NEWS

Manila shares close lower on caution ahead of May 10 elections

     MANILA (AFX-ASIA) - Share prices closed weaker, with profit-taking in PLDT and Globe Telecom weighing heavily on the key index, as cautious investors kept to the sidelines ahead of the presidential elections on Monday, dealers said.
     The composite index closed down 11.70 points, or 0.74 pct, at 1,562.13 on volume of 94.7 mln shares worth 539.2 mln pesos. It moved between 1,558.77 and 1,573.24 points.
     In the broader market, losers edged out gainers 18 to 17, with 35 stocks unchanged.
     (1 usd = 55.5 pesos)
     afxmanila@afxasia.com

Manila shares mixed late morning; profit-taking in PLDT, Globe weigh on index

     MANILA (AFX-ASIA) - Share prices were mixed in late morning trade, with profit-taking in PLDT and Globe Telecom pulling down the key index, as cautious investors stayed on the sidelines ahead of the May 10 presidential elections, dealers said.
     Some stocks, however, were attracting bargain-hunters, they added.
     At 11.34 am, the composite index was down 10.82 points or 0.69 pct at 1, 563.01 on volume of 64.1 mln shares worth 293.4 mln pesos.
     In the broader market, gainers led losers 17 to 14, with 28 stocks unchanged.
     Top-traded PLDT was down 30 pesos at 1,080 on 128,490 shares, while rival Globe Telecom was down 25 at 840 on 35,330 shares.
     Dealers, however, said investors remain upbeat about further growth prospects for the two telecom companies, which reported strong first-quarter earnings yesterday.
     PLDT posted unaudited first quarter to March net profit of 5.24 bln pesos, more than double the year-earlier level of 2.5 bln, on strong gains in the mobile phone segment.
     Globe reported net profit of 3.1 bln pesos for the same period, up 52 pct year-on-year, also due to earnings from the wireless business.
     "It's a sell on news as investors took a more cautious stance ahead of the May 10 elections," said Westlink Global Equities chairman Rommel Macapagal.
     "Investors prefer to stay on the sidelines waiting for the outcome of the elections."
     He also noted that PLDT's rise even ahead of the company's announcement of first quarter results yesterday was "overdone" so the stock needs to correct.
     (1 usd = 55.5 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines' PLDT, Globe weaker on profit-taking

     MANILA (AFX-ASIA) - Share prices of Philippine Long Distance Telephone Co (PLDT) and Globe Telecom Inc were weaker mid-session as investors locked in recent gains, dealers said.
     They added that investors are largely cautious with the presidential election just five days away, but remain upbeat about further growth prospects for the two telecom companies, which reported strong first-quarter earnings yesterday.
     PLDT was down 35 pesos at 1,075 on 55,970 shares.
     Globe Telecom was down 25 at 840 on 26,940 shares.
     PLDT posted unaudited first quarter to March net profit of 5.24 bln pesos, more than double the year-earlier level of 2.5 bln, on strong gains in the mobile phone segment.
     Globe reported net profit of 3.1 bln pesos for the same period, up 52 pct year-on-year, also due to earnings from the wireless business.
     "It's a sell on news as investors took a more cautious stance ahead of the May 10 elections," said Westlink Global Equities chairman Rommel Macapagal.
     "Investors prefer to stay on the sidelines waiting for the outcome of the elections."
     He also noted that PLDT's rise even ahead of the company's announcement of first quarter results yesterday was "overdone" so the stock needs to correct.
     (1 usd = 55.5 pesos)
     afxmanila@afxasia.com

Philippines' Universal Robina sets 40 mln usd capex budget for 2004

     MANILA (AFX-ASIA) - Universal Robina Corp (URC), the food manufacturing arm of the Gokongwei family, said it has budgeted 40 mln usd for capital expenditure this year, which will involve the expansion of its international and domestic food business.
     URC President and Chief Operating Officer Lance Gokongwei said 25 mln usd of the capex budget will be used to finance the expansion of the company's snack division in Indonesia and biscuit division in Thailand.
     The remaining 15 mln usd will be spent for the milling capacity expansion of its sugar plant and rehabilitation of its flour mill in the Philippines.
     afxmanila@afxasia.com

