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Tuesday, March 02, 2004
Philippines' PLDT, Jollibee to list additional shares March 3
Forex - Philippine peso ends firmer on technical correction
Philippines' GMA Network seeks to double capital, mulls IPO this year
Philippines' Metro Alliance approves acquisition plan for Bataan Polyethylene
Philippines' Piltel net loss narrows in 2003 on wireless gains
Manila shares close weaker on profit-taking mainly in telecom stocks
Philippine Feb customs collections 8.425 bln pesos vs target 7.045 bln
Philippines' Philex Jan copper/gold/silver output gross value 284.8 mln pesos
Philippine PLDT 1.378 mln shares sold in block transaction - PSE
Philippines' Petron expands coverage of discount on diesel products
Manila shares marginally higher mid-session amid lack of leads
Philippines' PNOC unit, Indonesia's PT Garda in possible coal mining JV
Philippine NSO updates wholesale price index base year to 1998 from 1985
Philippine Feb CPI seen up 3.4 pct year-on-year - Neri
Philippines' San Miguel, Hormel Foods in talks on possible Vietnam JV
STOCK ALERT -Philippines' Metro Pacific gains after returning to 2003 profit
Philippine SEC approves Banco Santander name change to BDO Private Bank
Philippines' Negros Navigation 2003 net profit 84 mln pesos vs 102.7 mln

Philippine SEC approves listing of additional 812,095 PSE shares
Manila shares outlook - Mixed ahead of court's Poe citizenship ruling
Philippine oil firms cut LPG price 1.50 pesos/kg, but fuel prices still up

Monday, March 01, 2004
Philippines' Philcomsat to venture into call center business
Philippines Jan budget deficit 16.12 bln pesos
First Philippine Holdings to list 486,502 shares March 2
Philippine Treasury rejects bids for all 3 T-bill tenors
Philippines' Prime Orion to restructure loans, rehabilitate unit
Philippine trade dept asks exporters to take advantage of EU GSP extension
Manila shares close flat as market awaits Poe ruling, fresh leads
Philippines' Zeus Holdings mulls asset injection to address capital deficiency
Philippines' Metro Pacific 2003 net profit 56.50 mln pesos vs loss 11.90 bln
STOCK ALERT - Meralco, other Lopez-led stocks firmer ahead of 2003 results
Philippine Savings Bank to launch credit cards this year
Manila Jockey Club to list additional 29.99 mln shares March 3 - PSE
Philippine Metro Pacific swings to 2003 profit on non-recurring gain
Manila shares flat early as market awaits Poe citizenship ruling
Philippine Metro Pacific swings to profit in 2003 on non-recurring gains
Philippines awards electricity bourse management contracts to ABB, M-Co
Philippines' MRT group plans 300 mln usd bond offering - report
Manila shares outlook - Mixed to lower as market awaits Poe citizenship ruling
Philippine central bank gets 125 mln usd loan from AIG
Philippines' Purefoods Hormel looks to Vietnam for expansion - report
Norway's Odfjell says reason for tanker explosion unknown
Number of people missing from Philippine ferry fire rises to 186
Philippines' ATN Holdings Q3 net loss 450,524 pesos vs loss 85,855
Philippines' PT&T Q2 to Dec net loss 281.7 mln pesos vs loss 395.55 mln
Philippines' Prime Orion Q2 to Dec net loss 238.6 mln pesos vs loss 146.7 mln
Philippines' Asiatrust Bank Q2 to Dec net profit 10.09 mln pesos vs 5.85 mln
Philippines Roxas Holdings Q2 to Dec net loss 3.6 mln pesos vs profit 73.6 mln
Philippines Jan budget deficit around 16.4-16.5 bln pesos - Amatong
Philippines' Fil-Estate Land Q1 to Dec net profit 9.5 mln pesos vs 2.6 mln
OUTLOOK - Philippine Feb CPI seen rising 3.6-4.2 pct yr-on-yr

 

 


 

 
Philippines' PLDT, Jollibee to list additional shares March 3


     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co and Jollibee Foods Corp are to list 2,659 and 27,699 shares, respectively, tomorrow.
     The shares to be listed are fully paid under the two firms' stock option plans, the Philippine Stock Exchange said.
     PLDT closed down 10.00 pesos at 950.00, while Jollibee ended up 0.25 at 19.00.
     (1 usd = 56.22 pesos)
     cecille.yap@afxasia.com
 

 
Forex - Philippine peso ends firmer on technical correction


     MANILA (AFX-ASIA) - The peso closed slightly firmer on a technical correction and as investors traded with caution ahead of the much-awaited Supreme Court decision on whether opposition presidential candidate Fernando Poe Jr is eligible to run in the May 10 elections.
     The High Court was widely expected to announce its decision today, but failure to complete deliberations prompted the tribunal to delay the ruling to tomorrow afternoon.
     The peso ended at 56.22 versus the US dollar, firmer than yesterday's close of 56.28, after trading within the 56.215-56.29 range on volume of 120. 80 mln usd.
     "We've been saying the 56.30 levels were overdone and a correction back to the 56.15 level was to be expected," a local bank trader said.
     Corporates have found it too expensive to buy US dollars at the 56.30 level, thinning out demand.
     Dealers, however, said the peso may trade with a weaker bias tomorrow and the day after as the market awaits and digests the decision on Poe's disqualification case.
     "We expect volatility to increase and trade to be a little choppy. The decision will have serious repercussions either way. It's going to be bad on both sides," another dealer said.
     Financial markets are worried the disqualification of popular movie star Poe will lead to violent protests by his supporters.
     However, a possible victory by him in the polls also worries investors on doubts about his ability to run the country and manage the economy.
     cecille.yap@afxasia.com
 

 
Philippines' GMA Network seeks to double capital, mulls IPO this year


     MANILA (AFX-ASIA) - GMA Network Inc, the main rival of listed ABS-CBN Broadcasting Corp, said it plans to double its authorized capital to 2 bln pesos as it prepares for its initial public offering, which may finally take place this year.
     But the listing will also depend on market conditions, GMA president, chairman and chief executive officer Felipe Gozon said.
     "We are ready to list. But we are waiting for the market conditions to improve. It could be this year if the stock market improves," said Gozon, who holds a 30 pct stake in the broadcasting giant.
     Gozon and GMA chief operating officer Jimmy Duavit, who holds a 35 pct stake in the company, are to remain in control of the company after the IPO.
     "We would work out a plan wherein we would not lose control (of GMA). We would still own not less than 50 pct plus one." Gozon said.
     The Jimenez family owns the remaining 35 pct stake in GMA.
     The company earlier said there was no urgent need to offer shares to the public since it has been able to generate funds to finance its capital expenditures.
     GMA posted a net profit of over 1 bln pesos in 2003 versus the previous year's 406 mln. Revenues rose by 28 pct to 6.2 bln last year from the year-earlier 4.8 bln due to strong earnings from advertising.
     Gozon expects net profit this year to grow by 50 pct from 2003.
     The company has set aside 350 mln pesos for capital expenditures this year, which is 16 pct higher than last year's 300 mln.
     A portion of this year's capital expenditure budget would be used to finance the launching of GMA's international channel, scheduled for the third quarter of the year.
     The company is already negotiating with potential partners for this venture.
     Initially, GMA's international channel would be launched in North America, targeting Filipino immigrants.
     The company is also preparing to re-launch its Ultra High Frequency TV Channel 27, which closed in 2001 due to losses.
     It also plans to produce at least three movies this year.
     (1 usd = 56.26 pesos)
     afxmanila@afxasia.com
 

 
Philippines' Metro Alliance approves acquisition plan for Bataan Polyethylene


     MANILA (AFX-ASIA) - Metro Alliance Holdings & Equities Corp said its board of directors has authorized the company, through its chairman Renato Magadia, to enter into a Memorandum of Agreement (MOA) to purchase certain interests in the Bataan Polyethylene Project.
     Metro Alliance will enter into the MOA with Tybalt Ltd, BP International Ltd, Petroliam Nasional Berhad and Sumitomo Corp for the planned acquisition, which also covers shares of stock and stockholder advances in the Bataan Polyethylene Corp (BPC).
     Metro Alliance gave no financial details in its letter to the stock exchange.
     But it said the effectivity of the purchase or acquisition will be subject to a satisfactory due diligence and closing targeted for May 31 this year.
     Metro Alliance earlier said it will acquire the debts of BPC to pave the way for the ownership and operation of the petrochemical midstream facility.
     Metro Alliance said it has designated Polymax Worldwide Ltd -- a company incorporated in the British Virgin Islands -- as the acquisition vehicle in the purchase of BPC's debt papers.
     It said it would organize a consortium of local and foreign investors that will eventually operate the plant.
     edelacruz@afxasia.com
 

