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Thursday January 15, 2004
Philippines end-Dec forex reserves revised to 16.871 bln usd from 16.815 bln
Philippines' Dec BoP deficit 77 mln usd - central bank
Philippines' Magnum Holdings appoints new president
Philippines Jan-Nov overseas Filipino workers remittances up 4.8 pct yr-on-yr
Philippines 2003 net foreign portfolio inflows up 219 pct
Philippine govt approves special chicken imports to stabilize supply, prices
Philippines' PNOC unit, Singapore-based Pearl to join Ragay project
Philippine central bank keeps policy interest rates steady
Philippines' SSS chief says no need to quit over Equitable shares sale to BDO
BROKER CALL - Philippines' ABS-CBN rated 'hold' as revenue weakens - ING
Philippine movie star-presidential candidate says he is not a puppet
BROKER CALL - Philippines' Petron 12-month target price 3.40 pesos/share - ING
Philippine PLDT says 13 mln end-Dec wireless subscriber base includes Piltel's
 BROKER CALL- Philippine Meralco to see short-term weakness on court order- ING
 Manila shares sharply lower late morning on PLDT, Meralco declines - UPDATE
 Philippines SM Prime says not involved in chairman's Guam mall operations
 Forex - Philippine peso softer on political jitters, US dollar strength
 Manila shares sharply lower on declines in PLDT, Meralco
 INTERVIEW - Philippine Meralco expects 2004 sales to grow 5.0 pct yr-on-yr
 STOCKWATCH - Philippines' Meralco sharply lower after court halts rate hike
 Philippines' appeals court upholds restraining order against Tanduay
 Moody's may downgrade Philippine rating by only one notch - Buenaventura
 Philippine central bank likely to keep rates steady at today's policy review
 Philippines' Robinsons Land sets 2.5 bln pesos capex for this yr - report
 Chinatrust Philippines NPL ratio 4.54 pct as of Dec 16

Wednesday January 14, 2004
Bird flu threatens to be more serious than SARS, says WHO
Philippine Supreme Court rejects last-ditch Marcos bid to reclaim wealth
Singapore detains 2 more Islamic militants under ISA, says govt
Philippines military accuses politicians of arming communist rebels
Bank of the Philippine Islands says chairman wants to step down in March
Forex-Philippine peso extends falls on corporate dollar demand, short-covering
FOCUS - Philippine Supreme Court ruling seen hurting Meralco, stock market
Philippine energy dept, Netherland's Premier Oil sign petroleum service deal
Philippine Supreme Court halts Meralco's 0.12 peso/kwh rate hike
Philippines' Smart end-Dec subscribers more than 13 mln, 1 mln up on end-Oct
Philippines to revert to manual election count after court setback - Arroyo
Philippine Supreme Court orders Meralco not to impose 0.12 peso/kwh rate hike
Philippines' Primetown says rehabilition plan involves fresh capital infusion
BROKER CALL - First Philippine Holdings rated 'buy' on possible cash div -ING
BROKER CALL- Philippines' Meralco price seen at 40 pesos/shr by end-2004 - ING
Manila shares close higher on positive earnings outlook
Philippines' Banco de Oro, Equitable PCI ratings affirmed - Moody's
STOCKWATCH - Singapore's Beyonics higher on positive earnings outlook
Manila shares slightly higher on positive earnings outlook
ADB approves 75 mln usd investment/loan guarantee for India's LNG terminal
STOCK ALERT - Philippines' Meralco slightly lower on profit-taking
Philippines' Comelec to appeal against court's poll computerization ruling
Philippines' ICTSI appoints new chief financial advisor
Philippines hike vessel charges at Manila ports in 2004/2005 - ICTSI
Philippine central bank approves incentive to encourage bank mergers
Philippines' PSi Technologies to shift half of production to China - report
Australian Stock Exchange says not in any talks with Philippine Exchange
January 12 - 13  
January 8 - 9 
January 6  -  7
January 04 - 05

 

Philippines end-Dec forex reserves revised to 16.871 bln usd from 16.815 bln


     MANILA (AFX-ASIA) - The country's gross international reserves (GIR) as of end-2003 have been revised to 16.871 bln usd from 16.815 bln, according to data from the central bank's website.
     The end-December GIR compares with 16.826 bln usd registered in November.
     Central bank governor Rafael Buenaventura earlier said the government's foreign borrowings last year boosted the GIR, which stood at 16.154 bln usd at end-2002.
     The GIR at end-2003 were equivalent to 1.5 times total debts maturing in less than a year and covered 4.7 months of imports of goods and services.
     The central bank intends to maintain the GIR at a comfortable level of 14-15 bln usd this year.
     edelacruz@afxasia.com
 

 

Philippines' Dec BoP deficit 77 mln usd - central bank


     MANILA (AFX-ASIA) - The country's balance of payments (BoP) yielded a deficit of 77 mln usd in December, according to data from the central bank's website.
     No other details were available.
     In November, the BoP registered a surplus of 26 mln usd, while the 11 months to November surplus came in at 185 mln usd.
     The central bank earlier said it expected a BOP deficit of 446 mln usd at end-2003, lower than an earlier projection of 1.13 bln usd, on a rise in foreign borrowings.
     The 2003 current account surplus was seen at 1.68 bln usd, close to the 1. 7 bln target for the year.
     edelacruz@afxasia.com
 

 

Philippines' Magnum Holdings appoints new president


     MANILA (AFX-ASIA) - Magnum Holdings Inc has appointed Leonor Cabarrus as its new president, replacing Jose Abad Santos III who has resigned, the Philippine Stock Exchange said.
     The appointment of Cabarrus, who had served the company as independent director, was effective Dec 26.
     No reason was given for Abad Santos' resignation.
     The company, which is engaged in acquiring and disposing of properties and securities, said it is seeking the Securities and Exchange Commission's approval for its plan to bring its equity to positive from negative.
     It said its board of directors will meet to discuss the "adjustments to be made in terms of the target dates of the planned activities."
     It gave no details.
     edelacruz@afxasia.com
 

 

Philippines Jan-Nov overseas Filipino workers remittances up 4.8 pct yr-on-yr


     MANILA (AFX-ASIA) - Remittances from overseas Filipino workers (OFWs) in the January to November period last year reached 6.9 bln usd, up 4.8 pct from a year earlier, the central bank reported.
     However, OFWs sent less money in November as remittances fell 4.4 pct to 579 mln usd from 606 mln usd for the same month in 2002.
     "The volatility in the foreign exchange market may have encouraged OFWs to delay remittances on expectations of a further depreciation, which would have yielded higher peso equivalent," central bank governor Rafael Buenaventura said.
     The central bank had targeted a 6.0 pct year-on-year growth to 7.6 bln usd in remittances for 2003.
     "The rise in remittances in the January-November period can be attributed largely to the deployment of higher-paid professional and service workers ... tempering the effect of the decline in the number of deployed workers," he said.
     The latest statistics for the 11-month period show that the number of deployed land-based workers fell 6.7 pct year-on-year to 600,620, while that of sea-based employees rose 2.6 pct to 199,727.
     The US, Saudi Arabia, Japan, the UK, Hong Kong, Singapore and the United Arab Emirates remained the major sources of OFW remittances.
     cecille.yap@afxasia.com
 

 

Philippines 2003 net foreign portfolio inflows up 219 pct


     MANILA (AFX-ASIA) - The country's net foreign portfolio inflow stood at 675.8 mln usd in 2003, three times more than the 211.7 mln usd registered the previous year, the central bank reported.
     On a gross basis, 2003 inflows totaled 1.64 bln usd, up 29 pct from 1.28 bln usd in 2002. Portfolio outflows, meanwhile, declined 9 pct to 968.4 mln usd from 1.06 bln in 2002.
     Central bank governor Rafael Buenaventura attributed the improvement in the net inflow to strong gains on Wall Street, the generally lower-than-expected budget deficit and inflation rate, as well as reduced interest rates and higher corporate earnings.
     These positive developments outweighed the negative impact of the Iraq war, the SARS outbreak and lingering security and political concerns, he said.
     Based on the report submitted to the central bank by the country's five largest custodian banks, non-resident investments in all types of portfolio investment instruments posted net inflows in 2003, with foreign placements in peso bank deposits posting the highest inflow of 464.8 mln usd.
     Foreign investments and government securities and money market instruments netted 180.3 mln usd, while investments in stock market-listed securities stood at 30.7 mln usd.
     In 2002, only investments in peso bank deposits posted a net inflow, of 350.2 mln usd, while investments made in stock securities and money market instruments posted net outflows of 115.2 mln usd and 23.3 mln usd, respectively.
     For 2003, only the month of February registered a net deficit, of 1.6 mln usd.
     cecille.yap@afxasia.com
 

 

Philippine govt approves special chicken imports to stabilize supply, prices


     MANILA (AFX-ASIA) - The government has approved the special importation of chicken in a move to stabilize its supply and price in the local market, Trade Secretary Cesar Purisima said.
     "We are now coordinating the matter with the Department of Agriculture to ensure that the fresh supply is infused into the domestic market at the soonest time possible," Purisima said in a statement.
     He said the imported chicken will be allowed to come in with tariffs lower than the existing allocation under the Minumum Access Volume set by the authorities.
     The Department of Trade (DTI) is studying how much tariff should be imposed to assure sufficient supply.
     The DTI said the supply of chicken is being assessed to determine the volume to be imported, but it gave no specific timetable for the importation.
     Purisima said the special importation will help stabilize chicken supply and prices sooner than had been promised by local chicken integrators.
     The Philippine Association of Broiler Integrators had assured the government that it would be able to stabilize supplies by late January at the earliest, or the first week of February, according to the DTI.
     "While there are a lot of factors that have contributed to this current shortage in the supply of chicken, we cannot let the consumers continue on suffering while we work out various solutions," Purisima said.
     The country's traditional sources of chicken are the United States and Brazil.
     edelacruz@afxasia.com
 

 

