|
|
Manila shares down ahead of US Fed interest rate decision,
Arroyo inauguration |
MANILA (AFX-ASIA) - Share prices were slightly lower in
early trade on caution ahead of the US Federal Reserve's policy
call and President Gloria Arroyo's inauguration, dealers said.
At 10.13 am, the 30-company composite index was down 3.92
points or 0.25 pct at 1,582.43 on 230.3 mln shares worth 43.78
mln pesos. It has so far traded between 1,581.00 and 1,587.62.
Gainers beat losers 21 to 10 in the broader market, while
31 stocks are so far unchanged.
Philippine Long Distance Telephone Co was top-traded, but
unchanged at 1, 150 on 8,830 shares after its New York-traded
American Depositary Receipts corrected overnight.
Second most active Bank of the Philippine Islands was also
steady at 43. 00 pesos on 165,200 shares.
Dealers expect trading to be sluggish and range-bound as
investors await the US Fed's statement for clues on how
aggressively it will increase interest rates in the coming
months.
A 25-basis point increase in the benchmark rate, the first
in four years, has been widely anticipated at today's policy
meeting.
Investors are also monitoring the inaugural celebration of
President Arroyo, hoping that no incident will take place amid
mass protests likely to be staged by supporters of defeated
presidential candidate Fernando Poe Jr.
Philippine security forces yesterday said hey had foiled a
plot by an Al-Qaeda linked Southeast Asian terror group to bomb
ceremonies marking Arroyo's inauguration. Counter-terrorist
police units swooped on an eastern Manila Muslim community
before dawn, detaining six men and seizing five kilograms of
explosives.
(1 usd = 56.21 pesos)
cecille.yap@afxasia.com
|
|
STOCK ALERT -Philippines' PLDT slightly lower early on ADR fall,
profit-taking
|
MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT)
was slightly lower in early light trade as investors started to
lock in profits following a fall in its American Depositary
Receipts' (ADRs) in New York last night, dealers said.
PLDT was down 5.00 pesos at 1,145 on 550 shares.
Its New York-traded ADRs shed 0.36 usd to 20.60 last night.
(1 usd = 56.215 pesos)
cecille.yap@afxasia.com
|
|
Philippines' Arroyo seeks unity, vows fiscal prudence in
pre-inaugural speech |
MANILA (AFX-ASIA) - President Gloria Arroyo sought
reconciliation with her critics and promised a government that
will exercise fiscal prudence, fight corruption and ensure
economic growth in the next six years.
In her 15-minute pre-inaugural speech in Manila, Arroyo
also promised an honest and competent government, and asked the
Filipino people to support her administration in the challenges
ahead.
"I offer my hand and I hope it will be taken with the same
faith," said the 57-year-old US-trained economist who won in the
bitterly contested election on May 10.
"Unity is not measured by how many political parties are
able to achieve the accommodation of narrow self interest.
Rather it is achieved by the harmony of the sincere convictions
based on our agreement on the basic requirements for achieving
the national good."
Arroyo beat opposition standard-bearer Fernando Poe Jr, one
of the country's most popular film stars, by a little over 1 mln
votes. But the camp of Poe has refused to accept defeat,
accusing her group of cheating.
Arroyo will be inaugurated at noon today in Cebu in the
central Philippines, which delivered the decisive votes for her,
as the 14th President of the Republic.
She said her government will also observe fiscal
discipline.
"I pledge to you a government that will live within its
means and put every spare peso to real work," she said.
The government has promised to balance the budget by 2009.
For this year, however, its budget deficit is expected to reach
197.8 bln pesos, or 4.2 pct of gross domestic product (GDP).
Analysts said that for the Arroyo administration to win
back investor confidence in the economy, it must ensure that the
budget deficit is trimmed to avoid further bloating of the
government's burgeoning debt.
"I pledge to reduce spending where government doesn't work
and increase spending where government can make a difference for
the better," she said.
"And while I'm doing that, I will clamp down on wasteful
and abusive officials and influence peddlers."
She said her government will "collect taxes mandated by law
even as I stop extortion masquerading as tax collection."
She also promised to go after tax cheats.
She said she will "do everything to expand our economy,
engage it in the world of commerce and advance the interest or
our country and our people the world over."
Arroyo also sought the support of businessmen "to rise to
the occasion and embrace self-less nationalism, invest in our
people and in our country, instead of giving excuses for keeping
your money abroad where it cannot put our people to work."
Arroyo also vowed to create millions of new jobs in the
next six years, provide funding for small entrepreneurs, provide
electricity and water to all local communities, develop the
agri-business sector, and send every Filipino child to school.
She urged Congress to pass laws that will "transform the
nation."
The country, she said, will need laws that will modernize
the banking sector, reform our bureaucracy, and strengthen "the
independence and honesty of our judges."
Arroyo said she also "challenge(s) myself and our
government to live up to the highest standards of honesty and
competence in the public service."
"I shall make good, and I shall do good for the good of all
and not just for the cameras," she said.
Yesterday, anti-riot police used truncheons, water cannon
and tear gas to disperse groups that included supporters of Poe,
who protested against Arroyo's election victory.
afxmanila@afxasia.com |
|
Philippine RCBC to free up 2 bln peso reserves after idle asset
sale - report |
MANILA (AFX-ASIA) - Rizal Commercial Banking Corp (RCBC) is
set to get 2 bln pesos worth of loan loss provisions once it
transfers some 3.9 bln pesos of idle assets to US investment
bank Lehman Brothers, the BusinessWorld newspaper reported,
quoting vice-chairman and chief executive officer Cesar Virata.
"We are allowed to keep now the provisioning we have on
these non-performing loans," Virata was quoted to have said.
Virata said the central bank is still examining the idle
assets to be sold.
