Philippines Salcon declares cash dividend, ties up with KEPCO on
power project |
MANILA (AFX-ASIA) - Salcon Power Corp said its board of
directors has approved the declaration of a cash dividend per share
of 0.20 peso, payable on April 30 to stockholders on record as of
April 20.
At a March 31 meeting, the board also ratified Salcon Power's
memorandum of understanding with KEPCO Philippines Corp to conduct a
feasibility study on the construction of a 100-200 megawatt coal
thermal power plant in Cebu province in the central Philippines, the
company added.
KEPCO is the local unit of Korea Electric Power Corp.
(1 usd = 56.275 pesos)
afxmanila@afxasia.com
|
Philippines Aboitiz, Vivant finalize deal on Visayan Electric shares
|
MANILA (AFX-ASIA) - Conglomerate Aboitiz Equity Ventures (AEV)
said it has signed closing documents and complied with conditions
for the settlement of its dispute with Vivant Corp involving shares
in Visayan Electric Co (Veco).
"Aboitiz Equity Ventures Inc and Vivant Corp today completed
the Memorandum of Agreement relating to the management and ownership
of Hijos de F. Escano and Visayan Electric Company Inc," AEV told
the stock exchange.
Under the agreement, the Garcia family of Cebu, major
shareholder of Vivant, will take control of 48 pct of Veco through
its direct ownership of 23 pct and Hijos' 25 pct.
AEV will have 43 pct direct ownership of Veco, the second
largest private electric distribution utility in the country, with
its franchise covering the progressive Cebu island in the central
Philippines.
The Garcias and the Aboitizes will share in the management of
Veco, with the former retaining control of the Veco board.
The dispute arose when Hijos de F Escano, a holding company
owning 51 pct of the outstanding shares in Veco, swapped 30 pct of
its controlling stake in exchange for shares in the Garcia family's
publicly-listed company, Vivant.
Hijos is owned 47 pct by Aboitiz Equity Ventures and 51 pct by
the Garcia family.
AEV had opposed the transaction, which would have resulted in
the dilution of its interest in Veco.
AEV's business interests also cover shipping and transport,
power generation, engineering and construction, industrial gas
production, food, banking and financial services, and real estate
development.
afxmanila@afxasia.com
|
Philippine National Construction appoints chairman Ramos acting
president/CEO |
MANILA (AFX-ASIA) - State-owned Philippine National
Construction Corp (PNCC) said its board of directors has confirmed
the nomination of its chairman, Pastor Ramos Jr, as acting president
and chief executive officer.
He replaces Rolando Macasaet, who has resigned.
PNCC, which is involved in infrastructure and development
construction projects, told the stock exchange that Ramos will take
over Macasaet's posts until his resignation has been accepted by
President Gloria Arroyo.
The company gave no reason for Macasaet's resignation.
afxmanila@afxasia.com
|
Manila shares close higher led by PLDT; index at 3-week high
|
MANILA (AFX-ASIA) - Share prices closed firmer for the fourth
day, powered by Philippine Long Distance Telephone Co's (PLDT)
extended gains on the back of its positive earnings outlook, which
drove its American Depositary Receipts (ADR) higher overnight,
dealers said.
Position-taking in PLDT led to buying into other blue chips,
they said.
The composite index closed up 17.80 points or 1.24 pct at the
day's high of 1,450.91, its highest finish in three weeks, on volume
of 354.06 mln shares worth 591.4 mln pesos. It traded at a low of
1,436.99.
In the broader market, gainers led losers 42 to 17, while 27
stocks were unchanged.
Dealers, however, said the sustainability of these gains is
uncertain as investors will likely take a breather, with only two
sessions next week before the market closes on April 7, 8 and 9 for
the Easter holidays.
Top-traded PLDT was up 15 pesos at 990 on 184,070 shares after
its ADRs rose 0.75 usd to 17.85 in New York overnight.
"I think investors are buying into PLDT ahead of its earnings.
The company is expected to report improved earnings this year on the
strength of (wireless unit) Smart Communications Inc," said Mark
Alan Canizares, an analyst at Citiseconline.com.
Mobile phone firms are expected to post significant gains in
this election year on the forecast surge in text messages.
Filipinos will go to polls on May 10 to elect their president,
vice president, members of Congress and some 17,000 local government
officials.
Smart is also expected to benefit from its possible acquisition
of Pilipino Telephone Corp (Piltel), in which PLDT currently has a
45 pct stake.