Philippines' PNOC unit, Singapore-based Pearl to join Ragay project


     MANILA (AFX-ASIA) - PNOC Exploration Corp and Singapore-based Pacific East Asia Resources Ltd (Pearl) will buy into the newly-signed service contract of Premier Oil Philippines BV, which covers exploration of the Ragay Gulf for petroleum reserves, PNOC officials said.
     Publicly-listed PNOC Exploration, a unit of state-owned Philippine National Oil Co, is expected to take a 15.0 pct stake in Premier Oil's service contract, while Pearl will acquire about 42.5 pct.
     Netherlands-incorporated Premier Oil Philippines, a subsidiary of Britain's Premier Oil, will be the main operator of the project with stake of 42.5 pct.
     The Department of Energy and Premier Oil Philippines yesterday signed the service contract, the first to be issued in six years and covering an area of 1.08 mln hectares in southern Luzon.
     PNOC Exploration president Rufino Bomasang said the company will sign a separate agreement with Premier Oil.
     "We're just waiting for the DOE to approve some documents. PNOC Exploration plays an important role in the project since we have started the gathering of seismic data in the area," Bomasang said.
     Premier Oil Philippines expects the drilling in the Ragay Gulf to start in two or three years after a series of seismic surveys in the area.
     The seven-year contract will require investments of 4.6 mln to 12.6 mln usd.
     afxmanila@afxasia.com
 

 

Philippine central bank keeps policy interest rates steady


     MANILA (AFX-ASIA) - The Monetary Board decided to keep the central bank's policy interest rates unchanged during its monthly policy review today, as inflation remains manageable, central bank governor Rafael Buenaventura said.
     The central bank's policy rates have been kept steady at 6.750 pct for overnight borrowing and 9.000 pct for overnight lending.
     "The Monetary Board believes that the current monetary policy stance is appropriately supportive of the economy's growth objective," Buenaventura said in a statement.
     "The Monetary Board is also of the view that the present monetary policy setting would continue to ensure adequate liquidity to support growth in domestic demand while helping to guard against potential price risks."
     The central bank expects inflation in 2004 to reach 4-5 pct, in line with the government's target, from the 2003 average of 3.1 pct.
     Buenaventura said the inflation outlook is consistent with a projected economic growth and pick-up in demand, and takes into account planned adjustments in tariff rates and utility charges.
     It also "considers the risks stemming from concerns over domestic political conditions, which may influence the movements of the exchange rate and financial variables with potential inflationary effects."
     The Monetary Board's next policy review is set for Feb 12.
     afxmanila@afxasia.com
 

 

Philippines' SSS chief says no need to quit over Equitable shares sale to BDO


     MANILA (AFX-ASIA) - Social Security System (SSS) president Corazon de la Paz said there is no need for her to step down in the aftermath of SSS' agreement to sell its shares in Equitable PCI Bank to Banco de Oro Universal Bank (BDO).
     She defended the decision to sell Equitable shares, reiterating that BDO's purchase offer presents an opportunity for SSS to recover and realize a return from a low-performing investment.
     "I believe that there's no need (for me) to resign if the decision (to sell) is premised on this," she said in Filipino over DZMM radio.
     She was reacting to yesterday's privilege speech of opposition Senator Sergio Osmena, who sought a Senate inquiry into the SSS-BDO deal.
     "This is too big an amount to be allowed to go unexamined. When something of this magnitude comes out, it would be better to have conducted public bidding for the simple reason that this is a very choice public share," Osmena was quoted by the Philippine Daily Inquirer as saying.
     De la Paz said SSS is now analyzing Osmena's facts "if they have any basis."
     "I also hope to be able to discuss this with Senator Osmena," she said.
     BDO officials could not be reached for comment.
     The transaction, which is still subject to regulatory approvals, involves BDO, controlled by retail tycoon Henry Sy Sr, acquiring some 187.85 mln Equitable PCI shares.
     These shares represent a 25.8 pct stake, based on the outstanding total of 727.003 mln shares, or an effective control of 29 pct if the interest of EBC Investments Inc, Equitable PCI's wholly-owned subsidiary, is deducted.
     BDO will pay SSS, the state-run pension fund for private sector workers, 43.50 pesos for each Equitable PCI share, or a 30 pct premium over the stock's end-2003 closing price.
     Under their agreement, BDO will make a cash down-payment of 1 bln pesos, while the balance of 13 bln will be secured through a 6.5-year zero-coupon non-amortizing promissory note.
     (1 usd = 55.46 pesos)
     edelacruz@afxasia.com
 

 

BROKER CALL - Philippines' ABS-CBN rated 'hold' as revenue weakens - ING


     MANILA (AFX-ASIA) - ING Financial Markets said it has downgraded ABS-CBN Broadcasting Corp to a "hold" from "buy" as its viewership declined in the past months slowing the network's revenue momentum.
     "Earnings are likely to disappoint the market, which has now priced in a full recovery," ING said in a note issued today.
     The brokerage has lowered its 12-month target price for ABS-CBN to 25 pesos from 26.50.
     ABS-CBN closed today unchanged at 26.50.
     "We have revised revenue (forecasts) down by 2.0 pct per annum and increased operating expenses by 1-3 pct for 2003-2005. The high level of operating leverage translates into a 18-23 pct downward revision to our profit forecasts," ING said.
     ABS-CBN's advertising revenues recovered last year after viewership surged when it began airing the telenovela "Meteor Garden" starring Taiwanese teenagers popularly known as "F-4".
     ING said the company has debts of 2.1 bln maturing in 2004 and 2.0 bln in 2005, and cash on hand of 1.7 bln pesos as of Sept 2003.
     "Our dividend forecast may be at risk," ING said.
     The brokerage expects ABS-CBN's net profit at 1.014 bln pesos in 2003, more than double the year-earlier level of 438 mln, at 1.202 bln in 2004 and 1.291 bln in 2005.
     (1 usd = 55.50 pesos)
     edelacruz@afxasia,com
 

 

 

Philippine movie star-presidential candidate says he is not a puppet


     MANILA (AFX-ASIA) - Philippine movie icon Fernando Poe, who is running for president in the May elections, said today he is his own man and denied widespread suspicions that he is being manipulated by unseen figures.
     In a forum with college students, Poe, a high-school drop-out with no record of public service, said his lack of experience in politics is an asset as he owes no political favours.
     "My difference from other (presidential candidates) is I am not a politician. I am not beholden to anyone. I do not owe anything to anybody so if something happens, you can look directly to me because I owe no debt of gratitude to anyone," he said.
     It was the first in-depth discussion with Poe, regarded as the local version of Hollywood hero John Wayne, since he filed his candidacy for the presidency earlier this month.
     Poe said that before he made the decision to run, he made sure that he would not be manipulated by any single person or party.
     "If that was the case, it would have been better if I did not run. But if anyone tries to dictate to me, he had better think about it first," the hugely-popular movie star said defiantly.
     The 64-year-old veteran of scores of action movies is the presidential candidate of a coalition of opposition parties going up against President Gloria Arroyo in the May elections.
     Recent surveys show that Poe is the front runner in the presidential race, followed by independent former education secretary Raul Roco and then Arroyo.
     However there have been widespread accusations that Poe is being manipulated by powerful opposition figures, an image fuelled by Poe's reluctance to discuss major issues in public.
     Among Poe's backers is his close friend and fellow movie star, deposed president Joseph Estrada who is in detention while being tried on massive graft charges.
     Asked about his platform, Poe said that he could not elaborate yet or he might be charged with campaigning ahead of the official campaign period.
     But he said that his main priority will be to bring "trust and confidence" back to government, adding that "the reason I ran for this office is that I know I am honest."
     Poe also brushed aside speculation that he will step aside to make way for another opposition candidate, insisting "I am not a quitter."
 

 

BROKER CALL - Philippines' Petron 12-month target price 3.40 pesos/share - ING


     MANILA (AFX-ASIA) - ING Financial Markets said it is maintaining its 'buy' call on oil refiner Petron Corp with a 12-month target price raised to 3.40 pesos per share from 2.85 on improved earnings and pricing power.
     Petron closed today unchanged at 2.50 pesos.
     ING said Petron's ability to raise prices "exemplifies pricing power, and should result in improved earnings" even though the brokerage sees a more gradual decline in world crude oil prices both this year and in 2005.
     Petron raised its pump prices by as much as 0.80 pesos per liter earlier this week, its highest one-time increase since the deregulation of the oil industry in 1998.
     The brokerage said improved domestic retail sales volume growth, which accelerated in the last quarter of 2003, complements Petron's pricing power.
     "This would make our original volume growth assumption of 1.0 pct annually for overall domestic sales in 2004-2005 too conservative," it said.
     ING forecasts Petron's 2003 net profit to come in at 3.078 bln pesos, compared to 2.914 bln a year earlier, and then to hit 3.812 bln this year and 5.276 bln in 2005.
     "We have raised our profit forecasts by 3.0 pct in 2004 and 13.0 pct in 2005 due to better selling prices and higher volume growth," it said.
     (1 usd = 55.50 pesos)
     edelacruz@afxasia.com
 

 

Philippine PLDT says 13 mln end-Dec wireless subscriber base includes Piltel's


     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said its wireless group's total subscriber list of 13 mln as of end-2003 includes the 10.1 mln customers of unit Smart Communications Inc and 2.9 mln of affiliate Pilipino Telephone Corp (Piltel).
     Piltel earlier said the subscriber base of its Talk N' Text wireless brand grew 52 pct year-on-year to 2.54 mln at end-September with 320,000 new subscribers in the third quarter alone.
     Smart had over 9 mln subscribers at end-September.
     PLDT told the stock exchange that it expects to announce its 2003 full-year results towards the end of February.
     PLDT president and chief executive officer Manuel Pangilinan earlier expressed confidence the company would hit, or even exceeded, its 10-bln peso net profit goal, after provisions, for 2003 on the back of the sustained robust performance of Smart.
     Piltel has been de-consolidated from PLDT books.
     The 2003 net profit before provisions is seen between 14-15 bln pesos. In 2002, net profit stood at 3.1 bln pesos.
     (1 usd = 55.50 pesos)
     edelacruz@afxasia.com
 

 

