NEWS

Philippines Q1 motor vehicle sales down 13 pct yr-on-yr

     MANILA (AFX-ASIA) - Motor vehicle sales in the first quarter to March fell 13 pct year-on-year to 20,963 units, the Chamber of Automotive Manufacturers of the Philippines and the Truck Manufacturers Association said.
     Passenger car sales, however, rose 56 pct year-on-year to 8,148 units.
     Commercial vehicle sales, meanwhile, came in at 12,815 units, down 32 pct year-on-year.
     Industry officials said promotional offers by assemblers helped to achieve an 11.8 pct month-on-month increase in March sales, which reached 7, 423 units.
     There was also "rush-buying" ahead of price increase for some segments, they added.
     Lower sales in the first quarter could be attributed to limited stocks of some models, they said.
     Toyota Motor Philippines Corp led the first quarter sales with 7,481 units, followed by Honda Cars Philippines Inc with 3,229 units and Mitsubishi Motor Philippines Corp with 3,184 units.
     afxmanila@afxasia.com

Philippines Music Semiconductors gets license to sell US-based Micron products

     MANILA (AFX-ASIA) - Music Semiconductors Corp said its US subsidiary has entered a licensing agreement with Micron Technology, under which Music will sell Micron's products.
     "Music Semiconductors Inc has entered into an agreement with Micron Technology Inc covering the grant by Micron of a license to Music to sell the MUAC product line of CAM-derived products into Ternary applications worldwide, and further, to sell to Music certain existing inventories of such products," Music told the stock exchange.
     No other details were provided.
     afxmanila@afxasia.com

Philippines Q1 budget deficit 57-58 bln pesos vs 58.9 bln target - Boncodin

     MANILA (AFX-ASIA) - The government's budget deficit in the first quarter to March is estimated at around 57-58 bln pesos, below the 58.9 bln target, Budget Secretary Emilia Boncodin said.
     "Preliminary figures show that it will come out about 57-58 bln pesos, or roughly 1.0-2.0 bln under the first quarter target," Boncodin said in a news briefing at the presidential palace.
     Higher revenue collections and continued fiscal discipline helped the government contain the budget deficit within the ceiling, officials said.
     "We would like to point out that the government has not overspent in the first quarter," Boncodin said, adding that the government is "not window-dressing" its first quarter fiscal performance ahead of the May 10 presidential elections.
     Yesterday, National Treasurer Mina Figueroa said the first quarter budget deficit "is on track to meet the target because of higher revenues." She could not give any precise figures.
     Preliminary figures show the Bureau of Internal Revenue collected 32.3 bln pesos in March against a target of 32.19 bln, bringing the first quarter total to 97.67 bln pesos against a target of 101.08 bln.
     The Bureau of Customs, however, collected revenues of 28.99 bln pesos in the first quarter to March, exceeding its target of 24.82 bln, also based on preliminary reports.
     The country's fiscal managers have vowed to maintain the government's cautious fiscal stance adopted in 2003, as it aims to limit the full-year budget deficit to 197.8 bln this year, or about 4.2 pct of the gross domestic product.
     Financial markets are keeping a close watch on the fiscal numbers, concerned that the government may spend more to win votes for administration candidates in the May 10 national elections.
     The government's fiscal performance is a major issue that credit rating agencies are looking at, as they continue to assess Philippines' creditworthiness amid burgeoning debt.
     The government aims to balance the budget by 2009.

     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Philippines' Meralco seeks ERC approval for zero-coupon bonds issue

     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) said it will formally seek approval from the Energy Regulatory Commission (ERC) this month to issue zero-coupon bonds to cover, in part, refunds worth about 18 bln pesos for its commercial and industrial customers.
     Meralco has been ordered by the Supreme Court to return overcharged amounts, estimated to be more than 30 bln pesos, to its customers and is planning to implement the fourth and last phase of the refund program by next year.
     "We told them (the commercial and industrial customers) that it looked feasible. We will submit our application (for the bond issuance) to the ERC for its approval," Meralco president Jesus Francisco said.
     He said Meralco plans to implement the refund's fourth phase, after the third phase is finished by the end of this year, by first dividing the customers covered into two groups.
     The group of "small" commercial users will get their refunds through credit to future billings. It will be carried out within a three-year period beginning early 2005.
     The big industrial users, on the other hand, will be issued zero-coupon bonds equivalent to their respective refunds.
     Francisco said these bonds can be exchanged into cash through rediscounting arrangements with accredited banks or financial companies. This process, based on the proposal, could take up to five years.
     If approved by the ERC immediately, Meralco will be able to issue the bonds within the year, he said, adding that the bond issuance has already been approved by the Securities and Exchange Commission.
     Meralco has also finalized the list of banks that can rediscount the bonds.
     (1 usd = 56.37 pesos)
     afxmanila@afxasia.com

Philippine employers' group rejects workers' wage hike demand

     MANILA (AFX-ASIA) - The Employers Confederation of the Philippines (ECOP) has dismissed as untimely and "counter-productive" the demands by some labor groups for a new round of wage increases following a transport fare hike which took effect last week.
     In a statement, ECOP president Rene Soriano said a wage hike at this time is not possible given the uncertain business environment, with investors waiting for the outcome of the May 10 presidential elections before making any moves.
     "A wage increase would impact on employer's ability to preserve jobs. What is happening today is that the economy is not generating enough jobs to absorb the new entrants to the labor force," he said.
     The government has implemented a fare increase for public utility jeepneys of 0.75 peso for the first five kilometers. It gave in last week to transport groups' demand for a fare hike to avert a nationwide strike.
     The minimum fare is still 4.00 pesos, but covers only the first four kilometers instead of five kilometers previously.
     Philippine labor groups are reportedly planning to seek wage hikes, which will be the highlight of their May 1 Labor Day celebration.
     The Philippines' unemployment rate in January rose to 11.0 pct of a total labor force of 35.4 mln Filipinos, from 10.6 pct a year ago.
     In absolute terms, some 3.9 mln of the country's workers were unemployed as of January, compared with 3.56 mln a year ago.
     Soriano added that a wage hike is inflationary, and subsequent increases in consumer prices will only wipe out whatever pay increases are granted to wage earners.
     "The name of the game is survival and job preservation," said ECOP vice president Aniano Bagabaldo.
     (1 usd = 56.37 pesos)
     afxmanila@afxasia.com