 
Philippines' Piltel net loss narrows in 2003 on wireless gains


     MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) said it dramatically narrowed its net loss last year through substantial growth in the revenue of its wireless business.
     Piltel posted a net loss of 3.35 bln pesos for the full year to Dec 2003, in line with the company's own projections, compared with the previous year's net loss of 21.83 bln.
     Gross GSM (global system for mobile communications) revenues increased 54 pct year-on-year to 9.03 bln pesos from 5.87 bln, while net GSM revenue rose 78 pct to 3.7 bln pesos from 2.1 bln a year earlier.
     GSM revenues now account for 83 pct of Piltel's net revenue.
     As of end-2003, the total subscriber base of Piltel's GSM brand Talk 'N Text stood at 2.87 mln, up 62 pct from 1.77 mln at the end of the previous year.
     Piltel president and chief executive officer Gregorio Atienza said he is looking forward to the company's continued recovery in 2004.
     Philippine Long Distance Telephone Co (PLDT) has a significant stake in Piltel and it has been widely speculated that it will serve as vehicle for the backdoor-listing of the group's wireless unit, Smart Communications Inc.
     Piltel earlier submitted its recovery plan to the Philippine Stock Exchange, under which it expects to return to profitability this year, with net profit forecast to come in at 402.4 mln pesos.
     Piltel booked additional asset impairment charges of 1.72 bln pesos in 2003, related to write-downs for its analog and code division multiple access (CDMA) systems for mobile services and the company's investment in ACeS Philippines Cellular Satellite Corp.
     
     Its asset impairment charges in 2002 came to 16.79 bln pesos.
     In 2001, Piltel booked extraordinary charges of 16.787 bln pesos, also partly due to write-downs.
     Operating costs, however, fell by 37 pct to 3.94 bln pesos from 6.24 bln in 2002, with an 83 pct decline in depreciation as a result of a write-down at end-2002.
     Piltel said site-related expenses, such as rent, utilities, maintenance and insurance, fell by 76 pct, primarily due to the decommissioning of various AMPS/CDMA cell sites in 2002.
     Marketing expenses rose by 16 pct to 1.73 bln pesos in 2003 from the previous year's 1.49 bln as prepaid phone kit and SIM pack sales almost doubled, partly offset by a lower incentive scheme for dealers which was implemented in Aug 2002.
     Management fees of 795 mln pesos, representing payments made in connection with various outsourcing agreements with Smart and PLDT, covering their management of relevant Piltel operations, increased by 8 pct as the latter's subscriber base widened.
     "Piltel has sustained the momentum it showed earlier in 2003 and has posted a positive operating result. It was also an exceptional year in terms of subscriber growth with over one million net additions," Atienza said.
     He said this growth was supported largely by the introduction in May 2003 of the TNT Load, the ground-breaking "over-the-air" loading mechanism developed by Smart, which brought down the subscriber churn rate as well as costs associated with the production and distribution of prepaid cards.
     Atienza also noted that Piltel has not had to seek financial assistance from PLDT since late 2002, as Piltel's cash flow position has improved.
     (1 usd = 56.26 pesos)
     edelacruz@afxasia.com
 

 
Philippines' Piltel 2003 net loss 3.35 bln pesos vs loss 21.83 bln


     MANILA (AFX-ASIA) - Pilipino Telephone Corp's full year to Dec 2003 results:
      Operating revenue - 4.48 bln pesos vs 2.97 bln
      Operating expenses - 3.94 bln pesos vs 6.24 bln
      Operating income - 539.8 mln pesos vs loss 3.28 bln
      Interest and financing charges - 706.9 mln pesos vs 782.5 mln
      Other expenses - 3.10 bln pesos vs 17.77 bln
      Net loss - 3.35 bln pesos vs loss 21.83 bln
      Loss per share - 2.77 pesos vs LPS 13.66 pesos
     (1 usd = 56.26 pesos)
     cecille.yap@afxasia.com

 
Philippine Treasury may issue CMBs weekly as 2-year T-bond bids rejected


     MANILA (AFX-ASIA) - The Bureau of Treasury (BTr) said it may issue about 10 bln pesos worth of cash management bills on a weekly basis after rejecting all bids at today's auction of two-year treasury bonds.
     National Treasurer Mina Figueroa said the bureau will meet with banks on the possibility of issuing CMBs, which will have a maturity shorter than that of regular T-bill tenors of 91 days, 182 days, and 364 days.
     She said the CMBs may be issued as early as next week.
     Yesterday, the government rejected all tenders at the regular auction of 91-day, 182-day, and 364-day T-bills, as market participants offered rates that were significantly higher than previous ones.
     Tenders for the T-bills totaled 3.809 bln pesos against an offering of 11 bln.
     At today's auction of T-bonds, the offering was as much as 4.5 bln pesos.
     Participating banks want higher rates for government securities amid prevailing political uncertainties in the run-up to the May 10 elections and the peso's weakness against the US dollar.
     (1 usd = 56.26 pesos)
     edelacruz@afxasia.com
 

 
Philippines' Petron to negotiate 150 mln usd loan


     MANILA (AFX-ASIA) - Oil firm Petron Corp said its board of directors has given management the authority to negotiate a 150 mln usd long-term loan.
     No other details about the loan were provided in the company's disclosure to the stock exchange.
     Petron said its board also approved the creation of a direct retailing subsidiary outside the Subic Bay freeport north of metropolitan Manila.
     It will also advance 196 mln pesos for the development of service station sites. It did not elaborate.
     (1 usd = 56.26 pesos)
     cecille.yap@afxasia.com
 

 
Manila shares close weaker on profit-taking mainly in telecom stocks


      MANILA (AFX-ASIA) - Share prices closed weaker on profit-taking mainly in telecom stocks, as investors stayed largely on the sidelines to await fresh leads, in particular the Supreme Court ruling on the disqualification petitions against opposition presidential candidate Fernando Poe Jr, dealers said.
     According to radio and television reports, the Supreme Court may announce today its ruling on Poe's eligibility for the May 10 polls.
     The composite index closed down 7.44 points, or 0.50 pct, at 1,477.02 on volume of 140.19 mln shares valued at 1.6 bln pesos. It traded between 1,476. 96 and 1,491.83.
     Cross sales and a block sale in Philippine Long Distance Telephone (PLDT) worth 1.3 bln pesos boosted turnover.
     In the broader market, losers beat gainers 33 to 21, while 29 stocks were unchanged.
     Meanwhile, three Philippines military officers are being detained for trying to recruit reservists to take part in anti-government rallies ahead of the May 10 presidential election, Agence France Presse reported, citing a military spokesman.
     The unnamed colonel and two lieutenant colonels were arrested last month after they were found trying to recruit reservists for planned protests backing movie star Poe, Lieutenant Colonel Daniel Lucero said.
     They are being detained at the army headquarters of Fort Bonifacio, while possible links either to other military plotters or opposition politicians are being investigated.
     "Investors were quick to cash in on gains and unwilling to take aggressive and long-term positions, given the political uncertainties," Citiseconline.com analyst Mark Alan Canizares said. "There are no leads to set the direction for the market at this point and, as long as the Poe citizenship issue remains unresolved, the market will likely be unable to decide where to go," Westlink Global Equities chairman Rommel Macapagal said.
     Financial markets are worried that the disqualification of Poe will lead to violent protests and even to another spate of military uprisings.
     However, investors are also fretting over Poe's possible victory in the May polls on doubts over his ability to run the country and manage the economy.
     Globe Telecom was top-traded, but down 20.00 pesos at 870.00 on volume of 95,430 shares.
     PLDT was down 10.00 at 950.00 on 22,870 shares.
     Manila Electric B, available to foreign investors, was down 1.00 at 33.00 on 1.1 mln shares, while Meralco A was unchanged at 20.00.
     Meralco parent First Philippine Holdings was down 0.50 at 23.50.
     Meralco and First Philippine Holdings extended gains early in the session ahead of the release of their 2003 results, dealers said.
     The power distributor earlier said extraordinary provisions for contingent liabilities may have sent its 2003 net profit to below its 1-bln peso target. It booked a net loss of 2 bln pesos in 2002.
     Analysts AFX-Asia polled expect Meralco to report a net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales.
     Bank of the Philippine Islands was up 0.50 at 46.00.
     PLDT affiliate Pilipino Telephone Corp fell 0.08 to 1.50 on 11.2 mln shares ahead of the release of its 2003 results.
     Piltel earlier said it expected to book a 2003 net loss of about 3.33 bln pesos, substantially lower than the previous year's 21.8 bln and return to profitability this year, with earnings expected at 402.4 mln pesos.
     The all-shares index was up 0.62 points at 941.21.
     The commercial-industrial index was down 19.07 to 2,293.85.
     Property was up 0.59 at 532.41.
     Mining was down 18.44 at 1,490.32.
     Oil was down 0.02 at 1.25.
     Banking and financial services was up 2.57 at 436.81.
     (1 usd = 56.26 pesos)
     edelacruz@afxasia.com
 

