NEWS &
ADVISORY
ARCHIVE
| FEATURES | NEWS/ADVISORY | CHARTS | CONTACT |
Thursday January 22, 2004
Forex
- Philippine peso at 8-wk low on short-covering, corporate dollar demand
Philippine
banks' end-Nov NPL ratio 14.79 pct vs 15.12 pct in Oct
Philippines'
Petron setting up unit to operate company-owned service stations
Philippines'
PLDT, Benpres agree to inject additional capital into cable unit
Court
orders transfer of Marcos Swiss bank funds to Philippine Treasury
Philippines'
Meralco remains 'stressed' despite debt rollover deal - S&P
OUTLOOK
- Philippine 2003 GDP growth at 4-4.5 pct; 2004 GDP seen at 4.5-5 pct
Philippines'
Meralco completes three capital projects in Dec 2003
Manila
shares close flat on last-minute profit-taking
Philippines'
Banco de Oro, Jardine Properties in property development jv
Philippines'
San Miguel says may appeal in court against BIR tax ruling
Philippine
economy to grow 4.5 pct in 2004 - ADB country director
Prototype
vaccine to shield humans from Avian flu being readied for tests -WHO
STOCK
ALERT - Philippines' Meralco up on debt rollover
Manila
shares slightly higher on rotational interest
STOCK
ALERT - Philippines' Piltel lower on profit-taking
Bank
of the Philippine Islands parent NPL ratio 7.14 pct as of Dec 16
STOCK
ALERT - Philippines' Digitel higher on settlement of dispute with NEC
Philippines
to release 2003 GDP data on Jan 29
Manila
shares outlook - Mixed to higher on extended buying momentum
Philippines'
Metrobank NPL ratio 13.69 pct as of Dec 16
Philippines'
Security Bank NPL ratio 10.85 pct as of Dec 16
Wednesday January 21, 2004
Philippines'
Digitel, Japan's NEC settle supply contract dispute
Philippines'
Meralco asks ERC to lengthen third phase of refund to 12 months
Philippines
Jan CPI seen up 3.0 pct yr-on-yr - Neri
Philippines
2003 agricultural output up 3.77 pct vs 4.12 pct
Philippine
movie-star presidential candidate seeks to reassure business
Philippines'
PSALM to sell small power plants in Q1
Philippine
Meralco says 88 mln usd short-term loan rolled over until March
Philippine'
Estrada decries 'hatchet job' on movie icon seeking presidency
Philippines'
Active Alliance suspends electronics manufacturing operation
Philippines
Supreme Court rejects appeal of airport terminal consortium
Manila
shares close firmer on earnings prospects; index at 34-mth high
Philippines'
Fil-Hispano bid to increase capital wins SEC approval
Philippines'
Arroyo rejects criticism over leadership
Manila
shares firmer on positive corporate news, earnings prospects
STOCK
ALERT - Philippines' Petron up on better earnings, dividend hopes
STOCK
ALERT - Philippine Meralco shares firmer on debt rollover
STOCK
ALERT - Philippines' Piltel extends gains on Smart merger speculation
Philippines'
Meralco to sign debt rollover deal with creditors today
Philippine
Savings Bank sets record, payment dates for 1.00 peso cash dividend
Philippines'
Ayala Corp declares 20 pct stock dividend
Philippines'
National Steel creditors approve Indian firm's bid - report
Union
Bank of the Philippines NPL ratio 13.87 pct as of Dec 16
Philippines'
Equitable PCI Bank NPL ratio 14.80 pct as of Dec 16
Forex
- Philippine peso recovers slightly as US dollar demand eases
Philippines Meralco may be downgraded if it fails to pay debt due Jan 21 - S&P
January 19 -20
January 16 -17
January 14 -15
January 12 - 13
January 8 -
9
January 6 - 7
January 04 - 05
| Forex - Philippine peso at 8-wk low on short-covering, corporate dollar demand |
MANILA (AFX-ASIA) - The peso closed at its weakest level against the US dollar in almost eight weeks as banks resumed covering short dollar positions while oil companies were in the market for their importation requirements, dealers said. They said the market will likely test the 55.750 level tomorrow, and if that is breached, they see the peso hitting its all-time low of 55.850, or even lower. The peso closed at 55.680 to the dollar after trading between 55.560 and 55.680 on volume of 139.5 mln usd. It closed at 55.560 yesterday. Today's level was the peso's weakest level since Nov 28 last year when it closed at 55.730. "After the peso's correction to 55.560 yesterday from 55.750 on Tuesday, the market resumed its dollar bias," a commercial bank dealer said. "After some profit-taking, banks have re-established their fresh long positions, while oil companies also bought dollars today." The central bank was not seen in the market today, he said. The dealer said the peso may be traded in the range of 55.650-55.750 tomorrow. edelacruz@afxasia.com |
| Philippine banks' end-Nov NPL ratio 14.79 pct vs 15.12 pct in Oct |
MANILA (AFX-ASIA) - Philippine commercial banks' non-performing loans (NPL) stood at 14.79 pct of their total loan portfolio as of end-November, against 15.12 pct at end-October, the central bank said. Outstanding loans of the commercial banking industry totaled 1.72 trln pesos as of end-November, up nearly 3.0 pct from the previous month. The industry's NPLs totaled 254.51 bln pesos, up less than 1.0 pct from end-October level. Banks had put up loan loss reserves of 126.94 bln pesos as of end-November, compared with 126.66 bln in October. The NPL coverage ratio, or the ratio of loan loss provisions to NPL, stood at 49.88 pct in November against 50.21 pct in the previous month. The industry's total assets reached 3.39 trln pesos as of end-November, up nearly 2.0 pct from the previous month. afxmanila@afxasia.com |
| Philippines' Petron setting up unit to operate company-owned service stations |
MANILA (AFX-ASIA) - Oil refiner Petron Corp said it is preparing to establish a subsidiary that would allow it to operate company-owned and company-operated (COCO) service stations nationwide. Incorporation papers of the new unit will be submitted to the Securities and Exchange Commission soon, the company said in a statement. "Our COCO stations will not only promote the Petron brand and image but will also give us an opportunity to quickly introduce innovations beyond the present services that are available in our stations," Petron's public affairs manager Virginia Ruivivar said. The company intends to put up nearly 30 COCO stations over a five-year period. The Board of Investments approved late last year the oil firm's application for pre-qualification to establish a retail enterprise under the Retail Trade Liberalization Act of 2004. Petron, being partly foreign-owned as Saudi Aramco owns a stake in the company, was previously not allowed under the Retail Trade Law to engage in direct retailing. The direct operation of its stations is expected to benefit the company's bottom line, Ruivivar said. "The establishment of Petron COCO service stations will allow us to capture other revenue streams, which include food and other consumer products and the direct franchising of complementary quick service restaurants," Ruivivar added. cecille.yap@afxasia.com |
| Philippines' PLDT, Benpres agree to inject additional capital into cable unit |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co said it has signed an agreement with Benpres Holdings Corp calling for an injection of additional capital into Beyond Cable Holdings Inc. Beyond Cable is the joint venture between Benpres' SkyCable and PLDT's Home Cable. "The amendment agreement that was recently signed provides, among other matters, for additional capital infusion into Beyond Cable and clarifies that the merger of operations of Home Cable and Sky Cable can take any form that would address regulatory and personnel issues. The parties are still discussing the form of merger," PLDT said in a disclosure to the stock exchange. Beyond Cable had previously agreed with creditors to restructure 2.5 bln pesos in debt. No further details were provided on the capital injection accord. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines preparing to take over air terminal ops as Fraport loses franchise |
MANILA (AFX-ASIA) - The government is preparing to take over operations at a multi-million-dollar Manila airport terminal after a consortium led by Germany's Fraport AG was stripped of its franchise, President Gloria Arroyo's spokesman said. The government "wants the terminal to open as soon as possible," Ignacio Bunye told a news conference, adding Arroyo had ordered the transport department to "prepare a blueprint for a possible takeover" from the Fraport AG-led consortium. Fraport owns a majority stake in the Philippine International Air Terminals Co Inc (Piatco), which was awarded the 650 mln usd contract to build and operate Manila airport's third passenger terminal. The High Court yesterday affirmed a May 2003 ruling voiding the Piatco deal, citing anomalies in the bidding and onerous provisions of the contract. Fraport has said it stands to lose millions of dollars in investments from the project, and has sought arbitration from the World Bank to force Manila to compensate it. "This is a victory for good governance and for ordinary Filipino people fighting for a change in our system of governance," Bunye said. "The general effect of the final decision is that this would hasten the eventual takeover and operation of the NAIA (Ninoy Aquino International Airport) Terminal Three," he said. The franchise had been awarded to Piatco by the deposed government of detained former Philippine president Joseph Estrada. Bunye declined to answer how the government intends to address the arbitration case filed by Fraport, saying a legal team is still studying it. The terminal, designed to handle 13 million passengers yearly and ease passenger traffic at two existing terminals, was originally due to open late in 2002. |
