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Friday, April 02, 2004
Philippines Salcon declares cash dividend, ties up with KEPCO on power project
Philippines Aboitiz, Vivant finalize deal on Visayan Electric shares
Philippine National Construction appoints chairman Ramos acting president/CEO
Manila shares close higher led by PLDT; index at 3-week high
Manila shares firmer late morning on PLDT rally
Philippines' SPI accepts TH Lee's 87 mln usd acquisition offer
STOCK ALERT - Philippines' PLDT rallies on further ADR gains, earnings outlook

Thursday, April 01, 2004
Philippines hopeful S&P will not downgrade sovereign rating
China to boost links with Philippines
UPS says Philippines' Clark airport may be congested due to FedEx entry
Philippines sees further oil price hikes this month on rising crude costs
Philippine Bank of Communications' subscription warrants to expire May 10
Philippines' San Miguel sees double-digit growth in Q1 beer sales
Manila shares close firmer on PLDT, peso gains; index at 2-week high
Philippines' Lepanto says Victoria II gold mining commences operations
Manila shares mixed late morning, but PLDT gains lift key index
STOCKWATCH - Philippines' PLDT extends gains on ADR advance, earnings outlook
Philippines end-Feb M3 up 4.4 pct yr-on-yr; flat growth vs Jan
Philippines' MWSS seeking 70 mln usd loan from BNP Paribas - report
Philippines' Maynilad Water to raise rates under rehabilitation plan - report
Manila shares outlook - Mixed to higher amid caution ahead of Easter break

 


 
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
 

 
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
 

 
Philippine Bank of Communications' subscription warrants to expire May 10


     MANILA (AFX-ASIA) - Philippine Bank of Communications' subscription warrants will expire on May 10, the Philippine Stock Exchange said in a memorandum to brokers.
     afxmanila@afxasia.com
 

 
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
 

 
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)
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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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