NEWS

Tension in Philippines as court rules on film star's presidential bid

     ----- by Jason Gutierrez ----
     MANILA (AFX-ASIA) - The Philippine Supreme Court began hearing a bid to exclude film star Fernando Poe from running for president as police fired water cannon at Poe supporters attempting to rally outside the building.
     The case is extremely sensitive as Poe, the country's most famous actor, is tipped by opinion polls to defeat President Gloria Arroyo in the May 10 vote and his supporters have warned of trouble if he is barred from running.
     A court spokesman said the 15 judges began hearing expert testimony on whether Poe, born to a Filipino father and an American mother, is a "natural-born Filipino citizen" as required by law for election candidates.
     Police doused a group of around 400 Poe supporters some three kilometers from the court in central Manila as they began marching towards the building.
     They also pounced on a smaller group of Poe supporters who drove within meters of the court compound carrying a black coffin symbolizing the death of democracy. Police seized the casket and arrested two protesters.
     Supreme Court spokesman Ismael Khan said police were enforcing a resolution prohibiting protests within a 200-meter radius of the building.
     Thousands of police were deployed around the court building in an attempt to head off any trouble after former president Joseph Estrada, a close friend of Poe, warned of civil war if the court ruled against the movie star.
     In an apparent concession, the authorities allowed around 4,000 Poe supporters to gather in central Manila where they held an anti-government rally and repeatedly chanted "FPJ" (Fernando Poe Junior).
     The crowd -- including politicians and movie stars -- heard speeches condemning Arroyo as corrupt and calling for her to be removed from office.
     The crowd dispersed after Poe's wife, former movie star Susan Roces, urged them to abide by an agreement with the authorities to break up.
     "FPJ is a Filipino. FPJ doesn't want trouble," Roces said, urging the supporters to respect the court's ruling, which is not expected today.
     Police have deployed several thousand officers around the Supreme Court. The streets around the compound were blocked by metal barriers.
     Poe's candidacy has alarmed the Philippines' business elite because he has never held public office, but the high-school drop-out is wildly popular with the masses because of his films. He is known as the Philippine John Wayne.
     Fears about Poe becoming president have driven the peso to an all-time low, government debt has suffered a rating downgrade and the stock market has become volatile.
     Poe enjoyed a lead of nearly eight percentage points over Arroyo in the latest opinion polls conducted earlier this week.
     The government fears a repeat of the rioting that engulfed Manila in May 2001, shortly after then-president Estrada was ousted in a military-backed popular revolt.
     Manila Mayor Lito Atienza had appealed to Poe supporters to "avoid rash actions". He said it would be pointless to air their grievances at the Supreme Court.
     "Demonstrations are prohibited around the Supreme Court. We will not allow them," he said in a radio broadcast.
     Poe's personal secretary, Susan Tagle, insisted the demonstrators meant no harm.
     "Our idol does not believe in any form of violence. His supporters merely want to convey to the justices that Poe is a Filipino," Tagle told DZBB radio.

Philippines' PLDT fixed line staff numbers down 15.7 pct at end-2003

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said the staff numbers at its fixed-line business declined 1,900 to 10,230 at end-2003 from 12,131 at end-2002.
     The company announced today that it has signed a new three-year collective bargaining agreement (CBA) with fixed-line workers, who were earlier reported to be planning to stage a strike.
     It did not disclose the major provisions in the new CBA.
     PLDT's fixed lines in service totaled 2.1 mln as of end-2003, of which 17 pct were prepaid.
     Fixed line revenue in 2003 as steady at 45.4 bln pesos, when compared with the 44.9 bln of the previous year.
     International long distance revenue grew 21 pct year-on-year to 12.1 bln pesos due to increased inbound termination rates implemented in Feb 2003.
     Revenue of the local exchange operations declined 2 pct to 20.6 bln pesos, while that of national long distance fell 16 pct to 6.3 bln.
     PLDT said, after its manpower reduction activities last year, for which provisions were made, the ratio of fixed lines per employee improved to 207 at end-2003 from the previous year's 172.
     "While the fixed line business remains under pressure, our strategy to reduce debt, contain costs, improve operating efficiencies and introduce new products and services have put the company on a more solid footing," PLDT chairman Manuel Pangilinan said.
     (1 usd = 56.20 pesos)
     edelacruz@afxasia.com

Philippines' Smart IPO to be 'slightly' delayed - PLDT chairman

     MANILA (AFX-ASIA) - The much-awaited initial public offering (IPO) of Smart Communications Inc, which is supposed to take place not later than August this year, will be "slightly" delayed due to the unfavorable political environment in the country, Philippine Long Distance Telephone Co (PLDT) chairman Manuel Pangilinan said.
     He, however, dismissed persistent market speculation that Smart, PLDT's fully-owned wireless unit, will be merged with PLDT affiliate Pilipino Telephone Corp (Piltel) to facilitate Smart's backdoor-listing.
     "It's difficult to (undertake the IPO and listing now) given the political situation. We'd rather wait until the situation (normalizes)," he said at a news briefing after PLDT announced its 2003 results.
     Smart is required under its franchise to offer some of its shares to the public not later than August.
     A possible merger with Piltel had been the subject of speculative play involving Piltel shares on the stock market since last year.
     After posting a stunning net profit of 11.2 bln pesos in 2003, almost four times the previous year's level -- on the back of sustained robust gains of Smart -- Pangilinan said PLDT is "comfortable" in delivering net profit of up to 17-18 bln pesos this year.
     PLDT will continue reducing group debt, he said, adding that it will pare away a further 370 mln usd of debt this year as part of the company's debt-liability management program.
     (1 usd = 56.20 pesos)
     afxmanila@afxasia.com

Philippines' PLDT declares cash div on preferred shares

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said its board of directors has approved the declaration of cash dividends on four convertible preferred stocks.
     The company declared 1.029412 usd per share for series III convertible preferred stock; 4.675 pesos per share for series V; 0.09925 usd per share for series VI; and 10.179725 yen per share for series VII.
     The dividends are all payable on April 15 to holders on record on March 17.
     (1 usd = 56.20 pesos)
     edelacruz@afxasia.com

Singapore-listed Del Monte FY net profit 30.20 mln usd vs 35.17 mln

     SINGAPORE (AFX-ASIA) - Philippine-based Del Monte Pacific Ltd full year 2003 results:
      Turnover - 200.45 mln usd vs restated 196.37 mln
      Net profit - 30.20 mln usd vs 35.17 mln
      Earnings per share - 2.82 cents vs 3.28 cents
      Div - 1.69 cents vs 1.97
     (1 usd = 1.67 sgd)
     rosana.gulzar@afxasia.com