 
 


     MANILA (AFX-ASIA) - Share prices closed weaker on profit-taking mainly in telecom stocks, as investors stayed largely on the sidelines to await fresh leads, in particular the Supreme Court ruling on the disqualification petitions against opposition presidential candidate Fernando Poe Jr, dealers said.
     According to radio and television reports, the Supreme Court may announce today its ruling on Poe's eligibility for the May 10 polls.
     The composite index closed down 7.44 points, or 0.50 pct, at 1,477.02 on volume of 140.19 mln shares valued at 1.6 bln pesos. It traded between 1,476. 96 and 1,491.83.
     Cross sales and a block sale in Philippine Long Distance Telephone (PLDT) worth 1.3 bln pesos boosted turnover.
     In the broader market, losers beat gainers 33 to 21, while 29 stocks were unchanged.
     Meanwhile, three Philippines military officers are being detained for trying to recruit reservists to take part in anti-government rallies ahead of the May 10 presidential election, Agence France Presse reported, citing a military spokesman.
     The unnamed colonel and two lieutenant colonels were arrested last month after they were found trying to recruit reservists for planned protests backing movie star Poe, Lieutenant Colonel Daniel Lucero said.
     They are being detained at the army headquarters of Fort Bonifacio, while possible links either to other military plotters or opposition politicians are being investigated.
     (1 usd = 56.26 pesos)
     edelacruz@afxasia.com
 

 
Philippine Feb customs collections 8.425 bln pesos vs target 7.045 bln


     MANILA (AFX-ASIA) - Customs collections in February reached 8.425 bln pesos, exceeding the target of 7.045 bln, preliminary figures from the Bureau of Customs show.
     January to February collections stood at 17.995 bln pesos, 15.8 pct higher than the target of 15.545 bln.
     (1 usd = 56.261 pesos)
     cecille.yap@afxasia.com
 

 
Philippines' Philex Jan copper/gold/silver output gross value 284.8 mln pesos


     MANILA (AFX-ASIA) - Philex Mining Corp said it produced in January 1.4 mln kilos of copper, 186,192 grams of gold and 213,621 grams of silver with an estimated gross value of 284.8 mln pesos.
     The company had earlier reported output of 309.7 mln pesos in December.
     Shipments of copper concentrate in January were valued at 303.22 mln pesos, compared with December shipments worth 507.39 mln pesos, Philex said in a statement to the stock exchange.
     (1 usd = 56.26 pesos)
     cecille.yap@afxasia.com
 

 
STOCK ALERT - Philippines' Meralco, First Hldgs extend gains ahead of results


     MANILA (AFX-ASIA) - Manila Electric Company (Meralco) and parent First Philippine Holdings were firmer in late morning trade, extending gains ahead of the release of their 2003 results, dealers said.
     Meralco B, available to foreigners, was up 0.50 peso at 34.50 on volume of 461,600 shares, while Meralco A was up 0.25 at 20.25 on 52,400 shares.
     First Philippine Holdings was up 0.25 at 24.25 on 410,200 shares.
     Meralco earlier said extraordinary provisions for contingent liabilities may have pulled its 2003 net profit below its 1-bln peso target.
     However, any net profit is better than the 2-bln peso net loss it booked in 2002.
     Analysts AFX-Asia polled expect Meralco to report a net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales.
     Dealers said investors may also be positioning ahead of the Supreme Court decision on Meralco's suspended 0.12 peso per kilowatthour rate hike.
     (1 usd = 56.26 pesos)
     edelacruz@afxasia.com
 

 
Philippine PLDT 1.378 mln shares sold in block transaction - PSE


     MANILA (AFX-ASIA) - A total of 1.378 mln shares of Philippine Long Distance Telephone Co were sold in a block transaction in mid-trade, according to data from the Philippine Stock Exchange.
     The shares were sold for 950 pesos each, or a total of 1.309 bln pesos.
     UBS Securities Philippines handled the transaction.
     At 10.50 am, PLDT was flat at 960 on 14,380 shares.
     (1 usd = 56.25 pesos)
     cecille.yap@afxasia.com
 

 
Philippines' Petron expands coverage of discount on diesel products


     MANILA (AFX-ASIA) - Petron Corp said it has started to offer a 0.30 pesos per liter discount on diesel for public utility vehicles in northern and southern Luzon, expanding the scheme which began implementation in selected stations in metropolitan Manila late last year.
     "We hope to help in easing the burden of high fuel prices on the economy, " Petron spokeswoman Virginia Ruivivar said.
     The announcement comes a day after public utility vehicles staged a strike to demand a hike in transportation fares.
     Ruivivar added the discount is being implemented in anticipation of the expected softening of crude oil prices in the second quarter.
     A total of 17 service stations in key cities throughout Luzon started offering the discount today.
     Since last September, Petron has been extending discounts to public vehicles in selected stations in metropolitan Manila, selling diesel 2.10 pesos per liter lower for jeepneys and buses.
     Meanwhile, stations that will offer the 30-centavo discount are those in Baguio City, Dagupan City, Tarlac City, Angeles City, Olongapo City, Batangas City and Naga City.
     (1 usd = 56.25 pesos)
     cecille.yap@afxasia.com
 

 
Manila shares marginally higher mid-session amid lack of leads


     MANILA (AFX-ASIA) - Share prices were marginally higher mid-session on low volumes as investors stayed on the sidelines to await fresh leads, particularly the Supreme Court's ruling on the disqualification petitions against opposition presidential candidate Fernando Poe Jr, dealers said.
     The Supreme Court may announce today its decision on Poe's eligibility to stand for the May 10 polls, according to radio and television reports.
     At 10.34 am, the composite index was up 2.64 points, or 0.18 pct, at 1, 487.10 on volume of 26.8 mln shares valued at 104.5 mln pesos. It has traded between 1,484.63 and 1,491.83 so far.
     In the broader market, gainers led losers 12 to eight, while 23 stocks were unchanged.
     "There are no leads to set the market's direction at this point. And, as long as the Poe citizenship issue is not resolved, the market is likely to have any clear indication as to where to go," Westlink Global Equities chairman Rommel Macapagal said.
     "The good news is that we're holding support above the 1,480 level."
     Financial markets are worried that the disqualification of Poe will lead to violent protests and even to another episode of military uprisings.
     However, Poe's possible victory in May also worries investors on doubts over his ability to run the country and manage the economy.
     Globe Telecom was top-traded, but down 10.00 pesos at 880.00.
     Philippine Long Distance Telephone was unchanged at 960.00.
     Manila Electric B, available to foreign investors, was up 0.50 at 34.50, while Meralco A rose 0.25 to 20.25.
     Meralco parent First Philippine Holdings was up 0.25 at 24.25.
     (1 usd = 56.25 pesos)
     edelacruz@afxasia.com
 

 

Philippines' PNOC unit, Indonesia's PT Garda in possible coal mining JV


     MANILA (AFX-ASIA) - PNOC Exploration Corp said it has signed a memorandum of understanding with Indonesia's PT Garda Tujuh Buana Coal Mining Corp for a possible coal-related joint venture business.
     The project will, however, be pursued depending on the results of a due diligence study that both parties are due to conduct, PNOC-EC told the stock exchange.
     PNOC-EC is a unit of state-owned Philippine National Oil Co.
     It gave no further comments.
     edelacruz@afxasia.com
 

