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Wednesday, January 07, 2004
Philippines end-2003 forex reserves 16.815
bln usd vs 16.826 bln in Nov
Philippine stock exchange suspends Fil-Hispano
shares on takeover
SARS Philippines sounds all clear on SARS
scare
Communist rebels back opposition
Philippine vice-presidential candidate
Philippines' BIR exceeds December/2003
revenue collection goals - Parayno
Manila shares close lower, led by PLDT,
on profit-taking
Philippine Meralco, First Gas new supply
deal to save users 10.6 bln pesos
STOCK ALERT - Philippines' PLDT, Globe
weaker late morning on profit-taking
STOCK ALERT - Philippines' Equitable PCI
firmer on speculative play
STOCKWATCH - Philippines' Jollibee firmer
on earnings outlook, new commissary
Philippine Universal Robina to acquire
remaining 50 pct of unit
Philippines' Music asked by New Jersey law
firm to pay 153,000 usd in fees
STOCK ALERT - Philippines' Jollibee firmer
on earnings outlook, new commissary
Philippines' Fortune Cement returns to
positive equity position
Philippine SEC approves SPI Technologies'
change of business purpose - PSE
Philippines' Jollibee to open new 1.5-bln
peso commissary this month
Philippines' Meralco to seek rollover for
5.3 bln pesos debt - report
Tuesday, January 06, 2004
SARS - Philippines suspected case recovering, but dozens quarantined
Taiwan tries to allay international concerns over referendum plan
Philippine Treasury raises 3.83 bln pesos in four-year T-bonds
Philippine central bank to keep policy interest rates steady - Tetangco
ROUNDUP - Philippine CPI seen up in 2004 but interest rate outlook mixed
Forex - Philippine peso sustains gains on weaker US dollar, residual
inflows
Philippine vehicle sales seen up 10 pct yr-on-yr in 2004 - CAMPI
ROUNDUP - Philippine Nov exports down on competition from China, Malaysia
Philippines 2003 budget deficit at 198.7 bln pesos vs 202 bln
ceiling-Amatong
Philippines' Aboitiz Equity Ventures sells stake in container firm
Philippine PLDT unit Smart says not in talks to acquire GMA 7
Manila shares close up on telecom gains; key index at new 33-mth high
STOCK ALERT - Philippines' Meralco shares extend gains on rate hike
STOCK ALERT - Philippines' Globe Telecom extends gain on earnings
prospects
DATAWATCH - Domestic uncertainty hurts Philippine merchandise exports - GK
Goh
STOCK ALERT - Philippines' PLDT extends rally on earnings prospects, GMA
bid
DATAWATCH-Philippine 2004 CPI seen up but monetary policy likely stable-GK
Goh
Philippines December CPI up 3.1 pct yr-on-yr; 2003 CPI up 3.1 pct yr/yr
Philippines Nov merchandise exports down 4.9 pct yr-on-yr
| Philippines end-2003 forex reserves 16.815 bln usd vs 16.826 bln in Nov |
MANILA (AFX-ASIA) - The country's gross international reserves (GIR) stood at 16.815 bln usd as at end-2003, slightly lower than the 16.826 bln usd registered in November, the central bank said. No other details were provided. Earlier, central bank governor Rafael Buenaventura said the GIR level is expected to settle above 16 bln usd by the end of 2003, boosted by fresh inflows after the government moved to pre-fund its 2004 budget requirements and a revaluation of gold. The end-November GIR figure of 16.826 bln usd compared with 16.877 bln at end-October. (1 usd = 55.128 pesos) afxmanila@afxasia.com |
| Philippine stock exchange suspends Fil-Hispano shares on takeover |
MANILA (AFX-ASIA) - The Philippine Stock Exchange said it has suspended trading in the shares of Fil-Hispano Holdings Corp effective today pending the submission of additional information on the company's planned acquisition of a call center business. Fil-Hispano earlier reported that its board of directors had approved the acquisition of All Asia Customer Service Holdings Ltd's (ASCH) local call center business in exchange for ACSH's controlling interest in Fil-Hispano. ACSH is a limited liability company organized in Hong Kong. Wholly-owned and Philippine-registered unit All Asia Customer Service Inc (ACSI) operates its call center business. Fil-Hispano's board also approved an increase in its authorized capital to 600 mln pesos from 60 mln to enable it to acquire ACSI. ACSH Ltd will subscribe to the shares at nominal value. (1 usd = 55.128 pesos) cecille.yap@afxasia.com |
| SARS Philippines sounds all clear on SARS scare |
MANILA (AFX-ASIA) - A woman hospitalized in the Philippines for suspected SARS has been declared free of the pneumonia-like disease following tests carried out here, Health Secretary Manuel Dayrit said. "We are declaring her a case of bacterial pneumonia, not a SARS case," Dayrit told a news conference. The 42 year-old woman, who works as a domestic helper in Hong Kong, had fallen ill during a Christmas home leave. It sparked a health scare that caused the health department to quarantine more than three dozen people who had contact with the unidentified patient. |
| Communist rebels back opposition Philippine vice-presidential candidate |
MANILA (AFX-ASIA) - Communist rebels in the Philippines gave their surprise backing today to opposition vice-presidential candidate Loren Legarda, saying her victory in the May elections will boost peace talks with the government. Legarda, a popular senator and former television broadcaster, is on the ticket of presidential front runner Fernando Poe, a movie star challenging incumbent leader Gloria Arroyo in the May 10 polls. Jose Maria Sison, the exiled founder of the insurgent Communist Party of the Philippines (CPP), said Legarda would "deserve to become the vice president" due to her "ardent advocacy of national independence, civil liberties, development, social justice, healthy environment and just peace." In a statement to news agencies from his base in the Netherlands, Sison said: "I believe that if you became the vice president you would be in a better position to take initiatives in pushing the (government-rebel) peace negotiations forward to the goal of a just and lasting peace." The CPP has rejected elections as a route to seizing power, and the military say the CPP's 8,300-member New People's Army, waging a 35-year Maoist guerrilla campaign, extorts money from politicians campaigning in the rebels' zone of operations. Sison did not say if Legarda will be exempt from the "permit to campaign" toll charged by rebel units. She had negotiated the release of several soldiers and policemen kidnapped by the guerrillas in the past. President Arroyo called off peace talks with the CPP after the rebels assassinated several politicians. However, the two sides declared a Christmas truce last month and the government has been sounding out rebel leaders over the idea of restarting peace negotiations. |
| Philippines' BIR exceeds December/2003 revenue collection goals - Parayno |
MANILA (AFX-ASIA) - The Bureau of Internal Revenue exceeded its collection target for December, also allowing it to meet the level it set for 2003, said commissioner Guillermo Parayno. Citing preliminary reports, Parayno said collection for December came in at 35.68 bln pesos, surpassing the 34.55-bln target. Collections for the full-year amounted to 424.27 bln pesos, slightly higher than the target of 424.01 bln pesos. Finance Secretary Juanita Amatong earlier said the Philippines registered a 2003 budget deficit of 198.7 bln pesos, lower than the government's ceiling of 202 bln pesos, on the back of better-than-expected revenue. The Bureau of Customs also reported exceeding its collection targets for December and full-year 2003. (1 usd = 55.128 pesos) cecille.yap@afxasia.com |