Manila shares close flat on Poe case; PLDT results fail to excite

     MANILA (AFX-ASIA) - Share prices closed barely changed in a cautious, mixed session ahead of this afternoon's oral arguments at the Supreme Court on petitions to disqualify opposition presidential candidate Fernando Poe Jr on citizenship grounds, dealers said.
     Pre-election political concerns outweighed the forecast-beating 2003 earnings of Philippine Long Distance Telephone Co (PLDT), which announced a full-year audited net profit of 11.2 bln pesos, almost quadruple the 2002 level.
     The composite index closed up 1.02 points, or 0.07 pct, at 1,473.14 on volume of 242.7 mln shares worth 1.13 bln pesos. It traded between 1,465.16 and 1,474.88.
     In the broader market, losers led gainers 27 to nine, while 36 stocks ended unchanged.
     Gains in select blue chips, such as Equitable PCI Bank and Globe Telecom, kept the market in positive territory.
     "Investors are sitting on the bench to await developments in the political arena. The market is continuously consolidating along with a relatively low volume of trades," Accord Capital Equities analyst Lawrence de Leon said.
     Today's turnover was boosted largely on 658.7 mln pesos worth of cross sales in mall operator SM Prime Holdings, which was top traded and closed unchanged at 5.90 pesos.
     PLDT fell 5.00 pesos to 935.00 on 271,750 shares, "sold on news" after the release of its 2003 results.
     "Robust earnings for 2003 were expected and investors are happy with them. Some investors, especially those who bought the stock at lower levels, have started to cash in on gains," DA Market Securities president Nestor Aguila said.
     Dealers said a weaker peso, which fell to a two-week low yesterday, also served as another disincentive to trade. The local unit averaged 56.174 to the US dollar at noon, against yesterday's close of 56.125.
     "At the rate it is going, the peso is expected to remain weak so long as political noises linger, unless there is another monetary policy tightening by the central bank," Accord's de Leon said.
     The market largely ignored the latest imports data, which showed a 5.7 pct growth in full-year 2003 and a 14.8 pct year-on-year rise in December.
     Supporters of Poe are reportedly staging rallies in different parts of the capital in a show of force as the Supreme Court hears arguments for and against his disqualification.
     Petitioners want Poe out of the May 10 race, saying he is not a natural-born Filipino citizen.
     Poe has hardly been the favorite of investors, but they fear a possible disqualification may lead to mass street protests.
     PLDT affiliate Pilipino Telephone Corp was down 0.02 peso at 1.66 on 22.6 mln shares.
     Manila Electric B, available to foreign investors, was down 0.50 at 31.00 and Meralco A down 0.25 at 19.25.
     Equitable PCI Bank was up 0.50 at 39.00.
     Globe Telecom was up 10.00 at 880.00.
     San Miguel A was up 0.50 at 56.00, while San Miguel B was unchanged at 69. 00.
     Ayala Corp was down 0.10 at 6.00 and unit Ayala Land down 0.10 at 5.80.
     The all-shares index was down 7.38 points at 943.22.
     The commercial-industrial index fell 1.65 to 2,283.82.
     Property dropped 4.68 to 536.66, while mining lost 8.51 to 1,551.57.
     Oil was unchanged at 1.27.
     Banking and financial services advanced 5.23 to 434.82.
     cecille.yap@afxasia.com

DATAWATCH - Philippine exports to grow 10-13 pct this yr - GK Goh

     MANILA (AFX-ASIA) - Philippine merchandise exports are expected to post 10-13 pct growth this year from 2003, with this outlook supported by a double-digit rise in merchandise imports in December, GK Goh Securities regional economist Song Seng Wun said.
     Merchandise imports in 2003 rose 5.7 pct year-on-year to 37.448 bln usd, after December shipments improved 14.8 pct year-on-year to 3.068 bln usd, the National Statistics Office (NSO) reported.
     The Philippines recorded a trade deficit of 1.697 bln usd for 2003, more than six times higher than the 218 mln usd seen in 2002, the NSO said.
     However, it registered a trade surplus of 108 mln usd in December, lower than the year earlier's 241 mln.
     Electronic imports in 2003 were up 3.46 pct year-on-year at 17.456 bln usd.
     In December, electronics imports came in 24.68 pct higher year-on-year at 1.496 bln usd, representing 48.8 pct of the total imports for the month.
     "We're expecting something close to that figure (a 14.8 pct rise in December) and it's good enough. I think it's the strongest growth we've seen in the last 10 months," the Singapore-based Song said.
     "I think it's a result of two things -- higher energy costs and increased demand in the tech sector."
     Going forward, he said Philippine merchandise exports should do well as some of the imported items are raw materials for export products.
     He said this may help boost the peso, currently trading near its record low of 56.220 to the US dollar due to the uncertain political environment ahead of the May 10 presidential election.
     Song said Philippine merchandise imports this year may grow about 6.0 pct from last year.
     The government is aiming for 10 pct growth in exports and 11 pct for imports this year.
     edelacruz@afxasia.com

Philippines' PLDT 2003 net profit more than triples on Smart's gains

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said its audited net profit in 2003 more than tripled on the sustained robust gains of wireless unit Smart Communications Inc.
     PLDT booked a record 2003 net profit of 11.2 bln pesos, after provisions, compared with the previous year's 3.0 bln as Smart's earnings soared to 16.1 bln, almost 10 bln more than in 2002.
     The results were even better than the company's most recent projections as it had forecast a 2003 net profit of 9-10 bln pesos.
     Analysts AFX-Asia polled expected PLDT's 2003 net profit at 9-13 bln pesos on a boost from the robust performance of Smart.
     Manuel Pangilinan, elected PLDT chairman at today's board meeting in place of Antonio Cojuangco, said the 2003 results indicate "excellent prospects" for the PLDT group in the years ahead.
     "We are committed to increasing shareholder value through sustained earnings growth, continuing our deleveraging efforts and restoring common dividends by 2005," Pangilinan, who was PLDT president prior to his appointment as chairman.
     "What I said in the last quarter bears repeating - the best is yet to come."
     PLDT's new president and chief executive officer Napoleon Nazareno said he intends to continue the overall strategy set by the PLDT board in recent years.
     He serves concurrently as president of Smart.
     Cojuangco, who has acquired control of ABC-5 network, remains a PLDT director.
     The PLDT group's total wireless subscribers have exceeded the 13 mln mark in early January, as Smart and Talk 'N Text set another new high for net additions with nearly 1.4 mln subscribers during the fourth quarter of 2003.
     Talk 'N Text is the wireless brand of PLDT affiliate Pilipino Telepone Corp.
     PLDT's consolidated revenue rose 22 pct to 97.7 bln pesos in 2003 from the previous year.
     Smart's revenue increased to 49.9 bln pesos, 51 pct higher than the 33 bln recorded in 2002, outpacing the increase in cash expenses.
     PLDT said Smart's "over-the-air" reloading service has been well received by its prepaid subscribers, and was a major factor in the strong subscriber take-up by both Smart and Talk 'N Text.
     PLDT reduced group debt by 252 mln usd last year in addition to the 209 mln debt reduction achieved in 2002 - in line with its liability management objectives.
     PLDT also announced it has signed a new three-year collective bargaining agreement with its fixed-line workers.
     The company booked provisions for manpower reduction expenses and non-recurring charges for certain investments. But even after making those charges, its consolidated free cashflow increased by 24 pct to 22.6 bln pesos in 2003 from 18.3 bln in the previous year.
     "Our results clearly show management's commitment to push boundaries and raise PLDT's bar of performance to a higher level," said Pangilinan, who is expected to devote more of his time as managing director and CEO of PLDT parent First Pacific Co Ltd, based in Hong Kong.
     "We have surpassed our targets and broken through the conventional market views of profitability and penetration rates."
     (1 usd = 56.18 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines PLDT weaker after 2003 earnings result