| ADB to lend 290 mln usd to Philippines in 2004 |
MANILA (AFX-ASIA) - The Asian Development Bank will finance eight Philippine projects worth 290 mln usd this year, ADB country director Thomas Crouch said. Last year's loans to Philippines from the Manila-based bank totaled 184 mln usd. Crouch said details of the lending program for 2004 will be announced next week. The ADB will present in a press briefing on Monday its Country Strategy and Program Update for the Philippines. At the sidelines of the ADB-Asian Institute of Management Networking Conference, Crouch said the bank's lending level fluctuates every year and that there is no significant reason for the increase in the budget for this year over 2003. He, nonetheless, commended the government's efforts to clean up its official development assistance (ODA) portfolio. The country's ODA disbursement rate surged to 95 pct last year from just 74 pct in 2001 and 76 pct in 2002. Disbursement rate is an indicator for physical accomplishment of a project. A 95 pct rate means that 95 pct of the scheduled loan disbursement had been spent. The ADB has set an indicative planning figure of 300 mln usd in new loans for the Philippines for each year from 2002 to 2004, down from 350 mln in 2000. Bulk of the projects being financed by ADB are related to poverty alleviation such as those involving basic education and health services, urban services development especially housing, electrification, rural roads, rural development, natural resources and environmental management, governance and enhancement of industrial competitiveness. The bank expects the country's GDP to grow 4.5 pct this year, accelerating from last year's projected 4.0 pct. afxmanila@afxasia.com |
| Court orders transfer of Marcos Swiss bank funds to Philippine Treasury |
MANILA (AFX-ASIA) - A special court has ordered the immediate handover of nearly 700 mln usd in Swiss bank funds seized from the late former president Ferdinand Marcos to the National Treasury, court officials said. Sandiganbayan court clerk Estela Teresita Rosete ordered the anti-graft court's sheriff to "cause the immediate transfer to the Republic of the Philippines the Swiss deposits" after the Marcos estate lost its final recourse through the judicial system. The deposits, which the Swiss government transferred to an escrow account in Manila in the 1990s awaiting a ruling by the Philippine judiciary, were worth 658.175 mln usd as of January 2002, the court said. After litigation lasting more than a decade, the Manila government in July 2003 won a Supreme Court ruling forfeiting the assets in its favor. The government has alleged the funds were part of family wealth amassed illegally during 20 years in power that could be worth 10 bln usd. Marcos fled the country after a military-backed popular revolt in 1986, and died in exile in Hawaii three years later. His wife and children have since waged a battle in the Philippine courts to preserve the estate. By law, all funds recovered from the Marcoses' alleged ill-gotten wealth would be used to finance the Philippines' controversial land reform law. However, President Gloria Arroyo has promised compensation for a group of human rights victims during the Marcos regime from the recovered assets. |
| Philippines' Meralco remains 'stressed' despite debt rollover deal - S&P |
MANILA (AFX-ASIA) - Standard & Poor's Ratings Services said Manila Electric Co (Meralco) remains "stressed" despite having avoided a liquidity crisis after creditors approved a deferment of repayment of an 88 mln usd short-term debt, which was due on Jan 21, until March 4. In a statement, S&P said Meralco has long-term debt repayments due in February and March, while at the same implements a refund of overcharges as ordered by the Supreme Court. No figures were provided. Meralco officials could not be immediately reached for comment. The agency noted that the Philippines' largest power distributor "is attempting to manage its financial strain through a number of measures, which are subject to varying degrees of uncertainty." S&P maintains its 'CC' long-term rating on Meralco, which "reflects the pressure on the company's finances." Meralco is currently "highly vulnerable to nonpayment of its financial commitments in full and in a timely manner, it said. Analysts see Meralco's cash flow and profitability as being constrained by a recent Supreme Court order suspending its 0.12-peso per kilowatt-hour rate increase, provisionally approved by the Energy Regulatory Commission and implemented from Jan 1 this year. The rate hike would have boosted Meralco's annual revenue by 1.9 bln pesos. (1 usd = 55.61 pesos) edelacruz@afxasia.com |
| OUTLOOK - Philippine 2003 GDP growth at 4-4.5 pct; 2004 GDP seen at 4.5-5 pct |
---- by Enrico de la Cruz ---- MANILA (AFX-ASIA) - The Philippines' gross domestic product (GDP) likely expanded by 4.0-4.5 pct last year, thanks to a resilient agricultural sector amid weather disturbances and a robust services sector led by telecommunications, economists said. They expect the economy to sustain its growth in 2004 -- an election year -- despite a volatile political environment, with GDP growth seen accelerating to the 4.5-5.0 pct range. The National Statistical Coordination Board will announce the 2003 GDP data on Jan 29. Economic Planning Secretary Romulo Neri said earlier that GDP likely grew 4.2 pct in 2003, at the low end of the government's target range of 4.2-5.2 pct. President Gloria Arroyo, also in an earlier statement, said GDP growth last year came in at 4.4 pct and is expected to grow 5.2 pct in 2004. The government officially targets GDP growth ranging from 4.9 to 5.8 pct for this year. Increased crop harvests and growth in the construction sector complemented the sustained robust performance of the services sector in the fourth quarter of 2003, according to Neri. Agricultural output grew at a slower pace of 3.77 pct in 2003, down from 4.12 pct in the previous year, due to weather-related disruptions. "Agriculture performed well, despite the drought and strong typhoons, and it helped boost overall growth last year," Unicapital Securities senior analyst Elena Ponceca said. Ponceca expects last year's GDP growth to have settled "closer to the higher end" of Unicapital's forecast of 3.5-4.5 pct. For 2004, she said growth is likely to be in the range of 4.5-5.0, partly driven by increased consumer spending normally seen during an election year. Filipinos will elect a president, vice-president, 12 senators, congressmen, and local government officials on May 10. Jonathan Ravelas, Banco de Oro Universal Bank's economist and market strategist, expects the country's macroeconomic conditions to be favorable this year, although growth is likely to be subdued. He sees GDP growth of 4.50 pct this year, accelerating from a projected 4. 25 pct in 2003. "While the economy is seen to grow based on momentum, the weakness of the country's fiscal and banking sectors will prevent the economy from treading a higher growth path," Ravelas said. "Economic developments, particularly in the first half, will largely be influenced by political developments. Investors will likely be on the sidelines awaiting the outcome of the presidential election in May." Unicapital's Ponceca noted that investors' mood in the second half will depend on the acceptability of the next administration's economic platform. Ravelas said political uncertainties are also likely to put the peso and equities market under pressure. And although the Philippines will benefit from the rebound in global demand starting in the middle of this year, he said the prospects of export-led growth are not completely reassuring given the tentative recovery in the US, one of the Philippines' major trading partners. Concerns over terrorism also remain, he added. "While geopolitical risks have somehow receded since last year, they are far from being eliminated and any heightened increase in geopolitical uncertainty will tend to cloud the country's near-term outlook," Ravelas said. Jose Vistan Jr, economist and research director at AB Capital Securities, expects GDP growth to come in at 4.1 pct for 2003 and 4.5 pct this year. Economists at the Asian Development Bank (ADB) project Philippine GDP growth of 4.0 pct for 2003 and 4.5 pct this year. ADB country director Thomas Crouch said that businessmen would likely take a "wait-and-see attitude" while awaiting the results of the May 10 vote. If there is a "clear decision" in the balloting, this will reassure investors, allowing GDP to rebound in the second half of the year to about 4. 5 pct, he said. Julian Wee, a regional economist with Singapore-based IDEAglobal.com, said economic growth this year will probably be "slightly stronger" due in part to the US recovery and also to better weather conditions. "Investments will continue to remain weak, especially (foreign direct investment), but I don't think it's going to hurt that much because there isn't that much going in at the moment," he said. Although the Philippines will benefit from the US recovery, he said the country will "still underperform the region because it's far less exposed to China's growth (and) at the same time its export share to the US is under threat from China." He said this is a result of the country's "over-reliance" on electronics as an export revenue source and on the US as an export market. edelacruz@afxasia.com |
