NEWS

Union Bank of the Philippines moves cash div payment to April 30

     MANILA (AFX-ASIA) - Union Bank of the Philippines said it has decided to change the payment date for its 0.75 peso per share cash dividend to April 30 from the earlier reported May 3.
     This is to comply with the Philippine Stock Exchange rules, the bank said.
     The dividend covers shareholders on record as of April 2.
     The payment will cost the bank a total of 413.43 mln pesos, based on the number of shares held as of Dec 31, 2003.
     (1 usd = 56.38 pesos)
     afxmanila@afxasia.com

Philippine peso closes at record low, Taiwan shooting cited

     MANILA (AFX-ASIA) - The peso closed at a new record low against the US dollar with the central bank blaming the weakening to dollar short-covering by banks and their clients ahead of the weekend and to news of the shooting of Taiwan President Chen Shui-bian.
     Dealers also said the central bank was seen to have withdrawn its support for the local unit at the previous all-time low of 56.35. They said banks covered their short dollar positions amid concerns over global terrorism and pre-election uncertainty at home.
     The peso closed at an all-time low of 56.38 to the dollar, after trading at a high of 56.265, on volume of 117.5 mln usd. It closed at 56.270 yesterday.
     Central bank governor Rafael Buenaventura said the peso fell due to a number of factors, such as the shooting of the Taiwanese president and vice president, weak trade data, and political news locally.
     Central bank deputy governor Amando Tetangco said the peso's weakening was "due mainly to corporate demand, particularly of manufacturing, telecoms and oil companies (and) there was short covering ahead of the weekend."
     He added that "the incident in Taiwan (was also) cited by some players. " One dealer, however, noted that the Taiwan incident was not a major factor in the peso fall, as the local market follows mainly the movement of the yen against the dollar.
     For the past few days, the peso had been boxed in the range of 56.20-56. 35, with the central bank seen strongly supporting the unit at 56.35.
     "The central bank apparently removed its support for the peso at 56.35," a commercial bank dealer said.
     "The market will keep an eye on the central bank next week, as well as on the regional currencies, especially the yen," another dealer said.
     Dealers said the peso may fall to as low as 56.50 next week without the central bank's support, especially as the May elections draw closer.
     The peso's fall followed this morning's government announcement that the country's merchandise imports in January rose 9.0 pct year-on-year to 3.18 bln usd, slower than the 14.8 pct year-on-year rise to 3.068 bln usd in December.
     Manufacturers are likely taking a more cautious stance ahead of the May polls, as reflected in the weaker growth in merchandise imports in January than in December, said Elena Ponceca, head of research at Unicapital Securities.
     A big part of the country's imports comprise raw materials used to produce export items.
     The central bank's gross international reserves (GIR), meanwhile, fell to a revised 15.733 bln usd as at end-February from 16.084 bln in January, data at its website showed.
     The central bank, which had earlier reported an end-Feb preliminary GIR level of 15.765 bln usd, gave no reason for the revision.
     Earlier, the regulator said the GIR drop from January was due to the debt service requirements of both the national government and the central bank.
     Yesterday, central bank's Buenaventura said the GIR may fall to 14 bln usd at year-end, due to an anticipated slowdown in investment flows in the coming months.
     However, he said fresh foreign borrowings should help boost the reserves.
     afxmanila@afxasia.com

Philippine peso falls on dollar short covering, Taiwan shooting - central bank

     MANILA (AFX-ASIA) - The peso's fall to a new record low versus the US dollar was due to corporates' short covering ahead of the weekend and news that Taiwan President Chen Shui-bian was shot and wounded, central bank deputy governor Amando Tetangco Jr said.
     The peso closed at a new all-time low of 56.38 to the US dollar on volume of 117.5 mln usd. It closed at 56.27 yesterday.
     "The peso's weakening was due mainly to corporate demand, particularly of manufacturing, telecoms and oil companies. There was short covering ahead of the weekend," central bank deputy governor Tetangco said.
     He added that "the incident in Taiwan (was also) cited by some players," but did not elaborate.
     Chen was shot in the stomach while campaigning in southern Taiwan. He remains conscious and his life is not in danger, the Office of the President said. The country's election will proceed tomorrow as scheduled.
     Meanwhile, domestic political and security concerns ahead of the Philippines' May 10 general elections have continued to weigh on the peso, dealers said.
     cecille.yap@afxasia.com

Philippines' Benpres says full provision made in 2003 for Maynilad

     (Repeating with full name of Benpres COO in third para)
     MANILA (AFX-ASIA) - Benpres Holdings Corp said it made full provision for its 80-mln usd equity in unit Maynilad Water Services Inc last year, and that its decision to write off this investment will no longer have an impact on the conglomerate's bottom line moving forward.
     Maynilad and state regulator Metropolitan Waterworks and Sewerage System (MWSS) have reached a compromise agreement on Maynilad's quasi-reorganization and the restructuring of its debts. The government will effectively take control of the water utility after Benpres fully writes off its investments.
     "It's the 80-mln usd equity that we invested in, that would be the loss for Benpres. We have made full provision for this in our financial statement for 2003 ... It will have no more impact in our 2004 earnings since we made full provision last year," Benpres chief operating officer Angel Ong said in a television interview.
     Benpres at present owns 60 pct of Maynilad, while France's Suez Group holds about 40 pct.
     After the reorganization, Maynilad will be 39 pct owned by MWSS, 19.0 pct by Suez Group, 2.0 pct by creditor Metropolitan Bank and Trust Co and 4.0 pct by Maynilad employees.
     Benpres will have residual equity of about 2 pct once all remaining advances of the company are converted into common shares, Ong said.
     Ong added Benpres and MWSS will have to withdraw all legal cases against each other once the compromise plan is approved by the court and Maynilad's creditor banks.
     Maynilad decided in late 2002 to terminate early its 25-year concession agreement with the government, after failing to win approval for rate increases, the proceeds of which were to be used to repay loans.
     Maynilad, which supplies drinking water to half of metropolitan Manila, had claimed the government failed to comply with the terms of the concession agreement.
     The concession dispute went to an international arbitration panel, which asked the two parties to find an extra-judicial solution to their dispute.
     The panel concluded that "there is neither a concessionaire nor an MWSS event of termination," and that "the parties undoubtedly have problems in their internal relations but they have to find extra-judicial solutions."
     Meanwhile, Ong said no additional equity will be required from a possible new investor in Maynilad, saying the internal cash generation of the water utility will be sufficient to meet its capital expenditure requirements moving forward.
     Ong said the compromise agreement is expected to be finalized in 30 to 45 days.
     (1 usd = 56.30 pesos)
     cecille.yap@afxasia.com

Philippines' PLDT, Jollibee to list additional shares March 22 - PSE

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) will list an additional 1,143 common shares on Monday to cover shares availed of under the company's executive stock option plan, a Philippine Stock Exchange (PSE) circular said.
     Jollibee Foods will also list an additional 26,420 shares on Monday, covering the company's tandem stock purchase and option plan, a separate PSE circular said.
     PLDT closed today unchanged at 930 pesos, while Jollibee closed down 0.25 peso at 17.
     (1 usd = 56.30 pesos)
     afxmanila@afxasia.com

Manila shares close up marginally, off early highs, on profit-taking

     MANILA (AFX-ASIA) - Share prices closed marginally higher, off early highs, as investors cashed in on short-term gains ahead of the weekend, dealers said.
     Security concerns after the Madrid bombings last week and election-related worries prompted investors to take a more cautious stance, although dealers said there is still room for share prices to rise further next week.
     The 30-company composite index rose 2.77 points, or 0.19 pct, to 1,450.83 on volume of 646.98 mln shares worth 617.19 mln pesos, after trading between a high of 1,454.71 and a low of 1,448.16.
     Cross transactions worth 399.9 mln pesos boosted today's turnover value.
     In the broader market, gainers outnumbered losers 26 to 18, while 39 stocks closed unchanged.
     Top-traded Philippine Long Distance Telephone Co closed unchanged at 930. 00 on 161,670 shares, after giving up earlier gains.
     Its American Depositary Receipts in New York rose 0.32 usd to 16.58 each in New York overnight.
     Dealers said the market may move sideways with a positive bias next week.
     "People have the tendency to lighten up ahead of a weekend and moving towards an election. At the same time, security concerns following the bombings in Madrid have made investors more cautious," Citiseconline.com analyst Mark Alan Canizares said.
     The Philippines is one of the most vocal Asian supporters of the US war against terrorism. Interpol held two regional conferences in the Philippines this week on counter-terrorism and other anti-crime measures.
     Dealers said they expect the market to trade sideways next week, albeit with a positive bias, as there is still room for an extended technical recovery after the index shed more than 50 points in eight straight days starting March 5.
     "There are still opportunities for bargain-hunting, although investors will likely be quick to cash in on gains," First Grade Holdings managing director Astro del Castillo said.
     PLDT affiliate Pilipino Telephone Corp gained 0.08, or 4.76 pct, to 1.76 on 21.67 mln shares.
     San Miguel B, available to foreigners, was up 0.50 at 71.00 on 428,700 shares, while San Miguel A was unchanged at 57.00 on 128,900 shares,
     Manila Electric B rose 1.00 to 30.50 on 822,200 shares and Meralco A gained 0.25 to 19.25 on 119,400 shares.
     Jollibee shed 0.25 to 17.00.
     Globe Telecom fell 5.00 to 850.
     Benpres Holdings Corp advanced 0.05 to 0.56 after saying it had agreed to write off its equity in losing unit Maynilad Water Services Inc.
     The all-shares index climbed 1.92 points to 919.31.
     The commercial-industrial index rose 6.79 to 2,269.05.
     Property declined 0.94 to 513.73.
     Mining gained 0.53 to 1,424.87.
     Oil was unchanged at 1.19.
     Banking and financial services advanced 1.25 to 429.53.
     (1 usd = 56.30 pesos)
     cecille.yap@afxasia.com