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co was weaker in late trade after the company announced better-than-expected net profit of 11. 2 bln pesos for 2003.
     Dealers said investors have begun to "sell on news" to lock in profits from the stock's recent gains prior to the release of its financial results.
     At 11.14 am, PLDT was top-traded and down 5.00 pesos at 935 on 178,220 shares.
     "A robust earnings result for 2003 was expected and investors are happy with that. Some investors, especially those who bought the stocks at lower levels, have started to cash in on their gains," DA Market Securities president Nestor Aguila said.
     PLDT reported its net profit almost quadrupled to 11.2 bln pesos from 3.0 bln in 2002, on the back of its wireless unit Smart Communication's 16.1-bln peso net profit.
     Its wireless subscriber base has surpassed the 13-mln mark in early January.
     (1 usd = 56.174 pesos)
     cecille.yap@afxasia.com

Philippines' PLDT 2003 net profit 11.2 bln pesos vs 3.0 bln

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co's audited results for the full year to Dec 2003:
     Revenues - 97.72 bln pesos vs 80.17 bln
     Operating profit - 30.07 bln pesos vs 20.67 bln
     Adjusted EBITDA - 57.32 bln pesos vs 45.29 bln
     Recurring net profit - 16.87 bln pesos vs 7.11 bln
     Net profit - 11.2 bln pesos vs 3.00 bln
     Earnings per share, basic - 55.74 pesos vs 8.04
     Earnings per share, diluted - 53.73 pesos vs 8.04
     (1 usd = 56.179 pesos)
     cecille.yap@afxasia.com

Philippines 2003 merchandise imports up 5.7 pct

     MANILA (AFX-ASIA) - The Philippines' merchandise imports in 2003 rose 5.7 pct year-on-year to 37.448 bln usd, the National Statistics Office (NSO) reported.
     December imports improved 14.8 pct year-on-year to 3.068 bln usd.
     The Philippines recorded a trade deficit of 1.697 bln usd for 2003, more than six times higher than the 218 mln usd seen in 2002, the NSO said.
     However, it registered a trade surplus of 108 mln usd in December, lower than the year earlier's 241 mln.
     Electronic imports in 2003 were up 3.46 pct year-on-year at 17.456 bln usd.
     In December, electronics imports came in up 24.68 pct year-on-year at 1. 496 bln usd and represented 48.8 pct of the total imports for the month.
     Imports of mineral fuels, lubricants and related materials ranked second with a 9.3 pct share. Shipments were valued at 285.05 mln usd, up 23.4 pct from a year earlier.
     Purchases of industrial machinery and equipment were ranked third, worth 149.71 mln usd and up 38 pct year-on-year.
     Capital goods comprised 40.8 pct of total December bill, with purchases worth 1.253 bln usd, up 13.6 pct from year-earlier imports.
     Raw materials and intermediate goods accounted for 39.1 pct of the bill, with total purchases of 1.198 bln usd, up 14.8 pct year-on-year.
     Imports from Japan were worth 658.49 mln usd, up 16.0 pct year-on-year, and accounted for 21.5 pct of the December bill. Exports to Japan amounted to 532.84 mln usd, yielding a trade deficit of 125.66 mln usd for the Philippines.
     Purchases from the US accounted for 18.2 pct of total shipments, valued at 557.41 mln usd against exports to that country of 615.27 mln usd. This resulted in a trade surplus of 57.87 mln usd for the Philippines.
     Singapore was the Philippines' third biggest source of imports, with payments worth 232.6 mln usd, up 30.1 pct year-on-year. With exports to Singapore amounting to 228.07 mln usd, a trade deficit of 4.53 mln usd was registered for the Philippines.
     (1 usd = 56.125 pesos)
     afxmanila@afxasia.com

Forex - Philippine peso weakens early with market glued to Poe hearing

     MANILA (AFX-ASIA) - The peso traded closer to its all-time low of 56.22 against the US dollar in early trade as market players await developments at the Supreme Court, where oral arguments on petitions filed to disqualify opposition presidential candidate Fernando Poe Jr are set for today, dealers said.
     The market is, however, cautious in bidding up the dollar since the central bank is expected to come to the peso's rescue immediately, they added.
     At 9.49 am, the peso averaged 56.174 to the dollar after trading between 56.160 and 56.185 on volume of 17.9 mln usd. It closed at a two-week low of 56.125 yesterday.
     "We're all watching developments at the Supreme Court and we're also keeping an eye on the central bank's moves," a commercial bank dealer said, adding he sees the peso trading at a range of 56.100-56.250 today.
     Poe's supporters are to hold rallies in Manila today in what is seen as a show of force as the Supreme Court hears arguments for and against his disqualification from the presidential poll.
     Financial analysts said investors fear the disqualification of the movie actor, currently the front-runner for the May 10 election, may spark violent protests from his followers.
     Poe's friend and fellow movie star, deposed former president Joseph Estrada, has warned of "civil war" if he is barred from running.
     According to petitions filed with the Supreme Court, Poe is an illegitimate child of an American mother and Filipino father, and not qualified for the May 10 election as he is not a natural-born Filipino citizen. An illegitimate child takes his mother's citizenship.
     His candidacy has also worried investors, as his popularity may work for him, despite his unimpressive educational background, lack of experience in public service and his admission to having fathered a child out of wedlock.
     Dealers said currency market players shrugged off news that merchandise imports in December rose 14.8 pct year-on-year, which may indicate strong exports in the coming months as some of the import items are raw materials for export products.
     "I think all (positive) economic fundamentals will not matter in financial markets, particularly in the forex market, in the next few weeks," a currency dealer said.
     edelacruz@afxasia.com