(1 usd = 56.20 pesos)
cecille.yap@afxasia.com
|
|
Manila shares outlook - Mixed to higher on Arroyo inauguration,
Wall St gains
|
MANILA (AFX-ASIA) - Share prices are expected to open mixed
to higher as Gloria Arroyo is inaugurated today as the country's
14th President, with sentiment boosted by Wall Street's
overnight gains and extended window-dressing for the first half,
dealers said.
However, some investors are likely take profit on stocks
which have gained sharply in recent days, while they keep a
close watch on the US Fed's statement about the future of US
interest rates, dealers added.
The 30-company composite index closed at a fresh two-month
high yesterday, up 6.00 points or 0.38 pct at 1,586.35 on 586.06
mln shares worth 414.89 mln pesos.
In the broader market, gainers beat losers 31 to 19, while
53 stocks closed unchanged.
The American Depositary Receipts of Philippine Long
Distance Telephone Co, the country's benchmark stock, shed 0.36
usd to 20.60 in New York last night.
"Market players will look for clues how institutional fund
managers will respond to developments that will transpire today.
This will include expectations of peaceful inauguration of
President Arroyo's new administration, and the US Fed's monetary
policy stance on their widely-followed interest rates,"
2TradeAsia.com said.
Arroyo, in her inaugural speech, vowed to create six to 10
mln new jobs during her fresh six-year term in office.
The US-trained economist also committed to provide funding
for 3 mln small entrepreneurs, provide electricity and water to
all local communities, develop 1 mln hectares of agri-business
land and send every Filipino child to school.
Arroyo also extended her hand of reconciliation to rivals
in the presidential race.
AB Capital Securities research director Jose Vistan Jr
advised investors to carefully scrutinize the US Fed's
accompanying statement for clues to how aggressive the Fed will
be in hiking rates in the months ahead.
"Market players are also keeping their fingers crossed that
no untoward incident will occur in the presidential
inauguration," Vistan added..
The market's support is at 1,570 and resistance at 1,610,
dealers said.
(1 usd = 56.20 pesos)
cecille.yap@afxasia.com
|
|
Philippines to raise 250 mln usd more for Napocor financing
requirements |
MANILA (AFX-ASIA) - The national government has increased
the size of its 750-mln usd global bonds maturing in 2017 by 250
mln usd to a total 1 bln usd, to accommodate the financing
requirements of state-run National Power Corp, National
Treasurer Mina Figueroa said.
The official said the government is able to borrow at a
cheaper rate than if the debt-saddled power firm were to do it
on its own.
"Anyway, these (debts) would be assumed by the national
government eventually," Figueroa told reporters.
The government is set to absorb 500 bln pesos worth of
Napocor's debts to pave the way for its privatization.
In April, the government also re-opened two bond issues
maturing on 2011 and 2014 to borrow 400 mln usd more in behalf
of Napocor.
The power firm's 2004 financing requirement stands at 1.5
bln usd. It tapped the domestic market via the issue of 12.5-bln
worth of zero-coupon bonds early this year.
afxmanila@afxasia.com
|
|
Philippines' RCBC sees Q2 results 'better' than Q1 - vice
chairman |
MANILA (AFX-ASIA) - Rizal Commercial Banking Corp expects
to post improved results in the second quarter to June compared
to the previous quarter, on the back of higher interest gains,
vice-chairman Cesar Virata said.
The bank posted a net profit of 360.16 mln pesos in the
first quarter, down from the year-earlier 562.32 mln.
"Our second quarter will be a lot better than the first
quarter. Our working estimate is probably l.2 bln pesos (net
profit) for the whole year," he said, without giving further
details.
Net profit in 2003 came in at 1.43 bln pesos, up 2.8 pct
from 1.39 bln the previous year, boosted by portfolio
diversification and spending control.
Virata meanwhile said the bank will free up some 2 bln
pesos in provisions with the planned sale of 3.9 bln pesos worth
of idle assets this year.
The bank has linked up with Lehman Brothers to dispose of
its non-performing assets.
(1 usd = 56.2 pesos)
afxmanila@afxasia.com
|
|
Philippines
rejects bids for 2-yr T-bonds |
MANILA (AFX-ASIA) - The government rejected all bids at
today's auction of two-year Treasury bonds due to high premiums
sought by banks, the Bureau of Treasury said.
Tenders totaled 5.55 bln pesos, against an offer of 4.5 bln.
(1 usd = 56.2 pesos)
afxmanila@afxasia.com
|
|
Philippines' Clark international airport to undertake 300 mln
usd upgrade |
MANILA (AFX-ASIA) - The Clark International Airport Corp
will soon undergo a 300 mln usd upgrade and expansion, having
appointed Japanese firm Pacific Consultants Inc to help it in
the drafting of a development plan, president Adelberto Yap
said.
The aim is to make the airport at the former Clark air base
in Pampanga, also known as the Diosdado Macapagal International
Airport, an alternative to the Ninoy Aquino International
Airport (NAIA) in Manila.
Yap said the development plan for the airport at Clark air
base is to be accelerated after its inclusion, as well as that
of Subic Bay Port in nearby Zambales, in the 10-point economic
agenda of President Gloria Arroyo.
Arroyo won a fresh mandate in the May 10 election and will
begin a six-year term tomorrow.
Yap said the plan includes upgrading the existing passenger
terminal in anticipation of increased volume, and its
integration with other ongoing infrastructure projects, such as
the North Luzon Railway, the Clark-Subic highway, the Clark-Tarlac
expressway, among others.
The first phase of the airport project will need 70 mln usd,
which will involve the upgrading of the terminal, while the
second phase will require some 90 mln usd, he said.
The company plans to use multilateral funding for the
project's first phase.
Another 150 mln usd will be needed to set up a logistics
and maintenance complex in the airport, he added, although
private companies like aircraft makers Boeing Co or Airbus may
build it.
Yap said Pacific Consultants had provided consultancy
service to the Manila International Airport Authority,
particularly for the design of NAIA's Terminal 1 and 2.
