|
|
Philippines' Digitel 2003 net loss 1.26 bln pesos vs profit 112.6
mln |
MANILA (AFX-ASIA) - Digital Telecommunications Philippines
Inc's (Digitel) 2003 results:
Revenue - 6.47 bln pesos vs 5.6 bln
Cost and expenses - 7.01 bln pesos vs 4.35 bln
Opg loss - 539.6 mln pesos vs profit 1.25 bln
Net loss 1.26 bln pesos vs profit 112.6 mln
Digitel, the telecommunications arm of the Gokongwei family,
said the rise in revenue in 2003 was due to the 1.04 bln peso
revenue from the wireless segment, which was partly offset by a fall
in local toll revenue.
It said costs and expenses ballooned largely due to higher
costs in the wireless services segment amounting to 2.5 bln pesos.
(1 usd = 55.80 pesos)
afxmanila@afxasia.com
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|
Philippine Q1 budget deficit 56.85 bln pesos vs target 58.9 bln |
MANILA (AFX-ASIA) - The government kept its budget deficit at
56.85 bln pesos in the first quarter to March, below the 58.9-bln
ceiling, the Department of Finance said.
Revenues totaled 152.61 bln against the target of 151.3 bln,
while expenditures reached 209.46 bln compared with the programmed
210.1 bln.
Financial markets are keeping an eye on the government's fiscal
performance amid concerns it may spend more than programmed ahead of
the May 10 national elections.
The government's fiscal performance is a major issue that
credit rating agencies are looking at as they assess the
Philippines' credit-worthiness amid burgeoning debt.
The government aims to limit this year's budget deficit to
197.8 bln pesos, of 4.2 pct of gross domestic product, in line with
its goal of achieving a balanced budget by 2009.
"Our second-quarter performance should be better than that in
the first quarter since April is income tax payment season," Finance
Secretary Juanita Amatong said in a news briefing.
The Bureau of Internal Revenue (BIR), the main source of
government revenue, collected taxes totaling 98.97 bln pesos in the
first quarter, against its goal of 101.08 bln.
Making up for the BIR's shortfall, the Bureau of Customs
collected 29.2 bln pesos against its target of 24.8 bln.
The Bureau of Treasury contributed 16.13 bln in revenues,
exceeding its goal of 14.55 bln.
The government raised additional revenues of 8.31 bln pesos
through other agencies, below the target of 10.8 bln.
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
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|
Philippines' Highlands Prime 2003 net profit 43.84 mln pesos vs
21.98 mln |
MANILA (AFX-ASIA) - Highlands Prime Inc's 2003 results:
Real estate sales - 414.5 mln pesos vs 90.1 mln
Cost of real estate sales - 299.24 mln pesos vs 54.52 mln
Gross profit - 115.2 mln pesos vs 35.6 mln
Opg expenses - 24.17 mln pesos vs 10.7 mln
Opg income - 45.15 mln pesos vs 21.65 mln
Net profit - 43.84 mln pesos vs 21.98 mln
Earnings per share - 0.0266 peso vs 0.0135
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
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|
Philippines' Ionics 2003 net loss 956.34 mln pesos vs loss 37.75 mln
|
MANILA (AFX-ASIA) - Semiconductor manufacturer Ionics Inc's
2003 consolidated results:
Sales - 6.76 bln pesos vs 9.81 bln
Cost of goods sold - 6.93 bln pesos vs 9.4 bln
Gross loss - 168.5 mln pesos vs profit 390.3 mln
Opg expenses - 248.89 mln pesos vs 203.02 mln
Other charges - 53.73 mln pesos vs other income 90.55 mln
Net loss - 956.34 mln pesos vs loss 37.75 mln
Loss per share - 2.23 pesos vs LPS 0.09
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
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|
Philippines' JG Summit 2003 net profit 2.14 bln pesos vs 2.48 bln
|
MANILA (AFX-ASIA) - JG Summit Holdings Corp's 2003 consolidated
results:
Revenue - 53.9 bln pesos vs 48.3 bln
Gross profit 16.6 bln pesos vs 14.8 bln
Opg expenses - 14.73 bln pesos vs 11.45 bln
Opg income - 1.82 bln pesos vs 3.81 bln
Net profit - 2.14 bln pesos vs 2.48 bln
JG Summit said its 2003 net profit took into account 219 mln
pesos worth of non-recurring items, such as a write-off of various
plant equipment and other assets, shutdown expenses, net of gain
from sale of fixed assets and certain equity securities and recovery
in value of temporary investment and marketable securities.
JG Summit is the holding company of the Gokongwei family, whose
interests cover property development, telecommunications, foods,
airline, shopping mall, textile and petrochemical products.
"Revenues of most business units improved, anchored by the
steady revenue growth in the foods business and the huge sales
registered by petrochemical business during the year, as well as the
rising revenues from the airlines and telecommunications
businesses," it said in the financial statement submitted to the
Securities and Exchange Commission.
"Over the next few years, the company expects to invest the
bulk of its capital expenditures on fast-growing industries with
large markets, specifically wireless communications and data,
commercial property development and branded co nsumer foods business
in other parts of Asia."
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
|
| Manila
shares close firmer on bargain-hunting in select blue chips |
MANILA (AFX-ASIA) - Share prices
closed firmer as investors hunted for bargains in select blue
chips, dealers said.
They said sentiment turned positive,
after the market's technical correction for four consecutive days,
amid a slew of encouraging developments on the political and
economic front.
The composite index closed up 14.91
points or 1.01 pct at the day's high of 1,498.11, on volume of
199.8 mln shares valued at 317.1 mln pesos.
In the broader market, gainers led
losers 30 to 18, while 34 stocks were unchanged.
The thin volumes, however, reflect
continuing caution with only three weeks to go before the national
elections here, dealers said.
"Investors took into account
recent positive news on the local front, such as the peso's sharp
rebound against the dollar, which is partly due to the improving
chances of President Gloria Arroyo to win a full term on May 10,
" said Elena Ponceca, research head at Unicapital Securities.
"There's bargain-hunting in a
few blue chips," said Accord Capital Equities analyst
Lawrence de Leon, adding that investors also expect the government
to have kept its budget deficit within target in the first
quarter.
The fiscal numbers may be announced
later today.
At the Philippine Dealing System,
the peso averaged 55.752 to the US dollar at noon after closing
yesterday at 55.860, and after weakening to a record 56.45 in late
March.
Businessmen largely prefer Arroyo to
her closest rival, film actor Fernando Poe Jr, given her
experience in contrast to Poe's and the latter's unimpressive
educational background.
Arroyo leads in the latest opinion
poll, and is expected to gain the most following the decision of
another presidential candidate, Raul Roco, to seek medical
treatment in the US, largely seen as an effective withdrawal from
the race.
Accord's de Leon said investors will
remain cautious in the coming days, but added that further market
upside is possible given the improving sentiment towards the
Philippines, as evidenced by the peso's recovery.
"We may also see renewed
position-taking ahead of the first quarter corporate
results," he said.
Top-traded Ayala Land was unchanged
at 5.60 pesos following cross sales worth 55.27 mln pesos, or 72
pct of total Ayala Land trades.
Philippine Long Distance Telephone
Co closed unchanged at 1,045 following early gains on renewed
interest ahead of its first quarter results.
Analysts said there's room for a
further upside for PLDT. Its American Depositary Receipts advanced
0.34 usd to 18.86 in New York overnight.