Philippines' Maynilad Water appoints Estuar new president

     MANILA (AFX-ASIA) - Maynilad Water Inc has appointed former public works and highways secretary Fiorello Estuar as its new president, replacing Rafael Alunan III, parent Benpres Holdings Corp announced.
     Prior to this appointment, Estuar was president of First Balfour Beatty, the construction arm of the Lopez Group.
     Alunan, a former interior and local government secretary, returns to his previous assignment as consultant to the Lopez Group. He also retains the presidency of First Philippine Infrastructure Development Corporation and directorships in infrastructure-related businesses.
     Benpres chairman Oscar Lopez said the Lopez Group would like to maximize the benefit of Alunan's experience, particularly in political and security concerns.
     edelacruz@afxasia.com

Philippine Stock Exchange declares 16 pesos per share cash dividend

     MANILA (AFX-ASIA) - The Philippine Stock Exchange has declared a cash dividend of 16 pesos per share to be paid to stockholders on record as of March 4, 2004.
     Payment date is set for March 9.
     The PSE also said it will issue 812,095 in new shares to five institutional investors, which recently invested 629 mln pesos in the local bourse through a private placement.
     These investors are state-run pension fund Government Service Insurance System (GSIS), PLDT Beneficial Trust Fund, San Miguel Corp Retirement Fund, Kim Eng Investment Ltd and KE Strategic Pte Ltd.
     The transaction was underwritten by ATR-Kim Eng Capital Partners Inc, which will also receive additional shares for clients A. Soriano Corp and Equinox Partners.
     (1 usd = 56.125 pesos)
     cecille.yap@afxasia.com

Bank of the Philippine Islands declares 20 pct stock dividend

     MANILA (AFX-ASIA) - Bank of the Philippine Islands (BPI) said its board of directors approved the declaration of a 20 pct stock dividend on the bank's total shares and outstanding common shares.
     Entitled are stockholders on record as of the 15th day from BPI's receipt of the central bank's notice of approval.
     BPI is the country's second largest bank.
     edelacruz@afxasia.com

Philippine San Miguel to sell beer in plastic bottles this year - report

     MANILA (AFX-ASIA) - Food and beverage conglomerate San Miguel Corp plans to introduce San Miguel beer in plastic bottles this year, following the lead of major breweries worldwide, the BusinessWorld newspaper reported, citing a company source.
     The source said San Miguel has recently been testing the new packaging and a formal launch would be made in the third quarter.
     The mass production is set after June, when San Miguel minority shareholder Kirin Brewery Co of Japan delivers the equipment to make plastic bottles airtight to preserve beer quality.
     The equipment, made by Kirin and Mitsubishi Heavy Industries Ltd, is estimated to cost 400 mln yen, the report said.
     cecille.yap@afxasia.com

Malaysia reinstated to CalPERS' permissible markets investment list

     KUALA LUMPUR (AFX-ASIA) - Malaysia has been reinstated to the permissible markets investment list of California Public Employees' Retirement System (CalPERS), a statement on the US pension fund's website said.
     "Malaysia was moved into the investable universe because of improvements made in that country," CalPERS said in the announcement on its 2004 Emerging Markets Equity Policy.
     The fund said it has accepted an annual report from its investment adviser Wilshire Associates which will "slightly change" the way it invests in stocks around the world.
     Based on the report, CalPERS has given Argentina, Peru and Turkey - markets that fell below CalPERS required score - one year to improve, a time period refered to as the "cure period".
     CalPERS added that it deferred for 30 days a decision to divest in the Philippines.
     "The Philippines, which was placed in the cure period after last year's review, improved slightly but not enough to reach CalPERS standards," the fund said.
     CalPERS has about 2.6 bln usd currently invested in the emerging markets, including 67 mln usd in the Philippines.
     "The good news is that generally countries' scores have improved over the two year period we have had this policy. We remain optimistic that over time we will continue to see more countries meeting our threshold," said Rob Feckner, CalPERS Investment Committee Chair.
     "Our door remains open to discussing how more countries can improve their markets to better support institutional investment," he added.
     lilian.loh@afxasia.com

Philippines' Banco de Oro eyes capital increase - report

     MANILA (AFX-ASIA) - Banco de Oro Universal Bank (BDO) may raise new capital through the issuance of Tier 2 capital notes depending on the outcome of its bid to purchase a substantial stake in Equitable PCI Bank, the BusinessWorld newspaper reported, quoting Banco de Oro president Nestor Tan.
     "If we are successful in this transaction, we can have a capital raising exercise," Tan was quoted to have said.
     BDO has signed a letter of intent to buy state-run pension fund Social Security System's (SSS) 29 pct stake in Equitable PCI for 14 bln pesos.
     BDO, controlled by shopping mall tycoon Henry Sy Sr, will pay SSS 43.50 pesos for each Equitable PCI share, 30 pct higher than its 2003 stock market closing price of 33.50.
     The transaction is now the subject of a Senate inquiry on grounds that it may have been disadvantageous to members of the pension fund.
     (1 usd = 56.125 pesos)
     cecille.yap@afxasia.com

Philippines' SM Group buys 695 mln peso property for mall development

     MANILA (AFX-ASIA) - A unit of the SM Group has acquired from the Bases Conversion Development Authority (BCDA) a former military base in Quezon City for 695 mln pesos.
     SM's Bellevue Properties Inc will develop the five-hectare Bago Bantay Camp into a mall with residential, office and commercial space. The property is located beside an existing SM mall.
     "It will most likely be for commercial use," BCDA president and chief executive officer Rufo Colayco said.
     Bellevue paid BCDA 240 mln pesos in cash upon signing the purchase contract, while the balance will be paid in monthly installments of 12.6 mln pesos, Colayco added.
     The SM Group currently operates 17 malls nationwide through publicly-listed firm SM Prime Holdings.
     (1 usd = 56.125 pesos)
     cecille.yap@afxasia.com

Philippines to lower tariff on imported spare parts of public utility vehicles

     MANILA (AFX-ASIA) - The government has agreed to lower the tariff rates on imported spare parts for public utility vehicles (PUVs) to convince operators to postpone a new round of fare increases.
     Presidential spokesman Igancio Bunye said the measure will be adopted as part of government's remedial actions to control the rising prices of goods and services due to higher global crude oil costs.
     The government may even allow duty-free importation of some vehicle spare parts, Bunye said.
     Earlier, the energy department also prevailed upon oil companies to assign gasoline stations where PUVs can purchase diesel at discounted rates.
     "So these factors, in our view, will help reduce the cost of the public transport sector and no longer pressure them to insist on requests for increase in fares," Bunye said.
     afxmanila@afxasia.com