Arroyo said part of her 10-point economic plan is "to
develop former US bases Clark Field in Pampanga, and Subic Bay
in Zambales as the region's best international service and
logistics center."
afxmanila@afxasia.com
|
|
Philippine PLDT declares cash div on Series A, I, R, W, AA, BB
preferred shrs |
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT)
has declared a 1.00 peso per share cash dividend on its Series
A, I, R, W, AA, BB 10 pct cumulative convertible preferred
stock.
Dividends will be paid to stockholders on record as of July
28. Payment date is set for August 31.
(1 usd = 56.20 pesos)
cecille.yap@afxasia.com
|
|
Manila shares close higher ahead of Arroyo inauguration; PLDT
leads |
MANILA (AFX-ASIA) - Share prices closed higher, with the
main index ending at a two-month high, on window-dressing
activity ahead of President Gloria Arroyo's inauguration
tomorrow, dealers said.
Heavy buying into Philippine Long Distance Telephone Co,
after the sharp gains of its American Depositary Receipts
overnight, also gave the benchmark index a boost, they added.
The 30-company composite index closed up 6.00 points, or
0.38 pct, at 1, 586.35 on 586.06 mln shares worth 414.89 mln
pesos. It had traded between 1, 580.00 and 1,595.04.
The closing was the index's highest since April 28, when it
ended the day at 1,610.31 points.
In the broader market, gainers beat losers 31 to 19, while
53 stocks closed unchanged.
Top-traded PLDT gained 25 pesos to 1,150 on 132,230 shares,
accounting for over a third of the bourse's value turnover. Its
ADRs rose 0.59 usd at 20. 96 in New York overnight.
Dealers said the market may test the 1,600-point level
tomorrow, although investors will likely remain cautious,
keeping a close watch for any protest action from supporters of
defeated opposition presidential candidate Fernando Poe Jr.
The US Federal Reserve's policy meeting on Wednesday, when
it is widely expected to result in a 25 basis points increase in
the US benchmark rate, has largely been discounted, dealers
said.
"Arroyo's victory and the US Fed's widely anticipated rate
hike had taken away some of the market's worries," Unicapital
Securities research director Elena Ponceca said.
Fund managers were also seen beefing up their portfolios as
the first half neared an end, she added.
"Investors remain cautiously optimistic. Some have decided
to wait on the sidelines to make sure that major events such as
the inauguration, the US Fed meeting and Iraq's hand over pass
before making any major investment decision, " Accord Capital
Equities analyst Ron Rodrigo said.
He expects the main index to test the 1,592-1,600 points
level tomorrow.
Second most active Globe Telecom on 65,020 shares was down
5.00 pesos at 845.
Manila Electric B, available to foreigners, was up 0.50 at
30.50, while Meralco A was unchanged at 18.50.
First Holdings was up 0.50 at 29.50.
Metrobank gained 0.50 to 28.
Ayala Corp shed 0.10 to 5.70.
The all-shares index gained 4.41 points to 1,011.88.
The commercial-industrial index was up 9.74 at 2,466.98.
Property was down 0.82 at 543.39.
Mining gained 13.61 to 1,538.81, while oil retreated 0.08
to 1.80.
Banking and finance rose 2.95 to 477.21.
(1 usd = 56.20 pesos)
cecille.yap@afxasia.com |
|
Philippines' manufacturing sector to see continued recovery -
Neri |
MANILA (AFX-ASIA) - The manufacturing sector is showing
signs of continued recovery, despite the 5.2 pct year-on-year
contraction in the volume of output in April, Economic Planning
Secretary Romulo Neri said.
He noted that, despite the contraction in the sector's
volume of output in April, the value of net sales improved 20.2
pct year-on-year, while sales rose 7.6 pct year-on-year in
volume.
As such, the government remains confident the sector will
grow 4.8 pct this year as projected, which is in line with the
targeted expansion of at least 4.9 pct for the gross domestic
product, Neri added.
He said the substantial gain in net manufacturing sales
value in April came from both the domestic and export-oriented
industries.
"Electrical machinery and basic metals continued to perform
well as the sectors posted growths of 68.5 pct and 49.8 pct,
respectively. These (sectors) certainly benefited from stronger
growths of key trading partners, such as the US, Japan, Asia,
and also China," Neri said in a press release.
He also noted that the sector's capacity utilization in
April improved to 78.8 pct from 77 pct in the same month last
year. The rate was unchanged from the preceding month.
Sub-sectors that operated above 80 pct capacity in April
were those that were involved machinery (excluding electricals),
leather products, paper and paper goods, rubber products,
miscellaneous manufacturing, petroleum products, basic metals
and food manufacturing.
afxmanila@afxasia.com
|
|
Philippines' Ayala Land names new president, treasurer
|
MANILA (AFX-ASIA) - Ayala Land Inc said its executive
vice-president Jaime Ayala will assume the position of company
president with effect from July 1, replacing Francisco Licuanan
III who will retire from the company as president on June 30.
Ayala, who joined the Ayala Corp's property arm early this
year, is not related to the Zobel de Ayala family that controls
the real-estate developer.
Ayala has also been appointed member of Ayala Land's
nomination committee and executive committee, with effect from
July 1.
Jaime Ysmael, who is currently Ayala Land's chief finance
officer, will assume the position of treasurer, effective July
1, replacing Mercedita Nolledo, who will retire from the company
as executive vice-president and treasurer on June 30.
Licuanan and Nolledo will however remain as members of
Ayala Land's board of directors, the company told the stock
exchange.