Analysts polled by AFX-Asia expect
PLDT to report a net profit in the range of 3.5-5.0 bln pesos for
the first quarter to March, against 2.5 bln in the same period
last year, with the growth still driven by its mobile telephony
business.
The outlook for the full year is
even more bullish with the possible acquisition by PLDT's
wholly-owned cash-rich wireless unit, Smart Communications Inc, of
a controlling stake in Pilipino Telephone Corp, of which PLDT
currently owns 45 pct, they said.
Ayala Corp closed up 0.10 at 5.40,
while unit Bank of the Philippines Islands was up 0.50 at 45.
Metropolitan Bank and Trust Co was
up 0.50 at 24.25.
Filinvest Land was down 0.02 at
1.00.
Manila Electric B, available to
foreign investors, was up 1.00 at 28, while Meralco A rose 0.25 to
18.50.
Meralco parent First Philippine
Holdings was up 0.75 at 22.75, while SM Prime was up 0.20 at 5.90.
The all-shares index was down 15.60
points at 949.46.
The commercial-industrial index rose
20.36 to 2,354.73.
The property sector was up 7.02 at
529.79, while mining advanced 1.08 to 1,432.43.
Oil was up 0.07 at 1.21, while
banking and financial services rose 3.72 to 427.04.
afxmanila@afxasia.com
|
| Manila
shares firmer late morning on positive political, economic
developments |
MANILA (AFX-ASIA) - Share prices
were firmer in late morning trade as cautious investors bought
selected blue chips at bargain prices, dealers said.
Sentiment has turned positive after
the market's four straight days of technical corrections, helped
by a slew of positive developments on the political and economic
fronts, they said.
At 11.19 am, the composite index was
up 9.54 points or 0.64 pct at 1,492. 74 on volume of 95.4 mln
shares valued at 145.2 mln pesos.
In the broader market, gainers led
losers 24 to 13, with 29 stocks unchanged.
"Investors are now taking into
account recent positive news on the local front, such as the
peso's sharp rebound against the dollar, which is partly due to
the improving chances of President Gloria Arroyo to win a full
term on May 10," said Elena Ponceca, research head at
Unicapital Securities.
Investors also expect the government
to have kept its budget deficit within target in the first
quarter, dealers said.
However, the thin volumes reflect
continuing caution with only three weeks to go before the national
elections here, they said.
At the Philippine Dealing System,
the peso averaged 55.751 to the US dollar after closing yesterday
at 55.860.
Businessmen largely prefer Arroyo to
her closest rival, film actor Fernando Poe Jr, given her
experience against his lack of training in holding public office
and unimpressive educational background.
Arroyo leads in the latest opinion
poll, and is expected to gain the most following the withdrawal of
another presidential candidate, Raul Roco, who pulled out of the
race to seek medical treatment in the US.
Ayala Corp was up 0.10 at 5.40,
while unit Bank of the Philippines Islands was up 0.50 at 45.
Metropolitan Bank and Trust Co was
up 0.50 at 24.25.
Philippine Long Distance Telephone
Co was unchanged at 1,045, after early gains on renewed interest
ahead of its first quarter earnings results.
afxmanila@afxasia.com
|
| Philippines'
Bacnotan 2003 net loss 583.8 mln pesos vs profit 69.6 mln |
MANILA (AFX-ASIA) - Bacnotan
Consolidated Industries Inc 2003 results:
Revenue - 11.58 bln pesos vs 11.66
bln
Cost of sales, freight services
and real estate - 10.04 bln pesos
vs 9.63 bln
Gross profit - 1.54 bln pesos vs
2.04 bln
Opg expenses - 1.03 bln pesos vs
1.26 bln
Opg income - 610.28 mln pesos vs
816.85 mln
Other expenses - 1.53 bln pesos vs
529.6 mln
Net loss - 583.8 mln pesos vs
profit 69.6 mln
Loss per share - 3.58 pesos vs EPS
0.18
Bacnotan Consolidated is a holding
company engaged in the production, distribution, marketing and
sale of clinker, cement, and concrete products. It also has
interests in steel manufacturing, banking, financial services and
property development.
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
|
| STOCKWATCH
- Philippines' PLDT firmer on renewed interest ahead of Q1 results |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) was firmer in thin trade mid-session,
on renewed interest amid expectations of increased earnings in the
first quarter, dealers said.
PLDT was up 5.00 pesos at 1,050 on
2,500 shares.
PLDT's American Depositary Receipts
advanced 0.34 usd to 18.86 in New York overnight and this also
helped sustain interest in the stock, dealers said.
But the weak volume reflects
investors' cautious stance, with only three weeks to go before the
national elections here, they said.
Analysts polled by AFX-Asia expect
PLDT to report a net profit in the range of 3.5-5.0 bln pesos for
the first quarter to March, against 2.5 bln in the same period
last year, with the growth still driven by its mobile telephony
business.
The outlook for the full year is
even more bullish with the possible acquisition by PLDT's
wholly-owned cash-rich wireless unit, Smart Communications Inc, of
a controlling stake in Pilipino Telephone Corp, of which PLDT
currently owns 45 pct, they said.
Dealers said there is room for a
further upside for PLDT, especially following a newspaper report
that Hong Kong-listed First Pacific Co Ltd, in partnership with
unit PLDT, is looking to acquire a minority stake in TA Orange,
Thailand's third largest mobile phone company.
"Volumes may build up in the
coming days as investors also take into account positive
developments on the domestic political and economic fronts,"
said Elena Ponceca, research head at Unicapital Securities.
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
|
| Philippines'
SM Development Corp 2003 net profit 361.3 mln pesos vs 310.3 mln |
MANILA (AFX-ASIA) - SM Development
Corp 2003 results:
Revenue - 410.1 mln pesos vs 324.6
mln
Cost and expenses - 43.5 mln pesos
vs 13.9 mln
Opg income - 366.6 mln pesos vs
310.7 mln
Net profit - 361.3 mln pesos vs
310.3 mln
Earnings per share - 0.117 peso vs
0.101
SM Development, formerly SM Fund, is
engaged in property development. However, its operations are still
focused on securities investments, with the real estate sector yet
to fully recover from the slump in previous years.
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
|
| Philippines'
Cashrounds seeks exemption from SEC rule on ATS |
MANILA (AFX-ASIA) - On-line
investment broker Cashrounds Inc said it has asked the Securities
and Exchange Commission for temporary exemption from the coverage
of new rules and regulations on Alternative Trading Systems (ATS).
Under its present business model,
Cashrounds has been operating as an ATS and had been doing so even
prior to the effectivity of the new SEC rules.
"With these new rules, it would
be illegal for any person to continue operating as an ATS without
a license from the SEC, beginning April 15, 2004, " the
company said in an April 15 letter to the stock exchange.
The rules will prevent Cashrounds
from legally continuing its current business operations, it added.
"In these regard, we have
requested that Cashrounds be allowed to continue operating as an
ATS, pending the issuance of an ATS license, as it is still in the
process of preparing and securing all requirements prescribed by
the rules," the company said.
It added that it will file an
application for registration as an ATS "as soon as
practicable."
afxmanila@afxasia.com
|
| Philippines
PLDT, HK's First Pacific may buy into Thailand's TA Orange -report |
MANILA (AFX-ASIA) - Hong Kong-listed
First Pacific Co Ltd, in partnership with unit Philippine Long
Distance Telephone Co (PLDT), is looking to acquire a minority
stake in TA Orange, Thailand's third largest mobile phone company,
the Philippine Daily Inquirer reported, without citing a source.