Philippines' Philex resumes gold mining ops at Padcal site

     MANILA (AFX-ASIA) - Philex Mining Corp said mining and milling operations at its Padcal gold site in Benguet province in the northern Philippines have resumed after it plugged a tailings leakage.
     Philex reported the leakage to the Department of Environment and Natural Resources on Saturday (April 3) and to the stock exchange yesterday.
     afxmanila@afxasia.com

Philippines' PLDT to list additional 1,733 common shares April 12 - PSE

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) will list an additional 1,733 common shares on April 12 to cover shares availed of under the company's Executive Stock Option Plan, according to a Philippine Stock Exchange circular.
     The plan pegged the exercise price at 814 pesos per share.
     PLDT closed today up 40 pesos at 1,055, its highest finish in more than four years.
     (1 usd = 56.37 pesos)
     afxmanila@afxasia.com

Manila shares close firmer on Q1 earnings prospects; PLDT at 4-yr high

      MANILA (AFX-ASIA) - Share prices closed sharply higher, pushing the key index to its highest finish in 10 weeks as investors bought into telecom and energy companies on bullish earnings' prospects for the first quarter, dealers said.
     Top-traded Philippine Long Distance Telephone Co (PLDT) soared to its strongest finish in more than four years, closing 40 pesos higher at 1,055 on 284,780 shares.
     The index closed up 26.76 points or 1.80 pct at 1,516.81 on volume of 128. 37 mln shares worth 730.6 mln pesos. It moved in a range of 1,493.21-1,516.87.
     In the broader market, gainers led losers 46 to nine, with 38 stocks unchanged.
     The composite index sustained its gains for the sixth straight trading day, with the improving economic prospects of the country's major trading partners -- the US and Japan -- helping to boost buying interest, they said.
     "The momentum carried the market above the 1,500 resistance level, with investors positioning themselves in telecom and energy stocks ahead of the release of first-quarter results," DA Market Securities president Nestor Aguila said.
     The results are expected to be announced starting later this month.
     "We have a shortened trading week and that's probably the reason why we saw a lot of orders today. We're looking at 1,525 to 1,530 as the next resistance range," said Elena Ponceca, head of research at Unicapital Securities.
     Philippine financial markets will be closed from tomorrow for the Easter holidays.
     Analysts said the 7.5 pct year-on-year rise in Philippine merchandise exports receipts in February compared with January's 4.1 pct year-on-year rise, helped ease concerns about rising inflation.
     After releasing the exports data today, the National Statistics Office said inflation accelerated to 3.8 pct year-on-year in March from 3.4 pct in February, above the 3.4-3.6 pct forecast range of economists, the central bank and the government.
     Although there was still some profit-taking despite the market's successive gains, Ponceca said the market may see a technical correction and investors locking in profits when trading resumes on Monday.
     But this will depend on how peaceful the long weekend is, as well as on the performances of Wall Street and regional markets during the rest of the week, dealer said.
     Analysts saw continued foreign buying in PLDT, whose American Depositary Receipts (ADRs) rose 0.52 usd to 18.31 in New York overnight.
     PLDT today told the stock exchange that it expects to announce its results for the first quarter to March in the first week of May.
     The company said the numbers have not been finalized yet and so it cannot comment on reports that its first-quarter earnings likely doubled to more than 4.5 bln pesos from last year.
     A PLDT source had said the company's net profit in the first quarter soared on the back of sustained earnings growth of wireless unit Smart Communications Inc.
     The source added that the growth was consistent with the 18 bln pesos net profit forecast for the whole year.
     PLDT rival Globe Telecom was up 35 at 900.
     Manila Electric B, available to foreign investors, was up 1.00 at 28.00, while Meralco A rose 1.00 to 18.75.
     Petron Corp was up 0.05 at 3.10 on 9.79 mln shares.
     Ayala Corp was down 0.10 at 6.40 on profit-taking, while unit Ayala Land advanced 0.10 to 5.60.
     The all-shares index was up 23.32 points at 988.56.
     The commercial-industrial index rose 48.19 to 2,375.24.
     Property was up 6.34 at 537.19, while mining advanced 15.00 to 1,480.91.
     Oil was unchanged at 1.13.
     Banking and financial services gained 2.94 to 437.53.
     (1 usd = 56.37 pesos)
     afxmanila@afxasia.com

DATAWATCH- Philippines March CPI puts pressure on monetary policy - Unicapital

     MANILA (AFX-ASIA) - The accelerating inflation rate in the Philippines is putting the central bank under more pressure to tighten its monetary policy in the coming months, Unicapital Securities research head Elena Ponceca said.
     The Philippines' consumer price index (CPI) rose 3.8 pct year-on-year in March, accelerating from 3.4 pct in the previous month, based on the 1994 price series, the National Statistics Office (NSO) announced this morning.
     Economists polled by AFX-Asia had forecast the March rate would come in between 3.4 and 3.6 pct year-on-year, in line with the central bank's and government's forecasts.
     Month-on-month inflation was 0.5 pct against 0.2 pct in February.
     "We're not totally surprised that inflation in March was faster than expected given the many factors driving prices higher, such as the weak peso and oil price increases," Ponceca said.
     "In this kind of environment, it is possible that the central bank will resort to policy tightening either through an increase in reserve requirement or interest rate."
     Central bank governor Rafael Buenaventura said the bank's monetary policy will remain "cautious" amid expectations of a build-up in inflationary pressures.
     He said that at this stage, the country's inflation rate may still settle within the government's target range of 4.0-5.0 pct.
     Buenaventura said the rising trend in inflation "validates our earlier move to increase liquidity reserves."
     The central bank early this year raised banks' liquidity reserves on deposits by 200 basis points to stem inflationary pressure arising from a weak peso, which had fallen to record lows against the US dollar.
     But the central bank has left its policy interest rates untouched, which have remained for months at 6.75 pct for overnight borrowing and 9.00 pct for overnight lending.
     "We still see inflation to be within the (target) range but most likely, at the higher end. Monetary policy will be cautious due to expected increases in oil prices, a recent transport fare adjustment and possible wage hikes," Buenaventura told AFX-Asia.
     afxmanila@afxasia.com

