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Tuesday, February 03, 2004
Philippines' Republic Cement to list extra 1.128 bln common shares Feb 4 - PSE
Philippines' Metrobank 2003 net profit 3.016 bln pesos
Manila shares close weaker on political concerns; index at 5-wk low
Philippine SPI shareholders receive acquisition offer from TH Lee
Philippines' Primex Corp to list additional 100 mln common shares Feb 4 - PSE
Philippines Security Bank 2003 unaudited net profit up 24 pct at 631 mln pesos
Philippines' PNOC unit, Indonesia's PT Garda in coal mining joint venture
Philippines United Paragon Mining sets capital restructuring plan
Philippines' Banco de Oro 2003 net profit up 43 pct
STOCK ALERT - Singapore's health-linked stocks up on rising bird flu fears
STOCK ALERT - Singapore-listed Fastech sharply up after FY net loss narrows
Philippine govt 2003 budget deficit 199.9 bln pesos, below ceiling - UPDATE
Manila shares outlook - Mixed to lower on pre-election concerns
Chinatrust Philippines Commercial Bank 2003 net profit up 22 pct - UPDATE
Shell's Philippine unit, small players raise fuel prices
Philippine govt 2003 budget deficit 199.9 bln pesos, below 202 bln ceiling
SGS says international centre to deal with Philippine dispute
BIRD FLU - Philippines' Jollibee says chicken sales stable despite virus scare
Philippines end-Sept FCDU loans 4.84 bln usd, down 2 pct from end-June
Philippines' Jollibee Foods to list additional 17,741 shares Feb 3 - PSE
Philippines' Meralco 2003 power system losses 10.85 pct, same as 2002

Monday, February 02, 2004
Manila shares close 4.06 pct lower on pre-election political worries
Manila shares sharply weaker on blue-chip selldown led by PLDT
Philippine appeals court halts award of 46.66 pct VECO stake to Aboitiz
STOCK ALERT - Philippines' PLDT weaker on ADR fall
Forex - Philippine peso firmer early on technical correction
Philippines' Meralco says 11 bln pesos worth of debt to fall due this year
UnionBank of the Philippines 2003 net profit 2.15 bln pesos, up 40 pct yr/yr
Philippines' Vivant to import fuel for retail sales
Philippines' Security Bank issues Tier 2 notes on Jan 29-30
Singapore Telecom end-Dec regional mobile subscribers 44 mln, up 37 pct yr/yr
STOCK ALERT-Bank of the Philippine Islands firmer after improved 2003 results
Philippines' City & Land Developers 2003 sales up 12.58 pct yr-on-yr
Philippines' Swift Foods may export dressed chicken to Japan, SE Asia - report
Philippines' Smart acquires 80 pct of Wolfpac
Philippine central bank to punish violators of forex trading rules
Philippine govt plans 500-mln usd global bond issue this month - source

 



Philippines' Republic Cement to list extra 1.128 bln common shares Feb 4 - PSE


     MANILA (AFX-ASIA) - Republic Cement Corp will list an additional 1.128 bln common shares tomorrow representing underlying common shares covered by a loan-to-equity conversion agreement with Lafarge Holdings (Philippines) Inc.
     According to a Philippine Stock Exchange circular for brokers, the exchange approved on Aug 9, 2000 the listing of up to 2.62 bln Republic Cement common shares with a par value of 1.00 peso each.
     The shares include those to be issued to Lafarge, formerly known as Blue Circle Philippines Inc, one of the holders of convertible notes issued by Republic Cement.
     Republic Cement closed today untraded after closing at 0.47 peso previously.
     (1 usd = 56.15 pesos)
     edelacruz@afxasia.com

 

Philippines' Metrobank 2003 net profit 3.016 bln pesos


     MANILA (AFX-ASIA) - Metropolitan Bank & Trust Co said its 2003 net profit came in at 3.016 bln pesos.
     It gave no comparative figures in the statement it has submitted to the stock exchange. However, the country's largest bank had reported net profit of 2.508 bln pesos for 2002.
     Interest income in 2003 stood at 22.88 bln pesos against interest expense of 13.79 bln.
     Provisions for probable losses amounted to 2.6 bln pesos.
     Other income came amounted to 11.1 bln pesos, while other expenses reached 14.57 bln.
     Metrobank is aiming to post net profit of 4.0 bln pesos this year.
     (1 usd = 56.15 pesos)
     edelacruz@afxasia.com

 

Manila shares close weaker on political concerns; index at 5-wk low


     MANILA (AFX-ASIA) - Share prices closed weaker for a fifth straight session, pulling the key index to its lowest finish in five weeks amid pre-election uncertainties, dealers said.
     Investors continued to unload their holdings and may have taken refuge in the US dollar, they said.
     However, bargain-hunting interest in select blue chips led by Philippine Long Distance Telephone Co (PLDT) limited the market's downside.
     The composite index closed down 9.38 points, or 0.65 pct, at 1,437.67 on volume of 226.6 mln shares worth 604.4 mln pesos. It traded between 1,430.78 and 1,450.78.
     It is the index's lowest finish since Dec 23, when it closed at 1,427.40.
     In the broader market, losers led gainers 40 to 13, while 32 stocks were unchanged.
     At the Philippine Dealing System, the peso traded near its record low of 56.22 to the US dollar, weighed down by a series of negative news, including Moody's recent sovereign ratings downgrade and political noises in the run-up to May elections.
     It averaged 56.155 to the dollar at noon after trading at 56.200, the level at which dealers saw the central bank's support for the local unit.
     The peso ended at a new record closing low of 56.045 yesterday.
     "We saw follow-through selling as investors may have shifted from equities to other instruments (such as US dollar)," Accord Capital Equities analyst Lawrence de Leon said.
     However he added that the market may stage a technical recovery tomorrow or in a couple of days after having dropped about 9 pct in the past five sessions.
     "I think the market will stabilize above 1,400. Foreign fund managers are still on the sell side, but the drop (in prices) was not as bad as yesterday, " Regina Capital Development Corp analyst Gomer Tan said.
     Top-traded PLDT gained 10.00 pesos to 825 on volume of 212,980 shares after yesterday's sharp fall. The company is scheduled to announce its 2003 results later this month.
     Benpres Holdings Corp was down 0.03 peso at 0.61 on 110.56 mln shares as cross sales boosted turnover.
     Mall operator SM Prime Holdings was down 0.10 at 5.90 on 14.36 mln shares.
     Conglomerate Ayala Corp was up 0.10 at 5.60, ahead of the release of its 2003 results, possibly this week, while property unit Ayala Land rose 0.10 to 6.10 on 2.26 mln shares.
     Ayala Land will announce its 2003 results this afternoon.
     San Miguel B, available to foreign investors, was down 1.00 at 69, while San Miguel A was unchanged at 56.50.
     Bank of the Philippine Islands closed unchanged at 48.50 after losses early in the session.
     Manila Electric B, open to foreign investors, was unchanged at 31.50 after earlier losses, while Meralco A fell 0.25 to 19.
     The all-shares index was up 5.27 points at 927.67.
     The commercial-industrial index fell 18.06 to 2,176.50.
     Property fell 0.97 to 552.43, while mining rose 12.63 to 1,537.20.
     Oil was unchanged at 1.30.
     Banking and financial services shed 1.06 to 452.88.
     edelacruz@afxasia.com

