

Philippine central bank lifts 6-mth limit on forex forward contracts


     MANILA (AFX-ASIA) - The Monetary Board has scrapped the six-month limit on US dollar forward contracts, central bank governor Rafael Buenaventura said.
     The cap was one of the measures imposed from March this year to curb speculation against the peso, which fell to 55.000 against the US unit during that period.
     afxmanila@afxasia.com

 

Philippine central bank cuts 2003 current a/c surplus target


     MANILA (AFX-ASIA) - The central bank said it has had to cut its 2003 current-account surplus target to 1.70 bln usd from 2.35 bln due to weak exports.
     In the January-June period, the current account surplus stood at 868.00 mln usd, down 58.30 pct from last year.
     Merchandise exports in July declined 7.90 pct year-on-year to 2.97 bln usd. In the January-July period, exports grew 0.50 pct to 20.04 bln usd from 19.93 bln previously.
     The central bank's new current-account surplus target is based on a projected 3.00 pct growth in exports this year, lower than the previous assumption of 5.00 pct, it said.
     However, it sees full-year imports growing 8.00 pct from last year, higher that its previous projection of 7.00 pct.
     The central bank said it is keeping its full-year balance-of-payments (BOP) target at a deficit of 1.10 bln usd.
     Weak inflows resulted in a BOP deficit of 414.00 mln usd in August and 653.00 mln usd for January to August, it said earlier.
     The BOP deficit for January to August widened from the 239.00 mln usd recorded for January to July.
     In July, there was a BOP surplus of 377.00 mln usd.
     Despite the changes in the external account targets and projections, central bank governor Rafael Buenaventura said he still expects the peso-dollar exchange rate to average 54.00 to one US unit this year.
     At the Philippine Dealing System, the peso averaged 55.247 to the dollar by noon today against yesterday's close of 55.280.
     afxmanila@afxasia.com

 

Manila shares lower late on profit-taking on budget deficit, peso


     MANILA (AFX-ASIA) - Share prices were weaker late as investors took the worse-than-expected August budget deficit and the peso's continuing volatility as a signal to lock in some of the recent gains, dealers said.
     They added, however, that the market also needed to undergo a technical correction, which began yesterday, after those significant gains.
     At 11.29 am, the composite index was down 7.01 points or 0.53 pct at 1, 312.71 on volume of 270.57 mln shares valued at 255.09 mln pesos. It has traded between 1,308.93 and 1,320.57 so far.
     In the broader market, losers led gainers 23 to 16, with 38 stocks unchanged.
     Dealers said the market is strongly supported at 1,300.
     The Department of Finance announced yesterday that the budget deficit for the eight months to August period stood at 113.50 bln pesos, below the ceiling of 127.50 bln.
     For the month of August, however, the deficit shot up to 18.17 bln pesos, exceeding the 8.11 bln ceiling as the government spent more to boost to a slowing economy.
     It is the first time in five months that the deficit exceeded the monthly ceiling.
     The government nonetheless remains confident it can contain the full-year deficit at 4.70 pct of GDP or about 202.00 bln pesos.
     At the Philippine Dealing System, the peso averaged 55.249 to the US dollar against yesterday's close of 55.280.
     "The budget deficit and weak peso prompted profit-taking. But the market really has to correct after those gains," Citiseconline.com analyst Terence Chan said.
     Philippine Long Distance Telephone was top traded so far and down 5.00 pesos at 660 on 81,150 shares. Its affiliate Pilipino Telephone Corp rose 0. 01 to 0.66 on 12.70 mln shares.
     Bank of the Philippine Islands dropped 0.50 to 43.00.
     Ayala Corp fell 0.05 to 4.95 on 3.20 mln shares.
     Manila Electric's B shares, available to foreign investors, eased 0.50 to 23.25, while Meralco A was down 0.50 at 15.25.
     Meralco's parent First Philippine Holdings dropped 0.50 to 18.00.
     The all-shares index was up 5.57 points at 814.70.
     The commercial-industrial index fell 12.04 to 1,909.27.
     Property rose 3.05 to 593.17, while mining was unchanged at 1,237.24.
     Oil was up 0.03 at 1.38.
     Banking and financial services shed 2.34 to 440.27.
     edelacruz@afxasia.com

 