Philippine central bank to let govt borrow up to 1.0 bln usd this year

     MANILA (AFX-ASIA) - The central bank's monetary board has given the national government approval to take on fresh borrowings of up to 1.0 bln usd this year, including some of the financing needs of state-owned National Power Corp (Napocor), said the regulator's governor, Rafael Buenaventura.
     Buenaventura also urged the national government to be "opportunistic" and to return to the international debt market as soon as possible.
     "Why not be opportunistic? This will remove the pressures (on interest rates). The sooner the national government gets it out of the way the better, " he told reporters.
     The government is considering going back to the global bond market in the first quarter of this year, ahead of the May 10 presidential election, to cover part or all of its 2004 remaining external financing requirements of about 680 mln usd, Finance Secretary Juanita Amatong earlier said.
     "We are studying a new global bond issue. The longer the term, the better, " she said.
     The government this month issued 1.3 bln usd worth of global bonds due 2011, most of which were exchanged for short-dated outstanding bonds maturing in 2006, 2008, 2009, as well as so-called Brady bonds.
     It also raised 120 mln usd from the bond offer.
     The government aims to contain this year's deficit at 197.8 bln pesos, or 4.2 pct of gross domestic product.
     Buenaventura said the government's planned borrowings have been approved, in principle, to give the fiscal authorities flexibility to tap the offshore market should opportunities arise.
     "We have given authority for the government to borrow about 1.0 bln usd. This includes some of Napocor's borrowing," he said.
     The central bank, meanwhile, also plans to do its own fund raising later this year possibly through a syndicated arrangement.
     It still needs about 500 mln usd to be able to refinance fully 800 mln usd worth of obligations maturing this year.
     "We will do what is most appropriate, a syndicated loan may be later in the year so that, at least, the bond market is open to the government (this year)," Buenaventura said.
     The central bank, however, may also opt to defer any borrowings if foreign fund inflows from export revenues, as well as portfolio and foreign direct investments, stay within projected levels.
     "If dollar remittances, portfolio and foreign direct (investments) pick up plus (there is) a healthy export growth, then, we may not even need to borrow," he said, adding that any borrowings under this scenario "will just be for BOP (balance of payments) support and reserve management."
     Napocor, meanwhile, plans to raise as much as 1.5 bln usd from commercial borrowings within the next two months, a government source said.
     The firm is currently in the process of accepting financing offers, the source added.
     "We need to raise the funds within the next two months but we still need to decide what (borrowing) structure is best," the source said.
     The borrowings could be in the form of private placements or bonds, the source added.
     (1 usd = 56.125 pesos)
     afxmanila@afxasia.com

Forex - Philippine peso ends down ahead of Poe's disqualification case hearing

     MANILA (AFX-ASIA) - The peso closed at its weakest level in two weeks against the US dollar as investors took caution ahead of tomorrow's Supreme Court hearing on the disqualification case against presidential front-runner Fernando Poe Jr, dealers said.
     The local currency closed at 56.125 versus the dollar after trading between 55.98 and 56.13 on volume of 138.50 mln usd. It ended at 56.020 yesterday.
     "The peso is on a lose-lose situation should the court decide either way, " a trader with a local bank said.
     Disqualifying the popular movie star from the presidential race is seen to spark massive protests by his supporters.
     Ousted former president Joseph Estrada, a fellow movie star and close friend of Poe, warned of "civil war" should the court favor the disqualification petition which stemmed from an argument that Poe is not a natural-born Filipino citizen.
     However, "fears that Poe would win also raise concern among investors" given his inexperience in government, another dealer said.
     Caution will likely dominate tomorrow's trading at the foreign exchange market amid talk that the central bank could again raise banks' reserve requirement or increase overnight rates to prevent the peso from falling. The Monetary Board holds its weekly meeting tomorrow.
     "The situation is very fluid. The peso could go either way," a dealer said.
     cecille.yap@afxasia.com

Philippines' ABS-CBN appoints Alejandro new president, COO

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp has appointed Luis Alejandro as its new president and chief operating officer, replacing Federico Garcia who retired last month.
     Alejandro was chief operating officer of Heinz UFC Philippines Inc and president and chief operating officer of Southeast Asia Food Inc.
     He has 24 years of experience in brand/marketing operations and general management, ABS-CBN said.
     afxmanila@afxasia.com

CalPERS gives Philippines 30 days to update economic data

     MANILA (AFX-ASIA) - The California Public Employees' Retirement System (CalPERS) has put off for 30 days a decision on whether to continue investing in the Philippines.
     A decision was supposed to have been made today.
     The Philippines, which faces the possibility of being removed from the US pension fund's list of permissible investment destinations, was given 30 days to work with CalPERS consultant Wilshire Consulting "to include the (country's) most recent data on the financial market and labor reforms" in the review, the government's Investor Relations Office said.
     The Philippines scored poorly for the third straight year in Wilshire's latest assessment.
     It gave the Philippines a total score of 1.86, an improvement from last year's 1.46, but below the cut-off of 2.0 for CalPERS' qualified investments sites.
     In its report to CalPERS, Wilshire cited the Philippines' failure to have its name removed from the Paris-based Financial Action Task Force's blacklist of countries deemed to be uncooperative in the fight against money laundering.
     "That is welcome news. It will give us time to include (in their review) things that we have done. So much has been done already. I hope they keep an open mind," central bank governor Rafael Buenaventura said.
     CalPERS, which manages assets of around 133 bln usd, including about 1.8 bln invested in emerging markets, such as the Philippines, last year decided to keep the country on its investment list for an observation period of one year.
     It made the decision despite Wilshire's recommendation to remove the country from the list.
     During the one-year "cure period", the Philippines was supposed to correct any deficiencies in its system to qualify permanently as an investment site.
     Wilshire had given the country low scores in areas of market practises and business conduct. The government argued that Wilshire based its recommendation on inaccurate data.
     "The task is really up to us," Philippine Ambassador to Washington Alberto Reyes, who attended a meeting with CalPERS, said in an interview over ABS-CBN News Channel.
     "We have presented (various) initiatives which will be validated by Wilshire, but the way the system works is that we have to ensure that third party sources that provide assessment for this consideration are on board in terms of our reading of the situation.
     "We will have to go and see these third party sources to make sure their assessments are positive," Reyes added.
     He said that while the Philippines will gain the recognition of being an "attractive" investment location should it remain on CalPERS' list, "other institutional investors (will) do their own reading of the situation."
     (1 usd = 56.036 pesos)
     cecille.yap@afxasia.com