The report said First Pacific
managing director and concurrent PLDT chairman Manuel Pangilinan
was in Bangkok during last week's Easter holidays, but he
"would only say he was exploring investment opportunities in
Thailand when a Filipino journalist bumped into him at Bangkok
international airport on Good Friday."
The report is a follow-up to a story
in the same paper earlier this week, to which PLDT responded with
a statement to the Philippine Stock Exchange, saying "Pangilinan's
recent trip to Thailand was made in relation to First Pacific and
in his capacity as its managing director."
"We have received no
information regarding Mr Pangilinan's trip to Thailand," said
the April 14 statement to the exchange.
The report said TA Orange's foreign
partner, France's Orange, has just sold a 39-pct stake to Thai
partner TelecomAsia PCL for just one baht, after pouring 550 mln
usd into the three-year-old cellular company.
The French company still holds a 10
pct interest in the venture, which it may also eventually sell,
the report said.
The report added that the French
divestment has paved the way for TA Orange to refinance the joint
venture's 32-bln baht debt and proceed with a plan to raise 6 bln
baht from the Thai partner to fund network expansion.
TA Orange also operates a fixed-line
phone network in Bangkok and suburbs, the report said.
afxmanila@afxasia.com
|
| Philippine
banks end-Feb outstanding loans 1.44 trln pesos, down 1.5 pct
yr/yr |
MANILA (AFX-ASIA) - Outstanding
loans of Philippine commercial banks as of end-February totaled
1.44 trln pesos, down 1.5 pct year-on-year, central bank data
showed.
On a monthly basis, total loans
declined 0.8 pct.
No other details were immediately
available.
The central bank earlier reported
that commercial banks' outstanding loans rose a marginal 0.8 pct
year-on-year to 1.45 trln pesos as of end-Jan.
(1 usd = 55.86 pesos)
afxmanila@afxasia.com
|
| Philippines
Feb overseas workers remittances 594 mln usd, up 9.8 pct yr-on-yr |
MANILA (AFX-ASIA) - Remittances from
Filipinos working overseas jumped 9. 8 pct year-on-year to 594 mln
usd, central bank data showed.
In the January-February period,
remittances totaled 1.2 bln usd, up 1.3 pct year-on-year.
The inflows helped limit the peso's
depreciation against the US dollar during the two months, when
political uncertainties ahead of the May 10 presidential elections
saw the local unit weaken to all-time lows.
afxmanila@afxasia.com
|
| Development
Bank of the Philippines NPL ratio 11.36 pct as of March 23 |
MANILA (AFX-ASIA) - State-owned
Development Bank of the Philippines said its non-performing loans
(NPL) accounted for 11.36 pct of total loans as of March 23, down
from 12.46 pct as of Sept 19.
As of March 23, the bank's NPL stood
at a total of 9.94 bln pesos against 10.1 bln as of Sept 19.
Specific provisions totaled 3.7 bln
pesos and general provisions 2.09 bln.
Return on equity stood at 10.15 pct.
(1 usd = 55.86 pesos)
afxmanila@afxasia.com
|
|
Philippine central bank leaves policy rates steady |
MANILA (AFX-ASIA) - The Monetary Board today voted to leave the
central bank's policy interest rates steady at 6.75 pct for
overnight borrowing and 9. 00 pct for overnight lending, the
regulator's governor, Rafael Buenaventura, said.
The rates were last adjusted on July 2 last year, when the
central bank cut them by 25 basis points.
"In its assessment of prevailing economic and financial
conditions, the Monetary Board concluded that the current monetary
policy stance remains appropriately supportive of the economy's
low-inflation growth path, and the macroeconomic environment remains
generally conducive to credit demand," Buenaventura said in a
statement.
He said the board sees some factors related to costs, such as
the recent increase in transport fares, proposed adjustments in
utility charges and wage hikes, as the principal sources of risk to
the inflation outlook.
"Inflationary pressures resulting from cost-side factors are
largely outside the influence of monetary policy, and therefore do
not require action from monetary authorities," he said.
The central bank's monetary policy, however, is likely to
remain cautious, given the inflation risks from sentiment-linked
volatility in the nominal exchange rates.
The peso today closed at 55.860 against the US dollar, from
yesterday's 55.80, on volume of 228.4 mln usd.
The peso has recovered sharply from a record low of 56.45 in
late March, thanks to fresh dollar inflows and with the market
cheering incumbent Gloria Arroyo's lead in the latest opinion poll
ahead of the May 10 presidential elections.
Moving forward, however, Buenaventura said demand-driven
pressures on consumer prices are likely to remain subdued given the
double-digit unemployment rate, the remaining unused capacity in the
manufacturing sector as well as the still modest growth in exports
and bank lending over the past several quarters.
"In light of these conditions, the Monetary Board believes that
the balance of demand- and supply-side risks to inflation points to
a continued manageable environment for inflation over the policy
horizon," Buenaventura said.
"After due consideration of prevailing inflationary risks, the
Monetary Board expects average inflation for 2004 and 2005 to lie
within the government's inflation target of 4-5 pct."
afxmanila@afxasia.com
|
|
Philippines' Fil-Estate Land expects to be debt-free by September
|
MANILA (AFX-ASIA) - Property developer Fil-Estate Land Inc
should be debt-free by September this year after settling remaining
debts totalling 279 mln pesos through debt-for-asset swap deals,
chief financial officer Roberto Roco said.
Roco said during the company's annual stockholders' meeting
that creditor banks have agreed on a debt-for-asset swap
arrangement.
He said the company has been reducing debts to enable it to
focus on new projects that are highly marketable.
The company has lined up several new residential and
condominium projects, targeting middle and mass markets. Among its
residential projects are the Tierra Vista Lounge and Sunflower in
Batangas; Richgate in Baguio; and the Festival Villas in Ilo-ilo.
Fil-Estate Land's 20-hectare Canyon Woods in Batangas City and
the 4-hectare Pililia Fantasy in Rizal are intended for the
higher-income group.
It will also transform a 1,269-hectare property in Batangas
into a tourism and residential area to be called Nasugbu Harbortown,
for which it will initially spend 300 mln pesos.
The company posted a net profit of 17.6 mln pesos for its
fiscal year ended Sept 30 2003, up 97 pct from the previous year.
(1 usd = 55.86 pesos)
afxmanila@afxasia.com
|
|
Philippines' San Miguel in 45-mln usd non-alcoholic venture in China |
MANILA (AFX-ASIA) - San Miguel Corp said it has secured a
license to make non-alcoholic beverages, such as tea and juices, at
Shunde in China's Guangdong Province.
The license, which will entail investments totaling 45 mln usd,
paves the way for the Philippine food and beverage conglomerate's
further expansion into China, where it already operates breweries.
In a statement, San Miguel said it secured the business license
from the Industrial and Commercial Administrative Bureau of Shunde
District in Foshan City and the Foreign Funded Enterprise
Registration Administration.
A new company, San Miguel (Guangdong) Foods and Beverages Co
Ltd, will handle the non-alcoholic venture, it added.
San Miguel said the license, which allows it to operate in
Shunde for 50 years, comes with "incentives and preferential
treatment from the relevant government bureaus."
"San Miguel views the Shunde investment as strategic to the
company's long-term growth prospects," the conglomerate said.