Philippines Feb garments exports down 5.49 pct yr-on-yr

     MANILA (AFX-ASIA) - The Philippines' garments exports, the country's second biggest dollar earner after electronics, fell 5.49 pct year-on-year to 209 mln usd in February, because of low export volume to the US, the Department of Trade and Industry said.
     For the first two months of the year, garments exports fell 7.1 pct year-on-year to 471 mln usd.
     However, the Garments and Textile Export Board (GTEB), the government's promotion arm, remains optimistic that export figures will improve in the coming months.
     Serafin Juliano, GTEB executive director, said he expect garments exports to pick up especially this month as the summer buying season peaks and shipments for the fall season begin in the US, the country's top export market.
     "The resurgence in the US market brought about by rising consumer confidence will likely boost our garments export in the coming months," Juliano said.
     Garments exports to the US were down 10.72 pct year-on-year to 148 mln usd in February and declined 10.48 pct year-on-year to 334 mln usd in the first two months of the year.
     In a statement, the trade department said market analysts believe that stiff competition from exporters in Mexico and China, as well as the US' safeguard measures in anticipation of the end of the quota regime also weighed on Philippine garments exports.
     Exports to Europe, meanwhile, grew significantly on the back of the steady recovery of the economies and the strengthening of the euro, the trade department said.
     (1 usd = 56.299 pesos)
     afxmanila@afxasia.com

Philippines end-Feb forex reserves revised to 15.733 bln usd from 15.765 bln

     MANILA (AFX-ASIA) - The central bank's gross international reserves (GIR) fell to a revised 15.733 bln usd as at end-February from 16.084 bln in January, data at its website showed.
     The central bank, which had earlier reported an end-February preliminary GIR level of 15.765 bln usd, gave no reason for the revision.
     Earlier, the GIR drop from January had been attributed to the debt service requirements of both the national government and the central bank.
     However, it said proceeds from a government global bond exchange last month partly offset the debt service payments.
     The end-February GIR was adequate to cover 4.4 months of imports of goods and payments of services and income. It was also equivalent to 2.7 times the country's short-term debt, based on original maturity, and 1.4 times, based on residual maturity, the central bank said.
     The central bank intends to maintain the GIR at a comfortable level of 14-15 bln usd this year.
     Yesterday, central bank governor Rafael Buenaventura said the GIR may fall to 14 bln usd at year-end, due to an anticipated slowdown in investment flows in the coming months.
     However, he said fresh foreign borrowings should help boost the reserves.
     (1 usd = 56.294 pesos)
     afxmanila@afxasia.com

Manila shares up slightly mid-session on extended technical recovery

     MANILA (AFX-ASIA) - Share prices extended gains for the third day in mid-trade as the market continues its technical recovery after eight straight days of decline.
     Dealers, however, said cautious trading ahead of a weekend has capped the market's rise.
     At 11.21 am, the 30-company composite index was up 2.04 points or 0.14 pct at 1,450.10, on 469.8 mln shares worth 166.74 mln pesos, with cross sales boosting turnover. It has so far traded between a high of 1,454.71 and low of 1,451.29.
     In the broader market, gainers outnumbered losers 18 to 9, with 35 stocks unchanged.
     "There is still room for further upside, although gains may likely be limited ahead of the weekend," Citiseconline.com analyst Mark Alan Canizares said.
     He expects the market to trade sideways next week following recent volatility.
     The benchmark index shed more than 50 points during its eight days of declines.
     Canizares said investors will likely adopt a wait-and-see stance ahead of further 2003 earnings results due out next week. Publicly-listed firms have until April 15 to submit last year's financial reports.
     Top-traded Philippine Long Distance Telephone Co wiped out earlier gains, now steady at 930 on 53,540 shares so far.
     San Miguel B, available to foreigners, was up 0.50 at 71. San Miguel A was unchanged at 57.
     PLDT affiliate Pilipino Telephone Corp gained 0.04 to 1.72.
     Benpres was up 0.04 at 0.55, after the company said it has agreed to write off its equity in losing unit Maynilad Water Services Inc.
     Petron Corp was up 0.15 at 3.05.
     Philweb gained 0.001 to 0.012, after it has bagged a deal involving the internet betting and internet casino operations of state-run Philippine Amusement and Gaming Corp.
     The all-shares index was up 3.23 points at 920.62.
     The commercial-industrial index rose 7.19 to 2,269.45.
     Property was up 3.76 at 518.43.
     Mining gained 15.53 to 1,439.87.
     Oil was unchanged at 1.19.
     Banking and financial services advanced 0.64 to 428.92.
     (1 usd = 56.27 pesos)
     cecille.yap@afxasia.com

Philippines' Makati Finance declares dividends, settles 1999 tax deficiency

     MANILA (AFX-ASIA) - Makati Finance Corp said its board of directors has approved the declaration of cash and stock dividends equivalent to 30 pct of its 2003 net profit.
     The company also announced that it has settled its tax deficiency amounting to 394,879 pesos for 1999.
     Half of the dividend declared will be in the form of cash and the remainder stock, Makati Finance said.
     The company has yet to announce the record and payment dates.
     Makati Finance provides credit and financing services.
     (1 usd = 56.29 pesos)
     afxmanila@afxasia.com

Union Bank of the Philippines sets record, payment dates for 0.75 peso div

     MANILA (AFX-ASIA) - Union Bank of the Philippines said it will pay shareholders on record as of April 2 a cash dividend per share of 0.75 peso on May 3.
     The central bank has approved the dividend declaration, enabling Union Bank to set the record and payment dates, it said.
     The dividend payment will cost the bank a total of 413.43 mln pesos, based on the number of shares held as of Dec 31, 2003, it added.
     (1 usd = 56.29 pesos)
     afxmanila@afxasia.com

DATAWATCH - Philippine Jan imports weaker on political quandary - Unicapital

     MANILA (AFX-ASIA) - Manufacturers are likely taking a more cautious stance as the May 10 presidential elections draw closer, as reflected in the weaker growth in merchandise imports in January than in December, said Elena Ponceca, head of research at Unicapital Securities.
     Merchandise imports in January rose 9.0 pct year-on-year to 3.18 bln usd, compared to a growth of 14.8 pct year-on-year to 3.068 bln usd in December, the National Statistics Office announced today.
     Electronic imports, which accounted for 44.5 pct of the total January bill, rose 11.9 pct year-on-year to 1.416 bln usd.
     In December, electronics imports came in up 24.68 pct year-on-year at 1. 496 bln usd and accounted for 48.8 pct of the month's total.
     The Philippines recorded a trade deficit of 336 mln usd in January, wider than the year-earlier's 185 mln.
     Merchandise exports in January rose 4.1 pct year-on-year to 2.84 bln usd.
     "Manufacturers are now probably awaiting the results of the May elections, before going full blast in their business activities," Ponceca said.
     "We should see a pickup in imports and exports after May when the uncertainty will no longer be there."
     However, with the political environment still unclear for now, she said it is difficult to ascertain if the government can achieve its 2004 growth targets of 10 pct for exports and 11 pct for imports.
     The good news is that the Philippines' major trading partners, Japan and the US, are doing well so far, and this should benefit country's exporters.
     A big part of the country's imports comprise raw materials used to produce export items.
     The NSO said Japan was the country's biggest source of imports in January, accounting for 18.1 pct of the bill, with shipments up 12.3 pct year-on-year at 576.04 mln usd.
     Exports to Japan amounted to 499.86 mln usd in January, resulting in a trade deficit of 76.19 mln usd for the Philippines.
     Imports from the US ranked second with a 17.6 pct share and valued at 559. 15 mln usd against exports amounting to 485.05 mln usd. This resulted in a trade deficit for the Philippines of 74.1 mln usd.
     (1 usd = 56.284 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippine Philweb higher on internet gaming deal with PAGCOR

     MANILA (AFX-ASIA) - Philweb Corp was higher in mid-trade after the company reported that it will operate the Internet sports betting and Internet casinos of state-run Philippine Amusement & Gaming Corp (PAGCOR), dealers said.
     Philweb was up 0.001 or 9.09 pct at 0.012 on 315.3 mln shares traded.
     The country's leading integrated Internet company said PAGCOR's board of directors has approved a memorandum of agreement between them.
     It did not provide financial details of the deal.
     (1 usd = 56.276 pesos)
     cecille.yap@afxasia.com