BROKER CALL- Philippine Meralco to see short-term weakness on court order- ING


     MANILA (AFX-ASIA) - ING Financial Markets expects "short-term" weakness in Manila Electric Co's share prices after a Supreme Court order barring the company from implemeting a 0.12 peso per kilowatthour rate hike.
     The rate hike, which the Energy Regulatory Commission (ERC) granted provisionally, took effect on Jan 1.
     ING said that, while it is too early to speculate on the court's eventual decision on the tariff hike, Meralco's inability to implement the rate increase could seriously undermine its ability to secure debt refinancing, leading to a default situation as early as the first quarter of 2004.
     "We estimate that, apart from requesting short-term creditors to extend the maturity of 4.7 bln pesos in debt, Meralco needs to raise another 200-250 mln usd to refinance maturing debt in 2004-2005," ING Financial Markets said in a flash note issued today.
     The brokerage said it expects Meralco's share price to remain weak until the court issue is resolved, but said it stands by its view that "the long-term trend of the regulatory environment is positive."
     At 11.20 am, Meralco B, open to foreigners, was down 4.00 pesos, or 11.59 pct, at 30.50 on volume of 5.4 mln shares. ING has set a 35.00 target price for the stock.
     Meralco A was 2.50 lower at 19.25.
     The Supreme Court yesterday ordered Meralco to roll back its power rates to the levels before Jan 1, 2004, when it implemented the provisional tariff hike.
     The order was made to allow the High Court to study a case an opposition group filed. The court also ordered Meralco and the ERC to comment on the petition within a non-extendible period of 10 days from the company's receipt of the decision. An oral argument is scheduled on Jan 27.
     "In our view, it is still too early to speculate on the eventual decision of the Supreme Court. The SC order itself stated that it has not given due course to the petition of the opposition," ING said.
     (1 usd = 55.512 pesos)
     cecille.yap@afxasia.com
 

 

Manila shares sharply lower late morning on PLDT, Meralco declines - UPDATE


     (Adds share prices)
     MANILA (AFX-ASIA) - Share prices were sharply lower late morning as investors cashed out of heavyweights Philippine Long Distance Telephone (PLDT) and Manila Electric Co, dealers said.
     Losses in Meralco, after the Supreme Court ordered it to suspend a 0.12 peso per kilowatthour rate hike that took effect Jan 1, triggered a sell-off in the market, they said.
     PLDT also fell after its American Depositary Receipts slid 0.51 usd to 16. 44 in New York overnight.
     At 11.16 am, the composite index was down 26.99 points or 1.77 pct at 1, 498.31 on volume of 302.19 mln shares valued at 1.14 bln pesos, with turnover boosted by block and cross sales. It has traded between 1,496.07 and 1,525.07 so far.
     In the broader market, losers outnumbered gainers 34 to 8 while 35 stocks were unchanged.
     "The sell-off in Meralco brought the market down, while PLDT was also weak in New York last night," Westlink Global Equities chairman Rommel Macapagal said.
     He said the market is consolidating near the 1,500-point level with the next support seen at 1,480.
     The Supreme Court gave Meralco 10 days to comment on the petition of advocacy groups, led by the Freedom From Debt Coalition, against the tariff increase.
     Meralco had expected the provisional rate hike to give a 1.9-bln peso boost to its revenue annually and help it undertake projects to improve its service and pay maturing loans.
     Top-traded PLDT was down 20 pesos at 900.
     Meralco B, available to foreign investors, fell 4.00 to 30.50 on 5.2 mln shares while Meralco A dropped 2.50 to 19.25 on 1.75 mln shares.
     Meralco parent First Philippines Holdings was down 1.75 at 24.25 on 2.8 mln shares.
     First Philippine Holdings parent Benpres Holdings was down 0.07 at 0.61 on 23.56 mln shares.
     San Miguel B was down 1.00 at 68, while San Miguel A slid 0.50 to 55.50.
     Globe Telecom fell 10 to 890.
     Ayala Land dropped 0.10 to 6.10.
     SM Prime was down 0.10 at 6.20.
     Pilipino Telephone was down 0.08 at 1.18.
     (1 usd = 55.50 pesos)
     edelacruz@afxasia.com
 

 

Philippines SM Prime says not involved in chairman's Guam mall operations


     MANILA (AFX-ASIA) - Mall operator SM Prime Holdings Inc said it no ties to a newly-renovated mall in Guam after a newspaper reported that group chairman Henry Sy Sr had recently purchased and re-developed the facility.
     "SM Prime Holdings has no involvement in the said Guam mall. At present, (the company) owns and operates 17 malls all located in the Philippines," the company said in a disclosure to the stock exchange.
     BusinessWorld newspaper yesterday reported that SM Prime chairman Sy had started operating Agana Shopping Center after extensive renovation work.
     The purchase and renovation of the Guam property, said to have cost some 10 mln usd, is Sy's "private investment", the newspaper reported.
     (1 usd = 55.513 pesos)
     cecille.yap@afxasia.com
 

 

Forex - Philippine peso softer on political jitters, US dollar strength


     MANILA (AFX-ASIA) - The peso sustained further losses in morning trade with sentiment undermined by political jitters before presidential elections in May and the across-the-board strength of the US dollar, dealers said.
     At 10.47 am, the peso stood at 55.519 versus the US dollar after trading between 55.40-55.53 on volume of 50 mln usd. It closed at 55.46 yesterday.
     Dealers said concerns have been raised about whether the May polls would proceed as scheduled after the Supreme Court nullified a contract awarded to the Commission on Election (Comelec) to computerize the election process.
     Calls for Comelec officials and commissioners to resign after the agency's deal was declared null and void have further fuelled anxiety, a local bank dealer said.
     "Who will handle the elections should this push through? How will the counting be done, and can we be assured of the integrity of the process? These are the questions the public have in mind right now," the dealer said.
     The Comelec, upon consultations with President Gloria Arroyo and the leaders of Congress, has assured the May polls would go ahead, with counting to be done manually.
     Dealers said the US dollar was also in a recovery mode across-the-board after falling too fast, too sharp in the past weeks.
     "The trading at the Philippine Dealing System (PDS) now has the semblance of how things are in the grey market, which is trading dollar 0.20 pesos higher than in the PDS. There could be some catching up," another dealer said.
     Without the help of the central bank, which has not been seen in the market in the past two days, the peso is seen traded at 55.40-55.60 today versus the US dollar, with bias still on a weaker local currency.
     cecille.yap@afxasia.com
 

 

Manila shares sharply lower on declines in PLDT, Meralco


     MANILA (AFX-ASIA) - Share prices were sharply lower as investors cashed out of market heavyweights Philippine Long Distance Telephone (PLDT) and Manila Electric Co, dealers said.
     Losses in Meralco, after the Supreme Court ordered it to suspend a 0.12 peso per kilowatthour rate hike that took effect Jan 1, triggered a sell-off in the market, they said.
     PLDT also fell after its American Depositary Receipts slid 0.51 usd to 16. 44 in New York overnight.
     At 10.41 am, the composite index was down 29.23 points, or 1.92 pct, at 1, 496.07 on volume of 240.38 mln shares valued at 842.8 mln pesos. It has traded between 1,496.07 and 1,525.07 so far.
     In the broader market, losers outnumbered gainers 29 to 9, while 31 stocks were unchanged.
     "The sell-off in Meralco brought the market down, while PLDT was also weak in New York last night," Westlink Global Equities chairman Rommel Macapagal said.
     The Supreme Court gave Meralco 10 days to comment on the petition of advocacy groups, led by the Freedom From Debt Coalition, against the tariff increase.
     Meralco had expected the provisional rate hike to give a 1.9-bln peso boost to its revenue annually and help it undertake projects to improve its service and pay maturing loans.
     (1 usd = 55.50 pesos)
     edelacruz@afxasia.com
 

 

INTERVIEW - Philippine Meralco expects 2004 sales to grow 5.0 pct yr-on-yr


     ---- by Cecille Yap ----
     MANILA (AFX-ASIA) - Manila Electric Co, the country's largest power distributor, expects its electricity sales to grow 5.0 pct in 2004 on the back of the economy's much-anticipated recovery, its president Jesus Francisco said.
     This follows last year's projected year-on-year growth of at least 4.0 pct.
     "Normally, our sales go up or down depending on the country's GDP performance. It remains to be seen whether the elections in May would further boost demand," Francisco told AFX-Asia.
     The government estimates that GDP will grow 4.9-5.8 pct, higher than the 4.2-5.2 pct target range in 2003.
     Francisco said the company forecast better profits for 2004 because of higher electricity sales, stable, if not lower, systems loss and the recent 0. 12 pesos per kilowatthour rate increase that took effect on Jan 1.
     Meralco earlier projected that the increase, now undergoing public hearings at the Energy Regulatory Commission (ERC), will generate additional annual revenues of around 1.9 bln pesos.
     However, on Wednesday the Supreme Court ordered the company to stop implementing the provisional rate increase and "observe the status quo prevailing before the filing of the petition," referring to a petition filed by several advocacy groups led by the Freedom from Debt Coalition.
     The interview with Francisco was conducted before the court ruling.
     Meanwhile, a source said that Meralco's 2003 net earnings are expected to come in below the company's 1.0-bln peso goal.
     The source said it may be difficult to achieve the 2003 net profit target since "some provisioning" had to be made for certain regulatory issues which remain pending before the ERC, including representing the potential additional disallowance for Quezon Power Ltd's transmission lines fees and value-added savings.
     Meralco started providing for the contingent liability in 2002 until the third quarter of 2003. In the third quarter, it made provisions of 260 mln pesos for potential disallowance, whose recoverability depends on the outcome of ERC's evaluation.
     Asked to comment on the 2003 profit forecast, Francisco said: "We are close to coming up with the figures and they still have to be presented to the board."
     Meralco's nine-month to Sept 2003 net profit stood at 640.11 mln pesos down from 747.175 mln in the year-earlier period.
     The company will spend 5 bln pesos on the third phase of its four-stage refund of overcharges to customers this year, Francisco said.
     The third phase will cover residential customers with consumption of no less than 300 kilowatthours per month.
     Francisco said the company hopes that the ERC would agree to lengthen the third phase of the refund to 12 months from six months.
     "If we won't be able to refinance our creditors and we don't get the refund schedule that we were hoping, then there would be certain months we'll be in deficit," Francisco said, adding some of its maturing debts would have to be rolled over to make ends meet.
     Meralco has 80 mln usd in short-term debts maturing this month and 3.9 bln pesos worth of long-term debts falling due in the first half of the year.
     "I'm sure our Treasury has been in talks with our creditors. We remain hopeful our loans falling due in April and December would be paid," Francisco said.
     Meralco has over 4 mln customers and supplies metropolitan Manila and several provinces on the main island of Luzon.
     (1 usd = 55.386 pesos)
     cecille.yap@afxasia.com
 

