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Monday January 26, 2004
BIRD
FLU - Philippines orders strict quarantine to keep virus at bay
Philippine
central banks says peso weakness vs US dollar temporary
Philippine
National Bank reverses 5-yr losses, posts profit for 2003
Forex
- Philippine peso hits record low; central bank seen in market
ADB
approves 712 mln usd loans to Philippines for 2004-2006
Philippines'
Security Bank completes 3-bln peso Tier 2 notes issue offer
Philippine
ERC approves 0.2149 peso/kWh cut in Meralco generation rate-source
Philippines'
Ginebra San Miguel declares 0.375 peso/share cash dividend
Philippines'
Prime Media expects 20 mln peso asset injection in H2
Philippines'
Smart awards 117 mln usd GSM expansion contracts to Nokia
Philippines'
Ginebra San Miguel 2003 net profit unchanged at 1.65 bln pesos
Philippines'
Pryce Securities suspends trading operations - PSE
Manila
shares close lower on profit-taking in sluggish trade
Philippines'
Meralco defers cash div on 10 pct cumulative preferred stock
Philippines'
Metrobank 3.66 mln shares sold in cross transactions
Manila
shares marginally lower late morning on profit-taking
Philippines
orders strict quarantine to keep bird flu at bay
Philippines'
PBCom NPLs at 35.73 pct of total loans as of Dec 16
Philippines'
Banco de Oro to sell products of Italian insurer
STOCK
ALERT - Philippines' Petron slightly lower on profit-taking
Forex
- Philippine peso slightly weaker; market watches central bank
Malaysia's
Lityan expects to turn around in FY2005 - report
STOCK
ALERT - Philippines' PLDT, Globe firmer on robust earnings outlook
Philippines'
Aboitiz group appeals against court ruling on Veco
Philippines
considers ways to secure foreign funding to pay down debts
Philippine
ABS-CBN cable unit plans expansion to Canada - report
Philippine
plastic firms oppose incentives for San Miguel's recycling project
Philippine
PLDT see shares rising to 1,000 pesos each on results - report
Philippine
central bank says will not use monetary tools to aid weak peso
Philippines
denies bird flu import rumours
Philippine
government ready to help Estrada secure US visa - foreign secretary
Manila
Jockey Club sets record, payment dates for 20 pct stock div
Friday January 23, 2004
Philippine
central bank approves PNB's 2.2 bln peso notes issue
Manila
shares close flat; last-minute buying in telecoms offsets losses
Philippines'
Comelec says actor Poe qualified to run for president
Thai
poultry placed on Philippine watchlist amid bird flu fears
Philippine
SEC orders stock exchange to sell its shares
Forex
- Philippine peso falls vs dollar on short-covering
Manila
shares slightly lower early on technical correction, Comelec decision
Philippines'
Comelec throws petition to disqualify presidential candidate Poe
STOCK
ALERT- Philippines' Ayala Land, Filinvest Land up on rotational interest
First
Philippine Holdings to list 192,859 shares on Jan 26 - PSE
Philippines'
PDIC to lend PBCom 7.6 bln pesos - report
Philippines'
Exportbank NPL ratio 18.93 pct as of Dec 16
Philippine
Supreme Court rules against changes to mobile phone billing- report
Philippine
govt debt at 3.359 trln pesos end-Nov, up 1.17 pct mth-on-mth
Philippines'
Chinabank NPL ratio 14.56 pct as of Dec 16
January 21 -
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January 19 -20
January 16 -17
January 14 -15
January 12 - 13
January 8 -
9
January 6 - 7
January 04 - 05
| BIRD FLU - Philippines orders strict quarantine to keep virus at bay |
MANILA (AFX-ASIA) - President Gloria Arroyo today ordered strict quarantine measures to keep the bird flu out of the Philippines as the epidemic was confirmed in eight Asian countries and suspected in one more. Last week, the country, which buys poultry products only from Canada, Europe and the US, said it had banned the import of live chicken and other related products from all Asian countries, as Thailand and Indonesia confirmed bird flu cases. "We need to keep a tight rein and a watchful eye on inbound poultry products for as long as the bird flu threat lasts," Arroyo said in a statement. "Our vigilance mechanisms have been honed by the SARS threat and the concerned agencies have teamed up in implementing precautions against the entry of infected poultry into the country's markets," she said, referring to the SARS epidemic last year. "Zero incidence is our objective and everybody must work on it." Health Secretary Manuel Dayrit appealed to the public to stay calm, stressing that most of the country's chicken imports come from the west. "The possibility (of an outbreak) is very minimal. There is no reason to be overly concerned. Our information so far is that there are no cases of bird flu here," Dayrit told reporters. Even chickens smuggled into the country are likely not infected, since they come in blast frozen and the virus is not known to survive in freezing temperatures. The World Health Organization's (WHO) representative to the Philippines, Jean Marc Olive, meanwhile said the UN agency is working closely with Asian governments to prevent a possible epidemic. "WHO is putting in place a system of surveillance of bird flu in each country and ensuring good coordination between health and agriculture departments, (as well as) facilitating diagnosis for people with flu," he said. WHO is concerned about the possibility that a human infected with the virus could transit it to another human, although no such case has yet been reported, he added. Transportation Secretary Leandro Mendoza today ordered the coast guard and port officials to "scrutinize strictly all refrigerated vans and containers or those meat products coming from infected areas of the bird flu virus." Bird flu has killed six people in Vietnam and one in Thailand. The epidemic has also hit Cambodia, Indonesia, Japan, South Korea, and Taiwan. |
| Philippine central banks says peso weakness vs US dollar temporary |
MANILA (AFX-ASIA) - Central bank governor Rafael Buenaventura said he sees the peso's weakness against the US dollar as being temporary. The peso closed at 55.850, its weakest level ever against the dollar due to weak regional currencies and demand from some corporates for the greenback, central bank deputy governor Amando Tetangco Jr said. Tetangco denied rumors the central bank was in the market today to support the peso. The peso last hit 55.850 in Nov 2003. It closed at 55.750 on Friday. The peso traded between 55.750 and 55.850 today, with total volume reaching 91.5 mln usd. "We were not in the market, but we did watch it," Tetangco said. "The peso fell due to weaker regionals and corporate demand (for dollars), " he added. Buenaventura said: "This is all transitory. It is the result of a weakness in the regional currencies, short-covering by banks and some corporate demand," he said. The market is also concerned over a possible Moody's Investors Service downgrade of two notches of the Philippines' sovereign rating, he added. Dealers said the market is awaiting the results of Moody's rating review, worried that the expected downgrade will be as much as two notches instead of just one. Moody's, which has been maintaining the Philippines' sovereign rating at one notch below investment grade, is expected to make an announcement in the next few days. The agency decided to place the Philippine ratings under review because of political concerns ahead of the May national elections, as well as worries over the country's debt levels and warnings of a looming fiscal crisis. "Political noise is (also) a lingering problem," Buenaventura added. The Commission on Elections (Comelec) has said presidential front-runner Fernando Poe Jr is eligible to run in the May polls after he was declared as a natural-born Filipino citizen last week. The Comelec ruled against a disqualification case against him, which a Manila lawyer filed questioning Poe's nationality. But Poe, a high-school dropout, who has never held public office, has failed to impress the business community or announced his political platform. edelacruz@afxasia.com |
| Philippine National Bank reverses 5-yr losses, posts profit for 2003 |
