NEWS

Manila shares close marginally lower on profit-taking

     MANILA (AFX-ASIA) - Share prices closed marginally lower after sluggish trade as investors pocketed quick gains from the previous day.
     However, sustained buying interest in Philippine Long Distance Telephone Co and affiliate Pilipino Telephone Corp limited the market's decline.
     Dealers said the market consolidated after yesterday's rally attributed largely to the Supreme Court's ruling allowing opposition candidate Fernando Poe Jr to run the May 10 presidential election.
     The 30-company composite index closed down 2.42 points, or 0.16 pct, at 1, 471.65 on 184.58 mln shares worth 400.26 mln pesos. It traded between 1,467. 30 and 1,474.49 points.
     In the broader market, losers closed ahead of gainers 30 to 13, while 43 stocks were unchanged.
     PLDT was top-traded on 128,990 shares and up 5.00 pesos at 950.00.
     Second most active was Piltel on 33.18 mln shares, gaining 0.04 to 1.70.
     Dealers said the market will continue to trade sideways next week if there are no further major developments as investors are expected to stay on the sidelines ahead of the May polls.
     (1 usd = 56.318 pesos)
     cecille.yap@afxasia.com

DATAWATCH - Philippine central bank may raise rates soon given CPI risks - DBS

     MANILA (AFX-ASIA) - The central bank may raise benchmark interest rates soon as inflationary pressures persist despite the stable consumer price index recorded in February, DBS Bank regional economist Wong Chee Seng said.
     Wong said the prevailing weakness of the peso, higher oil prices and an anticipated increase in transport fares will certainly push inflation higher in the coming months.
     "I am worried that because of these pressures, the Philippines would raise benchmark rates ahead of the United States. That should cloud the country's economic prospects," Wong said.
     The Philippine headline consumer price index (CPI) rose 3.4 pct year-on-year in February based on 1994 prices, unchanged from the 3.4 pct year-on-year increase in January, the National Statistics Office (NSO) said.
     Inflation rates for the food, beverage and tobacco (FBT) commodity group, as well as clothing and miscellaneous items, were steady from the previous month.
     CPI may start its upward trek as early as April, when the impact of a weaker peso and higher oil prices will be reflected in the prices of goods and services, Wong said.
     The general elections scheduled in May is also seen increasing domestic liquidity and putting pressure on prices.
     "The only factor that could temporarily save the Philippines from higher inflation is the country's rising agricultural output," Wong said.
     Central bank governor Rafael Buenaventura said steady CPI in February has given the regulator enough flexibility regarding its monetary stance. He, however, added that the central bank remains cautious about future inflationary pressures.
     The central bank in February increased the reserve requirements of banks by 2.0 percentage points to siphon off 30 bln pesos in excess liquidity from the financial system.
     It may also raise benchmark overnight rates to halt a surge in inflation and, at the same time, prevent the weak peso from depreciating further.
     The central bank is keeping its annual inflation outlook of 4.0-5.0 pct growth for 2004, despite the peso's sharp fall to a record low of 56.35 to the US dollar recently.
     (1 usd = 56.318 pesos)
     cecille.yap@afxasia.com

Forex - Philippine peso nears record low on weak regionals, short-covering

     MANILA (AFX-ASIA) - The peso was trading near a record low of 56.35 to the US dollar in late morning trade, in line with weak regional currencies and amid short-covering by banks ahead of the weekend, dealers said.
     At 11.27 am, the peso averaged 56.318 to the dollar, after falling to 56. 34 early in the session, on volume of 60.0 mln usd. It closed at 56.235 yesterday.
     Dealers said the stable headline inflation rate in February indicates the central bank is not under strong pressure to raise key interest rates at the moment.
     This may leave the peso open to speculative attacks again given prevailing political uncertainties in the run-up to the May 10 presidential and local elections.
     "The peso is tracking the regionals plus there's the usual short-covering before the weekend. We've also seen demand for dollars particularly below the 56.20s," a commercial bank dealer said.
     Asked about the possibility of the peso hitting a record low again in today's session, the dealer said: "I wish I have the formula for that."
     But he believes there is support for the peso at 56.35 at the moment.
     He said the central bank has not been seen in the market so far.
     The central bank may keep its monetary policy stable for now after the steady inflation rate in February, the regulator's governor Rafael Buenaventura said.
     But he warned of future price pressures.
     "(The stable inflation) gives us flexibility, but (we) must remain cautious because of future inflationary pressures," Buenaventura told AFX-Asia.
     The Philippine headline consumer price index (CPI) rose 3.4 pct year-on-year in February, based on 1994 prices, unchanged from the 3.4 pct year-on-year increase in January, the National Statistics Office (NSO) said.
     Using a new 2000 price base, which the NSO introduced in January, inflation in February rose 4.0 pct year-on-year, slower than January's 4.1 pct increase from the year-earlier period.
     Threats of inflationary pressures arising mainly from a weaker peso had prompted the central bank to hike the reserve requirements of banks by 2.0 percentage points in early February to siphon off some 30 bln pesos in excess liquidity from the financial system.
     The central bank, however, has kept key interest rates steady at 6.750 pct for overnight borrowing and 9.000 pct for overnight lending.
     The central bank has retained its annual inflation outlook of 4.0-5.0 pct growth for 2004, even though the peso has fallen sharply against the dollar.
     Early this week, Buenaventura said he still sees the peso averaging 54-56 to the dollar this year, with the local unit seen recovering after the May polls.
     edelacruz@afxasia.com

Most in Philippines favor family planning, despite church opposition - survey

     MANILA (AFX-ASIA) - Most people in the Philippines favor family planning and will defy the dominant Catholic church on the issue, results of a survey released today showed.
     Independent researcher Pulse Asia Inc found that 97 pct of respondents believe it is important to have the ability to plan the size of one's family and 71 pct said a fast-growing population hinders economic development.
     The survey of 1,800 adult Filipinos, conducted on Feb 16-20 has a margin of error of 2.3 pct, Pulse Asia said in a statement.
     It said 82 pct of respondents feel candidates who believe in "the free use of couples as to family planning methods" deserve to be supported in the May 10 elections.
     However, the survey also found that only 50 pct feel candidates' support of family planning will help their chances. Another 41 pct said it will make no difference, while 8 pct said it will hurt the candidate.
     Pulse Asia also found that 64 pct of respondents said the church should not support or oppose the election of candidates in the May elections, while 24 pct said the church should be engaged.
     The Roman Catholic church, which counts about 80 pct of Filipinos as followers, is opposed to family planning and the use of contraceptives and has been subtly urging people not to vote for candidates who favor birth control.
     Many candidates in the May 10 elections have panned the issue to avoid offending the church.
     Among them is President Gloria Arroyo who has said she does not consider population control as a serious issue, despite the country having a growth rate of 2.36 pct, one of the highest in Asia.
     The Philippines has a population of 82 mln.