STOCKWATCH - Philippines' Benpres firms up after exit from Maynilad

     MANILA (AFX-ASIA) - Benpres Holdings Corp was higher in mid-trade after the company agreed to write off its 6 bln peso equity in loss-making unit Maynilad Water Services Inc, dealers said.
     At 10.15 am, Benpres was up 0.03 peso, or 5.88 pct, at 0.54 on volume of 11.4 mln shares.
     The 30-company composite index was up 5.30 points or 0.37 pct at 1,453.36 on volume of 360.7 mln shares worth 99.5 mln pesos.
     Dealers said investors welcomed the Lopez-led conglomerate's divestment as it would allow the group to concentrate on its core and more profitable businesses, particularly those in the energy and broadcasting sectors.
     Benpres owns ABS-CBN Broadcasting Corp, Manila Electric Co and First Philippine Holdings Corp.
     Maynilad, which supplies drinking water to half of metropolitan Manila, decided in late 2002 to terminate early its 25-year concession agreement with the government, after failing to win approval for rate increases, the proceeds of which were to be used to repay loans.
     Currently Benpres owns 60 pct of Maynilad and France's Suez Group about 40 pct.
     After the reorganization, regulator Metropolitan Waterworks and Sewerage System will own 39 pct of Maynilad, Suez Group 19.0 pct, creditor Metropolitan Bank and Trust Co 2.0 pct and Maynilad employees 4.0 pct.
     "It's a good thing that Benpres has finally decided to take out an investment that has gone sour. They can now focus on their core businesses, something they have been intending to do for sometime now," First Grade Holdings managing director Astro del Castillo said.
     AB Capital research director Jose Vistan said the write-off should have a one-time impact on Benpres' balance sheet, but said investors prefer that Benpres take the hit now than later.
     The Lopez group is restructuring over 500 mln usd in debts.
     "It is a bitter pill to swallow, but the end result will be a healthier Benpres," Vistan said.
     Benpres posted a net loss of 1.14 bln pesos for the nine months to Sept 2003, more than double its deficit of 459 mln a year earlier due to higher costs and expenses.
     The company has investments in power generation and distribution, property, tollways, water, telecommunications, and broadcasting.
     (1 usd = 56.27 pesos)
     cecille.yap@afxasia.com

Philippines Jan merchandise imports up 9.0 pct yr-on-yr

     MANILA (AFX-ASIA) - The Philippines' merchandise imports in January rose 9.0 pct year-on-year to 3.18 bln usd, the National Statistics Office (NSO) said.
     The Philippines recorded a trade deficit of 336 mln usd in January, wider than the year-earlier's 185 mln.
     The NSO earlier reported that merchandise exports in January rose 4.1 pct year-on-year to 2.84 bln usd.
     Electronic imports, which accounted for 44.5 pct of the total January bill, rose 11.9 pct year-on-year to 1.416 bln usd.
     Imports of mineral fuels, lubricants and related materials ranked second with a 11.8 pct share, valued at 375.99 mln usd, or 14.2 pct higher than the year-earlier payment.
     Industrial machinery and equipment came in third, with shipments worth 145.36 mln usd, up 25.5 pct year-on-year.
     The NSO said payments for raw materials and intermediate goods accounted for 39.0 pct of the January bill, as such imports rose 3.1 pct year-on-year to 1.239 bln usd.
     Capital goods, comprising 37.7 pct of the January bill, rose 11.6 pct year-on-year to 1.2 bln usd.
     Japan was the country's biggest source of imports in January, accounting for 18.1 pct of the bill, with shipments up 12.3 pct year-on-year at 576.04 mln usd.
     Exports to Japan amounted to 499.86 mln usd in January, resulting in a trade deficit of 76.19 mln usd for the Philippines.
     Imports from the US ranked second with a 17.6 pct share and valued at 559. 15 mln usd against exports amounting to 485.05 mln usd. This resulted in a trade deficit for the Philippines of 74.1 mln usd.
     Singapore was third biggest source of imports, with payments worth 241.13 mln usd in January, up 29.4 pct year-on-year, while exports amounted to 202. 08 mln usd, resulting in a trade deficit of 39.05 mln usd for the Philippines.
     afxmanila@afxasia.com

STOCK ALERT - Singapore-listed Del Monte, CAO up on addition to FTSE Index

     SINGAPORE (AFX-ASIA) - Philippine-based Del Monte Pacific Ltd and China Aviation Oil (Singapore) Corp Ltd (CAO) were higher in early morning trade after they were added to the FTSE All-World Asia Pacific ex-Japan Index, dealers said.
     Del Monte was up 0.03 or 4.55 pct at 0.69 on 41,000 shares and CAO up 0. 06 sgd or 2.63 pct at 2.34 on 2.51 mln shares.
     The FTSE All-World Asia Pacific ex-Japan Index covers countries such as China, Taiwan, Australia, Korea, Hong Kong, India, Indonesia, Malaysia and Thailand.
     (1 usd = 1.68 sgd)
     rosana.gulzar@afxasia.com

Philippine Benpres says Maynilad revamp ensures viable, stable water service

     MANILA (AFX-ASIA) - Benpres Holdings Corp said the quasi-reorganization and debt restructuring of unit Maynilad Water Services Inc will pave the way for "a commercially viable and stable" water service, confirming the government's statement that it had taken control of the firm from a Lopez-led conglomerate.
     In a disclosure to the stock exchange, Benpres said the compromise plan, which Maynilad and regulator Metropolitan Waterworks and Sewerage System (MWSS) agreed on, ensures the settlement of all outstanding concession fees owed to MWSS and the write-off of all of Benpres' 80-mln usd equity in Maynilad.
     Benpres at present owns 60 pct of Maynilad, while France's Suez Group holds about 40 pct.
     The plan also calls for a partial drawing of 50 mln usd from Maynilad's 120 mln usd performance bond and the restructuring of all its debt. A majority of the creditors have agreed, in principle, to the compromise, Benpres said.
     "Moving forward, Maynilad will submit the compromise plan to its receiver and the regional trial court hearing its petition for rehabilitation, for their concurrence to the consensual agreement. The quasi-reorganization will then be submitted to the Securities and Exchange Commission for approval," Benpres said.
     Maynilad is also seeking the official approval of creditor banks for the proposed debt restructuring, it added.
     Maynilad decided in late 2002 to terminate early its 25-year concession agreement with the government, after failing to win approval for rate hikes, the proceeds of which were to be used to repay loans.
     Maynilad, which supplies drinking water to half of metropolitan Manila, had claimed the government failed to comply with the terms of the concession agreement when it decided to seek early termination of its concession.
     After the reorganization, Maynilad will be 39 pct owned by MWSS, 19.0 pct by Suez Group, 2.0 pct by creditor Metropolitan Bank and Trust Co and 4.0 pct by Maynilad employees.
     The government said local creditors of Maynilad, together with MWSS, have agreed in principle to convert 3.0 bln pesos of debt to coupon-generating voting, convertible and redeemable preferred shares in Maynilad.
     Benpres, which is undergoing restructuring of over 500 mln usd in debts, did not say how its divestment from Maynilad will affect its bottom line.
     (1 usd = 56.27 pesos)
     cecille.yap@afxasia.com

Manila shares outlook - Mixed to lower on consolidation

     MANILA (AFX-ASIA) - Share prices will likely open mixed to slightly lower as the market consolidates after its recent volatility, dealers said.
     Yesterday, the 30-company composite index closed higher for the second day, up 16.42 points or 1.15 pct at 1,448.06 on 283.12 mln shares worth 619. 15 mln pesos.
     In the broader market, gainers beat losers 29 to 8, while 42 stocks ended unchanged.
     The market went through eight days of consecutive losses before bouncing back in line with Wall Street's recovery and after reaching oversold levels.
     "The latest terrorist threat from al-Qaeda to launch attacks against US allies might cap investors' optimism on Friday, given major markets' strong recovery during recent sessions," 2TradeAsia.com said in its daily note to investors.
     AB Capital Securities research director Jose Vistan Jr said the market will likely go back into a consolidation mode after a few days of relatively high volatility.
     Immediate support is at 1,430, resistance at 1,470.
     (1 usd = 56.27 pesos)
     cecille.yap@afxasia.com

Philippines' JG Summit to raise 800 mln pesos from preferred shares sale

     MANILA (AFX-ASIA) - Gokongwei-led JG Summit Holdings Inc plans to raise 800 mln pesos from the sale of preferred shares, proceeds of which would partly finance the group's capital expenditure requirements.
     Stockholders approved the issuance of 2 bln peso preferred shares, with only 800 mln to be sold to the public. The shares will have a par value of 1 peso each, will be non-convertible and will not carry voting rights for shareholders.
     JG Summit corporate planning director BJ Sebastian said at least two thirds of the conglomerate's capital budget for this year will be allotted to telecom unit Digital Telecommunications Inc, which operates the Sun Cellular mobile phone brand.
     Sun Cellular's end-2003 subscriber number stood at 650,000, surpassing the company's target of 500,000.
     Meanwhile, Sebastian said food unit Universal Robina Corp will begin construction of a 10-mln usd food manufacturing facility in Vietnam later this year.
     (1 usd = 56.27 pesos)
     cecille.yap@afxasia.com

Philippines 2003 current account surplus 3.347 bln usd, down 23.6 pct

     MANILA (AFX-ASIA) - The country's current account yielded a surplus of 3. 347 bln usd in 2003, down 23.6 pct from the 2002 level due to weak exports, the central bank said.
     Merchandise exports grew 1.4 pct in 2003 from the previous year to 34.8 bln usd, against the stronger 6.3 pct growth in imports to 36.09 bln usd.
     The country's balance of payments (BoP) position stood at a surplus of only 111 mln usd in 2003 compared with the previous year's 663 mln, the central bank said.
     For this year the central bank projects the BoP to revert to a deficit of 660 mln usd, and the current account surplus to fall to 1.136 bln usd as investment flows slow down in the first half due to political uncertainty.
     The BoP yielded a deficit of 822 mln usd in the first two months of 2004, with a 595 mln deficit in January and a 227 mln deficit in February.
     The central bank sees a 3.0 pct growth in remittances from Filipinos working overseas to 7.828 bln usd this year.
     Filipinos go to the polls on May 10 to elect a president and a vice president, members of Congress and local government officials.
     afxmanila@afxasia.com