MANILA (AFX-ASIA) - Philippine National Bank said it booked a preliminary and unaudited 2003 net profit of 168 mln pesos, ending five straight years of losses, on huge improvements in its interest margin, fee-based income and operating expense management. The 2002 net loss came in at 1.95 bln pesos. "The gains were realized after PNB pursued the 'Good Bank-Bad Bank' strategy," it said in a statement. Under the strategy, the bank implemented new initiatives intended to tap new markets and grow its business, while, at the same time, disposing of its non-performing assets in "the most advantageous and profitable manner." The bank has been on a rehabilitation program that its major shareholders, the government and businessman Lucio Tan, approved. Net interest income improved to 1.64 bln pesos from the previous year's 509 mln. Interest income rose to 7.34 bln pesos from 6.81 bln, while interest expense dropped to 5.7 bln from 6.3 bln. "The higher net margin resulted from the bank's active campaign to expand its low-cost deposits base and by aligning the pricing of loans and deposits to market levels," PNB said. The bank added it was able to collect on past due accounts, thanks to its "focused" restructuring initiatives. Fee-based and other income increased by 285 mln pesos to 4.92 bln in 2003, largely a result of the bank's move to align its service fees with market rates. PNB said its remittance income was also boosted after new offices were established in the US, Canada, Japan and Hong Kong, and also on PNB Hong Kong's remittance tie-ups with 7-Eleven and Bank Mandiri. Administrative and other expenses were reduced in 2003, resulting in an improvement in the bank's cost-to-income ratio to 84 pct from the previous year's 116 pct. The bank said it hopes to do better this year, while continuing to "vigorously pursue" the "Good Bank - Bad Bank" strategy. "PNB reaffirms its commitment to implementing more innovative programs, combining the powers of technology and the bank's revitalized work force, and aimed at further improving PNB's growth and market position this year," it said. (1 usd = 55.85 pesos) edelacruz@afxasia.com |
| Forex - Philippine peso hits record low; central bank seen in market |
MANILA (AFX-ASIA) - The peso closed at an all-time low of 55.850 to the US dollar on prevailing pre-election political jitters and offshore demand for the greenback, but the fall was limited on a rumored central bank intervention in the spot market, dealers said. The central bank denied it was in the market today to support the peso. The peso traded between 55.750 and 55.850, which was last hit in Nov 2003. It closed at 55.750 on Friday. Volume totaled 91.5 mln usd, of which about half was said to represent the central bank sales of the US unit, according to one dealer. "Political jitters ahead of the May elections continue to put pressure on the peso and we even saw some offshore demand for dollars today. This, along with month-end dollar requirements of some market players, weighed on the local unit," a commercial bank dealer said. A second dealer said growing concerns about the impact of the bird flu on Asian economies may have also put additional pressure on the peso. Central bank deputy governor Amando Tetangco Jr attributed the peso's fall to weak regional currencies and the dollar demand of some corporates. "We were not in the market, but we watched it," he said. "The peso's fall was due to weaker regionals and corporate demand (for dollars)," he added. Dealers largely expect the peso to test the 56.00 to the US dollar level in the next few sessions, although the central bank was seen today supporting the local unit at 55.850. A commercial bank's market strategist said last Friday's fall of the peso to 55.750 "suggests further tests of the 56.00 levels are anticipated in the coming weeks." edelacruz@afxasia.com |
| ADB approves 712 mln usd loans to Philippines for 2004-2006 |
MANILA (AFX-ASIA) - The Asian Development Bank has approved 712 mln usd in loans to the Philippines to be spread over three years from this year to help the government reduce poverty and promote economic growth. "The lending pipeline for the next three years has been designed with some flexibility to take into account emerging priorities that may arise once a new government is elected later this year," ADB Philippine country director Tom Crouch told a news conference. The Philippines is ADB's fifth largest borrower, cornering 8.0 pct of the bank's fund set aside for lending. However, weaknesses in the implementation of some projects have caused lower-than-expected levels of disbursement in recent years. For 2004, a total of 292 mln usd would be lent to the Philippines for rural microfinance, health sector development, water utilization and aqueduct improvement, energy sector technical assistance, roads and airport development, small and medium enterprise assistance and judicial reform. Funds to be set aside for lending to the Philippine government in 2005 would fall to 130 mln usd and would rise to 290 mln usd in 2006. The loan program will be complemented by grants amounting to 3.7 mln usd in 2004 for technical assistance and institutional capacity building. Meanwhile, some 275 mln usd worth of the Philippines' 3-bln usd loan with the Manila-based bank was cancelled last year due to government budgetary constraints, ADB officer-in-charge for Southeast Asia Shamsad Akhtar said. The bank hopes to cancel another 40-50 mln usd in loans due to poor absorption capacity. The country's annual disbursement ratio for ADB loan-funded projects stands at an average of 15 pct of total loan portfolio, which effectively takes the country eight years to complete projects which should have been finished over a five-year period. The number of ADB projects are down from 52 three years ago to 31, ADB country chief officer for the Philippines Richard Ondrik said. "Taking into account the government's prudent expenditure management and the challenges in project implementation, the more conservative lending pipeline for 2004-2006 will ensure a higher probability of successful processing of programed activities," ADB said in its country strategy and program update. cecille.yap@afxasia.com |
| Philippines' Security Bank completes 3-bln peso Tier 2 notes issue offer |
MANILA (AFX-ASIA) - Security Bank Corp said it completed the offer for its unsecured subordinated Tier 2 notes issue on Friday, Jan 23, with a final issue size of 3.0 bln pesos. The notes, which are callable at the end of five years, will mature in 2014 and will be issued in two series. Series A notes will be sold to individuals and tax-exempt institutions and will be priced at 100 pct of face value with an initial yield of 12 pct. Series B will be sold to taxable institutions and will be priced at 99. 541 pct of face value with an initial coupon rate of 11.875 pct. This translates to a premium of 1.1617 pct over the five-year Mart 1 fixed-rate treasury notes as of Jan 23. Fitch Ratings has assigned a BB- rating to the notes, which will help raise Security Bank's total capital to around 13.0 bln pesos from 10.0 bln as of end-2003. (1 usd = 55.78 pesos) edelacruz@afxasia.com |
| Philippine ERC approves 0.2149 peso/kWh cut in Meralco generation rate-source |
MANILA (AFX-ASIA) - The Energy Regulatory Commission (ERC) has approved a 0.2149 peso per kilowatthour reduction in Manila Electric Co's generation charges imposed under the generation rate adjustment mechanism (GRAM), an ERC source said. The source said the rate cut will be enjoyed by Meralco's four mln customers in metropolitan Manila and nearby provinces starting next month. The ERC approved the rate cut in a meeting last week, but has yet to issue an order for the rate adjustment, the source said. Based on government rules, power utilities can apply for GRAM adjustments every quarter. The GRAM allows utilities to recover fuel costs and foreign exchange adjustments once every three months. Upon the order of the Supreme Court, Meralco has suspended a 0.12-peso per kWh distribution rate increase implemented from Jan 1. The rate hike would have boosted its annual revenue by 1.9 bln pesos. (1 usd = 55.78 pesos) afxmanila@afxasia.com |
| Philippines' Ginebra San Miguel declares 0.375 peso/share cash dividend |