Earlier, chairman Manuel Pangilinan said he is comfortable with
analysts' forecasts of a 2004 net profit range of 17-18 bln pesos
for PLDT, although the level could be exceeded if Smart acquires
Piltel's control.
PLDT posted a net profit of 11.2 bln pesos in 2003, nearly four
times the previous year's level, largely on Smart's contribution.
"Investors remain cautious given the political and security
uncertainties, " BPI Securities said in its daily report, adding
that profit-taking is possible ahead of the Easter break.
The Philippine Star daily reported the latest Social Weather
Stations SWS survey showing incumbent Gloria Arroyo, the financial
markets' favorite, still in close fight with movie actor Fernando
Poe Jr for the Philippine presidency ahead of the May polls.
BPI sees the market's support at 1,385 and resistance at 1,455.
"We can expect light trading next week, with a bias for
profit-taking," Citiseconline's Canizares said.
PLDT rival Globe Telecom was up 10.00 at 840.
Ayala Corp was second most active with 19.2 mln shares traded
mostly in cross transactions, but unchanged at 6.10.
Jollibee Foods was up 0.50 at 17.50 following cross sales.
Manila Electric B, available to foreign investors, was up 0.50
at 25, while Meralco A rose 0.25 to 17.25
Bank of the Philippine Islands was up 0.50 at 45.
Petron Corp gained 0.15 to 2.90.
Filinvest Land was up 0.06 at 1.06.
San Miguel B was up 1.00 at 71 after the company projected a
double-digit growth in beer sales in the first quarter. San Miguel A
was up 0.50 at 57.
Mall operator SM Prime was up 0.10 at 6.00.
The all-shares index was up 7.75 points at 940.42.
The commercial-industrial index rose 24.97 to 2,267.76.
Property jumped 12.00 to 520.89, while mining advanced 2.97 to
1,483.28.
Oil was unchanged at 1.12.
Banking and financial services gained 3.54 to 422.43.
(1 usd = 56.24 pesos)
afxmanila@afxasia.com
|
|
MANILA (AFX-ASIA) - Share prices closed higher for the fourth
day, powered by Philippine Long Distance Telephone Co's (PLDT)
extended gains on the back of its positive earnings outlook, which
drove its American Depositary Receipts (ADR) higher overnight,
dealers said.
Investors' position-taking in PLDT led to buying into other
blue chips, they said.
The composite index closed up 17.80 points or 1.24 pct at the
day's high of 1,450.91, its highest finish in three weeks, on volume
of 354.06 mln shares worth 591.4 mln pesos. It traded at a low of
1,436.99.
In the broader market, gainers led losers 42 to 17, while 27
stocks were unchanged.
Dealers, however, said the sustainability of these gains is
uncertain as investors will likely take a breather, with only two
sessions next week before the market closes on April 7, 8 and 9 for
the Easter holidays.
Top-traded PLDT was up 15 pesos at 990 on 184,070 shares after
its ADRs rose 0.75 usd to 17.85 in New York overnight.
(1 usd = 56.24 pesos)
afxmanila@afxasia.com
|
Manila
shares firmer late morning on PLDT rally |
MANILA (AFX-ASIA) - Share prices were higher in late morning
trade amid Philippine Long Distance Telephone Co's (PLDT) gains on
the back of its rosy earnings outlook, which drove its American
Depositary Receipts (ADR) higher overnight, dealers said.
Trading, however, was slow and volume thin ahead of the weekend
and fewer sessions next week with the Philippine financial markets
closed on April 7, 8 and 9 for the Easter holidays.
At 11 am, the composite index was up 12.60 points, or 0.88 pct,
at 1,445. 71 on volume of 158.2 mln shares valued at 355.9 mln
pesos. It has so far moved between 1,436.99 and 1,446.10.
In the broader market, losers were leading gainers 27 to six,
while 24 stocks were unchanged.
PLDT was up 15.00 pesos at 990.00 on 77,420 shares after its
ADRs rose 0. 75 usd to 17.85 in New York overnight.
"I think investors are buying into PLDT ahead of its earnings.
The company is expected to report improved earnings this year on the
strength of (wireless unit) Smart Communications Inc," said Mark
Alan Canizares, an analyst at Citiseconline.com
Mobile phone firms are seen posting significant gains in this
election year on the expected surge in text messages.
Filipinos will go to polls on May 10 to elect their president,
vice president, members of Congress and some 17,000 local government
officials.