Philippines end-March forex reserves 16.306 bln usd vs 15.73 bln in Feb

     MANILA (AFX-ASIA) - The central bank's gross international reserves (GIR) rose to 16.306 bln usd as of end-March from 15.73 bln at end-February, thanks to recent foreign borrowings by the national government and state-run Metropolitan Waterworks and Sewerage System, the central bank said.
     The end-March GIR was adequate to cover 4.5 months of imports of goods and payments of services and income.
     It is equivalent to 2.7 times the country's short-term debt based on original maturity and 1.4 times based on residual maturity, central bank governor Rafael Buenaventura said in a statement.
     afxmanila@afxasia.com

DATAWATCH - Philippine Feb exports rise positive but still weak - AB Capital

     MANILA (AFX-ASIA) - The 7.5 pct year-on-year increase in Philippine merchandise exports revenues in February is a welcome development but is still weak, AB Capital Securities research director and economist Jose Vistan Jr said.
     In the first two months of the year, export receipts rose 5.8 pct year-on-year to 5.843 bln usd, the National Statistics Office (NSO) said.
     Electronics exports, which accounted for 65.9 pct of total export receipts in February, rose 6.6 pct year-on-year to 1.976 bln usd, compared with a 1.2 pct year-on-year rise in January.
     "That's good news, but the sector should perform better in the coming months as the pace of growth in the first two months of the year was still not enough to meet the government's full-year growth target of 10 pct," Vistan said.
     The rise in exports receipts in February accelerated from the 4.1 pct year-on-year rise earlier announced by the NSO.
     Vistan said the continued recovery of the export sector will still depend largely on the economic performance of the Philippines' major trading partners such as the US and Japan.
     NSO data showed exports to Japan accounted for 17.4 pct of February receipts, valued at 523.14 mln usd or 24.9 pct higher than the year-earlier level.
     Exports to the US, representing 17.2 pct share, were valued at 516.10 mln usd, down 16.4 pct year-on-year.
     afxmanila@afxasia.com

Manila shares extend gains on telco-led rally; index above 1,500

     MANILA (AFX-ASIA) - Share prices soared mid-session, led by gains in PLDT and rival Globe Telecom, after another firmer finish on Wall Street overnight and amid bullish earnings' prospects for companies in the telecom and energy sectors, dealers said.
     At 11.05 am, the composite index was up 26.14 points, or 1.75 pct, at 1, 516.19 on volume of 52 mln shares worth 379.07 mln pesos.
     In the broader market, gainers led losers 36 to nine, with 27 stocks unchanged.
     "The momentum carried the market above the 1,500 resistance level, with investors positioning themselves in telecom and energy stocks. ahead of the release of first-quarter results," DA Market Securities president Nestor Aguila said.
     The results are expected to be released starting later this month.
     "However, we may see some profit-taking before the close, which should extend to next week," Aguila said.
     Today is the last trading day of the week for Philippine financial markets. They will be closed from tomorrow for the Easter holidays and will reopen on Monday.
     Dealers said the positive performances of stock markets in the US and Japan have boosted hopes for economic recovery for the Philippines' two major trading partners.
     Locally, they said the 7.5 pct year-on-year rise in Philippine merchandise exports receipts in February, faster than the January's 4.1 pct year-on-year rise, helped ease concerns about rising inflation.
     After releasing the exports data today, the National Statistics Office said inflation sped up to 3.8 pct year-on-year in March from 3.4 pct in February, above the 3.4-3.6 pct forecast range of economists, the central bank and the government.
     Top-traded PLDT was up 35.00 pesos at 1,050.00 on volume of 134,550 shares. Its ADRs rose 0.52 usd to 18.31 in New York overnight.
     PLDT today told the stock exchange that it expects to announce its results for the first quarter to March in the first week of May.
     The company said the numbers have not been finalized yet and so it cannot comment on reports that its first-quarter earnings likely doubled to more than 4.5 bln pesos from last year.
     A PLDT source had said the company's net profit in the first quarter soared on the back of sustained earnings growth of wireless unit Smart Communications Inc.
     The source added that the growth was consistent with the 18 bln pesos net profit forecast for the whole year.
     PLDT rival Globe Telecom was up 35.00 at 900.00.
     Manila Electric B, available to foreign investors, was up 1.00 at 28.00, while Meralco A rose 1.00 to 18.75.
     Bank of the Philippine Islands was up 0.50 at 47.50.
     Petron Corp was up 0.05 at 3.10.
     Megaworld Corp was up 0.06 at 1.16.
     Jollibee Foods was up 0.50 at 19.00.
     (1 usd = 56.37 pesos)
     afxmanila@afxasia.com

Philippines Feb merchandise exports up 7.5 pct yr-on-yr - UPDATE

     (Updating with breakdown)
     MANILA (AFX-ASIA) - Merchandise exports increased 7.5 pct year-on-year in February to 2.999 bln usd, faster than the previous month's 4.1 pct year-on-year rise, the National Statistics Office (NSO) announced.
     Electronics exports, which accounted for 65.9 pct total exports receipts in February, rose 6.6 pct year-on-year to 1.976 bln usd, compared with a 1.2 pct year-on-year rise in January.
     In the first two months of the year, exports receipts went up 5.8 pct year-on-year to 5.843 bln usd.
     Exports of manufactured goods accounted for 88.8 pct of total February receipts and were up 7.6 pct year-on-year at 2.662 bln usd.
     Articles of apparel and clothing accessories remain the country's second top foreign exchange earner with a 6.2 pct combined share of February receipts, valued at 185.03 mln usd or 6.8 pct lower than the year-earlier level.
     At the third spot was ignition wiring and other wiring sets used in vehicles, aircraft and ships, with total revenue of 56.06 mln usd in February, up 35 pct year-on-year.
     Exports to Japan accounted for 17.4 pct of February receipts, valued at 523.14 mln usd or 24.9 pct higher than the year-earlier level.
     Exports to the US, representing 17.2 pct share, were valued at 516.10 mln usd, down 16.4 pct year-on-year.
     The Netherlands emerged as the third biggest market for Philippine products in February, with shipments of 314.66 mln usd, up 9.9 pct year-on-year and accounting for 10.5 pct of total receipts.
     afxmanila@afxasia.com