MANILA (AFX-ASIA) - Ginebra San Miguel Inc said it will pay a 0.375 peso per share cash dividend to shareholders on record as of Feb 20. Payment is set for March 15. (1 usd = 55.78 pesos) edelacruz@afxasia.com |
| Philippines' Prime Media expects 20 mln peso asset injection in H2 |
MANILA (AFX-ASIA) - Prime Media Holdings Inc said it expects its capital stock to be boosted later this year by at least 20 mln pesos via an assets injection by a still unidentified party. "This infusion is expected to occur before the end of the last quarter of 2004," Prime Media said, without giving further details. Prime Media also expects to complete the clean-up of the books of First e-Bank Corp by June 30 this year. First e-Bank has been renamed Prime Media Holdings, with its primary purpose of business changed to a holding company. The banking operations of First E-Bank were acquired by Banco de Oro Universal Bank from Metro Pacific Corp in late 2002. "Part of this clean-up is the finalization of the registration of assets that will be transferred to Banco de Oro and/or the Philippine Deposit Insurance Corp," Prime Media told the Philippine Stock Exchange (PSE). Prime Media has presented its business plan to the PSE, outlining the activities it will undertake to bring its negative stockholders' equity to positive within the year in order to avoid being delisted from the local bourse. The company expects the accrued taxes for asset registration, as shown in its unaudited financial statement for 2003, to be reduced by 90 mln pesos to 120 mln. "In accordance with the new Philippine GAAP (Generally Accepted Accounting Procedures), this reduction will be shown as income in Prime Media's income statement, thereby reducing correspondingly the deficit of the company," Prime Media said. Upon completion of the clean-up, the company expects to offset its additional paid-in capital against its deficit, while a 480.8-mln peso liability to Metro Tagaytay Land Inc will be converted into capital stock. Following these activities, Prime Media said its equity is expected to be a positive 4.1 mln pesos compared with a negative 566.7 mln at end-2003. An additional 30 mln pesos in equity is expected should the adjustment in accrued taxes amount to 120 mln pesos, it said. Prime Media was earlier rumored to be the vehicle for the backdoor listing of television network Associated Broadcasting Co (ABC 5), which was recently taken over by a group of investors, led by Philippine Long Distance Telephone Co chairman Antonio Cojuangco. Prime Media said it will hire advisers sometime after June for the anticipated assets injection. (1 usd = 55.78 pesos) edelacruz@afxasia.com |
| Philippines' Smart awards 117 mln usd GSM expansion contracts to Nokia |
MANILA (AFX-ASIA) - Smart Communications Inc said it has awarded 117 mln usd worth of contracts to Nokia Networks for the expansion and enhancement of its GSM mobile phone network. Smart, the country's leading wireless service provider and a unit of Philippine Long Distance Telephone Co, said the deal is part of its network rollout aimed at increasing GSM network capacity and enhancing innovative multimedia services over the high-quality EDGE network. Smart, which had 10.1 mln subscribers as of end-2003, is seeking to penetrate the underserved and unserved rural areas to boost its revenues. "We want to service our growing subscriber base more efficiently and more innovatively. These investments will address our objectives on capacity expansion, preparation for future platforms, introduction of life-enhancing technologies, as well as continuous service quality improvements." said Ramon Fernandez, SMART's head for administration and materials management division. "The enhancements of SMART's network will enable us to offer more powerful and user-friendly wireless services to our subscribers. This will also help us expand our network to more remote areas and to foray into new technologies," said Rolando Peqa, SMART's head for network services division. Markku Nieminen, Nokia Networks' account director for Smart, said the deal with Smart is designed to accelerate packet data based services. In addition to increasing network capacity and expansion issues, the agreement also covers solutions that will future-proof SMART's core network through the deployment of new technology, the officials said. In 2003, SMART and Nokia worked together in introducing the ConnectSite solution that has significantly improved rollout timeframes. Nokia has supplied SMART with GSM systems and solutions since 1998, and has also supported SMART in network planning and optimization. afxmanila@afxasia.com |
| Philippines' Ginebra San Miguel 2003 net profit unchanged at 1.65 bln pesos |
MANILA (AFX-ASIA) - Ginebra San Miguel Inc said its 2003 net profit came in at 1.65 bln pesos, similar to the previous year's level, on the back a 6.0 pct growth in net sales revenue and consolidated sales volume. The liquor unit of San Miguel Corp did not give an exact comparative figure for its net profit. Its operating profit in 2003 was 2.7 bln pesos. It said 2003 exports of liquor totaled 887,000 cases, up 886 pct from the previous year's 90,000 cases. Consolidated sales volume rose to 31.7 mln cases last year from 29.8 mln cases in 2002, while net sales revenue went up to 12 bln pesos from 11.4 bln. "Ginebra San Miguel chalked up higher sales volume on a surge in export volumes in the third and fourth quarters of 2003 and a steady growth in local volumes, despite the difficult business conditions that affected Ginebra San Miguel Round sales in the last three quarters," the company said in a statement. The company said its liquor operations in southern Philippines improved significantly on the strong performance of its Vino Kulafu brand and reduction in its fixed costs. The volume of Vino Kulafu grew 33 pct year-on-year on improved product distribution, aggressive advertising and promotions, and higher farm incomes, the company said. Volumes in northern Philippines, meanwhile, grew steadily, on a lift from the strong performance of the GSM Frasco and Frasquito brands. The company said it expects near-term growth to remain steady, as new products are launched. Long-term growth, meanwhile, "will continue to be very promising," as the company is now expanding into Thailand, Malaysia, Indonesia, Vietnam, Taiwan, China and Australia. (1 usd = 55.78 pesos) edelacruz@afxasia.com |
| Philippines' Pryce Securities suspends trading operations - PSE |
MANILA (AFX-ASIA) - Broker firm Pryce Securities Inc has voluntarily suspended its trading operations since December last year and is in the process of settling its obligations to clients, the Philippine Stock Exchange (PSE) said. The PSE gave no reason for the move in a notice published on its website. Asian Capital Equities Inc, meanwhile, is in the process of liquidating all its assets pursuant to a take-over order issued to the PSE on Nov 27 last year by the Securities and Exchange Commission (SEC). The SEC ordered the take-over of the brokerage on allegations it violated the Securities Regulation Code. edelacruz@afxasia.com |
| Manila shares close lower on profit-taking in sluggish trade |
MANILA (AFX-ASIA) - Share prices closed lower in sluggish trade on profit-taking across the board, stemming from a sharply weaker peso and the absence of developments on the corporate front, dealers said. The 30-company composite index closed down 12.32 points, or 0.79 pct, at 1,547.70 on volume of 282.1 mln shares worth 789.87 mln pesos. It traded between 1,545.25 and 1,566.54. In the broader market, losers outnumbered gainers 47 to 16, while 31 stocks closed unchanged. Most blue chips are at an overbought stage after the market rose to its highest level in 34 months early last week, dealers said Profit-taking is healthy for the market as it needs to consolidate between the 1,550-1,570 points level before staging another rally. Range-bound trade is widely expected in the next few days as the market undergoes a technical correction and as investors await the release 2003 corporate earnings results. The peso has been trading weakly against the US dollar on pre-election jitters and concerns of a Moody's Investor Service downgrade of the Philippines' sovereign credit rating. The local currency has so far averaged 55.78 to the US unit, near its lowest intra-day level of 55.85, and it is expected to weaken further without intervention from the central bank. cecille.yap@afxasia.com |
