|
|
Philippines' Atok-Big Wedge 2003 net loss 2.56 mln pesos vs loss
1.47 mln |
MANILA (AFX-ASIA) - Atok-Big Wedge Company Inc year to Dec 2003
results:
Revenues - 1.19 mln pesos vs 1.99 mln
Expenses - 3.75 mln pesos vs 3.47 mln
Net loss - 2.56 mln pesos vs loss 1.47 mln
Net loss per share - 0.1017 peso vs 0.0583
Atok-Big Wedge, incorporated in 1931 with the primary purpose
of engaging in mining and exploration activities, has been
transformed to a holding firm with interest not just in mining but
real estate, manufacturing, processing, lending and borrowing money.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Manila
shares close marginally weaker on Wall St, rising interest rates |
MANILA (AFX-ASIA) - Share prices
closed marginally weaker, forcing the key index down to a fresh
three-month closing low, after Wall Street's overnight losses,
dealers said.
The market's downside was, however,
limited on bargain-hunting in select stocks.
The composite index closed down for
the eight straight session, falling 0. 67 points, or 0.05 pct, at
1,418.67, on volume of 215.9 mln shares worth 408. 1 mln pesos. It
traded between 1,409.08 and 1,419.34.
It is the index's weakest close
since Dec 18, when it finished at 1,410. 77.
In the broader market, losers beat
gainers 29 to 12, with 32 stocks unchanged.
Rising interest rates, lingering
security worries after last week's Madrid bombings and political
uncertainties ahead of the May 10 presidential and national polls
kept investors sidelined.
Yesterday's rise in Treasury-bill
rates may have also prompted investors to shift to fixed-income
instruments from equities, dealers said.
News that the California Public
Employees' Retirement System, or CalPERS, had postponed for
another month its vote on whether to keep the Philippines on its
list of investment sites did not help much to perk up investor
interest.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Philippine's
Maynilad, creditors discuss 'extra-judicial solution' to debt |
MANILA (AFX-ASIA) - Benpres Holdings
Corp said unit Maynilad Water Services Inc is holding discussions
with its creditors and regulator Metropolitan Waterworks and
Sewerage System (MWSS) to find an "extra-judicial
solution" to Maynilad's debt problem.
Benpres said the discussions are in
line with a recommendation of an arbitration panel, which urged
Maynilad, its foreign and local creditors, and MWSS to find
extra-judicial solutions to their problems.
Benpres wrote to the stock exchange
following a recent newspaper report that Maynilad has proposed to
its creditors a debt-for-equity swap deal to settle some 18 bln
pesos in maturing loans.
Benpres' letter to the exchange is
however not specific about the "extra-judicial solution"
being considered to address Maynilad's debt problems.
"To date, nothing has been
finalized due to the complex nature of the discussions," the
letter states.
Maynilad, which supplies drinkable
water to metropolitan Manila's west zone, is also reportedly
offering board seats to its creditors.
The MWSS is at the top of Maynilad's
list of creditors, as it is owed 8 bln pesos from unpaid
concession fees, the report said.
A Quezon City court earlier granted
Maynilad's petition for debt relief by issuing a stay order
regarding all claims by creditors against the company and its
guarantors.
Maynilad had filed a petition for
corporate rehabilitation in the Quezon City court after the
International Arbitration Court ruled that the water supplier
should pay MWSS 6.77 bln pesos in concession fees.
The arbitration panel also ruled
that Maynilad must maintain its 25-year concession agreement with
MWSS.
The panel also allowed MWSS to draw
on a 120 mln usd performance bond, which Maynilad put up on
winning the concession a few years back.
Benpres guarantees 60 pct of the
bond, while the other 40 pct is guaranteed by its partner in
Maynilad, the Suez/Ondeo group.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com |
| Philippine
poll body disqualifies presidential candidate Eddie Gil |
MANILA (AFX-ASIA) - The Commission
on Elections (Comelec) said it has disqualified Eddie Gil from
joining the May 10 presidential polls.
The poll body said it found merit in
a complaint filed by another presidential candidate, television
evangelist Eduardo Villanueva, that Gil's camp was not capable of
mounting a nationwide campaign and was making a "mockery of
the elections."
Gil, who claims to be a businessman
but whose political background is obscure, was earlier allowed to
join the contest after he fielded a complete slate of senatorial
candidates for his party.
Recent presidential surveys showed
Gil consistently running last.
He had vowed to pay off the
Philippines' huge foreign debt, but was threatened with arrest in
February after he failed to pay hotel bills during a campaign
sortie in the southern Philippines.
Gil said he will appeal the
"very unfair" decision, claiming support from about 30
mln Filipinos who had enjoyed benefits from his private charitable
foundation. "I can't control them if they will launch a
revolution or a rebellion," Gil said over local radio, but
said he will accept a final decision by the Supreme Court on his
case.
Although the presidential race now
appears, based on recent surveys, to be between incumbent Gloria
Arroyo and movie star Fernando Poe Jr, a high-school dropout with
no experience in government service, there are three other
candidat es who refuse to give up.
They are former education secretary
and senator Raul Roco, former police chief Panfilo Lacson, and
evangelist Villanueva.
afxmanila@afxasia.com
|
| Manila
shares extend decline on weak offshore markets |
MANILA (AFX-ASIA) - Share prices
were extending declines in mid-session, mirroring generally
negative sentiment in regional markets this morning following Wall
Street's overnight losses, dealers said.
At 10.47 am, the composite index was
down 7.26 points or 0.51 pct at 1, 412.08 on volume of 120.5 mln
shares worth 177.3 mln pesos. It has traded between 1,409.08 and
1,419.34 so far.
In the broader market, losers beat
gainers 21 to 3, with 26 stocks unchanged.