Ayala was managing director of the local unit of
consultancy firm McKinsey Co before he joined Ayala Land.
afxmanila@afxasia.com
|
|
Philippines' Cosmos Q1 net
profit 218.33 mln pesos vs 59.02 mln |
MANILA (AFX-ASIA) - Cosmos Bottling Corp's first quarter to
March results:
Net sales - 2.62 bln pesos vs 1.94 bln
Cost of sales - 1.72 bln pesos vs 1.43 bln
Gross profit - 896.14 mln pesos vs 508.08 mln
Operating profit - 325.38 mln pesos vs 105.86 mln
Other operating profit - 8.9 mln pesos vs 5.94 mln
Operating expenses - 579.68 mln pesos vs 408.17 mln
Net profit - 218.33 mln pesos vs 59.02 mln
Earnings per share (basic) - 0.242 pesos vs 0.025
Earnings per share (diluted) - 0.242 pesos vs 0.025
(1 usd = 56.22 pesos)
cecille.yap@afxasia.com
|
|
Forex - Philippine peso
extends falls ahead of FOMC, short-covering |
MANILA (AFX-ASIA) - The peso was weaker against the US
dollar in early trade, extending falls ahead of the US Federal
Open Market Committee (FOMC) policy decision this week, dealers
said.
They added that some corporates are also covering their
short positions and beefing up their dollar reserves for future
requirements.
At 10.08 am, the peso was at 56.211 to the dollar after
trading between 56.20-56.23 on volume of 82 mln usd. It closed
at 56.140 yesterday.
"We're seeing some dollar demand by corporates, but I don't
expect this to pull down the peso to 56.30s," a commercial bank
dealer said.
"The regionals are also weak ahead of the US Fed decision,
although I believe the market has already factored in a 25 basis
point hike."
An interest rate hike in the US will make dollar assets
more attractive for investors.
Yesterday, central bank Governor Rafael Buenaventura
reiterated that the policy-making Monetary Board is likely to
keep the central bank's overnight interest rates steady, despite
a possible 25-basis point rise in the key interest rate in the
US and the recently approved wage increase for workers here.
The Monetary Board's next policy-setting meeting is
scheduled for Thursday.
The central bank's overnight rates have remained unchanged
for about a year now at 6.75 pct for borrowing and 9.00 pct for
lending.
Buenaventura said that despite inflationary pressures
arising from the latest 20-peso increase in daily wages, the
central bank remains confident inflation this year will still be
well within the government's 4-5 pct target.
However, Buenaventura noted that at the peso's current
level, political risks in the Philippines are still factored in.
"The peso is paying a 2-3 pesos political risk premium," he
said at a forum organized by the Foreign Correspondents
Association of the Philippines.
He said the government needs to address the country's
budget deficit and pursue reforms in the power sector, including
the privatization of assets of the National Power Corp, to boost
confidence in the peso and the Philippine economy in general.
The peso fell to a record 56.45 in late March amid
political uncertainty ahead of the May 10 presidential election.
Dealers said there is also some caution ahead of tomorrow's
inauguration of President Gloria Arroyo, who won a fresh term in
the May election.
afxmanila@afxasia.com
|
|
Philippine Banco De Oro may go
to court should Equitable deal with SSS fail
|
MANILA (AFX-ASIA) - Banco De Oro Universal Bank said it may
go to court should the Social Security System (SSS) renege on
its commitment to sell its 29 pct stake in Equitable PCI Bank to
Banco De Oro.
"Court enforcement of the purchase agreement with SSS or
acquisition of branch licenses are courses of action always open
to Banco De Oro," the Sy-controlled bank told the stock exchange
in a disclosure.
Banco De Oro President Nestor Tan earlier said it plans to
tap the debt market and issue new shares to finance the 8.3-bln
pesos acquisition of a substantial stake in Equitable PCI Bank.
SSS wants its 29 pct stake in Equitable PCI paid in cash,
instead of an earlier agreement for it to be paid in tranches.
(1 usd = 56.22 pesos)
cecille.yap@afxasia.com
|
|
Typhoon Mindulle hits northern Philippines; no reports of
casualties/damage |
MANILA (AFX-ASIA) - Typhoon Mindulle struck the northern
Philippines early today packing winds of 150 kilometers an hour
but there were no immediate reports of casualties or damage,
officials said.
The eye of the cyclone hovered about 270 kilometers
northeast of Aparri town on the northeast coast of Luzon island
at 4:00 am, they said.
The typhoon radiated over 600 kilometers, pummelling half
the Southeast Asian country's largest island with gusts of up to
185 kilometers an hour.
Civil defense officials said there were no immediate
reports of casualties or damage.
Mindulle should be about 120 kilometers southwest of the
Batan islands near southern Taiwan by Thursday morning, the
weather service said.
It warned residents of coastal and mountainous areas to be
on alert for possible flash floods and landslides, saying the
typhoon would dump rain over the western section of the islands.
|
|
STOCK ALERT - Philippines' PLDT sharply higher on ADR gains
|
MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co
was sharply higher in early trade, tracking the rise of its
American Depositary Receipts last night, dealers said.
Top-traded PLDT was up 40 pesos or 3.56 pct at 1,165 on
volume of 13,180 shares, pushing the main composite index up
14.36 points or 0.91 pct to 1,594. 71.
PLDT's ADRs gained 0.59 usd to 20.96 overnight in New York.
(1 usd = 56.22 pesos)
cecille.yap@afxasia.com
|
|
Philippine Ever-Gotesco's suspension lifted - stock exchange
|
MANILA (AFX-ASIA) - Trading in the shares of Ever-Gotesco
Resources and Holdings Inc will resume today, the Philippine
Stock Exchange said.
The Securities and Exchange Commission has earlier lifted
its order preventing Ever-Gotesco from selling securities to the
public.
afxmanila@afxasia.com
|
|
Philippines' Aboitiz Transport considers rate hike - report
|
MANILA (AFX-ASIA) - Shipping firm Aboitiz Transport System
Corp said it is looking at raising rates for freight and
passenger services due to rising fuel costs, the BusinessWorld
newspaper reported, quoting its chairman Jon Ramon Aboitiz.