| Philippines' Meralco defers cash div on 10 pct cumulative preferred stock |
MANILA (AFX-ASIA) - Manila Electric Co said it has indefinitely deferred the payment of a cash dividend on its 10 pct cumulative preferred stock for the fourth quarter of 2003. The power distributor, which is undertaking a refund of 30.5 bln peso in overcharges to customers, did not give any reason for deferring the payment or the amount involved, or when the dividend will now be paid. The company's board of directors also scheduled its annual meeting for May 25. Meralco B, open to foreigners, closed down 1.00 peso at 34 and Meralco A down 0.25 at 21. (1 usd = 55.778 pesos) cecille.yap@afxasia.com |
| Philippines' Metrobank 3.66 mln shares sold in cross transactions |
MANILA (AFX-ASIA) - A total 3.66 mln shares of Metropolitan Bank & Trust Co were sold in several cross transactions in late morning trade at 28.00 and 28.50 pesos each, data from the stock exchange show. The transactions totalled 102.48 mln pesos and boosted the market's total turnover, the country's largest bank being top-traded so far. No other details were available. At 11.42 am, Metrobank was down 0.50 at 28 on 4.04 mln shares. (1 usd = 55.78 pesos) edelacruz@afxasia.com |
| Manila shares marginally lower late morning on profit-taking |
MANILA (AFX-ASIA) - Share prices were slightly lower in sluggish trade late morning, as profit-taking erased the market's early gains, dealers said. Investors have also taken a wait-and-see stance, mindful that the peso is nearing its lowest level in history due to pre-election and economic concerns. The local currency has so far averaged at 55.78 to the US dollar, closer to its record low intra-day level of 55.85. At 11.06 am, the composite index was down 8.00 points, or 0.51 pct, at 1, 552.02 on volume of 82.79 mln shares worth 276.69 mln pesos. It has so far traded between 1,551.72 and 1,566.54. In the broader market, losers outnumbered gainers 25 to 13, while 32 stocks were unchanged. Top-traded PLDT reduced earlier gains, but was still up 5.00 pesos at 950. 00 on 70,460 shares. The second most active stock, Globe Telecom, was flat at 965.00 on 26,440 shares, after rising as much as 10 pesos early in the session. "There's a lull in the market, with investors waiting for developments both on the economic and corporate fronts... The peso's weakness is also a concern," Asiasec Equities analyst Oliver Plana said. A weaker peso limits a foreign investor's potential investment earnings. Meralco B, open to foreigners, declined 0.50 to 34.50, wile Meralco A gained 0.25 to 21. Ayala Land shed 0.10 at 6.20, while parent Ayala Corp was unchanged at 6. 20. Piltel gained 0.02 at 1.66 on persistent speculation that the firm will be used for affiliate Smart Communications Inc to gain a backdoor listing. Filinvest Land was down 0.02 at 1.22. Petron Corp slid 0.25 to 3.00 as investors cashed in on last week's gains. Bank of the Philippine Islands was 0.50 lower at 50. The all-shares index was down 5.62 points at 944.52. The commercial-industrial index was down 8.18 at 2,374.18. Property declined 6.02 at 582.38, while mining gained 109.93 to 1,726.88. Oil was up 0.01 at 1.30 and banking and financial services down 4.04 at 474.68. (1 usd = 55.78 pesos) cecille.yap@afxasia.com |
| Philippines orders strict quarantine to keep bird flu at bay |
MANILA (AFX-ASIA) - President Gloria Arroyo today ordered strict quarantine to keep the bird flu out of the Philippines as the epidemic spread to seven Asian countries. Last week, the Philippines, which buys poultry products only from Canada, Europe and the US, banned the import of live birds and other related products from all Asian countries, as Thailand and Indonesia confirmed bird flu cases. "We need to keep a tight rein and a watchful eye on inbound poultry products for as long as the bird flu threat lasts," Arroyo said in a statement. "Our vigilance mechanisms have been honed by the SARS threat and the concerned agencies have teamed up in implementing precautions against the entry of infected poultry into the country's markets," she said, referring to the SARS epidemic last year. "Zero incidence is our objective and everybody must work on it." Meanwhile, Transportation Secretary Leandro Mendoza today ordered the coast guard and port officials to "scrutinize strictly all refrigerated vans and containers or those meat products coming from infected areas of the bird flu virus." The disease has killed six people in Vietnam and one in Thailand. It has also hit Cambodia, Indonesia, Japan, South Korea, and Taiwan. |
| Philippines' PBCom NPLs at 35.73 pct of total loans as of Dec 16 |
MANILA (AFX-ASIA) - Philippine Bank of Communications (PBCom) said its non-performing loans (NPL) stood at 35.73 pct of total loans as of Dec 16. The bank earlier reported its NPLs stood at 28.26 pct as of Sept 19. In its published statement of condition, PBCom said its NPLs totaled 6.92 bln pesos as of Dec 16 against general provisions of 137.37 mln pesos and specific provisions of 2.92 bln. PBCom said on Friday that its major shareholders have "substantially" injected new equity into the bank, in line with their earlier plan to infuse 3 bln pesos in additional capital. It added that "the new equity has been substantially deposited with PBCom for a planned exercise of existing warrants." The bank did not say how much funds were infused by the shareholders. PBCom also said it is involved in ongoing discussions with the Philippine Deposit Insurance Corp (PDIC,) but did not give details nor the scope of the talks. Earlier, the Philippine Daily Inquirer reported that the state-run PDIC has agreed to lend 7.6 bln pesos to PBCom at an annual interest rate of 1.0 pct over a 10-year period. The report, citing unnamed sources, said the 7.6-bln pesos will be placed by the bank in government securities and pledged as collateral to the insurance firm. The net interest income, excluding taxes and the 1.0 pct interest payment, will accrue to PBCom as income assistance. The loan will entitle PDIC to four seats on the bank's board which will eventually be expanded to 15 directors. The bank is embarking on a planned capital injection after it reported a nine months to September net loss of 85.35 mln pesos against a net profit of 281.8 mln pesos a year earlier. PBCom is majority owned by the Luy, Nubla and Chung families. (1 usd = 55.77 pesos) edelacruz@afxasia.com |
| Philippines' Banco de Oro to sell products of Italian insurer |
MANILA (AFX-ASIA) - Banco de Oro Universal Bank said it has obtained authority from the central bank's Monetary Board to cross-sell bancassurance products of Italian insurer Assicurazioni Generali, SPA. Banco de Oro owns 40 pct of the Italian insurer. "Performance of Banco de Oro's cross-selling efforts will be determined when the year-end income report of (the bank) is available," Banco de Oro said. No further details were provided. At 10.42 am, Banco de Oro was unchanged at 18.00 pesos on volume of 20, 800 shares. (1 usd = 55.78 pesos) cecille.yap@afxasia.com |
| STOCK ALERT - Philippines' Petron slightly lower on profit-taking |
MANILA (AFX-ASIA) - Petron Corp was lower in mid-trade, as investors began to cash in on the stock's recent gains, dealers said. Petron was down 0.10 pesos, or 3.08 pct, at 3.15 on 455,000 shares. LAst week the oil refiner rose on hopes it will be able to declare a cash dividend this year as its profitability improves. The country's projected GDP growth of 4.9-5.8 pct this year and the company's improved pricing power under a deregulated environment are seen boosting Petron's profit this year. (1 usd = 55.775 pesos) cecille.yap@afxasia.com |
| Forex - Philippine peso slightly weaker; market watches central bank |