Bargain-hunting was so far confined
to Ayala Land, dealers said.
Rising interest rates, lingering
security worries after last week's Madrid bombings and political
uncertainties ahead of the May 10 presidential and local polls
kept investors sidelined, they added.
"Wall Street's downturn last
night gave a negative tone to today's trading in the region,"
Westlink Global Equities chairman Rommel Macapagal said.
Yesterday's rise in Treasury bill
rates may also prompt investors to shift to fixed-income
instruments from equities, he added.
News that the California Public
Employees' Retirement System, or CalPERS, postponed for another
month its vote on whether to keep the Philippines on its list of
investment sites did not help perk up buying interest.
At yesterday's auction, meanwhile,
the government allowed the 91-day and 182-day Treasury bill rates
to rise significantly on partial awards, but rejected high bids
for 364-day bills.
Pre-election political jitters are
pushing interest rates higher, treasury officials said.
The 91-day rate, which banks use as
benchmark in pricing loans, averaged 7.616 pct compared with 6.435
pct previously.
Market support is seen at
1,400-point level.
Top-traded Philippine Long Distance
Telephone Co (PLDT) was down 5.00 pesos at 895 on 59,820 shares.
While its ADRs advanced 0.19 usd to
15.90 in New York last night, PLDT's price on the local bourse was
still higher, Westlink's Macapagal said.
Ayala Land was up 0.10 at 5.20.
First Philippine Holdings was down
1.25 at 20.50.
Filinvest Land was down 0.02 at
1.00.
PLDT affiliate Pilipino Telephone
was down 0.02 at 1.66.
Bank of Philippine Islands was down
0.50 at 44.50.
Jollibee Foods was down 0.25 at
16.75.
afxmanila@afxasia.com
|
| STOCK
ALERT - Philippines' PLDT weaker, tracking ADRs |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) was weaker in early trade, moving
closer to the price of its Asian Depositary Receipts in New York,
dealers said.
PLDT was top-traded and down 10.00
pesos at 890.00 on 28,100 shares.
While its ADRs advanced 0.19 usd to
15.90 last night, PLDT's price on the local bourse was still
higher, Westlink Global Equities chairman Rommel Macapagal added.
He also noted that the general
sentiment today on the local bourse and in regional markets is
negative following Wall Street's losses overnight.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Philippine
end-Jan unemployment rate 11.0 pct vs 10.6 pct yr-ago |
MANILA (AFX-ASIA) - The unemployment
rate in January rose to 11.0 pct from 10.6 pct a year ago, the
National Statistics Office (NSO).
In absolute terms, some 3.9 mln of
the country's workers were unemployed as of January, compared with
3.56 mln a year ago, the NSO said in a statement.
As of end-January 11.1 mln persons
were employed in agriculture, 5.0 mln in the industrial sector and
15.3 mln in the services sector.
The labor force participation rate
was estimated at 67.2 pct, or 35.4 mln workers, at end-January
against 65.7 pct, or 33.68 mln workers, a year ago.
afxmanila@afxasia.com
|
| CalPERS
postpones decision on Philippines for another 30 days |
MANILA (AFX-ASIA) - The California
Public Employees' Retirement System (CalPERS) has decided to
postpone until April its vote on whether to keep the Philippines
on its list permissible investment sites, the Philippine
government's Investor Relations Office (IRO) said.
"The CalPERS board unanimously
gave the Philippines another 30-day extension," the IRO said.
Last month, CalPERS gave the
Philippines 30 days to work with its consultant, Wilshire
Consulting, to include the country' most recent data on the
financial market and labor reforms in the review.
The inclusion is expected to help
improve the Philippines' score as an investment site, Manila
authorities earlier said.
Wilshire had given the Philippines
failing marks for the third straight year even after the one-year
"cure period" given to the country's authorities.
Investors in Philippine equities are
awaiting CalPERS' decision as this may force institutional
investors to dump local stocks.
Wilshire, in its latest assessment,
had given the Philippines a total score of 1.86, better than last
year's 1.46, but below the cut-off of 2.0 for CalPERS' qualified
investments sites.
The country was given low scores in
areas of market practises and business conduct. The government
argued that Wilshire based its recommendation on inaccurate data.
In its report to CalPERS, Wilshire
cited the Philippines' failure to have its name removed from the
Paris-based Financial Action Task Force's blacklist of countries
deemed to be uncooperative in the fight against money laundering.
CalPERS manages assets of over 100
bln usd, including about 1.8 bln invested in emerging markets,
such as the Philippines.
afxmanila@afxasia.com
|
| Manila
shares outlook - Mixed on bargain-hunting, interest rate worries |
MANILA (AFX-ASIA) - Share prices are
expected to open mixed with bargain-hunters possibly re-entering
the market after seven straight sessions of declines and worries
over rising interest rates undermining sentiment.
Investors will remain sidelined amid
lingering security worries after last week's Madrid bombings and
political uncertainties ahead of the May 10 presidential and local
polls, they added.
Meanwhile, the California Public
Employees' Retirement System, or CalPERS, has reportedly decided
to postpone for another month its decision on whether to keep the
Philippines on its list of investment sites. CalPERS consultant
Wilshire Consulting has given the Philippines failing grades as an
investment site.
The composite index closed yesterday
down 4.45 points, or 0.31 pct, at 1, 419.34, its lowest finish
since mid-December.
"There may be some
bargain-hunting, but rising interest rates may also weaken
sentiment," Citiseconline.com analyst Mark Alan Canizares
said.
The government allowed the 91-day
and 182-day Treasury bill rates to rise significantly on partial
awards at yesterday's auction, but rejected all tenders for
364-day bills.