DATAWATCH - Philippine exports to rebound after July imports rise - GK Goh


     MANILA (AFX-ASIA) - Philippine exports are likely to have rebounded in August or September, after slumping in July, on a recovery in imports in July, GK Goh Securities regional economist Song Seng Wun said.
     The expected recovery in exports will help narrow the trade deficit going forward, he said.
     The National Statistics Office today said merchandise imports rose 1.30 pct year-on-year to 3.23 bln usd in July, after a 3.30 pct year-on-year decline in June.
     In the January to July period, merchandise imports rose 8.50 pct to 21.80 bln usd from 20.08 bln the same period last year.
     The NSO said the Philippines recorded a trade deficit of 265.00 mln usd in July, compared with surplus of 33.00 mln the year-earlier. It reported a trade surplus of 139.00 mln usd in June.
     In the January-July period, the deficit stood at 1.76 bln usd versus the year-earlier deficit of 152.00 mln. In the first half to June, the deficit stood at 1.502 bln usd.
     "The importation of more productive items, such as electronics and industrial equipment, is encouraging and augurs well for the recovery of imports and of exports going forward," Song said.
     Some of the country's imports are used as raw materials for exports.
     The NSO earlier reported that merchandise exports amounted to 2.96 bln usd in July, down 7.90 pct year-on-year. In the January-July period, exports grew 0.50 pct year-on-year to 20.035 bln.
     "We're hopeful that we'll see exports rebound in August or September," he said.
     Electronics imports, which accounted for 47.20 pct of the July bill, rose 3.20 pct year-on-year to 1.52 bln usd.
     Industrial machinery and equipment was third on the imports list with a value of 142.08 mln usd, up 10.00 pct year-on-year.
     edelacruz@afxasia.com

 

Philippine July merchandise imports 3.23 bln usd, up 1.30 pct yr-on-yr


     (Updating with breakdown)
     MANILA (AFX-ASIA) - Merchandise imports rose 1.30 pct year-on-year to 3. 23 bln usd in July, the National Statistics Office (NSO) said.
     In June, merchandise imports fell 3.30 pct year-on-year to 2.92 bln usd.
     In the January to July period, merchandise imports rose 8.50 pct to 21.80 bln usd from 20.08 bln the same period last year.
     The NSO said the Philippines recorded a trade deficit of 265.00 mln usd in July, compared with surplus of 33.00 mln the year-earlier. It reported a trade surplus of 139.00 mln usd in June.
     In the January-July period, the deficit stood at 1.76 bln usd versus the year-earlier deficit of 152.00 mln. In the first half to June, the deficit stood at 1.502 bln usd.
     The NSO earlier reported that merchandise exports amounted to 2.96 bln usd in July, down 7.90 pct year-on-year. In the January-July period, exports grew 0.50 pct year-on-year to 20.035 bln.
     Imports of electronic products accounted for 47.20 pct of July shipments and were valued at 1.52 bln usd, up 3.20 pct year-on-year.
     Mineral fuels and lubricants ranked second with a 9.20 pct contribution valued at 297.77 mln usd, down 18.50 pct year-on-year.
     Industrial machinery and equipment were the third on the imports list at 142.08 mln usd, up 10.00 pct year-on-year.
     The NSO said payments for raw materials and intermediate goods, which accounted for 37.60 pct of total July imports, dropped 5.80 pct to 1.215 bln usd from 1.290 bln previously.
     Capital goods, representing 42.30 pct of total imports, increased 12.10 pct in July to 1.367 bln usd from 1.219 bln last year.
     Imports from the US accounted for 20.80 pct of total July bill, up 7.80 pct year-on-year at 673.81 mln usd. Exports to the US amounted to 658.70 mln usd, yielding a trade deficit of 15.12 mln for the Philippines.
     July imports from Japan accounted for 20.30 pct of the total at 657.43 mln usd. Exports to Japan amounted to 462.96 mln usd, resulting in a trade deficit of 194.47 mln usd for the Philippines.
     Singapore was the third biggest source of imports in July, with payments worth 204.06 mln usd, down 2.70 pct year-on-year, while exports to the city state amounted to 216.00 mln usd. This resulted in a trade surplus of 11.95 mln usd for the Philippines.
     edelacruz@afxasia.com

 


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