| Philippines' Meralco completes three capital projects in Dec 2003 |
MANILA (AFX-ASIA) - The Manila Electric Co (Meralco) said it completed three capital projects in December last year, boosting the capability of the country's largest power distributor to provide adequate and reliable electricity services to its more than 4 mln customers. The projects are part of the power firm's 4.7 bln peso capital investment program in 2003, the company said in a statement. The completed projects are the construction of the first phase of a new 34.5-kilovolt feeder in Quezon City, the retirement and relocation of a portion of a feeder from Mandaluyong to Makati city, and the unloading of a sub-station feeder in the province of Bulacan. (1 usd = 55.61 pesos) cecille.yap@afxasia.com |
| Manila shares close flat on last-minute profit-taking |
MANILA (AFX-ASIA) - Share prices closed flat as earlier gains were eroded by last-minute profit-taking in select stocks such as Pilipino Telephone Corp, dealers said. They said the market's downside was however limited by rotational interest in some second-line stocks. The 30-company composite index closed down 0.39 points or 0.02 pct at 1, 560.43, off a high of 1,572.21 and a low of 1,560.10, on volume of 854.38 mln shares worth 820.95 mln pesos. In the broader market, losers slightly outnumbered gainers 37 to 35, with 44 stocks unchanged. Top-traded Piltel was down 0.28 pesos at 1.66 on 73.13 mln shares as investors locked in gains after the stock reached overbought levels, fuelled by speculation over a merger with affiliate Smart Communications Inc. Smart's parent Philippine Long Distance Telephone Co (PLDT) has denied there was a merger plan for the two wireless service providers, while Piltel said it is unaware of any plans for it to merge with Smart for the purpose backdoor listing PLDT's wireless unit. Dealers expect the market to open mixed to slightly higher tomorrow, saying the momentum remains positive on the back of positive corporate earnings outlook for this year. The index's support level is seen at 1,540 points, while resistance is seen at 1,580. (1 usd = 55.61 pesos) cecille.yap@afxasia.com |
| Philippines' Banco de Oro, Jardine Properties in property development jv |
MANILA (AFX-ASIA) - Banco de Oro Universal Bank said it has agreed to develop jointly with Jardine Properties Inc a 57,875-square meter property in metropolitan Manila for residential use. The bank, which owns the property located in Kalookan City, said it has signed a memorandum of agreement with Jardine Properties for the project. "Jardine Properties will conduct a due diligence study of the property after which Banco de Oro and Jardine Properties will execute a development management agreement specifying the terms and conditions of this tie-up," the bank said in a disclosure to the stock exchange. edelacruz@afxasia.com |
| Philippines' San Miguel says may appeal in court against BIR tax ruling |
MANILA (AFX-ASIA) - San Miguel Corp said it may go to court to appeal against a Bureau of Internal Revenue (BIR) decision to impose higher excise taxes on the company's San Mig Light beer product. "Should the BIR maintain its position, the company's management will arrive at a decision, and options could include resort to the courts," San Miguel said in a disclosure to the stock exchange. The BIR earlier asked the company to pay 1.5 bln pesos in additional tax for registering its San Mig Light beer as a new brand and not just a variant of its pale pilsen brand. San Miguel has maintained that San Mig Light was a new brand and that it should continue paying the tax for this brand at 10.25 pesos per liter and not the 19.91-peso rate imposed on variants. The company said its counsel and director Estelito Mendoza is in "continued efforts" to persuade the BIR against imposing the higher excise taxes. "Another meeting is set for next week to discuss the matter with the BIR, and the company remains hopeful that it may be able to persuade the BIR to change its view," San Miguel said. (1 usd = 55.60 pesos) cecille.yap@afxasia.com |
| Philippine economy to grow 4.5 pct in 2004 - ADB country director |
MANILA (AFX-ASIA) - The Philippine economy will grow by 4.5 pct this year despite political uncertainty linked to May's presidential election, the Asian Development Bank (ADB) country director said in remarks released today. ADB country director Thomas Crouch said that businessmen would likely take a "wait-and-see attitude" while awaiting the results of the May 10 vote. If there is a "clear decision" in the balloting, this will reassure investors, allowing the gross domestic product (GDP) to rebound in the second half of the year to about 4.5 pct, he said at an economic forum. However he stressed that this level of growth is too little "to make substantive inroads in poverty reduction," considering the country's population growth rate of 2.36 pct, one of the highest in Asia. Economic Planning Secretary Romulo Neri, meanwhile, was more optimistic, insisting that GDP growth would at least hit 4.9 pct. "The ADB has always underestimated our growth," he said at the same forum, remarking that 2004 would be better than last year because agriculture and exports are both expected to recover. He also said official development assistance would boost the construction of crucial infrastructure next year, spurring growth. Neri also said election spending, estimated by political analysts at about 30 bln pesos would further boost the economy. |
| Prototype vaccine to shield humans from Avian flu being readied for tests -WHO |
MANILA (AFX-ASIA) - A prototype vaccine to protect humans from avian influenza could be ready for clinical testing shortly, the WHO said. "Prototype viruses for vaccine production are being prepared by laboratories in the WHO Global Influenza Network," which would then be used as seed stock for vaccine production, the WHO regional office here said. It said "a prototype virus could be made available to vaccine manufacturing companies within about four weeks," but that it would take several steps before the vaccine could be ready for use in humans. The H5N1 strain of the flu has killed five people in Vietnam and has caused massive poultry culls and trade disruption with other countries taking steps to protect their human and bird populations from the epidemic. Laboratories in Hong Kong and Japan have isolated the virus from specimens obtained from two of the fatal cases in Vietnam, it said in a written statement. The virus for use in influenza vaccines is grown in chicken eggs. However, because H5N1 is so deadly in chicken embryos, a new technique known as "reverse genetics" is required to prepare the prototype virus for vaccine production. Reverse genetics merges selected genetic information of the virus taken from actual cases with a laboratory virus. The resulting virus is recognized by the human immune system, and causes a protective immune response, but no disease. The virus can also be genetically modified so that it is no longer lethal to chicken embryos. Reverse genetics produces a prototype virus with predictable growth during vaccine production, it said. The prototype virus is then used by manufacturers to produce sample vaccines for clinical testing. "WHO will offer support in the coordination of these clinical trials, which are needed to determine the amount of vaccine and number of doses required to confer protection, also in different age groups," it added. The virus strain involved in the current epidemic has not been spread from person to person. "Historically, influenza pandemics have spread rapidly around the world, causing high mortality and affecting all age groups," the WHO said. The most severe pandemic in the previous century, in 1918-1919, killed an estimated 50 million people. The bird flu epidemics are the first in Japan since 1925, and the first ever documented in Vietnam and South Korea, the WHO said. Candidate vaccines were developed last year by network laboratories in London as well as Memphis, Tennessee, for protection against the H5N1 virus strain that caused two cases and one death in Hong Kong in February 2003. "If the virus isolated from the fatal cases in Vietnam proves sufficiently similar to the 2003 H5N1 strain in Hong Kong, the existing candidate vaccines could expedite the availability of a new vaccine," the WHO said. |