Smart is also expected to benefit from its possible acquisition
of Pilipino Telephone Corp (Piltel), in which PLDT currently has a
45 pct stake.
Earlier, chairman Manuel Pangilinan said he is comfortable with
analysts' forecasts of a 2004 net profit range of 17-18 bln pesos
for PLDT, although the level could be exceeded if Smart acquires
Piltel's control.
PLDT posted a net profit of 11.2 bln pesos in 2003, nearly four
times the previous year's level, largely on Smart's contribution.
PLDT rival Globe Telecom was up 10.00 at 840.
Jollibee Foods was up 0.50 at 17.50.
Manila Electric B, available to foreign investors, was up 0.50
at 25, while Meralco A was untraded after closing at 17.00
previously.
(1 usd = 56.25 pesos)
afxmanila@afxasia.com
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Philippines' SPI accepts TH Lee's 87 mln usd acquisition offer
|
MANILA (AFX-ASIA) - SPI Technologies Inc, Asia's largest
independent business process outsourcing (BPO) provider, said its
board of directors unanimously voted to recommend to shareholders
the acceptance of TH Lee Putnam Venture's offer to acquire all of
SPI's issued and to be issued shares.
SPI's major shareholders, holding 71 pct of the company's total
shares, have agreed on a selling price of 87 mln usd.
TH Lee, the New York-based technology-focused private equity
firm which manages 1.1 bln usd in capital commitments, will commence
its tender offer on or around April 12, SPI said in a statement.
"The (SPI) board has recommended acceptance of the offer
because we believe it is an attractive one as confirmed by the
fairness opinion of (accounting firm) Punongbayan & Araullo, and
because we are confident that with the support of a strong investor
such as TH Lee, the company's prospects will continue to be bright,"
said SPI chairman Alfredo Ayala.
SPI president and chief executive officer Ernest Cu said the
company expects to capitalize on TH Lee's expertise and focus in the
BPO sector "to further enhance our leading position in the global
market."
"We look forward to the next phase of moving towards our
ultimate goal of being management's partner in taking SPI to the
next level," said Ramanan Raghavendran, managing director of TH Lee.
SPI currently has nine sales and customer support offices in
the US and Europe, and nine dedicated production facilities and
nearly 4,000 staff members in the Philippines, China, India and
Vietnam.
SPI will have a total of 312.2 mln shares outstanding after the
conversion of the convertible bond held by AIG and its affiliates.
TH Lee's acquisition of SPI excludes the latter's majority
holding in eTelecare International, the Philippines' largest call
center firm.
SPI had spun off eTelecare via a property dividend payable to
stockholders of record in SPI as of Aug 22, 2003.
eTelecare plans to apply in the second quarter of 2004 for a
listing by introduction on the Philippine Stock Exchange later this
year.
Earlier, PPM Ventures Ltd of Britain's Prudential Plc was
supposed to launch a tender offer for all the issued and to-be
issued share capital of SPI at a previously indicated price of about
84 mln usd.
However, the exclusivity period given to PPM had lapsed without
any agreement being reached.
At 10.22 am, SPI was untraded after closing at 13.75 pesos
previously.
(1 usd = 56.25 pesos)
afxmanila@afxasia.com
|
STOCK ALERT - Philippines' PLDT rallies on further ADR gains,
earnings outlook |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT)
extended its rally in early trade following a further advance of its
American Depositary Receipts (ADR) in New York overnight, dealers
said.
Foreign investors continued to accumulate PLDT shares on the
back of a rosy earnings outlook for the company, supported by its
wireless unit Smart Communications Inc.
PLDT was up 20 pesos at 995 on 9,560 shares, after rising to as
high as 1, 000 pesos at the open.
Its ADRs rose 0.75 usd to 17.85 last night.
Mobile phone firms are seen posting significant gains in this
election year on the expected surge in the number of text messages.
Smart is also expected to benefit from its possible acquisition
of control of Pilipino Telephone Corp, which is currently 45 pct
owned by PLDT.
PLDT chairman Manuel Pangilinan earlier said he was comfortable
with analysts' forecast of a 17-18 bln pesos net profit for PLDT
this year, but this level could be exceeded if Smart acquires
Piltel's control.
PLDT posted a net profit of 11.2 bln pesos in 2003, nearly four
times the previous year's level, largely on Smart's contributions.