 

STOCKWATCH - Philippines' Meralco sharply lower after court halts rate hike


     MANILA (AFX-ASIA) - Manila Electric Co's A and B shares were sharply lower in early trade after the Supreme Court ordered the power distributor to roll back its rates to levels before Jan 1 this year, dealers said.
     Meralco, which retails electricity to an estimated 4 mln customers in metropolitan Manila and nearby provinces, was ordered to suspend the 0.12 peso per kilowatthour (kWh) rate hike that the Energy Regulatory Commission granted.
     At 10.07 am, Meralco B, available to foreign investors, was down 4.00 pesos, or 11.59 pct, at 30.50 on volume of 3.88 mln shares.
     Meralco A was down 2.75 pesos, or 12.64 pct, at 19.00 on 659,200 shares.
     Meralco parent First Philippine Holdings Corp was down 1.75 pesos, or 6. 73 pct, at 24.25 on 1.64 mln shares.
     First Philippine Holdings parent Benpres Holdings Corp was down 0.07 peso, or 10.29 pct, at 0.61 on 12.4 mln shares.
     The composite index shed 24.81 points, or 1.63 pct, to 1,500.49 on volume of 194.66 mln shares valued at 594.96 mln pesos.
     "It's what we expected after the Supreme Court decision and this single issue has triggered sell-offs in the market," First Grade Holdings managing director Astro del Castillo said.
     Meralco president Jesus Francisco said yesterday the company will announce its next move today, after the company's lawyers have studied the ruling.
     The Supreme Court has set Jan 27 as the day to hear oral arguments on the petition of advocacy groups led by the Freedom From Debt Coalition against the tariff increase.
     It gave Meralco 10 days to comment on the petition.
     Meralco had expected the provisional rate hike to give 1.9 bln pesos boost to its revenue annually and help it undertake projects to improve its service and pay maturing loans.
     "Until the rate hike issue is resolved, Meralco shares will remain weak and be a major drag on the market," del Castillo said.
     (1 usd = 55.52 pesos)
     edelacruz@afxasia.com
 

 

Philippines' appeals court upholds restraining order against Tanduay


     MANILA (AFX-ASIA) - The Court of Appeals (CA) has upheld the temporary restraining order (TRO) issued by the Mandaluyong Regional Trial Court against Tanduay Holdings Inc on the manufacture and sale of its gin brand, Ginebra Kapitan.
     In a 36-page ruling, the appellate court said the TRO issued by Mandaluyong Regional Trial Court Judge Edwin Sorongon against Tanduay is justified.
     In a statement, Tanduay competitor Ginebra San Miguel Inc, which has filed a 100-mln peso infringement case against Tanduay on the use of the "Ginebra" trademark, said the court found the Mandaluyong judge to have observed due process by setting the case for hearing prior to the issuance of the TRO.
     Tanduay officials could not be reached for comment.
     (1 usd = 55.46 pesos)
     edelacruz@afxasia.com
 

 

Moody's may downgrade Philippine rating by only one notch - Buenaventura


     MANILA (AFX-ASIA) - Moody's Investors Service is expected to downgrade the country's sovereign credit rating this month by one notch, not two as speculated in recent newspaper reports, the Philippine Daily Inquirer quoted central bank governor Rafael Buenaventura as saying.
     "We're hoping that with the good economic numbers and positive developments, we won't see that much of a downgrade," he said.
     Moody's is expected to release the results of its ratings review for the Philippines before the end of this month.
     Earlier Buenaventura said the country's macroeconomic numbers came out "well" particularly in the last quarter of 2003, which Moody's might take into consideration in the rating review.
     Moody's has been maintaining the Philippines' sovereign rating at one notch below investment grade.
     The agency had decided to place the Philippine ratings under review because of concerns over political squabbling ahead of the May national elections and over the country's debt levels as well as warnings of a looming fiscal crisis.
     edelacruz@afxasia.com
 

 

Philippine central bank likely to keep rates steady at today's policy review


     MANILA (AFX-ASIA) - The policy-making Monetary Board is expected to keep the central bank's policy interest rates unchanged during its monthly policy review today, central bank governor Rafael Buenaventura said.
     He said the monetary authorities could afford to maintain its neutral stance since inflation remains manageable.
     The central bank's policy rates have been kept steady at 6.750 pct for overnight borrowing and 9.000 pct for overnight lending.
     Buenaventura added that a 25-basis point increase in key interest rate in the US "will not trigger any change on our part unless inflationary pressures come in."
     afxmanila@afxasia.com
 

 

Philippines' Robinsons Land sets 2.5 bln pesos capex for this yr - report


     MANILA (AFX-ASIA) - Robinsons Land Corp will spend 2.5 bln pesos on construction of new shopping malls and other projects this year, the Philippine Star reported, citing company president Lance Gokongwei.
     The property arm of conglomerate JG Summit Holdings Inc will open three malls, including one in Pampanga north of Manila, Bacolod in the central Philippines and Mandaluyong in Manila.
     (1 usd = 55.46 pesos)
     edelacruz@afxasia.com
 

 

Chinatrust Philippines NPL ratio 4.54 pct as of Dec 16


     MANILA (AFX-ASIA) - Chinatrust (Philippines) Commercial Bank Corp said its non-performing loans (NPL) accounted for 4.54 pct of total loans as of Dec 16.
     As of Sept 19, Chinatrust Philippines' NPL ratio stood at 4.96 pct.
     In its published statement of condition, the bank said its NPLs totaled 514.21 mln pesos, against general provisions of 192.88 mln and specific provisions of 474.86 mln.
     Return on average equity stood at 13.95 pct.
     (1 usd = 55.46 pesos)
     edelacruz@afxasia.com
 

 

Bird flu threatens to be more serious than SARS, says WHO


     HANOI (AFX-ASIA) - UN experts warned today the bird flu outbreak troubling Asia has the potential to be more deadly than SARS and that Vietnam -- the country worst hit so far -- is ill-prepared to cope.
     The warning came as Thailand investigated whether the mysterious deaths of thousands of chicken is due to the avian flu outbreak that has already transferred to humans, killing at least three people.
     World Health Organization (WHO) experts said that if the strain continues to mutate it has the potential to be far more serious than SARS.
     "If the H5N1 (avian influenza) virus attaches itself to the common human flu virus and if it is then effectively transmitted, it has the potential to cause widespread damage," Peter Cordingley, the WHO's Manila-based spokesman, told Agence France Presse.
     The H5N1 virus killed six of 18 people who fell sick in Hong Kong in 1997. Three of 12 deaths -- two children and an adult -- in Vietnam since October had been confirmed to be due to the virus.
     "This mortality rate is far higher than that of the SARS virus," Cordingley said.
     China and the WHO are battling to prevent another outbreak of SARS, a respiratory disease that last year provoked a global health crisis, killing nearly 800 among 8,000 infections in 31 countries.
     "The common human flu virus is far more infectious than the SARS virus and can be spread by aerosol and not just through droplets as in the case of the SARS virus," Cordingley explained.
     He cited two factors for the bird flu virus to be potentially more dangerous than the SARS virus.
     "One is if it attaches itself to the common flu virus and the second is that if this new virus is then effectively transmitted like the common flu virus, we have the potential for widespread damage," he said.
     Earlier, the UN's Food and Agriculture Organization (FAO) said the authorities in Vietnam are being overwhelmed by the outbreak -- with a possible two million chickens infected.
     "The authorities do their best to keep the situation under control with the available means but the country is not prepared for an event of that magnitude," Anton Rychener, FAO representative in Hanoi, told AFP.
     "We have to avoid transmission from human to human. The situation is serious and worrying. But I would not say it is out of control."
     According to the US Centers for Disease Control and Prevention, the H5N1 virus can spread from poultry to people but not easily from person to person.
     The outbreak infecting Vietnam's poultry industry was confirmed last week. It followed smaller outbreaks in South Korea and Japan, which have yet to be fully contained.
     In Thailand, one of the world's largest poultry exporters, news reports said thousands of chickens had succumbed to a mystery illness in recent weeks, but the authorities maintained no bird flu had been documented.
     South Korea said today it has clamped a quarantine zone around a farm southeast of Seoul, where some 88,000 chickens and ducks are being killed. The agriculture ministry is considering culling all poultry in farms within a three-kilometer radius.
     The highly contagious disease appeared to have been brought under control in South Korea last month after hitting 15 areas nationwide.
     Japan has also appealed for calm, insisting the virus is contained to a single farm.
     Hong Kong, which slaughtered its entire poultry stock of more than a million birds in the 1997 outbreak, has announced a ban on the import of live birds from affected areas. Cambodia and Taiwan have also announced limited bans.
     Vietnam's agriculture ministry has ordered the destruction of all chickens suspected of contracting the virus.
     Containment efforts have been complicated by next week's Lunar New Year festival of Tet, during which chickens are traditionally eaten.
 