Philippine central bank says forex reserves may fall to 14 bln usd by yr-end

     MANILA (AFX-ASIA) - The central bank said its gross international reserves (GIR) may fall to 14.0 bln usd, or at the low end of the target range, from 15.76 bln at end-Feb due to an anticipated slowdown in investment flows in the coming months.
     However he said any fresh foreign borrowings will help boost the GIR.
     "We could be at 14 bln usd but a lot will depend on the borrowing of the Philippines," he told reporters.
     The central bank aims to maintain the GIR at 14-15 bln usd this year.
     The central bank has urged the national government to keep its borrowing mix flexible so it can take advantage of any opportunities in the international capital markets.
     The national government's borrowing program this year assumes 70 pct debt sourcing from the domestic markets, and the balance from overseas.
     Buenaventura is, however, optimistic that the investment climate here will improve after the May 10 presidential elections.
     afxmanila@afxasia.com

Philippine banks' end-Jan NPL ratio 14.47 pct vs 14.05 in Dec

     MANILA (AFX-ASIA) - The non-performing loans (NPL) of commercial banks stood at 14.47 pct of their total loan portfolio as of end-Jan compared with end-Dec's 14.05 pct, the central bank said.
     The industry's NPL ratio in Jan 2003 stood at 15.12 pct.
     The central bank said the commercial banking sector continued to foreclose on collaterals in the settlement of loans as real and other properties owned and acquired (ROPOA) rose to 5.96 pct of gross assets from 5. 85 pct in December.
     Correspondingly, the sector's non-performing assets (NPAs) increased 0.24 percentage points to 13.09 pct from 12.85 in December due to a 1.5 pct contraction in gross assets. NPAs include banks' NPL and foreclosed assets.
     (1 usd = 56.27 pesos)
     afxmanila@afxasia.com

Philippines' Benpres to exit Maynilad under revamp plan - DoJ

     MANILA (AFX-ASIA) - Benpres Holdings Corp has agreed to write-off its equity in Maynilad Water Services Inc under a quasi-reorganization plan that regulator Metropolitan Waterworks and Sewerage System (MWSS) and the water concessionaire have approved, the Department of Justice (DoJ) announced.
     The plan will now be submitted to the Securities and Exchange Commission (SEC), as well as to the court hearing Maynilad's rehabilitation petition for necessary approvals, the DoJ said in a statement.
     After the reorganization, Maynilad will be 39 pct owned by MWSS, 19.0 pct by French firm Suez Group, 2.0 pct by Metropolitan Bank and Trust Co and 4.0 pct by Maynilad employees.
     Meanwhile, local creditors of Maynilad and MWSS have agreed in principle to convert 3.0 bln pesos of debt to coupon-generating voting, convertible and redeemable preferred shares in Maynilad, the DoJ said.
     "Maynilad management will remain in place, while MWSS will be represented on one board seat by (state-owned) Development Bank of the Philippines, while local banks will receive three board seats," the DoJ said.
     Benpres, the holding firm of the Lopez family, owns 60 pct of Maynilad, while foreign Suez Group holds about 40 pct.
     The major shareholders have agreed to write off almost 6.0 bln pesos in Maynilad equity, covering accumulated losses, in order to eliminate the company's capital deficit.
     (1 usd = 56.25 pesos)
     afxmanila@afxasia.com

Philippine law abolishing DST on secondary trade to take effect March 20 - PSE

     MANILA (AFX-ASIA) - A law abolishing documentary stamp taxes (DST) imposed on secondary trade transactions in the stock market will take effect on Saturday, the Philippine Stock Exchange said.
     President Gloria Arroyo enacted into law Republic Act 9243, otherwise known as "An Act Rationalizing The Provision on the DST of the National Internal Revenue Code," on Feb 17.
     The law takes effect on March 20, or 15 days after it was published in several major dailies here on March 5.
     The measure is seen increasing trade in the equities market by abolishing the DST imposed on secondary trade transactions. It, however, raises the DST on debt instruments.
     afxmanila@afxasia.com

Philippines' energy chief urges OPEC to postpone plan to cut oil production

     MANILA (AFX-ASIA) - Energy Secretary Vincent Perez has appealed to the Organization of Petroleum Exporting Countries (OPEC) to postpone its plan to cut oil production effective April 1.
     OPEC member countries are set to meet in Vienna on March 31.
     "We are appealing to OPEC to defer its earlier decision to cut production starting April. We also call on OPEC to heed the plea of world economies not to further reduce supplies when they meet by the end of the month. We already have soaring oil prices. Consumers worldwide are now complaining of very high oil prices," Perez said.
     Dubai crude reached 31.17 usd per barrel on March 12, its highest level in 13 months. It has so far averaged 30.64 usd per barrel from March 1-17, higher than the 28.61 usd per barrel average in February.
     "World economies are growing faster than expected, owing to the strong growth in China as recently reported by the International Energy Agency. It will be a very serious setback if these artificial prices will continue to prevail," Perez added.
     Local oil retailers plan to increase gasoline prices by an average of 1. 20 pesos per liter in the next two weeks due to higher crude prices in the international market.
     Transport groups are also pressing the government to increase transport fares.
     (1 usd = 56.25 pesos)
     afxmanila@afxasia.com

Manila shares close higher on technical rebound, Wall Street gains

     MANILA (AFX-ASIA) - Share prices closed higher for the second day on an extended technical recovery following eight consecutive days of weakness, dealers said.
     Wall Street's overnight gains, stronger regional markets and a stable peso further boosted sentiment, they added.
     The 30-company composite index closed up 16.42 points or 1.15 pct at 1, 448.06 on 283.12 mln shares worth 619.15 mln pesos. It traded between a low of 1,433.91 and a high of 1,450.29.
     In the broader market, gainers beat losers 29 to 8, while 42 stocks ended unchanged.
     Top-traded Philippine Long Distance Telephone Co was up 20.00 pesos at 930 on 230,710 shares in line with last night's gains of its American Depositary Receipts (ADR) in New York which rose 0.44 usd to 16.26 usd.
     The composite index has shed more than 55 points since March 5 and dealers said this sharp drop should provide enough room for bargain-hunters to continue accumulating shares.
     They expect the technical rebound to continue in the coming sessions in the absence of surprises.
     "The market has reached oversold levels and a correction is in order," Regina Capital Development Corp analyst Gomer Tan said.
     Buying interest was further supported by gains on Wall Street and other regional markets, AB Capital research director Jose Vistan said.
     "Previous declines have provided a window of opportunity for a technical rebound. The strong performance of regional markets and gains in Wall Street also helped sustain the recovery," Vistan said.
     A mild inflation report and upbeat earnings reports sparked a broad rally on Wall Street on Wednesday, lifting the major indexes for a second day following a week-long sell-off.
     Second most active Ayala Land was up 0.20 at 5.50 on 29.2 mln shares. Parent Ayala Corp was up 0.10 at 6.10 on 5.5 mln shares.
     Pilipino Telephone Corp was down 0.02 at 1.68 on 11.27 mln shares.
     ABS-CBN Holdings Corp preferred shares gained 1.00 to 23 on 837,100 shares.
     Manila Electric B, available to foreigners, was up 0.50 at 29.50 on 470, 700 shares. Meralco A ended flat at 19 on 14,900 shares.
     Company president Jesus Francisco said the country's largest power distributor returned to profitability in 2003 from a net loss the previous year.
     Analysts polled by AFX-Asia expect Meralco to post 2003 net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales. Earlier, company officials had said 2003 net profit may fall below its 1 bln target due to provisions for contingent liabilities.
     San Miguel B gained 0.50 to 70.50, while San Miguel A was up 0.50 at 57.
     The all-shares index was up 17.71 points at 917.39.
     The commercial-industrial index rose 27.73 to 2,262.26.
     Property was up 8.97 at 514.67.
     Mining retreated 18.05 at 1,424.34.
     Oil rose 0.02 to 1.19.
     Banking and financial services advanced 0.22 to 428.28.
     (1 usd = 56.25 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - First Philippine Holdings up on expected profit surge in 2003

     MANILA (AFX-ASIA) - First Philippine Holdings was firmer in mid-session after the company said it will likely report a jump in net profit to over 3 bln pesos in 2003 from the previous year's 1.96 bln, dealers said.
     First Philippine Holdings was up 0.25 peso at 21.75 on 321,800 shares.
     Company president and chief operating officer Elpidio Ibanez told AFX Asia yesterday that profits likely surged due to higher earnings contributions from the power generation business.
     The company, which holds the Lopez family's energy-related businesses, as well as real estate and toll way construction operations, plans to resume dividend payments in the second half of 2004.
     "Our results for last year will definitely be much better than in 2002 due to improvements in both recurring gains and extra-ordinary income," Ibanez said.
     The 500-megawatt San Lorenzo facility, its second natural gas-fired power plant, has been contributing to the parent firm's bottom line after starting commercial operations early last year.
     Ibanez said the group's interest expenses also dropped on a substantial reduction in debts.
     (1 usd = 56.25 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines' ABS-CBN higher on fivefold profit rise in 2003

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp was firmer in mid-trade after the company reported a 503.5 pct year-on-year increase in its 2003 net profit to 1.0 bln pesos on the back of a sustained recovery in advertising revenue, dealers said.
     ABS-CBN was up 1.50 pesos or 6.98 pct at 23.00 on volume of 5,300 shares.
     The country's largest broadcasting firm said its consolidated gross air-time revenues rose 12 pct to 11.06 bln pesos from 9.9 bln a year ago, while parent level air-time revenue surged to 10 bln pesos from 8.7 bln in 2002.
     The company expects to post 10 pct growth in air-time earnings this year.
     (1 usd = 56.245 pesos)
     cecille.yap@afxasia.com