 
Philippine NSO updates wholesale price index base year to 1998 from 1985


     MANILA (AFX-ASIA) - The National Statistics Office said it will update the base year for computing the wholesale price index (WPI) to 1998 from 1985 to capture better the "true state" of wholesale trading in the Philippines.
     The WPI measures the average changes in the wholesale prices of commodities from two levels of bulk distribution; the wholesaler-to-retailer and the wholesaler-to-producer. It serves as a basis for price adjustments in business contracts and projects.
     The 1998-based WPI will also cover the Visayas and Mindanao islands, instead of being limited to the main island of Luzon.
     Early this year, the NSO also updated the base year of the consumer price index to 2000 from the previous 1994 to reflect the changes in the consumption patterns of Filipinos.
     The WPI re-basing to year 1998 also involved updating the commodity groups and weighting assigned to each category.
     cecille.yap@afxasia.com
 

 
Philippine Feb CPI seen up 3.4 pct year-on-year - Neri


     MANILA (AFX-ASIA) - The Philippines' consumer price index (CPI) likely rose 3.4 pct year-on-year in February, unchanged from January, using the 1994 price series, Economic Planning Secretary Romulo Neri said.
     The central bank is projecting a CPI rise of 3.4-3.6 pct year-on-year for February, driven by higher oil prices and a weaker peso versus the US dollar.
     Economists polled by AFX-Asia have estimated CPI rose by 3.6-4.2 pct year-on-year in February as oil and food prices surged and the peso weakened against the dollar.
     The peso fell to its weakest-ever level of 56.35 to the dollar on Feb 20 amid political uncertainties ahead of the May 10 elections.
     Headline January CPI was up 4.1 pct year-on-year based on the 2000 price series.
     The National Statistics Office will release the February CPI data on Friday (March 5).
     edelacruz@afxasia.com
 

 
Philippines' San Miguel, Hormel Foods in talks on possible Vietnam JV


     MANILA (AFX-ASIA) - San Miguel Corp said it is in discussions with Hormel USA to set up a joint venture in Vietnam to manufacture processed meat.
     The food and beverage conglomerate, however, said no definitive agreements have yet been reached with Hormel, its joint venture partner in Purefoods Hormel Co Inc.
     San Miguel also gave no other details of the planned venture in Vietnam.
     The group has embarked on a regional expansion exercise involving seven markets, namely China, Thailand, Vietnam, Indonesia, Australia, Malaysia and Taiwan.
     A recent newspaper report said San Miguel and Hormel are talking about a possible tie-up and targeting the Southeast Asian and the Middle Eastern markets.
     Hormel has long had a presence in Vietnam.
     At 9.53 am, San Miguel B, open to foreign investors, was untraded after closing previously at 69 pesos, while San Miguel A was unchanged at 56.50.
     (1 usd = 56.27 pesos)
     edelacruz@afxasia.com
 

 
STOCK ALERT -Philippines' Metro Pacific gains after returning to 2003 profit


     MANILA (AFX-ASIA) - Metro Pacific Corp was firmer after reporting yesterday an unaudited net profit of 56.5 mln pesos in 2003, a significant turnaround from the previous year's net loss of 11.9 bln, dealers said.
     After closing flat yesterday, despite releasing better results, Metro Pacific was up 0.02 peso, or 7.41 pct, at 0.29 in early trade on volume of 1. 95 mln shares.
     The company, a unit of Hong Kong's First Pacific Co Ltd and has interests in property and shipping, attributed its return to profit to other income of 542 mln pesos, mostly from non-recurring gains related to the completion of various debt-reduction and restructuring exercises.
     Metro Pacific said it has repaid, or is in the process of restructuring, outstanding loans of 12.1 bln pesos in total as of end-2003.
     The outstanding loans represent approximately 94 pct of the company's total debt of 12.9 bln pesos as at end-Dec 2001.
     (1 usd = 56.27 pesos)
     edelacruz@afxasia.com

 
Philippine SEC approves Banco Santander name change to BDO Private Bank


     MANILA (AFX-ASIA) - The Securities and Exchange Commission has approved Banco Santander Philippines Inc's application to change its name to BDO Private Bank Inc.
     BDO Private Bank is a wholly owned subsidiary of Banco de Oro Universal Bank.
     The corporate watchdog also approved Santander Securities Philippines Inc (SISPI) name change to BDO Securities Corp, which is a wholly owned brokerage unit of BDO Capital & Investment Corp.
     Banco de Oro acquired 100 pct of Banco Santander last year for 2.56 bln pesos.
     (1 usd = 56.265 pesos)
     cecille.yap@afxasia.com
 

 
Philippines' Negros Navigation 2003 net profit 84 mln pesos vs 102.7 mln


     MANILA (AFX-ASIA) - Negros Navigation Company Inc full year to Dec 2003 results:
      Revenue - 2.24 bln pesos vs 2.36 bln
      Opg cost and expenses - 1.96 bln pesos vs 2.009 bln
      Net profit - 84 mln pesos vs 102.7 mln
     Negros Navigation is the shipping unit of Metro Pacific Corp, which is the local unit of Hong Kong-listed First Pacific Co Ltd.
     (1 usd = 56.28 pesos)
     edelacruz@afxasia.com
 

 
Philippine SEC approves listing of additional 812,095 PSE shares


     MANILA (AFX-ASIA) - The Securities and Exchange Commission (SEC) said an additional 812,095 common shares of the Philippine Stock Exchange (PSE) have been approved for listing on the PSE board.
     The PSE paid yesterday a listing fee of 97,045.35 pesos for the shares, which have a placement price of 119.50 pesos each and are now deemed listed, said SEC director Jose Aquino.
     PSE closed yesterday at 155 pesos.
     (1 usd = 56.28 pesos)
     edelacruz@afxasia.com
 

 
Manila shares outlook - Mixed ahead of court's Poe citizenship ruling


     MANILA (AFX-ASIA) - Share prices are expected to open mixed as the market awaits fresh leads, particularly the Supreme Court's ruling on the eligibility of opposition candidate Fernando Poe Jr to contest the May 10 presidential race, dealers said.
     There have been reports that the Supreme Court may announce its decision as early as today.
     Yesterday, the composite index closed up 1.28 points at 1,484.46.
     "We expect the market to remain in a consolidation mode even after the Supreme Court announces its ruling. Investors are likely to want to gauge the public's reaction to the ruling before committing fresh funds to the market," BPI Securities said in its daily note.
     The market's consolidation range is between 1,430 and 1,500 points, it said.
     Financial markets are worried the disqualification of Poe will lead to violent protests and even to another episode of military uprisings.
     However, his possible victory in the May 10 polls also worries investors on doubts over his ability to run the country and manage the economy.
     edelacruz@afxasia.com
 

 
Philippine oil firms cut LPG price 1.50 pesos/kg, but fuel prices still up


     MANILA (AFX-ASIA) - Local oil firms, led by Petron Corp, have reduced the prices of their liquefied petroleum gas (LPG) brands by 1.50 pesos per kilogram effective today.
     However, Caltex Philippines Inc said that prices of finished fuel products rose further up to the end of February after temporarily easing earlier in the month.
     This may lead to further increases in gasoline prices, it said.
     The oil firms said the price rollback for LPG was made possible by lower spot market prices.
     "International prices of LPG have softened in the past two weeks. We are reflecting this downtrend in our local LPG prices, despite the continuous increase in regional finished product prices, particularly gasoline, in order that the public may benefit from it right away," Caltex said in a statement.
     However, it noted that, after OPEC's decision to cut production was announced on Feb 10, international gasoline prices increased about 6.50 usd per barrel from a low of 37.00 usd per barrel before the announcement to about 43.50 last week.
     "If this uptrend continues, and depending on market conditions, we may have to review price levels of our gasoline products in the near future," Caltex said.
     (1 usd = 56.28 pesos)
     edelacruz@afxasia.com
 

 
Philippines' Philcomsat to venture into call center business


     MANILA (AFX-ASIA) - Philcomsat Holdings Corp's board of directors approved an investment of not more than 80 mln pesos in a call center project, to be undertaken in association with SM eVentures Inc and Netwisers Info Technologies Pvt Ltd, it said in a disclosure to the stock exchange.
     Philcomsat will set up a wholly-owned subsidiary to undertake the project.
     It gave no other details in the disclosure.
     (1 usd = 56.30 pesos)
     edelacruz@afxasia.com
 