MANILA (AFX-ASIA) - The peso was slightly weaker in early trade after ending at a record closing low last week against the US dollar, with the market cautiously watching the central bank's moves amid expectations that the local unit is to test its all-time low of 55.850 soon, dealers said. At 10.21 am, the peso averaged 55.777 to the dollar after trading between 55.750 to 55.790 on volume of 7.0 mln usd. It closed at 55.750 on Friday. "The market is very cautious at this stage as the peso is nearing its all-time low while it remains uncertain whether the central bank will enter the market and, if it does, at what level," a commercial bank dealer said. The dealer said the market is also waiting for fresh news, particularly for the results of the review by Moody's Investors Service of the country's sovereign ratings, which are expected in the next few days. Central bank governor Rafael Buenaventura earlier predicted that Moody's may downgrade the Philippines by only one notch, and not two as speculated in recent newspaper reports, given the country's good macroeconomic numbers. Moody's has been maintaining the Philippines' sovereign rating at one notch below the investment grade. The agency had decided to place the Philippine ratings under review because of political concerns ahead of the May national elections as well as worries over the country's debt levels and warnings of a looming fiscal crisis. "The market has likely discounted a one-notch downgrade, but a two-notch cut is likely to trigger a knee-jerk reaction. The market is waiting for the Moody's announcement," the currency dealer said. The dealer expects the peso to trade between 55.750 and 55.850 today. "Market players are playing it safe and are just waiting for each other to move. But I think there's legitimate demand for dollars right now," the dealer said. Over the weekend, Buenaventura said the central bank will not use monetary tools to assist the peso. "We would not use interest rates or any of our monetary tools (to address the peso's weakness). This is a political problem and not economic," he said. However, dealers on Friday said the central bank was seen in the market, supporting the local currency to prevent it from hitting its all-time intraday low of 55.850. edelacruz@afxasia.com |
| Malaysia's Lityan expects to turn around in FY2005 - report |
KUALA LUMPUR (AFX-ASIA) - Information technology-based company Lityan Holdings Bhd expects to return to the black in the year to Dec 2005 on the back of increasing recurring income from IT projects in the public sector and its pay phone venture in the Philippines, the Financial Daily said. It quoted the company's managing director Rahmat Harun as saying that the current will be a busy year for Lityan and that the company should turn around by 2005 the latest. "We are building a solid foundation for our company, hence in the longer-term, we are looking for sustainable income," Rahmat said. For the nine months to September, Lityan posted a net loss of 10.58 mln rgt compared with a 16 mln rgt loss in the year-earlier period. (1 usd = 3.8 rgt) leefun.chew@afxasia.com |
| STOCK ALERT - Philippines' PLDT, Globe firmer on robust earnings outlook |
MANILA (AFX-ASIA) - Globe Telecom and Philippine Long Distance Telephone Co were firmer in early trade on the back of their robust earnings prospects for 2003 and this year, dealers said. PLDT was top-traded, up 15.00 pesos at 960 on 57,240 shares. Globe Telecom gained 10 at 975 on 9,500 shares. Dealers said buying interest on telecom stocks was sustained after PLDT president and chief executive officer Manuel Pangilinan said he expects the shares of the country's largest carrier to reach 1,000 pesos each when the company announces its 2003 results and forecasts its 2004 financial performance. PLDT is confident of meetings its 2003 net profit target of about 10 bln pesos, Pangilinan said. Dealers said Globe Telecom's 2003 performance is also seen well within PLDT's showing last year. Globe's net profit surged 70 pct year-on-year to 7.50 bln in the nine months to September, after recording its highest-ever quarterly wireless subscriber take-up in the third quarter. (1 usd = 55.75 pesos) cecille.yap@afxasia.com |
| Philippines' Aboitiz group appeals against court ruling on Veco |
MANILA (AFX-ASIA) - The Aboitiz group led by Aboitiz Equity Ventures (AEV) has filed a notice of partial and limited appeal of the Jan 8 ruling of a Cebu regional trial court over shares in the Visayas Electric Co (VECO), AEV said. The group also includes Aboitiz Power Corp, Erramon Aboitiz and Jon Ramon Aboitiz, who filed the appeal for themselves and on behalf of Hijos de F. Escano Inc. "AEV intends to appeal a portion of the decision in which court denied plaintiffs' prayer for the dissolution of Hijos de F. Escano Inc, without prejudice to the immediate and executory nature of other reliefs granted by the court in the decision," AEV senior vice president and chief financial officer Juan Antonio Bernad told the stock exchange in a disclosure. The court has awarded the Aboitiz group a direct 46.66 pct stake in power firm VECO. Earlier, AEV filed a 613-mln peso suit against Vivant Corp for the alleged dilution of Aboitiz's shares in VECO. The subject of the complaint is the dissolution of Hijos de F. Escano, a private holding company whose principal assets were its controlling shareholdings in VECO, through a share swap agreement with Vivant. Hijos is majority owned by the Garcia family, which also owns Vivant. (1 usd = 55.75 pesos) edelacruz@afxasia.com |
| Philippines considers ways to secure foreign funding to pay down debts |
MANILA (AFX-ASIA) - The Department of Finance has identified various schemes to secure foreign funding to help pay down the government's maturing debts this year without depleting its foreign exchange reserves, documents showed. The total dollar requirement of both the National Government and the state-run National Power Corp stood at 5.7 bln usd for 2004, and the finance department is tasked to secure almost 3 bln usd in foreign funds for this purpose. The finance agency plans to sell 500 mln usd worth of Napocor bonds it currently holds, a move that has already been approved by the central bank's policy-making Monetary Board. Meanwhile, the government also expect 750 mln usd in program loans from multilateral agencies this year. The loans are on top of some 1.0 bln usd the finance department expects to generate from an ongoing currency swap facility with the Asian Development Bank. Earlier, the ADB approved the release of 200 mln usd for the swap facility. Another 100 mln usd is expected to be generated by the government from a similar swap facility with the World Bank's International Finance Corp. Around 103 mln usd in royalties would come in from the Malampaya deep gas-to-power project this year, while the 683 mln usd in Marcos money held in escrow at the Philippine National Bank and due for release in favor of the government should also boost government's foreign funds. The anti-graft Sandiganbayan court has issued an executory order directing the bank to release the escrow account to the national government. The peso fell to its lowest closing level ever at 55.75 to the US dollar on Friday due to pre-election concerns. cecille.yap@afxasia.com |
| Philippine ABS-CBN cable unit plans expansion to Canada - report |
MANILA (AFX-ASIA) - ABS-CBN Global Ltd, a 100 pct unit of ABS-CBN Broadcasting Corp, is negotiating with four companies to offer 24-hour all-Filipino cable services in Canada, the BusinessWorld newspaper reported, quoting ABS-CBN Global managing director Rene Encarnacion. "Canadian laws require that any foreign broadcaster should have a license and should be carried by an authorized Canadian cable company. We already have a license, but we are still talking with various cable and distribution companies in Canada," Encarnacion was quoted to have said. ABS-CBN Global operates the broadcasting network's 24-hour cable channel that provide all-Filipino programs through direct-to-home satellite service in the US, Asia, Middle East and Europe. Facilities the company uses in the US could cover the North American continent, Encarnacion said. He added that the company also plans to expand its Asian operations to the Hong Kong, Singapore and Taiwan markets. It currently operates in Australia, Japan and Indonesia. cecille.yap@afxasia.com |
| Philippine plastic firms oppose incentives for San Miguel's recycling project |