(1 usd = 56.25 pesos)
afxmanila@afxasia.com
|
Philippines hopeful S&P will not downgrade sovereign rating
|
MANILA (AFX-ASIA) - Philippine economic managers are hopeful
that Standard & Poor's Ratings Services, which is reviewing the
country's sovereign ratings, will not resort to a downgrade,
especially before the May 10 national elections.
S&P has been maintaining the Philippines' sovereign credit
ratings of BB for foreign currency and BBB for local currency.
"I don't think (a downgrade) is in the works," said central
bank governor Rafael Buenaventura.
Since last year S&P has monitored, in particular, the
Philippines' fiscal policy, as well as trends in the exchange rates,
given the uncertain political landscape in the run-up to the May
polls.
Filipinos will elect a president, vice president, members of
Congress, and some 17,000 local government officials.
The peso fell to a record 56.45 to the usd last week amid
growing pre-election political uncertainties, while the government's
budget deficit for the first two months of the year remains on track
within programmed levels.
Budget Secretary Emilia Boncodin said she is hoping S&P will
not downgrade the Philippine ratings, while Trade and Industry
Secretary Cesar Purisima said any rating action should wait until
after the elections.
"I think we deserve the benefit of the doubt," Purisima said.
S&P may announce its decision on the Philippine ratings in May
or June.
Corazon Guidote, director of the government's Investor
Relations Office, said the S&P's focus in the rating review is on
the continuity of reform measures needed to strengthen the economy
beyond May, among other issues.
Economic Planning Secretary Romulo Neri said the concerns
raised by S&P "will hopefully be addressed and resolved within the
next few weeks," meaning immediately after the May polls.
From all indications, Guidote believes S&P "will maintain the
country's rating at this time," citing, among other things, the
recognition by the agency that the government's tax collection
efficiency has shown some improvement, which helped limit its budget
deficit within programmed levels.
afxmanila@afxasia.com
|
China to boost links
with Philippines |
MANILA (AFX-ASIA) - China is explore new avenues for bilateral
trade, investment and tourism with the Philippines, Foreign Affairs
Secretary Delia Albert said.
She made the comments shortly after meeting with China's new
ambassador to the Philippines, Wu Hong Bo.
Albert said: "We give the highest importance to our relations
with China and this meeting was an important opportunity to review
our relations and plot the future."
She said the ambassador pledged China's continued commitment to
help develop the country's transport infrastructure, particularly in
the rail sector.
China has already provided a concessional loan of 400 mln usd
for the first leg of the Northrail Project that will provide rail
links between some of the growth centers of the main northern island
of Luzon.
"The Chinese ambassador also acknowledged the importance of
directing development efforts to Mindanao," the main island of the
south that has been racked by communist and Muslim separatist
rebellions in recent years, Albert said.
She said China is to send a delegation to Mindanao to examine
investment opportunities. Albert did not give a timetable for the
visit.
|
UPS says Philippines' Clark airport may be congested due to
FedEx entry |
MANILA (AFX-ASIA) -
United
Parcel Service (UPS) is concerned that the
transfer of Federal Express (FedEx)
Corp's Asia-Pacific hub to a government site in Clark, Pampanga will
cause air traffic congestion and adversely affect UPS' operations
there, UPS Philippines managing director Hidenori Aritake said.
"We see minor technical issues. The airport might be congested.
The potential issue might be the landing and takeoff traffic. We're
just concerned that there might be delays in our flights," Aritake
said, in reaction to the entry of
FedEx to Clark.
FedEx
is to sign a 25-year lease agreement on April 11 with the Clark
authorities for its new 450-mln usd regional cargo hub region.
FedEx will relocate its facility to Clark once its
contract with the authorities of Subic Bay, in nearby Zambales,
expires in 2007.
Clark International Airport Corp president and chief executive
officer Adelberto Yap, however, is confident Diosdado Macapagal
International Airport at Clark has enough space to accommodate new
players such as
FedEx.
"Space is the least of our problems. The Clark airport has a
land area of 2,750 hectares. So far, only 200 hectares are
occupied," he said.
Clark is currently the hub of UPS Philippines and airline firm
Asian Spirit, while South Korea's Asiana Airlines flies to Clark
five times a week.
afxmanila@afxasia.com
|
Philippines sees further oil price hikes this month on rising crude
costs |
MANILA (AFX-ASIA) - Local oil companies are likely to jack up
their pump prices for petroleum products this month as their import
costs for crude continued to rise, the Department of Energy has
warned the National Price Coordinating Council (NPCC).