Pre-election political jitters are
pushing interest rates higher, treasury officials said.
The 91-day rate, which banks use as
benchmark in pricing loans, averaged 7.616 pct compared with 6.435
pct previously.
Market support is seen at
1,400-point level.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippines'
PBCom sees 200 mln-1.0 bln pesos annual net profit from this yr |
MANILA (AFX-ASIA) - Philippine Bank
of Communications (PBCom) said it expects to post annual net
profit of between 200 mln and 1.0 bln pesos starting this year
after signing a 7.6 bln pesos financial assistance deal with
state-run Philippine Deposit Insurance Corp (PDIC) yesterday.
The Philippine Daily Inquirer
reported that the money from PDIC will be invested in high-yield
government securities to cushion the transfer of PBCom's
non-performing loans into a special purpose asset vehicle (SPAV).
The bank reported a nine months to
Sept 2003 net loss of 85.35 mln pesos, against a net profit of
281.8 mln pesos a year earlier.
The agreement with PDIC involves the
establishment of a SPAV through which PBCom's non-performing
assets will be sold.
The PDIC assistance will give the
bank support to cover losses arising from the sale of idle assets
at substantial discounts of as much as 80 pct of their market
value.
Major PBCom shareholders, the Luy,
Nubla and Chung families, have also increased the bank's capital
by 3.0 bln pesos.
Earlier reports said the loan will
entitle PDIC to four seats on the PBCom's board. The loan's annual
interest rate will be 1.0 pct over a 10-year period.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippines'
Cityland Feb sales surge 487 pct to 155.07 mln pesos |
MANILA (AFX-ASIA) - Cityland
Development Corp said its sales in February jumped 487.4 pct to
155.07 mln pesos from 26.4 mln a year earlier.
Meanwhile, unit City & Land
Developers Inc reported that February sales rose 100.2 pct to
32.89 mln pesos from 16.43 mln a year ago.
The sales reports were submitted to
the stock exchange in separate disclosures. No other details were
given.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com |
| Philippine
banks end-Jan loans up 0.8 pct yr/yr, slower than Dec's 3.8 pct |
MANILA (AFX-ASIA) - Commercial
banks' outstanding loans rose a marginal 0. 8 pct year-on-year to
1.45 trln pesos as of end-Jan 2004, slower than the 3.8 pct rise
in Dec 2003, the central bank said.
The central bank said there was
lower bank lending to the manufacturing sector, which accounted
for about 24.4 pct of total commercial bank loans outstanding as
of end-January.
However, it noted in a statement
continued increased bank lending to such sectors as community,
social and personal services; transportation, storage and
communication; and agriculture, fisheries and forestry.
These sectors accounted for 30.5 pct
of total loans outstanding as of end-January, the central bank
said.
Despite the slowdown, it said the
growth in bank lending contributed to the sustained, albeit
modest, growth in domestic liquidity or M3 of 4.1 pct in January.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippines'
Jan OFW remittances 618 mln usd, down 5.9 pct yr-on-yr |
MANILA (AFX-ASIA) - Remittances from
overseas Filipino workers (OFWs) reached 618 mln usd in January,
down 5.9 pct from 657 mln in Jan 2003, central bank managing
director Diwa Guinigundo said.
OFWs withheld dollar remittances, on
expectations of a much weaker peso due to prevailing politicial
uncertainty in the months ahead of the election.
The fall in remittances was despite
a 23.3 pct year-on-year improvement in OFW deployment, Guinigundo
said.
OFW remittances in 2003 rose 6.3 pct
to 7.6 bln usd from 7.2 bln in the previous year.
For 2004, OFW remittances are
projected to rise by 3.0 pct to 7.8 bln usd, the central bank
said.
The US, Saudi Arabia, Japan, the UK,
Hong Kong, Singapore and the United Arab Emirates remain the major
sources of OFW remittances.
(1 usd = 56.30 pesos)
cecille.yap@afxasia.com
|
| Philippines'
PLDT names JP Morgan as adviser for Piltel's debt restructuring |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) has chosen investment bank JP Morgan
Chase as financial advisor for the restructuring of affiliate
Pilipino Telephone Corp's (Piltel) debts of 22.5 bln pesos.
Sources said JP Morgan Chase had
drafted several options to restructure Piltel's obligations and
these were presented to creditors at a meeting on March 11. Two of
the proposals were said to be acceptable to creditors.
In a disclosure to the stock
exchange, PLDT said Piltel's debt restructuring may involve its
profitable wireless unit Smart Communications Inc.
"Smart has been studying
various options regarding Piltel's indebtedness and this ongoing
dialogue with certain creditors has enabled Smart to continue
modifying and refining these various options," PLDT said.
Smart plans to present a proposal
soon, it added.
The Philippine Daily Inquirer
newspaper today reported that PLDT has offered to pay Piltel
creditors with long-term sovereign dollar bonds.
PLDT owns a 45 pct stake in Piltel.
The report said PLDT has also asked
creditors to consider swapping the outstanding Piltel debt for a
10-year obligation of Smart, fuelling speculation of an eventual
Smart-Piltel merger.
Smart is required to offer some of
its shares to the public not later than August this year.
Meanwhile, sources said the proposal
to issue Piltel creditors with long-term sovereign bonds involves
Philippine debt papers with a 15-year maturity and a fixed
interest coupon of 2.25 pct per annum "for each dollar
equivalent of the debt."
The second option of converting the
debts into Smart's 10-year obligations will involve an annual
interest rate of 2.5 pct payable semi-annually.
These two proposals are said to be
acceptable to creditors as these will not mean losses for banks.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Philippine
Airlines to launch Las Vegas flight tomorrow |
MANILA (AFX-ASIA) - Philippine
Airlines (PAL) will expand its flight services to the US with the
flag carrier's inaugural flight to Las Vegas, Nevada tomorrow.