Philippines CPI accelerates to 3.8 pct yr-on-yr in March - UPDATE

     (Updating with breakdown)
     MANILA (AFX-ASIA) - The Philippines' consumer price index (CPI) rose 3.8 pct year-on-year in March, accelerating from 3.4 pct in the previous month, based on the 1994 price series, the National Statistics Office (NSO) announced.
     Month-on-month inflation was recorded at 0.5 pct against 0.2 pct in February.
     Inflation averaged 3.5 pct year-on-year in the first quarter.
     Economists polled by AFX-Asia expected the March inflation rate in the range of 3.4-3.6 pct year-on-year, in line with the central bank's and government's forecasts.
     The faster rise in prices last month reflected the inflationary pressure stemming from the peso's weakness against the US dollar and increases in oil prices, they said.
     The NSO, meanwhile, attributed the faster inflation rate primarily to the 0.9 percentage point rise in prices of the food, beverage and tobacco (FBT) group, as well as higher rates in housing and repairs (H&R), and miscellaneous items.
     Inflation in the same month last year stood at an annualized 2.8 pct.
     The NSO said inflation for the FBT group went up to 4.2 pct in March from 3.3 pct in the previous month.
     Inflation for the H&R group was at 3.2 pct against 3.1 pct in February, and miscellaneous items, at 2.0 pct from 1.9 pct.
     "While price increases were still noted in other commodity groups, their rates slowed to 2.2 pct from 2.3 pct for clothing; 1.9 pct from 3.2 pct for fuel, light and water group; and 4.8 pct from 5.0 pct for services," the NSO said.
     For food alone, the inflation rate advanced to 4.4 pct in March from 3.4 pct in February.
     Using the 2000 price series, the headline inflation rate in March was recorded at 4.2 pct year-on-year against 4.0 pct the previous month.
     Core inflation rates stood at 4.0 pct year-on-year in March based on the 1994 series, and 4.6 pct based on the 2000 series, compared with 3.7 pct and 4.4 pct, respectively, in February.
     The NSO has been releasing two sets of inflation rates - one based on the 1994 series and the other based on the 2000 series - as it prepares to shift to the latter as the basis for computing the rate of price changes.
     Core inflation strips out the effects of temporary disturbances on headline CPI with the exclusion of items such as food and energy.
     afxmanila@afxasia.com

Philippine monetary policy to remain cautious amid CPI pressure - Buenaventura

     MANILA (AFX-ASIA) - The central bank's monetary policy will remain "cautious" amid expectations of a build-up in inflationary pressure, the regulator's governor Rafael Buenaventura said.
     He added that at this stage, the country's inflation rate may still settle within the government's target range of 4.0-5.0 pct.
     Buenaventura said the rising trend in inflation "validates our earlier move to increase liquidity reserves."
     The central bank early this year raised banks' liquidity reserves on deposits by 200 basis points to stem inflationary pressure arising from a weak peso, which had fallen to record lows against the US dollar.
     "We still see inflation to be within the (target) range but most likely, at the higher end. Monetary policy will be cautious due to expected increases in oil prices, a recent transport fare adjustment and possible wage hikes," he told AFX-Asia.
     The Philippines' consumer price index (CPI) rose 3.8 pct year-on-year in March, accelerating from 3.4 pct in the previous month, based on the 1994 price series, the National Statistics Office (NSO) announced this morning.
     Month-on-month inflation was recorded at 0.5 pct against 0.2 pct in February.
     Economists polled by AFX-Asia expected the March inflation to come in the range of 3.4-3.6 pct year-on-year, in line with the central bank's and government's forecasts.
     The faster rise in prices last month reflected the inflationary pressure stemming from the peso's weakness against the US dollar and increases in oil prices, they said.
     afxmanila@afxasia.com

Philippines' PLDT to announce Q1 results first week of May

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said it expects to announce its results for the first quarter to March by the first week of May.
     The company told the stock exchange the numbers have not been finalized yet, and so cannot comment on reports the first quarter earnings likely doubled to more than 4.5 bln pesos from a year earlier.
     A company source had said that PLDT's net profit in the first quarter soared on the back of sustained earnings growth of wireless unit Smart Communications Inc.
     The source added this is consistent with the 18 bln pesos net income forecast for the whole year.
     (1 usd = 56.40 pesos)
     afxmanila@afxasia.com

Philippines' SPI Technologies trading halted on TH Lee tender offer - PSE

     MANILA (AFX-ASIA) - Trading in shares of SPI Technologies Inc will be halted briefly today following a tender offer from New York-based TH Lee Putnam Ventures for all the shares of SPI that have been issued or are to be issued, the Philippine Stock Exchange (PSE) said.
     The trading halt will be lifted by 10 am, it said.
     SPI Technologies, Asia's largest independent business process outsourcing (BPO) provider, earlier said its board has unanimously voted to recommend the acceptance of TH Lee's offer to shareholders.
     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, a technology-focused private equity firm which manages 1.1 bln usd in capital commitments, will begin its tender offer on or around April 12, according to SPI.
     The PSE said it received a letter from SPI dated April 5 which said: "The eventual delisting of the shares of stock of the company that was disclosed in the tender offer report will be necessary consequence of the contemplated merger of the company into TH Lee acquisition corporation, with the latter as surviving entity."
     The exchange said the trading halt is intended to give all concerned parties sufficient time to evaluate the information contained in the tender offer report.
     afxmanila@afxasia.com

Philippines March headline CPI up 3.8 pct yr-on-yr vs 3.4 pct rise in Feb

     MANILA (AFX-ASIA) - The Philippines' consumer price index (CPI) rose 3.8 pct year-on-year in March, accelerating from 3.4 pct in the previous month, the National Statistics Office (NSO) announced.
     Month-on-month inflation was recorded at 0.5 pct against 0.2 pct in February.
     Economists polled by AFX-Asia expected the March inflation to come in the range of 3.4-3.6 pct year-on-year, in line with the central bank's and government's forecasts.
     The faster rise in prices last month reflected the inflationary pressure stemming from the peso's weakness against the US dollar and increases in oil prices, they said.
     afxmanila@afxasia.com

Philippines Feb merchandise exports up 7.5 pct yr-on-yr

     MANILA (AFX-ASIA) - Merchandise exports increased 7.5 pct year-on-year in February to 2.99 bln usd, faster than the previous month's 4.1 pct year-on-year rise, the National Statistics Office (NSO) announced.
     Electronics exports, which traditionally account for more than half of total exports receipts, rose 6.6 pct year-on-year to 1.97 bln usd, compared with a 1.2 pct year-on-year rise in January.
     afxmanila@afxasia.com