"Shunde's infrastructure and business-friendly incentives will
not only provide San Miguel with strategic access to the huge
market, but also (allow it to) cash in on China's impressive
economic growth," it added.
Guangzhou San Miguel Brewery Co Ltd, San Miguel Shunde Brewery
Co Ltd, San Miguel Bada Baoding Brewery Co Ltd and San Miguel
Brewery Hong Kong Ltd operate the conglomerate's breweries in China.
"San Miguel has a long-standing business relationship with the
Chinese people, since the founding of the Hong Kong brewery in
1948," it said.
The company also produces and markets, both locally and for
export, glass containers in China through its Zhaoqing San Miguel
Glass Co.
It also makes a crown line, as well as plastic crates and
pallets at San Miguel Shunde Packaging Co.
Its latest investment in China is part of its regional
expansion program, which covers six other markets, namely Taiwan,
Australia, Thailand, Indonesia, Vietnam and Malaysia.
It recently agreed to buy for 102 mln usd Thai Amarit Brewery
Ltd's assets, which included a modern and fully-equipped brewery, on
a 21. 75-hectare site at Pathum Thani province.
San Miguel sells nine out of 10 bottles of beer sold in the
Philippines and it is also involved in the processed meat, poultry,
soft drinks, liquor and bottled water businesses.
afxmanila@afxasia.com
|
|
OUTLOOK - Philippines' PLDT Q1 net profit 3.5-5.0 bln pesos vs 2.5
bln |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT)
is likely to have booked a net profit in the range of 3.5-5.0 bln
pesos for the first quarter to March, against 2.5 bln in the same
period last year, with the growth still driven by its mobile
telephony business, analysts said.
The outlook for the full year is even more bullish with the
possible acquisition by PLDT's wholly-owned cash-rich wireless unit,
Smart Communications Inc, of a controlling stake in Pilipino
Telephone Corp (Piltel), which is currently 45-pct owned by PLDT,
they said.
Smart was the first among local wireless operators to offer
prepaid airtime loads in small denominations, and also introduced to
the market last year its the "Pasa Load" scheme, which allows
subscribers to share extra airtime load to other Smart subscribers.
These marketing schemes have been well received in the
Philippines, while a number of value-added services, including
downloadable ringtones and images, have also been a major source of
revenue not just for Smart and Piltel, but for their rivals as well.
Filipinos' love affair with their cellular phones has, indeed,
been providing a big boost to the nations' economy, analysts said.
Offering prepaid loads in smaller quantities is like selling
consumer products in sachets, a marketing strategy that has proven
to be very effective in this impoverished Southeast Asian nation.
Ron Rodrigo, a research consultant at Accord Capital Equities,
said he expects PLDT's first quarter net profit to come in at 4.0
bln pesos.
"With the effective marketing gimmicks that Smart has launched,
PLDT is expected to announce another impressive set of results for
the first quarter, " he said, adding that the second quarter even
looks better given expectations of a surge in text messages during
the election season.
Filipinos will go to the polls on May 10 to elect a president,
vice president, legislators and local government officials.
There are more than 22 mln cellular phone subscribers in the
country sending as many as 170 mln text messages daily. Phone firms
charge at least 1. 00 peso per message sent.
The PLDT group, including Smart and Piltel's Talk 'N Text
brand, had total wireless subscribers of more than 13 mln as of
January.
PLDT, whose earnings-driven gains pushed its price on the local
bourse to as high as 1,080 pesos this week from the end-2003 level
of 970, expects to announce its first quarter results early next
month.
Its price had surged to the highest level in over four years,
with the stock leading the market's rally past the 1,500-points mark
before the Easter break this month.
That was after a PLDT source earlier said Smart's sustained
strong performance likely helped PLDT double its net profit to more
than 4.5 bln pesos in the first quarter.
The source believes this earnings performance makes it even
more possible for PLDT to meet the 2004 net profit of 17-18 bln
pesos projected by analysts, or a 60 pct surge from 11.2 bln last
year.
After announcing PLDT's stunning results for 2003, which saw
its net profit nearly quadruple from the previous year's level, PLDT
chairman Manuel Pangilinan said he sees "excellent prospects" for
PLDT in the years ahead.
He also said that PLDT is comfortable with the analysts' profit
forecasts for this year.
PLDT may even earn more than that if Smart acquires control of
Piltel, which is expected to return to profitability this year, he
added.
James Lago, research head at Westlink Global Equities, said he
sees PLDT's first quarter net profit in the range of 4-5 bln pesos.
Gomer Tan, an analyst at Regina Capital Development Corp, said
he expects a first quarter net profit of 3.5 bln pesos.
"The first quarter results may include some spill-over profits
from the fourth quarter of last year, which is traditionally the
strongest period for PLDT," he said.
But the analysts are looking beyond the consistently strong
earnings performance of Smart in making bullish projections for PLDT.
Speculation about a merger of Smart and Piltel had pushed the
latter's price dramatically on the local bourse.
Fitch Ratings has upgraded its long-term foreign and local
currency ratings on PLDT to "BB" from "BB-", with a stable outlook,
citing a sustained period of improvement in the company's operating
and financial profile, which is underpinned mostly by Smart's
impressive growth.
While PLDT's own financial position is weaker than the
consolidated profile, Fitch said Smart has more flexibility to
distribute all of its annual income to the parent company than in
the past.
The ratings also consider the prospect that Smart will soon
acquire a majority interest in Piltel and that the entity will
become reconsolidated into the PLDT group, it said.
"The stable outlook reflects Fitch's view that neither the
existing competitive landscape nor the planned resumption of common
share dividends by PLDT would disrupt the group's de-leveraging
efforts," it said.
However, Fitch said it would monitor closely any developments
with respect to competition as this historically has had an impact
on the company's credit profile.
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
|
Philippines' Cosmos Bottling Corp 2003 net profit 544.2 mln pesos vs
860.4 mln |
MANILA (AFX-ASIA) - Cosmos Bottling Corp's 2003 results:
Net sales - 9.91 bln pesos vs 9.03 bln
Cost of sales - 7.15 bln pesos vs 6.51 bln
Gross profit - 2.77 bln pesos vs 2.52 bln
Opg expenses - 2.08 bln pesos vs 1.75 bln
Opg income - 872.32 mln pesos vs 797.03 mln
Net profit - 544.2 mln pesos vs 860.4 mln
Earnings per share - 0.396 peso vs 0.372
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
|
Philippines' Tanduay Holdings 2003 net profit 300.1 mln pesos vs
436.6 mln |
MANILA (AFX-ASIA) - Liquor-maker Tanduay Holdings Inc's 2003
results:
Net sales - 5.52 bln pesos vs 5.42 bln
Cost of goods sold - 4.37 bln pesos vs 4.29 bln
Gross profit - 1.14 bln pesos vs 1.13 bln
Opg expenses - 691.6 mln pesos vs 646.07 mln
Opg income - 450.95 mln pesos vs 481.15 mln
Net profit - 300.1 mln pesos vs 436.6 mln
Earnings per share - 0.092 peso vs 0.134
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
| Manila
shares close flat amid caution ahead of May 10 polls |
MANILA (AFX-ASIA) - Share prices closed flat, with the market
still lacking clear direction, as investors exercised caution ahead
of the May 10 presidential elections, dealers said.
Wall Street's falls overnight and the lack of fresh buying
incentives also kept investors sidelined, they added.