PAL president and chief operating
officer Avelino Zapanta said its foray to Las Vegas via Vancouver,
Canada, is a major step in the airlines' goal towards full
rehabilitation.
"For the first time in seven
years, PAL now flies to a point beyond the West Coast of North
America, giving us a wider presence in the US, our most important
market," Zapanta said.
PAL's maiden flight to Las Vegas,
PR106 will depart Manila's international airport at 4.40 pm
tomorrow, with all 264 seats of Airbus A340-300 taken.
Joining the inaugural flight are top
officials of the flag carrier, led by Zapanta, executive vice
president Henry So Uy and officer-in-charge of sales Enrique
Javier. Foreign affairs undersecretary Franklin Ebdalin and
Tourism undersecretary Evelyn Pantig will also join the flight
together with representatives from the local travel trade and
tourism industry.
Meanwhile, PAL reported a profit of
555 mln pesos in January, which the airline said
"vastly" exceeded expectations. It did not elaborate.
Las Vegas is PAL's fifth US
destination after Los Angeles, San Francisco, Honolulu and Guam,
and its 24th international flight. Locally, PAL flies to 18
destinations in the Philippines.
PAL's service to Las Vegas will
operate four times a week, with departures from Manila every
Tuesday, Thursday, Saturday and Sunday at 4.40 pm. Arrival in
Vancouver and Las Vegas is at 12.45 pm and 4.40 pm, respectively.
(1 usd = 56.28 pesos)
cecille.yap@afxasia.com
|
| Philippine
91-day, 182-day T-bill rates jump; 364-day bids rejected |
MANILA (AFX-ASIA) - The government
allowed the 91-day and 182-day Treasury bill rates to rise
significantly on partial awards at today's auction, but rejected
all tenders for 364-day bills.
"We're just aligning (the
91-day and 182-day rates) with secondary market rates. For the
one-year bills however the (offered) rates were very far from the
swap market rate, which is below 9.0 pct," national treasurer
Mina Fegueroa said after the auction.
The government decided to accept
some of today's tenders after fully rejecting bids at the March 1
auction.
The 91-day rate, which banks use as
benchmark in pricing loans, averaged 7.616 pct compared with 6.435
pct previously. The auction committee accepted 1.83 bln pesos of
tenders totalling 2.255 bln against an offering of 3.5 bln.
The 182-day rate averaged 8.612 pct
against the previous average of 7.834 pct, with the government
accepting 1.15 bln pesos of tenders reaching 1.695 bln. The
offering was 2.5 bln pesos.
Bids for the 364-day bills ranged
from a low of 9.23 pct to as high as 9. 75 pct compared with the
previous average of 8.384 pct. Tenders totalled 2. 352 bln pesos
against an offering of 2.0 bln.
The Bureau of Treasury has reduced
the volume of its regular T-bill offerings to 8.0 bln pesos from
11 bln, and has begun issuing 42-day T-bills worth 4.0 bln pesos
in each of the two auctions set for this month.
The move was in response to the
prevailing market appetite for short-term instruments, with
auction participants playing it safe amid political uncertainties
ahead of the May 10 presidential elections and the peso's weakness
against the US dollar.
Figueroa said the offered rates are
rising as the election day draws near.
"But hopefully we've seen the
worst," she said.
She maintained that the government's
cash position remains "healthy" especially after having
raised 500 mln usd via a global bond issue last week.
The government has some 4.0 bln
pesos in maturing loans this week, she said.
The government will offer 3.0 bln
pesos worth of four-year Treasury bonds at tomorrow's auction.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Philippines'
PLDT says Smart to present proposal to Piltel creditors soon |
MANILA (AFX-ASIA) - Philippine Long
Distance Telephone Co (PLDT) said its wireless unit Smart
Communications will soon present a proposal to creditors of
Pilipino Telephone Corp (Piltel) regarding the settlement of the
latter's debts.
PLDT wrote to the Philippine Stock
Exchange to clarify a newspaper report today that PLDT has offered
to pay Piltel creditors with long-term sovereign dollar bonds.
The Philippine Daily Inquirer added,
citing an unidentified source, that PLDT also asked creditors to
consider swapping the outstanding Piltel debt into a 10-year
obligation of its profitable wireless unit Smart.
PLDT owns a 45 pct stake in Piltel,
which has reportedly about 22.5 bln pesos in outstanding debts.
There has been persistent
speculation on the local stock market that Smart will merge with
Piltel, which will facilitate Smart's backdoor listing.
Smart is required to offer some of
its shares to the public not later than August this year.
"We confirm that last March 11,
Smart Communications met with certain creditors of Piltel and
presented them with various options regarding Piltel's
indebtedness," PLDT told the stock exchange.
"As previously disclosed, Smart
has been studying various options regarding Piltel's indebtedness
and this ongoing dialogue with certain creditors of Piltel has
enabled Smart to continue modifying and refining these various
options."
PLDT said Smart aims to present a
proposal soon, but did not elaborate.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Manila
shares close weaker; key index at lowest since mid-December |
MANILA (AFX-ASIA) - Share prices
closed weaker for the seventh straight session, giving back early
technical gains, with the key index at its lowest level since
mid-December as losses in select blue chips weighed on the market,
dealers said.
Gains in some blue chips, including
Philippine Long Distance Telephone Co (PLDT), limited the market's
downside, offsetting losses in property developer Ayala Land and
Manila Electric Co (Meralco).
Investors remained largely sidelined
in the absence of positive leads as they await more 2003 corporate
results. Lingering security and pre-election political worries
also undermined sentiment.