Philippines may close Malampaya natural gas stake sale this month - report

     MANILA (AFX-ASIA) - The government may be able to conclude this month talks with prospective buyers of half of its 10 pct stake in the 4.5 bln usd Malampaya offshore natural gas project, BusinessWorld newspaper reported, citing an unidentified government source.
     The government's stake in Malampaya is held by PNOC Exploration Corp.
     The government has approved two modes of sale for 49 pct of its 10 pct participating interest in Malampaya project
     Bidders can make an offer for 49 pct of outstanding shares of PNOC Malampaya Production Corp, a company wholly-owned by PNOC-EC.
     Alternatively, they can directly bid for the 49 pct of PNOC EC's 10 pct interest in Malampaya.
     The Malampaya gas fields are operated by a consortium that also includes the Royal Dutch/Shell group and US oil major Chevron/Texaco.
     The site, located in the South China Sea off the island of Palawan, is the largest single project in the Philippines and has been supplying natural gas to power plants in the main Philippine island of Luzon.
     The BusinessWorld source said PNOC-EC was negotiating with foreign companies to buy 4.9 pct of the project, estimated to be worth 300-400 mln usd.
     The source declined to identify the prospective buyer or buyers.
     ING Bank is advising the government on the sale.
     afxmanila@afxasia.com

Philippines' MWSS plans to hire Thames Water for Maynilad ops - report

     MANILA (AFX-ASIA) - Regulator Metropolitan Waterworks and Sewerage System (MWSS) plans to hire Thames Water PLC to help it run Maynilad Water Services Inc, BusinessWorld newspaper reported, citing MWSS consultant Jaime Laya.
     However, the report said the plan is not in line with Maynilad's proposed rehabilitation plan, which purportedly bans the hiring of more foreign consultants, said to be one of the reasons for Maynilad's financial problems.
     The government, through the MWSS, will take over a controlling 39 pct stake in Maynilad after the Lopez family's Benpres Holdings Corp, following seven years of running Maynilad, decided to write off its 60 pct equity in the water utility. The concession covers supply of drinking water to half of metropolitan Manila supposedly for 25 years.
     Benpres' French partner in Maynilad will reduce its equity in the utility to 19 pct from 40, while Maynilad creditors will convert their loan exposure to equity.
     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.
     Laya was quoted as saying that Maynilad would seek technical assistance from Thames Water, even before the lapse of the company's service contract with Ondeo Services Philippines Inc, the French joint venture partner of Benpres.
     afxmanila@afxasia.com

Manila shares outlook - Mixed to higher on Wall Street, PLDT ADR gains

     MANILA (AFX-ASIA) - Share prices are expected to open mixed with the bias still positive following further gains on Wall Street and in PLDT's American Depositary Receipts (ADRs), dealers said.
     However, investors may be less aggressive in buying today, the last trading day of the week. Philippine financial markets will be closed from tomorrow for the Easter holidays, and will resume trading on Monday.
     Dealers are not discounting the possibility of profit-taking ahead of the long weekend, following strong gains in the last five trading days.
     Yesterday, the composite index closed up 39.14 points or 2.70 pct at 1, 490.05, its strongest finish in eight weeks.
     Stocks have seen gains in the US and Japan on hopes for economic recovery in the Philippines' two major trading partners.
     "Investors are accumulating select stocks in anticipation of good first quarter results," BPI Securities said in its daily report.
     Philippine Long Distance Telephone may rise further after its ADRs advanced 0.52 usd to 18.31 in New York overnight.
     PLDT closed yesterday up 25 pesos at a three-month high of 1,015 on the local bourse, after a company official said it likely doubled its net profit to more than 4.5 bln pesos in the first quarter from 2.5 bln a year earlier.
     The earnings growth, as has been projected by the company itself and market analysts, was again driven largely by gains of wireless unit Smart Communications Inc, the source said, adding that the emerging first quarter profit figure is in line with the full-year earnings forecast of up to 18 bln pesos.
     "Investors...may continue with their accumulation given the strong momentum," BPI said, adding that its 2004 earnings outlook for telecoms and power sectors remains positive.
     "Investors may have discounted for now the security and political concerns but may focus on these issues again in the next few weeks as we approach the presidential elections on May 10."
     BPI sees the market's support at 1,455 and resistance is at 1,500.
     (1 usd = 56.34 pesos)
     afxmanila@afxasia.com

Philippines' Global Terminal says to convert ex-US base into cruise ship port

     MANILA (AFX-ASIA) - Local consortium Global Terminal and Development Inc said today it plans to convert part of Subic Bay, a former US naval base in the Philippines, into a commercial port capable of serving cruise ships from around the world.
     Local consortium Global Terminal and Development Inc. said it will build a 160-mln pesos, 18-hectare terminal for international cruise ships at Subic Bay, north of Manila.
     The project is part of a port modernization program for Subic that will also include tourist parks, a warehouse, grain storage facilities and a ship repair yard, said Felicito Payumo, chairman of the government agency managing the port.
     "The project will serve as the catalyst for harbor renewal of Rivera Wharf from a former military port to become Asia's premier cruise ship destination in the region," Payumo said in a statement.
     Subic once served as the repair yard and supply facility of the Japan-based US 7th Fleet. The last US troops pulled out of the base after the Philippine Senate ended their lease in 1992.

Philippines' ICTSI 2003 net profit 527 mln pesos vs 2.7 bln - UPDATE

     (Updating with breakdown of results)
     MANILA (AFX-ASIA) - International Container Terminal Services Inc (ICTSI) said it posted a net profit of 527 mln pesos for the full year to Dec 2003, compared with the year-earlier's 2.7 bln, which included an extraordinary gain of 3.45 bln from the sale of subsidiary ICTSI International Holdings Corp.
     On a recurring basis, net profit in 2003 rose 52 pct year-on-year from 348 mln.
     The company said its consolidated gross revenue rose 22 pct year-on-year to 6.8 bln pesos in 2003 due to steady revenue growth at the Manila International Container Terminal and the consolidation of new subsidiary Baltic Container Terminal (BCT) in Gdynia, Poland.
     ICTSI acquired the Baltic terminal in June 2003, with its revenue reaching 1.3 bln pesos in the seven months to Dec 2003.
     "On the basis of the seven-month consolidation of BCT financial results, the increase in ICTSI's total consolidated gross revenue would be 22 pct from 2002," public relations manager Narlene Soriano told the Philippine Stock Exchange in a letter.
     Group-wide container volume handled in 2003 grew over 27 pct to 1.64 mln TEU (20-foot equivalent units) from 1.29 mln TEU in 2002. On a consolidated basis, volume totalled 1.53 mln TEU, a 31 pct increase over the year-earlier's 1.16 mln TEU.
     afxmanila@afxasia.com