Philippine central bank- No policy change needed despite faster April CPI rise

     MANILA (AFX-ASIA) - Philippine monetary authorities do not see the need for the central bank to tighten its monetary policy at this stage despite the higher-than-expected 4.1 pct annualized inflation rate recorded in April, central bank deputy governor Amando Tetangco Jr said.
     "There is still no strong basis for (policy) change since the projected inflation (for 2004) is still within target range," he said.
     The headline inflation rate for the January-April period averaged 3.7 pct, still below the full-year government target of 4.0-5.0 pct.
     afxmanila@afxasia.com

Philippine April CPI up 4.1 pct yr-on-yr, up 0.5 pct mth-on-mth

     MANILA (AFX-ASIA) - The Philippines' consumer price index (CPI) in April rose 4.1 pct year-on-year, based on 1994 price series, compared with 3.8 pct in March, the National Statistics Office (NSO) said.
     That was slightly faster than the 3.8-4.0 pct forecasts of analysts polled by AFX-Asia. Inflation in April 2003 stood at 2.8 pct.
     Month-on-month, consumer price increases averaged 0.5 pct, compared with a revised 0.4 pct rise in March, the NSO said.
     However, the headline inflation rate for January-April averaged 3.7 pct, still below the full-year government target of 4.0-5.0 pct.
     Based on the 2000 price series, the annualized headline inflation rate stood at 4.2 pct in April, unchanged from March. The month-on-month rate stood at 0.5 pct compared with 0.3 pct in March.
     The NSO attributed the faster inflation rate in April mainly to the 0. 5-percentage point increase in the inflation rate for food, beverage and tobacco (FBT).
     The inflation rates for housing and repairs, and services also accelerated, it said.
     The inflation rates for FBT increased to 4.7 pct in April from 4.2 pct in March; housing and repairs, to 3.4 pct from 3.2 pct; and services, to 5.0 pct from 4.8 pct, the NSO said.
     However, the inflation rates for fuel, light and water slowed to 1.4 pct from 1.6 pct, and miscellaneous items to 1.9 pct from 2.0 pct.
     Inflation for clothing remained at 2.2 pct.
     For food alone, the inflation rate jumped by 0.6 percentage points to 5.0 pct in April from 4.4 pct in March.
     afxmanila@afxasia.com

Philippines' Universal Robina declares 0.30 peso/share cash div

     MANILA (AFX-ASIA) - Universal Robina Corp said it will pay a 0.30 peso per share cash dividend to shareholders on record as of June 3.
     Payment is set for June 29.
     The dividend is to be taken from the company's unrestricted retained earnings as of Sept 30, 1997, the food manufacturer told the stock exchange.
     (1 usd = 55.7 pesos)
     afxmanila@afxasia.com

Philippine April CPI up 4.1 pct yr-on-yr, up 0.5 pct mth-on-mth

Philippine business group opposes zero-coupon notes for Meralco refund -report

     MANILA (AFX-ASIA) - The Philippine Chamber of Commerce and Industry (PCCI) has objected to Manila Electric Company's (Meralco) proposal to refund overcharges to its commercial and industrial customers through the issuance of zero-coupon notes, the Philippine Daily Inquirer reported.
     The report quoted PCCI executive vice president Donald Dee as saying that while the group is not entirely against the proposal, its members want the notes to be interest-bearing.
     Meralco has been ordered by the Supreme Court to return overcharges dating back to 1994 to all its customers. It has almost finished the refund to residential customers, who were given two options - cash or credits to future billings.
     afxmanila@afxasia.com