| Manila shares close lower, led by PLDT, on profit-taking |
MANILA (AFX-ASIA) - Share prices closed lower in a mixed session led by Philippine Long Distance Telephone Co (PLDT), with the market ending a strong two-day rally as investors began to lock in gains, dealers said. They, however, said a correction at this point is healthy for the market. The composite index closed down 16.65 points, or 1.09 pct, at 1,516.09 on volume of 409.6 mln shares valued at 959.2 mln pesos. It traded between 1,512. 38 and 1,549.60. In the broader market, gainers slightly led losers 26 to 25, while 44 stocks were unchanged. Dealers said the market is likely to consolidate in the coming sessions. But they said the positive sentiment over economic prospects this year should help maintain the upbeat mood for the medium to long term, even as pre-election political uncertainties remain. "It's not surprising to see the market take a breather after strong gains in the last couple of days. It's a very healthy correction," said Andrew Long, head of research at ATR-Kim Eng Securities. He sees the market's immediate support at 1,500. Top-traded PLDT was down 35 pesos at 995 on 218,780 shares, pulling back from extended gains in early trade on expectations of continued strong earnings this year. PLDT rival Globe Telecom fell 15 to 990 on 52,570 shares after gaining a hefty 95 pesos to 1,005 yesterday, also on its positive earnings outlook. Manila Electric's B shares, available to foreign investors, was up 0.50 at 27 on 7.05 mln shares, while Meralco A rose 0.25 to 16.75 on 1.2 mln shares. Meralco, which has been given provisional approval by the Energy Regulatory Commision to raise power rates by 0.12 pesos per kilowatthour effective Jan 1, said it has renegotiated its power supply contract with affiliate First Gas Power Corp. The new deal will bring immediate savings of 10.6 bln pesos to its 4 mln customers, Meralco said. First Philippine Holdings Corp, parent of both Meralco and First Gas, was unchanged at 20.50. Jollibee Foods was up 1.25 at 21.50, off highs, on 1.05 mln shares on expectations of an earnings boost from increased consumer spending during the Christmas and New Year holidays and the election season. News that the country's largest fast food chain operation will finally open its new 1.5-bln peso commissary in Canlubang, Laguna this month also boosted buying interest in the stock, they said. Ayala Corp fell 0.10 to 5.50, while unit Ayala Land was down 0.10 to 6.10 on 7.6 mln shares. Equitable PCI Bank was up 0.50 at 40 on expectations Banco de Oro Universal Bank may acquire an additional stake in the country's third-largest lender. Buying interest in Equitable PCI was further fuelled by state-run Government Service Insurance System's proposition that it will only sell its 12.5 pct stake in the bank if it is offered 90 pesos per share, which is its acquisition price. Banco de Oro was down 0.50 at 18. The all-shares index was down 8.18 points at 899.89. The commercial-industrial index fell 23.96 to 2,299.46. Property dropped 4.04 to 587.37, while mining fell 12.15 to 1,720.70. Oil was up 0.05 at 1.28. Banking and financial services shed 3.74 to 465.53. (1 usd = 55.128 pesos) edelacruz@afxasia.com |
| Philippine Meralco, First Gas new supply deal to save users 10.6 bln pesos |
MANILA (AFX-ASIA) - Manila Electric Co said it has renegotiated its power supply contract with affiliate First Gas Power Corp and the new deal will bring immediate savings of 10.6 bln pesos to its 4 mln customers. The renegotiated deal resulted in a package of concessions worth up to 30 bln pesos between the two power firms, Meralco said in a disclosure to the stock exchange. Meralco director and Landbank president Gary Teves said First Gas granted many major concessions in the renegotiated agreement that directly benefit consumers through the offer of "added savings under every scenario." Teves headed Meralco's IPP (independent power producers) review committee, which held the talks with First Gas. Meralco's customers will begin to enjoy lower electricity rates as soon as the Energy Regulatory Commission (ERC) approves the renegotiated deal. Meralco sources a major portion of its electricity supply from First Gas, which is a joint venture between First Philippine Holdings Corp, British Gas and the Meralco Pension Fund. First Gas operates two gas-fired power plants in the province of Batangas and Meralco and Napocor are its major clients. Teves said "concessions with immediate value" include First Gas shouldering the local business and community taxes, while others include higher discounts on electricity rates, bigger penalties for non-performance, and not charging Meralco for energy delivered beyond the contracted amount until 2011. "It was the spirit of cooperation, partnership and service to the consumers that made the compromise possible," First Gas Vice chairman and chief executive officer Peter Garrucho said. (1 usd = 55.10 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' PLDT, Globe weaker late morning on profit-taking |
MANILA (AFX-ASIA) - Share prices of Philippine Long Distance Telephone and Globe Telecom were weaker in late morning trade as investors began to lock in gains, dealers said. PLDT was down 10 pesos at 1,020 on 130,950 shares, pulling back from extended gains in early trade on expectations of continued strong earnings this year. Globe Telecom fell 25 to 980 on 35,800 shares after gaining a hefty 95 pesos to 1,005 yesterday, also on its positive earnings outlook. (1 usd = 55.12 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Equitable PCI firmer on speculative play |
MANILA (AFX-ASIA) - Equitable PCI Bank shares were firmer in mid-morning trade on expectations Banco de Oro Universal Bank (BDO) may acquire an additional stake in the country's third largest lender, dealers said. Buying interest in Equitable PCI was further fuelled by Government Service Insurance System's (GSIS) proposition that it would only sell its 12. 5 pct stake in the bank if it is offered a price of 90 pesos, which is its acquisition price. "There's a seller at 90 pesos, so there's incentive to window-dress the stock," an analyst who requested anonymity said. Equitable PCI was up 1.00 peso at 40.50 on 284,500 shares. BDO last week signed a letter of intent to buy the 29-pct stake held by the state-run pension fund Social Security System (SSS) in Equitable PCI for 14 bln pesos. BDO, which is controlled by shopping mall tycoon Henry Sy Sr, will pay SSS 43.50 pesos per Equitable PCI share, 30 pct higher than its 2003 closing price of 33.50 on the stock market. Under the letter of intent, the purchase price may be adjusted upwards if the BDO Group acquires additional blocks of shares of Equitable PCI through a negotiated purchase within six months at a price higher than the agreed effective price. The Sy group is expected to become the single biggest shareholder of Equitable PCI following the deal, while the Go family, which founded the bank, will have a 24 pct stake. (1 usd = 55.105 pesos) cecille.yap@afxasia.com |
| STOCKWATCH - Philippines' Jollibee firmer on earnings outlook, new commissary |