Philippines end-March forex reserves seen back above 16 bln usd - Buenaventura

     MANILA (AFX-ASIA) - The central bank's gross international reserves (GIR) likely rose to more than 16 bln usd as of the end of March, after falling to 15.73 bln at end-February from end-January's 16.084 bln, said the regulator's governor, Rafael Buenaventura.
     "The official number will come out April 12, but the estimate is over 16 bln usd," he said, without elaborating.
     Recent foreign borrowings of the central bank and the national government possibly boosted the GIR.
     It is believed the central bank intervenes in the currency market from time to time, unloading some of its dollar reserves to support the weakening peso.
     The official statement, however, is that the February decline was due to the debt-service requirements of both the national government and the central bank.
     The central bank intends to maintain the GIR at a comfortable level of 14-15 bln usd this year.
     afxmanila@afxasia.com

Philippines sets 5-yr T-bond coupon at 11.875 pct, raises 1.755 bln pesos

     MANILA (AFX-ASIA) - The Bureau of Treasury said it set the coupon rate for today's auction of five-year Treasury bonds at 11.875 pct and raised 1. 755 bln pesos.
     Tenders totalled 4.205 bln pesos against an offering of 3.500 bln.
     The rate averaged 11.727 pct, with bids ranging from 11.500 pct to 11.875 pct.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Philippines' Mabuhay Vinyl declares 0.20 peso/share cash dividend

     MANILA (AFX-ASIA) - Mabuhay Vinyl Corp said its board of directors has approved the declaration of a dividend per share of 0.20 peso to stockholders on record as of April 22.
     Payment will be made not later than April 30.
     Mabuhay Vinyl is the first, the largest and the only integrated caustic soda and polyvinyl chloride (PVC) resin producer in the Philippines. It also enjoys a dominant position in the local hydrochloric acid and chlorine markets.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Philippines' Universal Rightfield waives right over Itochu's Monarca stake

     MANILA (AFX-ASIA) - Universal Rightfield Property Holdings Inc said it has waived its right of first refusal for Japan's Itochu Corp's 3 mln common shares in Monarca Greenworld Corp.
     Itochu intends to dispose of its shares, which have a par value of 1 peso each, in Monarca, of which Universal Rightfield owns 35 pct.
     The Philippine company formally informed Itochu in a March 24 letter that "we are not buying our pro-rata shares at the moment as Universal Rightfield is currently undergoing rehabilitation."
     "The waiver should not, however, be construed to be a waiver to purchase the said shares should you, hereafter, vary the purchase price or re-offer the shares under different terms and conditions as those stated in the ... offer," Universal Rightfield said.
     A Mandaluyong City regional trial court recently approved creditor DM Consunji's petition to rehabilitate Universal Rightfield with a stay order on the enforcement of all claims against the company.
     The court prohibited the company from selling its properties and making any payment of its outstanding liabilities.
     The Philippine Stock Exchange has suspended trading in Universal Rightfield shares, despite the Securities and Exchange Commission's setting aside an order revoking the company's permit to sell securities to the public.
     Universal Rightfield's proposed rehabilitation plan entails the reduction of loans of 1.39 bln through a payment-in-kind arrangement with creditors.
     The plan also calls for an initial funding of 150 mln pesos to jump-start development of a property in Cabuyao, in Laguna province, south of metropolitan Manila.
     The company is expected to repay its debt over a 10-year period.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Philippines' Philex halts mining ops at Padcal site due to tailings leakage

     MANILA (AFX-ASIA) - Philex Mining Corp said it has suspended mining and milling operations at its Padcal site in the northern Philippines due to tailings leakage.
     The company said it has reported the matter to the Department of Environment and Natural Resources, and that the situation could be remedied "within several days."
     afxmanila@afxasia.com

Philippines' San Miguel Jan-Feb China volumes up 7.0 pct yr-on-yr

     MANILA (AFX-ASIA) - San Miguel Corp, which recently reported a net profit rise of 16 pct year-on-year to over 1.0 bln pesos for the January-February period, said its sales in China grew 7.0 pct year-on-year to around 39 mln usd in the same period.
     The food and beverage conglomerate's manufacturing operations extend to Hong Kong, China, Indonesia, Taiwan and Guam, and its products are exported to about 24 countries around the world.
     In a statement, San Miguel said its north China operations yielded an 18 pct year-on-year sales growth during the two-month period, while a plant in the Guangdong province posted a record sales growth of 57 pct year-on-year.
     Its Hong Kong operations contributed a 4.0 pct increase in trade turnover in the same period.
     San Miguel said other international units registered volume improvements in the two-month period, the most significant of which is the recovery of its Vietnam operations from a weak turnout in January, with an 83 pct year-on-year volume expansion in February.
     The company's international beer sales were weakened in the first half of 2003 by the outbreak of SARS in the region.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Philippines' ICTSI 2003 revenue up 22 pct on consolidation of Poland terminal

     MANILA (AFX-ASIA) - International Container Terminal Services Inc (ICTSI) said its consolidated gross revenues rose 22 pct year-on-year in full year to Dec 2003 on the consolidation of new subsidiary Baltic Container Terminal (BCT) in Gdynia, Poland.
     The port operator gave no absolute figures or other details of its 2003 results.
     ICTSI acquired the Baltic terminal in June 2003.
     "On the basis of the seven-month consolidation of BCT financial results, the increase in ICTSI's total consolidated gross revenues would be 22 pct from 2002," public relations manager Narlene Soriano told the stock exchange in a letter.
     afxmanila@afxasia.com