 

Philippine SPI shareholders receive acquisition offer from TH Lee


     MANILA (AFX-ASIA) - SPI Technologies Inc and its major shareholders have signed a "non-binding and conditional" letter of intent with a New York private equity firm, TH Lee Putnam Ventures (TH Lee), for the possible acquisition of the Manila-based IT services provider at an indicative offer of 87 mln usd.
     In a disclosure to the stock exchange, SPI said the offer price is about 15.60 pesos per share, assuming SPI's fully diluted capital of 312.21 mln shares and an exchange rate of 56.00 pesos to the US dollar.
     At 12.02 pm, SPI was trading at 12.50 pesos, up 0.25.
     "The price is net of selling expenses ordinarily for the account of selling shareholders. However, the stock transaction tax and transaction costs relating to the transfer of shares through the facilities of the exchange shall be for the account of the selling shareholders," SPI chief financial officer Francisco Suarez Jr said.
     A Soriano Corp (Anscor), which has a 12 pct equity in SPI, said it will be "potentially" selling its interest together with other shareholders.
     Anscor said a potential sale, involving a significant amount of money, will constitute "a material fact or event that would reasonably be expected to affect investors' decision in relation to Anscor securities." It did not elaborate.
     The preliminary agreement between SPI and TH Lee is still subject to the fulfillment of various conditions.
     A tender offer will be made in March through a newly-incorporate company that TH Lee will set up in the Philippines.
     Earlier, PPM Ventures Ltd, of Britain's Prudential Plc, was supposed to launch a tender offer for all the issued and to-be issued share capital of SPI at a previously indicated price of about 84 mln usd.
     However, the exclusivity period given to PPM has lapsed without any agreement being reached.
     "The company has agreed to give TH Lee an exclusivity period to allow the conduct of due diligence and other activities in relation to the proposed transaction and to reimburse TH Lee's cost under certain circumstances," Suarez said.
     TH Lee is a technology-focused private equity firm specializing in later-stage venture transactions and middle market buy-outs. It has its headquarters in New York with offices in London and Boston.
     It is affiliated with buyout firm Thomas H Lee Partners and Putnam Investment, a global management firm with over 1 bln usd in capital commitments.
     (1 usd = 56.155 pesos)
     cecille.yap@afxasia.com

 

Philippines' Primex Corp to list additional 100 mln common shares Feb 4 - PSE


     MANILA (AFX-ASIA) - Real-estate developer Primex Corp will list an additional 100 mln common shares tomorrow to cover converted preferred shares, the Philippine Stock Exchange said in circular.
     At 11.18 am, Primex was untraded after closing at 2.70 pesos previously.
     (1 usd = 56.15 pesos)
     edelacruz@afxasia.com

 

Philippines Security Bank 2003 unaudited net profit up 24 pct at 631 mln pesos


     MANILA (AFX-ASIA) - Security Bank Corp reported an unaudited net profit of 631 mln pesos for 2003, up 24 pct from 508 mln the year before, on the back higher interest margins and lower operating costs.
     The bank said fourth quarter net profit stood at 81.9 mln pesos, 11 pct higher than the previous quarter. No year-ago level was provided.
     "The steady improvement in the bank's earnings performance is attributed to strong revenue growth originating mainly from net interest margins and service fees and commissions, as well as continuing reductions in operating expenses," Security Bank said in a report to the stock exchange.
     Security Bank increased its loan-loss provisions by 95 mln pesos to 923 mln at end-2003.
     The bank earlier reported a non-performing loan (NPL) ratio of 10.85 pct as of Dec 16, 2003, totaling 4.497 bln pesos.
     Its asset base and capital funds stood at 73.5 bln pesos and 10 bln, respectively.
     (1 usd = 56.154 pesos)
     cecille.yap@afxasia.com

 

Philippines' PNOC unit, Indonesia's PT Garda in coal mining joint venture


     MANILA (AFX-ASIA) - PNOC Exploration Corp said it is "looking at signing" a memorandum of understanding with Indonesian firm PT Garda Tujuh Buana Coal Mining Corp for a possible sharing of technical expertise in coal mining and marketing.
     PNOC-EC, a unit of state-owned Philippine National Oil Co, said the sharing of expertise will require prior due diligence by both companies.
     It gave no other details in a statement to the stock exchange.
     edelacruz@afxasia.com

 

Philippines United Paragon Mining sets capital restructuring plan


     MANILA (AFX-ASIA) - United Paragon Mining Corp said it has come up with a capital restructuring plan to address its negative stockholders equity and avoid delisting from the stock exchange.
     The company said it intends to reduce its subscribed and paid-up capital stock by 50 pct, increase its authorized capital stock by way of conversion of existing liabilities to affiliates into common shares and issue new common shares.
     The reduction in subscribed and paid-up capital stock will reduce its deficit by 460 mln pesos. As of end-October last year, the deficit stood at around 1.4 bln pesos.
     (1 usd = 56.15 pesos)
     edelacruz@afxasia.com

 