MANILA (AFX-ASIA) - Jollibee Foods shares were firmer in early trade on expectations of an earnings boost from increased consumer spending during the Christmas and New Year holidays and the election season, dealers said. At 10.17 am, Jollibee was up 2.75 pesos or 13.58 pct at 23 on 419,800 shares. The composite index rose 11.67 points or 0.76 pct to 1,544.41. News that the country's largest fast-food chain operator will finally open its new 1.5-bln peso commissary in Carmelray Industrial Park in Canlubang, Laguna this month also boosted buying interest in the stock, dealers said. "Investors may be positioning in anticipation of improved earnings for Jollibee in the last quarter of last year and during the election season," Westlink Global Equities chairman Rommel Macapagal said. The Philippines will hold national and local elections in May. "The new commissary will allow Jollibee to consolidate its resources," Macapagal added. Jollibee's new manufacturing and logistics complex will help its supply chain in support of its expansion program. Construction of the plant began in 2001. "This new commissary, built through an investment of 1.5 bln pesos, will open doors to many economic opportunities for Filipinos and strengthen Jollibee's role as an industry leader and source of pride for the Philippines, " said Belen Rillo, Jollibee vice president for commissary. (1 usd = 55.11 pesos) edelacruz@afxasia.com |
| Philippine Universal Robina to acquire remaining 50 pct of unit |
MANILA (AFX-ASIA) - Universal Robina Corp, the food and beverage unit of the Gokongwei group's JG Summit Holdings, is set to acquire the remaining half of Joyco Universal Robina Corp (JURC). In a disclosure to the stock exchange, the company said it has finalized the terms and conditions in relation to its acquisition of the shares of stocks owned by Joyco Espana SA Sociedad Unipersonal (Joyco Espana) in JURC. JURC is a joint venture formed by the Gokongwei group and the Spanish firm. After the acquisition, JURC shall be wholly owned by Universal Robina. No further details were provided. At 10.08 am, Universal Robina was up 0.40 pesos at 5.80 on 112,000 shares. (1 usd = 55.105 pesos) cecille.yap@afxasia.com |
| Philippines' Music asked by New Jersey law firm to pay 153,000 usd in fees |
MANILA (AFX-ASIA) - A New Jersey law firm has asked semiconductor manufacturer Music Corp to pay it 153,000 usd in alleged unpaid legal fees, Music's legal counsel said. In a disclosure to the stock exchange, Soo Guitierrez Leogrado & Lee law office said Music has received a summons in a civil action for the collection of the alleged unpaid legal fees. It has 35 days to submit its reply. Music's legal counsel said the company disputes the claim for being erroneous. It said Music's management believes the amount due to the complainant is much less than that claimed. "In any event, Music has fully reserved the amount of the claim; thus, in the unlikely event that plaintiff's claim is upheld, the award will not affect the profit and loss position of Music," the company's legal counsel said. At 9.52 am, Music was untraded after its previous close of 0.36 pesos. (1 usd = 55.11 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Jollibee firmer on earnings outlook, new commissary |
MANILA (AFX-ASIA) - Jollibee Foods shares were firmer in early trade on expectations of an earnings boost from increased consumer spending during the Christmas and New Year holidays and the election season, dealers said. Jollibee was up 2.25 pesos at 22.50 on 199,300 shares. News that the country's largest fastfood chain operation will finally open its new 1.5-bln peso commissary in Canlubang, Laguna this month also boosted buying interest in the stock, they said. (1 usd = 55.11 pesos) edelacruz@afxasia.com |
| Philippines' Fortune Cement returns to positive equity position |
MANILA (AFX-ASIA) - Fortune Cement Corp said it expects to have returned to a positive equity position as of December 31, 2003 after having settled convertible loan notes it issued on July 1, 1998 and February 19, 1999. Fortune Cement told the stock exchange that it would have improved equity position from a negative 494.67 mln pesos as of end-2002 by 2.91 bln pesos, representing the amount of convertible loan notes that were converted into common shares of the company. The company said this development does not take into consideration its positive operating results, together with that of its subsidiary Premier Cement Corp for 2003. On Nov 11 last year, the Fortune Cement board of directors approved the issuance of 193.91 mln common shares out of its unissued capital stock to Republic Cement Corp, the holder of the convertible loan note issued by Fortune Cement on July 1, 1998. A month later, the board approved the payment - by conversion into common shares - of the principal amount of 475 mln pesos, including accrued interest, of the convertible loan note issued on February 19, 1999 and the settlement of 2.125 bln pesos representing the balance of the principal amount of the convertible loan note. The conversion price was pegged at 3.00 pesos per common share, to be issued out of the company's unissued capital stock. (1 usd = 55.11 pesos) edelacruz@afxasia.com |
| Philippine SEC approves SPI Technologies' change of business purpose - PSE |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has approved an amendment to SPI Technologies Inc's articles of incorporation revising its primary business purpose to a holding firm from a manufacturing company, the stock exchange said. Control of SPI Technologies was supposed to be acquired by PPM Ventures Ltd, which is owned by Britain's Prudential plc, but the parties failed to reach an agreement on principal terms and conditions of a tender offer. edelacruz@afxasia.com |
| Philippines' Jollibee to open new 1.5-bln peso commissary this month |
MANILA (AFX-ASIA) - Jollibee Foods Corp said it will inaugurate its biggest and most modern commissary in Carmelray Industrial Park in Canlubang, Laguna on Jan 12. In support of its expansion program, the country's largest fastfood chain operator decided to further enhance its supply chain by constructing a new manufacturing and logistics complex. Construction of the plant began in 2001. "This new commissary, built through an investment of 1.5 bln pesos, will open doors to many economic opportunities for Filipinos and strengthen Jollibee's role as an industry leader and source of pride for the Philippines, " said Belen Rillo, Jollibee vice president for commissary. President Gloria Arroyo will be the guest of honor at the inauguration ceremonies. (1 usd - 55.11 pesos) edelacruz@afxasia.com |
| Philippines' Meralco to seek rollover for 5.3 bln pesos debt - report |
MANILA (AFX-ASIA) - Manila Electric Co (Meralco) is in talks with creditors to extend payment for maturing loans of close to 5.3 bln pesos by another six months, the Philippine Daily Inquirer reported, citing company president Jesus Francisco. The short-term loans are falling due this month. The company was already granted a 6-month extension in July 2003. Francisco, however, said Meralco may also make a partial payment on the loans. "We hope this would be minimal," he said. The country's biggest power retailer, whose franchise covers metropolitan Manila, is also seeking to convert the loan maturity to long-term, he said. But this may not be allowed by creditors until Meralco is able to float bonds, Francisco added. Meralco was considering a 200-mln usd bond issue as an option to raise its financing requirements. (1 usd = 55.11 pesos) edelacruz@afxasia.com |
| SARS - Philippines suspected case recovering, but dozens quarantined |