 

Philippine Supreme Court rejects last-ditch Marcos bid to reclaim wealth


     MANILA (AFX-ASIA) - The Philippine Supreme Court has rejected a last-ditch motion by Imelda Marcos, the widow of the late deposed president Ferdinand Marcos, to reclaim nearly 700 mln usd left in Swiss funds.
     The court denied the motion for lack of merit, court documents said.
     "No further pleadings will be entertained," the court said, affirming its ruling last July that released the funds from Marcos's Swiss bank accounts to the Philippine government.
     The money is believed have been embezzled from state coffers during Marcos' 20-year rule.
     The funds were frozen in 1986 following a popular revolt that ended Marcos's regime and sent him into exile in Hawaii where he died three years later.
     The bank funds were later transferred to an escrow account in Manila to await a Philippine court ruling on their rightful ownership.
     President Gloria Arroyo has pledged to use part of the Swiss bank funds to compensate some 10,000 human rights victims who suffered under the Marcos dictatorship.
 

 

Singapore detains 2 more Islamic militants under ISA, says govt


     SINGAPORE (AFX-ASIA) - Two more Islamic militants have been detained in Singapore, including the father-in-law of slain Jemaah Islamiyah bomber Fathur Rohman al-Ghozi, the Ministry of Home Affairs said.
     The ministry said Hosnay bin Awi, al-Ghozi's father-in-law, had served a jail sentence in Indonesia for immigration offences and was detained by Singapore authorities after he was returned here in November last year.
     The second extra man under detention is Alahuddeen bin Abdullah, a member of the Moro Islamic Liberation Front, a Filipino separatist group.
     The two latest detentions bring to 37 the number of people jailed under under Singapore's Internal Security Act since Dec 2001 for terrorism-related activities in support of Jemaah Islamiyah and the MILF.
 

 

Philippines military accuses politicians of arming communist rebels


     MANILA (AFX-ASIA) - A senior Philippines military official accused unnamed politicians of giving weapons and money to communist guerrillas in a bid to boost their chances in the May general elections.
     These politicians are aiding the New People's Army (NPA) to gain safe passage to rebel-influenced areas when the election campaigning starts on Feb 10, vice chief-of-staff, Lieutenant General Rodolfo Garcia, told reporters.
     "Our intelligence people have been dutifully submitting the names of politicians who have given money or even those politicians who in lieu of money have given instead arms," he said.
     "We have been able to persuade or dissuade several of these politicians from doing that."
     Garcia said the armed forces and the police have stepped up security ahead of the May 10 elections because the NPA has attacked politicians who refused to pay so-called "permit to campaign" fees.
     Garcia said the insurgents have been extorting up to 1 mln pesos each from certain politicians.
     The NPA ambushed House of Representatives member Jose Solis in the Bicol region southeast of Manila last week after the legislator rebuffed the rebels' extortion attempts.
     The military this week also expressed alarm after the NPA used rocket-propelled grenades and anti-tank weapons in an attack on a power plant south of Manila Saturday that left eight people dead, an air force statement said.
     Garcia said the rebellion has been "effectively contained and to a certain degree turned around by the armed forces for the past calendar year."
     President Gloria Arroyo, who is seeking another term in the May polls, announced yesterday that her government will resume peace talks with the NPA's political wing, the National Democratic Front, in Norway next month despite the recent spate of rebel attacks.
     Garcia said senior military officials have expressed their reservations to Arroyo over an extended ceasefire with the NPA ahead of the polls because it would give the insurgents breathing room to conduct their activities and gather more support.
     (1 usd = 55.46 pesos)
 

 

Bank of the Philippine Islands says chairman wants to step down in March


     MANILA (AFX-ASIA) - Bank of the Philippine Islands said its chairman of 19 years Jaime Zobel de Ayala wants to step down as chairman and director of the bank effective March 24.
     In a disclosure, the country's second largest lender said Zobel's decision was "in line with his desire to pursue other interests which require his travels outside of the country for considerable periods of time."
     Zobel, who turns 70 in July, has served as BPI director for 24 years and chairman for 19 years.
     The bank said Zobel's successor will be elected during the organizational meeting of the board to be held after the annual general meeting on March 24.
     Meanwhile, BPI said the board elected Aurelio Montinola III as director of the bank, taking over from now Philippine Stock Exchange president Cayetano Paderanga Jr.
     Montinola is senior executive vice president and chief operating officer of BPI. He is also the concurrent president of BPI Savings Bank, the thrift arm of BPI.
     afxmanila@afxasia.com
 

 

Forex-Philippine peso extends falls on corporate dollar demand, short-covering


     MANILA (AFX-ASIA) - The peso closed at a new year-to-date low on dollar-buying by corporates and short-covering by banks, dealers said.
     They said sentiment on the local unit remains weak, also due to uncertainties on the political front following the Supreme Court decision nullifying the government's contract with a private consortium for the computerization of the May 10 polls.
     Another Supreme Court decision, ordering power distributor Manila Electric Co to roll back its rates to pre-Jan 1 levels, may have also weighed down the peso, dealers said.
     The peso closed at 55.460 to the dollar after trading between 55.360 and 55.500 on volume of 127 mln usd. It closed at 55.400 yesterday.
     "Corporate demand for dollars and short-covering by banks pulled down the peso today," a commercial bank dealer said.
     "Although the Supreme Court ruling on poll computerization has been priced in already, political concerns remain. There could also be some impact from the Meralco ruling."
     Unlike yesterday, however, the central bank was not seen in the market today, dealers said.
     The central bank was rumored to have unloaded dollars on the market yesterday to support the peso at 55.400.
     The dollar is expected to trade in a range of 55.400-55.550 tomorrow, dealers said.
     edelacruz@afxasia.com
 

 

FOCUS - Philippine Supreme Court ruling seen hurting Meralco, stock market


     MANILA (AFX-ASIA) - The Supreme Court today ordered Manila Electric Co (Meralco) to roll back its power rates to pre-Jan 1 levels, a development which analysts said is likely to weaken the listed power distributor's prices, as well as overall investor sentiment.
     The Energy Regulatory Commission (ERC) approved in November a provisional tariff hike of 0.12 pesos per kilowatthour, effective Jan 1.
     Meralco expected the additional tariff increase to boost its revenues by 1.9 bln pesos annually and help it undertake projects to improve its service and pay maturing loans.
     Prior to the Supreme Court ruling, foreign buying interest in Meralco had been seen over the past few days, largely on expectations of an earnings boost from the rate hike.
     The interest showed by foreigners in Meralco had encouraged local investors also to take a position regarding the stock, and this aggressive buying had pushed the price of Meralco B shares, available to foreign investors, to as high as 37.50 pesos yesterday from its end-2003 closing price of 24.25.
     Meralco A rose to as high as 21.75 yesterday from its end-2003 closing price of 15 pesos.
     Meralco B closed down 2.00 pesos at 34.50 today on profit-taking, while Meralco A was unchanged at 21.75.
     "Investors had priced in the rate hike as early as December last year, so you can expect them to sell their holdings tomorrow," Citiseconline.com analyst Mark Alan Canizares said.
     AB Capital Securities research director Jose Vistan Jr said the court decision was "disappointing," noting he had even been forecasting Meralco's B shares to rise to as high as 50 pesos by year-end.
     ING Financial Markets, in a research note issued before the court ruling was made public, said it is maintaining a 'buy' call for Meralco with a 12-month target price of 40 pesos for its B shares.
     ING said it sees Meralco, which provides electricity in metropolitan Manila and nearby provinces, benefiting from possible "political continuity," given President Gloria Arroyo's "good chance" of being re-elected in the May elections.
     "We see Meralco as one of the biggest beneficiaries of political continuity, as reforms in the sector should continue. Under such a scenario, we see Meralco's (B) share price at 40 pesos by end-2004," ING said.
     "A return to regulatory predictability, coupled with successful debt refinancing, should result in a lower risk premium for Meralco," it said.
     The Supreme Court has directed Meralco "to observe the status quo prevailing before the filing of the petition" against the rate hike and to comment on the petition within a non-extendible period of 10 days from the company's receipt of the decision.
     Advocacy groups, led by the Freedom From Debt Coalition (FDC), filed the petition with the Supreme Court on Dec 23, arguing that the ERC has no jurisdiction under the Energy and Power Industry Reform Act to issue provisional orders.
     The ERC has been holding public hearings on Meralco's rate hike since late last year, and under the law the regulator will have to conclude the hearings within 12 months, after which a final determination on Meralco's rates will be made.
     Meralco president Jesus Francisco said the wording of the Supreme Court ruling is difficult to interpret, so they had to consult with their lawyers first before making their next move.
     "If the rate hike stays, then we will just prepare for oral arguments set for Jan 27, but, if not, we may have to file for a motion for reconsideration, " he told AFX-Asia.
     President Gloria Arroyo, who is seeking a full six-year term in the May polls, earlier appealed to the ERC to reconsider its decision to allow Meralco to raise its rates after she faced criticism and accusations that the hike is part of a political arrangement with the Lopez family, who control the power firm.
     Analysts said the Supreme Court ruling, if made final, will certainly hurt Meralco.
     Meralco is implementing a refund program as ordered by the Supreme Court in April 2003, which it expects to cost some 30 bln pesos, representing overcharging dating back to 1994.
     ING said it found the ongoing public hearings by ERC on Meralco's provisional 0.12 pesos per kilowatthour rate increase to be in accordance with the power reform law.
     Although Arroyo had urged the ERC to reconsider the rate increase, "she has not come out and ordered the ERC to revoke Meralco's rate increase," it said.
     "We find this encouraging, and see this as another step towards re-establishing investor confidence in the sector," ING said.
     Citiseconline.com's Canizares noted "rarely does the Supreme Court reverse its decision."
     But he said "brave investors" who are forward-looking may prefer to hold on to their equity investments, given the prospects for an economic upturn this year, which have been the main driver of the market's continued rise since last year.
     "Those who still believe that the economic environment will be better this year may just be waiting for stock prices to go down before entering the market again and accumulating more shares," he said.
     (1 usd = 55.46 pesos)
     afxmanila@afxasia.com
 

 