Philippines' Semirara Mining approves restructuring plan

     MANILA (AFX-ASIA) - Semirara Mining Corp said its board of directors has approved the company's restructuring plan, which would initially involve a decrease and then later an increase in the firm's authorized and subscribed capital stocks.
     Under the plan, the company's authorized capital will be decreased to 21. 37 mln shares with a par value of 1.00 peso from the current 1.81 bln pesos divided into 1.66 mln common shares and 15,000 preferred shares.
     It will also decrease its issued and outstanding capital to 5.34 mln pesos from 1.63 bln.
     Semirara explained the capital reduction is to eliminate its existing accumulated deficit in retained earnings as of end-Dec 2002 amounting to 1.62 bln pesos. It will also retire and cancel 15,000 preferred shares with a par value of 10,000 pesos each.
     After the reduction, the company's authorized capital will increase to 100.00 mln pesos divided into 100 mln common shares from 21.37 mln pesos.
     Its subscribed capital will also increase to 25 mln pesos from 5.34 mln.
     (1 usd = 56.25 pesos)
     cecille.yap@afxasia.com

Philippines' Philweb in deal to operate PAGCOR internet gaming, casinos

     MANILA (AFX-ASIA) - Philweb Corp said it is to operate the internet sports betting and internet casinos of the state-run Philippine Amusement & Gaming Corp (PAGCOR).
     The country's leading integrated internet company said PAGCOR's board of directors has approved a memorandum of agreement between them.
     Philweb gave no financial details regarding the deal in its disclosure to the stock exchange.
     At 10.22 am, Philweb was unchanged at 0.011 pesos.
     (1 usd = 56.25 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines' Meralco higher as company returns to profit

     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) shares firmed in early trade in line with the market's rise and after its president said the country's largest power distributor returned to profitability in 2003 from a net loss the previous year, dealers said.
     Meralco B, available to foreigners, was up 1.00 peso at 30 on 255,100 shares.
     Meralco A has so far gained 0.25 to 19.25 on 6,600 shares.
     "I am glad to confirm that we will be reporting earnings as we projected during our stockholders' meeting," Francisco told reporters.
     Analysts polled by AFX-Asia expect Meralco to post 2003 net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales.
     Earlier, company officials had said 2003 net profit may fall below its 1 bln target due to provisions for contingent liabilities.
     (1 usd = 56.25 pesos)
     cecille.yap@afxasia.com

Manila shares higher on bargain-hunting, Wall St gains

     MANILA (AFX-ASIA) - Share prices were sharply higher in early trade on bargain-hunting after eight consecutive days of declines, with Wall Street's overnight gains further boosting buying interest, dealers said.
     At 9.54 am, the 30-company composite index was up 16.44 points or 1.15 pct at a high of 1,448.28 on volume of 20.33 mln shares worth 146.7 mln pesos. It has so far traded as low as 1,433.91.
     In the broader market, gainers beat losers 16 to three, with 10 stocks unchanged.
     Top-traded Philippine Long Distance Telephone Co was up 20.00 pesos at 930 in line with the gain of its American Depositary Receipts in New York last night.
     Dealers said the market's resistance level is 1,490, with support at 1, 400.
     (1 usd = 56.25 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' PLDT higher on ADR gains, bargain-hunting

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) Co was firmer in early trade in line with the gains of its American Depositary Receipts (ADRs) in New York overnight, dealers said.
     They added bargain-hunters have begun to accumulate the stock after recent declines.
     Most active PLDT was up 20.00 pesos at 930 on 33,150 shares.
     Its New York-traded ADR gained 0.44 usd to 16.26 last night.
     (1 usd = 56.255 pesos)
     cecille.yap@afxasia.com

Philippines' SPI Technologies incorporates local, Indian units

     MANILA (AFX-ASIA) - SPI Technologies said its board of directors has approved the incorporation of several subsidiaries in the Philippines and India.
     In a disclosure to the stock exchange, SPI Technologies said its soon-to-be incorporated local unit SPI Transact Inc will be dealing with the operational, technological and administrative requirements of banks, insurance companies and financial services firms.
     SPI Transact will have authorized capital stock of 25 mln pesos and initial paid-in capital of 6.25 mln. It will offer major services that include data entry, maintenance, payment processing, document management, loan administration, claims processing, database analysis and other related ancillary activities.
     Meanwhile, SPI said it will also incorporate three companies in India, with the capital stock of each owned by the company. The three are SPI Litigation Direct India Pvt Ltd, SPI Healthcare Documentation India Pvt Ltd and SPI Technologies India Pvt Ltd.
     Each company will have capital of 5.0 mln rupees, or approximately 110, 000 usd. Operations will be located in Tamil Nadu in India.
     (1 usd = 56.285 pesos; 45.24 rupees)
     cecille.yap@afxasia.com

Philippines' Meralco turns around from losses in 2003 - president

     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) president Jesus Francisco said the country's largest power distributor will report a net profit for 2003, turning around from the 2 bln peso net loss incurred in the previous year.
     "I am glad to confirm that we will be reporting earnings as we projected during our stockholders' meeting," Francisco said.
     He said the audited results will be out in the next few days. He did not elaborate.
     Analysts AFX Asia polled expect Meralco to post a 2003 net profit before provisions of 800 mln to 1.2 bln pesos on the back of increased rates and higher electricity sales.
     Earlier, company officials said the 2003 net profit may fall below its 1 bln target due to provisions for contingent liabilities.
     (1 usd = 56.285 pesos)
     cecille.yap@afxasia.com

Philippines' MacroAsia unit signs service agreement with Air Philippines

     MANILA (AFX-ASIA) - MacroAsia Corp said its unit MacroAsia Menzies Airport Services has signed a service agreement with Air Philippines to operate ground handling services at the Mactan-Cebu international airport.
     Prior to its Cebu expansion, MacroAsia was engaged in aviation-related businesses at Manila's international airport.
     No other details were provided in a disclosure to the stock exchange.
     cecille.yap@afxasia.com

Manila shares outlook - Mixed to higher on Wall St gains, bargain-hunting

     MANILA (AFX-ASIA) - Share prices are likely to open mixed to higher on extended recovery following Wall Street's gains overnight, dealers said.
     Investors are seen taking advantage of lower prices to bargain hunt following eight straight sessions of declines, they added.
     Yesterday, the composite index closed up 12.97 points or 0.91 pct at 1, 431.64 on volume of 231.8 mln shares worth 527.4 mln pesos.
     In the broader market, gainers beat losers 27 to 18, with 33 stocks unchanged.
     "We think that the market correction is healthy as this provides opportunities for investors to accumulate select issues," BPI Securities said in its daily note to investors.
     AB Capital Securities research director Jose Vistan said the US Federal Reserve's decision to keep US interest rates unchanged a little longer eases pressure on domestic rates and "should provide positive sentiment in the coming sessions."
     Trading range is 1,400-1,460.
     (1 usd = 56.285 pesos)
     cecille.yap@afxasia.com

Philippines' Napocor mulls 500 mln usd bond issue before election - report

     MANILA (AFX-ASIA) - The national government plans to tap the international debt market anew to shore up the finances of state-run National Power Corp, Today newspaper reported, citing a government source.
     The source said government is priming a fresh 500 mln usd bond issue in favor of the state-run power firm before the May 10 general elections.
     The Napocor bond issue is expected to be "slightly more expensive" than the state's recent bond deal since foreign creditors view the power firm as a higher credit risk, the source added.
     The government recently sold 500 mln usd worth of 11-year global bonds at a coupon rate of 8.875 pct to yield 9.0 pct.
     The bonds will mature in March 2015.
     (1 usd = 56.285 pesos)
     cecille.yap@afxasia.com

Philippines' ABS-CBN seeks 30 mln usd loan for cable unit

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp will borrow 30 mln usd from a foreign bank to fund the requirements of its cable unit SkyVision Corp.
     ABS-CBN chief financial officer Randy Estrallado said that under the proposed terms, the loan may be converted into shares after two years.
     "We are making sure all of the funds are available. We are preparing to take the full requirement if necessary," Estrallado said.
     ABS-CBN yesterday said it booked a net profit of 1.0 bln pesos in 2003, 503.5 pct higher than the previous year's 165.7 mln, on a sustained recovery in advertising revenue.
     Consolidated gross air-time revenues rose 12 pct to 11.06 bln pesos from 9.9 bln a year ago, while parent level air-time revenue surged to 10 bln pesos from 8.7 bln in 2002.
     "In 2003, ABS-CBN reaped the benefits of an improved economic environment, coupled with a stronger and leaner organization focused on its core operations," the company said.
     "As a result, ABS-CBN delivered double-digit revenue, earnings, and cash flow growth, despite a more competitive business environment."
     Net sales and services, which include subscription fees, sale of inventories, and non-broadcast related revenues, increased 29 pct to 3.63 bln pesos in 2003 from 2.83 bln in 2002.
     Unit ABS-CBN Global Ltd's net sales and services, which accounted for 65 pct of total net sales and services, rose 24 pct to 2.37 bln pesos from 2002's 1.92 bln.
     Estrellado said the company targets a 10 pct increase in air-time revenue this year.
     The company, which has drawn up a 2004 capital expenditure budget of 1.4 bln pesos, plans to expand its operations with the penetration of overseas markets.
     ABS-CBN, controlled by the Lopez family, earlier said it is negotiating with a Canadian cable company plans to offer 24-hour all-Filipino cable services in Canada.
     ABS-CBN also intends to expand its cable services in Asia, particularly in Hong Kong, Singapore and Taiwan.
     The company launched its cable and direct-to-home satellite in Europe in December, while North America remains its major cable market with at least 130,000 subscribers.
     It also offers similar services in Australia, Japan, Indonesia and Asia Pacific countries.
     (1 usd = 56.285 pesos)
     cecille.yap@afxasia.com