"We are assessing the need for (an increase). We are
looking at the June numbers," Aboitiz was quoted to have said.
Aboitiz Transport, formerly WG&A Inc, last increased its
rates in Oct 2003.
The company has 21 ships, which company officials said
would be compliant to the International Ship and Port Security
Code by July 15.
At yesterday's annual meeting, stockholders approved the
increase in the company's authorized capital stock to 2.525 bln
pesos from 1.775 bln to accommodate a planned stock dividend,
the report said.
cecille.yap@afxasia.com
|
|
Philippine Airlines, Cebu Pacific fare hike petition approved -
report |
MANILA (AFX-ASIA) - The Civil Aeronautics Board has
approved the petition of Philippine Airlines and Cebu Pacific
for an increase in their overseas fares by 6.00 usd per one-way
trip or 12 usd for a round-trip, the Philippine Daily Inquirer
newspaper reported, quoting unidentified sources.
The increase, effective immediately, will cover the
additional cost of fuel. Fuel accounts for 38 pct of an
airline's operating cost per passenger, the report said.
PAL earlier said the increase in jet fuel prices pushed its
operating expenses per passenger up by 20.84 usd, while Cebu
Pacific's costs went up by 9 usd.
Earlier, 14 foreign airlines asked for a 20-usd increase
for a one-way trip.
(1 usd = 56.14 pesos)
cecille.yap@afxasia.com
|
|
Manila shares outlook - Mixed ahead of US Fed meeting, Arroyo's
inauguration |
MANILA (AFX-ASIA) - Share prices will likely open mixed in
sluggish trade as investors stay on the sidelines ahead of the
US Federal Reserve's two-day policy-setting meeting and
President Gloria Arroyo's inauguration tomorrow, dealers said.
Yesterday, the 30-company composite index closed up 0.84
points or 0.05 pct at a two-month high of 1,580.35 on volume of
575.03 mln shares valued at 268.1 mln pesos.
In the broader market, losers edged out gainers 28 to 27,
with 45 stocks unchanged.
2TradeAsia.com said another flat trading session is
expected ahead of several major events that include Arroyo's
inaugural address and the US Fed's main policy call.
The US Fed is widely expected to raise the benchmark rate
by 25 basis points from a 46-year low of 1.0 pct.
"Investors will remain heedful whether President Arroyo's
inaugural address will be carried out in a peaceful manner,
coupled with the US FOMC's main policy call on interest rates
and trends affecting global crude prices, among others,"
2TradeAsia.com said.
The market's support is at 1,520 and resistance at 1,620,
dealers said.
(1 usd = 56.14 pesos)
cecille.yap@afxasia.com
|
|
Philippines' Napocor sees return to profit if rate hike is
approved - official
|
MANILA (AFX-ASIA) - State-owned National Power Corp (Napocor)
may return to profitability once it is allowed to implement an
average 1.85 pesos per kilowatthour increase in its basic rate,
Power Sector Assets and Liabilities Management Corp (PSALM)
president Raphael Lotilla said.
PSALM is the company created by the government to absorb
the Napocor assets set to be privatized.
Napocor last week filed a petition with the Energy
Regulatory Commission (ERC) to increase the rates it charges
power distributors, which include Manila Electric Co, by an
average 1.85 pesos per kWh nationwide.
Napocor has proposed to increase its rates to 4.5567 per
kWh from 2.5736 for Luzon; 4.5887 per kWh from 2.8172 in the
Visayas; and 3.1318 per kWh from 1.8035 in Mindanao.
The new rates, if approved, would mean an increase of
1.9831 pesos per kWh in Luzon, 1.7715 per kWh in the Visayas and
1.3283 per kWh in Mindanao, Napocor said.
"(With the rate hike,) Napocor will be able to achieve a
positive operating income. Its operating loss will be covered
until 2006," Lotilla said.
Otherwise, Napocor expects to incur operating losses of
about 50 bln pesos annually in the next two years.
Lotilla said the proposed rate hike is necessary in order
to attract investors into the power sector.
"There will be no private investors (interested) to come in
unless they (know they) will make a reasonable rate of return.
And to be able to get these reasonable rates, we should remove
artificially low power rates," he said.
"These new investments are needed to prevent future power
brownouts."
Napocor president Rogelio Murga said the rate hike will
ensure Napocor's continuous operation and viability while the
government tries to invite investors to take a look at its power
plants.
"With this attractive rate adjustment, maybe investors will
come and build power plants and mitigate the crisis that is
expected by 2008," Murga said.
Napocor incurred a net loss of 100 bln pesos in 2003,
tripling from the previous year's 33.7 bln. The heavily-indebted
company has been paying huge interest and incurring foreign
exchange losses at the same time.
Energy Secretary Vincent Perez said the government is
coming up with a "comprehensive" plan to cushion the impact of
the rate increase on consumers.
"We will do everything to make sure that the impact will be
minimal. The energy (department) will be finalizing early next
week the details of these measures," Perez told reporters.
(1 usd = 56.14 pesos)
afxmanila@afxasia.com
|
|
Philippines' Global Equities to develop Batangas property
|
MANILA (AFX-ASIA) - Global Equities Inc said it will
develop its 16-hectare property in Batangas province into a
residential subdivision.
The property is mortgaged to Rizal Commercial Banking Corp
(RCBC) and is owned by Globe Equities unit Mount Ridge Executive
Resort and Development Center.
"We confirm that Global Equities is in the final stages of
executing an agreement with Sta Lucia Realty Inc (developer) and
RCBC (creditor) to develop the 16-hectare property located at
Laurel, Batangas," Global Equities told the stock exchange.
afxmanila@afxasia.com
|
|
Philippines' June CPI seen up 4.2-4.6 pct yr-on-yr - central
bank |
MANILA (AFX-ASIA) - The consumer price index is expected to
have risen 4. 2-4.6 pct year-on-year in June, central bank
governor Rafael Buenaventura said.