The composite index closed down 4.45
points, or 0.31 pct, at the day's low of 1,419.34 on volume of
137.19 mln shares worth 578.5 mln pesos. It traded at a high of
1,434.50.
It is also the index's weakest close
since Dec 18, when it finished at 1, 410.77
In the broader market, losers led
gainers 25 to 17, while 27 stocks were unchanged.
Analysts said the bombings in the
Spanish capital of Madrid last week remain fresh in the minds of
investors, while political uncertainties related to the May 10
presidential elections in the Philippines continue to take a toll
on sentiment.
Investors are also awaiting Monday's
decision of the investment committee of the California Public
Employees' Retirement System (CalPERS) in the US, on whether to
keep the Philippines on its list of permissible investment sites.
CalPERS consultant Wilshire
Consulting has given the Philippines failing grades as an
investment site.
"The market erased early gains
on selling in Meralco," AB Capital Securities research head
Jose Vistan Jr said.
"Investors may have decided to
move out of Meralco ahead of its 2003 earnings report,"
Citiseconline.com analyst Mark Alan Canizares said.
Meralco B, available to foreign
investors, was down 2.00 pesos at 28.50 on 981,100 shares, while
Meralco A dropped 0.75 to 18.25 shares.
Meralco officials said the 2003
results will be released anytime soon.
The power distributor earlier said
extraordinary provisions for contingent liabilities may have
pulled its 2003 net profit below its 1 bln peso target.
It booked a 2 bln peso net loss 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 the market is also
waiting for the Supreme Court's decision on Meralco's suspended
0.12 peso per kilowatthour rate hike.
Early in the session, the market
staged a technical bounce following last week's successive
declines, with the US market's recovery last Friday also helping
provide the direction.
But the gains proved to be
unsustainable given lingering security and political concerns, and
amid a seasonally sluggish trade.
"March is traditionally a weak
month for the stock market. And we're also approaching the Easter
holidays, so what we can expect for now is more of sideways
trading with sentiment still bearish," Unicapital Securities
research head Elena Ponceca said.
PLDT was top-traded and up 10 pesos
at 900 on 247,830 shares, on technical bounce following recent
falls.
Pilipino Telephone (Piltel) rose
0.06 to 1.68 on 30.4 mln shares following a newspaper report that
PLDT has offered to pay Piltel creditors with long-term sovereign
dollar bonds.
The report, citing an unidentified
source, said PLDT has also asked creditors to consider swapping
the outstanding Piltel debt into a 10-year obligation of
profitable unit Smart Communications Inc.
PLDT owns a 45 pct stake in Piltel,
which has reportedly about 22.5 bln pesos in outstanding debts.
"If the report is true, PLDT's
move will ease debt concerns involving Piltel. Swapping Piltel's
debt with those of Smart also bolsters merger speculation between
the two firms," Regina Capital Development Corp analyst Gomer
Tan said.
Smart is required to offer some of
its shares to the public not later than August this year.
Ayala Land was down 0.20 at 5.10 on
6.8 mln shares.
PLDT rival Globe Telecom rose 10 to
850.
Jollibee Foods was down 0.50 at 17.
Bank of the Philippine Islands was
up 1.00 at 45.
The all-shares index was up 0.50
points at 904.62.
The commercial-industrial index fell
5.44 to 2,208.91.
Property was down 10.46 at 501.66.
Mining retreated 13.02 to 1,458.60.
Oil was unchanged at 1.20.
Banking and financial services
advanced 3.58 to 428.29.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Philippines'
PBCom to sign 7.6 bln pesos financial assistance deal with PDIC |
MANILA (AFX-ASIA) - Philippine Bank
of Communications (PBCom) said it will sign today a 7.6 bln pesos
financial assistance deal with state-run Philippine Deposit
Insurance Corp (PDIC).
The bank said the agreement also
involves the establishment of a special purpose asset vehicle (SPAV)
through which PBCom's non-performing assets will be sold.
The PDIC assistance will provide the
bank support to cover losses arising from the sale of idle assets
at substantial discounts of as much as 80 pct of their market
value.
Major PBCom shareholders, the Luy,
Nubla and Chung families, have also increased the bank's capital
by 3.0 bln pesos.
"With their business plans, the
substantial capital infusion and the financial enhancement through
SPAV arrangement, it is projected that it will become one of the
strongest and highest capitalized commercial banks with sustained
and improved profitability moving forward," PBCom told the
stock exchange.
Earlier reports said the loan will
entitle PDIC to four seats on the PBCom's board. The loan's annual
interest rate will be 1.0 pct over a 10-year period.
The planned capital injection comes
after the bank reported a nine months to Sept 2003 net loss of
85.35 mln pesos, against a net profit of 281.8 mln pesos a year
earlier.
(1 usd = 56.279 pesos)
cecille.yap@afxasia.com
|
| Manila
shares rebound on Wall Street gains |
MANILA (AFX-ASIA) - Share prices
were firmer in thin trade mid-session, rebounding from oversold
levels, following Wall Street's gains on Friday, dealers said.
Some oversold stocks were attracting
bargain-hunters, although lingering security and pre-election
political worries capped the market's upside, they added.
Investors were largely sidelined in
the absence of positive local leads.
At 10.48 am, the composite index was
up 7.00 points, or 0.49 pct, at 1, 430.79 on volume of 63.2 mln
shares worth 179.2 mln pesos. It has traded between 1,424.14 and
1,434.50 so far.
In the broader market, gainers led
losers 14 to 10, with 20 stocks unchanged.
"The market has been oversold
following successive falls that saw the key index hit its lowest
close this year. Investors also took the cue from Wall
Street," Regina Capital Development Corp analyst Gomer Tan
said.