The composite index closed down 0.23 points or 0.02 pct at
1,483.20 on volume of 127.5 mln shares valued at 402.1 mln pesos.
The index moved in a range of 1,479.40 and 1,483.87.
In the broader market, losers led gainers 15 to 12, with 43
stocks unchanged.
Philippine Long Distance Telephone was up 5.00 pesos at 1,045,
limiting the market's downside.
"With election day only about three weeks away, investors'
interest to trade is waning. We will likely see more rangebound or
sideways trades in the coming days," DA Market Securities president
Nestor Aguila said.
The peso's strong rebound against the US dollar this week and
the improving prospects of President Gloria Arroyo, the financial
markets' favorite, in the May polls have failed to boost interest in
equities -- reflecting the current cautious mood, dealers said.
However, they are not ruling out some positioning ahead,
particularly in stocks that are expected to report improved earnings
in the first quarter.
"The market is still directionless but holding support at
1,480. If it stays above 1,480, there is a possibility of an upside
on positioning even before the elections," Westlink Global Equities
chairman Rommel Macapagal said.
Top-traded SM Prime Holdings was unchanged at 5.70 pesos on
volume of 32. 3 mln shares, mostly accounted by cross sales.
Petron Corp fell 0.05 to 2.90.
Union Cement was also among the most active stock due to cross
sales, as it fell 0.02 to 1.74 on 3.5 mln shares.
Benpres Holdings was down 0.01 at 0.51 after announcing a
narrower net loss of 1.907 bln pesos for 2003 compared with a
restated net loss of 4.0 bln for 2002.
Benpres said it restated its 2002 revenue and earnings to
reflect the adoption of new accounting standards, including the
effect of unit First Philippine Holdings's restatement of its 2002
financial results, stemming from unit Manila Electric Co's refund of
overcharges.
Benpres initially reported a net loss of 1.06 bln pesos for
2002.
The all-shares index was down 6.14 points at 965.06.
The commercial-industrial index rose 0.09 to 2,334.37.
Property was down 0.07 at 522.77, and mining dropped 26.05 to
1,431.35.
Oil sector was up 0.03 at 1.14, while banking and financial
services ended unchanged at 423.32.
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
| Manila
shares slightly lower mid-session amid caution ahead of May polls |
MANILA (AFX-ASIA) - Share prices
were slightly lower mid-session in thin trade as investors remain
cautious with the May 10 presidential elections drawing near,
dealers said.
Wall Street's falls overnight and
the lack of fresh positive leads also kept investors sidelined,
they added.
At 10.39 am, the composite index was
down 0.90 points or 0.06 pct at 1, 482.53 on volume of 50.08 mln
shares valued at 254.2 mln pesos.
"The market is still
directionless but holding support at 1,480. If it stays above
1,480, there is a possibility of an upside on positioning even
before the elections," Westlink Global Equities chairman
Rommel Macapagal said.
Top-traded SM Prime was up 0.10 at
5.80 pesos, with almost all of trades, totaling 29.7 mln shares,
accounting for cross sales.
Philippine Long Distance Telephone
Co was unchanged at 1,040.
Ayala Land was down 0.10 at 5.50.
San Miguel A was down 0.50 at 56.50,
while San Miguel B was unchanged at 70.
Benpres was unchanged at 0.52 after
announcing a narrower net loss of 1. 907 bln pesos for 2003
compared with a restated net loss of 4.0 bln for 2002.
Benpres said it restated its 2002
revenue and earnings to reflect the adoption of new accounting
standards, including the effect of unit First Philippine
Holdings's restatement of its 2002 financial results, stemming
from unit Manila Electric Co's refund of overcharges.
Benpres initially reported a net
loss of 1.06 bln pesos in 2002.
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
| Philippines'
PLDT to list additional 550 common shares April 16 - PSE |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) will list an additional 550 common
shares tomorrow, according to a Philippine Stock Exchange
circular.
The shares were part of those
available under PLDT's executive option plan.
At 10.16 am, PLDT was unchanged at
1,040 pesos.
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
| Philippine
Stock Exchange seeks easing of listing rules for IT firms |
MANILA (AFX-ASIA) - The Philippine
Stock Exchange (PSE) said it has proposed to the Securities and
Exchange Commission some revisions to the listing rules for
information technology companies.
The SEC has reportedly approved the
PSE proposal, but the exchange said it has yet to receive official
notification on it.
Among the revisions the PSE proposed
are the requirement for the listing of companies on the small and
medium enterprise (SME) board.
The PSE wants IT companies with
intangible assets, such as software applications, exempted from
the minimum 5-mln peso tangible assets requirement.
The listing rules require a company
seeking a listing on the SME board to have a minimum authorized
capital stock of 20 mln pesos and a maximum of 100 mln, of which
25 pct must be subscribed and fully paid, while the net tangible
assets must be at least 5 mln pesos.
(1 usd = 55.90 pesos)
afxmanila@afxasia.com
|
| Manila
shares outlook - Mixed on caution ahead of May 10 polls |
MANILA (AFX-ASIA) - Share prices are
expected to open mixed in the absence of a clear direction, with
investors likely to continue exercising caution as the May 10
presidential elections draw near, dealers said.
Wall Street's extended falls
overnight may undermine sentiment, although some bargain-hunting
is also possible, they added.
Yesterday, the composite index
closed down 2.04 points, or 0.14 pct, at 1, 483.43.
"The market will remain
cautious until the May 10 elections. The near-term bias may be up,
as the index is at its immediate support level," AB Capital
Securities research director Jose Vistan Jr said.
Analysts, however, said the peso's
strong rebound against the US dollar early this week and improving
chances of incumbent Gloria Arroyo, the financial markets'
favorite, at the May polls should lift investor sentiment.
Arroyo leads opinion polls for the
presidential race over main opponent Fernando Poe Jr and her bid
is seen getting a boost from third candidate Raul Roco's decision
to withdraw from the campaign trail to seek medical treatment in
the US for a lower back pain.
The peso closed yesterday at 55.80
against the dollar, an 11-week high and unchanged from the
previous day's finish.
The market's support is seen at
1,450 and resistance at 1,500.
afxmanila@afxasia.com
|
| Philippines'
Metro Pacific seeks 15-day extension in filing 2003 statement |
MANILA (AFX-ASIA) - Metro Pacific
Corp has sought a 15-day extension in filing its 2003 financial
statement with the Securities and Exchange Commission (SEC),
citing possible audit adjustments after shipping unit Negros
Navigation Co Inc recently filed for rehabilitation.
Philippine companies have until
today to file their 2003 statements with the SEC.
Metro Pacific, which also has
interests in property development, earlier reported to the
Philippine Stock Exchange an un-audited full year to Dec 2003 net
profit of 56.50 mln pesos against a net loss of 11.90 bln in the
previous year.
"We would like to assure you
that this request is being done in good faith and not for any
purpose aimed at delaying the submission of the requested
information," said David Nugent, Metro Pacific vice-president
for corporate communications, in a letter to the SEC.
(1 usd = 55.80 pesos)
afxmanila@afxasia.com
|
| Chinatrust
Philippines NPL ratio 5.60 pct as of March 23 vs 4.54 as of Dec 16 |
MANILA (AFX-ASIA) - Chinatrust
(Philippines) Commercial Bank Corp said its non-performing loans (NPL)
accounted for 5.60 pct of total loans as of March 23, up from 4.54
pct as of Dec 16.