 
Philippines Jan budget deficit 16.12 bln pesos


     MANILA (AFX-ASIA) - The government incurred a budget deficit of 16.12 bln pesos in January on revenues of 53.13 bln pesos versus expenditures of 69.25 bln, the Department of Finance (DoF) said.
     The government did not set any deficit ceiling for the month, but aims to contain this year's deficit at 197.8 bln pesos, or 4.2 pct of GDP, lower than last year's actual deficit of 199.9 bln.
     It also has yet to announce the quarterly breakdown of this year's fiscal targets in light of the re-enactment of the 2003 national budget.
     In a statement, the DoF said revenues grew 4.7 pct in January as collections of the Bureau of Internal Revenue rose 6.9 pct year-on-year to 36. 54 bln.
     Customs collections amounted to 9.58 bln pesos compared with 9.62 bln a year ago.
     Government spending, however, exceeded the year-ago level by 4.56 bln pesos, largely due to higher net lending to government-owned and controlled corporations and higher interest payments.
     But the DOF said spending for regular government operations was kept "within reasonable levels" under the re-enacted 2003 budget scenario.
     "We will stick to our fiscal deficit target of 4.2 pct of GDP or approximately 197.8 bln pesos for 2004. This is based on our deficit reduction program over the medium-term in order to achieve fiscal consolidation by 2009," Finance Secretary Juanita Amatong said in the statement.
     Some are concerned the government will spend more than what it has programmed this year to win votes for the administration led by President Gloria Arroyo, possibly resulting in the budget deficit widening.
     But Arroyo and her economic managers have repeatedly given assurances the government remains committed to fiscal discipline.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com
 

 
First Philippine Holdings to list 486,502 shares March 2


     MANILA (AFX-ASIA) - First Philippine Holdings will list on March 2 a total of 486,502 additional common shares, arising from the exercises of employee and executive stock options.
     The listing will raise the number of common shares listed under the two plans to 9.5 mln.
     First Holdings closed up 0.50 pesos at 24.00.
     (1 usd = 56.30 pesos)
     cecille.yap@afxasia.com
 

 
Philippine Treasury rejects bids for all 3 T-bill tenors


     MANILA (AFX-ASIA) - The Bureau of Treasury rejected all tenders at today's regular auction of 91-day, 182-day, and 364-day T-bills, as market participants offered rates significantly higher than previous ones.
     All three tenors were undersubscribed.
     Bids for 91-day T-bills ranged from 6.72 pct to 8.25 pct, compared with the previous average rate of 6.435 pct. Tenders totalled 1.355 bln pesos against an offering of 3.0 bln.
     Bids for 182-day bills ranged from 8.00 pct to 9.25 pct versus the previous average rate of 7.834 pct. Tenders totalled 1.247 bln pesos against an offering of 3.5 bln.
     Bids of 364-day bills ranged from 9.25 pct to 10.375 pct against the previous average rate of 8.384 pct. Tenders reached 1.207 bln pesos versus an offering of 4.5 bln.
     National Treasurer Mina Figueroa said the government is still not allowing interest rates to be affected by continued speculation against the peso.
     At the Philippine Dealing System, the peso averaged 56.293 to the US dollar at noon, a few centavos away from its record low 56.350, which was first hit on Feb 20 amid prevailing political uncertainties in the run-up to the May 10 presidential polls.
     Figueroa said investors seem to want to invest their funds in short-term instruments, and the government may consider "other options" to satisfy the needs of the market "wary of (political) scenarios."
     One of these options is the issuance of cash management bills, which have a tenor of less than 91 days.
     The Bureau of Treasury will offer 4.5 bln pesos worth of two-year T-bonds at tomorrow's auction.
     edelacruz@afxasia.com
 

 
Philippines' Prime Orion to restructure loans, rehabilitate unit


     MANILA (AFX-ASIA) - Holding firm Prime Orion Philippines Inc said it plans to restructure 1-bln pesos in outstanding bank loans and rehabilitate unit Lepanto Ceramics Inc to turn the company's equity positive and avoid having to de-list from the stock exchange.
     Prime Orion said Lepanto Ceramics' rehabilitation involves restructuring 2.5-bln pesos in existing loans with creditors and capital infusion from a strategic investor.
     The company is also holding negotiations for the restructuring of a 1-bln peso loan, which will involve sale of certain assets to settle the existing bank obligation.
     Prime Orion is a holding firm with interests in real estate and property development, as well manufacturing and distribution of ceramic tiles and construction-related materials, financial services, integrated forest/logging/paper operations, hotel and infrastructure development.
     (1 usd = 56.30 pesos)
     cecille.yap@afxasia.com
 

 
Philippine trade dept asks exporters to take advantage of EU GSP extension


     MANILA (AFX-ASIA) - The Department of Trade and Industry has urged domestic exporters to "take advantage" of the European Union's decision to extend the Generalized System of Preferences.
     The EU GSP, which offers lower tariffs or completely duty-free access to products from about 180 developing countries and territories, was scheduled to end its 10-year cycle in 2004, but has been extended to Dec 2005.
     Trade and Industry undersecretary Thomas Aquino said the extension is an opportunity for local manufacturers "to increase their export earnings and, at the same time, promote the Philippine industrialization and diversification of markets."
     "Certainly, we welcome this move by the EU Commission to open further the EU market and help developing countries, like the Philippines, to gain from the world trading system," Aquino said.
     Aquino, however, said the Philippines has yet to maximize the benefits in tariff reductions since the avalability rate of the country's exporters to the EU GSP amounted to only 43 pct in 2002.
     The Philippines exported 7.324 bln euros worth of products to the EU market in 2002, 1.394 bln euros of which were eligible under the GSP. However, Philippine exporters made use of only 599.93 mln euros worth.
     As a result, the country lost about 794.07 mln euros in foregone business opportunities instead of benefiting from the lower tariff environment.
     "Two possible reasons cited by most exporters for the low rate are the heavy documentary requirements and the lack of awareness among exporters," Aquino said.
     (1 usd = 56.29 pesos)
     cecille.yap@afxasia.com
 

 
Manila shares close flat as market awaits Poe ruling, fresh leads


     MANILA (AFX-ASIA) - Share prices closed flat in sluggish trade, with the market consolidating and awaiting fresh leads, such as the Supreme Court's ruling on the eligibility of opposition presidential candidate Fernando Poe Jr to stand for the May 10 polls, dealers said.
     The composite index closed up 1.28 points or 0.09 pct at 1,484.46 on volume of 74.1 mln shares valued at 603.7 mln pesos. It traded between 1,481. 83 and 1,486.47.
     In the broader market, gainers slightly edged out losers 23 to 21, while 25 stocks were unchanged.
     The Supreme Court may soon announce its ruling on petitions seeking Poe's disqualification on citizenship grounds.
     Investors fear that the disqualification of Poe, the son of a Filipino father and an American mother, will trigger mass protests by his supporters. It may also lead to another act of military adventurism, according to recent reports.
     "There's hardly any news to spur interest in the market. The uncertainty before the elections is also keeping investors on the sidelines," Unicapital Securities research head Elena Ponceca said.
     "But I think what's really keeping investors cautious at this moment is the Supreme Court decision on his citizenship. We still have no idea exactly when the decision will be announced."
     Philippine Long Distance Telephone was top-traded and down 10 pesos at 960 on volume of 377,890 shares, following recent gains. Its New York-listed American Depositary Receipts (ADRs) shed 0.17 usd to 17.44 on Friday, but were still ahead of the local share price.
     Meralco B, available to foreign investors, was up 2.00 pesos at 34.00 and Meralco A up 0.50 at 20.00, ahead of the release of its 2003 results.
     Meralco parent First Philippines Holdings gained 0.50 to 24.00, while First Philippines Holdings parent Benpres Holdings was up 0.01 at 0.60.
     Meralco officials earlier said the company's 2003 net profit may have fallen below the company's 1.0 bln pesos target due to extraordinary provisions for contingent liabilities.
     It will, nevertheless, be better than the 2 bln pesos net loss posted in 2002.
     Analysts polled by AFX-Asia expect Meralco to report net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales.
     "The worst appears to be over for the company," Citiseconline.com analyst Mark Alan Canizares said.
     Dealers said Meralco has been slowly weathering the impact of having to refund 30 bln pesos to customers who had been overcharged.
     Metro Pacific, a unit of Hong Kong-listed First Pacific Co Ltd, was unchanged at 0.27 after announcing net profit of 56.5 mln pesos in 2003. It was a significant turnaround from a net loss of 11.9 bln pesos in 2002, made possible by non-recurring gains related to the completion of various debt reduction and restructuring exercises.
     PLDT affiliate Pilipino Telephone extended gains and was up 0.02 at 1.58 amid speculation that it will be merged with PLDT's wireless unit Smart Communications, which is required to offer its shares to the public not later than August this year.
     Globe Telecom was up 5.00 at 890.
     Ayala Corp was up 0.20 at 6.10.
     Metrobank was up 0.50 at 25.50.
     The all-shares index was down 0.99 points at 940.59.
     The commercial-industrial index fell 0.76 to 2,312.92.
     Property was up 1.22 at 531.82.
     Mining was down 17.37 at 1,508.76.
     Oil was unchanged at 1.27.
     Banking and financial services were up 1.27 at 434.24.
     (1 usd = 56.30 pesos)
     edelacruz@afxasia.com
 