Businessman Raul Concepcion, who regularly monitors the
movement of local oil prices, has estimated the price increase to be
0.60 pesos per liter for gasoline. But diesel prices should remain
unchanged as world diesel prices are flat, he said.
Trade undersecretary Adrian Cristobal Jr said that energy
officials, who attended the inter-agency NPCC meeting yesterday,
expect a gasoline price hike this month, following a 0.60 pesos per
liter increase for gasoline and 0. 40 pesos per liter hike for
kerosene about two weeks ago.
The NPCC monitors basic commodity prices and aims to prevent
price spikes caused by factors such as peso depreciation, fuel
increases, fare hikes, and even wage increases.
Cristobal said the oil firms, however, have assured the council
that the 2.00 pesos per liter discount on diesel being offered to
public transport groups will be maintained.
"In April, I estimate that gasoline would go up by 0.60 pesos
per liter. But oil companies have no reason to increase diesel
prices," said Concepcion, who heads an industry watchdog called the
Oil Price Watch.
OPEC has announced it will go ahead with a planned cut in oil
output of 1 mln barrels per day this month.
The cartel had faced calls from the US and other oil importers
to postpone the move to help rein in oil prices which have hit
13-year highs in New York recently. Gasoline prices, meanwhile, are
at record peaks.
The oil firms said the regional average price of gasoline in
March was almost 4.50 usd per barrel higher than in February.
The energy department said Dubai crude hit 31.90 usd per barrel
on March 24, the highest level since the US-Iraq war crisis. At the
height of the US-led war against Iraq, Dubai crude peaked at 31.18
usd per barrel.
The average price of Dubai crude now stands at 30.91 usd per
barrel, or 2. 30 higher than February's 28.61 per barrel average.
Regional prices of unleaded gasoline have been increasing steadily,
averaging 44.23 usd per barrel in March from 39.87 in February.
The energy department has blamed OPEC for the sustained rise in
oil prices.
afxmanila@afxasia.com
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Philippines' San Miguel sees double-digit growth in Q1 beer sales
|
MANILA (AFX-ASIA) - San Miguel Corp said it expects its beer
sales to increase at a double-digit rate in the first quarter as
shown by the trend in the first two months of the year.
In the Jan-Feb period, San Miguel said its beer sales increased
close to 30 pct year-on-year at more than 30 mln cases, with
revenues breaching the 6-bln peso mark.
"It is foreseen that the beer volumes will increase at a
double-digit pace for the first quarter due to favorable sales
trending and strong product off-take," the food and beverage
conglomerate said in a statement, without giving any specific
estimate.
"This performance is well above San Miguel's expectations, as
historically, volume tends to weaken after the holiday season."
The first and third quarters are normally slow periods for San
Miguel's beer sales, "but the trending is very positive," it said.
San Miguel sells nine out of every 10 bottles of beer consumed
in the Philippines and has a growing presence in Asian markets,
including China.
The company, which is also engaged in processed meat, poultry,
packaging, soft drinks, liquor and bottled water businesses, said
the gains in the beer segment were made possible by a strong
distribution network and highly-focused marketing efforts.
It noted volume growth was achieved in all selling areas, with
Visayas and Mindanao registering the highest growth rates.
(1 usd = 56.17 pesos)
afxmanila@afxasia.com
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Manila shares close firmer on PLDT, peso gains; index at 2-week high |
MANILA (AFX-ASIA) - Share prices closed firmer, with gains in
Philippine Long Distance Telephone Co (PLDT), on the back of a hefty
rise in its American Depositary Receipts (ADR) in New York
overnight, helping lift the key index to its highest close in two
weeks, dealers said.
They added that the peso's recovery against the US dollar,
after falling to a record low of 56.45 last week, also helped
sustain buying interest.
The market's advance, however, has slowed as investors adopted
a cautious stance ahead of next week's Easter holidays and amid
political uncertainties in the run-up to the May 10 national
elections, dealers said.
The composite index closed up 8.78 points or 0.62 pct at
1,433.11 on volume of 390.7 mln shares worth 498.2 mln pesos. It
moved between 1,426.65 and 1,433.53.
In the broader market, gainers led losers 26 to 23, with 37
stocks unchanged.
"Some investors are moving out of the market ahead of the
Easter holidays, while others are staying and buying into stocks
with good earnings prospects," said Nestor Aguila, president of DA
Market Securities.
"The peso's recovery is also giving a reason to take some
positions."