Philippine authorities monitoring 10 election 'hot spots'

     MANILA (AFX-ASIA) - Philippine police, military and poll authorities have identified 10 "hot spots" where violence is likely to occur during the May 10 presidential election, officials said.
     They are all towns where guerrillas from the New People's Army (NPA), the armed wing of the Communist Party of the Philippines, are known to operate and to extort fees from political candidates for permission to campaign, said national police chief of operations Avelino Razon.
     Since campaigning began in February, police have recorded 42 "violent incidents" involving politicians, including six deaths, Razon said. So far the figure is lower than the 61 incidents in the 2001 elections.
     "The parameters for considering an area as an election area of immediate concern is the presence of the CPP-NPA, the occurrence of election-related incidents in the past and intense rivalry," among candidates, Razon said.
     He said about 500 other areas were also being monitored as areas of possible violence.
     Defense Secretary Eduardo Ermita said the police and military will be deputized to guard ballots and candidates, while counting of ballots cast in hot spots could also be transferred to safer areas.
     Movie star presidential candidate Fernando Poe is neck-and-neck with incumbent President Gloria Arroyo in the most recent opinion polls less than two months before the elections.

Air Liquide wins gas supply contract from Philippines' SunPower Corp

     PARIS (AFX) - L'Air Liquide SA said it has won a gas supply order from SunPower Corp of the Philippines, a producer of silicon solar energy cells.
     Financial terms of the contract were not disclosed. SunPower is a unit of US-based Cypress Semiconductor Corp.
     paris@afxnews.com

Philippines' Benguet Corp pre-qualifies for Baguio water supply project

     MANILA (AFX-ASIA) - Mining firm Benguet Corp said it is one of four bidders that have been pre-qualified for a bulk water supply project in Baguio City in northern Philippines.
     "The company's entry into this bulk water project is part of its comprehensive plan to rehabilitate its mined-out Antamok open pit by converting it into a water reservoir to serve the water needs of Itogon, and the excess water to be supplied to Baguio City and other areas," Benguet said in a disclosure to the stock exchange.
     It added that the 50,000 cubic meters per day of water needed by Baguio City is just a fraction of the total water resources the company controls.
     Benguet said it submitted its second envelope bid to the Baguio Water District's prequalification bid and awards committee today.
     cecille.yap@afxasia.com

Philippines' ABS-CBN 2003 profit surges fivefold on higher ad revenue

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp said it booked a net profit of 1.0 bln pesos in 2003, 503.5 pct higher than the previous year's 165.7 mln, on a sustained recovery in advertising revenue.
     Air-time revenue surged to 10 bln pesos from 8.7 bln in 2002.
     ABS-CBN vice president and chief financial officer Randolph Estrellado said the company's target is for 10 pct increase in air-time revenue this year.
     The company, which has drawn up a 2004 capital expenditure budget of 1.4 bln pesos, plans to expand its operations with the penetration of overseas markets.
     ABS-CBN, which the Lopez family controls, earlier said it is negotiating with a Canadian cable company on plans to offer 24-hour all-Filipino cable services in Canada.
     Besides Canada, ABS-CBN also intends to expand its cable services in Asia, particularly in Hong Kong, Singapore and Taiwan.
     The company launched its cable and direct-to-home satellite in Europe in December, while North America remains its major cable market with at least 130,000 subscribers.
     It also offers similar services in Australia, Japan, Indonesia and Asia Pacific countries.
     The company's 100 pct-owned unit, ABS-CBN Global Ltd, operates the 24-hour cable service.
     (1 usd = 56.23 pesos)
     afxmanila@afxasia.com

INTERVIEW - First Philippine Holdings 2003 net profit to exceed 3 bln pesos

     ---- by Cecille Yap ----
     MANILA (AFX-ASIA) - Lopez-led First Philippine Holdings Corp (FPHC) will likely report a 2003 net profit of over 3 bln pesos, up from 1.958 bln in 2002, on higher earnings contributions from its power generation business, president and chief operating officer Elpidio Ibanez told AFX Asia.
     The company, which holds the Lopez family's energy-related businesses, as well as real estate and toll way construction operations, plans to resume making dividend payment in the second half of 2004.
     "Our results for last year will definitely be much better than in 2002 due to improvements in both recurring gains and extra-ordinary income," Ibanez said.
     The 500-megawatt San Lorenzo facility, its second natural gas-fired power plant, has been contributing to the parent firm's bottom line after starting commercial operations early last year.
     Ibanez said the group's interest expenses also dropped on a substantial reduction in debts.
     "We also had some extraordinary gains from the sale of some assets," Ibanez said.
     First Holdings sold, through several units, its investments in independent power producer Panay Power Corp to a First Metro Investment Corp-led group last June. The transaction cost was said to have been 2.329 bln pesos, although it is not known how much First Holdings booked as a gain.
     Panay Power owns and operates a 72-megawatt bunker diesel power plant in the province of Iloilo.
     Ibanez said First Holdings also posted extra income of 400 mln to 600 mln pesos after the Meralco A shares, which it sold previously through the issue of global depositary shares (GDS), were fully exercised and booked last year. He did not elaborate.
     "Meralco's earnings contribution in 2003 was an improvement on the previous year, but still a bit lower than prior years," Ibanez said.
     More than 90 pct of the holding firm's earnings come from First Generation Holdings, its power-generating arm, whose shares will be offered to the public in 2005.
     "We're realistically looking for next year, in terms of holding the initial public offering... We want to have a good story for First Generation, " Ibanez said.
     Ibanez said the power holding firm expects its 2004 showing to be better than in the previous year on a recurring basis.
     The holding firm's capital expenditure budget has been set at 15-16 mln usd and will be largely for its toll way subsidiary.
     "Maybe, we could issue a cash dividend in the second half of this year. It is just a question of how much. Hopefully, it will be on a sustainable basis," Ibanez said.
     (1 usd = 56.22 pesos)
     cecille.yap@afxasia.com

Philippines' Jollibee Foods 5,350 additional common shares to list tomorrow

     MANILA (AFX-ASIA) - Jollibee Foods Corp's 5,350 additional common shares, arising from its tandem stock purchase and option plan, will list tomorrow, the Philippine Stock Exchange said.
     Jollibee, the country's largest fast-food chain operator, closed today up 0.50 peso at 17.25.
     (1 usd = 56.23 pesos)
     afxmanila@afxasia.com

Philippines' wholesale electricity spot market ready to operate this year

     MANILA (AFX-ASIA) - The country's wholesale electricity spot market (WESM) is expected to be ready for operations later this year after today's signing of two vital contracts to jump-start the project, the Department of Energy said.
     The DoE and the state-run National Transmission Corp will formally award today a 2.0 mln usd contract for consultancy services to Marketplace Company Pty Ltd of New Zealand, and a 8.47 mln usd market management contract to ABB Inc of Sweden.
     The Philippines' WESM, the second such operation to be established in Southeast Asia, will facilitate the trading of wholesale electricity and encourage competition among power producers.
     "With WESM in place, competition in the generation of electricity will be encouraged, leading to a more efficient and reliable power sector," Energy Secretary Vincent Perez said in a statement.
     He said the WESM will commence operations 285 days from today.
     This should also help bring down electricity costs.
     The establishment of the WESM is one of the major reforms mandated by the Electric Power Industry Reform Act.
     The Asian Development Bank and the Japan Bank for International Cooperation (JBIC) have extended financing assistance for the project.
     afxmanila@afxasia.com

Manila shares rebound in late trade after eight sessions of declines

     MANILA (AFX-ASIA) - Share prices closed firmer, led by the country's largest telecom companies, following eight straight sessions of declines, dealers said.
     Wall Street's overnight gains provided a signal to bargain-hunters, they said, but noted that investors remained largely sidelined due to the lack of fresh positive leads locally.
     The composite index closed up 12.97 points or 0.91 pct at 1,431.64 on volume of 231.8 mln shares worth 527.4 mln pesos. It traded between 1,415.51 and 1,434.78.
     In the broader market, gainers beat losers 27 to 18, with 33 stocks unchanged.
     Despite the market's bounce, investors were cautious because of lingering concerns over rising domestic interest rates, security issues and political uncertainties ahead of the May 10 presidential elections here.
     "It's not surprising to see the market rebounding after successive declines recently. We saw significant gains in the US markets overnight as well as in the regional markets this morning," ATR-Kim Eng Securities research head Andrew Long said.
     He said the market has found strong support near the 1,400-point key index level.
     "But we have to watch closely what's happening around the world, and how the markets react to these developments," Long said.
     Terrorism concerns have re-emerged after last week's bomb attacks in Madrid.
     Dealers said the local market is also awaiting CalPERS' decision whether to keep its investments in the Philippines.
     The largest US pension fund on Monday decided to delay its vote on its Philippine exposure for another 30 days, during which it will review Philippine economic data and additional information to determine if the country's score as an investment site will be lifted.
     At last Monday's auction, the 91-day Treasury bill rate - used as benchmark by banks in pricing loans - averaged 7.616 pct compared with 6.435 pct previously. Pre-election political jitters are pushing local interest rates higher, treasury officials said.
     "The market is going through a medium-term correction. On a day-to-day basis, what we're seeing is largely a market consolidating ahead of the May polls," Summit Securities president Harry Liu said.
     Top-traded Philippine Long Distance Telephone Co (PLDT) was up 15.00 pesos at 910 on 233,380 shares.
     Rival Globe Telecom rose 5.00 to 845 on 51,070 shares. "The (telecom) stocks are still supported because of their earnings potential this year," Liu said.
     Mall operator SM Prime Holdings was down 0.20 at 5.70.
     Meralco B, available to foreign investors, rose 1.00 to 29, while Meralco A gained 0.75 to 19.
     PLDT affiliate Pilipino Telephone was up 0.02 at 1.70.
     Benpres Holdings was down 0.01 at 0.50.
     Jollibee Foods was up 0.50 at 17.25.
     Meralco parent First Philippine Holdings was up 0.75 at 21.50.
     The all-shares index was down 1.49 points at 899.68.
     The commercial-industrial index rose 32.00 to 2,234.53.
     Property was down 7.00 at 505.70, and mining retreated 1.82 to 1,442.39.
     Oil dropped 0.03 to 1.17.
     Banking and financial services advanced 1.42 to 428.06.
     (1 usd = 56.23 pesos)
     afxmanila@afxasia.com