Manila shares outlook - Mixed to higher on Wall St, telcos' growth prospects

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to higher on bargain-hunting, inspired by Wall Street's gains overnight and excitement over the growth prospects for telecom companies, dealers said.
     They said interest rate concerns should ease for now after the US Federal Reserve kept the policy rate unchanged, although it alluded to hikes in the coming months.
     Dealers, however, said investors will exercise greater caution as the presidential election is just five days away.
     Yesterday, the composite index closed up 11.18 points or 0.72 pct at 1, 573.83, boosted largely by gains in Philippine Long Distance Telephone Co (PLDT), which reported better-than-forecast first-quarter to March net profit, and in a few other blue chips.
     There were, however, 27 losers against 20 gainers, with some other blue chips down on profit-taking.
     Dealers said the focus may shift to PLDT rival Globe Telecom Inc today, after it reported, after the market closed yesterday, net profit of 3.1 bln pesos for the first quarter to March, up 52 pct year-on-year. It also announced the redemption in August this year of its 220 mln usd bonds due 2009.
     Globe shares were recently sold down on debt concerns.
     But dealers added that support for PLDT is likely to remain intact given that the company intends to resume the payment of dividends to common shareholders in early 2005, according to the company's President and Chief Executive Officer Napoleon Nazareno.
     PLDT posted unaudited first-quarter net profit of 5.24 bln pesos, more than double the year-earlier level of 2.5 bln, on strong gains in the mobile phone segment.
     Dealers said the market is also awaiting the first-quarter results of Ayala Land Inc, which will be released today, and those of parent Ayala Corp tomorrow.
     "The market is likely to remain in consolidation as investors remain cautious for the week since the presidential election is less than a week away," BPI Securities said in its daily report.
     "Bargain-hunters, however, will take advantage of market weakness to accumulate select stocks."
     (1 usd = 55.7 pesos)
     afxmanila@afxasia.com

Philippines' PLDT to resume div payout to common shareholders in 2005

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) intends to resume payment of dividends to common shareholders in early 2005, company president and chief executive officer Napoleon Nazareno said.
     "We shall restore dividends to common shareholders by the first quarter of 2005. It would start small but we would increase it and align it with regional telcos as our debt level declines and more cash is freed," he said at a news briefing.
     PLDT posted an unaudited, forecast-beating net profit in the first quarter to March of 5.24 bln pesos, more than double the year-earlier level of 2.5 bln, on strong gains in the mobile phone segment.
     (1 usd = 55.7 pesos)
     afxmanila@afxasia.com

ROUNDUP Philippines' PLDT, Globe post strong Q1 results; growth seen sustained

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) and Globe Telecom Inc reported strong first-quarter to March results today on the back of strong performance of their cellular businesses, giving analysts reasons to be more bullish about full-year prospects for both companies.
     Both PLDT and Globe are themselves optimistic about their potential for growth in a highly-competitive environment, as they continue to take uniquely innovative approaches in growing their businesses in the Philippine cellular market.
     PLDT announced an unaudited, forecast-beating first quarter net profit of 5.24 bln pesos, more than double the year-earlier level of 2.5 bln.
     Analysts polled by AFX-Asia had expected PLDT's profit for the first quarter to come in at around 3.5-5.0 bln pesos.
     Stock market investors cheered the results, with PLDT's share price rising to as high as 1,145 pesos before closing today at 1,110, representing a hefty gain from a low of less than 300 pesos around this time of the year in 2003.
     Globe Telecom's results came in after the market close, showing a 52 pct year-on-year rise in first quarter net profit to 3.1 bln pesos, which the company attributed to top-line growth and increased operational efficiency.
     PLDT's wholly-owned wireless unit Smart Communications Inc posted a net profit of 5.2 bln pesos in the first quarter, almost double its year-earlier level of 2.8 bln.
     The PLDT group's mobile phone subscribers totaled 14.4 mln as of end-March, after adding more than 1.4 mln new clients in the first quarter of the year.
     These include Smart's nearly 12 mln customers and Pilipino Telephone Corp's Talk 'N Text subscribers.
     Piltel, which is 45-pct owned by PLDT, added over 300,000 subscribers during the period.
     Globe, whose major shareholders are Ayala Corp and Singapore Telecom, said net subscriber additions in the first quarter reached 277,197, bringing its total number of subscribers to 9.1 mln as of end-March, 29 pct more than year-earlier level.
     "I believe there is fundamental reason why the Philippine cellular market continues to grow robustly," said PLDT chairman Manuel Pangilinan, who led the transformation of PLDT into one of Asia's highly-profitable companies.
     "It is simply because Philippine cellular providers have crafted their business strategies, and developed unique products and services in a way that matches the various market segments in our developing country," Pangilinan said in the 2003 annual report.
     He said this uniquely innovative Filipino approach proved more effective in boosting revenues than copying business models from overseas.
     Smart's lower denomination reload service for prepaid subscribers have yielded big revenues, as it allows low-income Filipinos to avail of the wireless service for as low as 30 pesos per reload.
     After the lower-denomination reload service, Smart introduced to the market another revenue-boosting scheme, this time allowing its subscribers to share their loads among themselves.
     Globe had a record number of gross additions in the first quarter -- 2.2 mln wireless subscribers. However, it said a high churn rate resulted in net additions of only 277,197.
     "This churn level reflects the subscribers who left the Globe network from June to October last year when the competitive over-the-air reload service (of Smart) was unchallenged," it said.
     "Most of these churned subscribers, however, were no longer revenue-generating and therefore did not impact financial performance in the first quarter."
     Globe launched its Globe Autoload Max in November last year and its own Share-a-Load service in January this year, and both schemes helped boost its prepaid reload volumes.
     "We continue to be optimistic over the potential of the wireless market in the Philippines and are well poised to take advantage of growth opportunities," Globe president and chief executive officer Gerardo Ablaza Jr said.
     Analysts agree that the next three quarters will see sustained, if not stronger gains, for PLDT and Globe.
     They see the volume of "text-messaging" and calls surging especially during this election season. The fourth quarter, however, is traditionally the strongest period for telecom firms in terms of revenues, they noted.
     "Given its performance in the first quarter, I think it's now easy for PLDT to post a full year net profit of as much as 20 bln pesos," said Accord Capital Equities analyst Lawrence de Leon.
     PLDT has initially projected a full year net profit of around 18 bln pesos for this year, or about 60 pct higher than last year's 11.2 bln.
     "Since this is an election year, telecom firms are really expected to post strong growth in profits," said Westlink Global Equities research head James Lago, who projects a "conservative" full-year net profit forecast of 16 bln pesos for PLDT.