Analysts said the bombings in Madrid
last week remain fresh in the minds of investors, while political
uncertainties related to the May 10 presidential elections in the
Philippines continue to weigh on sentiment.
Investors are also awaiting Monday's
decision of the investment committee of the California Public
Employees' Retirement System (CalPERS) in the US, on whether to
keep the Philippines on its list of permissible investment sites.
CalPERS consultant, Wilshire
Consulting, has given the Philippines' failing marks as an
investment site.
Conglomerate Ayala Corp was
top-traded on 7.7 mln shares, but unchanged at 5.80 pesos.
Philippine Long Distance Telephone (PLDT)
was up 15.00 at 905.00.
Pilipino Telephone (Piltel) rose
0.12 to 1.74 on 16.2 mln shares following a newspaper report that
PLDT has offered to pay Piltel creditors with long-term sovereign
dollar bonds.
The report, citing an unidentified
source, said PLDT has also asked creditors to consider swapping
the outstanding Piltel debt into a 10-year obligation of
profitable unit Smart Communications Inc.
PLDT owns a 45 pct stake in Piltel,
which has reportedly about 22.5 bln pesos in outstanding debts.
"If the report is true, PLDT's
move will ease debt concerns involving Piltel. Swapping Piltel's
debt with those of Smart also bolsters merger speculation between
the two firms," Regina Capital's Tan said.
Smart is required to offer some of
its shares to the public not later than August this year.
Mall operator SM Prime was up 0.10
at 5.90.
Ayala Land was down 0.10 at 5.20.
Globe Telecom was up 5.00 at 845.
Bank of the Philippine Islands was
up 1.50 at 45.50.
Mabuhay Vinyl was up 0.02 at 1.18
largely on cross sales.
(1 usd = 56.28 pesos)
afxmanila@afxasia.com
|
| Philippines'
Mondragon postpones meeting to settle row with CDC |
MANILA (AFX-ASIA) - Leisure and
property firm Mondragon International Philippines Inc has
postponed its annual stockholders' meeting to Sept 13 from March
15.
In a disclosure to the stock
exchange, the company said the meeting was rescheduled to give it
enough time to pursue negotiations with government agencies and
prospective investors on the operation of the Mimosa Leisure
Estate in the former Clark airbase in Pampanga province.
Land owner state-run Clark
Development Corp (CDC) took over Mimosa in 1998 after Mondragon
failed to settle its back rentals with CDC as well as other
obligations with the Philippine Amusement and Gaming Corp (Pagcor)
and the Bureau of Internal Revenue (BIR)
Mondragon also owes creditors some
7.0 bln pesos.
"While we have been holding
negotiations with the investors, they have asked for more time in
view of what they call political uncertainty and country
risk," Mondragon said.
CDC has pre-qualified bidders for
Mimosa and scheduled the submission and opening of bids, a move
opposed by Mondragon.
(1 usd = 56.29 pesos)
cecille.yap@afxasia.com
|
| STOCK
ALERT - Bank of the Philippine Islands firmer early on
bargain-hunting |
MANILA (AFX-ASIA) - Bank of the
Philippine Islands was firmer in early trade on bargain-hunting
after recent falls, dealers said.
At 9.50 am, BPI was up 2.00 pesos,
or 4.55 pct, at 46.00 on volume of 86, 700 shares.
The Ayala-led bank has traded lower
in past sessions in line with the overall decline of the market.
It rose to as high as 50.50 pesos
per share in mid-February after reporting a 10 pct growth in its
2003 net profit to 5.7 bln pesos on the back of improved revenue
and lower operating expenses.
The bank expects to improve
profitability at least 5.0 pct this year.
(1 usd = 56.283 pesos)
cecille.yap@afxasia.com
|
| STOCK
ALERT - Philippines' Piltel up on reported PLDT bond offer to
creditors |
MANILA (AFX-ASIA) - Pilipino
Telephone Corp shares were firmer in early trade following a
newspaper report that Philippine Long Distance Telephone Co (PLDT)
has offered to pay Piltel creditors with long-term sovereign
dollar bonds, dealers said.
Piltel was top-traded and up 0.10
peso, or 6.17 pct, at 1.72 on volume of 11.6 mln shares.
The report, citing an unidentified
source, said PLDT has also asked creditors to consider swapping
the outstanding Piltel debt into a 10-year obligation of
profitable unit Smart Communications Inc.
PLDT owns a 45 pct stake in Piltel,
which has reportedly about 22.5 bln pesos in outstanding debts.
"If the report is true, PLDT's
move will ease debt concerns involving Piltel. Swapping Piltel's
debt with those of Smart also bolsters merger speculation between
the two firms," Regina Capital Development Corp analyst Gomer
Tan said.
Smart is required to offer some of
its shares to the public not later than August this year.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippines'
PLDT offers to pay Piltel creditors with dollar bonds |
MANILA (AFX-ASIA) - The Philippine
Long Distance Telephone Co (PLDT) has offered to pay creditors of
Pilipino Telephone Corp (Piltel) with long-term sovereign dollar
bonds, the Philippine Daily Inquirer reported, citing an
unidentified source.
PLDT owns a 45 pct stake in Piltel,
which has reportedly about 22.5 bln pesos in outstanding debts.
The report said PLDT has also asked
creditors to consider swapping the outstanding Piltel debt into a
10-year obligation of its profitable unit Smart Communications
Inc.
There have been persistent
speculation that Smart will merge with Piltel, which will
facilitate Smart's backdoor listing.
Smart is required to offer some of
its shares to the public not later than August this year.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippines'
Maynilad Water offers debt-equity deal to creditors - report |
MANILA (AFX-ASIA) - Maynilad Water
Services Inc has proposed a debt-for-equity swap deal to its
creditors to settle some 18 bln pesos in maturing loans, the
Philippine Daily Inquirer reported, citing unidentified government
sources.