STOCK ALERT - Philippines' Piltel firmer on bargain-hunting

     MANILA (AFX-ASIA) - Pilipino Telephone Corp was firmer mid-session as investors sought bargain stocks in an otherwise sluggish market, dealers said.
     Top-traded Piltel was up 0.04 peso, or 2.41 pct, at 1.70 on volume of 22. 02 mln shares.
     Dealers said charts suggest Piltel has neared its oversold level, prompting market technicians to recommend a "buy" on the stock.
     Resistance is seen at 1.84 pesos.
     Piltel reported that it dramatically narrowed its net loss last year to 3. 35 bln pesos from 21.83 bln in 2002 on the back of its wireless business' substantial growth.
     As of end-2003, the total subscriber base of Piltel's wireless brand Talk 'N Text stood at 2.87 mln, up 62 pct from 1.77 mln at the end of the previous year.
     The company said it is looking forward to a continued recovery this year. The recovery plan it submitted earlier to the stock exchange showed it expects to return to profitability this year, with an earnings forecast of 402.4 mln pesos.
     (1 usd = 56.313 pesos)
     cecille.yap@afxasia.com

Manila shares slightly lower mid-session on consolidation

     MANILA (AFX-ASIA) - Share prices were slightly lower in mid-session on consolidation after yesterday's rally attributable to the Supreme Court ruling to allow opposition presidential candidate Fernando Poe Jr to stand in the May 10 polls, dealers said.
     The market is likely to continue trading sideways from today in the absence of any major developments and on lingering political and economic concerns ahead of the elections continue to keep cautious investors sidelined.
     At 10.20 am, the 30-company composite index was down 3.93 points, or 0.27 pct, at 1,470.14 on volume of 42.4 mln shares worth 74.97 mln pesos. It has so far traded between 1,470.14 and 1,474.49.
     In the broader market, losers were leading gainers 12 to seven, while 19 stocks were unchanged.
     Pilipino Telephone Corp, an affiliate of dominant carrier Philippine Long Distance Telephone Co, has been top-traded so far on volume of 19.4 mln shares and up 0.04 peso, or 2.41 pct, at 1.70.
     Second most active PLDT was up 5.00 at 950.00 on 9,460 shares.
     The court ruling for Poe spurred investors to return to the market to pick up bargains yesterday as fears of massive protests eased.
     With the Poe disqualification issue out of the way, investors are now facing a vacuum in terms of factors to move the market, dealers said.
     The market will likely trade within a range of 1,430 to 1,500 today.
     (1 usd = 56.313 pesos)
     cecille.yap@afxasia.com

Philippines February CPI up 3.4 pct yr-on-yr, based on 1994 prices

     MANILA (AFX-ASIA) - The Philippine headline consumer price index (CPI) rose 3.4 pct year-on-year in February, based on 1994 prices, unchanged from the 3.4 pct year-on-year increase in January, the National Statistics Office (NSO) said.
     Economists AFX-Asia polled had seen the CPI rising 3.6-4.2 pct year-on-year in February due to higher oil and food prices and a weaker peso.
     However, the NSO data showed that the food, beverage and tobacco (FBT) commodity group, as well as clothing and miscellaneous items, retained their January inflation rates.
     Headline CPI in February last year was 3.1 pct.
     Using a new 2000 price base, which the NSO introduced in January, inflation in February rose 4.0 pct year-on-year, slower than January's 4.1 pct increase from the year-earlier period.
     Month-on-month, February prices increased an average 0.2 pct, using both the 1994 and 2000 bases, slower than January's 0.8 pct and 0.9 pct monthly rises, respectively.
     The NSO started using 2000 as the base year for the January 2004 data to reflect the changes in the consumption patterns of Filipinos.
     Earlier, Economic Planning Secretary Romulo Neri said he expected February CPI to come in up 3.4 pct, unchanged from the previous month, while the central bank expected prices to have gone up 3.4-3.6 pct during the month.
     Core inflation in February inched up 3.7 pct year-on-year, based on 1994 prices, and 4.1 pct, using the 2000 base.
     Core inflation strips out the effects of temporary disturbances on headline CPI with the exclusion of items such as food and energy.
     The NSO said year-on-year inflation rates for FBT, clothing and miscellaneous items were steady at 3.3 pct, 2.3 and 1.9, respectively.
     The price increase for food alone stood at 3.4 pct in February, similar to the rate in January.
     However, inflation for housing and repairs was up 3.1 pct, while the CPI rates for fuel, light and water (FLW) and services declined to 3.4 pct and 5. 0 pct, respectively.
     (1 usd = 56.235 pesos)
     afxmanila@afxasia.com

Philippines' Meralco rolls over 79.2 mln usd short-term loans to June

     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) said its creditors have agreed to extend to June the repayment of 79.2 mln usd in short-term loans which fell due yesterday.
     "The company continues to review its options regarding a longer-term solution to its near-term obligations ... The company's short-term lenders continue to be supportive of Meralco's refinancing plans," the country's largest power distributor told the stock exchange in a disclosure.
     Meralco's short-term creditors include Bank of the Philippine Islands, Citibank NA, Equitable PCI Bank, and Banco de Oro Universal Bank.
     They have agreed to extend the repayment of the loans by another three months on the same terms and conditions, Meralco said without giving details.
     The loans, which originally fell due in April last year, have been rolled over several times as the company refunds 30.5 bln pesos to customers who had been overcharged.
     (1 usd = 56.31 pesos)
     cecille.yap@afxasia.com

Philippines' steady Feb CPI allows stability in monetary policy - Buenaventura

     MANILA (AFX-ASIA) - The central bank may keep its monetary policy stable for now after the steady inflation rate in February, the regulator's governor, Rafael Buenaventura, said.
     "It gives us flexibility, but (we) must remain cautious because of future inflationary pressures," Buenaventura told AFX-Asia.
     The Philippine headline consumer price index (CPI) rose 3.4 pct year-on-year in February, based on 1994 prices, unchanged from the 3.4 pct year-on-year increase in January, the National Statistics Office (NSO) said.
     Using a new 2000 price base, which the NSO introduced in January, inflation in February rose 4.0 pct year-on-year, slower than January's 4.1 pct increase from the year-earlier period.
     A bigger CPI rise in January and a weaker peso prompted the central bank to hike the reserve requirements of banks 2.0 percentage points to siphon off some 30 bln pesos in excess liquidity from the financial system.
     Ideally, the central bank may also raise benchmark interest rates to arrest a surge in inflation, as well as a monetary tool to prevent the weak peso from depreciating further.
     The central bank has retained its annual inflation outlook of 4.0-5.0 pct growth for 2004 even as the peso has fallen sharply against the US dollar. The local currency hit a record low of 56.35 to the dollar on Feb 20. Other risks to this year's CPI outlook persist, including higher oil prices and increases in tariffs and utility charges.
     (1 usd = 56.31 pesos)
     afxmanila@afxasia.com