     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Philippines' Jollibee Foods to list additional 80,769 shares tomorrow - PSE

MANILA (AFX-ASIA) - Jollibee Foods Corp will list an additional 80,769 common shares tomorrow (May 5), arising from its tandem stock purchase and option plan, a Philippine Stock Exchange circular said.
afxmanila@afxasia.com

Hong Kong art dealer, 2 other foreigners killed in Philippine resort

     BORACAY, Philippines (AFX-ASIA) - Police said they have launched a major murder investigation after four people, including Swiss-born Manfred Schoeni, who owns two art galleries in Hong Kong, and German property developer Anton Faustenhauser, were found dead at a luxury villa on Boracay island.
     The other victims were a British national and a Filipina maid, they said.
     The victims had been stabbed repeatedly and were found on Sunday morning at the German's three-storey villa built on a hill.
     The three-storey house was in disarray when police arrived, with the bodies of the three men found on the second floor while the maid's body was found in her room on the ground floor.
     Superintendent Remus Canieso, head of a special police team in Boracay, said two bladed weapons believed to have been used in the murder were recovered from a lavatory in the house.
     Police were interviewing 25 staff who worked at the property, and Canieso said a special investigating team had been brought in to probe the crime.
     The family of Faustenhauser were due to arrive in Boracay, some 300 kilometres south of Manila, later Tuesday and have requested the crime scene be left undisturbed.

Philippines' EEI to set up, list holding firm on PSE

     MANILA (AFX-ASIA) - Engineering and construction firm EEI Corp said it is planning to set up a holding company that will apply for listing on the Philippine Stock Exchange (PSE).
     EEI told the stock exchange that its board of directors is considering a listing by introduction for the holding firm, which required no initial public offering.
     "The board deliberated on a proposal for the company to form a holding company that will apply for listing under the recently formulated listing by introduction rule of the PSE through a swap of shares with EEI Corp," EEI said.
     "It was agreed that a letter of intent be filed with the PSE to determine if what the company proposes to do is qualified under the said rule on listing by introduction."
     afxmanila@afxasia.com