     MANILA (AFX-ASIA) - Share prices rebounded in late trade, led by the country's largest telecom companies, following eight straight sessions of declines, dealers said.
     Dealers said Wall Street's overnight gains provided a signal to bargain-hunters, although investors remain largely sidelined due to the lack of fresh positive leads locally.
     At 11.19 am, the composite index was up 9.79 points or 0.69 pct at 1,428. 46 on volume of 189.1 mln shares worth 259.1 mln pesos. It has so far traded between 1,415.51 and 1,428.55.
     In the broader market, gainers beat losers 22 to 14, with 25 stocks unchanged.
     Despite the market's bounce, investors exercised caution amid lingering concerns over rising domestic interest rates, security issues and political uncertainty ahead of the May 10 presidential elections here.
     "The market is going through a medium-term correction. On a day-to-day basis, what we're seeing is largely a market consolidating ahead of the May polls," Summit Securities president Harry Liu said.
     Top-traded PLDT was up 5.00 pesos at 900, while rival Globe Telecom rose 10 to 850.
     (1 usd = 56.23 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines' PLDT, Globe Telecom firmer on technical bounce

     MANILA (AFX-ASIA) - Shares of Philippine Long Distance Telephone Co (PLDT) and rival Globe Telecom were firmer in mid-session on a technical bounce following recent weakness, dealers said.
     Top-traded PLDT was up 5.00 pesos at 900 on 94,210 shares.
     Second most active Globe was up 10 at 850 on 32,670 shares.
     Gains in the two leading telecom stocks lifted the market, which had suffered eight straight sessions of losses until yesterday.
     "The stocks are still supported because of their earnings potential this year," Summit Securities president Harry Liu said.
     (1 usd = 56.23 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines' Meralco firmer on bargain-hunting

     MANILA (AFX-ASIA) - Manila Electric shares were firmer in mid-trade on bargain-hunting after recent declines, dealers said.
     Meralco B, available to foreign investors, was up 1.50 pesos or 5.36 pct at 29.50 on 160,600 shares. Meralco A was up 0.25 at 18.50.
     The B shares dropped to as low as 28 each yesterday from a high of 34 on March 1 as investors limited their positions ahead of the company's 2003 earnings results, due anytime.
     Company officials said its 2003 net profit may fall below its 1.0 bln peso goal due to additional provisioning. The country's largest power distributor posted a net loss of 2.0 bln pesos in 2002.
     (1 usd = 56.224 pesos)
     cecille.yap@afxasia.com

Philippines' Nenaco in repayment negotiations with ship repair provider

     MANILA (AFX-ASIA) - Negros Navigation Co (Nenaco) said it is involved in repayment negotiations with its former ship repair and drydocking provider Japan's Tsuneishi Heavy Industries Inc.
     Metro Pacific Corp's shipping unit said Tsuneishi had initiated legal action against it, but courts in metropolitan Cebu ordered the two to amicably work together to achieve a comprehensive repayment plan.
     The Manila Standard newspaper reported the Japanese firm filed garnishment proceedings against Nenaco, asking a Cebu court to freeze the shipping firm's account in Prudential Bank for failing to pay debts of 100 mln pesos.
     The report said Tsuneishi is a joint partner of Nenaco's rival Aboitiz Transport Services Inc.
     "Tsuneishi makes serious allegations of Nenaco 'cooking its books,' which are libelous in nature considering the public nature of Nenaco's financing reporting, and the high standard of its financial disclosures," Nenaco told the stock exchange.
     The company said it will address the allegations in court. It did not elaborate.
     (1 usd = 56.218 pesos)
     cecille.yap@afxasia.com

Philippine Seven back to profit in 2003 after three years of losses

     MANILA (AFX-ASIA) - Philippine Seven Corp said it booked a full-year net profit of 9.3 mln pesos in 2003, turning around from losses in the previous three years.
     Philippine Seven, the local operator of 7-Eleven stores, gave no other details in its disclosure to the stock exchange.
     The company, meanwhile, announced the appointment of Jose Victor Paterno as vice president for operations effective March 16. He holds 4.19 mln Philippine Seven shares and is currently the president of Philippine Seven's wholly-owned unit, Convenience Distribution Inc.
     (1 usd = 56.24 pesos)
     afxmanila@afxasia.com

Philippines' Sanitary Wares to double capital to 1.0 bln pesos

     MANILA (AFX-ASIA) - Ceramic and tile maker Sanitary Wares Manufacturing Corp said it plans to double its capital to 1.0 bln pesos.
     The company's board has approved the capital hike, as well as its plan to issue 5.0 bln redeemable preferred shares with a par value of 0.10 peso each.
     In a disclosure to the stock exchange, Sanitary Wares said 500 mln shares from the increased authorized capital stock will be listed as common shares with a par value of 1.00 peso each.
     The company's board also approved US-based American Standard Inc's subscription of up to 3.15 bln of the redeemable preferred shares, paid for which will be made either in cash or through debt-for-equity conversion.
     (1 usd = 56.24 pesos)
     afxmanila@afxasia.com

Philippines' Uniwide in talks with HK investors for Coastal Mall op - report

     MANILA (AFX-ASIA) - The Uniwide Group of Companies is negotiating with Hong Kong-based investors for the operation of its Coastal Mall, the BusinessWorld newspaper reported, citing a company report to the Securities and Exchange Commission (SEC).
     The report did not identify the Hong Kong investors.
     The foreign parties will be asked to invest 700,000 pesos to be allowed to operate the mall, while Uniwide will use the money to pay creditors.
     Uniwide is seeking to restructure half of its 2.15 bln pesos debts to unsecured creditors into a 10-year term loan.
     The other half will be paid through the issuance of 15-year convertible notes to creditors.
     The SEC has placed the Uniwide Group 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 because of liquidity problems stemming from persistent losses.
     (1 usd = 56.24 pesos)
     afxmanila@afxasia.com

Philippines' Manila Water to raise foreign currency charge from April 1

     MANILA (AFX-ASIA) - Manila Water Company said it will raise its foreign currency differential adjustment (FCDA) charge to 0.19 peso per cubic meter from 0.16 effective April 1, based on an exchange rate of 56.07 peso per US dollar.
     In a notice to its customers published in newspapers, Manila Water said the increase in water bill will only be less than 0.50 peso per month for average residential customer consuming 30 cubic meters per month.
     Manila Water supplies drinkable water to metropolitan Manila's east zone and accounts for roughly 10 pct of parent Ayala Corp's income.
     FCDA is a mechanism that allows utilities to adjust their rates based on foreign exchange movements.
     "Manila Water has to continue paying for the foreign exchange-denominated concession fees to the MWSS (Metropolitan Waterworks and Sewerage System), as well as loans required for its service expansion and improvement," it said.
     Regulator MWSS approved the rate hike in a March 9 resolution, it added.
     Ayala Corp has set Manila Water's initial public offering for 2005.
     (1 usd = 56.24 pesos)
     afxmanila@afxasia.com

Manila shares outlook - Mixed to higher on Wall Street gains

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to higher with Wall Street's overnight gains likely to serve as a signal for bargain-hunters to re-enter the market, dealers said.
     However, any gains may be capped given concerns over rising domestic interest rates, security issues and political uncertainty ahead of the May 10 presidential election here.
     Yesterday, the composite index closed down for the eight straight session, falling 0.67 points or 0.05 pct at 1,418.67, a fresh three-month low.
     Dealers also noted that investors will likely remain sidelined due to the lack of fresh positive leads and as the waiting game continues regarding CalPERS' decision whether to keep its investments in the Philippines.
     The largest US pension fund has delayed its vote on its Philippine exposure for another 30 days, during which a further review of Philippine economic data and additional information is supposed to take place to determine if the country's score as an investment site will be lifted.
     But since prices have reached bargain levels following the market's correction, some buying interest may emerge, dealers said.
     "We think that the market's correction is healthy as this provides opportunities for investors to accumulate select issues," BPI Securities said in its daily note.
     Support range is at 1,385 to 1,400, while resistance is at 1,435, it said.
     afxmanila@afxasia.com

Philippines' Jan-Feb BOP deficit widens to 822 mln usd

     MANILA (AFX-ASIA) - The country's balance of payments (BoP) yielded a deficit of 822 mln usd in the first two months of the year, widening from 595 mln deficit in January, the central bank said.
     In February alone, the deficit came to 227 mln usd.
     No other details were immediately available.
     afxmanila@afxasia.com

Setback for opposition unity ahead of Philippine presidential poll

     MANILA (AFX-ASIA) - A Philippine opposition plan to rally behind a single challenger to Gloria Arroyo in the May 10 presidential elections suffered a setback today after an apparent falling out between two candidates.
     The schism in the ranks of the opposition emerged after lead challenger movie star Fernando Poe Jr, who has 30.5 pct support in opinion polls against Arroyo's 31.8, refused to hold talks with fellow candidate Panfilo Lacson.
     Lacson, who is polling less than 12 pct, said the Poe camp aborted the meeting in the latest in a series of slights against his campaign.
     Other opposition figures, who say the only way to mount a feasible challenge to Arroyo is to unite behind a single candidate, said they hope the dispute will not dampen efforts to consolidate the campaign to defeat the incumbent.
     "We are hoping that this (cancelled meeting) is just a postponement and that the two parties can meet at a more opportune time," Francisco Tatad, a senatorial candidate in the Poe camp
     Meanwhile, the presidential field narrowed today as the official election ombudsman disqualified fringe candidate Eddie Gil for making dubious claims on his financial background.
     Gil, who claims to be a businessman, but whose political background is obscure, said he will appeal against the "unfair" decision.