 
Philippines' Zeus Holdings mulls asset injection to address capital deficiency


     MANILA (AFX-ASIA) - Zeus Holdings Inc is considering injecting 6.0 mln pesos worth of real estate assets to resolve its capital deficiency and avoid delisting from the Philippine Stock Exchange.
     This would wipe out the existing capital deficit of 0.92 mln pesos and bring its capital reserve into positive territory, Zeus Holdings president Yuen Po Seng and treasurer Ronald Sugapong said in a letter to the exchange.
     Management expects to complete the proposed asset injection in one year, they added.
     The company is also considering shifting its focus from an investment holding firm into a real estate company, and is looking at several properties and landholdings for potential business endeavors.
     It believes the shift to real estate development is "the most suitable strategy to pursue at this time and will be most beneficial to the company in the long run."
     Zeus said it also believes the shift is timely since it expects an imminent recovery in the property sector after having been in the doldrums for the past several years.
     (1 usd = 56.30 pesos)
     edelacruz@afxasia.com

 
Philippines' Metro Pacific 2003 net profit 56.50 mln pesos vs loss 11.90 bln


     MANILA (AFX-ASIA) - Metro Pacific Corp's unaudited full year to Dec 2003 results:
      Revenue - 3.73 bln pesos vs 5.88 bln
      Opg profit - 94.60 mln pesos vs 363.58 mln
      Opg expenses - 613.39 mln pesos vs 1.10 bln
      Net profit - 56.50 mln pesos vs loss 11.90 bln
      Earnings per share - 0.30 pesos vs loss per share 63.85 pesos
     (1 usd = 56.30 pesos)
     edelacruz@afxasia.com

 
STOCK ALERT - Meralco, other Lopez-led stocks firmer ahead of 2003 results


     MANILA (AFX-ASIA) - Manila Electric Co and other Lopez-related stocks were firmer mid-morning as investors took positions ahead of the companies' 2003 results, due out in the next couple of weeks, dealers said.
     Meralco B, available to foreigners, was up 2.00 pesos, or 6.25 pct, at 34. 00 on 736,000 shares, while Meralco A was up 0.50 at 20 on 69,800 shares.
     Meralco parent First Holdings gained 0.75 to 24.25 on 492,200 share, while First Holding parent Benpres was up 0.01 at 0.60 on 10.23 mln shares.
     Meralco officials earlier said its 2003 net profit may have fallen below the company's 1-bln peso target due to extraordinary provisions for contingent liabilities.
     It will, nevertheless, be better than the 2-bln peso net loss posted in 2002.
     Analysts expect Meralco to report a net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales.
     "The worst appears to be over for the company," Citiseconline.com analyst Mark Alan Canizares said.
     Dealers said Meralco has been slowly weathering the impact of a 30-bln peso refund of overcharges the Supreme Court mandated late last year.
     (1 usd = 56.30 pesos)
     cecille.yap@afxasia.com

 
Philippine Savings Bank to launch credit cards this year


     MANILA (AFX-ASIA) - Philippine Savings Bank said its board of directors has approved the launch of PSBank credit cards this year.
     No other details were provided in its disclosure to the stock exchange.
     At 10.46 am, PSBank was untraded after its previous close of 27.00 pesos per share.
     (1 usd = 56.291 pesos)
     cecille.yap@afxasia.com

 
Manila Jockey Club to list additional 29.99 mln shares March 3 - PSE


     MANILA (AFX-ASIA) - Manila Jockey Club Inc will list on Wednesday 29.99 mln additional common shares, arising from its 20 pct stock dividend declaration, a Philippine Stock Exchange circular said.
     The horse racing track operator's dividend is payable to stockholders on record as of Feb 6.
     At 10.41 am, Manila Jockey was not traded. It closed at 9.00 pesos previously.
     (1 usd = 56.30 pesos)
     edelacruz@afxasia.com

 
Philippine Metro Pacific swings to 2003 profit on non-recurring gain


     MANILA (AFX-ASIA) - Metro Pacific Corp has reported an unaudited 2003 net profit of 56.5 mln pesos, a significant turnaround from the 11.9 bln net loss in 2002.
     The company, a unit of Hong Kong's First Pacific Co Ltd, attributed its return to profit to other income of 542 mln pesos, mostly from non-recurring gains related to the completion of various debt reduction and restructuring exercises.
     Metro Pacific said it has repaid, or is in the process of restructuring, a total of 12.1 bln pesos worth of outstanding loans as at end-2003.
     The outstanding loans represent approximately 94 pct of the company's total debt of 12.9 bln pesos as at end-Dec 2001.
     Metro Pacific posted a consolidated net revenue of 3.7 bln pesos in 2003, compared with 5.9 bln the previous year, reflecting the de-consolidation of former unit Bonifacio Land Corp from the group's accounts.
     Operating expenses fell 44.6 pct to 613.4 mln pesos in 2003 from 1.1 bln in 2002, also due to the de-consolidation.
     Metro Pacific's 2002 results included a non-cash provision of 8.7 bln pesos for expected losses from the sale of shares in Bonifacio Land Corp. A further non-cash provision of 1.4 bln pesos was also made in 2002 against the carrying values of various property assets, given the then-depressed property market.
     The company sold the controlling stake in Bonifacio Land to a group comprising Ayala Land Inc and Evergreen Holdings, which assumed Metro Pacific's 90 mln usd debt to a firm named Larouge BV.
     In exchange for settling the debt, the joint venture took over Metro Pacific's 50.4 pct stake in Bonifacio Land, which controls the Global City property development in the former military camp of Fort Bonifacio.
     With the divestment and the subsequent sale of additional Bonifacio Land shares, Metro Pacific's stake in the property firm was reduced to approximately 14.7 pct.
     Bonifacio Land was de-consolidated from the group accounts effective Jan 1, 2003.
     "2003 was a transforming year for Metro Pacific. We proved we could meet the aggressive debt reduction targets we set in late 2001. We may be smaller now, but better focused, and still have a stable of high quality real estate assets, such as the urban development property in the Bonifacio Global City and in resort areas south of Metro Manila," Metro Pacific president and chief executive officer Jose Ma Lim said.
     Meanwhile, unit Landco Pacific Corp reported a 2003 net profit of 57.8 mln pesos, up from 43.6 mln in 2002 on revenue of 686.6 mln, compared with 641.6 mln previously.
     Landco's operating expenses increased 6.8 pct year-on-year to 168.8 mln pesos due to the expansion of its Punta Fuego and Leisure Farms residential resort projects. Its Terrazas de Punta Fuego project sold 87 pct of the total units available.
     Landco plans to expand further both the Punta Fuego and Leisure Farm brands, increase development of its provincial shopping centers and accelerate strategic land-banking in anticipation of a property market recovery.
     Metro Pacific's Pacific Plaza Towers, meanwhile, reported a higher net loss of 87.3 mln pesos in 2003, compared to 44.0 mln a year earlier, despite a higher revenue of 668.2 mln pesos. It did not provide an explanation for the lower profit, but said the sales outlook for this year is cautiously optimistic as interest in luxury condominium units has risen in recent months.
     The group's shipping unit, Negros Navigation Co, posted a 2003 net profit of 84 mln pesos, down 18.2 pct from 102.7 mln in 2002, due to higher operating expenses and lower revenue from its passage and freight business.
     "Nenaco enters 2004 engaged in discussions with a number of parties for possible equity investments and strategic business partnerships," Metro Pacific said in a statement.
     The shipping firm earlier said it was in talks with at least two groups interested in buying as much as 45 pct of the company.
     Nenaco is looking to raise 600 mln pesos in fresh capital from the planned ownership sale.
     Metro Pacific owns 97.4 pct of Nenaco.
     As of 10.15 am, Metro Pacific was unchanged at 0.27 peso on volume of 300, 000 shares.
     (1 usd = 56.291 pesos)
     cecille.yap@afxasia.com