Philippines February CPI up 3.4 pct yr-on-yr, based on 1994 prices

     MANILA (AFX-ASIA) - The Philippine headline consumer price index (CPI) rose 3.4 pct year-on-year in February, based on 1994 prices, unchanged from the 3.4 pct year-on-year increase in January, the National Statistics Office (NSO) said.
     Economists AFX-Asia polled had seen the CPI rising 3.6-4.2 pct year-on-year in February due to higher oil and food prices and a weaker peso.
     Using a new 2000 price base, which the NSO introduced in January, inflation in February rose 4.0 pct year-on-year, slower than January's 4.1 pct increase from the year-earlier period.
     Month-on-month, February prices increased an average 0.2 pct, using both the 1994 and 2000 bases, slower than January's 0.8 pct and 0.9 pct monthly rises, respectively.
     The NSO started using 2000 as the base year for the January 2004 data to reflect the changes in the consumption patterns of Filipinos.
     Earlier, Economic Planning Secretary Romulo Neri said he expected February CPI to come in up 3.4 pct, unchanged from the previous month, while the central bank expected prices to have gone up 3.4-3.6 pct during the month.
     Meanwhile, core inflation in February inched up 3.7 pct year-on-year, based on 1994 prices, and 4.1 pct, using the 2000 base.
     Core inflation strips out the effects of temporary disturbances on headline CPI with the exclusion of items such as food and energy.
     (1 usd = 56.235 pesos)
     afxmanila@afxasia.com

Philippines' Asian Terminals signs 500 mln pesos loan deal with HSBC

     MANILA (AFX-ASIA) - Asian Terminals Inc (ATI) said it has signed an agreement with Hongkong and Shanghai Banking Corporation Ltd for a five-year 500-mln peso fixed and floating rate peso-denominated loan.
     The company added that it will use the loan to finance its South Harbor modernization program.
     In a statement, the ports and logistics operator said the program covers the rehabilitation of piers, expansion of container yard space and acquisition of new equipment and technology.
     Among the four major international ports where ATI operates, South Harbor at the Port of Manila continues to be the major driver of the business.

     In 2003, it handled over 650,000 TEUs (20-foot equivalent units), a 7 pct improvement from the previous year and above the government's projection of a 6.5 pct growth.
     ATI is affiliated with P&O Ports, a leading global port operator with 27 container terminals and logistics operations in moe than 100 ports in 18 countries.
     (1 usd = 56.20 pesos)
     edelacruz@afxasia.com

Manila shares close higher after court ruling on Poe presidency

     MANILA (AFX-ASIA) - Share prices recovered from two days of losses as investors returned to the market, relieved at the lifting of a major political overhang following the Supreme Court's ruling that opposition presidential candidate Fernando Poe Jr ('FPJ') can stand in the May 10 election, dealers said.
     Philippine Long Distance Telephone and affiliate Pilipino Telephone Corp led the market's rise.
     The 30-company composite index closed up 11.07 points, or 0.76 pct, at 1, 474.07 on volume of 103.1 mln shares worth 278.1 mln pesos. It traded between 1,463.26 and 1,480.72.
     Gainers outnumbered losers 25 to 11, with another 11 stocks unchanged.
     Top-traded PLDT closed up 15 pesos at 945 on 59,870 shares.
     Affiliate Pilipino Telephone Corp gained 0.20 to 1.66 on 19.29 mln shares.
     Dealers said fears that Poe supporters would launch massive protests, if he had been disqualified, have eased with the favorable court ruling, encouraging investors to return to the market to look for bargains.
     The high court has ruled Poe is a natural-born Filipino citizen, despite being born out of wedlock to an American mother and a Filipino father. As a result, Poe is eligible to join the presidential race.
     The court decision came after independent outfit Social Weather Stations' (SWS) nationwide survey confirmed that the incumbent, US-trained economist Arroyo has overtaken Poe in the popularity stakes.
     Arroyo had a 1.3-point lead in the poll of 1,200 registered voters on Feb 17-25. The survey firm, however, interpreted the race as a dead-heat between Arroyo and Poe, a high-school dropout with no experience in public office.
     "The disqualification case is one major concern off our list, and this should give the market temporary relief," Citiseconline.com analyst Mark Alan Canizarez said.
     He said, however, trading will likely remain sideways as the market consolidates after sharp gains in January and February. Investors are expected to remain cautious ahead of the May 10 polls.
     AB Capital research director Jose Vistan Jr said today's gains suggest how relieved the market is "that we have been spared from the worst-case scenario (of chaos in the streets)."
     "Whether FPJ will be president is another thing. But we would rather see him being president through an election than through the use of force," Vistan said, when asked whether a possible Poe presidency continues to concern the financial markets.
     Investors are said to be concerned about the movie star's ability to govern a nation of more than 84 mln people given his of lack of experience in government service and limited educational background.
     Second most actively-traded stock Globe Telecom shed 5 to 860 on 43,140 shares.
     Ayala Land shed 0.20 to 5.60 on 2.58 mln shares, while parent Ayala Corp ended unchanged at 5.90 on 2.58 mln shares.
     Bank of the Philippine Islands gained 0.50 to 46.00.
     The all-shares index rose 3.61 points to 940.02.
     The commercial-industrial index gained 13.53 points to 2,282.19.
     Property rose 10.10 points to 539.00.
     Mining was unchanged at 1,492.69 points, while oil gained 0.02 to 1.25.
     Banking and financial services climbed 1.96 to 436.62.
     (1 usd = 56.201 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - Philippine PLDT up on bargain-hunting, US carriers' payments

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co was up in early trade on bargain-hunting in line with the broader market's recovery, dealers said.
     Investors also took as a positive development news that PLDT has received some 8 mln usd in overdue termination fees from US carriers AT&T, MCI and Sprint Communications, which they said indicate that the group's relationship with its American counterparts has gone back to normal.
     PLDT was up 25.00 pesos at 955.00 on 19,020 shares on a boost to turnover from cross sales.
     PLDT had lost 35 pesos since Monday as investors took to the sidelines to await the Supreme Court ruling on petitions seeking to disqualify opposition presidential candidate and movie star Fernando Poe Jr.
     Last night's decision of the high court to allow Poe to join the May 10 presidential race was favorably received by investors, who drove the benchmark index up 15.32 points to 1,478.32 on the back of interest in select blue chips.
     (1 usd = 56.206 pesos)
     cecille.yap@afxasia.com

DATAWATCH - Philippines 2004 exports off to a slow start - AB Capital

     ---- by Cecille Yap ----
     MANILA (AFX-ASIA) - Philippine exports have made a slow start to 2004 after a disappointing 4.1 pct year-on-year growth in January, putting to risk this early government's 10 pct exports growth target for the year.
     AB Capital research director Jose Vistan said prevailing domestic concerns both on the political and economic fronts have made it difficult for Philippine manufacturers to compete on the global market.
     "The cost of doing business in the Philippines has gone up due to a number of factors. Wages remain high, interest rates are rising and the peso has fallen to a historic low, all of which make Philippine products uncompetitive," Vistan said.
     The National Statistics Office reported that merchandise exports increased 4.1 pct year-on-year in January to 2.84 bln usd from 2.73 bln in the same month last year.
     The January figure marks a slowdown from the 9.0 pct year-on-year growth in December exports, which came in at 3.176 bln usd.
     Electronics exports, which accounted for 67.8 pct of the total receipts in January, rose 1.2 pct year-on-year to 1.93 bln usd. The figure was also lower than December's 6.9 pct year-on-year growth to 2.06 bln usd.
     While it is too early to tell if export performance will be disappointing for the rest of the year, Vistan said the sector faces several risks.
     For instance, oil prices are not likely to go down substantially in the coming months with the Organization of Petroleum Exporting Countries (OPEC) studying a proposal to cut output further after last November's reduction.
     In February, OPEC agreed to cut the group's production ceiling by 1 mln barrels per day (bpd) to 23.5 mln bpd from April 1 to counterbalance the anticipated seasonal drop in second quarter demand.
     In addition, OPEN gave a pledge to eliminate overproduction above the official quota of 1.5 mln bpd with immediate effect.
     Prices of goods and services are also on the rise and analysts AFX-Asia polled expect the February consumer price index to go up between 3.6 pct and 4.2 pct year-on-year due to higher oil and food prices and a weaker peso.
     Vistan said a continued rise in prices is likely to prompt workers to demand higher wages, which will eventually render Philippine labor costs uncompetitive against those of its Asian neighbors.
     (1 usd = 56.207 pesos)
     cecille.yap@afxasia.com