In its published statement of
condition, the bank said its NPLs totaled 631.55 mln pesos,
against general provisions of 97.15 mln and specific provisions of
551.85 mln.
It earlier reported total NPLs of
514.21 mln pesos as of Dec 16, against general provisions of
192.88 mln and specific provisions of 474.86 mln.
Return on average equity as of March
23 stood at 20.84 pct.
(1 usd = 55.80 pesos)
afxmanila@afxasia.com
|
| Philippines'
Benpres 2003 net loss 1.907 bln pesos vs restated loss 4.0 bln |
MANILA (AFX-ASIA) - Benpres Holdings
Corp's 2003 results:
Revenue - 5.2 bln pesos vs 5.7 bln
Gross profit - 1.3 bln pesos vs 1.8
bln
Opg loss - 2.68 bln pesos vs loss
1.45 bln
Net loss - 1.907 bln pesos vs 4.0
bln
Loss per share - 0.4162 peso vs LPS
0.4154
In its financial statement, Benpres
said it restated its 2002 revenue and earnings to reflect the
adoption of new accounting standards, including the effect of unit
First Philippine Holdings's restatement of its 2002 financial
results, stemming from unit Manila Electric Co's refund of
overcharges.
Benpres reported a net loss of 1.06
bln pesos in 2002.
Benpres is the holding firm of the
Lopez family, which has interests in broadcasting, power
generation and distribution, telecommunications, water
distribution, properties and toll ways.
(1 usd = 55.80 pesos)
afxmanila@afxasia.com
|
|
Philippines' Prudential Bank declares 20.97 pct stock dividend
|
MANILA (AFX-ASIA) - Prudential Bank said its board of directors
has approved the declaration of a 20.97 pct stock dividend to
replace redeemed preferred shares in accordance with banking
regulations.
The bank told the stock exchange record and payments dates will
be announced later.
afxmanila@afxasia.com
|
|
Philippines' Universal Robina BB rating affirmed, outlook stable -
S&P |
MANILA (AFX-ASIA) - Standard & Poor's Ratings Services said it
affirmed today its BB corporate credit rating, with a stable
outlook, for food company Universal Robina Corp.
"The rating reflects Universal Robina's established market
position in the Philippines and its low-cost structure that supports
satisfactory operating margins," S&P said in a statement.
"The strengths are, however, partly offset by weaknesses, such
as Universal Robina's high capital outlay and execution risks in
connection with its international growth strategy, and earnings
exposure to volatile raw material costs and supply and foreign
exchange movements."
S&P added the close link between Universal Robina's financial
policy with that of parent JG Summit Holdings Inc is another factor
that constrains the rating.
"The stable outlook is based on Universal Robina's strong
competitive position and low-cost operations and reflects the
expectation that the company will not be required to provide
financing or other type of support to related parties," said S&P
credit analyst Ee-Lin Tan.
Universal Robina is one of the largest food companies in the
Philippines, with a wide range of products contributing to most of
its revenue.
In recent years, the company has established operations in
several Asian markets, including Thailand, Malaysia, and Indonesia.
JG Summit, one of the largest business conglomerates in the
Philippines, has an 86 pct stake in Universal Robina.
Universal Robina's diversified portfolio of products and strong
brands "mitigate the effect of intense competition in the domestic
branded consumer food industry," S&P said.
Its wide distribution network also covers diverse regions of
the country and contributes substantially to its ability to dominate
the market, S&P added.
It said the company also enjoys strong bargaining power with
suppliers, economies of scale, low labor costs and proximity of
production facilities to end markets.
"These factors support Universal Robina's relatively favorable
cost structure and ability to price competitively," said Tan.
The company's operating margins averaged 16 pct a year in the
past three years.
However, S&P said Universal Robina's growth depends on its
ability to expand its overseas Asian markets, which could help
diversify earnings and provide good growth opportunities.
It also faces intense competition and execution risks,
particularly in newer markets, such as Vietnam and China, S&P said.
S&P said Universal Robina's rating is also constrained by the
exposure of its earnings to uncertainties over raw material supplies
and costs.
In addition, it said the company is vulnerable to adverse
foreign exchange fluctuations as about two-thirds of its cost base
is in US dollars, while most of its revenue is in pesos.
"The company's financial policy is closely linked to that of
parent JG Summit, which has a more aggressive capital structure.
Major financing decisions require the approval of JG Summit, which
also manages Universal Robina's excess cash," S&P said.
Universal Robina's total debt-to-total capitalization stood at
44 pct as of Sept 30, 2003, while JG Summit's was 56 pct.
"Furthermore, certain entities in the (JG Summit) group are
financially weaker or could incur more debt to fund their expansion,
particularly Digital Telecommunications Philippines Inc," S&P said.
(1 usd = 55.80 pesos)
afxmanila@afxasia.com
|
|
Philippines' BayanTel Jan-Feb net revenue 886 mln pesos, up 11 pct
yr-on-yr |
MANILA (AFX-ASIA) - Bayan Telecommunications Inc, a unit of the
Lopez family's Benpres Holdings Corp, said it posted net revenue of
886 mln pesos in the first two months of the year, up 11 pct from
798 mln a year earlier.
BayanTel attributed the gains to growth in its subscriber base
and increased sales in international operations as well as data
services.
As of end-Feb, BayanTel's landline subscribers totalled almost
250,000, or 25 pct more than a year earlier.
It did not provide net profit figures.
BayanTel, which is currently under receivership, said it could
sustain revenue growth for the rest of the year, given expectations
of a much improved business and political climate by the second half
of 2004.
The company is restructuring 477 mln pesos worth of debts, of
which 200 mln are owed to bond holders and 277 mln to banks. Five
pct of its total loans are classified as clean.
It plans to complete the rehabilitation by the third quarter of
the year, ahead of the April 2005 deadline set by the court.
BayanTel vice president for corporate communications Michael
Cervantes said BayanTel would continue to build on the success of
its landline business by offering better value for money to
subscribers.
The company is also targeting growing industries like call
centers and business process outsourcing firms as a major source of
data business.
(1 usd = 55.80 pesos)
afxmanila@afxasia.com
|
|
American Standard to buy additional equity in Philippines' Sanitary
Wares |
MANILA (AFX-ASIA) - American Standard Group said it has offered
to purchase, through its wholly-owned subsidiary American Standard
Inc, additional equity in Sanitary Wares Manufacturing Corp
amounting to 1.2 mln usd to bring the latter's negative equity to
positive.
Sanitary Wares, which makes ceramics and tiles, earlier said it
will double its capital to 1.0 bln pesos and issue 5.0 bln
redeemable preferred shares with a par value of 0.10 peso each.
Some 500 mln shares from the increased authorized capital stock
will be listed as common shares with a par value of 1.00 peso each.
US-based American Standard will subscribe to up to 3.15 bln of
the redeemable preferred shares, payment for which will be made
either in cash or through debt-for-equity conversion.
"If necessary, American Standard will purchase additional
equity (in Sanitary Wares) by converting an amount to be determined
of debt owed by Sanitary Wares to American Standard to equity,"
American Standard president Thomas Siebert said in an April 13
letter to the stock exchange.
He said the two companies are now finalizing the price and
terms of the subscription to the redeemable preferred stock.