Maynilad is a unit of Benpres
Holdings Corp.
The paper's sources said Maynilad,
which supplies drinking water to metropolitan Manila's west zone,
was also offering board seats to its creditors.
Regulator Metropolitan Waterworks
and Sewerage System is on top of Maynilad's list of creditors with
an exposure of 8 bln pesos representing unpaid concession fees,
the report said.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippine
central bank widens coverage of single borrowers' limit rule |
MANILA (AFX-ASIA) - The central bank
said its Monetary Board has widened the coverage of the single
borrower's limit (SBL) to include commitments or guarantees of
banks on loans of another bank or a non-bank entity, among other
transactions.
The central bank sought to tighten
the SBL rule to prevent credit concentration that may lead to bank
failures.
It will shortly issue a circular on
the tighter SBL rule, which follows the tightening of rules on
bank lending to its directors, officers, stockholders and related
interests, or Dosri.
"SBLs have been strengthened to
achieve more comprehensive coverage on a consolidated basis of
bank exposure to related parties," central bank governor
Rafael Buenaventura said.
Under the new rule, loans, other
credit accommodations, deposits and guarantees by a bank to any
bank or non-bank entity whether located in the Philippines or
abroad will be subject to SBL.
The central bank defines bank
guarantee as "an irrevocable commitment of a bank binding
itself to pay a sum of money in the event of non-performance of a
contract by a third party."
The central bank has also increased
the ceiling for these guarantees to 100 pct of the bank's
qualifying capital from 50 pct of unimpaired capital and surplus.
The total amount of loans, credit
accommodations and guarantees which may granted in addition to the
25 pct SBL will be deducted from the net worth of a bank.
Also under the tighter SBL rule, the
liability of an individual and the corporation where he owns a
majority interest should be combined and subjected to one SBL.
afxmanila@afxasia.com
|
| Manila
shares outlook - Mixed to up on Wall St gains; security concerns
remain |
MANILA (AFX-ASIA) - Share prices are
expected to open mixed to higher as investors look to developments
in overseas markets, particularly Wall Street's gains, for
guidance in the absence of positive leads locally, dealers said.
They, however, may remain largely
sidelined amid pre-election political concerns and ahead of a
meeting of the investment committee of the California Public
Employees' Retirement System, or CalPERS, in the US on Monday.
The committee will decide whether to
keep the Philippines on its list of permissible investment sites.
CalPERS consultant, Wilshire Consulting, has given the
Philippines' failing marks as an investment site.
On Friday, the composite index
closed down 11.28 points or 0.79 pct at 1, 423.79.
"Investors are likely to stay
sidelined given the recent security developments abroad. Already,
the government fears a major terrorist attack may be imminent in
the country and has asked its neighbors for information," BPI
Securities said.
It added that it considers the
market correction as healthy and providing providing opportunities
for investors to accumulate select issues.
"Investors are likely to look
at developments abroad for guidance," said AB Capital
Securities Jose Vistan Jr, adding the security and political
concerns linger.
"The bombings in Madrid are
likely to remain fresh in the minds of investors. Moreover,
political uncertainties related to the upcoming May elections will
continue to weigh on market sentiment," he said.
Support range is at 1,385-1,400
while resistance is at 1,435.
afxmanila@afxasia.com
|
| Philippine
exchange still looks for strategic partners as Arroyo re-elected |
MANILA (AFX-ASIA) - Re-elected
Philippine Stock Exchange (PSE) chairwoman Alicia Morales-Arroyo
said the bourse will continue to look for new strategic partners
amid a row among broker-shareholders over a recent private
placement transaction.
Arroyo was re-elected in last
Saturday's election of PSE directors.
"We have substantially complied
(with the demutualization program of the bourse). If the market is
good for an IPO (initial public offering), we will consider it. We
have six months and that will give us a lot of time to deliberate
and decide on what option to take," Arroyo was quoted as
saying by BusinessWorld newspaper.
The PSE's board of directors has
rejected a request by some shareholders to reconsider the sale of
the local bourse's 40 pct stake to institutional buyers.
Last month, the PSE sold 5.265 mln
shares to the Government Service Insurance System, Philippine Long
Distance Telephone Co Beneficial Trust Fund, San Miguel Retirement
Fund, Kim Eng Investment Ltd, KE Strategic Pte Ltd, A. Soriano
Corporation and Equinox Partners.
The shares, representing a 40 pct
stake, were sold at 119.50 pesos each versus the then market price
of 185.
Protesting shareholders have taken
PSE officials to court.
A regional trial court in Pasig City
has served summons on PSE officials, informing them of next week's
court hearings on the private placement.
PSE brokers opposed to the sale of
shares claim the sale was disadvantageous to existing shareholders
as the shares were purchased at a much lower price, and that the
transaction violated the PSE rule that provides that a sale of up
to 15 pct of the exchange's total assets should require two-thirds
approval of shareholders.
The Securities and Exchange
Commission has mandated the PSE to sell shares either through
private placement or public offering in order to comply with the
ownership limitation provided under the Securities Regulation Code
(SRC).
Under the SRC, no single industry
should own more than 20 pct of the exchange's outstanding shares.
Prior to the sale, the PSE was nearly 100 pct owned by the
stockbrokers.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Philippines'
Uniwide plans to raise 1.0 bln pesos via 15-yr notes issue |
MANILA (AFX-ASIA) - The Uniwide
Group of Companies plans to issue 15-year promissory notes worth
1.0 bln pesos to its unsecured creditors in line with its
rehabilitation program, Securities and Exchange Commission (SEC)
chairwoman Lilia Bautista said.