At noon, the peso averaged 56.17 to the dollar after closing at
a six-week high of 56.14 yesterday.
"Technical charts show there's still opportunity for
bargain-hunting, but we are recommending a 'trading buy' in a
political environment like this," said Ron Rodrigo, a research
consultant at Accord Capital Equities.
Dealers said sentiment has also turned somewhat positive, with
the government claiming to have foiled a Madrid-style attack in
Manila with the arrest this week of some members of the al-Qaeda-linked
Abu Sayyaf extremist group and seizure of explosives.
Top-traded PLDT was up 25 pesos at 975 on 241,550 shares. Its
ADRs rose 0. 77 usd to 17.10 in New York overnight.
"Some of the big caps, led by PLDT, are still getting support
from foreign investors, despite the prevailing political uncertainty
here. The market sees good earnings for PLDT, especially since it is
an election year," Rodrigo said.
PLDT wireless affiliate Pilipino Telephone Corp (Piltel) was up
0.02 at 1. 74.
PLDT rival Globe Telecom was up 10 at 830.
Cellular phones are a popular means of communicating in the
Philippines, and this has encouraged politicians to use "text
messaging" as a medium to deliver messages to voters.
PLDT's wholly-owned wireless unit, Smart Communications Inc,
and Piltel, had a combined 13 mln subscribers as of end-January,
representing more than half of the local market.
Chairman Manuel Pangilinan recently said he expects PLDT's 2004
net profit to exceed an initial forecast of 18 bln pesos, if Smart
acquires Piltel's debts and controlling stake. That will be an
increase of more than 60 pct over the 2003 net profit of 11.2 bln
pesos, which largely came from Smart.
Manila Electric B, available to foreign investors, was up 0.25
at 24.50, while Meralco A rose 0.25 to 17.
Ayala Land was down 0.10 at 5.20.
Jollibee Foods was up 0.25 at 17.
Bank of the Philippine Islands was up 0.50 at 44.50.
Kuok Philippines Properties Inc was up 0.01 at 0.17 on cross
sales involving 62.5 mln shares.
The all-shares index was down 3.43 points at 932.67.
The commercial-industrial index rose 17.29 to 2,242.79.
Property was down 4.49 at 508.89, while mining gained 40.92 to
1,480.31.
Oil was unchanged at 1.12.
Banking and financial services advanced 1.62 to 418.89.
afxmanila@afxasia.com
|
Philippines'
Lepanto says Victoria II gold mining commences operations |
MANILA (AFX-ASIA) - Lepanto
Consolidated Mining Co said commercial operations at its Victoria
II gold mining project in the northern Philippines begin today.
It gave no other details in its
statement to the stock exchange.
The project in Benguet province has
been given certain incentives by the government's Board of
Investments, among which is an income tax holiday for four years,
extendible by three years, starting April 2004.
The approved capacity of the mining
project is 970,570 tons, equivalent to 162,860 ounces of gold
annually.
Lepanto earlier said it will invest
73.41 mln usd in the Victoria II project for a period of seven
years.
It expects the project to generate
net cash flow of 78.20 mln usd from a gold production of close to
one mln ounces over the seven years.
afxmanila@afxasia.com
|
Manila
shares mixed late morning, but PLDT gains lift key index |
MANILA (AFX-ASIA) - Share prices
were mixed in late morning trade, but gains in Philippine Long
Distance Telephone Co (PLDT), on the back of a hefty rise in its
American Depositary Receipts (ADR) in New York overnight, lifted
the key index, dealers said.
The market's advance has slowed as
investors adopt a cautious stance ahead of next week's Easter
holidays and amid political uncertainties in the run-up to the May
10 national elections, dealers added.
At 10.59 am, the composite index was
up 5.04 points, or 0.35 pct, at 1, 429.37 on volume of 182.5 mln
shares worth 213.6 mln pesos. It has so far moved between 1,426.65
and 1,432.98.
In the broader market, losers were
leading gainers 15 to 13, while 32 stocks were unchanged.
"Technical charts show there's
still opportunity for bargain-hunting, but we are recommending a
'trading buy' in a political environment like this," said Ron
Rodrigo, a research consultant at Accord Capital Equities.
Dealers said the peso's sustained
recovery against the US dollar is providing a positive backdrop,
with the local unit averaging 56.169 to the dollar in late morning
trade after closing at a six-week high of 56.140 yesterday. It
fell to a record 56.45 last week.