Philippines' PLDT declares cash div on Series IV preferred stock

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said its board today declared a cash dividend of 12.42 mln pesos on all of the company's Series IV cumulative non-convertible redeemable preferred stock.
     The dividend is payable on June 15 to holders on record as of May 26.
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Philippines' Globe Telecom Q1 net profit surges on mobile phone gains

     MANILA (AFX-ASIA) - Globe Telecom Inc said it posted a net profit of 3.1 bln pesos for the first quarter to March, up 52 pct year-on-year, on the back of top-line growth and increased operating efficiency.
     Globe, whose major shareholders are Ayala Corp and Singapore Telecom, said service revenue in the first quarter rose 16 pct year-on-year to 12.8 bln pesos, driven by growth in wireless subscriber take-up.
     Net subscriber additions in the first quarter reached 277,197, bringing its total number of subscribers to 9.1 mln as of end-March, 29 pct more than year-earlier level.
     "We are pleased with our financial performance in the first quarter, as it reflects both growth and the solid operational strenth of our underlying business," said Globe President and Chief Executive Officer Gerardo Ablaza Jr.
     "We continue to be optimistic over the potential of the wireless market in the Philippines and are well poised to take advantage of growth opportunities."
     Globe, in a statement, said operating costs and expenses grew by only 12 pct year-on-year to 5.2 bln pesos in the first quarter, thanks to "effective optimization of company resources."
     Earnings before interest, taxes, depreciation and amorization, or EBITDA, rose to 8.3 bln pesos, while EBITDA margins improved to 65 pct during the period, the company said, without giving comparative figures.
     Globe had a record number of gross additions in the first quarter -- 2.2 mln wireless subscribers. However, it said a high churn rate resulted in net additions of only 277,197.
     "This churn level reflects the subscribers who left the Globe network from June to October last year when the competitive over-the-air reload service was unchallenged," it said.
     "Most of these churned subscribers, however, were no longer revenue-generating and therefore did not impact financial performance in the first quarter."
     Globe said its prepaid reload volumes were boosted by its Globe Autoload Max, which was launched in November last year, combined with the Share-a-Load Service, launched in January this year.
      "The success of Globe's over-the-air service offering is expected to reduce churn going forward," the company said.
     Ablaza said Globe's main challenge moving forward lies in making its service more attractive to the mass market, which is where it sees growth coming from.
     As at end-March, Globe's total asset base stood at 140.9 bln pesos, with total debt dropping by 3.0 pct to 55.4 bln pesos from the previous year.
     Capital expenditure during first quarter amounted to 4.3 bln pesos, equivalent to 33 pct of service revenues.
     Free cash flow reached 3.5 bln pesos, 41 pct higher over the year-earlier level.
     Globe has budgeted 19.7 bln pesos for capital expenditure for the whole of 2004, primarily for the expansion of its wireless network.
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Manila shares close mixed; PLDT gains lift key index