Philippine energy dept, Netherland's Premier Oil sign petroleum service deal


     MANILA (AFX-ASIA) - The Department of Energy said it will sign a service contract with Premier Oil Philippines BV of the Netherlands today to explore possible petroleum reserves in the Southeast Luzon basin.
     The new service contract, the first in six years, will cover the Ragay Gulf and parts of Bondoc Peninsula, comprising an area of 1.08 mln hectares within southern Luzon.
     Energy Secretary Vincent Perez and Premier Oil director Peter Cockroft will sign the contract at 5 pm today.
     "The signing of a new service contract over Ragay Gulf represents the beginning of a new phase of petroleum exploration in the Philippines, Perez said in a statement.
     "Several studies had been made confirming the considerable petroleum reserves in the country. We are positive that the Ragay Gulf is a promising site that may one day deliver oil and boost our energy self-sufficiency," he said.
     The deal is expected to bring about 4.6-12.6 mln usd worth of investments in the exploration stage alone, he added.
     The exploration phase will involve a seven-year term, extendible for three more years to test the commercial viability of the field in the event of an oil discovery.
     Premier Oil is expected to drill four wells over the seven-year exploration stage, with the first two years spent conducting geological and geophysical studies.
     Once the commercial viability of the field is determined, the production phase will follow and Premier Oil's service contract will automatically be extended for 25 year. The could also be a further final extension of 15 years.
     Premier Oil Philippines, incorporated in the Netherlands, is a subsidiary of Premier Oil Plc of the UK.
     The Philippines' latest petroleum service contract, SC 42, was signed in Oct 1998 with Australia's Nido Petroleum, covering an area in offshore Northwest Palawan.
     (1 usd = 55.385 pesos)
     afxmanila@afxasia.com
 

 

Philippine Supreme Court halts Meralco's 0.12 peso/kwh rate hike


     MANILA (AFX-ASIA) - The Supreme Court ordered Manila Electric Co (Meralco) today to roll back its power rates to the levels before Jan 1, 2004, when it began implementing an Energy Regulatory Commission-approved provisional tariff hike of 0.12 peso per kilowatthour.
     The Supreme Court directed Meralco "to observe the status quo prevailing before the filing of the petition."
     Acting on a petition against the rate increase, the Supreme Court ordered Meralco to comment on the petition within a non-extendible period of 10 days from the company's receipt of the decision.
     Advocacy groups, led by the Freedom From Debt Coalition (FDC), filed the Supreme Court petition.
     Supreme Court spokesman Ismael Khan said the ruling means Meralco will, in effect, have to roll back its power rates to the level prevailing before Jan 1 this year.
     Asked to comment on the Supreme Court decision, Meralco president Jesus Francisco said the company has asked its lawyers to "interpret" the ruling.
     "If the rate hike stays, then we will just prepare for oral arguments set for Jan 27, but, if not, we may have to file for a motion for reconsideration, " he told AFX-Asia in a telephone interview.
     Later in a television interview, Francisco said that whatever the Supreme Court ruling is, "we will have to comply...and I think there's no question about that."
     The FDC filed the petition on Dec 23 last year asking the court to stop the implementation of the rate hike, arguing that the ERC has no jurisdiction under the Energy and Power Industry Reform Act to issue provisional orders.
     The ERC has been holding public hearings on Meralco's rate hike since late last year, and under the law the regulator will have to conclude the hearings within 12 months, after which a final determination on Meralco's rates will be made.
     President Gloria Arroyo earlier appealed to the ERC to reconsider its decision to allow Meralco to raise its rates after she faced criticism and accusations that the hike is part of a political arrangement with the Lopez family, who control the power firm.
     The rate hike is the second for Meralco since May, when the ERC approved a 0.0865 pesos per kWh increase in its distribution rate through the unbundling of power charges.
     Meralco expected the additional tariff increase to boost its revenue by 1. 9 bln pesos annually and help it undertake projects to improve its service and pay maturing loans.
     Meralco, which retails electricity in metropolitan Manila and nearby provinces, is implementing a refund program as ordered by the Supreme Court in April 2003.
     Meralco expects the refund of overcharges dating back to 1994 to cost it some 30 bln pesos.
     (1 usd = 55.40 pesos)
     afxmanila@afxasia.com
 

 

Philippines' Smart end-Dec subscribers more than 13 mln, 1 mln up on end-Oct


     MANILA (AFX-ASIA) - Smart Communications Inc, the wireless unit of Philippine Long Distance Telephone Co (PLDT), said it ended 2003 with more than 13 mln subscribers, around one mln more than at the end of October.
     In its 2003 accomplishment report, the company said it now serves more than 13 mln subscribers using around 4,000 cell sites all over the country.
     Smart's cell sites now cover 80 pct of the country's total population, or approximately 67 mln people nationwide.
     The company, however, said its network roll-out continues, and is now concentrating on more remote areas where cellular penetration is low or even almost zero.
     Smart is training its sights on lower-income subscribers, particularly those in the rural areas, by offering wider coverage, more affordable handsets and prepaid services there.
     afxmanila@afxasia.com
 

 

Philippines to revert to manual election count after court setback - Arroyo


     MANILA (AFX-ASIA) - President Gloria Arroyo said today elections in the Philippines must proceed as scheduled on May 10 even if votes have to be counted manually after the Supreme Court scrapped a contract for automated polls.
     Citing what it called bidding irregularities, the court yesterday nullified a government contract with a private consortium for vote-counting computer systems.
     The decision sparked fears of a postponement of the hotly-contested race for the president's post.
     Arroyo is facing five challengers, including popular movie icon Fernando Poe, in the elections, for which up to 40 mln people are registered to vote.
     Some legislators have called for a postponement of up to one month to allow the government to put in place its backup plan for conducting the vote.
     "I have trust in the capability of the Comelec (government poll watchdog Commission on Elections) as an institution to implement clean and credible elections under the law and jurisprudence," Arroyo told a news conference.
     "The elections and the institution of elections are very important to our political stability and economic stability, and we must focus our efforts and capability to implement the elections as scheduled," she said.
     "The future of our democracy is at stake."
     Arroyo spokesman Ignacio Bunye said the president held an emergency meeting with Comelec chief Benjamin Abalos and senior political leaders following the judicial setback.
     He said Arroyo respected the ruling of a co-equal branch of government. "We should be prepared for the possibility of manual counting."
     Abalos separately said Comelec will appeal the court ruling.
     Comelec officials have said the computerized system will allow it to finish the vote count in 30 hours, unlike in previous elections when it took several days, even months, before the winners were named.
     They said the new system will also help curb rampant cheating, which has marred previous elections.
     The voters will also choose a vice president, 12 senators, the congressmen for their districts, as well as provincial executives.
 

 

Philippine Supreme Court orders Meralco not to impose 0.12 peso/kwh rate hike


     MANILA (AFX-ASIA) - The Supreme Court ordered Manila Electric Co (Meralco) today to roll back its power rates to the levels before Jan 1, 2004, when it began implementing an Energy Regulatory Commission-approved provisional tariff hike of 0.12 peso per kilowatthour.
     The Supreme Court directed Meralco "to observe the status quo prevailing before the filing of the petition."
     Acting on a petition against the rate increase, the Supreme Court ordered Meralco to comment on the said petition within a non-extendable period of 10 days from the company's receipt of the decision.
     Advocacy groups, led by the Freedom From Debt Coalition, filed the Supreme Court petition.
     Supreme Court spokesman Ismael Khan said the ruling means Meralco will, in effect, have to roll back its power rates to the level prevailing before Jan 1 this year.
     Asked to comment on the Supreme Court decision, Meralco president Jesus Francisco said the company has asked its lawyers to "interpret" the ruling.
     "If the rate hike stays, then we will just prepare for oral arguments set for Jan 27, but, if not, we may have to file for a motion for reconsideration, " he told AFX-Asia in a telephone interview.
     (1 usd = 55.40 pesos)
     afxmanila@afxasia.com
 

 

Philippines' Primetown says rehabilition plan involves fresh capital infusion


     MANILA (AFX-ASIA) - Primetown Property Group Inc said a group connected with its principal shareholders will re-capitalize the company as part of its rehabilitation plan.
     The company gave no other details in its Jan 12 letter to the stock exchange, but said the re-capitalization will be made upon the approval and implementation of the rehabilitation plan.
     A Philippine regional court earlier stopped the enforcement of all claims against Primetown following its petition to be placed under rehabilitation.
     The company earlier reported a net loss of 335.56 mln pesos for 2002 on revenue of 110.677 mln pesos, and costs and expenses of 446.016 mln.
     (1 usd = 55.40 pesos)
     edelacruz@afxasia.com
 

 

BROKER CALL - First Philippine Holdings rated 'buy' on possible cash div -ING


     MANILA (AFX-ASIA) - ING Financial Markets said it has revised its call on First Philippine Holdings Corp to "buy" from "hold" on the back of an expected cash dividend this year.
     "An expected cash dividend in 2004 should address investors' concerns over parent company risk," ING said in a Jan 14 research note.
     It said First Holdings, parent of Manila Electric Co (Meralco) and power producer First Gas Power Corp, can afford to pay at least a 2.00 pesos cash dividend.
     "Management has indicated plans of paying a cash dividend in the first half of 2004," ING said, noting that such a dividend would more importantly address concerns that First Holdings' cash flow would be channeled solely to its parent, Benpres Holdings Corp.
     ING also noted that the completion of the re-negotiation of Meralco's power supply contract with First Gas has eased regulatory risk involving First Holdings.
     Meralco said it expects a 0.01 peso per kilowatthour (kWh) decline in its overall cost of purchased power after having renegotiated its supply deal with First Gas.
     Based on Dec 2003 purchases from First Gas, which supplied roughly a third of Meralco's power requirements in the month, Meralco expects an immediate fall of 0.031 peso per kWh in power costs and a 0.01 per kWh cut in overall cost of purchased power.
     Under the new agreement, First Gas will shoulder local business and community taxes for its plant operations while supplying to Meralco.
     First Gas also accepted conditional concessions, including increasing discounts for Meralco on electricity rates, paying Meralco higher "penalties for non-performance" and not charging Meralco for energy delivered beyond the contracted amount until 2011.
     First Holdings closed today up 1.50 pesos at 26.
     (1 usd = 55.40 pesos)
     edelacruz@afxasia.com
 

 