 
Manila shares flat early as market awaits Poe citizenship ruling


     MANILA (AFX-ASIA) - Share prices were flat in early trade as the market awaited fresh leads, such as the Supreme Court's ruling on whether opposition candidate Fernando Poe Jr is a "natural-born Filipino citizen" and, as such, qualified to stand for the May 10 presidential polls, dealers said.
     At 10.10 am, the composite index was down 0.07 points at 1,483.11 on thin volume of 16.8 mln shares, valued at 73.5 mln pesos. It has so far traded in a range of between 1,481.83 and 1,484.07 points.
     In the broader market, losers led gainers eight to six, while 23 stocks were unchanged.
     "Investors are awaiting the Supreme Court's ruling on the disqualification petitions against FPJ (Poe's initials)," BPI Securities said in its daily note.
     It is feared that Poe's disqualification will trigger mass protests by his supporters and also lead to more military adventurism, according to recent reports.
     (1 usd = 56.30 pesos)
     edelacruz@afxasia.com

 
Philippine Metro Pacific swings to profit in 2003 on non-recurring gains


     MANILA (AFX-ASIA) - Metro Pacific Corp has reported an unaudited net profit of 56.5 mln pesos in 2003, posting a significant turnaround from an 11. 9 bln net loss in 2002.
     The company, a unit of Hong Kong's First Pacific Co, attributed its profitability to other income of 542 mln pesos, mostly derived from non-recurring gains relating to the completion of various debt reduction and restructuring exercises.
     Metro Pacific said it has repaid, or is the process of restructuring, a total of 12.1 bln pesos worth of outstanding loans as of end-2003.
     The outstanding loans represent approximately 94 pct of the company's total indebtedness of 12.9 bln pesos as of end-Dec 2001.
     Metro Pacific posted consolidated net revenue of 3.7 bln pesos in 2003, compared with 5.9 bln the previous year, reflecting the deconsolidation of former unit Bonifacio Land Corp from the group's accounts.
     Operating expenses were down 44.6 pct to 613.4 mln pesos in 2003 compared with 1.1 bln in 2002, also due to deconsolidation.
     Net non-recurring gains of 541.9 mln pesos were recorded in 2003, realized from various debt reduction and restructuring exercises.
     (1 usd = 56.315 pesos)
     cecille.yap@afxasia.com

 
Philippines awards electricity bourse management contracts to ABB, M-Co


     MANILA (AFX-ASIA) - The National Transmission Corp's (Transco) board has approved the awarding of a 8.47 mln usd market management contract for the Philippines' Wholesale Electricity Spot Market (WESM) to ABB Inc of Sweden, Energy Secretary Vincent Perez said.
     The Transco board also commissioned M-Co of New Zealand to be the market operator at a cost of 1 mln usd.
     The Japan Bank for International Cooperation (JBIC) has extended financing assistance for the project, he said.
     The electricity bourse is expected to open later this year, he said.
     "We are very proud that we were able to contract these companies at a much lower rate, compared to Singapore, which spent about 100 mln usd to set up the system. It's a major savings for the country. This will mean lower market fees per transaction," Perez said.
     The contracts will be signed on March 17.
     The establishment of the WESM will allow consumers to choose suppliers of electricity and, in the process, bring down power costs, improve efficiency in services and enhance transparency in generation charges, Perez said.
     edelacruz@afxasia.com

 
Philippines' MRT group plans 300 mln usd bond offering - report


     MANILA (AFX-ASIA) - The Metro Rail Transit (MRT) consortium is considering raising at least 300 mln usd usd through a secondary public offering of bonds, the Philippine Daily Inquirer reported, citing Fil-Estate Corp president Robert John Sobrepena.
     Fil-Estate is a member of the consortium.
     Proceeds from the offering will go to the original bondholders, who are consortium members, including Anglo Philippine Holdings Corp.
     Sobrepena said the MRT group hopes to get an upgrade on the bond's credit rating from Standard & Poor's affiliate Philippine Ratings Services Corp (PhilRatings), as it plans to list them on the Luxembourg Stock Exchange.
     PhilRatings has assigned a PRS-Aa rating to the bond issue, but Sobrepena said the consortium is seeking an upgrade to the highest possible rating of PRS-Aaa.
     edelacruz@afxasia.com

 
Manila shares outlook - Mixed to lower as market awaits Poe citizenship ruling


     MANILA (AFX-ASIA) - Share prices are expected to open mixed to lower with the market expected to remain in consolidation mode on prevailing pre-election political uncertainties and a lack of fresh leads, dealers said.
     The composite index closed on Friday down 2.79 points, or 0.19 pct, at 1, 483.18.
     Dealers said the market is focused on the pending ruling of the Supreme Court on the citizenship issue involving opposition presidential candidate Fernando Poe Jr, who is in a neck-and-neck fight with incumbent Gloria Arroyo in the May 10 polls.
     "The worries of possible mass protest (by Poe's supporters) in the event of the Supreme Court ruling being unfavorable has spooked investors," said AB Capital Securities research director Jose Vistan Jr.
     The double-digit gains in 2003 are also keeping the market from going up further, he added.
     "We have not seen a significant correction since and a lot of traders think we're due for one," he said.
     The market, however, should continue to see support from the positive corporate earnings outlook for this year, particularly in the telecom sector.
     Still, Vistan said investors may opt to lock in gains in the absence of any significant news to serve as a further catalyst for an upside.
     The market is seen consolidating at a range of 1,430 to 1,500 points.
     Jonas Ravelas, market strategist at Banco de Oro Universal Bank, said prices seem to be losing momentum and that "the bulls may be in trouble."
     "A break below the 1,460 (this week) will confirm further tests towards the 1,400 level. Only a sustained move above the (resistance level of) 1,500 will negate the near-term bearish bias," he said.
     edelacruz@afxasia.com

 
Philippine central bank gets 125 mln usd loan from AIG


     MANILA (AFX-ASIA) - The central bank has sealed a 125 mln usd gold-backed loan from AIG International Inc, the proceeds of which will be used to boost the country's US dollar reserves, said the regulator's governor, Rafael Buenaventura.
     As of end-January, the country's gross international reserves stood at 16. 08 bln usd, still above the 14-15 bln level the central bank is hoping to maintain for 2004.
     The one-year loan was extended at a "cheap" interest rate, central bank officials said, without disclosing the exact figure.
     The dollar inflow should also boost the country's balance-of-payments position, which a deficit of 595 mln usd in January.
     edelacruz@afxasia.com

 
Philippines' Purefoods Hormel looks to Vietnam for expansion - report


     MANILA (AFX-ASIA) - Purefoods Hormel Company Inc, the processed meat joint venture between San Miguel Corp and Hormel Foods Corp of the US, is looking at expanding its operations to Vietnam, Manila Standard reported, citing Hormel Foods International president Richard Bross.
     San Miguel has embarked on a regional expansion exercise involving seven markets, namely China, Thailand, Vietnam, Indonesia, Australia, Malaysia and Taiwan.
     The paper quoted Bross as saying that San Miguel and Hormel are "talking about a possible tie-up" and are targeting the Southeast Asian and the Middle Eastern markets.
     Purefoods Homel president Francisco Alejo III added the company is "looking at the possibility (of investing in Vietnam) and we are talking to our partner Hormel for operations there. Hormel has been in Vietnam for quite a number of years already."
     edelacruz@afxasia.com

 
Norway's Odfjell says reason for tanker explosion unknown


     OSLO (AFX) - Odfjell ASA said the cause of the explosion and fire that sank the Singapore-flagged Bow Mariner off Virginia yesterday is unknown.
     The Singapore government has asked the US Coast Guard to carry out an investigation on their behalf. Odfjell as owner and Ceres Hellenic Shipping Enterprises as managers have representatives on the scene.
     Bow Mariner was subject to periodical routine inspections in North America last year, Odfjell said. No deficiencies where found during an inspection in Vancouver. In the last inspection in Philadelphia in October, five insignificant deficiencies were noted. These were corrected immediately and the ship sailed without delay.
     Classification society Det Norske Veritas has done periodical routine inspections, too. Class records are clean without any conditions of class issued, Odfjell added.
     The vessel had a crew of 27 of whom 24 were Filipino and three Greek. Nine crew members have been picked up but three were dead, and 18 are still missing. Five of the rescued crew members are reportedly in good condition, while the condition of the sixth is stable and improving, Odfjell said.