     MANILA (AFX-ASIA) - Share prices closed mixed, with gains in Philippine Long Distance Telephone Co (PLDT) and some other blue chips helping the benchmark index finish in positive territory, dealers said.
     PLDT rallied on the back of its forecast-beating first quarter results announced during the session.
     Dealers said positive exports data for March and Wall Street's gains overnight also boosted buying interest in selected blue chips, despite caution due to the approaching May 10 national elections.
     The 30-company composite index closed up 11.18 points or 0.72 pct at 1, 573.83 on volume of 210.5 mln shares worth 674.2 mln pesos. It moved between 1,564.74 and 1,583.69.
     In the broader market, however, losers beat gainers 27 to 20, with 48 stocks unchanged.
     "The excitement ahead of the PLDT results fizzled out later in the session, when profit-taking set in," Accord Capital Securities analyst Lawrence de Leon said.
     "We think PLDT's rally early in the session was overdone. But it was PLDT that gave the market strong support even as investors are getting more cautious ahead of Monday's elections."
     PLDT said its net profit in the first quarter to March more than doubled to 5.24 bln pesos from 2.5 bln a year ago, on sustained strong gains in the mobile phone segment.
     That exceeded the forecasts of analysts polled by AFX-Asia, who had been expecting PLDT's profits to come in at around 3.5-5.0 bln pesos for the period.
     PLDT's wholly-owned wireless unit Smart Communications Inc posted a net profit of 5.2 bln pesos in the first quarter, almost double its year-earlier level of 2.8 bln.
     PLDT rose to as high as 1,145 pesos before closing at 1,110 on volume of 209,130 shares.
     De Leon said the positive exports data released by the government this morning also gave investors a reason to buy into select stocks.
     Merchandise exports increased 7.1 pct year-on-year in March to 3.35 bln usd, a bit slower than the previous month's 7.5 pct rise.
     Manila Electric B, available to foreign investors, rose 0.50 to 30.50 on 1.7 mln shares, while Meralco A was unchanged at 19.25.
     Meralco parent First Philippine Holdings was up 1.00 at 28.50.
     PLDT affiliate Pilipino Telephone Corp was up 0.06 at 1.64.
     Ayala Corp, which will announce its first quarter results on Thursday, was up 0.10 at 5.80, while unit Ayala Land was up 0.10 at 5.70 ahead of tomorrow's release of first quarter results.
     PLDT rival Globe Telecom, which will also release its first quarter results on Thursday, was unchanged at 865.
     Bank of the Philippine Islands was down 1.50 at 41.
     San Miguel A was up 0.50 at 60, while San Miguel B was unchanged at 74.50.
     The all-shares index was down 19.92 points at 953.11.
     The commercial-industrial index rose 29.07 to 2,470.28.
     Property advanced 8.12 to 553.49, while mining gained 10.66 to 1,403.00.
     Oil was up 0.02 at 1.20.
     Banking and financial services retreated 10.06 to 449.44.
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Philippines' PLDT group adds more than 1.4 mln wireless subscribers in Q1

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said its mobile phone subscribers totaled 14.4 mln as of end-March after adding more than 1.4 mln new clients in the first quarter of the year.
     It said wholly-owned unit Smart Communications Inc added more than 1.1 mln subscribers in the first quarter, with nearly 12 mln customers at end-March.
     Pilipino Telephone Corp (Piltel), which offers mobile phone services under the Talk 'N Text brand, added over 300,000 subscribers during the period, PLDT said in a statement.
     PLDT owns 45 pct of Piltel.
     "Compared to the first quarter of 2003, net subscriber additions increased by 83 pct, from 769,000 in last year's first quarter to over 1.4 mln during the first quarter this year," PLDT said.
     "Cellular penetration rates continue to exceed expectations, reaching approximately 30 pct at the end of March."
     PLDT said Smart's "exceptional" subscriber expansion has translated to strong growth in revenue, EBITDA (earnings before interest, taxes, depreciation and amortization) and net profit.
     Smart's net profit in the first quarter to March nearly doubled to 5.2 bln pesos from 2.8 bln a year ago.
     Smart's revenues rose to 14.7 bln pesos from 10.7 bln a year earlier, while EBITDA surged by 59 pct year-on-year to 9.7 bln as revenues grew more than expenses.
     EBITDA margins improved to 66 pct in the first quarter from 57 pct in the same period in 2003.
     PLDT said that as expected, the popularity of lower denomination reloads via Smart Load and Pasa Load resulted in a 12 pct fall in blended average revenue per unit (ARPU) of prepaid and postpaid subscribers.
     It said that more than 85 pct of Smart Buddy subscribers now reload their units electronically, while an even higher 94 pct of Talk 'N Text subscribers do the same.
     However, PLDT said the decline in ARPU did not affect Smart's margins, since the unit continues to drive down its subscriber acquisition costs.
     Smart's capital expenditure reached 3.5 bln pesos in the first quarter, which is expected to reach 15.0 bln for the whole of 2004, as demand shows no signs of slowing, PLDT said.
     Smart's free cash flow remained strong in the first quarter at 4.2 bln pesos, enabling it to pay off 25 mln usd of debt.
     Smart expects to pay 11.3 bln pesos as dividends to PLDT before the end of this month, representing 70 pct of its net profit in 2003.
     "I can only reaffirm our strong belief that we can break through the so-called ceiling to cellular market growth if we persevere in developing and offering innovative and affordable services to all segments of the market," PLDT President and Chief Executive Officer Napoleon Nazareno said.
     "We are determined to maintain our margins and healthy bottom line at Smart by increasing revenues whilst controlling costs."
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Philippines' PLDT Q1 net profit more than doubles on Smart's gains