BROKER CALL- Philippines' Meralco price seen at 40 pesos/shr by end-2004 - ING


     MANILA (AFX-ASIA) - ING Financial Markets said it is maintaining a 'buy' call on Manila Electric Company (Meralco) with a 12-month target price of 40 pesos for its B shares, as the company is seen benefiting from possible "political continuity," given President Gloria Arroyo's "good chance" of being re-elected in the May elections.
     "We see Meralco as one of the biggest beneficiaries of political continuity, as reforms in the sector should continue. Under such a scenario, we see Meralco's (B) share price at 40 pesos by end-2004," ING said in a research note.
     "A return to regulatory predictability, coupled with successful debt refinancing, should result in a lower risk premium for Meralco," it said.
     Foreign buying interest in Meralco shares had been sustained over the past few days, pushing the price of its B shares, which are available to foreign investors, to as high as 37.50 pesos yesterday from its end-2003 closing price of 24.25.
     Meralco A rose to as high as 21.75 yesterday from its end-2003 closing price of 15 pesos.
     Meralco B closed down 2.00 pesos at 34.50 today on profit-taking, while Meralco A was unchanged at 21.75.
     ING said it found the ongoing public hearings on Meralco's provisional 0. 12 pesos per kilowatthour rate increase, which the Energy Regulatory Commission allowed to be implemented starting Jan 1, to be in accordance with the power reform law.
     Although Arroyo had urged the ERC to reconsider the rate increase, "she has not come out and ordered the ERC to revoke Meralco's rate increase," it said.
     "We find this encouraging, and see this as another step towards re-establishing investor confidence in the sector," ING said.
     Meralco expects the rate increase to boost its revenues by about 1.9 bln pesos annually.
     ING also expects Meralco's short-term creditors to agree to extend the maturity of some 4.7 bln pesos loans by at least another six months, while a bond offering in the first quarter should help resolve the company's impending debt maturity problems.
     A local newspaper earlier quoted Meralco president Jesus Francisco as saying that the firm is in talks with creditors to extend payment on maturing loans by another six months.
     The short-term loans are due this month. The company was already granted a 6-month extension by creditors last year.
     The country's biggest power retailer, whose franchise covers metropolitan Manila, is also reportedly seeking to convert the loan maturity to long-term.
     But this might not be allowed by creditors until Meralco is able to float bonds, Francisco added.
     Meralco is considering a 200-mln usd bond issue as an option to raise its financing requirements.
     (1 usd = 55.40 pesos)
     edelacruz@afxasia.com
 

 

Manila shares close higher on positive earnings outlook


     MANILA (AFX-ASIA) - Share prices closed firmer, but off-highs, with the bright earnings outlook for selected blue chips sustaining the buying momentum that started on the first trading week of the year, dealers said.
     The market's rise was however capped by last-minute profit-taking on top-traded Philippine Long Distance Telephone Co (PLDT).
     Investors discounted the decision of the Supreme Court nullifying an automated system for the May general elections, despite concerns that reverting to manual vote counting may lead to delays in the conduct of the polls.
     The 30-company composite index closed up 18.13 points or 1.20 pct at 1, 525.30 on 395.35 mln shares worth 1.51 bln pesos. It traded between 1,504.98 and 1,533.32.
     In the broader market, gainers beat losers 35 to 28, with 36 stocks unchanged.
     PLDT shed 15.00 pesos to 920.00 on 416,100 shares, giving up gains of as much as 20.00 pesos made in early to mid-trade.
     Dealers said investors remain bullish about the Philippine market, largely ignoring developments on the political front.
     The Supreme Court yesterday nullified a Commission On Elections (Comelec) contract with a private group for the computerization of the May elections.
     Without the automated system, the poll body will have to count votes manually, which may take weeks or even a month.
     Support for the market remains at 1,480, with resistance at 1,550, dealers said.
     "Sometimes, investors discount bad news based on the market's momentum. Sentiment remains bullish, despite some stocks reaching overbought levels, given the positive earnings expectations for 2003 and this year," Regina Capital Development analyst Gomer Tan said.
     DA Market Securities president Nestor Aguila said investors remain hopeful of a peaceful and orderly elections, adding that whoever is elected should be welcomed by the market as the leader with the people's mandate.
     President Gloria Arroyo came into power after her predecessor Joseph Estrada was ousted by a mass people uprising in early 2001. Arroyo was then vice-president.
     "All Asian markets have been projecting growth. In the case of the Philippines, expectations are that earnings will be intact, and economic growth will be intact (regardless of whoever wins)," Aguila said.
     San Miguel A was up 0.50 pesos at 56 on 3.1 mln shares, while San Miguel B gained 2.50 at 69 on 1.05 mln shares.
     Meralco B, open to foreigners, shed 2.00 pesos to 34.50 on 3.7 mln shares. Meralco A was unchanged at 21.75 on 1.04 mln shares. Profit-taking emerged after the stocks reached overbought levels, dealers said.
     Globe Telecom shed 10 to 900 on 117,820 shares.
     Ayala Corp gained 0.20 to 6.00 on 15.96 mln shares, while property unit Ayala Land was unchanged at 6.20 on 7.12 mln shares.
     Equitable PCI gained 5.00 pesos to 43 on 1.85 mln shares.
     Moody's Investors Service has affirmed its bank financial strength ratings of D for Banco de Oro Universal Bank and D- for Equitable PCI Bank, both with stable outlooks.
     The ratings came a week after Banco De Oro reported its plan to buy a stake in Equitable PCI.
     In a statement, Moody's said the affirmation reflects its belief that Banco de Oro's planned purchase of Equitable PCI shares from state-run Social Security System (SSS) is "unlikely to have a significant impact on the banks' financial fundamentals."
     SM Prime shed 0.10 to 6.30 on 9.58 mln shares.
     First Holdings gained 1.50 to 26.
     Bank of the Philippine Islands was up 2.00 at 51.50.
     The all-shares index was up 7.73 points at 919.62.
     The commercial-industrial index rose 12.48 to 2,303.18.
     Property was up 1.61 at 577.19, while mining was down 15.76 at 1,609.89.
     Oil was down 0.01 at 1.32.
     Banking and financial services gained 19.28 to 483.62.
     (1 usd = 55.385 pesos)
     cecille.yap@afxasia.com

 

Philippines' Banco de Oro, Equitable PCI ratings affirmed - Moody's


     MANILA (AFX-ASIA) - Moody's Investors Service said it has has affirmed its bank financial strength ratings of D on Banco de Oro Universal Bank and D- on Equitable PCI Bank, both with stable outlooks.
     In a statement, Moody's said the affirmation reflects its belief that a transaction involving Banco de Oro's planned purchase of Equitable PCI shares from state-run Social Security System (SSS) is "unlikely to have a significant impact on the banks' financial fundamentals."
     The agency also noted that it remains uncertain as to whether corporate action with potential implications could arise from the said transaction over the longer term.
     "The credit ratings of Banco de Oro and Equitable PCI, currently on review for downgrade together with the Philippines' sovereign ratings, do not reflect bank-specific issues," Moody's said.
     SSS, the pension fund for private sector workers, has agreed to sell its Equitable PCI shares to Banco de Oro in a surprise move that has fueled speculation of a merger between the two banks.
     Banco de Oro is the country's ninth largest bank in terms of assets, which totaled 135.2 bln pesos as at Sept 19, 2003.
     Equitable PCI is the country's third largest lender, with assets totaling 288.2 bln pesos as at Sept 19, 2003.
     The SSS-Banco de Oro deal, which is still subject to regulatory approvals, involves Banco de Oro, which retail tycoon Henry Sy Sr controls, acquiring some 187.85 mln Equitable PCI shares.
     These shares represent a 25.8 pct stake, based on the outstanding total of 727.003 mln shares, or an effective control of 29 pct, if the interest of EBC Investments Inc, Equitable PCI's wholly-owned subsidiary, is deducted.
     Banco de Oro will pay SSS 43.50 pesos for each Equitable PCI share, or a 30 pct premium over the stock's end-2003 closing price.
     At 11.03 am, Equitable PCI was up 3.00 pesos at 41.00, while Banco de Oro was up 0.25 at 18.25.
     Under their agreement, Banco de Oro will make a cash down-payment to the SSS of 1 bln pesos, while the balance of 13 bln will be secured through a 6. 5-year zero-coupon non-amortizing promissory note.
     However, while Banco de Oro has said it does not have an immediate plan to merge with Equitable PCI. The Go family, who founded Equitable Bank, is reportedly not willing to sell out to the Sy group or any other parties.
     The Go family founded Equitable Bank, which absorbed Philippine Commercial International Bank a few years back, and also has a stake of at least 20 pct in Equitable PCI.
     Moody's said it expects Banco de Oro "to weather the cost of the transaction, given the relatively small cash outlay involved, and its access to funding from committed major shareholders, as well as the capital market."
     It added that "the realization of synergies between the banks is unlikely in the near term given the autonomous operations of the two banks."
     (1 usd = 55.40 pesos)
     edelacruz@afxasia.com

 

STOCKWATCH - Singapore's Beyonics higher on positive earnings outlook


     SINGAPORE (AFX-ASIA) - Electronics contract manufacturer Beyonics was higher in mid-morning trade on expectations of a positive earnings performance in the current fiscal year to July 2004 as the company begins to benefit from its merger with Flairis Technology in July last year, dealers said.
     Beyonics' five-for-two share consolidation, which took effect today, should have theoretically adjusted the share price to 0.75 sgd, dealers said.
     At 12.11 pm, Beyonics was up 0.03 sgd, or 4.00 pct, at 0.78, off a high of 0.81, on volume of 17.9 mln shares.
     The Straits Times Index was up 5.95 points at 1,867.51.
     UOB Kay Hian analyst Jonathan Koh said Beyonics is beginning to attract some institutional interest.
     "There is an earnings upside for Beyonics, following the merger with Flairis," he said.
     Beyonics had said in Sept 2003 that it expects sales to reach 800-900 mln in the year to July 2004 from 554.77 mln sgd in the previous year.
     But another analyst with a foreign brokerage said she has a "hold" call on Beyonics as she believes its already thin margins will come under pressure as a result of the strengthening of the Singapore dollar against the US dollar.
     (1 usd = 1.69 sgd)
     singapore@afxasia.com