Philippine Treasury raises 1.35 bln pesos via 4-year T-bond re-issue

     MANILA (AFX-ASIA) - The Bureau of Treasury said it raised 1.35 bln pesos at today's auction of re-issued four-year T-bonds, against an offering of 3.0 bln, with the average rate settling at 11.36 pct.
     Tenders totalled 5.18 bln pesos.
     The bonds were originally issued on Feb 19, with the coupon rate at 10. 875 pct.
     (1 usd = 56.24 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) said.
     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 country had a total labor force of 35.4 mln as of end-January.
     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.
     The NSO noted that of the 3.9 mln unemployed in January, about 2.7 mln did not look for work during the week before the survey was conducted.
     People who had no job or business during the reference period and did not look for work because of their belief no work is available because of temporary illness or disability, bad weather, a pending job application or job interview were also taken into account in computing the unemployment rate, the agency said.
     Labor Secretary Patricia Santo Tomas, however, said these "discouraged workers" should not have been included in the unemployment rate computation.
     "We don't count them as unemployed, because people who are unemployed, by definition of the (International Labor Organization), are people who are not working and who are looking for work," she said in a television interview.
     "In this particular case, in our case, they are included in the list of our unemployed and that significantly increases our numbers as compared to other countries in the region who use the international standard definition."
     She also cited the increase in the labor force as another factor behind the increase in the unemployment rate.
     "Our labor force increased by 5.2 pct. That's even higher than the birth rate. And this is very significant because the employment level has expanded by 1.4 mln from last year but the growth in the labor force is up to 5.2 pct. We grew from 33.6 mln to 35.4 mln. That's an addition of 1.7 mln people year-on-year," Santo Tomas noted.
     Considering that it is graduation season currently, the unemployment rate is expected to show a further rise when the next survey results are released in June, which covers the January-April period.
     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 of 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 was 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 practices 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.
     Central bank governor Rafael Buenaventura said he is hopeful that CalPERS will take a look at additional data that will help improve the country's scorecard.
     "I hope that CalPERS will take into consideration the additional information given by the government that were not included in the previous assessment," he said.
     "We may be retained on the CalPERS list if those data are taken into account."
     Philippine Ambassador to Washington Alberto del Rosario, who appeared before the CalPERS board during the Monday meeting, said he urged the largest US pension fund to consider the information from the International Monetary Fund regarding the Philippines.
     He believes that this information will improve the country's ranking on CalPERS' list of favored emerging markets.
     afxmanila@afxasia.com

Philippines' Salcon Power Q2 to Jan net profit 137.99 mln pesos vs 177.99 mln

     MANILA (AFX-ASIA) - Salcon Power Corp second quarter to Jan 31 results:

      Revenues - 390.18 mln pesos vs 363.84 mln

      Cost of services - 173.12 mln pesos vs 128.7 mln

      Opg income - 189.01 mln pesos vs 196.6 mln

      Net profit - 137.99 mln pesos vs 177.99 mln

      Earnings per share - 0.09 pesos vs 0.12
     Salcon Power, set up in 1994 by a consortium led by Salcon Philippines Inc (SPI), has a 15-year contract with state-owned National Power Corp (Napocor) to rehabilitate, operate, maintain and manage one of Napocor's power plants.
     Salcon Power is 53.7 pct owned by SPI, a Philippine subsidiary of Salcon Ltd of Singapore. An additional 23.6 pct of the company's issued and outstanding capital stock is owned by other foreign entities including 5.5 pct directly held by Salcon Ltd, and the remaining 22.7 pct is held by Philippine nationals.
     (1 usd = 56.28 pesos)
     afxmanila@afxasia.com

Philippines' Aboitiz group, Vivant agree to settle Veco dispute amicably

     MANILA (AFX-ASIA) - Conglomerate Aboitiz Equity Ventures Inc said it has agreed to settle its dispute with Vivant Corp, led by major shareholder the Garcia family, involving shares in Visayan Electric Co (Veco).
     Aboitiz, in a disclosure to the stock exchange, said it signed today a Memorandum of Agreement (MOA) with Vivant "for the purpose of amicably settling all litigation among the parties and to cooperate in respect of the management and preservation of Veco's assets, franchise and business for the benefit of all stakeholders."
     The dispute arose when Hijos de F Escano, a holding company owning 51 pct of the outstanding shares in Veco swapped 30 pct of its controlling stake in exchange for shares in the Garcia family's publicly-listed company, Vivant.
     Veco is the second largest private electric distribution utility in the country, with its franchise covering the progressive Cebu Island in the central Philippines.
     Hijos is owned 47 pct by Aboitiz Equity Ventures and 51 pct by the Garcia family.
     Aboitiz Equity, which opposed the transaction, beneficially owns a total of 54 pct of Veco's shares.
     The dispute had been elevated to a Cebu regional trial court, which ordered the partial liquidation of Hijos de F Escano.
     "The MOA also aims to restore Hijos' Veco shares, transferred under the share-swap transaction and redistribute pro-rata the excess of Hijos' 25 pct shareholdings in Veco to its shareholders to comply with the Electric Power Industry Reform Act of 2001," Aboitiz told the exchange.
     The agreed redistribution under the MOA will result in the Garcias' control of 48 pct of Veco, through its direct ownership of 23 pct and Hijos' 25 pct.
     Aboitiz Equity said its direct ownership of Veco will increase to 43 pct.
     The Garcias and the Aboitizes will share in the management of Veco, with the former retaining control of the Veco board.
     Aboitiz Equity said the MOA's effectivity is, however, subject to compliance on or before April 2, 2004 of specific conditions, which include the finalization of a Shareholders' Cooperation Agreement, the setting up of an escrow account that will serve to enforce certain conditions of the MOA and mutual settlement of the cases at the Court of Appeals.
     Aboitiz Equity's business interests also cover shipping and transport, power generation, engineering and construction, industrial gas production, food, banking and financial services, and real estate development.
     (1 usd = 56.28 pesos)
     afxmanila@afxasia.com

Interpol chief says al-Qaeda-type attacks biggest worry of world's police

     MANILA (AFX-ASIA) - The threat of Al-Qaeda-style simultaneous attacks against multiple targets designed to inflict maximum loss of human life is the biggest problem facing police around the world, the head of Interpol said today.
     Interpol "believes Al-Qaeda-like techniques present the greatest concern and challenge for us as police officials and as a world community," secretary general Ronald Noble said at the opening of an Interpol conference for Asia.
     The Madrid train bombings last week and the ramming of hijacked planes into New York's World Trade Center and the Pentagon on Sept 11, 2001 were intended to cause massive deaths and have a global impact, preferably with victims from many countries, Noble said.
     The Madrid attacks fit the profile of "multiple simultaneous targets seeking to perpetrate massive harm ... in an environment that is likely to have a worldwide impact," Noble said.
     "Not Europe, not Africa, not the Americas and not Asia can think of the problem of Al-Qaeda-like terrorist attacks as being some other region's problem," he said, citing attacks in various countries ranging from Algeria, Iraq, Italy and the United States to Yemen.
     While police have not yet confirmed if the Al-Qaeda network was behind the killings of 200 people in the Madrid commuter trains, it had "many of the aspects of what make al-Qaeda-like techniques of such concern to Interpol."
     Noble said it may not be a coincidence that the Madrid attacks took place on March 11, exactly 911 days from the Sept 11, 2001 terror attacks in the United States, which are known there as "9-11."
     "In light of our experience, Interpol believes no government can honestly say to its citizens that they do not have to be concerned about terrorism," Noble added.
     "Each successfully carried out terrorist attack that links itself to Al-Qaeda or Sept 11 undermines public confidence that governments can shield their citizens from harm."
     He praised Asian countries for their experience in fighting terrorism, citing the host country, the Philippines for its success against the Abu Sayyaf, a local Muslim outlaw group allegedly linked to Al-Qaeda.
     Philippine national police chief Hermogenes Ebdane said sharing of information among countries was key to battling terrorism in Southeast Asia.
     To fight terrorism, Noble said Interpol has formed the "Fusion Anti-terrorist Task Force" which shares information on terrorist activities with more than 90 participating nations.
     He also cited a 24-hour "Command and Coordination Center" to support member countries, speedy processing of "red notices" notifying countries of people wanted for crimes as well as the creation of international databases on fugitives, suspects and stolen travel documents.