Philippines' ATR Kim Eng Financial to list 30 mln common shares Feb 19 - PSE

     MANILA (AFX-ASIA) - ATR Kim Eng Financial Corp, formerly Philtread Holdings Corp, will list an additional 30 mln common shares tomorrow, a Philippine Stock Exchange circular said.
     The listing will cover the conversion to common shares of 30 mln of the company's warrants.
     ATR Kim Eng was not traded today after closing at 2.20 pesos previously.
     (1 usd = 56.05 pesos)
     edelacruz@afxasia.com

Philippine National Bank's forex unit 2003 net profit up 14 pct

     MANILA (AFX-ASIA) - Philippine National Bank said wholly-owned unit PNB Forex Inc posted a 14 pct increase in net profit to 17.5 mln pesos in 2003 from the previous year's 15.336 mln, exceeding the 10.5 mln target on "prudent and calculated" positioning in the currency market.
     PNB Forex president Jaime Bautista said the company saw increases in both its client base and dollar trading volumes amid a volatile foreign currency environment.
     For this year, PNB Forex expects a conservative net profit of 9.2 mln pesos as it implements a "more aggressive" marketing strategy.
     (1 usd = 56.05 pesos)
     edelacruz@afxasia.com

Manila shares close up on PLDT gains; market cautious on Poe hearing - UPDATE

     (Updating with analyst comments, prices)
      MANILA (AFX-ASIA) - Share prices closed firmer in a mixed session, with investors generally cautious about taking positions ahead of tomorrow's Supreme Court hearing on petitions to disqualify opposition presidential candidate Fernando Poe Jr over his citizenship, dealers said.
     The market's gain largely came from Philippine Long Distance Telephone Co (PLDT), which sustained buying interest ahead of tomorrow's announcement of its 2003 results.
     The composite index closed up 7.24 points, or 0.49 pct, at 1,472.12 on volume of 251.8 mln shares worth 1.53 bln pesos, boosted largely by cross sales in Globe Telecom Inc amounting to 849.97 mln.
     The index moved between 1,460.87 and 1,474.48.
     In the broader market, losers led gainers 30 to 19, while 33 stocks were unchanged.
     Dealers said the decision of California Public Employees' Retirement System, or CalPERS, to delay the divestment of assets in the Philippines for at least 30 days, may have temporarily helped eased concerns over rising domestic interest rates and a weaker peso.
     The government launched last-minute lobbying to convince CalPERS to keep the Philippines in its emerging markets' list of investment sites, despite Wilshire Consulting recommending that the country be removed from the list.
     Dealers said investors fear the disqualification of movie actor Poe, currently the front-runner for the May 10 election, may spark violent protests from his fans.
     "The thin volume (except for Globe cross sales) suggests investor caution ahead of tomorrow's event at the Supreme Court," DA Market Securities president Nestor Aguila said.
     He noted, however, PLDT shows "resilience" ahead of the release of its results tomorrow.
     Poe's friend and fellow movie star, deposed former president Joseph Estrada, has warned of "civil war" if Poe is barred from running.
     According to petitions filed with the Supreme Court, Poe is an illegitimate child of his American mother and Filipino father, and not qualified to join the May 10 election as he is not a natural-born Filipino citizen.
     His candidacy has worried investors, as his popularity is likely to win votes, notwithstanding his unimpressive educational background, lack of experience in holding public office, and his admission to fathering a child out of wedlock.
     "With the (Poe citizenship) issue still pending, we expect the market to remain in consolidation due to the absence of other market-moving catalysts," AB Capital Securities research director Jose Vistan Jr said.
     Top-traded Globe was unchanged at 870 pesos on volume of 993,850 shares.
     PLDT was up 10 pesos at 940 on 235,920 shares.
     A PLDT source said the company will likely announce tomorrow net profit of 10.5-10.9 bln pesos.
     Analysts polled by AFX-Asia expect PLDT's 2003 net profit to come in at 9. 0-13.0 bln pesos on the sustained robust performance of its wireless unit Smart Communications Inc.
     PLDT had initially projected 2003 net profit would come in at 9.0-10.0 bln pesos after provisions.
     PLDT affiliate Piltel today gave back gains to close 0.08 weaker at 1.68 on 55.6 mln shares.
     Ron Rodrigo, a research consultant at Accord Capital Equities, said investors are awaiting fresh statements from PLDT officials on persistent talk of a merger between Piltel and Smart during tomorrow's briefing on the 2003 results.
     Investors had been buying up Piltel on the merger speculation, which is reportedly intended to facilitate Smart's backdoor listing. This, however, has been officially denied.
     Ayala Corp was up 0.20 at 6.10, while unit Ayala Land was up 0.10 at 5.90.
     Bank of the Philippine Island fell 1.00 to 43.50.
     The all-shares index was down 0.68 points at 950.60.
     The commercial-industrial index rose 15.93 to 2,285.47.
     Property gained 4.46 to 541.34.
     Mining dropped 23.39 to 1,560.08.
     Oil was down 0.02 at 1.27.
     Banking and financial services shed 4.11 to 429.59.
     (1 usd = 56.05 pesos)
     edelacruz@afxasia.com

Philippines presidential front-runner wants calm over court case - UPDATE

     (Repeating to fix typo in headline)
     MANILA (AFX-ASIA) - President Gloria Arroyo Wednesday put police on alert ahead of planned protests as the Supreme Court prepared to hear a case tomorrow that may see her main rival, Fernando Poe Jr, barred from the May elections.
     Presidential front-runner Poe, meanwhile, appealed to supporters to respect the law and let the judiciary complete its work on the potentially explosive case.
     Some of the movie star-turned politician's supporters earlier warned of "people power" protests, while his friend and fellow movie star, deposed former president Joseph Estrada, spoke of "civil war" if Poe is barred from running.
     "We call on the organizers and the leaders of those planning to stage a rally to police their own ranks," Arroyo said in a written statement.
     The police "shall maintain law and order as the Supreme Court hears the oral argument on the (Poe) citizenship case," she said.
     "The police will exercise maximum tolerance."
     The court is to hear tomorrow two suits seeking to have Poe excluded from the May 10 election on citizenship grounds. The petitions allege that Poe, 64, is an American citizen and not a Filipino.
     Press reports said today that Poe supporters plan to set up a "human chain" of protesters from a northern Manila roundabout to the Supreme Court building downtown on the same day to put pressure on the judiciary to rule in his favor.
     "I would like to make an appeal to the supporters of FPJ (Fernando Poe Jnr) to remain calm and steadfast," Poe spokesman Francis Escudero said on nationwide television.
     "Have faith and belief in our justice system, as well as the magistrates of the Supreme Court, that justice will be served and that the truth will be the basis of whatever decision that will be made," he added.
     Tens of thousands of Estrada supporters laid siege on the Malacanang presidential palace on May 1, 2001, shortly after a popular revolt eased him from power and caused his arrest for alleged corruption.
     Arroyo was forced to call in the army to stop the rioting that claimed three lives.
     A pro-Estrada group that led the May 2001 protests, the People's Movement against Poverty, said in a written statement that the poor are closely watching the developments of the Poe case, and urged the court to "redeem itself from earlier blunders."
     "We cannot stand idly by to witness our new hope for a brighter future for the masses melt like wax just because of trumped up charges," said the group's spokesman, Ronald Lumbao.
     "We cannot take it lightly if FPJ is disqualified," he added.
     High school dropout Poe draws most of his popular support from poor Filipinos.