Philippines Q1 budget deficit likely within 58.9 bln pesos target - treasurer

     MANILA (AFX-ASIA) - The government's budget deficit for the first quarter to March likely settled within the government's target of 58.9 bln pesos, national treasurer Mina Figueroa said.
     "The deficit is on track to meet the target because of higher revenues," she told reporters, but gave no figures.
     Preliminary figures show the Bureau of Internal Revenue collected 32.3 bln pesos in March against a target of 32.19 bln, bringing the first quarter total to 97.67 bln pesos against a target of 101.08 bln.
     The Bureau of Customs, however, collected revenues of 28.99 bln pesos in the first quarter to March, exceeding its target of 24.82 bln, also based on preliminary reports.
     The country's fiscal managers have vowed to maintain the government's cautious fiscal stance adopted in 2003, as it aims to limit the full-year budget deficit to 197.8 bln this year, or about 4.2 pct of gross domestic product.
     Financial markets are keeping a close watch on the fiscal numbers, concerned that the government may not observe fiscal discipline and spend more to win votes for administration candidates in the May 10 national elections.
     The government's fiscal performance is a major issue that credit rating agencies are looking at, as they continue to assess the Philippines' creditworthiness amid an increase debt burden.
     The government aims to balance the budget by 2009.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Manila shares close firmer on Wall Street, PLDT gains; index at 8-week high

     MANILA (AFX-ASIA) - Share prices closed sharply firmer following Friday's gains on Wall Street, with Philippine Long Distance Telephone Co (PLDT) leading the rally on the back of its strong earnings prospects this year, dealers said.
     The buying momentum continued, benefiting select blue chips and driving the composite index to its highest finish in eight weeks, after it broke through another resistance level at 1,480 points.
     The index closed up 39.14 points or 2.70 pct at 1,490.05 on volume of 224. 5 mln shares worth 628.05 mln pesos. It moved between 1,449.50 and 1,490.11.
     In the broader market, gainers led losers 41 to 12, with 24 stocks unchanged.
     Dealers noted a stronger-than-expected March employment report in the US reassured investors that economic recovery in one of the Philippines' major trading partners is in place.
     However, they added that investors were largely cautious and may take profits before the long Easter break which begins on Wednesday.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Philippines' Arroyo, movie actor Poe in deadheat ahead of vote - poll

     MANILA (AFX-ASIA) - Philippine President Gloria Arroyo and her top rival, movie star Fernando Poe, are locked in a statistical tie ahead of the May 10 presidential election, according to the latest opinion poll published today.
     According to a March 21-29 survey that the Social Weather Stations (SWS) did, 32 pct of the respondents chose Poe and 31.4 pct Arroyo.
     Former education secretary Raul Roco was third with 15 pct, while former police chief and senator Panfilo Lacson were joint fourth with 11.2 pct. Television evangelist Eduardo Villanueva was last with 2.8 pct.
     The latest survey was the third in a series of SWS polls that the Manila Standard newspaper and the ABS-CBN Broadcasting Corp are sponsoring.
     The survey used face-to-face interviews, on a national sample of 1,400 statistically representative registered voters nationwide. It has an error margin of 3 pct.
     Arroyo, who is seeking a second term and styles herself as the "last best hope" for the largely impoverished Philippines, trailed Poe in opinion polls late last year.
     However, she has since closed the gap and has been challenging Poe, a high-school dropout with no political background, to publicly present his platform of government.

Manila shares firmer on PLDT-led rally; index surges past 1,450

     MANILA (AFX-ASIA) - Share prices were higher in late morning trade after Philippine Long Distance Telephone Co (PLDT) extended its rally on the back of strong earnings prospects this year, which encouraged position-taking in other blue chips such as Ayala stocks, dealers said.
     Buying was also sustained following Wall Street's gains on Friday, with a stronger-than-expected March employment report reassuring investors that the US economic recovery is in place.
     Thin volumes, however, suggest that investors are cautious and may be poised to take profits before the long Easter break beginning Wednesday.
     At 10.56 am, the composite index was up 27.10 points or 1.87 pct at 1,478. 01 on volume of 118.1 mln shares worth 246.4 mln pesos.
     In the broader market, gainers were leading losers 30 to five, with 13 stocks unchanged.
     "After we broke through the 1,450-point resistance level, buying momentum has been sustained, helped by PLDT's continued rally," Weslink Global Equities chairman Rommel Macapagal said.
     The market is seen to test the 1,480 resistance level next, he said.
     "But given that we're approaching a long weekend, most investors may play it safe (and take profits)," he added.
     Top-traded PLDT was up 10 pesos at 1,000 on 55,510 shares after a company official said it likely doubled its net profit to more than 4.5 bln pesos in the first quarter from 2.5 bln a year earlier.
     The earnings growth, as has been projected by the company itself and stock market analysts, was again driven largely by gains of wireless unit Smart Communications Inc, a company source said.
     "First quarter numbers are being finalized. At this point, net income is breaking the 4.5 bln pesos level. This is consistent with the 18 bln pesos net income forecast for the year," the source said.
     "Although PLDT's (American Depositary Receipts) in New York were down last Friday, the conversion price is still above 1,000 pesos. The sustained rise in PLDT's price is, of course, still driven by a positive earnings outlook," Macapagal said.
     After recent sustained gains, however, PLDT's ADRs fell 0.06 usd to 17.79 in New York on Friday.
     PLDT's wireless affiliate Pilipino Telephone Corp (Piltel) was up 0.06 at 1.78.
     PLDT rival Globe Telecom was up 15 at 855.
     Trans-Asia Oil and Energy Development Corp was down 0.02 at 1.00 on cross sales worth 41.72 mln pesos.
     Ayala Corp was up 0.40 at 6.50, but unit Ayala Land was up 0.10 at 5.40.
     Manila Electric B, available to foreign investors, rose 1.50 to 26.50, while Meralco A was up 0.25 at 17.50.
     SM Prime was down 0.10 at 5.90.
     Bank of the Philippine Islands was up 2.00 at 47.
     Petron Corp was up 0.15 at 3.05.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