Forex - Philippine peso stable after court rules Poe can run for president

     MANILA (AFX-ASIA) - The peso was relatively stable in early morning trade as the Supreme Court ruling allowing opposition presidential candidate Fernando Poe Jr ('FPJ') to run in the May 10 polls eased worries of political unrest, dealers said.
     At 10.15 am, the peso averaged 56.207 to the US dollar after trading between 56.20 and 56.225 on volume of 30.5 mln usd. It closed at 56.20 yesterday.
     "The peso is consolidating and it will likely remain range-bound for the whole week," a commercial bank dealer said.
     "The market was worried there would be mass protests if FPJ were disqualified so the Supreme Court decision somehow helped ease political concerns."
     The dealer said demand for dollars below 56.20 was however preventing the peso from gaining ground.
     A market strategist for a commercial bank said yesterday's peso close at 56.20 "indicates that a near-term bottom is in place at 56.15."
     The strategist added that a close above the 56.26 level will confirm the peso had bottomed and expects the currency to test the 56.50 level.
     "Only a close below the 56.15 (level) would suggest otherwise," the strategist said.
     Dealers said the candidacy of Poe, a high-school dropout with no experience in politics and governance, remains a concern for the market.
     edelacruz@afxasia.com

Philippine January merchandise exports up 4.1 pct yr-on-yr

     MANILA (AFX-ASIA) - Merchandise exports increased 4.1 pct year-on-year in January to 2.84 bln usd from 2.73 bln in the same month last year, the National Statistics Office reported.
     The January figure marks a slowdown from the 9.0 pct year-on-year growth in December exports, which came in at 3.176 bln usd.
     Electronics exports, which accounted for 67.8 pct of the total receipts in January, rose 1.2 pct year-on-year to 1.93 bln usd. The figure was, however, lower than December's 6.9 pct year-on-year growth to 2.06 bln usd.
     Semiconductor shipments, which accounted for 44.4 pct of total exports in January, dropped 5.6 pct year-on-year to 1.26 bln usd from 1.34 bln previously.
     The NSO said the drop reflects the shift in the filing of export documents through the Automated Export Declaration System, "where some companies may be reporting only the value added and not the total value of the exports, which includes other costs, like the value of imported raw materials on consignment basis."
     It added there is also a change in the pricing of some companies.
     Articles of apparel and clothing accessories remained the country's second top foreign-exchange earner with a combined share of 5.6 pct and aggregate receipts of 158.61 mln usd, 11 pct lower than the year-earlier's 178.3 mln.
     Coconut oil exports ranked third with total revenue of 40.48 mln usd, up 15 pct year-on-year.
     Accounting for 87.4 pct of total January receipts, exports of manufactured goods inched up 1.3 pct year-on-year to 2.486 bln usd.
     Exports to Japan accounted for 17.6 pct of total January receipts, valued at 499.09 mln usd, up 17.6 pct year-on-year.
     The US followed with a 17.0 pct share, as receipts reached 483.06 mln usd, down 15.5 pct year-on-year.
     Netherlands was the Philippines' third biggest export market in January, cornering 9.2 pct of the total, valued at 261.08 mln usd.
     (1 usd = 56.20 pesos)
     afxmanila@afxasia.com

Philippines plans issue of Retail Treasury Bonds

     MANILA (AFX-ASIA) - The government plans to issue more Retail Treasury Bonds (RTBs) to raise funds without putting pressure on domestic interest rates, Finance Secretary Juanita Amatong said.
     The plan comes after the Bureau of Treasury temporarily suspended the fortnightly Treasury bill and Treasury bond offerings as banks continued to push up rates.
     It also announced a plan to issue about 10 bln pesos worth of cash management bills on a weekly basis.
     "With the interest on savings as low as it now, retail investors will prefer to invest on RTBs," Amatong said.
     The size of the RTB issue has yet to be fixed.
     (1 usd = 56.20 pesos)
     cecille.yap@afxasia.com

Manila shares firmer early after court allows Poe to join presidential race

     MANILA (AFX-ASIA) - Share prices were higher in early trade on gains in Philippine Long Distance Telephone Co, with investors relieved that a major political overhang has been lifted after the Supreme Court decided to allow opposition presidential candidate Fernando Poe Jr to run in the May 10 poll.
     With the court decision, fears of the movie icon's supporters launching massive violent street protests have been laid to rest, allowing investors to return to the market and purchase select bargain stocks, dealers said.
     At 9.45 am, the 30-company composite index was up 14.09 points, or 0.96 pct, at 1,477.09 on volume of 20.5 mln shares worth 39.14 mln pesos. It has so far traded between 1,463.26 and 1,477.09.
     The market's breadth was positive, with gainers outnumbering losers 13 to one, while 11 stocks were unchanged.
     Top-traded PLDT was up 20.00 pesos at 950.00 on 15,600 shares.
     Investors in the foreign exchange market also welcomed the Supreme Court decision, with the peso stable so far at an average of 56.208 to the US dollar on volume of 13.0 mln usd. It closed at 56.20 yesterday.
     The equities market is seen trading in a narrow range of 1,460 to 1,480 points today.
     Voting 8-5, the high court ruled Poe is a natural-born Filipino citizen, and is, as such, allowed to run for president.
     Petitioners claimed Poe, the son of a Filipino father and American mother, was born out of wedlock and, therefore, not automatically recognized as following the nationality of his father.
     However, the court ruled "it is enough that filiation is established or that the child is acknowledged or recognized by the father."
     Provisions of the 1935 Constitution, which apply in this case, make no distinction between legitimate and illegitimate children of Filipino fathers, Supreme Court chief justice Hilario Davide Jr said.
     The crucial decision of the court comes after the latest pre-presidential election survey by pollster Social Weather Station showed incumbent President Gloria Arroyo, whom financial markets favor heavily, overtaking Poe in the popularity stakes.
     cecille.yap@afxasia.com