The CPI rose 4.5 pct year-on-year in May.
The National Statistics Office is set to announce the June
CPI data on July 6.
afxmanila@afxasia.com
|
|
Philippine Exportbank increases authorized capital to 8.5 bln
pesos |
MANILA (AFX-ASIA) - Export and Industry Bank (Exportbank)
said its board of directors has increased its authorized capital
to 8.5 bln pesos from 7.5 bln.
The capital hike will be implemented by increasing the
bank's preferred shares to 2.5 bln shares from 1.5 bln, it said.
"The issuance of the new series of preferred shares shall
be subject to prior central bank approval and compliance with
the requirements of the Securities and Exchange Commission,"
Exportbank told the stock exchange.
The capital increase will be presented to stockholders on
Sept 10 for approval.
(1 usd = 56.15 pesos)
cecille.yap@afxasia.com
|
|
Philippines economic and corporate news summary LDH21
|
BEIJING (AFX-ASIA) - A summary of Philippine economic and
corporate news at 0500 GMT
-April manufacturing output down 5.2 pct yr-on-yr by volume
-Philippines likely to keep key interest rate steady for
now - Buenaventura
-Philippines to push for shift to gross income taxation
system - Arroyo
-Two held in Philippines over alleged bomb plot ahead of
Arroyo inauguration
-San Miguel H1 net profit seen up 30 pct yr-on-yr - vice
chairman
-San Miguel to set up liquor unit in Malaysia in 2-3 mths -
vice chairman
-San Miguel's planned Malaysia unit to sell beer/liquor
products in Singapore
-Philippine bankers, PDIC seek to extend period for SPV
incentives
-Globe Telecom engineers freed by kidnappers - police
xiaojing.jiang@xfn.com
|
|
Australia & New Zealand economic and corporate news summary
LDH25 |
BEIJING (AFX-ASIA) - A summary of Australia and New Zealand
economic and corporate news at 0500 GMT
-Air New Zealand plans 160 mln nzd long-haul fleet makeover
-Australian LNG suppliers expanding presence in Seoul
-AMP, Macquarie Bank to raise 249 mln aud through DUET IPO
-AWB, Graincorp plan grain export logistics joint venture
-Southcorp to book 93 mln aud of restructuring costs in
FY04
-Zinifex renews Century zinc project mining JV
-Rio Tinto's Comalco unit sells Boke bauxite project stake
for 11.75 mln usd
-News Corp appoints Thornton as independent director
xiaojing.jiang@xfn.com
|
|
Philippines likely to keep key interest rate steady -
Buenaventura - UPDATE |
(Updating with more comments from central bank governor)
MANILA (AFX-ASIA) - The policy-making Monetary Board is
likely to keep the central bank's overnight interest rates
steady, despite a possible 25-basis point rise in the key
interest rate in the US and the recently approved wage increase
for workers here, central bank Governor Rafael Buenaventura
reiterated.
The Monetary Board's next policy-setting meeting is
scheduled for Thursday.
"We may probably keep interest rates stable for a while,"
he told reporters.
"The US Fed (rate hike) has been factored in," he said.
The central bank's overnight rates have remained unchanged
for about a year now at 6.75 pct for borrowing and 9.00 pct for
lending.
Buenaventura said, despite inflationary pressures arising
from the latest 20-peso increase in daily wages, the central
bank remains confident inflation this year will still be well
within the 4-5 pct target of the government.
"What we're a little worried about is next year's
(inflation) level. A bulk of the pressure is on the supply side,
particularly oil," Buenaventura said at a Foreign Correspondents
Association of the Philippines' (FOCAP) forum this morning.
The government also expects inflation growth of 4-5 pct
next year.
However, Buenaventura noted that the peso's current level,
a little above 56 to the US dollar, still factors in political
risks in the Philippines.
"The peso is paying a 2-3 pesos political risk premium," he
said.
The local unit averaged 56.154 to the dollar at the end of
the morning trade, after closing at 56.095 on Friday, data from
the Philippine Dealing System showed.
It fell to a record 56.45 in late March amid political
uncertainties ahead of the May 10 presidential election.
"Let's give the peso a little bit of time to recover.
Obviously, President (Gloria) Arroyo's proclamation is barely a
week old...(but that in itself) has removed one uncertainty,
particularly on whether we will have a new president before June
30," Buenaventura said.
The government has addressed the country's budget deficit
and the need to reform its electricity sector, particularly
ahead of the National Power Corp's privatization, "to put the
Philippines on (track) to solid economic growth," he added.
afxmanila@afxasia.com
|
|
Manila
shares close mixed amid lack of leads |
MANILA (AFX-ASIA) - Share prices closed mixed in light
trade in the absence of fresh leads, dealers said.
Investors locked in some of the recent gains made in select
stocks led by Philippine Long Distance Telephone Co (PLDT), but
interest in Ayala companies provided the market some support,
they said.
The 30-company composite index closed up 0.84 points or
0.05 pct at a two-month high of 1,580.35 on volume of 575.03 mln
shares valued at 268.1 mln pesos. It moved between 1,566.53 and
1,580.35.
In the broader market, losers edged out gainers 28 to 27,
with 45 stocks unchanged.
"The market is in consolidation mode after last week's
gains. People are waiting for signals or new leads," DA Market
Securities president Nestor Aguila said.
PLDT was top-traded on 52,570 shares, but down 15 pesos at
1,125.
Dealers, however, said investor support for PLDT remains
strong on expectations of further gains from its mobile phone
business in the second quarter.
PLDT Chairman Manuel Pangilinan earlier said it was
possible that first half net profit may double to 10.5 bln pesos
from its first quarter level of 5.24 bln.
PLDT expects to report its second quarter results in early
August.