MANILA (AFX-ASIA) - The Philippines has ordered people who had come into contact with a suspected SARS patient, a Filipina maid from Hong Kong, to be placed in quarantine as the World Health Organization suggested the health scare could be a false alarm. President Gloria Arroyo stressed that no case of SARS has been confirmed yet, adding that authorities will be able to cope if a new outbreak emerges. "We have no confirmation yet and the public must not be alarmed. We have prepared for this over an extended period and we have learned our lessons well," Arroyo said in a statement. The 42-year-old domestic helper, who came down with SARS-like symptoms during Christmas home leave, "has no more fever, a significant sign that she is on the road to recovery," Health Secretary Manuel Dayrit said. However, 38 other people who have had contact with the maid are now in quarantine as a precaution, Dayrit said in a written statement. They include her husband, the couple's three children, her doctor, hospital contacts and members of her local community. The WHO Western Pacific office here said, however, it believes the case is unlikely to be SARS. The WHO representative in the Philippines, physician Jean-Marc Olive, "doesn't think it's a SARS case," said Peter Cordingley, a spokesman for the UN agency. "Hong Kong, in particular, has had a lot of cases of atypical pneumonia already this winter. Each one set off talks of SARS, but not one of them proved to be the case," Cordingley told Agence France Presse. "I think it's something Southeast Asia would have to get used to," he added. The Filipino consulate in Hong Kong and health authorities there have "started contact-tracing people (the woman) may have been in contact with" in the territory before she returned to the Philippines, Dayrit said. Those quarantined in the Philippines are all receiving counselling and have not developed any symptoms, Dayrit said. Dario Magiba, health officer of Laguna province, said those quarantined included staff of a Laguna hospital, where the woman first sought treatment. Their isolation will last 14 days. The hospital is being disinfected and continues to accept patients, he added. Personnel were equipped with protective equipment including facial masks, gowns, caps and shoe covers. The domestic worker and her husband have been isolated at a special hospital unit after both showed symptoms associated with SARS, although only the woman has been treated as a suspected SARS case. She had shown signs of pneumonia and had breathing difficulties, while her husband now has no fever, Dayrit said. Luningning Villa, for the health department's infectious disease unit, said full tests on the couple will not be completed until late Wednesday. The scare in the Philippines came after a new case of the disease was confirmed Monday in southern China, where the illness first emerged early last year before going on to kill 800 people in Hong Kong, China and other areas. The domestic worker first became ill on December 24 and well-wishers visited at home. She then went to the provincial hospital where she was treated with antibiotics, but did not improve, Villa said. On January 4, she was quarantined at Manila's Research Institute for Tropical Medicine. The Philippine government last year reported 12 SARS cases, including two deaths, but later declared that it had eradicated the disease locally. |
| Taiwan tries to allay international concerns over referendum plan |
TAIPEI (AFX-ASIA) - Taiwan is to send delegations to the United States, Japan and the European Union in an effort to ease concerns about President Chen Shui-bian's controversial referendum plans, officials said. The National Security Council and members of the delegations held closed-door discussions in the Presidential Office at noon, they said. "We will meet with scholars, congressmen and reporters while traveling to the United States in the middle of this month ... to make them aware Taiwan has no intention of changing the status quo," said Joseph Wu, deputy secretary-general to the Presidential Office and the head of the delegation. Chiou I-jen, the secretary-general of the presidential Office, admitted Taipei has yet to convince Washington over its long-term policy beyond the March 20 referendum, which has infuriated China. Chiou told reporters from the Taipei Foreign Correspondents Club that although the United States understands the terms of Chen's referendum, which will demand China dismantle hundreds of missiles targeting the island, Washington remains concerned over future action by Taiwan. China, regards Taiwan as a part of its territory and has threatened to invade the island if it ever declares formal independence. Beijing believes Chen's referendum could pave the way for an independence vote, although Taiwan has emphasised it has no plans to upset the present status quo. Chiou said the draft of the referendum plan will be unveiled by the end of this month and the final version by the end of February. One version of the referendum plan is to ask China to remove hundreds of ballistic missiles targeting the island while the second is to demand China renounce its use of force against Taiwan. US President George W. Bush gave a stinging rebuke to Chen's plan last year, warning that Washington was opposed to any move which affected the present status quo. Both Japan and the European Union had also added pressure on Taipei by voicing their concerns to Taipei. China, which regards Taiwan as a renegade province to be re-unified with the mainland by force if necessary, sees the referendum as the latest stage of an independence drive by Taiwanese authorities. |
| Philippine Treasury raises 3.83 bln pesos in four-year T-bonds |
MANILA (AFX-ASIA) - The Bureau of Treasury raised 3.83 bln pesos from the sale of four-year Treasury bonds, with the coupon rate set at 10.5 pct. Tenders totaled 5.855 bln pesos against an offering of 4.5 bln pesos. The average rate stood at 10.355 pct. (1 usd = 55.11 pesos) afxmanila@afxasia.com |
| Philippine central bank to keep policy interest rates steady - Tetangco |
MANILA (AFX-ASIA) - The central bank can afford to keep its policy interest rates steady for now as the inflation environment remains "consistent" with its current policy, central bank deputy governor Amando Tetangco Jr said. The central bank is sticking to its 2004 inflation rate target of 4.0-5.0 pct even if the average rate of 3.1 pct in 2003 was well below the government goal of 4.5-5.5 pct, he added. "We are keeping our 4.0-5.0 pct target because we see possible pressures on the cost side," he told reporters, citing likely increases in utility and tariff rates, as well as wages. Nevertheless, he said the expected inflation environment this year is "consistent with the maintenance of the monetary policy at this point." The central bank's policy rates currently stand at 6.75 pct for overnight borrowing and 9.00 pct for overnight lending. afxmanila@afxasia.com |
| ROUNDUP - Philippine CPI seen up in 2004 but interest rate outlook mixed |