| STOCK ALERT - Philippines' Meralco up on debt rollover |
MANILA (AFX-ASIA) - Manila Electric Co shares were higher in early trade, extending gains after the country's largest power distributor was able to roll over its short-term loan amounting 88 mln usd until March this year. The debt was supposed to have been due yesterday. Meralco B, open to foreigners, was up 1.00 peso at 36.50 on 405,700 shares. Meralco A gained 0.25 at 21.25 on 97, 400 shares. Dealers said Meralco effectively avoided a crucial ratings downgrade from Standard & Poor's Ratings Services, which earlier warned of a rating cut to "SD" or selective default should the power distributor fail to roll over the debt. Meralco's current "CC" rating already indicates that the company is "highly vulnerable to non-payment of its financial commitments in a timely manner." The company is hoping to tap the international capital market within the first quarter to raise funds that would help it undertake an ongoing 30.5-bln peso refund to consumers and crucial capital projects. Meralco's cash flow and profitability are seen constrained by a recent Supreme Court order suspending its 0.12-peso per kilowatt-hour rate increase, provisionally approved by the Energy Regulatory Commission and implemented from Jan 1 this year, dealers said. The rate hike would have meant an additional annual revenue of 1.9 bln pesos for Meralco. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Manila shares slightly higher on rotational interest |
MANILA (AFX-ASIA) - Share prices were slightly higher in early trade on rotational interest in second-line stocks, dealers said. They said sentiment on Philippine companies remain generally bullish on the back of robust earnings forecasts for this year, resulting in the focus shifting from blue chips to select other cheap stocks as major stocks had reached overbought levels. At 10.23 am, the 30-company composite index was up 7.08 points or 0.45 pct at 1,567.90 on 209.54 mln shares worth 344.92 mln pesos. It has so far traded between 1,561.10 and 1,567.90. In the broader market, gainers beat losers 29 to 9, with 35 stocks unchanged. The market is taking somewhat of a breather now after the recent sharp gains, and with most foreign fund managers out of the market as most regional bourses are closed for the Lunar New Year, dealers said. Top-traded Pilipino Telephone Corp was down 0.14 pesos at 1.80 on 37.43 mln shares as investors locked in gains after the stock reached overbought levels, fuelled by speculation over a merger with affiliate Smart Communications Inc. Smart's parent Philippine Long Distance Telephone Co (PLDT) has denied there was a merger plan for the two wireless service providers, while Piltel said it is unaware of any plans for it to merge with Smart for the purpose backdoor listing PLDT's wireless unit. (1 usd = 55.58 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Piltel lower on profit-taking |
MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) was lower in early trade as investors locked in gains after the stock reached overbought levels, on continued speculation about a merger with affiliate Smart Communications Inc, dealers said. Top-traded Piltel was down 0.16 peso, or 8.25 pct, at 1.78 on volume of 36.78 mln shares. "The stock is really due for a correction after rising too fast in recent sessions," Westlink Global Equities chairman Rommel Macapagal said. "But I think the merger speculation will linger." Smart's parent Philippine Long Distance Telephone Co (PLDT) has denied there was a merger plan for the two wireless service providers, while Piltel said it is unaware of any plans for it to merge with Smart for the purpose of providing a backdoor listing for the latter. Smart, the country's leading wireless service provider, is required, under its congressional franchise, to sell at least 30 pct of its common shares to the public before August this year. Analysts believe a Smart-Piltel merger is a better option in terms of costs for the PLDT group than an initial public offering. (1 usd = 55.57 pesos) edelacruz@afxasia.com |
| Bank of the Philippine Islands parent NPL ratio 7.14 pct as of Dec 16 |
MANILA (AFX-ASIA) - Bank of the Philippine Islands said its non-performing loans (NPL) ratio stood at 7.14 pct at the parent level and 7. 00 pct on a consolidated basis as of Dec 16. The bank earlier reported that its parent and consolidated NPL ratios stood at 8.63 pct and 8.45 pct, respectively, as of Sept 19. In its published statement of condition, BPI said its NPLs totaled 11.92 bln pesos, against general provisions of 1.19 bln and specific provisions of 4.86 bln, all at the parent level. Its return on equity stood at 11.21 pct. (1 usd = 55.57 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Digitel higher on settlement of dispute with NEC |
MANILA (AFX-ASIA) - Digital Telecommunications Philippines Inc (Digitel) shares were higher in early trade after the company agreed to settle its 237 mln usd supply contract dispute with NEC Corp of Japan, dealers said. At 9.45 am, Digitel was up 0.05 pesos, or 6.41 pct, at 0.83 on 3.05 mln shares. The local carrier yesterday said the two parties have also agreed to withdraw the cases relating to the dispute. It did not provide details on the settlement. NEC earlier sought to collect from Digitel 237 mln usd in payment for equipment supplied to the local carrier, eventually cancelling its supply contract after Digitel failed to pay, despite the near completion of the telephone system NEC installed in the Philippines. Digitel, however, said it did not settle the amounts owed to NEC because the Japan-based company had failed to perform contractual obligations. Dealers said the settlement of the dispute effectively removed a potential drag on Digitel's profitability, as it avoided laborious court cases along the way. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines to release 2003 GDP data on Jan 29 |
MANILA (AFX-ASIA) - The National Statistical Coordination Board said it will announce Philippine GDP data for 2003 on Jan 29. Economic Planning Secretary Romulo Neri earlier said that GDP likely grew 4.2 pct in 2003, at the low end of the government's target range of 4.2-5.2 pct. In an earlier statement, President Gloria Arroyo said the country's GDP expanded 4.4 pct last year and is expected to grow 5.2 pct in 2004. The government targets GDP growth ranging from 4.9 to 5.8 pct for this year. Increased crop harvests and growth in the construction sector complemented the sustained robust performance of the services sector in the fourth quarter of 2003, Neri said. Yesterday, the Department of Agriculture said agricultural output grew at a slower pace of 3.77 pct in 2003 from 4.12 pct in the previous year due to weather-related disruptions. The sector's growth in the last quarter of 2003 registered 5.6 pct. edelacruz@afxasia.com |
| Manila shares outlook - Mixed to higher on extended buying momentum |
MANILA (AFX-ASIA) - Share prices are expected to open mixed to higher on extended buying of stocks with better earnings prospects this year, dealers said. However, they see some correction along the way after the market's recent sharp gains, with the main index's rise seen capped at the 1,580 resistance level. Yesterday, the composite index closed up 13.93 points, or 0.90 pct, at 1, 560.82, on volume of 609.4 mln shares worth 1.4 bln pesos. It was the index's strongest finish in nearly three years, or since March 12, 2001, when it closed at 1,567.53 points. In the broader market, gainers outnumbered losers 50 to 18, while 38 stocks were unchanged. "The market is expected to encounter resistance at the 1,580 level, which is the target of a symmetrical formation. The market has come a long way and it remains to be seen as to how much further it can go," AB Capital research director Jose Vistan said. He added sentiment is very positive as investors are anticipating strong corporate results for this year. Gains on Wall Street may also inspire investors to continue accumulating Philippine stocks. Most regional markets are closed for the Lunar New Year celebration. "We are still in a bull market, but we should expect consolidation along the way," Citiseconline.com analyst Mark Alan Canizares said. Controversies surrounding the nationality of popular presidential candidate Fernando Poe Jr, who is facing disqualification charges, are seen to have no substantial impact in today's trade. Three employees of the government's national archives office accused their chief of fabricating documents being used by a group of lawyers to disqualify Poe, a strong rival of President Gloria Arroyo in the presidential race. Parties opposed to Poe's candidacy allege the actor-turned-politician is not a natural-born Filipino citizen, and as such should be diqualified from running. "Investors have factored in these political noises. They have accepted the fact that elections in the Philippines are really like that," Canizares said. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines' Metrobank NPL ratio 13.69 pct as of Dec 16 |