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) said its net profit in the first quarter to March more than doubled to 5.24 bln pesos from 2.5 bln a year ago, on sustained strong gains in the mobile phone segment.
     That exceeded the forecasts of analysts polled by AFX-Asia, who had been expecting PLDT's profits to come in at around 3.5-5.0 bln pesos for the period.
     PLDT's wholly-owned wireless unit Smart Communications Inc posted a net profit of 5.2 bln pesos in the first quarter, almost double its year-earlier level of 2.8 bln.
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Philippines' PLDT Q1 net profit 5.24 bln pesos vs 2.5 bln

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co's (PLDT) first quarter to March unaudited results:
      Revenues - 27.1 bln pesos vs 22.74 bln
      Expenses - 16.62 bln pesos vs 15.65 bln
      Opg income - 10.47 bln pesos vs 7.09 bln
      Adjusted EBITDA - 16.35 bln pesos vs 12.76 bln
      Net profit - 5.24 bln pesos vs 2.5 bln
      Earnings per share (basic) - 28.32 pesos vs 12.15
      EPS (dilutive) - 26.74 pesos vs 11.31
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

STOCK ALERT - Philippines' PLDT firmer ahead of Q1 results today

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone (PLDT) was firmer mid-session ahead of the release of its first quarter results today, largely expected to show strong gains in the mobile phone segment, dealers said.
     PLDT was up 25 pesos at 1,100 on 11,970 shares.

     Its American Depositary Receipts advanced 0.25 usd to 19.91 in New York overnight.
     Analysts polled by AFX-Asia expect PLDT to post first quarter to March net profit in the range of 3.5-5.0 bln pesos, against 2.5 bln last year, driven by gains of unit Smart Communications Inc.
     (1 usd = 55.6 pesos)
     afxmanila@afxasia.com

Philippines' Wellex Industries suspended on PSE

MANILA (AFX-ASIA) - Trading in shares of Wellex Industries Inc has been suspended from today due to the company's failure to comply with reporting requirements, the Philippine Stock Exchange (PSE) said.
afxmanila@afxasia.com

Philippines March merchandise exports up 7.1 pct yr-on-yr

     MANILA (AFX-ASIA) - Merchandise exports increased 7.1 pct year-on-year in March to 3.35 bln usd, the National Statistics Office (NSO) said.
     It was a bit slower than the previous month's 7.5 pct rise that NSO reported earlier.
     First-quarter to March merchandise exports receipts rose 6.3 pct year-on-year to 9.19 bln usd. The government aims for a 10 pct full-year growth for 2004.
     Electronics exports, which accounted for 67.0 pct of total receipts in March, rose 9.8 pct year-on-year to 2.24 bln usd.
     Semiconductor exports accounted for 47 pct of total receipts. After a slump during the first two months of the year, they grew 6.4 pct year-on-year to 1.576 bln usd in March.
     Exports of articles of apparel and clothing accessories remained the country's second top earner with a combined share of 5.4 pct and aggregate receipts of 179.04 mln usd, down 6.3 pct year-on-year.
     Other products manufactured from materials imported on a consignment basis ranked third with total revenue of 60.65 mln usd, down 14.5 pct year-on-year.
     Exports of manufactured goods accounted for 89.7 pct of total March receipts and were valued at 3.004 bln usd, up 8.9 pct year-on-year.
     Japan was still the country's largest export market in March, accounting for 20.2 pct of total receipts. Exports to Japan were valued at 678.03 mln usd, up 41.9 pct year-on-year.
     The US followed with a 16.8 pct share, or total receipts of 561.68 mln usd, down 15.4 pct year-on-year.
     The Netherlands was in the third spot, with receipts of 391.85 mln usd, up 56.1 pct year-on-year.
     afxmanila@afxasia.com