Philippines' Banco de Oro 2003 net profit up 43 pct


     MANILA (AFX-ASIA) - Banco de Oro Universal Bank reported an unaudited net profit of 1.517 bln pesos in 2003, 43 pct better than the 1.057-bln net profit it registered the year before.
     The Sy-controlled bank said an increase in its net interest income to 3.5 bln pesos, up 55 pct year-on-year, largely accounted for the profit growth.
     Other income however dropped 3 pct to 2.38 bln pesos in 2003 since its 2002 profits included a one-time gain from the sale of secondary shares during Banco de Oro's initial public offering in May 2002. Without the one-time gain, other income increased 15 pct in 2003.
     The bank said its operating expenses totaled 3.49 bln usd, up 22 pct compared to 2002 levels.
     "The growth in operating expenses is primarily due to expenses related to the integration and operation of the additional branches acquired from First Ebank, and the acquisition of Banco Santander Philippines Inc last July 16, 2003," Banco de Oro told the stock exchange in a disclosure.
     Banco de Oro last year acquired 100 pct of Banco Santander for 2.56 bln pesos.
     The bank said its non-performing loans stood at 5.9 bln pesos, up 990 mln from end-2002 due to a mandated reclassification of non-performing fixed-income investments of the same amount as NPLs. However, without the reclassification, NPLs declined 2 pct to 4.86 bln.
     It set aside 1.25 bln pesos in loan loss provisions to bring its coverage ratio to 55 pct from 41 pct in 2002.
     "The resulting NPL ratio of 7.9 pct (inclusive of the non-performing investments), however, remains one of the lowest in the industry," Banco de Oro said.
     At end-December, total resources of the bank increased 25.4 bln pesos or 21 pct to 146.4 bln. Its deposit base grew 10 pct to 101.6 bln usd.
     It said bills payable increased by 13 bln to 24.6 bln due to a 150-mln usd senior notes the bank issued in October 2003.
     Net loans improved 9 pct or 4.9 bln to 57.3 bln usd, while capital increased to 14.89 bln from 2002's 13.62 bln due to retained earnings.
     (1 usd = 56.131 pesos)
     cecille.yap@afxasia.com

 

STOCK ALERT - Singapore's health-linked stocks up on rising bird flu fears


     SINGAPORE (AFX-ASIA) - Health-related stocks were higher in early morning trade due to escalating concerns about the bird flu outbreak in the region and the rising human death toll from the disease, dealers said.
     Laboratory gown and surgical masks supplier Medtecs International Corp was up 0.010 sgd or 4.17 pct at 0.250 with 1.23 mln shares traded.
     Traditional medicine manufacturer Eu Yan Sang was up 0.005 sgd or 1.79 pct at 0.285 with 101,000 shares traded.
     (1 usd = 1.69 sgd)
     daryl.loo@afxasia.com

 

STOCK ALERT - Singapore-listed Fastech sharply up after FY net loss narrows


     SINGAPORE (AFX-ASIA) - Phillipine-based semiconductor assembly and test services provider Fastech Synergy Ltd was sharply higher after it announced last week that its year to December net loss narrowed to 4.52 mln usd from 6. 39 mln a year earlier due to rising sales, dealers said.
     Fastech was up 0.30 sgd or 14.29 pct at 0.240 with 1.65 mln shares traded.
     (1 usd = 1.69 sgd)
     daryl.loo@afxasia.com

 

Philippine govt 2003 budget deficit 199.9 bln pesos, below ceiling - UPDATE


     (Updating with revenue, expenditure figures, finance secretary's comments)
     MANILA (AFX-ASIA) - The government's budget deficit in 2003 stood at 199. 9 bln pesos, below the 202 bln ceiling, the Department of Finance said.
     Improved revenue collections and disciplined spending enabled the government to keep its deficit below the ceiling for the first time in many years, finance officials said.
     The Bureau of Internal Revenue (BIR) collected 425.4 bln pesos in 2003, 7. 8 pct above 2002 and slightly above last year's target of 424 bln. The Bureau of Customs (BoC) raised its full-year collections by 10.2 pct to 106.1 bln pesos, 6 pct ahead of target. Government spending grew 6.2 pct to 826.5 bln pesos, 5.1 pct over the program ceiling of 786.1 bln.
     The government aims to contain this year's deficit at 197.8 bln pesos, or 4.2 pct of GDP.
     The government's Development Budget Coordination Committee (DBCC) last week raised this year's revenue target to 674.4 bln pesos from 671.2 bln on expectations of increased collections from the BoC and the Bureau of Treasury (BTr).
     The DBCC, which sets the government's revenue targets, expects higher customs and BTr collections to more than offset the reduction to 476.3 bln pesos from 488.6 bln of the BIR's collection goal.
     This year's fiscal targets are anchored on a GDP growth target of 4.9-5.8 pct.
     "In outperforming our fiscal target in 2003, we have shown that we can deliver results by focusing on fiscal discipline and pursuing good governance measures," Finance Secretary Juanita Amatong said. "In 2004, we will remain focused on meeting our fiscal program, if not improve on it, as we find the need to achieve fiscal consolidation in the medium term," she added.
     The government aims for a balanced budget by 2009.
     (1 usd = 56.045 pesos)
     edelacruz@afxasia.com

 

Manila shares outlook - Mixed to lower on pre-election concerns


     MANILA (AFX-ASIA) - Share prices are expected to open mixed to lower as pre-election political uncertainties continue to weigh on sentiment, dealers said.
     However, they said some bargain-hunters may re-enter the market, after it wiped out its gains made since the start of the year, on improved corporate earnings expectations and an economic rebound particularly after the May elections.
     Yesterday, the composite index closed down 61.25 points, or 4.06 pct, at 1,447.05, its weakest finish so far this year.
     BPI Securities, in its daily note, said it is uncertain if the market can hold at the next support (of 1,435) given that yesterday's decline was driven primarily by liquidity flow.
     "If the level of selling tapers off (today), we stand a good chance that this immediate support can hold. If not, we are looking at next support of 1, 387," it said.
     Analysts see investor confidence in the Philippines being shaken by negative news on the political and economic fronts.
     Opposition presidential standard bearer Fernando Poe Jr still leads the race in the latest surveys, although President Gloria Arroyo has improved her score.
     Investors are unimpressed with movie actor Poe, a high school dropout, because of his lack of experience in government service.
     They also worry about a possible rise in interest rates amid a volatile peso, and a further downgrade in the country's credit ratings should there be more unpleasant political developments ahead of the polls.
     (1 usd = 56.045 pesos)
     edelacruz@afxasia.com