 

Manila shares slightly higher on positive earnings outlook


     MANILA (AFX-ASIA) - Share prices were firmer in mid-trade led by Philippine Long Distance Telephone Co (PLDT) on the back of a positive earnings outlook for select Philippine firms, dealers said.
     Investors shrugged off the Supreme Court's decision to cancel an automated system for the May general elections, still hopeful of a peaceful and orderly poll despite expectations of a long and tedious manual counting of votes ahead.
     At 10.50 am, the 30-company composite index was up 22.06 points or 1.46 pct at 1,529.23 on 141.06 mln shares worth 726.37 mln pesos. It has so far traded between 1,504.98 and 1,533.32.
     In the broader market, gainers beat losers 26 to 12, with 32 stocks unchanged.
     Most active PLDT was up 20 pesos at 955 on 190,690 shares.
     Buying interest in PLDT resumed after it hit 935 pesos yesterday.
     Dealers said the market remains strongly supported at the 1,480 level, while resistance is seen at 1,550.
     "People felt going back to a manual counting of vote is a non-issue. As a whole, the market is quite bullish irrespective of whatever news on the political front," DA Market Securities president Nestor Aguila said.
     The Commission on Elections (Comelec) is set to ask the Supreme Court to reconsider its decision nullifying the poll body's contract with the Mega Pacific Consortium for the computerization of the May 10 elections, Comelec chairman Benjamin Abalos said.
     The decision followed an "emergency meeting" at the presidential palace last night between President Gloria Arroyo with Comelec and congressional leaders.
     Comelec officials said the computerized system is supposed to allow the poll body to finish the vote counting in 30 hours, unlike in previous elections when it took several days, even months, before the winners were named.
     Ayala Corp was up 0.20 pesos at 6.00 on 12.4 mln shares, while unit Ayala Land gained 0.10 to 6.30 on 5.01 mln shares.
     Ayala's Bank of the Philippine Islands was up 1.50 at 51 on 454,800 shares.
     San Miguel B, open to foreigners, was up 2.50 at 69, while San Miguel A was unchanged at 55.50.
     Meralco B shed 1.00 to 35.50, while Meralco A was down 0.50 at 21.25. Dealers said investors have started to pocket gains made in previous days.
     Piltel was up 0.10 at 1.32 on 13.97 mln shares.
     Filinvest Land gained 0.04 to 1.14 on 11.48 mln shares.
     Equitable PCI Bank was up 2.50 at 40.50 on 288,000 shares.
     The all-shares index was up 6.42 at 918.31.
     The commercial-industrial index rose 28.91 to 2,319.61.
     Property was up 3.38 at 578.96.
     Mining and oil were unchanged at 1,625.65 and 1.33, respectively.
     Banking and financial services gained 12.53 at 476.87.
     (1 usd = 55.389 pesos)
     cecille.yap@afxasia.com

 

ADB approves 75 mln usd investment/loan guarantee for India's LNG terminal


     MANILA (AFX-ASIA) - The Asian Development Bank (ADB) said it approved today a 75 mln usd equity investment and partial credit guarantee for a project to develop India's first liquefied natural gas (LNG) terminal.
     The LNG import and re-gasification terminal will be constructed and operated under a build-operate-transfer scheme, with commercial operations expected to start in April this year.
     The terminal will have a capacity of 5 mln tons per annum and will be built at Dahej in the state of Gujarat, the Manila-based bank said in a statement.
     ADB will subscribe up to a 5.2 pct stake in Petronet LNG Ltd (PLL), the company developing the 547 mln usd project under a 30-year concession agreement with Gujarat Maritime Board.
     Sponsoring PLL are Bharat Petroleum Petroleum Corp Ltd, GAIL (India) Ltd, Indian Oil Corp Ltd, Oil and Natural Gas Corp Ltd, and Gaz de France subsidiary GDF International.
     "The project is designed to promote economic growth by meeting the rising energy demands of north and west India and providing lower cost and cleaner fuel for oil, power, transport and fertilizer sectors, said ADB Structured Finance specialist Kurumi Fukaya.
     "As a public-private partnership, it should provide a model for good practise in energy infrastructure development. It is a step towards the full liberalization of the energy sector."
     ADB's partial credit guarantee will support a PLL bond issue of up to about 148.9 mln usd without a government counter-guarantee.
     The bank said it is the first long-term partial credit guarantee to be provided through its private sector operations and the first usage of such a facility to help develop the local currency bond market.
     edelacruz@afxasia.com

 

STOCK ALERT - Philippines' Meralco slightly lower on profit-taking


     MANILA (AFX-ASIA) - Manila Electric Co shares bucked the market's rise trading slightly lower as investors started to pocket gains after its sharp ascent that begun last week, dealers said.
     Meralco B, open to foreigners, was down 0.50 pesos at 36 on volume of 1. 09 mln shares. Meralco A was down 0.25 at 21.50 on 317,900 shares.
     "Lopez-led stocks are now correcting because they have been at extremely overbought levels," DA Market Securities president Nestor Aguila said.
     He added that sentiment on the stocks remains generally upbeat thanks to a provisional 0.12 pesos per kilowatthour rate increase the company started implementing this month.
     (1 usd = 55.388 pesos)
     cecille.yap@afxasia.com

 

Philippines' Comelec to appeal against court's poll computerization ruling


     MANILA (AFX-ASIA) - The Commission on Elections (Comelec) will ask the Supreme Court to reconsider its decision nullifying the poll body's contract with the Mega Pacific Consortium for the computerization of the May 10 elections, Comelec chairman Benjamin Abalos said.
     The decision followed an "emergency meeting" at the presidential palace last night between President Gloria Arroyo with Comelec and congressional leaders, television news reports said.
     Citing bidding irregularities, the Supreme Court yesterday ruled to nullify the 1.2-bln peso contract that would have allowed the use of automated machines in the counting of votes in the May polls.
     Comelec officials said the computerized system is supposed to allow the poll body to finish the vote counting in 30 hours, unlike in previous elections when it took several days, even months, before the winners were named.
     They said the new system will also help curb rampant cheating, which had marred previous elections.
     Without the automated system, the poll body will have to count votes manually.
     At stake in the polls are the country's presidency and vice presidency, 12 senatorial seats and positions for congressmen, city and provincial governors, vice governors, mayors, vice mayors and local government councilors.
     (1 usd = 55.40 pesos)
     edelacruz@afxasia.com

 

Philippines' ICTSI appoints new chief financial advisor


     MANILA (AFX-ASIA) - Port operator International Container Terminal Services Inc (ICTSI) said its board of directors has appointed Martin O'Neil as the company's new chief financial advisor and as senior vice president and chief financial officer of fully-owned subsidiary ICTSI Ltd.
     O'Neil will assume the positions previously held by Noel Mirasol, who has retired from the company, ICTSI told the stock exchange.
     edelacruz@afxasia.com

 

Philippines hike vessel charges at Manila ports in 2004/2005 - ICTSI


     MANILA (AFX-ASIA) - The Philippine Ports Authority (PPA) has approved a 5. 0 pct increase in vessel charges at the South Harbor and the Manila International Container Terminal (MICT) effective January this year, port operator International Container Terminal Services Inc (ICTSI) said.
     A further 9.0 pct increase in vessel charges from 2003 levels will be implemented in 2005, the ICTSI said in a statement to the stock exchange.
     ICTSI applied for the rate increases to cover the increase in its operation costs due to the depreciation of the peso against the US dollar and other major foreign currencies, higher fuel costs and utility charges, and the increases in manpower and insurance costs.
     At 9.51 am, ICTSI was untraded after closing at 3.40 pesos previously.
     (1 usd = 55.40 pesos)
     edelacruz@afxasia.com

 

Philippine central bank approves incentive to encourage bank mergers


     MANILA (AFX-ASIA) - The central bank has approved a new incentive for banks to merge and consolidate to strengthen the Philippine banking sector, central bank deputy governor Alberto Reyes said.
     The central bank's policy-making Monetary Board approved the lifting of the moratorium on branching for merging and consolidating banks, provided that the area where their branches are to be set up has only three or fewer banks, Reyes said.
     Without this incentive, which is effective immediately, a complete moratorium on bank branching remains under the General Banking Act.
     The incentive will be reviewed after a year of implementation to determine its effect on the sector.
     The central bank is preparing other incentives to encourage mergers, Reyes said.
     cecille.yap@afxasia.com

 

Philippines' PSi Technologies to shift half of production to China - report


     SHANGHAI (AFX-ASIA) - PSi Technologies, a Philippine-based chip testing and packaging firm, plans to shift half of its production to the mainland, the South China Morning Post reported.
     Arthur Young, chairman and chief executive of the Nasdaq-listed company, was quoted as saying that he expected to see more to follow suit as the world's semiconductor companies move closer to China's manufacturing economy, home to many of their clients.
     The move will create 1,500 jobs in China, the report said, but did not specify how many will be lost in the Philippines.
     PSi, which supplies assembly and test services to companies such as Infineon Technologies and Texas Instruments, signed a deal with the Chengdu government in China's southwest to set up a 4,000 square meter factory, the report said.
     The first phase of the project, estimated to cost 20 mln usd, is expected to be completed early next year.
     The report quoted industry research house iSuppli as saying that the market for assembly and test services on the mainland is expected to reach 10. 3 bln usd by 2007, from 3.6 bln in 2002.
     david.wilder@afxasia.com

 

Australian Stock Exchange says not in any talks with Philippine Exchange


     SYDNEY (AFX-ASIA) - The Australian Stock Exchange said it is not in any talks with the Philippine Stock Exchange regarding any stake purchase or tie up.
     "ASX wishes to clarify that it is not in any discussions, formal, informal or otherwise, with the Philippine Stock Exchange regarding purchasing a stake in that exchange or any other form of ownership or strategic alliance with that exchange," it said in a statement.
     Yesterday, the PSE said it was in informal talks with representatives of the Australian Stock Exchange for a possible strategic investment in the local bourse, but no agreement had been reached.
     lyndal.mcfarland@afxasia.com

 

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