Philippines' CADP Group to list 1.302 bln common shares Feb 20 - PSE

     MANILA (AFX-ASIA) - CADP Group Corp will list 1.302 bln additional common shares, arising from a share-for-share swap with Roxas Holdings Inc, on Friday, a Philippine Stock Exchange circular said. Sugar producer CADP is a subsidiary of Roxas Holdings. Roxas Holdings will transfer to CADP Group its entire interests in Central Azucarera Don Pedro (formerly Phoenix Sugar Corp), CADP Consultancy Services Inc, and CADP Farms Services Inc.
     No other details were given in the circular.
     At 11.43 am, both CADP and Roxas Holdings were not traded. They previously closed at 2.50 pesos and 0.96 pesos, respectively.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

Manila shares up slightly ahead of court hearing on Poe citizenship

     MANILA (AFX-ASIA) - Share prices were up slightly late morning on investor caution ahead of tomorrow's Supreme Court hearing on petitions to disqualify opposition presidential candidate Fernando Poe Jr over his citizenship with the market still lacking definite direction, dealers said.
     However, continued positioning in Philippine Long Distance Telephone Co (PLDT) and affiliate Pilipino Telephone Corp (Piltel) provided the market some support, they added.
     At 10.56 am, the composite index was up 5.90 points, or 0.40 pct, at 1, 470.78 on volume of 71.1 mln shares worth 241.6 mln pesos. It has moved between 1,460.87 and 1,470.78 so far.
     There were 17 gainers and an equal number of losers, while 20 stocks were unchanged.
     "The very thin volume suggests investor caution ahead of tomorrow's event at the Supreme Court," DA Market Securities president Nestor Aguila said.
     "Nevertheless, telecom stocks, such as PLDT and Piltel, are showing resilience ahead of their results tomorrow."
     Analysts fear the disqualification of Poe, a movie actor and currently the front-runner for the May 10 election, may spark violent protests from his fans.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

Philippines' 2003 ODA disbursement 1.4 bln usd vs 1.0 bln in 2002 - NEDA

     MANILA (AFX-ASIA) - The government disbursed a total of 1.4 bln usd in Official Development Assistance (ODA) funds in 2003, up from 1.0 bln in 2002, the National Economic Development Authority (NEDA) reported.
     ODA funds are grants and loans that foreign governments and multilateral agencies extend.
     The ODA disbursement ratio, which represents actual disbursements as opposed to the net loan amount, also grew 36 pct year-on-year in 2003.
     Economic planning secretary Romulo Neri said the higher disbursement points to continued efficient use of the ODA funds among implementing agencies.
     "The last time the government came close to this performance level was in 1996 when disbursements reached 1.39 bln usd," Neri said in a statement.
     Fund disbursement for project loans, or those for infrastructure, rose 14 pct to 1.1 bln usd.
     Around 62 pct of the total amount came from Japan Bank for International Cooperation (JBIC), 19 pct from the World Bank, 9 pct from the Asian Development Bank and 10 pct from other funding institutions.
     Meanwhile, disbursement of program loans increased 238 pct to 338 mln usd.
     NEDA said the government is close to achieving the 20 pct disbursement ratio target this year.
     (1 usd = 56.03 pesos)
     cecille.yap@afxasia.com

STOCKWATCH - Philippines' Jollibee firmer on improved 2003 results, outlook

     MANILA (AFX-ASIA) - Jollibee Foods Corp was firmer in thin trade after announcing a 21 pct rise in its 2003 net profit and forecasting further growth of 10-15 pct this year, dealers said.
     However, they said buying was limited amid concerns over the potential impact of the bird flu outbreak in the region on future sales. Jollibee's Chicken Joy product accounts for a major portion of its sales.
     At 10.34 am Jollibee was up 0.25 peso at 19.75 on volume of 50,900 shares.
     The composite index was down 2.03 points, or 0.14 pct, at 1,462.85.
     The country's largest fast-food chain operator announced yesterday, after the market closed, that its net profit rose to 1.256 bln pesos in 2003, from the previous year's 1.039 bln, on strong sales and cost savings.
     It survived the impact of SARS in the first half of 2003 and ended the year exceeding the profit growth guidance it gave to analysts.
     Jollibee officials said the bird flu has not affected sales so far.
     "The results and the outlook are positive, but investors are still wary of the bird flu and its impact on Jollibee sales," DA Market Securities president Nestor Aguila said.
     Net profit in the fourth quarter came in at 346 mln pesos, up 27.1 pct year-on-year.
     Jollibee expects its 2004 net profit to rise 10-15 pct year-on-year, with system-wide sales seen sustaining growth at the 2003 level of 7.9 pct.
     These forecasts do not take into account benefits that the company will make from its acquisition of the Yonghe King fast-food business in China.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

Philippines presidential front-runner asks for calm over court case

     MANILA (AFX-ASIA) - Philippines presidential front-runner Fernando Poe Jr asked his supporters today to respect the law as the Supreme Court prepares to hear a case that may lead to his being barred from the May election.
     Some of the movie star-turned politician's supporters earlier warned of "people power" protests, while his friend and fellow movie star, deposed former president Joseph Estrada, spoke of "civil war" if Poe is barred from running.
     "I would like to make an appeal to the supporters of FPJ (Fernando Poe Jr) to remain calm and steadfast," Poe spokesman Francis Escudero said on nationwide television.
     "Have faith and belief in our justice system, as well as the magistrates of the Supreme Court, that justice will be served and the truth will be the basis of whatever decision that will be made," he added.
     The court is to hear tomorrow two suits seeking to have Poe excluded from the May 10 election on citizenship grounds. The petitions allege that the 64-year-old political newcomer is an American citizen and not a Filipino.
     Press reports said today that Poe supporters plan to set up a "human chain" of protesters from a northern Manila roundabout to the Supreme Court building downtown on the same day to put pressure on the judiciary to rule in his favor.
     President Gloria Arroyo, trailing Poe in opinion surveys three months before the balloting, has appealed to her rival's spokesmen not to take the law into their own hands if he suffers a judicial setback in his quest for the presidency.
     Tens of thousands of Estrada supporters laid siege on the Malacanang presidential palace on May 1, 2001, shortly after a popular revolt eased him from power and caused his arrest for alleged corruption.
     Arroyo was forced to call in the army to stop the rioting that claimed three lives.