MANILA (AFX-ASIA) - The Polystyrene Packaging Council of the Philippines (PPCP), a group of plastic bottle manufacturers, has warned the Board of Investment (BOI) against granting fiscal incentives to San Miguel Corp's multi-billion recycling project. The group said granting fiscal incentives, which could include an income tax holiday, for San Miguel's 6.7-bln peso polyethylene terephthalate recycling project would create an unfair playing field in the plastic bottle manufacturing industry. "I don't think the project will fail with smaller incentive packages because San Miguel is a big corporation. I'm sure the company will see to it that the project succeeds," PPCP secretary general Tony Chiong said. The BOI earlier denied the application of San Miguel's packaging unit for the registration of the recycling project. The company, however, said it will appeal against the decision. (1 usd = 55.75 pesos) cecille.yap@afxasia.com |
| Philippine PLDT see shares rising to 1,000 pesos each on results - report |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) expects its share price to reach 1,000 pesos when the company announces its 2003 results and forecast for its financial performance for 2004, the BusinessWorld newspaper reported, quoting PLDT president and chief executive officer Manuel Pangilinan. PLDT is confident of meeting its 2003 profit target of about 10 bln pesos. "It'll be above 1,000 pesos perhaps when we announce our year-end results in February and when we give our guidance for 2004, and more so when we report our first quarter or first half results. Then we could get a better reading of what the numbers are going to look like for 2004," Pangilinan was quoted to have said. PLDT shares closed up 10 pesos at 945 per share on Friday. Pangilinan said he is bullish about PLDT's 2004 results, and is optimistic the share price of affiliate Pilipino Telephone Corp (Piltel) will also strengthen. Piltel on Friday erased earlier gains to close at 1.64 pesos. It was top-traded on total volume turnover of 38.47 mln shares. PLDT earlier said it expects no major additional provisions for the last quarter of 2003, making it possible to meet its full-year net profit target of 9-10 bln pesos. Its 2003 net profit before provisions is seen between 14-15 bln pesos. In 2002, net profit was 3.1 bln pesos. (1 usd = 55.75 pesos) cecille.yap@afxasia.com |
| Philippine central bank says will not use monetary tools to aid weak peso |
MANILA (AFX-ASIA) - The central bank will not use monetary tools to assist the peso, which fell to its lowest closing level in history at 55.75 to the US dollar on Friday due to pre-election concerns. "We would not use interest rates or any of our monetary tools (to address the peso's weakness. This is a political problem and not economic," central bank governor Rafael Buenaventura said. However, dealers on Friday said the central bank was seen in the market, supporting the local currency to prevent it from hitting its all-time intraday low of 55.850. The market was said to have used as an excuse the Commission on Elections' (Comelec) dismissal of a petition to disqualify popular movie actor Fernando Poe Jr from joining the May 10 presidential race. A group of lawyers has questioned Poe's candidacy on the grounds that he is not a natural-born Filipino citizen and as such should be disqualified from seeking presidency. The Comelec's first division, however, dismissed the petition for lack of merit. The peso is seen trading between 55.700-55.850 today. (1 usd = 55.75 pesos) cecille.yap@afxasia.com |
| Philippines denies bird flu import rumours |
MANILA (AFX-ASIA) - The Philippine health department on Sunday denied rumours that poulty infected with bird flu had been brought into the country. Spokeswoman Luningning Villa said a rumour was being spread by mobile phone text messages that 19 containers of infected poultry had entered the country. Bird flu has been found in several Asian countries recently, killing six people and leading to the slaughter of millions of chickens. Villa said the department had not issued any warning not to eat chicken, as stated in the text messages. "It is still safe to eat chicken," she said. The Philippines has already banned Asian poultry imports to stop the spread of bird flu from Japan, South Korea, Thailand and Vietnam. |
| Philippine government ready to help Estrada secure US visa - foreign secretary |
MANILA (AFX-ASIA) - The Philippines is ready to help deposed president Joseph Estrada secure a visa to the United States if a special anti-graft court allows him to seek a medical treatment there, Foreign Secretary Delia Albert said Saturday. Albert said her office was prepared to issue a formal diplomatic certification for Estrada once the Sandiganbayan court ruled on his request. "As the official conduit of the Philippine government in dealing with other nations, we would convey the decisions of the Sandiganbayan to the appropriate government regarding the travel of the former president, should the decision be in favor of his travel," Albert said in a statement. Estrada last month secured a medical furlough from the court to allow him to have knee surgery in the United States on conditions he returns here March 31. But he was later summoned to the court after state prosecutors alleged that he planned to escape Philippine justice. His own aides suggested he would forego a US medical trip until after the May 10 election so he could help his movie icon friend Fernando Poe win the Philippine presidency. Estrada was asked to submit by the end of the month his US itinerary, which should include the names of specific hospitals, doctors, and a timetable before a final green light is issued. Albert said that should the court allow Estrada to go, her office would ask the US embassy to "take particular note of the pressing humanitarian aspects of this issue." While there might be some difficulty for the US embassy to grant visas to foreigners with criminal cases, Albert said "clearly it would not be impossible." Estrada was toppled by a popular revolt in 2001. He is accused of plundering a personal fortune of some 80 mln usd from state coffers during his 30 months in office and faces life imprisonment if found guilty. He has been under military detention since 2001, but has steadfastly denied the allegations. |
| Manila Jockey Club sets record, payment dates for 20 pct stock div |
MANILA (AFX-ASIA) - Horse racetrack operator Manila Jockey Club said its board of directors has set the record date for its 20 pct stock dividend on February 6 with payment to be made March 3. edelacruz@afxasia.com |
| Philippine central bank approves PNB's 2.2 bln peso notes issue |
MANILA (AFX-ASIA) - The central bank's Monetary Board has approved Philippine National Bank's planned 2.2 bln peso subordinated notes issue, which is expected to be launched in the next two weeks, central bank deputy governor Alberto Reyes said. JP Morgan Securities is underwriter of the 10-year peso-denominated issue. (1 usd = 55.70 pesos) afxmanila@afxasia.com |
| Manila shares close flat; last-minute buying in telecoms offsets losses |