MANILA (AFX-ASIA) - Inflationary pressures in the Philippines are seen building up further this year due to an expected pick-up in global demand, an increase in fuel prices combined with a weakening of the peso, and rising spending during the election season, economists said. But their outlook on the direction of local interest rates seems to be mixed, with one expecting the central bank not to tighten its monetary policy given the uneven economic recovery so far. Other economists, however, said the central bank may be forced to tighten liquidity should there be another episode of speculative attacks on the peso in the run-up to the May elections. GK Goh Securities regional economist Song Seng Wun believes that, despite the expected build-up in inflationary pressures this year, the overall inflation environment is likely to remain manageable, like last year. Inflation averaged 3.1 pct in 2003, after registering a 3.1 pct year-on-year rise in December, the National Statistics Office said today. Last year's average inflation rate came in within the 3.0-3.5 pct range projected by economists polled by AFX-Asia, and below the government's full-year target range of 4.5-5.5 pct. The December rate was, however, slower than the 3.2-3.3 pct economists had projected, and the 3.3 pct rise registered in November. Month-on-month, prices in December rose an average 0.3 pct compared with the 0.2 pct rise in the previous month, the NSO said. "Despite the uncertainties last year, food prices were largely stable. Going forward, however, I think we can see the combined impact of a weaker peso, higher fuel prices, increased global demand and election-related spending," Song said. Filipinos will elect a president, vice president, a dozen senators, congressmen, governors, mayors and councilors in May. Song expects inflation this year to average 3.6 pct, still below the government's 4.0-5.0 pct target. He said the central bank is expected to keep its key interest rates stable this year. "A 4-5 pct inflation rate is within control so the central bank is likely to keep interest rates stable for the most part of 2004," he said. "We saw an uneven economic recovery in 2003, with the manufacturing sector still weak, so I guess the central bank is unlikely to tighten its policy. Not at this point." AB Capital Securities research director Jose Vistan Jr said he is looking at a 5.0 pct inflation rate for 2004, which is "still tolerable". He noted that demand in 2003 "was not as strong to the point that there wasn't enough pressure to push prices (higher)." However Wong Chee Seng, an economist with DBS Bank in Singapore, said that while the central bank prefers to stick to a stable monetary policy environment, "the risk profile for rising interest rates is certainly worsening. "Market appetite is clearly biased for higher compensation, as local corporates take refuge in the forward foreign exchange market," he said. "Banks seem willing to place excess funds for shorter tenor, on expectation of a rising interest rate scenario in the second half of 2004." Wong said he would not discount the possibility of further capital control measures to be taken by the monetary authorities "with an aim to squeeze liquidity (especially) if the currency is subjected to another speculative attack in coming months." Domestic political and security concerns pulled down the peso to its historically weakest level of 55.85 to the US dollar in November last year. Although the peso has regained lost ground, thanks to a generally weak dollar, currency traders are still not ruling out a weakening trend due to political uncertainties that are expected to build up ahead of the May polls. At the Philippine Dealing System today, the peso closed at 55.110 to the dollar versus yesterday's close of 55.265. The central bank's policy interest rates have been kept steady at 6.75 pct for overnight borrowing and 9.00 pct for overnight lending. afxmanila@afxasia.com |
| Forex - Philippine peso sustains gains on weaker US dollar, residual inflows |
MANILA (AFX-ASIA) - The peso sustained further gains for the second day as the US dollar weakened across-the-board, while residual inflows from Filipinos working overseas continue to provide the market with additional dollar liquidity, dealers said. The peso closed at 55.110 after trading between 55.06-55.25 on volume of 169 mln usd. It closed at 55.265 yesterday. Dealers said there was no huge demand for the US dollar after most corporates had already hedged their dollar requirements before 2003 ended. The supply of dollars, meanwhile, remains abundant on additional remittances from overseas Filipino workers. "Companies would rather (have) fixed their costs early, rather than surprise themselves especially as the election draws near," a local bank dealer said. The peso is seen to trade between 55.00-55.25 tomorrow, with bias still on a stronger local currency as sentiment on the US dollar remains bearish, dealers said. cecille.yap@afxasia.com |
| Philippine vehicle sales seen up 10 pct yr-on-yr in 2004 - CAMPI |
MANILA (AFX-ASIA) - Vehicle sales in the country will likely post 10 pct growth in 2004 compared to last year, on expectations of an economic recovery and following the recent passage of a new excise tax law on vehicles, the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) said. CAMPI vice-president Elizabeth Lee said 2004 sales are expected to reach 100,000 units from around 91,000 units in 2003. The official 2003 figure has yet to be released. Commercial vehicles will continue to dominate sales with a projected 70 pct share, while passenger vehicles will account for the remaining 30 pct, Lee said. "Better economic prospects this year and the normalization of demand following the implementation of the excise tax law will propel sales growth this year," she said. Election-related spending is also expected to stimulate demand for new vehicles in the third quarter, Lee said, adding that "a stronger second semester performance will be secured with a peaceful conduct of elections." CAMPI secretary-general Homer Maranan said sales of Asian Utility Vehicles (AUVs) are expected to fall initially due to higher tax rates. However he said there is still expected to be demand for these vehicles as cars are no substitute for the AUVs. Under the new automobile excise tax law that took effect in October, tax exemptions on vehicles with seating capacity for 10 or more people were removed to increase the tax base, while a simple value taxation structure was adopted. Prices of most vehicle types, except for AUVs, fell with the law's implementation. afxmanila@afxasia.com |
| ROUNDUP - Philippine Nov exports down on competition from China, Malaysia |
MANILA (AFX-ASIA) - Merchandise exports in November fell 4.9 pct year-on-year, after posting 6.2 pct growth in the previous month, as exports from China and Malaysia continued to fill demand in the US, which has been the Philippines' major trading partner. Economic Planning Secretary Romulo Neri admitted that the country's exports have not recovered as strongly as in other Asian countries because of the growing Chinese and Malaysian competition in US markets. Economists said domestic uncertainty over elections in May and the Philippines' failure to attract fresh investments also continue to hurt the country's exports. Neri, however, noted that significant growth in exports of non-electronic items such as processed food and beverages, machinery and transport equipment, and also of agro-based and mineral products, helped offset the sharp 10.3-pct year-on-year drop in electronics, which accounted for 68.2 pct of November's shipments. In the January to November period, exports grew a marginal 0.5 pct year-on-year to 32.441 bln usd, falling well behind the government's target of an increase of at least 5.0 pct for the full year. "With just a month to go, this development indicates that even a two pct growth for 2003 is not likely," Neri said in a statement. The National Economic and Development Authority (NEDA) was expecting a 1. 