"There are no major news (items) to sustain interest in the
market, with investors having factored in the June 30 inaugural
of President (Gloria) Arroyo," Accord Capital Equities analyst
Lawrence de Leon said, adding that the market also expects an
interest rate hike in the US of up to 25 basis points.
"I guess investors will just sit on the sidelines and wait
for the second-quarter earnings," he said.
PLDT rival Globe Telecom was down 10 at 850.
Ayala Corp was up 0.20 at 5.80, and unit Bank of the
Philippine Islands was up 0.50 at 43.
Ayala Land Inc was up 0.10 at 5.70.
Dealers said that although it is now all-systems-go for
Arroyo's inauguration, investors will continue to monitor the
moves of the political opposition and supporters of defeated
presidential candidate Fernando Poe Jr. There have been reports
of street protests by supporters of the movie star who has
claimed he was cheated of victory.
The all-shares index was up 1.23 points at 1,007.47.
The commercial-industrial index fell 3.25 to 2,457.24, but
property rose 4.58 to 544.21.
Mining shed 47.55 to 1,525.20, and oil dropped 0.02 to
1.88.
Banking and finance advanced 1.76 to 474.26.
(1 usd = 56.1 pesos)
afxmanila@afxasia.com
|
|
Philippines' San Miguel H1 net profit seen up 30 pct yr-on-yr -
vice chairman
|
MANILA (AFX-ASIA) - San Miguel Corp expects its first half
to June net profit to grow 30 pct from 3.05 bln pesos a year
earlier, the company's vice-chairman and president Ramon Ang
said.
The Philippines' largest food and beverage conglomerate
earlier reported a January-May net profit of 3.29 bln pesos, up
32 pct yr-on-yr, on the back of higher sales and lower costs.
"Compared with last year, first six months (net profit) is
30 pct better this year. In terms of revenue, we are tracking 16
pct better than last year. Across the board, business is OK,
including our soft drink business, which has already recovered,"
Ang said.
As part of its overseas expansion, the company is now
looking at acquiring a 20-hectare property for a beer and liquor
unit in Malaysia.
"We are eyeing Malaysia's Johor for beer and hard liquor,"
Ang said.
He said San Miguel intends to get a share not only of
Malaysia's liquor business, but also that of Singapore given
Johor's proximity to the island state.
"If we are to put up the Malaysian business, that is to
supply both Malaysia and Singapore. Groundbreaking will be
within the next two to three months," Ang said.
San Miguel earlier completed its acquisition of Thai Amarit
Brewery Ltd's assets for 3.9 bln baht. The assets include a
modern and fully-equipped brewery on a 21.75-hectare site at the
Pathum Thani province in central Thailand.
The acquisition will give San Miguel access to the Thai
beer market, now Southeast Asia's largest, the company earlier
said.
(1 usd = 56.15 peso)
afxmanila@afxasia.com
|
|
Philippines likely to keep key interest rate steady for now -
Buenaventura
|
MANILA (AFX-ASIA) - The policy-making Monetary Board is
likely to keep the central bank's overnight interest rates
steady despite a possible 25-basis point hike in key interest
rate in the US and the recently-approved wage hike for workers,
central bank Governor Rafael Buenaventura reiterated.
"We could probably keep interest rates stable for a while,"
he told reporters.
"The US Fed (rate hike) has been factored in," he said.
The central bank's overnight rates have remained unchanged
for about a year now at 6.75 pct for borrowing and 9.00 pct for
lending.
Buenaventura said that despite the inflationary pressures
arising from the latest wage hike, the central bank remains
confident that inflation this year will still be well within the
4-5 pct target of the government.
But he noted that the peso's current level, a little above
56 to the US dollar, still factors in lingering political risks
in the Philippines.
"The peso is paying a 2-3 pesos political risk premium," he
said.
At 11.07 am, the peso averaged 56.154 to the dollar at the
Philippine Dealing System, after closing at 56.095 on Friday. It
fell to a record 56.45 in late March amid political
uncertainties ahead of the May 10 presidential election.
afxmanila@afxasia.com
|
|
Philippines' Globe Telecom engineers freed by kidnappers -
police |
MANILA (AFX-ASIA) - Kidnappers have freed three engineers
of Globe Telecom Inc who were abducted in the southern
Philippines four weeks ago, police said.
Soldiers found the engineers inside a van at a university
campus in the southern city of Marawi late Sunday, said Angelo
Reyes, head of a police task force.
They were taken to a military hospital for treatment.
Filipino engineers Jennifer Barbarona, Scenio Polistico and
Edwindelle Esguerra were abducted near the town of Tubaran on
May 31 as they inspected a site for a planned mobile telephone
signal tower.
Reyes said he did not know if ransom was paid.
The identities of the kidnappers remains unknown, he said.
|
|
Manila shares lower mid-session in thin trade on technical
correction |
MANILA (AFX-ASIA) - Share prices were weaker in light trade
mid-session on a technical correction following last week's
gains, dealers said.
Investors were largely on the sidelines and just waiting
for the second-quarter corporate results to start coming in,
they added.
At 10.45 am, the 30-company composite index was down 11.36
points or 0.72 pct at 1,568.15 on volume of 261.8 mln shares
valued at 86.5 mln pesos. It has so far moved between 1,566.56
and 1,579.51.
In the broader market, losers were beating gainers 25 to
11, with 28 stocks unchanged.
"There are no major news (items) to sustain interest in the
market, with investors having factored in the June 30 inaugural
of President (Gloria) Arroyo," Accord Capital Equities analyst
Lawrence de Leon said, adding that the market also expects an
interest rate hike in the US of up to 25 basis points.
"I guess investors will just sit on the sidelines and wait
for the second-quarter earnings," he said.
Philippine Long Distance Telephone Co (PLDT) was top-traded
on 27,730 shares, but down 10 pesos at 1,130.
Rival Globe Telecom was down 10 at 850.
Bank of the Philippine Islands was up 0.50 at 43.