 

Chinatrust Philippines Commercial Bank 2003 net profit up 22 pct - UPDATE


     (Updating with breakdown of results)
     MANILA (AFX-ASIA) - Chinatrust (Philippines) Commercial Bank Corp said its net profit rose 22 pct to 503 mln pesos in 2003 from the previous year's 410.9 mln, thanks to interest earnings and treasury gains.
     A tight lid on operating expenses also helped, it said.
     The bank said in a statement it kept its interest revenues healthy through aggressive customer acquisition efforts, aimed specifically at the Taiwanese, middle market, Filipino-Chinese and consumer market segments in the country.
     Non-interest revenues, meanwhile, were boosted by robust fee-based income, healthy trading gains, and recoveries from non-performing loans and foreclosed assets, it said.
     Return on equity stood at 14.10 pct and return on assets at 2.79 pct.
     The bank had a capital adequacy ratio of 33 pct as of end-2003, almost thrice the minimum requirement set by the central bank.
     Total deposits at end-2003 reached 12.8 bln pesos, up 19 pct from the previous year. (1 usd = 56.045 pesos)
     edelacruz@afxasia.com

 

Shell's Philippine unit, small players raise fuel prices


     MANILA (AFX-ASIA) - Pilipinas Shell Petroleum Corp said it is raising its fuel prices effective today by 0.30-0.60 peso per liter to recover additional costs arising from higher import prices of crude.
     Listed Petron Corp and Caltex Philippines Inc have yet to announce similar price adjustments, but are widely expected to follow suit.
     Shell external affairs general manager Roberto Kanapi said today's price increases may be followed by further hikes in the coming days.
     Shell has raised the price of gasoline by 0.60 peso per liter and kerosene and diesel by 0.30 peso.
     It will also increase the price of its liquefied petroleum gas by 0.75 peso per kilogram effective tomorrow.
     Small industry players Flying V and Eastern Petroleum Corp also jacked up their prices over the weekend.
     "We are implementing a partial oil price hike while we monitor developments in the coming weeks. Should prices move down in the coming weeks, we could consider retaining our prices for a longer period in order to cover for our under-recoveries in the past," Kanapi said.
     (1 usd = 56.045 pesos)
     edelacruz@afxasia.com

 

Philippine govt 2003 budget deficit 199.9 bln pesos, below 202 bln ceiling


     MANILA (AFX-ASIA) - The government's budget deficit in 2003 stood at 199. 9 bln pesos, below the 202 bln ceiling, the Department of Finance said.
     Improved revenue collections and disciplined spending enabled the government to keep its deficit below the ceiling for the first time in many years, finance officials said.
     The government aims to contain this year's deficit at 197.8 bln pesos, or 4.2 pct of GDP.
     The government's Development Budget Coordination Committee (DBCC) last week raised this year's revenue target to 674.4 bln pesos from 671.2 bln on expectations of increased collections from the Bureau of Customs and the Bureau of Treasury (BTr).
     The DBCC, which sets the government's revenue targets, expects higher customs and BTr collections to more than offset the reduction to 476.3 bln pesos from 488.6 bln of the Bureau of Internal Revenue's collection goal.
     This year's fiscal targets are anchored on a GDP growth target of 4.9-5.8 pct.
     (1 usd = 56.045 pesos)
     edelacruz@afxasia.com

 

SGS says international centre to deal with Philippine dispute


     ZURICH (AFX) - The International Centre for Settlement of Investment Disputes (ICSID) will deal with the dispute between SGS SA and the Philippine government, SGS said.
     SGS said the Philippine government owes the company 202.4 mln sfr, plus accrued interest.
     The Philippines is "required to observe the obligation to pay sums properly due and owing", and the dispute falls under ICSID's jurisdictional competence, a Philippine arbitration tribunal ruled.
     The exact amount to be reimbursed by the government must be negotiated by the parties, or adjudicated by local courts, the tribunal said.
     SGS said it is ready to pursue the government in Philippine courts, and reserves the right to revert to the ICSID arbitration tribunal, should a quick solution not be found.
     zurich@afxnews.com

 

Philippines to court martial 3 officers over military plot - army official


     MANILA (AFX-ASIA) - Three military officers linked to a failed plot to undermine Philippine President Gloria Arroyo's government are to face court martial, while two others have turned state witness, the army said today.
     Captains Peter Navarro, Philip Esmeralda and Rembert Baylosis are to be tried for violating articles of war after they appeared on television inciting rebellion against the government and accusing Arroyo of using the military to spy on her rivals for the May presidential vote.
     Two other captains implicated in the "destabilization plot" decided to turn witness against their colleagues, the army said in a statement.
     The military earlier said 10 other junior officers had given statements and were helping in investigations into Navarro's group.
     Last year, some 300 officers and men took over a portion of the Makati financial district in a failed mutiny against Arroyo, who described the mutiny as part of a bigger plot to assassinate her and install a junta.
     Officials said last week's incident could part of a plot to abort the May 10 polls and allow a junta to fill the power vacuum.
     Rumblings within the armed forces and jitters ahead of the vote caused the peso to plung to historic lows last week and the stock market to slide sharply.