The notes issuance, which is
expected in the next two months, will help settle part of
Uniwide's more than 2 bln pesos obligations to its unsecured
creditors.
"We welcome the issuance of the
15-year promissory notes as this would accelerate the settlement
of half of the claims of the unsecured creditors, "Bautista
said.
Most of Uniwide unsecured creditors
are trade suppliers, contractors and private lenders of the
company.
Bautista also reported that the SEC
has also approved Uniwide's petition to have the notes exempted
from registration considering that they would be issued by its
receiver in behalf of the company.
"The receiver will issue it and
we ruled that under the Securities Regulation Code, it is an
exempt security because under Section 9, certificates issued by
the receiver or a trustee in bankruptcy approved by an
adjudicatory body is an exempt security so that is the
ruling," she said.
Meanwhile, Bautista said that at
least three of Uniwide's secured creditor banks are still opposed
to the second amended rehabilitation program, under which the
debts would be settled through payment in kind.
These creditor-banks are Allied
Banking Corp, Philippine National Bank and Bank of the Philippine
Island (BPI).
Uniwide Holdings Inc however earlier
said that the Uniwide Group had signed a Memorandum of Agreement
with BPI to use two of its properties in metropolitan Manila as
payment for a loan.
The properties in Avenida and Libis
are sites of Uniwide stores, which the company planned to close by
June 30, after which there will be nine stores left.
The SEC has placed the Uniwide Group
of Companies under receivership and declared it to be in a state
of suspension of payments.
In June 1999, the Uniwide Group
filed a petition with the SEC to suspend payments due to liquidity
problems attributable to persistent losses.
Uniwide is moving to consolidate its
operations into its remaining stores to cut costs and improve its
financial standing under a rehabilitation plan the SEC approved in
2002.
(1 usd = 56.30 pesos)
afxmanila@afxasia.com
|
| Singapore's
stocks to watch Monday |
SINGAPORE (AFX-ASIA) - The following
are overnight news and other AFX-Asia market leads that may
feature in today's trading:
Consumer electronics products maker
Creative Technology may gain after a report said it will sell 65.8
mln of its China's chipmaker Semiconductor Manufacturing
International Corp (SMIC) shares for 179 mln hkd.
Electronics contract manufacturer
Beyonics Technology Ltd may gain after it said its second quarter
to January net profit rose 13.7 pct to 5.18 mln sgd mainly on
contributions from Flairis Group and Pacific Plastics Group, now
known as the Beyonics China Group, which the company acquired.
United Overseas Bank (UOB) may gain
after a report said it is the bank of choice for Singaporeans
buying landed property and condominiums.
Singapore Petroleum Co (SPC) may
gain after DBS Vickers said it has initiated coverage on the
company with a "buy" rating and fair value of 3.50 sgd
as SPC is a proxy to the recovery in the refining industry.
Shares of Midas Holdings Ltd, a
manufacturer of aluminium alloy extrusion products and
polyethylene pipes, may also rise after it said it has secured two
contract worth 5.6 mln sgd from the Siemens Group.
ACCS, which provides after-market
solutions (AMS) for mobile communications devices, may gain after
GK Goh Securities said it has initiated coverage on the company
with a "buy" rating and a fair value of 1. 34 sgd per
share since it has the potential to become an industry leader in
Asia within the next three to five years.
Philippine-based Medtecs
International's shares may fall after it said it may end up not
delivering a portion of the 16.54 mln usd worth of surgical masks
and laboratory gowns that Taiwan ordered last year at the height
of the SARS outbreak.
Logistics company CWT Distribution's
shares may fall after it reported a sharply lower year to Dec 2003
net profit of 997,000 sgd on revenues of 213. 25 mln hkd compared
to a net profit of 3.39 mln on revenues of 208.38 mln in 2002.
(1 usd = 1.71 sgd, 7.8 hkd)
rosana.gulzar@afxasia.com
|
| Philippine
VP formally announces support for opposition presidential
candidate |
GINOOG, Philippines (AFX-ASIA) -
Vice President Teofisto Guingona formally broke with President
Gloria Arroyo Saturday to join the team of rival opposition
presidential candidate Fernando Poe ahead of the May poll.
Guingona announced his support for
movie star Poe at a rally in this southern city, saying he had
made the move because "the nation must change".
"FPJ (Poe's initials) has
invited me to become his adviser on governance and public
policy," Guingona said in a statement released at the rally,
at which he joined Poe and his running mate Senator Loren Legarda
on stage.
"I gave him the essence of a
program of action by our civic movement. He adopted the same and
based on said program, I have humbly accepted to become his
adviser," he said, without giving details of the program.
"I do so mainly because almost
everyone agrees that the nation must change. that the economic
downturn must be reversed," Guingona said.
There is a need to stifle the
"cauldron of corruption," he said, in an apparent
reference to the present government.
Poe invited Guingona to become one
of his advisers in February and the vice president had already
indicated he would accept.
Guingona's defection is the
culmination of growing division between himself and Arroyo over
the past two years.
He quit the Arroyo cabinet nearly
two years ago over differences on national security issues but
stayed on as vice president.
He is in particular critical of the
Arroyo government's close security ties with the US and its
support for economic liberalization.
Popular surveys show that Poe and
Arroyo are neck and neck in the race for the May 10 presidential
elections.
Poe is a high school drop-out with
no experience in government and his candidacy has unnerved the
business community but the movie star has been presenting
prominent figures as his advisers in an attempt to ally such
concerns.
"FPJ asserts that he is his own
man. If so, coupled with the right political will, he can chart a
meaningful change to rebuild the nation under God," Guingona
said.
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