"Given the urgency of Sanitary Wares's financial condition and
assuming the final terms of the subscription will be approved by its
board, American Standard has agreed to assume some risk and advance
the 1.2 mln usd cash consideration for the issuance of the
redeemable shares prior to the receipt of the requisite shareholder
and (Securities and Exchange Commission) approvals," he said.
afxmanila@afxasia.com
|
|
Philippines' Concrete Aggregates ends mine extraction contract with
Orica |
MANILA (AFX-ASIA) - Concrete Aggregates Corp said its board of
directors has approved the termination of the company's mine
extraction contract with Orica Explosives Philippines Inc, which is
part of the Orica Group of Australia.
Orica is engaged in the manufacture and sale of explosives and
is 90 pct foreign-owned.
Concrete Aggregates said it decided to terminate the contract,
originally set to expire in Feb 2006, as it become unconstitutional
in view of Orica's foreign ownership.
The Supreme Court has recently voided certain provisions of the
Philippine Mining Act of 1995, which allowed 100 pct foreign-owned
companies to exploit the country's mineral resources.
Concrete Aggregates also cited alleged "material breaches" of
the contract and heavy losses it is now suffering.
afxmanila@afxasia.com
|
|
Philippines' Arroyo says may consider pulling out troops from Iraq
|
MANILA (AFX-ASIA) - President Gloria Arroyo said for the first
time today that the Philippines may consider pulling out its troops
from Iraq, should the security situation there deteriorate further,
Agence France-Presse reported.
The Philippines, an ally of the US in the global war on terror,
has 49 soldiers serving under Polish command in south central Iraq
and about two dozen other policemen and medical workers elsewhere in
the country.
"The decision on whether or not to withdraw our peacekeeping
forces will depend on the security situation in Iraq in the days to
come," Arroyo said in a written statement.
She stressed that the Philippines is committed to helping
advance democracy and economic progress in Iraq, "and that is why we
are not making any rash decisions" on whether to pull out.
The vice chief of staff of the Philippines military,
Lieutenant-General Rodolfo Garcia is set to fly to Iraq later today
to inspect the Filipino troops under Polish command.
"Some of the members of the contingent have been subjected to
hostile operations. Thankfully, they've escaped with very minor
injuries," said Arroyo spokesman Ignacio Bunye.
Arroyo has, so far, rejected calls from the political
opposition to pull out Filipino forces from Iraq, amid escalating
violence there targeting foreign nationals.
A Filipino driver was among several foreigners Iraqi gunmen had
kidnapped, but was released last week.
"While the Philippine government is determined to help the
Iraqi people in rebuilding their nation, the safety of our
peacekeeping forces in Iraq is still our utmost concern," Arroyo
said.
"The government will take all precautionary measures to ensure
the safety of our contingent."
|
| Manila
shares close mixed; PLDT, Globe falls offset bargain-hunting -
UPDATE |
(Updating with analyst quotes,
prices)
MANILA (AFX-ASIA) - Share prices
closed slightly lower in a mixed session, with profit-taking in
Philippine Long Distance Telephone Co and Globe Telecom offsetting
gains made by other stocks that attracted bargain-hunters, dealers
said.
The market was directionless and
investors remained largely sidelined, with Wall Street's losses
overnight undermining sentiment.
However, dealers said they saw
strong support at the 1,480-point level, indicating that the
market may be ready to resume its upward trek soon after three
days of technical correction.
The composite index closed down 2.04
points or 0.14 pct at 1,483.43 on volume of 96.4 mln shares valued
at 500.1 mln pesos. It moved between 1,477. 21 and 1,488.98.
In the broader market, gainers led
losers 23 to 21, with 41 stocks unchanged.
At the Philippine Dealing System,
the peso averaged 55.740 to the US dollar at noon, after closing
at an 11-week high of 55.800 yesterday.
"There are no fresh leads on
the corporate front, while investors were still hesitant to trade
amid the market's lack of clear direction," said Gomer Tan,
an analyst at Regina Capital Development Corp.
Dealers said investors are expected
to stay cautious as the May elections draw near. But they see
further accumulation in select stocks in anticipation of good
first quarter results, which may start coming in later this month.
"PLDT and Globe Telecom offset
the market's gains on selective bargain-hunting," said
Lawrence de Leon, an analyst at Accord Capital Equities.
Top-traded PLDT was down 15 pesos at
1,040 on volume of 247,250 shares.
Globe was second most active and
down 25 at 855 on 58,560 shares.
PLDT's American Depositary Receipts
fell 0.28 usd to 18.83 in New York overnight, but still ahead of
its share price on the local bourse.
PLDT's share price rose in recent
sessions to the highest level in more than four years on
expectations of impressive earnings in the telecom sector in the
first quarter, largely from the wireless business.
Manila Electric B, available to
foreign investors, rose 1.50 to 27 and Meralco A gained 0.50 to
18.50, while parent First Philippine Holdings advanced 0.50 to
22.50.
Ayala Land was up 0.10 at 5.60,
while parent Ayala Corp rose 0.30 to 5.30.
SM Prime was down 0.10 at 5.70.
San Miguel B, available to foreign
investors, was down 1.00 at 70, while San Miguel A was unchanged
at 57.
Dealers said the peso's strong
rebound against the dollar and the improving chances of incumbent
Gloria Arroyo, the financial markets' favorite, at the May 10
presidential polls are factors that should help lift sentiment in
the coming sessions.
Arroyo now leads opinion polls for
the presidential race against main rival Fernando Poe Jr.
Her lead against Poe, whose
candidacy had spooked financial markets because of his lack of
experience in public service, is seen widening further after
presidential candidate Raul Roco announced his decision to
withdraw from the campaign trail to seek medical treatment in the
US for a lower back pain.
There have been speculations that
Roco, who has consistently been in a distant third in opinion
polls, behind Arroyo and Poe, is seeking a "graceful
exit" from the presidential race due to his poor showing in
the surveys.
Roco spokesman Jaime Galvez Tan,
however, said the candidate will be back in two weeks.
Analysts said Roco's supporters are
people who want an alternative to Arroyo, but are unlikely to vote
for someone with an unimpressive educational background like Poe.
The all-shares index was down 5.11
points at 971.20.
The commercial-industrial index fell
2.80 to 2,334.28.
Property fell 0.02 to 522.84, while
mining rose 8.49 to 1,457.40.
Oil was unchanged at 1.11.
Banking and financial services shed
1.06 to 423.32.
afxmanila@afxasia.com
|
| Manila
shares mixed as PLDT, Globe falls offset selective bargain-hunting |
MANILA (AFX-ASIA) - Share prices
were mixed in late morning trade as profit-taking in Philippine
Long Distance Telephone Co (PLDT) and Globe Telecom offset gains
in other blue chips attracting bargain-hunters, dealers said.
The market was directionless and
investors remained largely sidelined, but dealers said they see
strong support at the 1,480-point level.
At 11.05 am, the composite index was
up a marginal 0.56 points, or 0.04, at 1,486.03 on volume of 50.05
mln shares valued at 216.06 mln pesos. It has so far moved between
1,477.21 and 1,488.98.
"PLDT and Globe Telecom offset
the market's gains on selective bargain-hunting," said
Lawrence de Leon, an analyst at Accord Capital Equities.
But he believes that the market will
resume its upward trek soon due to the peso's sharp rebound
against the US dollar and further position-taking ahead of the
release of first-quarter corporate results.
Top-traded PLDT was down 15 pesos at
1,040 on volume of 106,350 shares and Globe down 20 at 860 on
18,000 shares.