 

BIRD FLU - Philippines' Jollibee says chicken sales stable despite virus scare


     MANILA (AFX-ASIA) - Jollibee Foods Corp said its chicken sales have remained fairly stable despite the bird flu scare, although the country's largest fast-food chain admits customers have started to show concern over whether locally-raised chickens are still free of the disease.
     Jollibee sells roughly 100,000 tons of chicken daily, with its Chicken Joy being one of its three core products.
     "This month is turning out to be a good month for us in Jollibee... We have quite stable chicken sales," Jollibee vice president for marketing Inez Reyes told a press conference held along with key officials of the departments of agriculture, health and trade and industry.
     Still, the fast-food chain's more than 400 stores nationwide have been receiving consumer inquiries about the virus.
     "We at Jollibee appreciate the opportunity to be able to help the government educate the public about the important issue of the bird flu virus. Being a local leader in the local food industry, we feel it is our responsibility to gather experts from the different agencies so they can address the public's concerns," Reyes added.
     The company's vice president for commissary, Belen Rillo, said January chicken sales have declined 10-15 pct from December, but explained that the slowdown is traditional given strong sales during the Christmas season.
     "We're experiencing normal volume for January, which is traditionally lower than December," Rillo said.
     Company officials said it sources all of its chicken requrements from local producers -- among them San Miguel Corp, Fosters and Swifts -- which government officials attest have been so far free from the avian flu.
     The company's two stores in Vietnam have temporarily stopped selling chicken in compliance with a government order even though the two stores import their chicken from the US.
     The impact on the company's bottom line has yet to be known, company officials said.
     "I am proud to announce that our local poultry sector is free from avian flu and we intend to do everything to keep it that way," Agriculture Secretary Luis Lorenzo said at the press conference.
     Some Asian countries -- such as Japan, Brunei and Vietnam -- are looking at the possibility of importing chicken from the Philippines, Lorenzo added.
     The country has been self-sufficient in chicken, with imports accounting for only 1 pct of supply. Last year, local producers harvested 1.188 bln kilos, while importers -- buying mostly from the US -- brought in only 14 mln kilos.
     "The 74-bln peso poultry industry is a source of livelihood for many Filipino farmers in the country," Lorenzo said of the industry, whose output represents roughly 14 pct of the agriculture sector.
     Government officials said chicken prices have stabilized after rising in December due to supply shortage. Dressed chicken is being sold at an average price of 110 peso per kilo as of end-January from 112.92 on Jan 12. Farm gate prices are said to have gone down to as low as 45 pesos.
     Trade and Industry Secretary Cesar Purisima said there should still be room for market prices to go down. While pricing could be "a matter of inventory stock issue", he said the government will continue to monitor prices.
     (1 usd = 56.045 pesos)
     cecille.yap@afxasia.com

 

Philippines end-Sept FCDU loans 4.84 bln usd, down 2 pct from end-June


     MANILA (AFX-ASIA) - Foreign currency-denominated loans extended by Philippine commercial and thrift banks dropped about 2 pct to 4.840 bln usd as of end-September from 4.928 bln as of end-June, the central bank said.
     The central bank said in a statement the drop in loans granted by Foreign Currency Deposit Units (FCDU) of banks was due to net repayments of 213 mln usd of these loans.
     Banks' FCDU deposit liabilities, meanwhile, rose by 23 mln usd or 0.2 pct to 13.26 bln usd as of end-September from end-June.
     About 96 pct of these deposits were placed by residents.
     The overall FCDU loans-to-deposits ratio was essentially unchanged at the previous quarter's level of 37 pct, the central bank said.
     edelacruz@afxasia.com

 

Philippines' Jollibee Foods to list additional 17,741 shares Feb 3 - PSE


     MANILA (AFX-ASIA) - Jollibee Foods Corp will list an additional 17,741 common shares tomorrow (Feb 3) to cover those availed of under its Tandem Stock Purchase and Option Plan, the Philippine Stock Exchange said.
     Jollibee closed today down 0.75 peso at 19.25.
     (1 usd = 55.90 pesos)
     edelacruz@afxasia.com

 

Philippines' Meralco 2003 power system losses 10.85 pct, same as 2002


     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) said it maintained its system loss at 10.85 pct of total power delivered in 2003, the same level recorded in the previous year.
     Meralco said eliminating or limiting these losses will require additional investments in new sub-transmission and distribution facilities.
     Its first vice president Ricardo Buencamino said the company's system losses include "technical" losses or those that are lost in the process of delivering power, and non-technical losses or those lost due to pilferage.
     The company, which supplies electricity in metropolitan Manila and nearby provinces, is allowed by law to pass on a maximum of 9.5 pct system loss to its customers. Any loss in excess of the 9.5 pct level is shouldered by the power distributor.
     "We are continuously reassessing how we will tackle our system loss. Instead of just taking a purely technical approach, we have also started exploring more creative means to find a permanent solution to the problem," Buencamino said.
     "Our information campaign today stresses that pilferage is not only morally wrong, but also, that illegal connections put your family at risk because of substandard facilities," he added.
     To improve Meralco's efficiency in delivering power and at the same time reduce the system loss, company vice president and head of supply Jobert Almazora said Meralco will "need to continuously invest in new facilities."
     Meralco officials said the company may have slightly missed its 1.0-bln peso net profit target last year due to some provisions.
     In 2002, Meralco registered a full-year net loss of 2.01 bln pesos.
     (1 usd = 55.90 pesos)
     afxmanila@afxasia.com

 

Philippine Treasury bill rates rise across the board - UPDATE


     (Updating with national treasurer's comments)
     MANILA (AFX-ASIA) - Treasury bill rates rose across the board at today's auction, with the government awarding in full its 91-day bill and partially its 182-day and 364-day bills, the Bureau of Treasury said.
     National Treasurer Sergio Edeza blamed political concerns for the market's high bids, which may persist.
     The 91-day rate, which banks use as benchmark to price loans, averaged 6. 216 pct, compared with the previous auction's 6.160 pct. The government awarded all 3.000 bln pesos worth of 92-day bills on offer against tenders totaling 6.005 bln.
     The average rate for the 182-day bill rose to 7.546 pct from 7.331 pct previously on a partial award worth 3.360 bln pesos against an offer of 3.500 bln. Tenders totaled 5.470 bln.
     The 364-day rate averaged 8.384 pct, versus 8.180 pct previously, on a partial award of 3.275 bln pesos against an offer of 4.500 bln. Tenders totaled 4.190 bln pesos.
     "The market is nervous because of a lot of news on the political side," Edeza told reporters after the auction.
     "We have to let the rates move up so the pressure will not remain."
     Pre-election political and security jitters, combined with the recent downgrade of the country's sovereign ratings by Moody's Investors Service, pulled down the peso last week to its lowest level ever of 56.22 to the US dollar.
     Edeza would not say that today's rise in T-bill rates is the start of a trend, although he said the market's apprehension will likely continue.
     "It may trigger an uptick in interest rates from time to time," he said.
     (1 usd = 55.90 pesos)
     edelacruz@afxasia.com