Manila shares outlook - Mixed to slightly up after court go-ahead for Poe

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to slightly higher on a likely return of investors to the market after the Supreme Court ruled in favor of opposition presidential candidate Fernando Poe Jr in the petition filed to disqualify him from the May 10 election, dealers said.
     Analysts said the high court's decision to allow Poe to run for president has put to rest a major uncertainty on the political front, particularly due to concerns that a ruling otherwise would have seen violent street protests among the movie icon's supporters.
     Yesterday, the composite index closed down 14.02 points, or 0.95 pct, at 1,463.00 on volume of 430.6 mln shares worth 508.4 mln pesos.
     In the broader market, losers led gainers 22 to 10, while 44 stocks were unchanged.
     "The ruling is one concern off our list. Essentially, we're back to where we were before the (disqualification) petitions were filed, (when) market was trading sideways and the investment horizon was short ahead of the election," Citiseconline.com analyst Mark Alan Canizares said.
     The market's support is seen at 1,450 and resistance at 1,500.
     Voting 8-5, the high court ruled Poe is a natural-born Filipino citizen, and is, as such, allowed to run for president.
     Petitioners claimed Poe, the son of a Filipino father and American mother, was born out of wedlock and, therefore, not automatically recognized as followin g the nationality of his father.
     However, the court ruled "it is enough that filiation is established or that the child is acknowledged or recognized by the father."
     Provisions of the 1935 Constitution, which apply in this case, make no distinction between legitimate and illegitimate children of Filipino fathers, Supreme Court chief justice Hilario Davide Jr said.
     Investors were wary of a Poe disqualification for fear his supporters would stage massive protests and destabilize the government.
     However, a possible Poe presidency had also spooked financial markets, sending the peso to its all-time low and the stock market tumbling, given his lack of experience in government and his limited educational background.
     The crucial decision of the court comes after the latest pre-presidential election survey conducted by pollster Social Weather Station showed incumbent President Gloria Arroyo, whom financial markets favor heavily, has overtaken Poe in the popularity stakes.
     (1 usd = 56.20 pesos)
     cecille.yap@afxasia.com

Philippine Supreme Court allows opposition presidential bet Poe to run

     MANILA (AFX-ASIA) - The Supreme Court has allowed opposition presidential candidate and movie actor Fernando Poe Jr to stand in May 10 presidential elections, dismissing three petitions seeking to disqualify the film star on allegations he is not a "natural-born Filipino citizen".
     Voting 8-5, the court gave weight to arguments by four "friends of the court" who all said that Poe is a natural-born Filipino citizen under the terms of the 1935 Constitution.
     Petitioners claimed Poe, the son of a Filipino father and American mother, was born out of wedlock and therefore not automatically recognized as following the nationality of his father.
     But Supreme Court chief justice Hilario Davide said: "It is enough that filiation is established or that the child is acknowledged or recognized by the father."
     He added that provisions of the 1935 Constitution, which applies in this case, make no distinction between legitimate and illegitimate children of Filipino fathers.
     Aside from Davide, voting in favor of Poe were associate justices Jose Vitug, Angelina Sandoval-Gutierrez, Alicia Austria-Martines, Romeo Callejo Sr, Adolfo Azcuna, Reynato Puno and Consuelo Ynares-Santiago.
     Dissenting were associate justices Leonardo Quisumbing, Antonio Carpio, Renato Corona, Conchita Carpio Morales and Dante Tinga.
     Associate justice Artemio Panganiban was on official leave.
     The court also said the Commission on Elections (Comelec) did not commit a grave abuse of discretion when it ruled that the movie actor is qualified to run for president in the May elections.
     The decision comes after the latest pre-presidential election survey conducted by pollster Social Weather Station showed incumbent president Gloria Arroyo, heavily favored by financial markets, has overtaken Poe.
     The SWS survey, conducted during Feb 17-25 and covering 1,200 respondents nationwide, showed 31.8 pct for Arroyo and 30.5 pct for Poe, a high-school dropout.
     The results mirror that of another respected pollster, Pulse Asia, which showed Arroyo already ahead of Poe by a slight margin at 31.9 pct to 31.7 pct.
     cecille.yap@afxasia.com

Philippines election campaign marred by violence, military unrest

     ---- by Cecil Morella ----
     MANILA (AFX-ASIA) - Philippines justice officials are to meet later today to discuss the eligibility of film star Fernando Poe to stand in presidential elections, as violence marred campaigning for the May 10 polls.
     Fourteen judges of the Philippines Supreme Court were to meet at 7pm local time to discuss a bid by Poe's opponents to have him barred from the election, a source told Agence France-Presse on condition of anonymity.
     It is not clear whether the judges are likely to make a decisive ruling amid speculation judges may seek to refer the case back to a lower court before taking further action.
     The court is to decide whether Poe, born in 1939 to a Filipino father and an American mother, is a "natural-born Filipino citizen" as required by the constitution for presidential candidates.
     The case has heightened tensions in the coup-prone Southeast Asian nation, where investigators today questioned three military officers accused of recruiting soldiers to join planned anti-government protests.
     A spokesman for Philippines President Gloria Arroyo said "the latest destabilization attempt has been nipped in the bud and is being dealt with by routine disciplinary measures."
     Arroyo is seeking a six-year term in the May 10 vote after surviving a military rebellion last year.
     Elected vice president in 1998, she came to power with the help of the milit ary and the Supreme Court after a popular revolt ended the presidency of movie star Joseph Estrada in Jan 2001.
     Estrada, now in prison while on trial for corruption, has warned of "civil war" if his friend Poe were barred from running by the Supreme Court.
     Military spokesmen said the three detained officers were organizing military participation in pro-Poe street protests should the Supreme Court rule against him.
     Poe campaign supporter Manny Portes urged the candidate's followers to remain calm but vigilant.
     "If there is action coming from the people, we advise them to do it within the bounds of the law," Portes said.
     The suggestions of unrest have overshadowed Arroyo's surge in the opinion surveys.
     A Feb 17-25 poll of 1,200 registered voters by Manila-based Social Weather Stations (SWS) put Arroyo slightly ahead of Poe, 31.8 pct to 30.5 pct.
     Arroyo campaign spokesman Michael Defensor said he is confident she will have "a comfortable margin of about five to 10 pct" by the time the voters go to the polls in two months' time.
     SWS chief Mahar Mangahas said the Poe disqualification case was "the main election-related news event" of the past month. "I feel certain that it must be related somehow to these particular matters going on."
     Arroyo's surge in the polls came as violence erupted during electioneering by the president's supporters.
     Arroyo ally Josephine Sato, a member of the House of Representatives, and three other people were shot and wounded in an ambush on Mindoro island south of Manila, the military said.
     Government radio said Sato would be airlifted to Manila for treatment. Military spokesmen said a bullet grazed her head but that her life is not in danger.
     No suspects have been named or arrested, but communist guerrillas are known to operate on the island. A mayoral candidate was assassinated in Mindoro last month.