 
Number of people missing from Philippine ferry fire rises to 186


     MANILA (AFX-ASIA) - The number of people missing after a blaze aboard a ferry last week has risen to 186, with only one death confirmed, the operator of the vessel said.
     The adjustment was made after it was verified that the Superferry 14 had been carrying more people than initially reported when it caught fire off Manila before dawn Friday, Aboitiz Transport spokeswoman Gina Virtusio said.
     The boat had 899 passengers and crew onboard, instead of the 861 passengers and crew reported earlier, she said.
     Of this number, 712 had been confirmed as rescued with only one dead, leaving 186 still unaccounted for.
     The coast guard had earlier said 165 were still missing but later withdrew the number saying it had to be confirmed. Virtusio said her company and the coast guard were meeting to reconcile all figures and confirm all reports of people rescued.
     Virtusio and the coast guard said there had been no confirmed reports of any survivors since Saturday.
     Rescuers were only able to board the vessel on Sunday to look for victims as the smoldering wreck had been too hot to enter earlier.

 
Philippines' ATN Holdings Q3 net loss 450,524 pesos vs loss 85,855


     MANILA (AFX-ASIA) - ATN Holdings Inc's third quarter to Dec 31 results:
      Revenues - 2.37 mln pesos vs 1.32 mln
      Expenses - 2.82 mln pesos vs 1.4 mln
      Net loss - 450,524 pesos vs 85,855
     Nine months to Dec 31 results:
      Revenues - 7.18 mln pesos vs 3.54 mln
      Expenses - 7.05 mln pesos vs 3.47 mln
      Net profit - 131,03 pesos vs 69,985
      Earnings per share - 0.00007 peso vs 0.00003
     
     ATN Holdings has interests in property, financial services and health care.
     (1 usd = 56.335 pesos)
     edelacruz@afxasia.com
 

 
Philippines' PT&T Q2 to Dec net loss 281.7 mln pesos vs loss 395.55 mln


     MANILA (AFX-ASIA) - Philippine Telegraph and Telephone Corp's second quarter to Dec 31 results:
      Operating revenues - 157.41 mln pesos vs 175.97 mln
      Operating losses - 184.02 mln pesos vs 207.4 mln
      Other charges - 97.67 mln pesos vs 188.14 mln
      Net loss - 281.7 mln pesos vs loss 395.55 mln
      Loss per share - 0.23 peso vs loss 0.32
     PT&T is a full service domestic telecommunications service provider.
     (1 usd = 56.35 pesos)
     cecille.yap@afxasia.com
 

 
Philippines' Prime Orion Q2 to Dec net loss 238.6 mln pesos vs loss 146.7 mln


     MANILA (AFX-ASIA) - Prime Orion Philippines Inc's second quarter to Dec 31 results:
      Revenues - 375.4 mln pesos vs 353.3 mln
      Expenses - 598.2 mln pesos vs 491.4 mln
      Net loss - 238.6 mln pesos vs 146.6 mln
      Loss per share - 0.10 peso vs 0.06
     Prime Orion is a holding firm with interests in real estate and property development, manufacturing and distribution of ceramic tiles and construction-related materials, financial services, integrated forest/logging/paper operations, hotel and infrastructure development.
     (1 usd = 56.35 pesos)
     edelacruz@afxasia.com
 

 
Philippines' Asiatrust Bank Q2 to Dec net profit 10.09 mln pesos vs 5.85 mln


     MANILA (AFX-ASIA) - Asiatrust Development Bank's second quarter to Dec 31 results:
      Interest income - 373.42 mln pesos vs 353.64 mln
      Interest expense - 224.06 mln pesos vs 182.24 mln
      Net interest income - 149.36 mln pesos vs 171.4 mln
      Provision for probable losses - 4.74 mln pesos vs 12 mln
      Other income - 79.72 mln pesos vs 96.16 mln
      Net profit - 10.09 mln pesos vs 5.85 mln
      Earnings per share - 0.10 peso vs 0.06
     (1 usd = 56.35 pesos)
     edelacruz@afxasia.com
 

 
Philippines Roxas Holdings Q2 to Dec net loss 3.6 mln pesos vs profit 73.6 mln


     MANILA (AFX-ASIA) - Sugar producer Roxas Holdings Inc's second quarter to Dec 31 results:
      Gross profit - 140.9 mln pesos vs 228.6 mln
      Opg income - 20.1 mln pesos vs 130.02 mln
      Opg expenses - 127.09 mln pesos vs 102.3 mln
      Net loss - 3.6 mln pesos vs profit 73.6 mln
      Loss per share - nil vs EPS 0.08 peso
     
     (1 usd = 56.35 pesos)
     edelacruz@afxasia.com
 

 
Philippines Jan budget deficit around 16.4-16.5 bln pesos - Amatong


     MANILA (AFX-ASIA) - The national government's budget deficit in January stood at around 16.4-16.5 bln pesos, Finance Secretary Juanita Amatong said, citing preliminary figures.
     The government has not disclosed the deficit ceiling for the month.
     The government aims to contain this year's deficit at 197.8 bln pesos, or 4.2 pct of GDP, lower than last year's actual deficit level of 199.9 bln.
     (1 usd = 56.35 pesos)
     edelacruz@afxasia.com

 
Philippines' Fil-Estate Land Q1 to Dec net profit 9.5 mln pesos vs 2.6 mln


     MANILA (AFX-ASIA) - Fil-Estate Land Inc's first quarter to Dec results:
      Revenues - 465.04 mln pesos vs 233.2 mln
      Costs and Expenses - 363.8 mln pesos vs 198.5 mln
      Net profit - 9.5 mln pesos vs 2.6 mln
      Earnings per share - 0.00350 peso vs 0.00096
     (1 usd = 56.35 pesos)
     edelacruz@afxasia.com
 

 
OUTLOOK - Philippine Feb CPI seen rising 3.6-4.2 pct yr-on-yr


     MANILA (AFX-ASIA) - The Philippines' consumer price index (CPI) likely rose 3.6-4.2 pct year-on-year in February as oil and food prices surged and the peso weakened against the US dollar, economists AFX-Asia polled said.
     Headline January CPI was up 4.1 pct year-on-year based on the 2000 price series. Using the previous 1994 series, which most economists and the central bank continue to use, January's CPI rose 3.4 pct from a year earlier.
     The National Statistics Office will release the February CPI data on March 5.
     "The bird flu scare has prompted consumers to shift to other meat products, fish and other substitutes, generally pushing food prices higher than the usual," said AB Capital research director Jose Vistan Jr, who expects February CPI to have risen 3.6 pct year-on-year.
     The food, beverages and tobacco (FBT) commodity group has been assigned a 50.031-points weighting in the CPI basket.
     Vistan noted chicken prices did not decline despite weak demand since suppliers imported more expensive poultry products overseas, while local producers prepared to export to Asian countries hit by the avian flu outbreak.
     At least 10 countries in the region, including top poultry exporter Thailand and major chicken buyer Japan, were hit by the disease. The Philippines has been bird flue-free so far, opening export opportunities for local poultry producers.
     Banco de Oro Universal Bank market strategist Jonathan Ravelas said higher oil prices, due to a weaker peso and rising world crude costs, also provided upward pressure on prices of goods and services in February.
     Oil prices have remained high for almost a year due to tight supply and may not come down as OPEC plans to cut production in April when demand is expected to soften.
     In the local market, oil retailers have increased pump prices since the start of the year to reflect the higher costs in the world market. At the same time, they may also start recovering investments made to produce environment-friendly fuels to comply with the stringent provisions of the Clean Air Act.
     "Oil prices have gone up as a direct result of a weak peso. (Higher) utility rates would not be far behind," Ravelas, who projects February CPI to have inched up 3.6-3.8 pct, said.
     The government's economic projections for the year, which include a full-year CPI average of 4.0-5.0 pct, are based on assumptions that the foreign exchange rate would average 54.00-56.00 to the US dollar.
     However, the peso fell to a record low of 56.35 versus the greenback as early as February 20 on political concerns ahead of the May 10 general elections.
     "We expect price pressures to further intensify come March and April due to election-related spending," Ravelas added.
     Vistan, however, said the rise in February CPI was modest, thanks to weaker pricing power among producers who refrained from jacking up prices as consumer demand remains soft.
     As an indication, December manufacturing output and sales were both down year-on-year, while the industry's average capacity utilization was unchanged at 78.2 pct.
     "The weak peso, election-related spending and rising petrol prices are likely to jack up February's CPI to 4.2 pct from 4.1 in the previous month," DBS economist Chee Seng Wong said, using the new 2000 base year in his computation.
     He added core inflation, which strips out the effects of temporary disturbances on the headline CPI by excluding items such as food and energy, is likely to stay strong in February in line with its rising trend since May 2002.
     (1 usd = 56.33 pesos)
     cecille.yap@afxasia.com
 

 


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