 

Philippines' Cityland Development 2003 sales 388.04 mln pesos, up 16.53 pct


     MANILA (AFX-ASIA) - Property developer Cityland Development Corp said its sales rose 16.53 pct to an unaudited 388.04 mln pesos in 2003 from the previous year's 332.99 mln.
     Fourth-quarter sales jumped 142.86 pct to 141.02 mln pesos from 58.07 mln a year ago, while December sales more than doubled to 34.89 mln from 16.87 mln in the year-earlier month.
     (1 usd = 55.90 pesos)
     edelacruz@afxasia.com

 

 

Manila shares close 4.06 pct lower on pre-election political worries


     MANILA (AFX-ASIA) - Share prices closed sharply lower, dragging the key index to its lowest level so far this year amid political worries ahead of the May elections, dealers said.
     Selling in market heavyweights led by Philippine Long Distance Telephone (PLDT) accelerated after the market failed to find support at the 1,500- and 1,480-point levels, they said.
     The composite index closed down 61.25 points, or 4.06 pct, at 1,447.05 on volume of 241.2 mln shares worth 817.5 mln pesos. It fell to as low as 1,442. 21, after trading at a high of 1,506.26.
     It is the index's weakest finish since Dec 30, the last trading day of 2003, when it closed at 1,442.37.
     In the broader market, decliners led advancers 51 to 8, with 26 stocks unchanged.
     Dealers said the market's sustained correction will give bargain-hunters the opportunity to re-enter the market, especially if the market is able to find support at the 1,420-1,450 points range.
     But political worries are likely to linger as the campaign season for the May polls gets underway on Feb 10.
     Top-traded PLDT was down 50 pesos, or 5.78 pct, at 815 on volume of 298, 520 shares. Its ADRs fell 0.82 usd to 15.09 on Friday.
     (1 usd = 55.90 pesos)
     edelacruz@afxasia.com

 

Manila shares sharply weaker on blue-chip selldown led by PLDT


     MANILA (AFX-ASIA) - Share prices were sharply weaker in late trade as selling in blue chips, led by Philippine Long Distance Telephone Co (PLDT), pulled the key index below support levels amid pre-election political worries, dealers said.
     At 11.24 am, the composite index was down 51.90 points, or 3.44 pct, at 1, 456.40 on volume of 149.3 mln shares worth 519.49 mln pesos. It has so far traded between 1,453.53 and 1,506.26 points.
     In the broader market, losers outnumbered gainers 45 to 8, while 21 stocks were unchanged.
     "PLDT was a big drag on the market on its (American Depositary Receipts') sharp decline in New York on Friday. Selling accelerated after the market failed to hold support at the 1,500 and 1,480 levels," Westlink Global Equities chairman Rommel Macapagal said.
     "People are taking profits and cautious ahead of the start of the campaign season (for the May elections) on Feb 10."
     He sees the market receiving support at the 1,420-1,450 points range.
     Top-traded PLDT was down 35.00 pesos, or 4.05 pct, at 830.00 on volume of 192,400 shares. Its ADRs fell 0.82 usd to 15.09 on Friday.
     PLDT rival Globe Telecom was down 45.00 at 880.00, with investors having fully discounted the 50 pct year-on-year rise to 10.3 bln pesos in 2003 net profit on the back of sustained gains in the wireless business.
     Mall operator SM Prime Holdings was down 0.10 at 6.00.
     Bank of the Philippine Islands was down 1.00 at 49, giving back gains made in early trade after posting 10 pct growth to 5.7 bln pesos in its net profit for 2003.
     Manila Electric B, available to foreign investors, was down 1.50 at 32. 50, while Meralco A fell 1.00 to 19.50.
     The country's largest power distributor told the stock exchange that some 11 bln pesos of its debt will fall due this year and that failure to refinance some of these loans will result in a cash deficit of up to 24 mln usd in the first quarter.
     Meralco plans to issue 200 mln usd worth of bonds on the international market to refinance this year's maturing debts. However, the proposed exercise will have to wait until the Supreme Court issues its final ruling on the company's suspended 0.12-pesos per kilowatthour rate increase.
     Conglomerate Ayala Corp was down 0.40 at 5.70, while property arm Ayala Land was down 0.30 at 6.00 ahead of the release of its 2003 results tomorrow.
     San Miguel B, open to foreign investors, fell 1.50 to 69.50, while San Miguel A dropped 0.50 to 56.50.
     Oil refiner Petron Corp shed 0.20 to 2.80 on 4.38 mln shares.
     The all-shares index was down 11.13 points at 926.79.
     The commercial-industrial index fell 78.99 to 2,213.97.
     Property dropped 18.72 to 554.07, while mining fell 25.89 to 1,531.67.
     Oil was unchanged at 1.30.
     Banking and financial services shed 11.02 to 456.31.
     (1 usd = 55.90 pesos)
     edelacruz@afxasia.com

 

Philippine appeals court halts award of 46.66 pct VECO stake to Aboitiz


     MANILA (AFX-ASIA) - The appeals court has imposed a 60-day temporary restraining order (TRO) on a lower court decision to award Aboitiz Equity Ventures (AEV) a direct stake in Visayan Electric Co (VECO), the second-largest power distributor in the country, Aboitiz Equity said in a disclosure to the exchange.
     A Cebu regional trial court had earlier awarded Aboitiz Equity shares in VECO, giving the group a direct 46.66 pct stake in the country's second largest power distribution firm.
     The regional court also ordered the partial liquidation of Hijos de F Escano Inc, which controls VECO.
     Under the court decision, Aboitiz Equity would get 46.66 pct, or about 1. 6 mln, of Hijos' shares in VECO. It would also receive 46.66 pct of Hijos' cash and liquid assets after payment of debts and a 46.66 pct co-ownership interest in Hijos' other assets.
     Earlier, Aboitiz Equity filed a 613-mln peso suit against Vivant Corp (formerly Philstar.com) for the alleged dilution of Aboitiz's shares in Visayan Electric after the dissolution of Hijos's relationship with Vivant Corp last April.
     The Garcia family, which also owns Vivant, has a majority stake in Hijos.
     (1 usd = 55.898 pesos)
     cecille.yap@afxasia.com