MANILA (AFX-ASIA) - Share prices closed barely changed after sluggish trading, as last-minute buying in Philippine Long Distance Telephone Co and Globe Telecom offset the market's earlier decline, dealers said. The 30-company composite index closed down 0.41 points or 0.03 pct at 1, 560.02 on 404.11 mln shares worth 499.63 mln pesos. It traded between 1,553. 93 and 1,565.56. In the broader market, losers beat gainers 34 to 27, with 53 stocks unchanged. Dealers said investors have started what could be a long-term correction for the market, which rose to its highest level in 34 months early this week. The Commission on Elections' (Comelec) decision dismissing the disqualification case against popular presidential aspirant Fernando Poe Jr triggered profit-taking on select stocks in early to mid-session trade. Investors are said to be wary of the movie actor potentially taking the presidency, given his inexperience in government service and his close ties with former president Joseph Estrada, who was ousted from power on corruption charges. Dealers expect the composite index to move between 1,540 and 1,580 on Monday, with across-the-board profit-taking seen to dominate next week's trading. "While the underlying sentiment remains bullish, the market needs to undergo a correction before it can stage another rally. The Comelec decision on Fernando Poe's candidacy provided the excuse," AB Capital research director Jose Vistan Jr said. Most stocks have reached overbought levels, and a correction would prove to be healthy, he added. Accord Capital Equities analyst Ron Rodrigo said the decision of the electoral body seems to work as a double-edged sword in terms of market perception. "It is a serious matter in the sense that upholding the disqualification petition could have meant more protest, and certainly investors would not want that to happen. On the one hand, some investors are concerned the dismissal would further strengthen Fernando Poe's bid for the presidency," Rodrigo said. Top-traded SM Prime was unchanged at 6.30 pesos on 10.55 mln shares. Second most active Pilipino Telephone Corp erased earlier gains to close down 0.02 at 1.64 on 38.47 mln shares. PLDT gained 10 to 945 on 54,820 shares. Petron shed 0.05 to 3.25 on 12.6 mln shares. Globe was up 5.00 at 965 on 33,620 shares. Meralco B, available to foreigners, gained 0.50 to 35. Meralco A was unchanged at 20.75. Ayala Corp was down 0.10 at 6.20 on 3.8 mln shares, while unit Ayala Land ended flat at 6.30 on 4.19 mln shares. Filinvest Land was down 0.02 at 1.24 on 11.3 mln shares. The all-shares index was up 6.26 points at 950.14. The commercial-industrial index was down 0.73 at 2,382.36. Property declined 1.58 to 588.40, while mining gained 58.81 to 1,616.95. Oil was unchanged at 1.29, while banking and financial services was down 0.42 at 478.72. (1 usd = 55.723 pesos) cecille.yap@afxasia.com |
| Philippines' Comelec says actor Poe qualified to run for president |
(Updating with further details) MANILA (AFX-ASIA) - The Commission on Elections' first division has decided to dismiss a petition to disqualify opposition standard bearer Fernando Poe Jr from joining the presidential race in May. The petition, which was filed by lawyer Victorino Fornier, questioned the citizenship of Poe, a popular movie actor and a close ally of ousted Philippine president Joseph Estrada. The Comelec's first division said it threw out the petition for "lack of merit." Under the Constitution, only natural-born Filipino citizens are allowed to run for president. Although his mother is an American, Poe has insisted he adopted the citizenship of his Filipino father. Poe, popularly known as FPJ, has been topping surveys among presidential hopefuls since he declared his candidacy in late 2003. The decision came after three employees of the government's national archives office testified before a Senate hearing that the documents used in the disqualification case were fabricated, allegedly upon the orders of their chief, to show that Poe was not a natural-born Filipino citizen. The decision will be forwarded to the commission en banc, which will make a final ruling in the next few days. Fornier said he would appeal the ruling. Radio reports said an administration congressman was planning to elevate the citizenship issue against Poe to the Supreme Court. edelacruz@afxasia.com |
| Thai poultry placed on Philippine watchlist amid bird flu fears |
MANILA (AFX-ASIA) - Philippine authorities said they would closely monitor any Thai poultry products entering the Philippines amid fears of an avian influenza epidemic in Thailand. "Thai poultry have been placed on a watchlist, but there is no formal ban, " an aide to Jose Molina, the head of the Bureau of Animal Industry, told Agence France-Presse. A ban would take effect immediately "once there is a confirmation" of bird flu infection in Thailand, the aide added. The government in Bangkok on Friday reported five suspected human cases of avian influenza, which has already killed at least five people in Vietnam. Previously, Bangkok had said cholera, not bird flu, was killing its birds. Thai Prime Minister Thaksin Shinawatra said Friday it was "highly likely" there were human cases of bird flu in Thailand, as the government prepared to announce the results of tests on three suspected human infections. Last week the Philippines' agriculture department imposed an immediate ban on imports of domestic and wild birds as well as poultry products from Japan and Vietnam due to a confirmed outbreak of bird flu in those countries. The Philippines does not import its poultry from any of these countries, but Agriculture Secretary Luis Lorenzo said there was a possibility "that some travelers may bring in pet birds from Vietnam and Japan." |
| Philippine SEC orders stock exchange to sell its shares |
MANILA (AFX-ASIA) - The Securities and Exchange Commission (SEC) has directed the Philippine Stock Exchange (PSE) to sell its shares, either by offering a percentage of its unissued shares to an institutional investor or through a public offering. In a letter, SEC chairwoman Lilia Bautista expressed dismay that only 68, 960 shares out of the exchange's 9.2 mln shares have been traded since they were listed on the bourse on Dec 15. "It would seem that the brokers are not willing to sell their shares, or those who are willing to sell are pricing their shares too high," Bautista said. Bautista also reiterated the SEC's warning that buyers of the stocks should not be related to or affiliated with any broker. The SEC also prohibits broker-dealers from re-acquiring PSE shares, already sold through any other means, from third persons for their account or for the accounts of related persons, to prevent speculative trading of these shares. The restrictions are meant to encourage investors to buy into PSE. Under the Securities Regulation Code, PSE member-brokers should own no more than 20 pct of the exchange. PSE's Dec 15 listing was done through introduction or a listing without undertaking an initial public offering. At 10.50 am, PSE was so far untraded. It last traded at 195 pesos. (1 usd = 55.711 pesos) cecille.yap@afxasia.com |
| Forex - Philippine peso falls vs dollar on short-covering |
MANILA (AFX-ASIA) - The peso was weaker in late morning trade as banks continued to cover their short positions amid a lack of dollar inflows, dealers said. They said the market seemed to have no immediate reaction to the Commission on Election's decision dismissing a petition to disqualify opposition presidential candidate Fernando Poe Jr on the issue of his citizenship. The decision should ease worries about pre-election political uncertainties, as the disqualification of Poe, a popular movie actor, was earlier feared to trigger protest actions from his supporters, dealers said. At 10.53 am, the peso averaged 55.710 to the dollar, off an early low of 55.740, on volume of 23.5 mln usd. It closed at an eight-week low of 55.680 yesterday. "There's still short-covering but we've not been seeing fresh inflows," a commercial bank dealer said. A second dealer expects the peso to trade in a range of 55.650-55.800 today, "but the central bank may intervene at levels closer to 55.800." So far, the central bank was not seen in the market this morning, he said. The peso hit an all-time low of 55.850 in late 2003, weighed down by domestic political and security concerns. edelacruz@afxasia.com |
| Manila shares slightly lower early on technical correction, Comelec decision |
MANILA (AFX-ASIA) - Share prices were slightly lower in early trade as investors began to take profit after the market's recent gains, with a Commission on Election (Comelec) decision dismissing a disqualification petition against presidential candidate Fernando Poe Jr weighing on investor sentiment, dealers said. Poe, an action movie star, is a strong contender of President Gloria Arroyo in the May election, given his popularity. Investors, however, are wary of a Poe presidency, given his inexperience in government service and his close ties with former president Joseph Estrada, who was ousted from power on corruption charges. At 10.29 am, the composite index was down 3.71 points or 0.24 pct at 1, 556.72 on 140.82 mln shares worth 202.3 mln pesos. It has so far traded between 1,556.72 and 1,565.56. In the broader market, losers beat gainers 17 to 16, with 47 stocks unchanged. The market gave back earlier gains immediately after the Comelec rejected the disqualification plea, which effectively allows Poe to make a pitch on the presidency. The election commission's decision came after three employees of the government's national archives office testified before a Senate hearing that the documents used in the disqualification case were fabricated, upon the orders of their chief, to show that Poe was not born in the Philippines, and thus is not allowed to seek the presidential post. The market is seen trading between 1,540 and 1,580 today. (1 usd = 55.716 pesos) cecille.yap@afxasia.com |