MANILA (AFX-ASIA) - Metropolitan Bank and Trust Co said its non-performing loan ratio (NPL) stood at 13.69 pct as of Dec 16, 2003. It earlier reported its NPL ratio at 13.86 pct as of Sept 19. In a statement, Metrobank said its NPLs totaled 34.95 bln pesos as of Dec 16, with general provisions for bad loans and other losses at 1.97 bln and specific provisions at 20.27 bln. Return on equity stood at 5.87 pct. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines' Security Bank NPL ratio 10.85 pct as of Dec 16 |
MANILA (AFX-ASIA) - Security Bank said its non-performing loan (NPL) ratio stood at 10.85 pct as of Dec 16, 2003. Last year, it reported an NPL ratio of 11.26 pct as of Sept 19 versus 9. 73 pct as of June 19. In a statement, the bank said its NPLs totaled 4.497 bln pesos as of Dec 16, with general provisions of 368.18 mln pesos and specific provisions of 2. 4 bln. Return on equity stood at 6.37 pct. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines' Digitel, Japan's NEC settle supply contract dispute |
MANILA (AFX-ASIA) - Digital Telecommunications Philippines Inc (Digitel) and NEC Corp have agreed to settle their 237-mln usd supply contract dispute, paving the way for the termination of all cases between the two parties, the Philippine company said. "We wish to inform you that Digitel and NEC agreed to fully and finally settle all claims, liabilities, causes of action, suits, damages and expenses that either party has or may have, either now or in the future, against the other arising out of, relating to or in any way in connection with the supply contract dated 4 April 1995," Digitel said in a disclosure to the stock exchange. NEC earlier sought to collect from Digitel 237 mln usd in payment for equipment supplied to the local carrier. It had asked the International Chamber of Commerce to arbitrate the contract dispute. NEC cancelled its supply contract after Digitel failed to pay despite the near-completion of the telephone system installed by NEC in the Philippines. Digitel however said it had not settled the amounts owed to NEC because the Japan-based company had failed to perform contractual obligations. Digitel said the parties also agreed to withdraw at least three cases relating to the dispute. These are a request for arbitration pending with the International Chamber of Commerce, a motion to intervene filed with the Philippines' National Telecommunications Commission, and a temporary restraining order petition pending with the Philippine Court of Appeals. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines' Meralco asks ERC to lengthen third phase of refund to 12 months |
MANILA (AFX-ASIA) - The Manila Electric Co has again asked the Energy Regulatory Commission (ERC) to reconsider an earlier ruling ordering the power distributor to complete the third phase of its refund program in six months from January. In a letter to the ERC, Meralco said it is in no position to undertake a six-month refund period, especially after the Supreme Court ordered the power distributor to stop the implementation of a 0.12 pesos per kilowatthour (kWh) rate increase that was to have been implemented from Jan 1. The company reiterated an earlier motion to extend the schedule to 12 months. The Supreme Court order has made it difficult for the company to refinance of its debts through an international capital markets transaction scheduled in February, Meralco president Jesus Francisco said. The provisional rate hike has been expected to bring in around 1.9 bln pesos in additional annual revenue for the company. "Even if the Supreme Court eventually rules in the Commission's favor, it will be very difficult to bring the transaction back on track to complete it before end-February," Francisco said in the letter. The third phase of the refund, which covers residential customers with electricity consumption of over 300 kWh, will cost 4.9 bln pesos. The expected drain on Meralco's cash flows will coincide with the payment of its long-term debts amounting to 3.9 bln pesos and short-term borrowings of 4.32 bln, which were rolled over to March. The company's refund of overcharges, dating back to 1994, in four phases will cost more than 30 bln pesos. (1 usd = 55.56 pesos) cecille.yap@afxasia.com |
| Philippines Jan CPI seen up 3.0 pct yr-on-yr - Neri |
MANILA (AFX-ASIA) - The Philippines' Consumer Price Index (CPI) is expected to rise 3.0 pct year-on-year this month, Economic Planning Secretary Romulo Neri said. The CPI rose 3.1 pct year-on-year in Dec 2003, to out the full-year 2003 average at 3.1 pct, as opposed to the government's target of 4.5-5.5 pct. Neri said he expects a stable inflation rate in January, despite recent increase in meat prices. The government has set an inflation target of 4.0-5.0 pct for 2004. afxmanila@afxasia.com |
| Philippines 2003 agricultural output up 3.77 pct vs 4.12 pct |
MANILA (AFX-ASIA) - Agricultural output grew at a slower pace of 3.77 pct in 2003 from 4.12 pct in the previous year due to weather disturbances, the Department of Agriculture said. Growth in the last quarter registered 5.6 pct. Still, Agriculture Secretary Luis Lorenzo said last year's growth of the agriculture sector was "remarkable", achieved despite the tail-end effect of El Nino in the first half of the year and the onslaught of super typhoons in the third quarter. Agriculture accounts for about 20 pct of the Philippine economy. Average farmgate prices of agricultural commodities rose 2.17 pct last year, Lorenzo said. Poultry prices were up 6.75 pct and livestock prices rose 3.31 pct, while crops posted a gain of 2.17 pct, he said. Fishery products, however, suffered from price cuts, with the drop registered at 1.55 pct last year. Total crops output in 2003 was valued at 330.64 bln pesos at current prices, up 5.21 pct over the previous year. Crops accounted for 49.74 pct of the country's total agricultural production last year. Unhusked rice output totaled 13.5 mln metric tons, up 1.73 pct from 2002 and valued at 117.99 bln pesos. Corn output reached 4.6 mln metric tons worth 32.54 bln pesos. Economic Planning Secretary Romulo Neri said yesterday that Philippine GDP likely grew 4.2 pct in 2003, at the low end of the government's target range of 4.2-5.2 pct. In an earlier statement, President Gloria Arroyo said the country's GDP expanded 4.4 pct last year and is expected to grow 5.2 pct in 2004. The government targets a GDP growth ranging from 4.9 to 5.8 pct for this year. Increased crop harvests and growth in the construction sector complemented the sustained robust performance of the services sector in the fourth quarter of 2003, Neri said. The National Statistical Coordination Board is expected to announce data related to the economic performance in the fourth quarter and the full year in the next few weeks. edelacruz@afxasia.com |
| Philippine movie-star presidential candidate seeks to reassure business |
MANILA (AFX-ASIA) - Philippine presidential frontrunner Fernando Poe met with business leaders in public for the first time and sought to calm their fears, but failed to offer concrete policy details. Opinion polls have put the high school dropout and political newcomer as frontrunner in the May 10 presidential election, unnerving the Philippine business community. The Philippine peso dived to an all-time low in November when Poe declared that he wanted to become president, just like his friend and fellow movie star Joseph Estrada, who was toppled in a military-backed popular revolt in Jan 2001. Poe offered few concrete policy details in an hour-long open forum with Philippine captains of industry, who quizzed him on what he plans to do in his first 100 days in office if he beats President Gloria Arroyo. He also sidestepped difficult questions on birth control, agriculture and political fund-raising. "In regards to business, I am also a businessman like you," said Poe, who produces his own films. Poe, 64, sought to assure the businessmen that he is his own man and will not become a puppet of Estrada, who is detained and on trial for corruption. The Poe campaign has been surrounded by senior politicians identified with Estrada. "No one will dictate me. I don't owe them a debt of gratitude. I will not be beholden to anyone," Poe said. The business leaders pressed Poe on how he planned to boost the competitiveness of the Philippines and also asked whether he would offer perks to foreign investors, but he gave few details. Poe said it is all a matter of striking a balance: "We have to compete. It's just a matter of (where) we will compete." Addressing his school record, he said that, "as for education, my life is an experience." He said he quit school not because he was kicked out but because he had to become the family breadwinner after his father died suddenly. "As an actor, I've gone almost around the country. I have seen the real problems of our country. I've been with squatters, virgin forests, mountains, seas. I've seen it all." He said that with "my experience, with good, honest and transparent leadership, we can resolve a lot of things." Meanwhile, Estrada has vowed full support for Poe's presidential quest, and accused the government of trying to discredit the popular candidate. Estrada telephoned Poe to urge him to "keep on fighting" despite claims by Arroyo aides that the screen star is not fit to run the country because he has never held public office. The ex-president said Poe is the victim of a "hatchet job", as election officials began an inquiry into allegations that he is not a natural-born Filipino citizen and thus disqualified from running for president. Poe, lionized as the Philippines' very own John Wayne, has insisted he adopted the citizenship of his Filipino father though his mother is a US national. |