Sentiment has also turned somewhat
positive on the government claim to have foiled a Madrid-style
attack in Manila with the arrest of some members of the al-Qaeda-linked
Abu Sayyaf extremist group and seizure of explosives.
But investors are expected to lock
in gains and stay liquid ahead of the Easter break, dealers said.
Top-traded PLDT was up 20 pesos at
970 on 126,170 shares. Its ADRs rose 0. 77 usd to 17.10 in New
York overnight.
"Some of the big caps, led by
PLDT, are still getting support from foreign investors, despite
the prevailing political uncertainty here. The market sees good
earnings for PLDT, especially since it is an election year,"
Rodrigo said.
PLDT wireless affiliate Pilipino
Telephone was up 0.02 at 1.74.
Bank of the Philippine Islands was
up 0.50 at 44.50.
Ayala Land was down 0.10 at 5.20.
Petron Corp rose 0.10 to 2.75.
afxmanila@afxasia.com
|
STOCKWATCH
- Philippines' PLDT extends gains on ADR advance, earnings outlook |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) shares made more gains in early trade
after the hefty rise in its American Depositary Receipts (ADR) in
New York overnight, which may indicate some positioning ahead of
the company's first-quarter results, dealers said.
At 10.12 am, PLDT was top-traded on
15,990 shares and up 15 pesos at 965. Its ADRs rose 0.77 usd to
17.10 overnight.
The composite index was up 7.43
points, or 0.52 pct, at 1,431.76.
"Some of the big caps, led by
PLDT, are still getting support from foreign investors, despite
the prevailing political uncertainty here. The market sees good
earnings for PLDT, especially since it is an election year,"
said Ron Rodrigo, a research consultant at Accord Capital
Equities.
Cellular phones are a popular means
of communicating in the Philippines, and this has encouraged
politicians to use "text messaging" as a medium to
deliver messages to voters.
PLDT's wholly-owned wireless unit,
Smart Communications Inc, and wireless affiliate, Pilipino
Telephone Corp (Piltel), had a combined 13 mln subscribers as of
end-January.
Chairman Manuel Pangilinan recently
said he expects PLDT's 2004 net profit to exceed an initial
forecast of 18 bln pesos, if Smart acquires Piltel's debts and
controlling stake.
Pangilinan said there has been
positive feedback from Piltel creditors, whom Smart had asked to
sell or swap their Piltel debts for Smart-issued bonds or
sovereign bonds.
Smart also intends to acquire PLDT's
45 pct stake in Piltel.
If the transactions proceed, the
Smart-Piltel deal will pave the way for Smart to gain a backdoor
listing on the local bourse.
Under the terms of its franchise, it
has until August to offer shares to the public.
(1 usd = 56.17 pesos)
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Philippines
end-Feb M3 up 4.4 pct yr-on-yr; flat growth vs Jan |
MANILA (AFX-ASIA) - The Philippines'
domestic liquidity or M3 grew a steady 4.4 pct year-on-year to
1.692 trln pesos as at end-February, same as the rate of increase
in January, the central bank said.
In a statement, the central bank
said the growth, although flat, could be put down to to the
combined expansion in net foreign assets and net domestic credits
of the monetary system.
Seasonally-adjusted M3 increased 0.2
pct in February, after a 0.8 pct rise in January, it said.
Banks' net foreign assets rose a
significant 22.3 pct year-on-year in February, an acceleration
from the 4.8 pct growth in the previous month.
"The build-up in banks' foreign
assets can be traced partly to their accumulation of foreign
exchange in anticipation of future requirements," the central
bank said.
Meanwhile, credits to the public
sector in the form of fixed-yielding government securities
continued to drive the expansion in net domestic credits.
Public sector credits grew a strong
21.2 pct year-on-year in February, after a 14.9 pct rise in
January. Private sector credits grew a modest 0.6 pct year-on-year
in February.
The central bank noted that the
continuing growth in overall demand for credit came hand in hand
with improvements in domestic demand, as reflected in various
indicators of domestic economic activity.
In particular, it cited the value of
production index increase of a further 4.4 pct in January,
following a 3.6 pct year-on-year rise in the previous month.
Car sales, meanwhile, rose a hefty
50.6 pct in February, the fifth straight month of a double-digit
year-on-year growth rate, the central bank said.
Bank lending continued to grow,
albeit at a modest pace of 0.8 pct in January, it said.