| Philippines' Comelec throws petition to disqualify presidential candidate Poe |
MANILA (AFX-ASIA) - The Commission on Elections' first division has decided to dismiss a petition to disqualify opposition standard bearer Fernando Poe Jr from joining the presidential race in May. The petition, which was filed by lawyer Victorino Fornier, questioned the citizenship of Poe, a popular movie actor and a close ally of ousted Philippine president Joseph Estrada. Under the Constitution, only natural-born Filipino citizens are allowed to run for president. Although his mother is an American, Poe has insisted he adopted the citizenship of his Filipino father. Poe, popularly known as FPJ, has been topping surveys among presidential hopefuls since he declared his candidacy in late 2003. edelacruz@afxasia.com |
| STOCK ALERT- Philippines' Ayala Land, Filinvest Land up on rotational interest |
MANILA (AFX-ASIA) - Ayala Land Inc and Filinvest Land Inc were firmer in early trade on rotational interest in property stocks, dealers said. Second most active Ayala Land was up 0.10 pesos at 6.40 on 1.59 mln shares. Filinvest Land extended yesterday's gains, up 0.02 at 1.28 on 2.5 mln shares. "In a bull market, property stocks are always the last to go up. They are now playing catch-up to other blue chips, which have risen ahead," Accord Capital Equities analyst Ron Rodrigo said. Ayala Land's support is set at 6.10 pesos per share, and resistance at 6. 50. Filinvest Land, meanwhile, is seen to trade between an intra-day support of 1.22 and resistance of 1.36. (1 usd = 55.68 pesos) cecille.yap@afxasia.com |
| STOCKWATCH - Philippines' Piltel higher on speculative play, profit target |
MANILA (AFX-ASIA) - Pilipino Telephone Corp was higher in early trade, recovering from yesterday's decline, on persistent speculation that it will be used for the backdoor listing of affiliate Smart Communications Inc, the profitable wireless unit of Philippine Long Distance Telephone Co, dealers said. They added that expectations of the company's return to profit this year also encouraged further accumulation on the stock. Top-traded Piltel was up 0.08 pesos at 1.74 on 6.13 mln shares. Both PLDT and PLDT have denied there was a merger plan for the two wireless service providers. 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. However, analysts believe a Smart-Piltel merger is a better option in terms of costs for the PLDT group than an initial public offering. They added the market also welcomed Piltel's expected return to profitability in 2004. The company expects to book a net profit of 402.4 mln pesos this year, after a projected net loss of 3.33 bln in 2003. It reported a net loss of 21. 8 bln pesos for 2002. It expects its GSM subscriber base to grow to 3.68 mln at the end of this year from 2.78 mln as of end-2003. (1 usd = 55.68 pesos) cecille.yap@afxasia.com |
| First Philippine Holdings to list 192,859 shares on Jan 26 - PSE |
MANILA (AFX-ASIA) - First Philippine Holdings Corp is set to list 192,859 common shares on Monday, Jan 26, the stock exchange said. The shares to be listed were availed of and fully paid for under the company's stock option plan. In 1997, the stock exchange approved the listing application of First Holdings for an additional 18 mln common shares, with a par value of 10 pesos per share, to cover the firm's employee stock purchase plan (ESSP) and executive stock option plan (ESOP). The listing of the 192,859 shares will bring the number of common shares listed under stock option plans to a total of 8.97 mln shares. (1 usd = 55.68 pesos) afxmanila@afxasia.com |
| Philippines' PDIC to lend PBCom 7.6 bln pesos - report |
MANILA (AFX-ASIA) - The Philippine Deposit Insurance Corp has agreed to lend 7.6 bln pesos to Philippine Bank of Communications at an annual interest rate of 1.0 pct over a 10-year period, the Philippine Daily Inquirer reported. The report, citing unnamed sources, said the 7.6-bln government lifeline will be placed by the bank in government securities and pledged as collateral to the state-run insurance firm. The net interest income, minus taxes and the 1.0 pct interest payment, will accrue to PBCom as income assistance. The loan will entitle PDIC to four seats on the bank's board, which will eventually be expanded to 15 directors. Earlier, PBCom shareholders agreed to inject an additional 3.0 bln pesos in fresh capital to fund future expansion and increase the bank's asset base. The planned capital injection comes after the bank reported a nine months to September net loss of 85.35 mln pesos against a net profit of 281.8 mln pesos a year earlier. PBCom is majority owned by the Luy, Nubla and Chung families. The bank is also exploring the possibility of unloading its non-performing loans (NPLs) and non-performing assets (NPAs) to a special purpose asset vehicle (SPAV). (1 usd = 55.68 pesos) cecille.yap@afxasia.com |
| Philippines' Exportbank NPL ratio 18.93 pct as of Dec 16 |
MANILA (AFX-ASIA) - Export and Industry Bank said its non-performing loan (NPL) ratio stood at 18.93 pct as of Dec 16, 2003. It reported an NPL ratio of 19.78 pct as of Sept 19. In a statement, Exportbank said its NPLs totaled 2.00 bln pesos as Dec 16, against general provisions of 56.4 mln pesos and specific provisions of 2. 83 bln. The bank said its return on equity stood at 3.70 pct. (1 usd = 55.68 pesos) cecille.yap@afxasia.com |
| Philippine Supreme Court rules against changes to mobile phone billing- report |
MANILA (AFX-ASIA) - The Supreme Court has denied "with finality" the appeal of the National Telecommunications Commission (NTC) to change the way cellular phone companies bill customers, the BusinessWorld newspaper reported citing court documents. The Court, in a resolution, said NTC failed to persuade it to change the court's Aug 12 decision, which sent back to a lower court the petitons of Smart Communications Inc and Globe Telecom Inc against the NTC ruling. "Considering that the basic issues have already been passed upon and there is no substantial argument to warrant a modification of this court's decision, the Court resolves to deny reconsideration with finality," the Supreme Court said. With the High Court's order, cellular firms could now pursue their case before a Quezon City regional trial court to have the billing circular declared null and void. NTC memorandum circular 13-6-2000 would have removed the expiry dates on pre-paid cards, and at the same time would have mandated a new billing scheme for subscribers by charging them on a six-second pulse instead of on a per-minute basis. cecille.yap@afxasia.com |
| Philippine govt debt at 3.359 trln pesos end-Nov, up 1.17 pct mth-on-mth |
MANILA (AFX-ASIA) - The government's outstanding debt totaled 3.359 trln pesos as of end-Nov 2003, up 1.17 pct from the previous month's level of 3.32 trln, official figures show. Year-on-year, total public debt rose about 17.5 pct from 2.86 trln in 2002. The government has been borrowing heavily from local and foreign markets to finance its budget deficit, which is seen contained below the target of 202 bln pesos for 2003. It aims to balance the annual budget by 2009. (1 usd = 55.68 pesos) cecille.yap@afxasia.com |
| Philippines' Chinabank NPL ratio 14.56 pct as of Dec 16 |
MANILA (AFX-ASIA) - China Banking Corp said its nonperforming loans (NPL) ratio stood at 14.56 as of Dec 16. NPLs stood at 15.42 pct as of Sept 19. In its published statement of condition, the bank said its NPLs totalled 8.78 bln pesos, against general provisions of 2.44 bln and specific provisions of 4.13 bln. Return on equity stood at 17.74 pct. (1 usd = 55. 68 pesos) cecille.yap@afxasia.com |
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