4 pct year-on-year growth in exports in 2003, based on the trend seen in the first three quarters of the year and the outlook for the last quarter. The NEDA and the central bank have both forecast 10 pct growth for exports in 2004. November's sharp decline came despite initial optimism that exports would grow at faster rates in the last two months of last year, given the expected pick-up in global demand. "The figures were quite surprising. There could either be a problem with the data handling itself or the Philippines is indeed lagging behind," said GK Goh Securities regional economist Song Seng Wun. Exports to the US, which had a 16.0 pct share of the November receipts, dropped 28.9 pct year-on-year to 473.47 mln usd. That market was the country's second biggest for the month. Japan remained the country's biggest export market in November, accounting for 20.0 pct of total shipments, with total receipts up 19.8 pct year-on-year to 493.99 mln usd. "Asian economies took up the slack in demand from the US and Europe. Japan, which is showing signs of recovery, increased its imports from the Philippines by 19.8 pct. Exports to other Asian economies also posted strong growth led by China (66.2 pct), Malaysia (3.2 pct), and Singapore (14.3 pct), " Neri said. Song said the Philippines' export performance went against the trend in countries such as Thailand and India, which both registered double-digit growth. Electronics exports elsewhere in the region also started to recover, he added. "Assuming the figures are correct, it could be due to a combination of a lack of investments and (political) uncertainty that is dampening the country's investment climate," Song said. Buyers of Philippine goods may be worried about their quality and timely delivery as the country battles various political and security concerns, ranging from last July's failed military mutiny to recent cases of kidnappings and terrorist threats. Song expects all these issues to continue to scare away potential investors as the Philippines goes through another electoral process in May to elect a president, vice president, senators and congressmen, and local government officials. If exports failed to pick up in December, Song said he intends to revise his 2004 exports growth forecast of 5-10 pct down to 4-5 pct, contrasting with the double-digit expansion projected for other Asian countries. afxmanila@afxasia.com |
| Philippines 2003 budget deficit at 198.7 bln pesos vs 202 bln ceiling-Amatong |
MANILA (AFX-ASIA) - Finance Secretary Juanita Amatong said the country registered a 2003 budget deficit of 198.7 bln pesos, lower than the 202-bln peso ceiling government had set for the year. She said the figure was preliminary, and did not provide any other details. "We settled accounts payables (in December) which we deferred, and revenues (were within target)," Amatong told reporters, confirming reports that government slightly overshot its December budget deficit target. Earlier, presidential spokesman Ignacio Bunye said the country's budget gap was expected to have settled below the ceiling on the back of higher revenues from the Bureau of Internal Revenue and the Bureau of Customs. As at end-November, the cumulative deficit stood at 172.2 bln pesos, below the 189.7-bln peso ceiling set for the period. (usd 1 = 55.19 pesos) afxmanila@afxasia.com |
| Philippines' Aboitiz Equity Ventures sells stake in container firm |
MANILA (AFX-ASIA) - Aboitiz Equity Ventures (AEV) said it has sold its 35 pct stake in Mindanao Container Corp for 26.95 mln pesos. AEV signed a deed of sale for its 50,000 shares of Mindanao Container's issued and outstanding share capital at 539 pesos each. From the total selling price of 26.95 mln pesos, AEV booked a gain of 13 mln pesos, the company told the stock exchange in a disclosure. "The sale is consistent with AEV's strategy of selling a non-core asset for value and directing the gains to core businesses to enhance the worth of AEV shares," the company said. AEV is the holding firm of the Aboitiz group, which in involved in power, transportation and banking businesses. It closed up 0.15 pesos at 3.20 on volume of 194,000 shares today. (1 usd = 55.19 pesos) cecille.yap@afxasia.com |
| Philippine PLDT unit Smart says not in talks to acquire GMA 7 |
MANILA (AFX-ASIA) - Smart Communications Inc, the wireless unit of dominant carrier Philippine Long Distance Telephone Co, said it is not in talks to acquire a majority stake in the country's second largest broadcasting firm, GMA Network Inc. "We would like to state that Smart is not engaged in any discussions with GMA 7 or with any other network for that purpose," Smart public affairs head Ramon Isberto said in a statement. A major newspaper reported today that PLDT has revived its bid to acquire a majority stake in the radio and television network. The report said PLDT will make a new offer to GMA through wireless unit Smart, which reportedly wants to close a deal before May this year. Dealers cited the report as one of several reasons for PLDT's sustained gains in the market today. PLDT was top-traded, closing up 10.00 pesos at 1,030 on volume of 658,730 shares. PLDT previously offered to acquire a majority stake in GMA Network, only to pull out of an initial agreement in 2001, purportedly due to concerns over its own finances. (1 usd = 55.19 pesos) cecille.yap@afxasia.com |
| Manila shares close up on telecom gains; key index at new 33-mth high |
MANILA (AFX-ASIA) - Share prices closed sharply higher for a second straight day as Wall Street's overnight gains helped sustain the buying momentum and take the key index to a new 33-month high, dealers said. Buying in selected blue chips continued, notably telecom stocks such as Philippine Long Distance Telephone and Globe Telecom, on the back of their projected rosy earnings performance in 2003 and 2004, they added. The composite index closed up 45.40 points, or 3.05 pct, at 1,532.74 on volume of 674.9 mln shares valued at 1.56 bln pesos. the index traded between 1,490.71 and 1,532.74 points. The close was the index's highest since March 12, 2001, when it finished the day's trade at 1,567.53. In the broader market, advancers outnumbered decliners 55 to 13, while 36 stocks were unchanged. Dealers put the strong showing today down to foreign investors remaining net buyers since yesterday. The market shrugged off news that November merchandise exports fell 4.9 pct year-on-year and also paid no heed to reemerging worries about SARS. President Gloria Arroyo stressed that no SARS case has been confirmed as yet, but the authorities have ordered people who came into contract with a suspected victim to be placed under quarantine. The 2003 average inflation rate of 3.1 pct, meanwhile, came in within expectations, and even below the 4.5-5.5 pct target of the government. "The market has broken several resistance levels, helped by an upbeat mood in the US market and gains in telecom stocks. Investors are also likely positioning themselves on expectations of another major rally, especially after the May elections," Regina Capital Development Corp analyst Gomer Tan said. "There is usually a sense of optimism after every election season, whoever wins." He noted, however, that a fresh mandate for Arroyo means continuity in economic policies and programs. But Tan expects a pull-back before the week ends as the market is due for technical correction. Top-traded PLDT rose 10 pesos to 1,030 on volume of 658,730 shares. Its New York-listed American Depositary Receipts advanced