Philippine PLDT receives 8 mln usd in overdue payments from US carriers

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co said it has received from US carriers AT&T, MCI and Sprint Communications some 8 mln usd in overdue termination fees.
     "This was the result of the interim agreements we signed with them in different occasions. These were long overdue payments," PLDT senior vice president for international and carrier business group Alfredo Panlilio said.
     The termination rates, paid to local carriers for processed inbound calls from the US, are at 0.12 usd per minute for US calls to landline circuits and 0.16 usd for mobile calls.
     The US Federal Communications Commission early last year ordered US carriers to suspend payments to their Philippine counterparts for processed inbound calls from the US.
     US carriers claimed that PLDT and other telcos were blocking calls from US carriers to force them to pay higher termination fees.
     However, PLDT resumed direct circuit services with MCI and Sprint in November and AT&T in January, after reaching an interim agreement, wherein PLDT would accept traffic from foreign carriers, while they settle all outstanding termination payments.
     "Now, we are working on the present traffic. But I don't foresee any collection problems because the agreements are binding. It's good that there's this arrangement put in place by the regulators. We got paid and traffic is now normal," Panlilio added.
     afxmanila@afxasia.com

Philippines says military plot "nipped in the bud" with arrests

     MANILA (AFX-ASIA) - A destabilization attempt against President Gloria Arroyo has been "nipped in the bud" with the arrest of three military officers, her spokesman said.
     The military announced yesterday that an Army colonel and two lieutenant colonels were being questioned over an alleged plot to recruit soldiers for anti-government protest actions.
     Arroyo is seeking a six-year term in the May 10 vote after surviving a military rebellion last year.
     "The latest destabilization attempt has been nipped in the bud and is being dealt with by routine disciplinary measures," Arroyo's spokesman, Ignacio Bunye, said.
     Destabilization plots "are doomed to failure", Bunye said, adding that the overall military chain of command remains loyal to government.
     The three officers were arrested last month after they were found trying to recruit reservists for planned protests backing the opposition candidate, movie star Fernando Poe, in case he was disqualified, the military said.
     The Supreme Court is set to decide shortly on a petition to have Poe barred from standing on grounds he is not a "natural-born Filipino citizen."
     The officers were detained at the army headquarters of Fort Bonifacio while their possible links to other military plotters or to opposition politicians are investigated.
     Military spokesman Lieutenant Colonel Daniel Lucero stressed that under the constitution, the military is barred from engaging in "partisan political activities."
     He said intelligence operatives have been monitoring the three and have gathered enough evidence to warrant a full-blown investigation.
     Opposition candidate Poe, considered the country's John Wayne, commands a huge following among the country's majority poor. His candidacy is the biggest threat to incumbent Arroyo.
     Poe's followers had warned of civil unrest if he was barred from running.

Philippines' Petron to implement diesel discounts nationwide

     MANILA (AFX-ASIA) - Petron Corp said it will offer a 0.30 pesos per liter discount on diesel fuel for public utility vehicles in the islands of Visayas and Mindanao, expanding the scheme started in metropolitan Manila last year.
     Yesterday, the partially government-owned oil company started the discount scheme in major cities in Luzon.
     Petron said 11 stations in Visayas and Mindanao will start offering the diesel discount tomorrow.
     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.
     Stations in the Visayas and Mindanao that will offer the 0.30 peso/liter discount are located in major urban areas, including Cebu, Bacolod, Iloilo, Tacloban, General Santos City, Davao City and Zamboanga.
     (1 usd = 56.21 pesos)
     cecille.yap@afxasia.com

Toyota Motor Philippines signs lease agreement with Aichi Forging

     MANILA (AFX-ASIA) - Toyota Motor Philippines Corp said Southeast Asia's largest forging company Aichi Forging Company of Asia Inc (AFC), which is expanding its manufacturing operations to the Philippines, has become the newest tenant at Toyota's Special Economic Zone located in the province of Laguna.
     The Japan-based AFC, which produces metal casings for transmission gears and shafts for Toyota and others, signed a supplementary agreement with the automotive assembler today.
     Located in Toyota's economic zone, AFC will further expand its capability to produce Toyota's metal forging requirements for propeller and axle units in Thailand and Indonesia.
     This will boost AFC's revenues to 26 mln usd by 2006 and generate more employment, the company said, adding that AFC intends to invest 208 mln in 2004 and 50 mln in 2005 to double its production capacity.
     "This kind of partnership makes the cluster for transmission and drive train manufacturers in the Philippines stronger and more competitive in the world market," Toyota Motor Philippines president Nobuharu Tabata said.
     In 2003, exports of companies located inside the Toyota zone totaled 126 mln usd. The figure is projected to grow to 163 mln usd by 2006.
     (1 usd = 56.21 pesos)
     cecille.yap`afxasia.com

First Philippine Holdings to list additional 31,375 shares March 4 - PSE

     MANILA (AFX-ASIA) - First Philippine Holdings Corp will list an additional 31,375 common shares tomorrow to cover shares availed of under its employee stock purchase plan, a Philippine Stock Exchange circular said.
     First Philippine Holdings closed today up 0.25 peso at 23.75.
     (1 usd = 56.21 pesos)
     edelacruz@afxasia.com

San Miguel Brewery Hong Kong reports 2003 EBITDA 59.5 mln hkd

     MANILA (AFX-ASIA) - San Miguel Brewery Hong Kong Ltd posted earnings before interest, taxes, depreciation and amortization (EBITDA) of 59.5 mln usd for the full year to Dec 2003.
     The unit of San Miguel Corp, the Philippines' largest food and beverage conglomerate, did not provide comparative figure in a disclosure to the Philippine Stock Exchange.
     The Hong Kong unit's 2003 revenue came in at 1.16 bln hkd, down 13 pct from 2002 due to the adverse impact of the SARS outbreak in the first half and a "purposive drive" to cut trade receivables, which fell by 75.4 mln hkd.
     "The shift towards the low-priced segment of the beer market in Hong Kong also affected top-line sales, resulting in net loss of 32.8 mln usd, or 216.7 mln pesos," San Miguel Corp said in the disclosure.
     San Miguel said the South China operations of its Hong Kong unit reported an operating profit for 2003, a major improvement over 2002. Improved sales and distribution systems succeeded in growing volumes in key areas in that region, it added.
     "While 2003 was a difficult year, the company remains committed to consolidating its position in the Pearl River Delta region and ensuring that San Miguel stays the preeminent beer brand there," San Miguel said.
     cecille.yap@afxasia.com