 

STOCK ALERT - Philippines' PLDT weaker on ADR fall


     MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) was weaker in mid-session on a further correction following Friday's drop in its American Depositary Receipts(ADR) in New York, dealers said.
     They noted that overall market sentiment remains weak on lingering pre-election political concerns.
     PLDT was top traded so far and down 30 pesos to 835 on volume of 167,080 shares.
     Its ADRs fell 0.82 usd to 15.09 on Friday.
     Dealers, however, said the stock may bounce back in the coming sessions on expectations of robust earnings growth in 2003 and 2004.
     PLDT earlier said it would announce its 2003 full-year results towards the end of February.
     PLDT president and chief executive officer Manuel Pangilinan had expressed confidence the company hit, or even exceeded, its 10-bln peso net profit goal, after provisions, for 2003 on the back of the sustained robust performance of wireless unit Smart.
     Net profit in 2002 stood at 3.1 bln pesos.
     (1 usd = 55.89 pesos)
     edelacruz@afxasia.com

 

Forex - Philippine peso firmer early on technical correction


     MANILA (AFX-ASIA) - The peso was firmer in early trade, with the local currency staging a technical correction after last week's sharp fall, dealers said.
     They said the peso's fall to its historic low of 56.22 versus the US dollar was overdone as it was exacerbated by the lingering political noise in the run-up to the May elections and the traditional month-end dollar requirement among companies.
     As of 10.05 am, the peso averaged 55.905 after trading between 55.88 and 56.00 on volume of 20 mln usd. It closed at 55.98 on Friday.
     "The currency fell too fast, too low last week and a correction back to the 55.60-56.00 level is underway, barring any major surprises," a local bank dealer said.
     The central bank's warning that banks found to be repeatedly violating foreign exchange transactions will be stripped of their currency-trading licenses also dampened the market, dealers added.
     Corporate demand for US dollars has also eased after most companies have completed their traditional month-end requirements.
     cecille.yap@afxasia.com

 

Philippines' Meralco says 11 bln pesos worth of debt to fall due this year


     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) said some 11 bln pesos of its debt will fall due this year, and failure to refinance some of these loans would result in a cash deficit of up to 24 mln usd in the first quarter.
     "The possible deficit of 24 mln usd at the end of the first quarter is based on the assumption that the company would not be able to refinance its loans of which a total of 11 bln pesos is due to mature within 2004," the power distributor said in a statement.
     Meralco plans to issue 200 mln usd worth of bonds in the international market to help refinance this year's maturing debts. However this will have to wait until the Supreme Court issues its final ruling on the company's suspended 0.12-pesos per kilowatthour rate increase.
     The rate hike would have boosted Meralco's revenues by 1.9 bln pesos annually.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

 

UnionBank of the Philippines 2003 net profit 2.15 bln pesos, up 40 pct yr/yr


     MANILA (AFX-ASIA) - UnionBank of the Philippines said its 2003 net profit rose 40 pct year-on-year to 2.15 bln pesos, above its 1.7-bln peso goal.
     "Strong profits and effective cost management enabled the bank to beat the industry in key performance measures," the bank said in a statement.
     Its return on average equity stood at 14.44 pct, while return on average assets was at 2.92 pct.
     UnionBank said total revenues jumped 26 pct year-on-year to 4.9 bln pesos following a 13 pct increase in interest differential income and a 38 pct rise in income from trading and fee-based businesses.
     Total assets grew 5 bln pesos to 78.3 bln, 64 pct of which were liquid resources. Deposit base improved 4 bln pesos to 46 bln, increasing the share of deposits in the bank's total interest-bearing liabilities to 82 pct from 78 pct.
     The bank said it earmarked 375 mln pesos in additional loan loss reserves in 2003 to bring its non-performing loan (NPL) cover to 67 pct. Its NPL ratio stood at 13.97 pct against the industry's 15.2 pct average. Non-performing assets (NPA) as a percentage of asset base stood at 12 pct against the industry's 14 pct.
     Its capital increased 13 pct to 15.3 bln pesos from 13.5 bln a year earlier. Credit-risk adjusted capital adequacy ratio (CAR) was at 42.2 pct, while combined credit and market risk-adjusted capital adequacy ratio was at 32.8 pct. The central bank's CAR requirement stood at a minimum 10 pct.
     (1 usd = 56.00 pesos)
     cecille.yap@afxasia.com

 

Philippines' Vivant to import fuel for retail sales


     MANILA (AFX-ASIA) - Holding firm Vivant Corp said it will engage in fuel importation and supply an oil retailer as a means to enhance income.
     The company did not provide further details in its disclosure to the stock exchange, except to say that the plan has been approved by its board of directors.
     Vivant is also engaged in power distribution to partially owned unit Visayan Electric Co.
     cecille.yap@afxasia.com

 

Philippines' Security Bank issues Tier 2 notes on Jan 29-30


     MANILA (AFX-ASIA) - Security Bank Corp said it issued on Jan 29 Series A unsecured subordinated Tier 2 notes while Series B notes were issued on Jan 30.
     The 3.0-bln peso notes, which are callable at the end of five years, will mature in 2014.
     The Series A notes were issued to individuals and tax-exempt institutions and priced at 100 pct of face value with an initial yield of 12 pct.
     Series B was sold to taxable institutions and priced at 99.541 pct of face value with an initial coupon rate of 11.875 pct. This translates to a premium of 1.1617 pct over the five-year Mart 1 fixed-rate treasury notes as of Jan 23.
     Fitch Ratings has assigned a BB- rating to the notes, which will help raise Security Bank's total capital to around 13.0 bln pesos from 10.0 bln as of end-2003.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

 