| Philippines' PSALM to sell small power plants in Q1 |
MANILA (AFX-ASIA) - The Power Sector Assets and Liabilities Management Corp (PSALM) has scheduled to sell a group of small power generating facilities in the first quarter of the year. PSALM is the government agency tasked to privatize the country's power generating assets currently operated by the National Power Corp. PSALM vice president for marketing Froilan Tampinco said smaller hydropower facilities in the towns of Agusa, Bohol, Lobo and Amlan, as well as the decommissioned Manila Thermal and Bataan Thermal power facilities will be placed on the auction block in the first three months of the year. The agency expects easy sailing on the sale as the assets would not require a transition supply contract (TSC) before they can be auctioned off because they are either small facilities or have been decommissioned. "Under the Electric Power Industry Reform Act, (normally) we need to get the approval of the Energy Regulatory Commission for the TSC to go with the sale of such assets," Tampinco explained. afxmanila@afxasia.com |
| Philippine Meralco says 88 mln usd short-term loan rolled over until March |
MANILA (AFX-ASIA) - The Manila Electric Co (Meralco) confirmed its short-term loan amounting to 88 mln usd has been rolled over until March this year. The debt was originally due today. In a statement, the country's largest power distributor said it signed today the extension agreement with its creditors, which include Bank of the Philippine Islands, Citibank NA, Banco de Oro Universal Bank and Equitable PCI Bank. "The company continues to review its options regarding a longer-term solution to its near-term obligations and will make the appropriate disclosures once these options are to be implemented," Meralco vice-president and treasurer Rafael Andrada said. He added Meralco's short-term lenders continue to be "supportive" of the company's refinancing plans. He did not elaborate. The extension effectively allowed the power distributor to avoid a possible ratings downgrade by Standard & Poor's Ratings Services (S&P). S&P earlier warned it may downgrade Meralco's long-term rating to "SD" (selective default) from the current "CC" should the power distributor fail to get a rollover of its debt. Its "CC" rating on Meralco already indicates that the company is "highly vulnerable to non-payment of its financial commitments in a timely manner," SP said. The Supreme Court last week ordered Meralco to suspend a 0.12-peso per kilowatthour rate increase, provisionally approved by the Energy Regulatory Commission and implemented from Jan 1 this year. (1 usd = 55.581 pesos) cecille.yap@afxasia.com |
| Philippine' Estrada decries 'hatchet job' on movie icon seeking presidency |
MANILA (AFX-ASIA) - Detained former Philippines leader Joseph Estrada today vowed full support for movie icon Fernando Poe in May's presidential election, accusing the government of trying to discredit the popular candidate. Estrada telephoned Poe to urge him to "keep on fighting" despite the claims of President Gloria Arroyo's aides that the 64-year-old screen star is not fit to run the country because he has never held public office. The former president said Poe is the victim of a "hatchet job," as election officials began an inquiry into allegations he is not a natural-born Filipino citizen and, thus, not qualified to run for top job in the country. Poe, lionized as the Philippines' own John Wayne, has insisted he adopted the citizenship of his Filipino father, although his mother is a US national. "We will all pray the people will not listen to those trying to destroy you. The people know who FPJ is," Estrada said, referring to Poe's initials. Estrada telephoned his old friend late yesterday and the former president's camp released a transcript of the conversation today. Arroyo aides have denied involvement in the challenge to Poe's citizenship, but have said the public had the right to know about it. Poe is leading Arroyo in opinion polls ahead of the May 10 elections, and is seen as Estrada's hand-picked choice to represent the opposition. Estrada was ousted in a popular revolt in 2001 over a corruption scandal. He is now detained and being tried, but remains the de facto opposition leader. Analysts and pollsters say a majority of the country's poor, who propelled Estrada to a landslide victory in 1998, are also likely to vote for Poe. Urban poor groups, who supported Estrada, have warned they will take to the streets if Poe is disqualified. |
| Philippines' Active Alliance suspends electronics manufacturing operation |
MANILA (AFX-ASIA) - Active Alliance Inc (AAI) said its board of directors has decided to suspend its electronics manufacturing operation, while it explores other lucrative business ventures. The company, in a disclosure to the stock exchange, cited expected uncertainties in the electronics industry in the coming months as the reason behind its decision to temporarily close shop. It did not elaborate. AAI was untraded, after its previous close of 0.32 pesos per share. (1 usd = 55.581 pesos) cecille.yap@afxasia.com |
| Manila shares close firmer on earnings prospects; index at 34-mth high |
MANILA (AFX-ASIA) - Share prices closed higher, driving the composite index to its highest closing level in 34 months, following some positive news on the corporate front, dealers said. They said investors continued to accumulate stocks such as Petron Corp, on prospects of better 2004 earnings, while others bought Pilipino Telephone Corp (Piltel) amid continuing speculation that it will merge with affiliate Smart Communications Inc to facilitate the latter's backdoor listing. The composite index closed up 13.93 points, or 0.90 pct, at 1,560.82 on volume of 609.4 mln shares worth 1.4 bln pesos, with turnover boosted by block and cross sales. It traded between 1,547.90 and 1,563.12. It was the index's strongest finish since March 12, 2001, when it closed at 1,567.53 points. In the broader market, gainers outnumbered losers 50 to 18, while 38 stocks were unchanged. Dealers said the telecommunications sector again helped drive the upward momentum as Globe Telecom Inc registered gains to give the market a significant boost. "There's some switching of interest, but the telecom sector is still leading the momentum. Petron attracted investors since its very cheap and has very good dividend yield, while Meralco bounced back from previous declines," ATR Kim Eng Securities research head Andrew Long said. "There is some good news on the corporate front and there's no bad news in the political arena that should undermine sentiment," Accord Capital Equities research consultant Ron Rodrigo said. San Miguel A was top-traded but unchanged at 55.50 pesos, while San Miguel B fell 0.50 to 70.50. Ayala Land was up 0.10 at 6.40 on 26.4 mln shares, while parent Ayala Corp dropped 0.20 to 6.50 after yesterday's hefty gains. Ayala Corp has declared a 0.20 pct stock dividend payable on May 12. Globe Telecom was up 5.00 at 950. PLDT was unchanged at 935. Petron was up 0.35 peso at 3.15 on 31.7 mln shares, extending its gains on hopes that the oil refiner will declare a dividend on the back of its improved profitability. Piltel was up 0.30 at 1.94 on 33.9 mln shares, despite a denial from Philippine Long Distance Telephone Co (PLDT) that there was a plan to merge its wireless unit Smart with Piltel. Manila Electric B, available to foreign investors, was up 2.00 at 35.50, while Meralco A rose 1.50 to 21 on news that the company was able to get a reprieve for some 80 mln usd in short-term loans falling due today. Meralco president Jesus Francisco told AFX-Asia that the company is set to sign with creditors today an agreement to extend its short-term loans. No further details were provided. Dealers also cited as a welcome development the news that the country's largest power distributor was able to get the Energy Regulatory Commission's ERC approval to convert 600 mln usd in unsecured debts into secured loans. Meralco parent First Philippine Holdings was up 2.25 at 26.50. Filinvest Land rose 0.12 to 1.22 on 56.2 mln shares. Metrobank was up 0.50 at 28.50. SM Prime Holdings was up 0.10 at 6.30 on 8.4 mln shares. The all-shares index gained 1.18 points to 946.92. The commercial-industrial index was up 15.45 at 2,382.16. Property rose 10.42 to 591.61, while mining advanced 17.37 to 1,553.78. Oil was unchanged at 1.29. Banking and financial services rose 7.65 to 480.36. (1 usd = 55.58 pesos) edelacruz@afxasia.com |