Manila shares close weaker on political, economic concerns

     MANILA (AFX-ASIA) - Share prices closed weaker as some investors locked in gains and others stayed on the sidelines to await the Supreme Court's ruling on petitions to disqualify opposition candidate Fernando Poe Jr from the May 10 presidential polls, dealers said.
     Concerns that the citizenship issue against Poe will drag on emerged after the Philippine Daily Inquirer reported, citing court sources, that the justices may vote later today to refer the disqualification case to a lower court.
     The prospects of a US interest rates hike, which triggered losses on Wall Street overnight, also undermined sentiment as such a move may force the Philippine central bank to raise key interest rates, dealers added.
     The composite index closed down 14.02 points, or 0.95 pct, at 1,463.00 on volume of 430.6 mln shares worth 508.4 mln pesos. It traded between 1,461.60 and 1,475.87.
     In the broader market, losers led gainers 22 to 10, while 44 stocks were unchanged.
     Financial markets fear Poe's disqualification may prompt his supporters to launch violent protests.
     However, a possible Poe victory in the polls also worries investors on prevailing doubts over his ability to run the country and manage the economy.
     "Trading was lethargic with the market extending a downward bias ahead of the Supreme Court decision and in the absence of significant leads," ATR-Kim Eng Securities research head Andrew Long said.
     "The market was weak on extended profit-taking and some investors chose to stay on the sidelines because of political uncertainties," DA Market Securities president Nestor Aguila said.
     The market shrugged off news that incumbent Gloria Arroyo, heavily favored by financial markets, had overtaken Poe in the latest pre-presidential election survey conducted by the respected pollster Social Weather Stations (SWS).
     "The market is really more concerned about the decision of the Supreme Court over Poe's citizenship and eligibility to run as president and how his supporters will react to it," Aguila said.
     Petitioners seeking to disqualify Poe from the presidential race argue that he is not a natural born Filipino citizen, being an illegitimate child of a Filipino father and an American mother.
     Meanwhile, the SWS survey, conducted during Feb 17-25 and covering 1,200 respondents nationwide, showed 31.8 pct for Arroyo and 30.5 pct for Poe, a high-school dropout.
     The results seem to mirror that of another respected pollster, Pulse Asia, which showed Arroyo already ahead of Poe by a slight margin at 31.9 pct to 31.7 pct.
     However, a possible Poe victory in the polls also worries investors on prevailing doubts over his ability to run the country and manage the economy.
     Top-traded Philippine Long Distance Telephone (PLDT) was down 20.00 pesos at 930.00 on 171,730 shares.
     Ayala Land was down 0.10 at 5.40 and parent Ayala Corp down 0.20 at 5.90.
     Globe Telecom was down 5.00 at 865.00.
     PLDT affiliate Pilipino Telephone was down 0.04 to 1.46 after announcing yesterday that its net loss narrowed to 3.35 bln pesos in the full year to Dec 2003, from the previous 21.83 bln, on gains in the wireless business.
     "The performance is an improvement, but it is still a net loss," Regina Capital Development analyst Gomer Tan said.
     The all-shares index was down 4.80 points at 936.41.
     The commercial-industrial index fell 25.19 to 2,268.66.
     Property dropped 3.51 to 528.90.
     Mining was up 2.37 at 1,492.69.
     Earlier, Economic Planning Secretary Romulo Neri announced government plans to inject capital of about 500 mln pesos to revitalize the mining sector and transform it into a major source of foreign exchange.
     He said there is a consensus in Arroyo's cabinet to push for a capital injection into the mining industry, through the operations of the Natural Resource Management Development Corp in the Diwalwal mining site.
     Oil was unchanged at 1.25.
     Banking and financial services shed 2.15 to 434.66.
     (1 usd = 56.21 pesos)
     edelacruz@afxasia.com

Philippines ICTSI appoints former JP Morgan executive as financial officer

     MANILA (AFX-ASIA) - International port operator International Container Terminal Services Inc (ICTSI) said it has appointed Martin O'Neil as its senior financial advisor and chief financial officer of unit ICTSI Ltd.
     He assumes responsibilities previously held by Noel Mirasol, who is retiring.
     O'Neil was formerly a managing director of JP Morgan & Co, where he was active in a wide range of financing and advisory activities in New York, Hong Kong and London.
     He was also a director of JP Morgan Capital Corp, the company's private equity investment arm, and in this capacity, was previously involved with ICTSI.
     afxmanila@afxasia.com

Philippines' Aboitiz Equity unit wins partial award in arbitration case

     MANILA (AFX-ASIA) - Aboitiz Equity Ventures said 50 pct-owned unit Luzon Hydro Corp (LHC) has won a partial award in an international arbitration case against contractor Transfield Philippines Inc (TPI) over the design, construction and commissioning of a hydroelectric power station in Bakun on the main island of Luzon.
     It said LHC has been successful in certain claims related to the design and construction of the Bakun project in the context of best international engineering standards and practises. No details were provided in a disclosure to the stock exchange.
     "However, the ICC (Internal Court of Arbitration) also found that TPI is entitled to an extension of time for the completion of the Bakun project," Aboitiz Equity said.
     The tribunal also ruled that TPI is entitled to certain acceleration costs and return of funds LHC may have drawn as security.
     "All other issues, including any issues as to quantum and costs, are reserved to a future award by the tribunal," Aboitiz Equity said.
     cecille.yap@afxasia.com

Philippines' Crown Equities cedes control of Hopewell Crown

     MANILA (AFX-ASIA) - Crown Equities Inc said it has ceded control of Hopewell Crown Infrastructure Inc to Northeast Development Acquisition Corp.
     The two parties yesterday completed the execution of the memorandum of agreement they entered into on Feb 24.
     Crown Equities, which has interests in infrastructure, property and healthcare, gave no other details in its disclosure to the stock exchange.
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' PLDT weaker on profit-taking

     (Repeating to fix typo in headline)
     MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) was weaker mid-session with the market on a profit-taking push due to prevailing pre-election political uncertainties and Wall Street's losses overnight, dealers said.
     PLDT was top-traded so far and down 15 pesos at 935 on 88,210 shares. Trades in the counter accounted for 56 pct of the market's total turnover.
     Its American Depositary Receipts fell 0.26 usd to 17.06 in New York last night, but were still ahead of its share price in Manila.
     (1 usd = 56.23 pesos)
     edelacruz@afxasia.com

STOCK ALERT - First Philippine Holdings firmer on higher earnings prospects

     MANILA (AFX-ASIA) - First Philippine Holdings was slightly firmer, bucking the market's decline, on expectations of continued profitability for the firm's as demand for electricity surges alongside a recovering economy, dealers said.
     First Holdings extended gains made in the previous days to be up 0.25 pesos at 23.75 on volume 19,000 shares.
     Dealers said the company's fundamentals remain good, given that it has a strong potential to improve earnings further if it starts using additional electricity the Malampaya gas-to-power project produces in southern Philippines.
     Unit First Gas Power Corp currently operates two gas-fired power plants in the province of Batangas and supplies a major portion of the electricity distributed in metropolitan Manila through associate Manila Electric Co.
     First Gas has long been planning to acquire the 600-megawatt Sucat power plant of National Power Corp in Manila with plans to make it the principal user of natural gas transmitted through a projected 100-kilometer pipeline between Batangas and Manila.
     A forecast increase in electricity demand and expectations of a looming power shortage should augur well for First Holdings, dealers said.
     (1 usd = 56.21 pesos)
     cecille.yap@afxasia.com

Manila shares weaker mid-session on profit-taking, pre-poll caution

     MANILA (AFX-ASIA) - Share prices were weaker mid-session as investors continued to take profit amid persisting caution ahead of the Supreme Court's verdict on petitions seeking to disqualify opposition presidential candidate Fernando Poe Jr from the May 10 polls, dealers said.
     Losses on Wall Street overnight on concerns that US interest rates may rise also undermined sentiment, they added.
     At 10.32 am, the composite index was down 8.08 points, or 0.55 pct, at 1, 468.94 on volume of 229.8 mln shares worth 108.6 mln pesos. It has traded between 1,466.31 and 1,475.87 so far.
     In the broader market, losers were leading gainers 10 to six, while 23 stocks were unchanged.
     "The market is weak on extended profit-taking and some investors have chosen to stay on the sidelines because of political uncertainties," DA Market Securities president Nestor Aguila said.
     He said the market has shrugged off news that incumbent Gloria Arroyo, heavily favored in financial markets, has overtaken Poe in the latest pre-presidential election survey conducted by the respected pollster Social Weather Stations.
     "The market is really more concerned about the decision of the Supreme Court on Poe's citizenship and eligibility to run as president and how the public will react to it," Aguila said.
     (1 usd = 56.23 pesos)
     edelacruz@afxasia.com