a further 0.25 usd to 18.35 overnight. Yesterday, PLDT president and chief executive officer Manuel Pangilinan said he was confident the country's dominant carrier hit, or even exceeded, its 2003 net profit target of 10 bln pesos, after provisions. PLDT's wireless business, which is under the control of unit Smart Communications Inc, is largely expected to sustain its remarkably strong earnings performance this year. Dealers said sentiment towards the stock was boosted on a newspaper report that it is renewing its bid to acquire a majority stake in radio and television network GMA Broadcasting Corp. Globe Telecom was up a hefty 95 pesos at 1,005 on 167,420 shares, this time outperforming rival PLDT, also due to the positive earnings prospects for the telecom sector. Manila Electric's B shares, available to foreign investors, rose 1.50 to 26.50 on 3.18 mln shares, while Meralco A advanced 1.00 to 16.50 on 2.29 mln shares. Meralco extended gains on a boost to sentiment from the implementation of a provisional 0.12 peso per kilowatthour rate increase effective Jan 1. The rate hike is expected to see Meralco's revenue grow some 1.9 bln pesos this year. Meralco's parent First Philippine Holdings was up 1.25 at 20.50 on 1.38 mln shares. Ayala Corp was up 0.20 at 5.60 on 19.6 mln shares and Ayala Land up 0.10 at 6.20 on 14.4 mln shares. Bank of the Philippine Islands was up 1.50 at 49 on 1.28 mln shares. Metrobank was up 0.50 at 29 on 1.8 mln shares. The all-shares index rose 15.75 points to 908.07. The commercial-industrial index was up 75.82 at 2,323.42. The property sector advanced 6.84 to 591.41, mining rose 41.56 to 1,732. 85, and oil was up 0.02 at 1.23. Banking and financial services gained 13.39 to 469.27. (1 usd = 55.20 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Meralco shares extend gains on rate hike |
MANILA (AFX-ASIA) - Manila Electric Co shares were higher in late trade on a boost to sentiment for the stocks from the implementation of a provisional 0.12 peso per kilowatthour rate increase, dealers said. The rate hike is expected to see Meralco's revenue grow some 1.9 bln pesos this year, they added Meralco B, open to foreign investors, was up 2.00 pesos at 27 on volume of 2.07 mln shares, while Meralco A was up 0.75 at 16.25 on 2.08 mln shares. Dealers said Meralco's finances should eventually get a further boost as it nears completion of its ongoing refund of overcharges to customers, which hit the company's profitability last year. Meralco, which has to refund some 30.05 bln pesos to 4 mln customers, is set to begin with the third phase of the exercise, which will cover residential customers with higher monthly power consumption. They said expectations of an economic recovery in the Philippines should also boost the earnings of the country's largest power distributor, which retails electricity to most provinces on the Luzon island. "Investors are not expecting any major glitches for the company. In fact, everything seems to be working in its favor," Citiseconline.com analyst Mark Alan Canizares said. Meralco B's psychological resistance level is set at 30 pesos, while that of Merlaco A is 20 pesos, he added. (1 usd = 55.20 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Globe Telecom extends gain on earnings prospects |
MANILA (AFX-ASIA) - Globe Telecom shares advanced sharply in late trade on sustained buying interest due to the positive earnings prospects for the telecom sector this year, dealers said. Globe rose 75 pesos to 985 on 109,480 shares. They said Globe this time outperformed rival Philippine Long Distance Telephone (PLDT), whose gains pushed its price beyond the psychologically important 1,000-peso mark yesterday. (1 usd = 55.20 pesos) edelacruz@afxasia.com |
| DATAWATCH - Domestic uncertainty hurts Philippine merchandise exports - GK Goh |
MANILA (AFX-ASIA) - Domestic uncertainty over the general elections in May and the Philippines' failure to attract fresh investments continue to hurt the country's exports, GK Goh Securities economist Song Seng Wun said. Philippine exports fell 4.9 pct year-on-year in November, while most of the country's Asian peers registered recoveries. The sharp decline came despite optimism that exports are likely to have grown at faster rates in the last two months of last year, given the expected pick-up in global demand. "The figures were quite surprising. There could either be a problem with the data handling itself or the Philippines is indeed lagging behind," Song said. Merchandise exports in November fell 4.9 pct to 2.952 bln usd from 3.103 bln a year earlier, declining from the 6.2 pct growth posted in October. In the January to November period, exports grew a marginal 0.5 pct year-on-year to 32.441 bln usd, well behind the government's target of an increase of at least 5.0 pct for the full year. Electronics exports, which accounted for 68.2 pct of November shipments, declined 10.3 pct to 2.012 bln usd from 2.244 bln in the same month in 2002. Song said the Philippines' showing went against the trend in countries such as Thailand and India, which both registered double-digit growths. Electronics exports elsewhere in the region also started to recover, he added. "Assuming the figures are correct, it could be due to a combination of a lack of investments and (political) uncertainty that is dampening the country's investment climate," Song said. Buyers of Philippine goods may be worried about their quality and timely delivery as the country battles various political and security concerns, beginning with the July failed military mutiny to recent cases of kidnappings and terrorist threats. Song expects all these issues to continue to scare away potential investors as the Philippines goes through another electoral process. Up for grabs in the May 2004 general elections are 48,000 government positions from the president down to local officials, with some 40 mln domestic and overseas voters expected to vote. If exports failed to pick up in December, Song said he intends to revise his 2004 exports growth forecast of 5-10 pct to 4-5 pct, as opposed to the double-digit expansion projected for other Asian countries. The Philippines' poor export performance is expected to be a further drag on the peso, which hit a record low of 55.85 to the US dollar in late November due to prevailing political and security worries. (1 usd = 55.19 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' PLDT extends rally on earnings prospects, GMA bid |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co advanced further in late morning trade on rosy earnings forecasts for 2003 and 2004, with its New York-listed American Depositary Receipts (ADR) posting further gains overnight, dealers said. They said sentiment towards the stock was boosted by a newspaper report that it is renewing its bid to acquire a majority stake in radio and television network GMA Broadcasting Corp. PLDT was up 5.00 pesos at 1,025 on 442,040 shares. Its ADRs advanced a further 0.25 usd to 18.35 last night. Yesterday, PLDT president and chief executive officer Manuel Pangilinan said he was confident the country's dominant carrier hit, or even exceeded, its 10-bln peso net profit target, after provisions, for 2003. PLDT's wireless business, through unit Smart Communications Inc, is largely expected to sustain its remarkably strong earnings performance this year. Pangilinan said the surge in PLDT's share price "reflects the strong confidence our investors have in our company's performance." He added the company is looking foward to 2004 with optimism and is confident it will be "a great year" for PLDT. PLDT's 2003 net profit before provisions is seen between 14-15 bln pesos. In 2002, net profit stood at 3.1 bln pesos. Meanwhile, a local newspaper reported, citing unidentified sources, that PLDT is reviving its bid to acquire a majority stake in GMA network. The report said PLDT is to make a new offer to GMA through its wireless unit Smart Communications Inc, which reportedly wants to close a deal before May this year. PLDT had previously offered to acquire a majority stake in GMA Network, only to pull out from an initial agreement with the latter in 2001, purportedly due to the carrier's own financial concerns. (1 usd = 55.20 pesos) edelacruz@afxasia.com |