Manila Electric B, available to
foreign investors, rose 1.50 to 27 and Meralco A gained 0.50 to
18.50, while parent First Philippine Holdings advanced 0.25 at
22.25.
First Philippine Holdings parent
Benpres Holdings was up 0.02 at 0.52.
Jollibee Foods was up 0.25 at 19.
At the Philippine Dealing System,
the peso averaged 55.744 to the US dollar after closing at an
11-week high of 55.800 yesterday.
Dealers said incumbent Gloria
Arroyo's improving chances of winning the May 10 presidential
polls have given the peso a strong boost.
Arroyo now leads opinion polls for
the presidential race against main rival Fernando Poe Jr.
Her lead against Poe, whose
candidacy had spooked financial markets because of his lack of
experience in public service, is seen widening further after
presidential candidate Raul Roco announced his decision to
withdraw from the campaign trail to seek medical treatment in the
US for a lower back problem.
There have been speculations that
Roco, who has consistently been in a distant third in opinion
polls, behind Arroyo and Poe, is seeking a "graceful
exit" from the presidential race due to his poor showing in
the surveys.
Roco spokesman Jaime Galvez Tan,
however, said th candidate will be back in two weeks.
Analysts said Roco's supporters are
people who want an alternative to Arroyo, but are unlikely to vote
for someone with an unimpressive educational background like Poe.
afxmanila@afxasia.com
|
| Philippine
opposition candidate Roco says to return and contest election |
MANILA (AFX-ASIA) - Ailing candidate
Raul Roco vowed today to return in two weeks to challenge Gloria
Arroyo in the May 10 presidential election a day after abruptly
withdrawing from the campaign trail to seek treatment in the US.
"He should be back in two
weeks," Roco campaign manager Jaime Galvez-Tan told local
radio.
Roco, who came in third behind
Arroyo and main opposition candidate, Fernando Poe Jr, in national
opinion surveys four weeks before the balloting, announced
yesterday he was flying to Houston later in the day for treatment
of a lower back ailment.
He did not say when he will return,
sparking speculation he may stand down at the request of estranged
ally Arroyo, who has a 3 percentage points lead over movie star
Poe.
However, Roco, who quit the Arroyo
cabinet two years ago, has rejected the speculation. Galvez-Tan
said today Roco will pursue his candidacy.
"Our funds are running low, but
we're surviving," Roco said in a television interview late
yesterday, shortly before he left for the US.
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| STOCK
ALERT - Philippines' PLDT, Globe Telecom lower on profit-taking |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) and Globe Telecom were lower in light
mid-morning trade as investors locked in more gains, capping the
market's rise on selective bargain-hunting, dealers said.
Top-traded PLDT was down 15 pesos at
1,040 on volume of 87,130 shares and Globe Telecom down 20 at 860
on 9,300 shares.
PLDT's American Depositary Receipts
fell 0.28 usd to 18.83 in New York overnight, but still ahead of
its share price on the local bourse.
"PLDT and Globe Telecom offset
the market's gains on selective bargain-hunting," said
Lawrence de Leon, an analyst at Accord Capital Equities.
PLDT's share price sustained its
advance in recent sessions up to the highest level in more than
four years on investor expectations of more impressive earnings in
the telecom sector in the first quarter, largely from the wireless
business.
(1 usd = 55.75 pesos)
afxmanila@afxasia.com
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| HSBC
to set up Philippines call center for global ops |
MANILA (AFX-ASIA) - British bank
HSBC Ltd said it will set up a backroom unit in the Philippines to
serve as a call center for its global operations.
HSBC, which already has group
service centers in India, Malaysia and China, will initially hire
500 people for the Philippine operation, which will be set up at
the Northgate Cyberzone, in Alabang, south of Manila.
The project will involve the
investment of "several millions" US dollars, bank
officials said.
"Our decision to open a group
service center in Manila reflects our long standing commitment to
the country and our confidence in its prospects," HSBC
Philippines chief executive officer Warner Manning said.
"High quality
telecommunications infrastructure and excellent English-language
skills are the building blocks of this business, and both are
freely available in the Philippines," he added.
Central bank governor Rafael
Buenaventura welcomed HSBC's move, expressing hope that other
foreign financial institutions will follow suit.
"We were somewhat delayed by
the political uncertainties, but, as we get comfortable, we should
see unlimited potential in financial services," said
Buenaventura.
afxmanila@afxasia.com
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| Philippines'
Maynilad creditors oppose government takeover - report |
MANILA (AFX-ASIA) - Maynilad Water
Services Inc creditors have rejected the terms of its compromise
agreement with regulator Metropolitan Waterworks and Sewerage
System (MWSS), which is set to take over control of the water
utility, BusinessWorld newspaper reported, citing a document
submitted to court.
In particular, Maynilad creditors
are opposed to allowing a partial draw on the performance bond the
utility's shareholders put up on winning the 25-year concession to
supply drinking water to half of metropolitan Manila about seven
years ago, the report said.
The bank creditors have guaranteed
the payment of Maynilad's performance bond.
Benpres Holdings Corp, which
currently owns 60 pct of Maynilad, and the government, through the
MWSS, have agreed to allow the MWSS to draw 50 mln usd of the
120-mln usd bond as part of the re-organization plan of Maynilad.
The report said, according to a
lawyer for the bank creditors, allowing MWSS to draw on the bond
violates the status quo order of the Supreme Court.
Under the proposed rehabilitation
plan for Maynilad, the MWSS will take over a controlling 39 pct
stake in the utility, while the Lopez family's Benpres will write
off its 60 pct equity in Maynilad, after running it for seven
years.
Benpres' French partner in Maynilad
will reduce its equity in the utility to 19 pct from 40, while the
utility's creditors will convert loans outstanding into 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.
afxmanila@afxasia.com
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| Manila
shares outlook - Mixed to lower on caution ahead of May polls |
MANILA (AFX-ASIA) - Share prices are
likely to open mixed to lower on caution ahead of the May 10
presidential elections, with the market remaining in its technical
correction phase, dealers said.
Wall Street's losses overnight may
also undermine sentiment, but any downside should be limited as
investors accumulate select stocks expecting positive first
quarter earnings especially in the telecom sector, they said.
The peso's sharp rebound to an
11-week high against the US dollar yesterday, partly attributed to
the improving chances of incumbent Gloria Arroyo, the financial
markets' favorite, to win in the May 10 presidential election,
boosted hopes that the market will resume is upward trek soon.
Yesterday, the composite index
closed down 25.11 points or 1.66 pct at 1, 485.47.
"Investors are likely to remain
sidelined as the May 10 presidential election draws near. However,
we expect continued accumulation on select stocks during the
correction phase in anticipation of good first quarter
results," BPI Securities said in its daily report.
It sees the market's support still
at 1,450 and resistance at 1,500.
At the Philippine Dealing System
yesterday, the peso closed at 55.800, after nearly two months of
trading at the 56 levels, and plunging to a record 56.45 in late
March.
News that Arroyo now leads opinion
polls for the presidential race against main rival Fernando Poe Jr
was taken positively by currency market players, dealers said.
Her lead against Poe, whose
candidacy had spooked financial markets because of his lack of
experience in public service, is seen to widen further after
presidential candidate Raul Roco announced his decision to stop
campaigning and seek medical treatment in the US for a chronic
lower back pain.
Analysts said Roco's supporters are
those who want an alternative to Arroyo, but are unlikely to vote
for an inexperienced high-school dropout like Poe.
afxmanila@afxasia.com
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