Dealers added that although it is now all-systems-go for
Arroyo's inauguration, investors will continue to monitor the
moves of the political opposition and supporters of defeated
presidential candidate Fernando Poe Jr. There have been reports
of street protests by supporters of the movie star who has
claimed he was cheated of victory.
(1 usd = 56.1 pesos)
afxmanila@afxasia.com
|
|
Philippines to push for shift to gross income taxation system -
Arroyo |
MANILA (AFX-ASIA) - President Gloria Arroyo said her
administration will push for a shift to gross income taxation
instead of the current practice of basing taxes on net income to
simplify the system and help solve tax evasion.
"I will now push for the change in our system from net
income to gross income, which is what they are doing in Hong
Kong," Arroyo said in a televised interview with Filipino
broadcast journalist Korina Sanchez Sunday.
"I had made this proposal as early as 2001, when I
delivered my very first State of the Nation Address (before
Congress). But there seemed to be no strong support for it," she
added.
Arroyo took over the presidency in Jan 2001 after a mass
uprising led to the ouster of President Joseph Estrada, who is
now detained on corruption charges.
She won a fresh term in the May 10 election and will be
inaugurated at noon on Wednesday.
She hopes that the shift will boost revenues to finance her
economic program for the poor.
Arroyo said she would also push for the shift to a
parliamentary system of government from the current US-style,
presidential, bicameral form.
She said she will also call for change in the Philippine
Constitution.
She did not elaborate.
afxmanila@afxasia.com
|
|
Two held in Philippines over alleged bomb plot ahead of Arroyo
inauguration |
MANILA (AFX-ASIA) - Two suspects have been detained in
connection with a plot to stage bombings here ahead of the
inauguration of President Gloria Arroyo for a new term, the
defense department said.
One suspect was arrested in a Manila suburb on Friday and
the second surrendered to the authorities in Bulacan province
north of the capital the same day, Assistant Defense Secretary
Ric Blancaflor told reporters.
He did not identify the suspects, saying only that they
were alleged accomplices of Roberto Camarista, a retired police
officer who is the subject of a police manhunt in connection
with the alleged bombing plot.
Last week the authorities named former police
superintendent Camarista as the mastermind after police disarmed
three explosive devices in Manila.
They alleged that the bomb plot was part of an attempt to
topple Arroyo, who was proclaimed winner of the disputed May 10
presidential election last week.
Arroyo, who survived a military rebellion last year, is to
take her oath of office in the central city of Cebu on
Wednesday.
|
|
Philippines April manufacturing output down 5.2 pct yr-on-yr by
volume |
MANILA (AFX-ASIA) - The Philippines' manufacturing output
in April fell 5. 2 pct year-on-year by volume and rose 2.8 pct
year-on-year by value, the National Statistics Office (NSO)
said.
As expected, revisions for the March data were made, with
the fall in March output by volume revised to 10.3 pct
year-on-year from 11 pct.
The March output by value was revised to a fall of 5.0 pct
year-on-year from a decline of 6.1 pct.
Manufacturers' sales in April rose 7.6 pct year-on-year by
volume and 20. 2 pct by value.
The fall in March sales by volume was revised to 4.2 pct
year-on-year from 3.3 pct, while sales by value was revised to a
rise of 4.0 pct year-on-year from 4.2 pct.
The manufacturing sector's average capacity utilization
rate stood at 78. 8 pct in April, unchanged from March.
The NSO had initially reported the March capacity
utilization rate at 78. 6 pct.
afxmanila@afxasia.com
|
|
Philippines' iPeople declares 0.15 peso cash div
|
MANILA (AFX-ASIA) - iPeople Inc, a member of Yuchengco
Group of Companies, said it will pay on Aug 4 a cash dividend of
0.15 pesos per share to stockholders on record as of July 9.
The cash dividend totals 85.99 mln pesos, the company told
the stock exchange.
The company said its board has also approved the issuance
of 2.81 mln common shares from the unissued authorized capital
stock to Great Pacific Life Assurance Corp.
iPeople has acquired 70 pct of Pan Pacific Computer Corp
from Great Pacific under a share swap agreement between the two
firms.
The iPeople board has also approved the doubling of its
investment in subsidiary People eServe Corp to 2 mln pesos.
iPeople, formerly Petrofields Corporation, was primarily
engaged in petroleum and mineral exploration, development and
production. It is now an investment holding company, and engaged
mainly in information technology.
(1 usd = 56 pesos)
afxmanila@afxasia.com
|
|
Philippine bankers, PDIC seek to extend period for SPV
incentives |
MANILA (AFX-ASIA) - The Bankers' Association of the
Philippines (BAP) is asking Congress to extend the period during
which banks are given incentives to dispose of bad assets, BAP
President Cesar Virata said.
Philippine Deposit Insurance Corp (PDIC) President Ricardo
Tan said he supports the BAP's request.
The tax incentives provided under the Special Purpose
Vehicle (SPV) law are available only until September.
"I was telling some leaders in Congress that the deadline
may have to be extended to ensure more SPVs to avail themselves
of the perks," Virata said.
Tan noted that banks are just now starting to unload their
bad assets through SPVs.
"I think Congress will do that. The SPV is having a little
bit of momentum now. Obviously, you have to extend this if you
want to be more productive and create better momentum," Tan
said.
The Philippine National Bank, partly owned by the
government, had expressed interest to unload around 15 bln pesos
worth of bad assets into a SPV.
Other banks intending to dispose of bad assets include the
United Coconut Planters Bank, Philippine Bank of Communication,
Land Bank of the Philippines, Rizal Commercial Banking Corp.
Central bank officials, meanwhile, have warned that the
Department of Finance may not be as enthusiastic in extending
the incentives given the pressure on the national government to
raise additional revenue.
(1 usd = 56 pesos)
afxmanila@afxasia.com
|
|