Philippines' PLDT 2003 net profit 10.5-10.9 bln pesos - company official

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) will likely announce tomorrow net profit of 10.5-10.9 bln pesos in 2003, a company official said, citing preliminary figures.
     The official said the results were still being audited.
     Analysts polled by AFX-Asia expect PLDT's 2003 net profit at 9.0-13.0 bln pesos, boosted by the robust performance of its wireless unit Smart Communications Inc.
     PLDT had expected its 2003 net profit to come in at 9.0-10.0 bln pesos after provisions.
     At 10.06 am, PLDT was top-traded and up 5.00 pesos at 935 on 17,430 shares.
     (1 usd = 56 pesos)
     afxmanila@afxasia.com

Forex - Philippine peso firmer on weak US dollar, easing political tension

     MANILA (AFX-ASIA) - The peso was slightly firmer in early morning trade on the back of a weak US dollar and "easing" tension on the political front, dealers said.
     At 9.45 am, the peso has averaged 56.011 versus the greenback after trading between 55.98-56.03 on volume of 31 mln usd so far. It closed at 56. 02 yesterday after hitting an intra-day low of 56.17.
     Dealers said the market was also wary of a possible intervention by the central bank, which was seen in the spot market defending the peso yesterday.
     Central bank governor Rafael Buenaventura, in an interview yesterday, attributed the peso's intra-day recovery to higher dollar inflows. Some remittances were being liquidated after dollar holders saw corporates buying dollars at a higher rate, he said.
     "The possibility of a widespread protest should Fernando Poe Jr be disqualified has somewhat eased," a dealer with a local bank said.
     Presidential front-runner Poe dispelled fears of violent protests on Monday, saying that he would not contest the Supreme Court if it disqualified him from the May 10 election on citizenship grounds. Members of his camp had earlier warned of civil unrest if Poe, 64, a hugely popular movie action star is disqualified from the presidential race, where incumbent Gloria Arroyo is seeking a second term. The Supreme Court is to hear tomorrow two cases seeking to disqualify Poe -- son of an American mother and Filipino father -- on the grounds that he is an American and not a natural-born Filipino citizen.
     Another dealer said yesterday's unveiling of Poe's team of economic advisers may have somewhat allayed investor concerns over his inexperience in government service. The 19-strong, pro-market team of economic, governance, law, international relations and education experts would help draft Poe's policies should he win.
     The peso is seen trading within a narrow range of 55.95-56.10 versus the US dollar.
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' Jollibee firmer on improved 2003 results, outlook

     MANILA (AFX-ASIA) - Jollibee Foods Corp was firmer early in thin trade after announcing a 21 pct rise in its 2003 net profit and forecasting further growth of 10-15 pct this year, dealers said.
     Jollibee was up 0.25 peso at 19.75 on volume of 48,900 shares.
     The country's largest fast-food chain operator announced yesterday, after the market closed, that its net profit rose to 1.256 bln pesos in 2003, from the previous year's 1.039 bln, on strong sales and cost savings.
     It survived the impact of SARS in the first half of 2003 and ended the year exceeding the profit growth guidance it gave to analysts.
     Net profit in the fourth quarter came in at 346 mln pesos, up 27.1 pct year-on-year.
     Jollibee expects its 2004 net profit to rise 10-15 pct year-on-year, with system-wide sales seen sustaining growth at the 2003 level of 7.9 pct.
     These forecasts do not take into account benefits that the company will make from its acquisition of the Yonghe King fast-food business in China.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

STOCK ALERT - Philippines' PLDT, affiliate Piltel firmer ahead of 2003 results

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) and affiliate Pilipino Telephone Corp (Piltel) extended gains in early trade ahead of the release of their 2003 results, dealers said.
     PLDT, which will announce its results tomorrow, was up 10.00 pesos at 940. 00 on volume of 5,230 shares. Its American Depositary Receipts gained 0.05 usd to 17.02 in New York overnight.
     Piltel, in which PLDT has a significant stake, rose 0.02 to 1.78 on 5.90 mln shares. It normally releases its results on the same day as PLDT.
     PLDT sources said the company may have booked net profit of close to 11 bln pesos for 2003, citing preliminary figures as auditing has yet to be completed.
     Analysts AFX-Asia polled expect PLDT's 2003 net profit to come in at 9. 0-13.0 bln pesos on the sustained robust performance of its wireless unit Smart Communications Inc.
     PLDT's projection for its 2003 net profit is 9.0-10.0 bln pesos after provisions.
     Piltel, on the other hand, expects to return to profitability this year, also on wireless gains.
     It sees a net profit of 402.4 mln pesos this year, after a projected net loss of 3.33 bln in 2003, substantially lower than the previous year's loss of 21.8 bln.
     Ron Rodrigo, a research consultant at Accord Capital Equities, said investors are awaiting verification of persistent talk of a merger between Piltel and Smart from officials of PLDT during tomorrow's briefing on the 2003 results.
     Investors have been buying up Piltel on the merger speculation, which is reportedly intended to facilitate Smart's backdoor listing.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

Philippines' Pryce Gases to hike capital to implement rehabilitation plan

     MANILA (AFX-ASIA) - Pryce Corp said unit Pryce Gases Inc will increase its authorized capital to 4.0 bln pesos from 400 mln to implement its court-approved rehabilitation plan.
     The plan calls for the parent to offer its real estate assets as partial payment for the unit's loan obligations.
     The capital hike involves 4.0 bln shares at 1.00 peso par value.
     No other details were made available in Pryce Corp's disclosure to the stock exchange.
     (1 usd = 56 pesos)
     edelacruz@afxasia.com

Philippines appoints Figueroa new national treasurer

     MANILA (AFX-ASIA) - President Gloria Arroyo has appointed Mina Figueroa, who was deputy treasurer at the Bureau of Treasury, as the new national treasurer, replacing Sergio Edeza.
     Edeza has been appointed president of the Philippine Export-Import Bank.
     Figueroa will be responsible for the government's funding requirements.
     edelacruz@afxasia.com