Singapore Telecom end-Dec regional mobile subscribers 44 mln, up 37 pct yr/yr


     SINGAPORE (AFX-ASIA) - Singapore Telecommunications Ltd said the total of its mobile subscribers, including those of Australia's Optus and four of its regional associates, stood at 44 mln at the end of Dec 2003, up 37 pct year-on-year.
     Of the total subscriber base in the six markets, SingTel's propotionate share stood at 18.20 mln, up 39 pct year-on-year, it said.
     The consolidated subscriber base of SingTels four Asian mobile associates  Advanced Info Service of Thailand, Bharti Group of India, Globe Telecom of the Philippines and Telkomsel of Indonesia  rose 43 pct year-on-year to 37.2 mln in end-Dec 2003.
     "All four operators enjoyed strong double-digit growth and maintained their respective share of the market," SingTel said.
     SingTels wholly-owned subsidiary Optus posted an 18 pct year-on-year growth in subscribers, bringing its base to 5.36 mln as of end-Dec 2003.
     "The growth was achieved despite a mobile penetration of 77 per cent in Australia and Optus took market share and added more higher-value customers," it said.
     In Singapore, SingTel had 1.53 mln subscribers as of end-Dec 2003, down marginally compared to the year ago level of 1.56.
     (1 usd = 1.69 sgd)
     singapore@afxasia.com

 

STOCK ALERT-Bank of the Philippine Islands firmer after improved 2003 results


     MANILA (AFX-ASIA) - Bank of the Philippine Islands (BPI) was firmer in early trade after reporting its net profit rose 10 pct to 5.7 bln in 2003 from the previous year's level, dealers said.
     The banking arm of conglomerate Ayala Corp booked a net profit of 1.5 bln pesos in the fourth quarter of last year, up from 1.2 bln a year ago.
     BPI was up 0.50 peso at 50.50 on volume of 521,000 shares.
     The bank said its earnings rose on improved revenues and lower operating expenses.
     (1 usd = 56.00 pesos)
     edelacruz@afxasia.com

 

Philippines' City & Land Developers 2003 sales up 12.58 pct yr-on-yr


     MANILA (AFX-ASIA) - City & Land Developers Inc said it booked sales amounting to 210.5 mln pesos in 2003, up 12.58 pct from the previous year's 187.0 mln.
     In the fourth quarter of 2003, sales totaled 49.05 mln pesos, up 40.77 pct from 34.85 mln a year ago.
     Sales in December reached 11.3 mln pesos, nearly double the year-ago level of 5.79 mln.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

 

Philippines' Swift Foods may export dressed chicken to Japan, SE Asia - report


     MANILA (AFX-ASIA) - RFM Corp subsidiary Swift Foods plans to export its dressed chicken products to Japan and other Southeast Asian countries where supply of poultry products has been cut due to the bird flu outbreak, the Philippine Daily Inquirer reported.
     "We would want to at least supply Japan and see to it that we maintain this market share and be side by side with Thailand when the avian flu crisis is over," the paper quoted RFM chairman Jose Concepcion Sr as saying.
     He said Swift aims to get a slice of Japan's 350-mln usd market being supplied by Thailand.
     The company's chicken dressing plant in Misamis Oriental province in southern Philippines has a daily capacity of 100,000 pieces of dressed chicken.
     edelacruz@afxasia.com

 

Philippines' Smart acquires 80 pct of Wolfpac


     MANILA (AFX-ASIA) - Smart Communications Inc, the wireless unit of Philippine Long Distance Telephone Co(PLDT), said it has acquired an 80 pct interest in Wolfpac, a leading Philippine mobile content provider.
     "The acquisition is in line with Smart's efforts to maintain its leadership in wireless services," Smart president and chief executive officer Napoleon Nazareno said in a statement.
     "Integrating the capabilities of the country's leading content and applications developer into Smart enhances our ability to provide a steady supply of innovative services for our customers."
     Under the deal, Wolfpac's incumbent management will continue to run the firm. Smart will tap Wolfpac to develop local content and applications, including platform development and serving overseas markets.
     The acquisition does not, however, preclude Smart from working with other content providers or from developing its own platforms.
     Wolfpac has twice been cited by the GSM Association (GSMA) as the "Best Wireless Applications Developer."
     The GSMA is the global association with over 600 cellular carriers and equipment manufacturers.
     
     edelacruz@afxasia.com

 

Philippine central bank to punish violators of forex trading rules


     MANILA (AFX-ASIA) - The Monetary Board has instructed the central bank to strictly impose fines and administrative sanctions against currency market players found repeatedly violating foreign exchange rules, central bank deputy governor Alberto Reyes said.
     He said financial institutions found to be frequently violating the rules will be stripped of their foreign exchange trading licenses, while their officers will be suspended.
     After hitting a record low of 56.22 to the US dollar, the peso ended last week at 55.98, regaining some lost ground on fears the central bank might use monetary tools to curb the local unit's weakness.
     "(For) those found guilty of splitting (dollar purchases) and repeatedly committing the offense, the Board told us to strictly penalize and impose monetary as well as non-monetary sanctions," Reyes said.
     By splitting their dollar purchases, banks are able to avoid documenting trading transactions particularly for purchases below the central bank limit.
     afxmanila@afxasia.com

 

Philippine govt plans 500-mln usd global bond issue this month - source


     MANILA (AFX-ASIA) - The national government may return to the global bond market as early as this month with an issue of up to 500 mln usd, despite the recent one-notch downgrade of the country's sovereign ratings by Moody's Investors Service, a government source said.
     The possible 10-year bond issue will help the government cover its budgetary requirements this year. This year's budget deficit ceiling has been set at 197.8 bln pesos, or 4.2 pct of GDP.
     The proceeds could also help boost the peso value, which fell to historic low levels last week amid growing pre-election political uncertainties.
     This belies an earlier report that the government has decided to postpone foreign borrowings after the Moody's move.
     The central bank, which has been prodding the government to raise its financing requirement before the May elections, has approved the government's external borrowing plans in principle.
     The central bank believes the national government could still raise its financing requirement in the international market at relatively low cost.
     "The government can now move to access the capital markets as Moody's uncertainties were lifted," the source said.
     Financial markets initially feared that Moody's would downgrade the country's ratings by as much as two notches.
     (1 usd = 56 pesos)
     afxmanila@afxasia.com

 


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