| DATAWATCH-Philippine 2004 CPI seen up but monetary policy likely stable-GK Goh |
MANILA (AFX-ASIA) - The country's inflation rate is expected to pick up this year on pressures from an expected increase in global demand, higher fuel prices combined with a weaker peso, and higher spending during the election season, GK Goh Securities regional economist Song Seng Wun said. However, given the country's "uneven" economic recovery so far, he said a monetary policy tightening by the central bank is a remote possibility at this point. He added that, despite the expected build-up in inflationary pressures this year, the overall inflation environment is likely to remain manageable - just like last year. Inflation in 2003 averaged 3.1 pct in 2003, after registering a 3.1 pct year-on-year rise in December, the National Statistics Office (NSO) today said. Last year's average inflation rate came in within the 3.0-3.5 pct range projected by economists polled by AFX-Asia, and below the government's full-year target range of 4.5-5.5 pct. The December rate was, however, slower than the 3.2-3.3 pct economists had projected, and the 3.3 pct rise registered in November. Month-on-month, prices in December rose an average 0.3 pct compared with the 0.2 pct rise in the previous month, the NSO said. "Despite the uncertainties last year, food prices were largely stable. Going forward, however, I think we can see the combined impact of a weaker peso, higher fuel prices, increased global demand and election-related spending" Song said. Filipinos will elect a new president, vice president, a dozen senators, congressmen, governors, mayors and councilors in May. Song expects inflation this year to average 3.6 pct, still below the government's 4.0-5.0 pct target. He, however, said the central bank is expected to keep its key interest rates stable this year. "A 4-5 pct inflation rate is within control so the central is likely to keep interest rates stable for the most part of 2004," he said. "We saw an uneven economic recovery in 2003, with the manufacturing sector still weak, so I guess the central bank is unlikely to tighten its policy. Not at this point." AB Capital Securities research director Jose Vistan Jr, said he is looking at a 5.0 pct inflation rate for 2004, which is "still tolerable." He noted that demand in 2003 "was not as strong to the point that there wasn't enough pressure to push prices (higher)." edelacruz@afxasia.com |
| Philippines December CPI up 3.1 pct yr-on-yr; 2003 CPI up 3.1 pct yr/yr |
(Updating with breakdown of data) MANILA (AFX-ASIA) - The Philippines' consumer price index rose 3.1 pct in 2003 from the previous year after registering a 3.1 pct year-on-year rise in December, the National Statistics Office (NSO) said. Last year's average inflation rate came in within the 3.0-3.5 pct range projected by economists polled by AFX-Asia, and was below the government's full-year target range of 4.5-5.5 pct. The rate for December was, however, slower than the 3.2-3.3 pct economists had projected, and the 3.3 pct rise registered in November. Month-on-month, prices in December rose an average 0.3 pct compared with the 0.2 pct rise in the previous month, the NSO said. Economists expected a faster rate in December due to increased spending during the Christmas and New Year holidays. The NSO however reported that except for housing and repairs, the slowdown in the inflation rates of all the commodity groups led to the downtrend. December 2002 inflation stood at 2.6 pct, and 3.1 pct for full-year 2002. The inflation rate for housing and repairs for the month of December remained at 3.1 pct year-on-year. The year-on-year rate for food, beverage and tobacco (FBT) slid to 2.4 pct in December from 2.5 pct in November; clothing to 2.3 pct from 2.4 pct; fuel, light and water (FLW) to 6.2 pct from 6.9 pct; services to 5.5 pct from 5.6 pct; and miscellaneous items to 1.9 pct from 2.0 pct. The inflation rate for food alone declined to 2.4 pct year-on-year in December from November's 2.6 pct, as slower increases were seen in the prices of corn, cereal preparations, dairy products, fish, fruits and vegetables. The price of rice increased slightly to 0.1 pct from a decline of 0.3 pct in November. The annual average inflation for food alone stood at 2.0 pct, slightly up from 2002's 1.8 pct. Meanwhile, month-on-month inflation increased 0.3 pct in December from November's 0.2 pct rise due to increases in the prices of selected food items, which brought about the 0.4 pct month-on-month rise in FBT prices. Increases were seen in the prices of rice, meat, fish, shrimps, fruits and vegetables and cooking oil in line with the holiday season. The limited supply of chicken also pushed up prices. The prices of FLW items also rose 0.9 pct month-on-moth in December from November's 0.7 pct increase due to recent oil price increases. afxmanila@afxasia.com |
| Philippines Nov merchandise exports down 4.9 pct yr-on-yr |
MANILA (AFX-ASIA) - Merchandise exports fell 4.9 pct to 2.952 bln usd in November from 3.103 bln in the same month a year ago, the National Statistics Office (NSO) reported. This followed a 6.2 pct year-on-year growth in October announced earlier by the NSO. In the 11 months to November, exports grew a marginal 0.5 pct year-on-year to 32.441 bln usd from 32.294 bln in the same period in 2002. The government had aimed for at least 5.0 pct growth in exports in 2003. Electronics exports, which accounted for 68.2 pct of November shipments, declined 10.3 pct to 2.012 bln usd in November from 2.244 bln in the same month in 2002. Semiconductor exports, which accounted for 44 pct of total exports in November, dropped 13.4 pct year-on-year to 1.30 bln usd. Articles of apparel and clothing accessories remained the country's second top foreign-exchange earning with a combined share of 4.5 pct and an aggregate receipt of 132.82 mln usd or 24.0 pct lower than the year-earlier 174.64 mln. Shipments of "Other Products Manufactured from Materials Imported on Consignment Basis" ranked third with total revenue of 69.14 mln usd, up 92.4 pct year-on-year. Accounting for 89.3 pct of total November receipts, exports of manufactured goods fell 6.4 pct year-on-year to 2.637 bln usd. Japan remained the country's biggest export market in November, accounting for 20.0 pct of total shipments, with total receipts up 19.8 pct year-on-year to 493.99 mln usd. The US followed with a 16.0 pct share, with shipments valued at 473.47 mln usd, down 28.9 pct from 665.50 mln a year ago. The Netherlands came in third, accounting for 8.0 pct of total shipments worth 235.01 mln usd, up 0.2 pct year-on-year. afxmanila@afxasia.com |
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