STOCKWATCH - Philippines' PLDT extends rally on Q1 earnings prospects

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) extended its rally in mid-trade, after a company official said it likely doubled its net profit to more than 4.5 bln pesos in the first quarter from 2.5 bln a year earlier, dealers said.
     At 10.28 am, PLDT was top-traded on volume of 50,200 shares and up 10 pesos at 1,000. It rose to as high as 1,005 earlier.
     The composite index was up 21.45 points or 1.48 pct at 1,472.36.
     The earnings growth, as has been projected by the company itself and stock market analysts, was again driven largely by gains of wireless unit Smart Communications Inc, a company source said.
     "First quarter numbers are being finalized. At this point, net income is breaking the 4.5 bln pesos level. This is consistent with the 18 bln pesos net income forecast for the year," the source said.
     "Although PLDT's (American Depositary Receipts) in New York were down last Friday, the conversion price is still above 1,000 pesos. The sustained rise in PLDT's price is, of course, still driven by a positive earnings outlook," Westlink Global Equities chairman Rommel Macapagal said.
     PLDT saw gains in its market price for the last seven sessions.
     But after that, PLDT's ADRs fell 0.06 usd to 17.79 in New York on Friday.
     PLDT chairman Manuel Pangilinan said late last month that the company may exceed the 18 bln pesos target this year if wholly-owned unit Smart acquires the debts and control of listed wireless affiliate Pilipino Telephone Corp (Piltel).
     The move is seen to facilitate the backdoor-listing of Smart, which is required under its franchise to offer its shares to the public not later than August this year.
     PLDT booked a net profit of 11.2 bln pesos in 2003, nearly quadruple the previous year's level, thanks to Smart's 16.1 bln net profit.
     Pangilinan said Piltel is also on track with its target of hitting 400 mln pesos in net profit this year from a net loss of 3.35 bln in 2003.
     Piltel was up 0.04 peso at 1.76 on 2.8 mln shares.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Boeing in talks with Philippines for lease deal in Clark - report

     MANILA (AFX-ASIA) - Boeing Co is holding exploratory talks with the Clark airport authorities for a possible lease agreement over an 80-hectare government property in the former US military air base, the Philippine Daily Inquirer reported, citing Clark president and chief executive officer Adelberto Yap.
     Boeing is looking for a location for its regional maintenance facility, he said, adding that Boeing officials are to arrive in Manila after the Easter holidays, which begin Wednesday, to inspect the possible site in the Diosdado Macapagal International Airport in Clark, Pampanga.
     Yap was quoted as saying that the US aircraft manufacturer is keen on cashing in on the US government funding of more than 150 mln usd to modernize the Armed Forces of the Philippines.
     Part of the US assistance covers the repair of local military aircraft like C-130s which Boeing would like to undertake.
     If Boeing's plans go ahead, the US firm's investment could equal the estimated 450 mln usd that Federal Express will spend in building its Asia Pacific hub in Clark, according to Yap.
     "Boeing is also interested in servicing the aircraft of FedEx and UPS (United Parcel Service)," Yap said
     FedEx and UPS are two of the world's biggest freight carriers that have set-up their regional facilities in the Philippines.
     afxmanila@afxasia.com

Manila shares outlook -Mixed to higher in sluggish trade ahead of Easter break

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to higher with investors likely sidelined ahead of a long weekend beginning Wednesday, although Wall Street's gains on Friday provide a positive backdrop, dealers said.
     Pre-election political and securities concerns will make investors more cautious in taking any positions, and may lead to profit-taking, they added.
     Trading will resume on Monday next week.
     On Friday, 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.
     However, they said some investors may brave what is likely to be a sluggish session on news that Philippine Long Distance Telephone Co (PLDT) likely almost doubled its net profit in the first quarter to March to over 4. 5 bln pesos from 2.5 bln a year earlier.
     A PLDT source said the company's sustained performance was still driven by earnings of wireless unit Smart Communications Inc, adding that the first quarter earnings is consistent with the 18 bln pesos net profit forecast for PLDT this year.
     "In the holiday shortened trading next week, we expect market players to hold back from aggressive buying ahead of a long weekend," said Jose Vistan Jr, research director at AB Capital Securities.
     "The recent warnings of terrorism will make investors more skeptical of holding shares during the holidays. Politics has not only dampened investors' sentiments, but it is also making them less optimistic about the short-term outlook."
     With only five weeks to go before the May 10 presidential elections, incumbent Gloria Arroyo and actor Fernando Poe Jr are still in neck-and-neck race, according to results of the latest survey by Social Weather Stations.
     (1 usd = 56.275 pesos)
     afxmanila@afxasia.com

Philippines Jan 1-March 19 net portfolio inflows 94.6 mln usd vs 32.4 mln

     MANILA (AFX-ASIA) - Net portfolio inflows between Jan 1 and March 19 totalled 94.6 mln usd or triple the year-earlier level of 32.4 mln usd, central bank data showed.
     These inflows were invested in government securities, equities and currency markets.
     afxmanila@afxasia.com

Philippines' PLDT Q1 profit seen doubling to more than 4.5 bln pesos - source

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) is likely to have almost doubled its net profit in the first quarter to March to over 4.5 bln pesos from 2.5 bln a year earlier, driven by earnings of wireless unit Smart Communications Inc, a company source said.
     "First quarter numbers are being finalized. At this point, net income is breaking the 4.5 bln pesos level. This is consistent with the 18 bln pesos net income forecast for the year," the source said.
     PLDT chairman Manuel Pangilinan said late last month that the company may exceed the 18 bln pesos target this year if Smart acquires the debts and control of listed wireless affiliate Pilipino Telephone Corp (Piltel).
     The move is seen to facilitate the backdoor-listing of Smart, which is required under its franchise to offer its shares to the public not later than August this year.
     PLDT booked a net profit of 11.2 bln pesos in 2003, nearly quadruple the previous year's level, thanks to Smart's 16.1 bln net profit.
     Pangilinan said Piltel is also on track with its target of hitting 400 mln pesos in net profit this year from a net loss of 3.35 bln in 2003.
     PLDT's sustained earnings and continued payment of debts are seen allowing it to start paying dividends to common shareholders by 2005.
     PLDT plans to reduce debt by 350-370 mln usd this year from 2.9 bln usd as of end-2003.
     (1 usd = 56.275 pesos)
     afxmanila@afxasia.com

Philippine mayor gunned down in latest poll-related violence

     MANILA (AFX-ASIA) - A town mayor in the central Philippines was gunned down Saturday in the midst of campaigning for the May 10 national and local elections, the military said.
     Francisco Montero of Tarangan town in the island province of Samar was killed on the spot after gunmen aboard a motorcycle shot him at close range while he was about to board a ferry, the military said.
     Authorities believe the killing was politically motivated and a manhunt has been launched for his attackers, the military said.
     More than 17,000 local electoral posts from town councilors to mayors and governors are up for grabs in the May 10 polls.