| Philippines Supreme Court rejects appeal of airport terminal consortium |
MANILA, Jan 21 (AFP) - A consortium led by Fraport AG of Germany lost its final bid to win back its passenger terminal franchise at Manila airport today, when the Philippines' Supreme Court threw out its appeal, court officials said. Supreme Court justices affirmed their May 2003 ruling that invalidated the multi-million-dollar operating franchise for Manila airport's Terminal Three and delayed its operation for more than a year. The deposed government of detained former president Joseph Estrada had awarded the franchise to Philippine International Air Terminals Co Inc (Piatco), a consortium that includes airport operator Fraport. The court "denied with finality" a Piatco appeal to reverse the May 2003 ruling, court officials said. The court upheld the Philippine government's position that onerous provisions in the 650 mln usd project had made it unacceptable. "Substantial changes" were introduced to amend the original deal, making it disadvantageous to the government, the court ruling said today. It also found that Piatco obtained preferential terms not offered to other interested bidders. The terminal, designed to handle 13 mln passengers yearly, was to have originally opened in late 2002, to ease passenger traffic at two existing terminals in Manila airport. It remains closed after the transportation department detected flaws in its construction and security problems. Last year, Fraport filed an arbitration request with the World Bank against the Philippines after discussions failed to produce an offer from Manila on how to compensate the German firm for its lost investment. |
| Philippines' Fil-Hispano bid to increase capital wins SEC approval |
MANILA (AFX-ASIA) - The Securities and Exchange Commission has approved Fil-Hispano Holdings Corp's application to increase its authorized capital stock to 600 mln pesos from 60 mln. "The Certificates of Increase in Capital Stock and Amended Articles of Incorporation were released today," Fil-Hispano told the stock exchange in a disclosure. Fil-Hispano is set to acquire the local call center business of All Asia Customer Service Holdings Ltd (ASCH) in exchange for the latter's controlling interest in th former. ACSH is a limited liability company set up in Hong Kong. Wholly-owned and Philippine-registered unit All Asia Customer Service Inc (ACSI) operates its call center business. ACSH Ltd will initially subscribe to 135 mln Fil-Hispano common shares, which will be issued from the capital stock increase. ACSH will then subscribe to a further 414.17 mln Fil-Hispano common shares in exchange for shares in Advance Contact Solutions Inc, which will be the new owner of ACSH's call center business. (1 usd = 55.586 pesos) cecille.yap@afxasia.com |
| Philippines' Arroyo rejects criticism over leadership |
MANILA (AFX-ASIA) - President Gloria Arroyo has rejected stinging criticism of her leadership as she marks today the third anniversary of her rise to power and prepares for May elections as the underdog. "The past two and a half years were rocked by sieges on the government and global economic constraints, but the vision of (the bloodless 'people power' revolt that toppled former president Joseph Estrada) lives on," Arroyo said in a statement. "We have turned around the economy and stabilized the mess we inherited," she said. "We've made a down-payment and we'll pay the instalments faithfully. " Leading Filipino newspapers today carried reports of Manila Roman Catholic Bishop Socrates Villegas' stinging rebuke on Arroyo's rule. In his homily during mass in Arroyo's presence yesterday, Socrates said "politicians have abused and betrayed people power", adding "the politics of convenience and compromise we see around us cannot save the nation." Leaders of the Philippines' dominant religion have played key roles in withdrawing public support for Estrada, whose rule was mired in a corruption scandal and who has since been put on trial. Arroyo, who was elected vice president in 1998 and took over the reins from Estrada in early 2001, is lagging in opinion polls as she prepares to do battle with Fernando Poe, an Estrada ally and movie icon, in the May 10 elections. She said today that economic g my watch," she said. "Wages improved 11.2 pct adjusted for inflation. Strikes have been cut in half." She said her government has "made a strong start in a short time." "I will fight to change the culture of corruption, stop the scourge of drugs and wipe out terrorism," she added |
| Manila shares firmer on positive corporate news, earnings prospects |
MANILA (AFX-ASIA) - Share prices were higher in late morning, with the market breaking out of the 1,500-1,550 consolidation range following some positive news on the corporate front, dealers said. Expectations of better earnings also helped some stocks sustain their upside, including oil refiner Petron Corp. At 11.07 am, the composite index was up 9.08 points, or 0.59 pct, at 1, 555.97 on volume of 272.4 mln shares valued at 684.0 mln pesos. It has traded so far between 1,547.90 and 1,563.12. "There is some good news on the corporate front and there's no bad news in the political arena that should undermine sentiment," Accord Capital Equities research consultant Ron Rodrigo said. In the broader market, gainers led losers 43 to 10 while 26 stocks were unchanged. Petron was up 0.30 peso at 3.10 on 24.79 mln shares, extending its gains on hopes that the oil refiner will declare a dividend on the back of its improved profitability. Analysts said Petron may enjoy an earnings boost from projected faster economic growth in the Philippines this year and its improved pricing power. Pilipino Telephone Corp (Piltel) was up 0.18 at 1.82 on 21.69 mln shares on continuing speculation that Philippine Long Distance Telephone Co (PLDT) will merge its wireless unit Smart Communications Inc with affiliate Piltel to facilitate Smart's backdoor listing. Manila Electric B, available to foreign investors, was up 2.50 at 36, while Meralco A rose 1.25 to 20.75 on news that the company was able to get a reprieve for some 80 mln usd in short-term loans falling due today. Meralco president Jesus Francisco told AFX-Asia that the company is set to sign with creditors today an agreement to extend its short-term loans. No further details were provided. Dealers also cited as a welcome development the news that the country's largest power distributor was able to get the Energy Regulatory Commission's ERC approval to convert 600 mln usd in unsecured debts into secured loans. Accord Capital's Rodrigo sees the market's resistance at 1,557 and then at 1,567, with support at 1,546. (1 usd = 55.58 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippines' Petron up on better earnings, dividend hopes |
MANILA (AFX-ASIA) - Petron Corp extended its gains in mid-session on hopes that the oil refiner will declare dividend on the back of its improved profitability, dealers said. Petron was up 0.35 peso, or 12.50 pct, at 3.15 on volume of 17.08 mln shares. "Given the positive earnings expectations for Petron, some investors are thinking that the company may be able to declare dividend this year," Accord Capital Equities research consultant Ron Rodrigo said. Analysts said Petron may enjoy an earnings boost from a projected faster economic growth in the Philippines this year and its improved pricing power under a deregulated environment. (1 usd = 55.58 pesos) edelacruz@afxasia.com |
| STOCK ALERT - Philippine Meralco shares firmer on debt rollover |
MANILA (AFX-ASIA) - Shares of Manila Electric Co (Meralco) were firmer in early trade on news that the company was able to get a reprieve for some 80 mln usd in short-term loans falling due today, dealers said. Meralco president Jesus Francisco, in an interview, said the company is set to sign with creditors today an agreement to extend its short-term loans. No further details were provided. Meralco B, available to foreign investors, was up 0.50 pesos at 34 on 489, 200 shares. Meralco A gained 0.75 at 20.25 on 281,900 shares. Dealers said concerns over Meralco's ability to repay its debts have started to ease following the loan extension. They also cited as a welcome development the news that the country's largest power distributor was able to get the Energy Regulatory Commission's (ERC) approval to convert 600 mln usd in unsecured debts into secured loans. The BusinessWorld newspaper reported ERC's decision would enable Meralco to be more flexible in availing of additional loans to ease its financial burden. Earlier, Meralco said an ERC approval to convert the unsecured loans into bonded indebtedness is necessary to pursue debt options to finance its cash shortfalls and ensure it won't default on obligations. (1 usd = 55.584 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Piltel extends gains on Smart merger speculation |
MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) firmed further in early trade on continuing speculation that Philippine Long Distance Telephone Co (PLDT) will merge its wireless unit Smart Communications Inc with affiliate Piltel to facilitate Smart's backdoor listing, dealers said. Despite PLDT's denial, buying interest in Piltel, which expects to return to profitability this year, has been sustained by the lead, dealers added. Piltel rose 0.08 peso, or 4.88 pct, to 1.72 on volume of 10.9 mln shares. "I think PLDT management will seriously consider the merger of Smart and Piltel as an option since a backdoor listing for Smart should be less expensive than an (initial public offering)," Accord Capital Equities research consultant Ron Rodrigo said. Piltel said yesterday it was not aware of any plans for it to merge with Smart for the purpose of providing a backdoor listing for the latter. Smart, the country's leading wireless service provider, is required, under its congressional franchise, to sell at least 30 pct of its common shares to the public before August this year. (1 usd = 55.58 pesos) edelacruz@afxasia.com |
| Philippines' Meralco to sign debt rollover deal with creditors today |
MANILA (AFX-ASIA) - Manila Electric Co is set to sign with creditors today an agreement to extend the repayment of some 80 mln usd in short-term loans falling due today, its president Jesus Francisco said. "A deal is expected to be signed today. Yes, it's an extension, but we cannot provide the details until after the agreement has been signed," Francisco told AFX-Asia in a phone interview. Meralco's short-term creditors include Bank of the Philippine Islands, Citibank NA, Equitable PCI Bank, and Banco de Oro Universal Bank. Earlier, Standard & Poor's Ratings Services said it may downgrade Meralco's long-term rating to "SD" (selective default) from the current "CC" if the power distributor, in the absence of a rollover agreement with creditors, fails to repay short-term debt due today. Its "CC" rating on Meralco already indicates that the company is "highly vulnerable to non-payment of its financial commitments in a timely manner," SP said. The Supreme Court last week ordered Meralco to suspend a 0.12-peso per kilowatthour rate increase, implemented from Jan 1 this year and provisionally approved by the Energy Regulatory Commission. S&P said the rate hike suspension "has hampered Meralco's plans for refinancing its debt, which would have eased its liquidity problems in the short term." (1 usd = 55.63 pesos) cecille.yap@afxasia.com |
| Philippine Savings Bank sets record, payment dates for 1.00 peso cash dividend |
MANILA (AFX-ASIA) - Philippine Savings Bank said it has set for Feb 10 the record date for a 1.00 peso per share cash dividend it earlier declared. Payment is on or before March 5. (1 usd = 55.63 pesos) edelacruz@afxasia.com |
| Philippines' Ayala Corp declares 20 pct stock dividend |
MANILA (AFX-ASIA) - Conglomerate Ayala Corp said its board of directors approved yesterday the declaration of a 20 pct stock dividend to all stockholders on record as of April 16. Payment is set for May 12. The dividend declaration will be submitted for ratification by stockholders during the annual meeting on March 26, Ayala Corp said in a statement to the stock exchange. (1 usd = 55.63 pesos) edelacruz@afxasia.com |
| Philippines' National Steel creditors approve Indian firm's bid - report |
MANILA (AFX-ASIA) - A majority of creditors of the National Steel Corp (NSC) approved the offer of India-based Global Infrastructure Holdings Ltd to re-open and rehabilitate the steel company, the BusinessWorld newspaper reported, without identifying its source. Global Infrastructure's bid has been "approved in principle" by NSC's creditors, the report quoted its source as saying. Global Infrastructure had reportedly increased its bid price to 13.25 bln pesos from about 11 bln and offered to shorten its payment term to eight years from the previous 10 years. Another bidder, LNM Holdings NV has reportedly offered a bid price of 7.0 bln pesos, which included an improved upfront cash offer of 2.5 bln. (1 usd = 55.63 pesos) edelacruz@afxasia.com |
| Union Bank of the Philippines NPL ratio 13.87 pct as of Dec 16 |
MANILA (AFX-ASIA) - Union Bank of the Philippines said its non-performing loans (NPL) ratio stood at 13.87 pct as of Dec 16, up from 12.8 pct as of Sept 19. According to its published statement of condition, the bank's NPLs totaled 4.67 bln pesos as of Dec 16, against general provisions of 214.3 mln, while specific provisions totaled 2.66 bln. Return on equity stood at 19.84 pct. (1 usd = 55.63 pesos) edelacruz@afxasia.com |
| Philippines' Equitable PCI Bank NPL ratio 14.80 pct as of Dec 16 |
MANILA (AFX-ASIA) - Equitable PCI Bank's non-performing loan (NPL) ratio on a consolidated basis stood at 14.80 pct as of Dec 16, according to its published statement of condition. The country's third largest lender in terms of assets earlier reported its NPL ratio at 14.97 pct as of June 19. It said NPLs totaled 22.39 bln pesos as of Dec 16, with general provisions of 1.19 bln and specific provisions of 14.1 bln. Return on equity stood at 3.55 pct. (1 usd = 55.63 pesos) edelacruz@afxasia.com |
| Forex - Philippine peso recovers slightly as US dollar demand eases |
MANILA (AFX-ASIA) - The peso closed slightly higher, recovering from early morning weakness, as corporate demand for the US dollar eased and banks started to unwind some long dollar positions, dealers said. The US currency was also range-bound against the Japanese yen, taking a breather after sharp gains in recent days. The peso closed at 55.630 to the US dollar after trading between 55.600 and 55.750 on volume of 118.5 mln usd. It ended at 55.650 yesterday. "The dollar was due for a correction after its recent sharp rise against most currencies in the region. It was sort of toppish after reaching the 55. 70 level," a local bank dealer said. Another dealer said companies have for now postponed buying dollars after the US currency's rapid rise. However, corporate clients are seen resuming their buying binge next week in order to meet month-end financing requirements. "There was no demand in the afternoon," the dealer said, adding there was no need for the central bank to intervene as the market corrected on its own. Earlier, central bank deputy governor Amando Tetangco Jr said it did not participate in today's foreign exchange trading. He said the peso's recovery in late morning trade likely stemmed from waning demand for the US dollar. Increased dollar inflows from overseas Filipino workers were also noted in the afternoon trade. The peso is seen trading within the 55.500-55.700 range tomorrow, dealers said. cecille.yap@afxasia.com |
| Philippines Meralco may be downgraded if it fails to pay debt due Jan 21 - S&P |
MANILA (AFX-ASIA) - Standard & Poor's Ratings Services said it may downgrade Manila Electric Co's (Meralco's) long-term rating to "SD" or "selective default" from the current "CC" if the power distributor, in the absence of a rollover agreement with creditors, fails to repay short-term debt due tomorrow. Its "CC" rating on Meralco already indicates that the company is currently "highly vulnerable to non-payment of its financial commitments in a timely manner," S&P said in a statement. The agency said it is awaiting the outcome of Meralco's negotiations with its creditors for the deferment of its 4.7-bln peso short-term debt, which will mature tomorrow. "Meralco is in advanced stage of negotiations with its lenders, and an agreement is likely to be signed by the end of Jan 21," S&P said. "However, if the lenders do not agree to a deferment, Meralco is likely to face severe difficulties in making this payment given its very strained liquidity." The Supreme Court last week ordered Meralco to suspend a 0.12-peso per kilowatthour rate increase, implemented beginning Jan 1 this year and provisionally approved by the Energy Regulatory Commission. The rate hike suspension "has hampered Meralco's plans for refinancing its debt, which would have eased its liquidity problems in the short term," S&P noted. Meralco creditors for the maturing loan reportedly include Bank of the Philippine Islands, Citibank NA, Equitable PCI Bank, and Banco de Oro Universal Bank. (1 usd = 55.63 pesos) edelacruz@afxasia.com |
| FEATURES | NEWS/ADVISORY | CHARTS | CONTACT |