DATAWATCH - Philippines' exports maintain momentum in March - DBS Bank

     MANILA (AFX-ASIA) - Philippine merchandise exports continued to benefit from the pick-up in global demand, with the March higher receipts showing the momentum was sustained, DBS Bank regional economist Chee Seng Wong said.
     Merchandise exports increased 7.1 pct year-on-year in March to 3.35 bln usd, the National Statistics Office (NSO) said, a bit slower than the previous month's 7.5 pct rise that NSO reported earlier.
     Electronics exports, which accounted for 67.0 pct of total exports receipts in March, rose 9.8 pct year-on-year to 2.24 bln usd.
     "I don't look at it as a slowdown. I think the momentum was maintained as Philippine electronics exports continued to benefit from higher global demand despite very strong competition with its neighbors," Wong said.
     However, he said the government's full-year growth target of 10 pct for exports seems too bullish given the relatively weak gains seen in the first quarter compared with those of its Asian neighbors.
     Wong said Philippine exports may grow 6-7 pct year-on-year in 2004.
     afxmanila@afxasia.com

Philippines' Globe raises 100 mln usd via 5-yr loan facility to finance capex

     MANILA (AFX-ASIA) - Globe Telecom Inc said it has raised 100 mln usd via a five-year loan agreement with the Singapore branch of Norddeutsche Landesbank Girozentrale.
     The loan carries a floating interest rate, it said, with the proceeds to be used to finance part of the capital expenditure requirements of the Philippines' second-ranked mobile phone service provider.
     It will specifically finance Globe's network expansion, the company said in a statement.
     afxmanila@afxasia.com

Philippines' Napocor to raise 20 bln pesos via domestic bond issue - report

     MANILA (AFX-ASIA) - State-owned National Power Corp (Napocor) plans to issue 20 bln pesos worth of bonds on the domestic market to partly cover its financing needs for this year, the Philippine Daily Inquirer reported, citing a First Metro Investment Corp (FMIC) official.
     FMIC executive vice president Robert Juanchito Dispo said FMIC and Deutsche Bank were interested in helping Napocor raise funds through the planned domestic borrowing.
     (1 usd = 55.7 pesos)
     afxmanila@afxasia.com

Philippines' Meralco sees cash deficit in Q3 on debt payments - report

     MANILA (AFX-ASIA) - Manila Electric Co (Meralco) expects to incur a cash deficit in the third quarter of this year as it plans to pay some debt maturing in September and October, BusinessWorld newspaper reported, citing company president Jesus Francisco.
     Meralco had expected to incur the deficit as early as the first quarter of this year.
     "The deficit will be moved back to the third quarter because the sales we had for the first quarter were better than forecast ... and the refund is not as much as originally projected," Francisco was quoted as saying.
     The power retailer is now implementing the third phase of refunding overcharged amounts, covering customers with monthly consumption of more than 300 kilowatthours.
     The paper quoted Meralco Chief Finance Officer Daniel Tagaza as saying that the firm has long-term obligations of 1.2 bln pesos falling due in September, and another 1.4 bln in October.
     (1 usd = 55.7 pesos)
     afxmanila@afxasia.com

Manila shares outlook - Mixed to higher on Wall Street gains; PLDT in focus

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to higher on sustained bargain-hunting, with PLDT, scheduled to report its first quarter results this morning, in focus, dealers said.
     They said Wall Street's gains overnight also provide a positive backdrop.
     However, investors are expected to be cautious and quick to lock in any gains, with the national elections just six days away.
     Yesterday, the composite index closed up 7.64 points or 0.49 pct at 1,562. 65.
     "The market is likely to remain in consolidation. PLDT is likely to take center stage," BPI Securities said in its daily report.
     Analysts polled by AFX-Asia expect Philippine Long Distance Telephone Co to post first quarter net profit in the range of 3.5-5.0 bln pesos, against 2. 5 bln last year, driven by its mobile phone business through unit Smart Communications Inc.
     "Bargain hunters, however, will take advantage of market weakness to accumulate select stocks," BPI said.
     It sees the market's support at 1,500 and resistance at 1,572.
     (1 usd = 55.7 pesos)
     afxmanila@afxasia.com