"In the months ahead, the
stance of monetary policy will continue to ensure an appropriate
level of liquidity, supportive of the economy's objectives of
price stability and sustained economic growth," the central
bank said.
"At the same time, the central
bank will also keep a close watch ony the evolving macroeconomic
developments in order to mitigate potential threats to the
inflation outlook."
(1 usd = 56.17 pesos)
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Philippines'
MWSS seeking 70 mln usd loan from BNP Paribas - report |
MANILA (AFX-ASIA) - Regulator
Metropolitan Waterworks and Sewerage System (MWSS) is seeking
another loan from BNP Paribas amounting to 70 mln usd after its
drawdown last Monday of a 150 mln usd loan from the financial
institution, BusinessWorld newspaper reported.
The paper quoted MWSS department
manager for finance Lito Polloso as saying that the additional
loan will be released in August, representing the second tranche
of a 220 mln usd loan the government secured from BNP Paribas.
The first tranche of 150 mln will be
used for loan refinancing, while the 70 mln usd loan will be used
for new water sources projects, the report quoted MWSS deputy
administrator Macra Cruz as saying.
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Philippines'
Maynilad Water to raise rates under rehabilitation plan - report |
MANILA (AFX-ASIA) - Maynilad Water
Services Inc, the control of which is to be transferred from
Benpres Holdings Corp to the government, will raise its rates
under a rehabilitation plan approved by both parties,
BusinessWorld newspaper reported.
The paper quoted Department of
Justice undersecretary Emmanuel Teehankee, who represented the
government in negotiating for a reorganization of Maynilad, as
saying that the water rates for Maynilad's concession area will
increase by around 66 pesos a month, or 2.22 pesos per day.
Maynilad's concession covers the
so-called west zone of metropolitan Manila.
This translates to a rise in monthly
bills to 536-663 pesos from about 470 currently for the average
household consumption of 30 cubic meters in Metro Manila, the
report said.
The new water rates should be
published in newspapers by May for implementation in June under
Maynilad's rehabilitation plan, the report added.
About seven years after winning the
concession, Benpres has decided to write off its equity
participation in Maynilad, which is to be taken over by regulator
Metropolitan Waterworks and Sewerage System (MWSS) under a
Maynilad reorganization agreement. Benpres currently owns 60 pct
of Maynilad, while France's Suez Group holds about 40 pct.
After the reorganization, which is
still subject to regulatory and court approvals, Maynilad will be
39 pct owned by MWSS, 19.0 pct by Suez Group, 2.0 pct by creditor
Metropolitan Bank and Trust Co and 4.0 pct by Maynilad employees.
The agreement, which is still
subject to regulatory and court approvals, puts an end to a
concession dispute between Benpres and the government, which had
been forwarded to the court for resolution.
Benpres and the government denied
there was a "sweetheart deal" between them in reaching
that agreement.
(1 usd = 56.14 pesos)
afxmanila@afxasia.com
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Manila
shares outlook - Mixed to higher amid caution ahead of Easter
break |
MANILA (AFX-ASIA) - Share prices are
expected to open mixed to higher with investors seen buying into
selected stocks ahead of the first quarter results to be released
later this month, dealers said.
However, they added that the
market's advance may not be as strong as that seen yesterday, and
investors may even immediately lock in gains on caution ahead of
next week's Easter break.
Political uncertainties ahead of the
May 10 presidential elections and possible further hikes in oil
prices, after OPEC's announcement it will go ahead with a planned
oil production cut of 1 mln barrels per day, may also keep
investors sidelined.
Yesterday, the composite index
closed up 28.31 points or 2.03 pct at 1, 424.33, after breaking
resistance levels of 1,400 and 1,420.
"Investors may be taking
positions ahead of the first quarter results," BPI Securities
said in its daily note.
It sees the market's support at
1,385 and resistance at 1,455.
Dealers said the peso's sustained
recovery against the US dollar also provides a positive backdrop,
with the local unit closing at a six-week high of 56.140 against
the US currency yesterday, after falling to a record 56.45 last
week.
Security worries have also eased a
bit after the government claimed to have foiled a Madrid-style
attack in Manila with the arrest of some members of the al-Qaeda-linked
Abu Sayyaf extremist group and seizure of explosives.
Another positive news is the Supreme
Court's move to dismiss the petition of two opposition senatorial
candidates to declare financial markets' favorite President Gloria
Arroyo, who is seeking a full term, resigned or on leave for
allegedly using government resources for her election campaign.
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