STOCK ALERT - Philippines' Piltel lower early after 2003 net loss

     MANILA (AFX-ASIA) - Pilipino Telephone Corp was slightly lower in early trade, even as the company said it had dramatically narrowed its net loss last year to 3.35 bln pesos compared with a 21.83 bln net loss in 2002.
     Piltel was down 0.04 pesos or 2.67 pct at 1.46 on 450,000 shares.
     "The performance is an improvement, but it is still a net loss," Regina Capital Development analyst Gomer Tan said.
     Dealers added that Piltel's early decline was in line with the market's generally bearish mood, with investors either sidelined or locking in profits as they await developments on the political front.
     "Most stocks are consolidating and Piltel is no exception," Tan added.
     Substantial growth in its wireless business had led to Piltel posting a narrower net loss.
     Its 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.
     The company said it is looking forward to a continued recovery this year. The recovery plan it had earlier submitted to the stock exchange showed it expects to return to profitability this year, with net profit forecast to come in at 402.4 mln pesos.
     (1 usd = 56.22 pesos)
     cecille.yap@afxasia.com

Philippine Government plans to inject capital into mining sector - Neri

     MANILA (AFX-ASIA) - The government plans to inject capital of about 500 mln pesos to revitalize the mining sector and transform it into a major source of foreign exchange, Economic Planning Secretary Romulo Neri said.
     Neri said there is a consensus in President Gloria Arroyo's cabinet to push for a capital injection into the mining industry, through the operations of the Natural Resource Management Development Corp in the Diwalwal mining site.
     "The national government can jump-start mining operations through local capital," he said
     "Mining is a very good way to boost the international reserves. What can be done is to put in an additional 500 mln pesos to allow larger scale operations to happen in Diwalwal."
     The plan also includes the listing of Diwalwal on the local stock market as soon as ownership disputes between small owners and three contending parties are resolved, he said.
     Neri said proceeds from an initial public offering for Diwalwal will help to finance wide-scale mining operations.
     The move to revitalize the sector comes days after Supreme Court voided certain provisions of the Philippine Mining Act of 1995, which allows 100 pct foreign-owned companies to exploit the country's mineral resources.
     The High Court struck down as unconstitutional portions of the mining law pertaining to so-called financial and technical assistance agreements (FTAA), or service contracts with foreign-owned firms.
     A service contract is a concession within which the government or any agency or private person granted a right to exploit mineral resources authorizes another party to take part in the exercise of such right.
     The court also declared as void the FTAA between the Philippine Government and WMC Philippines, a wholly-owned unit of Australian mining and exploration firm Western Mining Corp Holdings Ltd.
     The 1987 Philippine Constitution prohibits foreigners from exploiting all lands of public domains and other natural resources the State owns, the court said.
     (1 usd = 56.23 pesos)
     edelacruz@afxasia.com

Philippines' Aboitiz Transport to purchase vessel for 4.5 mln usd

     MANILA (AFX-ASIA) - Aboitiz Transport System (formerly William, Gothong and Aboitiz Inc) said its board of directors has approved the purchase of a vessel, MV Brinkness, from Panama-based Brinkness SA for 4.5 mln usd.
     It gave no other details in its disclosure to the stock exchange.
     edelacruz@afxasia.com

Philippines' Mondragon asks Supreme Court to stop Mimosa bidding

     MANILA (AFX-ASIA) - Mondragon International Philippines Inc said it has filed an "urgent motion" with the Supreme Court, seeking a temporary restraining order against the on-going bidding of Mimosa Leisure Estate being conducted by the government-run Clark Development Corp (CDC).
     Mondragon said it filed the motion together with units Mondragon Leisure and Resorts Corp and Mondragon Securities Corp.
     Mondragon earlier asked CDC to pay up to 470 mln pesos in back rental for the alleged unauthorized use of certain assets at Mimosa Leisure Estate at the former airbase in Pampanga province.
     CDC took over Mimosa in 1998, after Mondragon failed to settle its obligations to CDC, the Philippine Amusement and Gaming Corp and the Bureau of Internal Revenue.
     Mondragon also owes creditors some 7.0 bln pesos.
     Mondragon said CDC has pre-qualified bidders for Mimosa and scheduled the submission and opening of bids.
     Mondragon earlier claimed that its secured creditors, led by Metropolitan Bank and Trust Co (Metrobank), want its unit Mondragon Leisure and Resorts to manage Mimosa.
     (1 usd = 56.23 pesos)
     edelacruz@afxasia.com

Philippines' Cityland posts 162.8 pct yr-on-yr rise in January sales

     MANILA (AFX-ASIA) - Cityland Development Corp said its sales in January grew 162.8 pct year-on-year to 41.46 mln pesos from 15.78 mln in the same month last year.
     Meanwhile, unit City & Land Developers Inc reported that January sales fell 46.3 pct to 11.73 mln pesos from 21.85 mln last year.
     The sales reports were submitted to the stock exchange in separate disclosures.
     (1 usd = 56.23 pesos)
     cecille.yap@afxasia.com

Philippines' Arroyo leads in latest SWS poll; Poe drops to 2nd slot

     MANILA (AFX-ASIA) - President Gloria Arroyo has gained more ground in her bid for re-election, finally overtaking movie star Fernando Poe Jr in the latest survey of respected pollster Social Weather Stations (SWS).
     However, SWS head Mahar Mangahas, reportedly Poe's first cousin, said in today's Manila Standard banner story that the 1.3 pct difference between Arroyo and FPJ (Poe's initials) is "statistically insignificant."
     The SWS survey, which was conducted during Feb 17-25 and covered 1,200 respondents nationwide, showed Arroyo scored 31.8 pct, while Poe, a high-school dropout whose candidacy has spooked financial markets, garnered 30.5 pct.
     In an earlier SWS survey conducted between Jan 28 and Feb 6, Poe maintained a slight lead over Arroyo, with the results showing 37.5 pct of the respondents in favor of the opposition candidate and 28.7 pct US-trained economist Arroyo.
     In previous surveys, Arroyo trailed Poe by a significant margin.
     The latest SWS survey results seem to mirror that of another respected pollster, Pulse Asia, which showed Arroyo, financial markets' favorite, already overtaking Poe in the race by a slight margin. She had 31.9 pct against his 31.7 pct.
     The report said the SWS survey showed former senator and education secretary Raul Roco was at third place with 17.9 pct; former police chief and senator Panfilo Lacson had 11.4 pct; evangelist Eduardo Villanueva had 1.8 pct, while businessman Eddie Gil got nothing.
     The Supreme Court has yet to rule on consolidated petitions seeking to disqualify Poe from the May 10 elections on citizenship grounds.
     But reports said the High Court will rule today on whether or not to allow him to join the race. The Philippine Daily Inquirer said the decision may be announced on Friday.
     Citing court sources speaking on condition of anonimity, the Inquirer said the court may refer the disqualification case against Poe to a lower court.
     Petitioners argued that Poe is not a natural born Filipino citizen, being an illegitimate child of a Filipino father and an American mother and, as such, not qualified to join the presidential race.
     Financial markets are worried Poe's disqualification will lead to violent protests by his supporters, and even to more military uprisings.
     However, a possible Poe victory in the polls also worries investors on doubts about his ability to run the country and manage the economy.
     edelacruz@afxasia.com