NEWS

FOCUS - Philippine markets cheer Arroyo poll lead but political worries remain

     ---- By Enrico de la Cruz ----
     MANILA (AFX-ASIA) - Philippine shares rebounded and the peso recovered some lost ground as investors cheered the results of a major nationwide exit poll showing incumbent Gloria Arroyo winning a fresh six-year mandate in Monday's presidential election.
     But analysts said investors remain largely cautious as supporters of Arroyo's main rival, film star Fernando Poe, have complained of vote-rigging and warned of mass protests similar to the "People Power" uprising that forced Joseph Estrada out of office in 2001 and dictator Ferdinand Marcos in 1986.
     Poe's political party has issued a statement warning of a "repeat of the people power" if "the voice of the people was not heard and if the counting of the election turnout was tainted with fraud."
     Investors, however, welcomed the results of the exit poll conducted by the Social Weather Stations (SWS), with the stock market's 30-company composite index closing up 32.70 points, or 2.17 pct, at 1,540.96 today, rebounding from yesterday's losses as bargain-hunters re-entered the market.
     The SWS poll showed Arroyo won 41 pct of the votes cast last Monday, against Poe's 32 pct. This translates to a lead of over 3 mln votes for US-trained economist Arroyo, who was favored by financial markets over the high school dropout Poe.
     At the Philippine Dealing System, the peso closed at 55.84 to the US dollar after falling to as low as 56.070 yesterday before closing at 55.98.
     "The SWS poll gives investors a picture of who's going to be the president. With Arroyo likely going into a fresh six-year mandate, that would mean continuity in the programs and reforms that her government has started," Regina Capital Development Corp analyst Gomer Tan said.
     But ING Financial Markets, in its daily report, said that while the SWS exit poll shows Arroyo winning by the same margin that she enjoyed in the final pre-election opinion polls, investors are keeping an eye on the moves of Poe's supporters.
     "Fernando Poe Jr is complaining about (voting) fraud and his supporters could cause instability, which is what we are monitoring," ING said.
     Jose Vistan Jr, research director at AB Capital Securities, said "market conditions are likely to remain volatile in the short term" given concerns of political unrest especially if the opposition decides to ask for a declaration of failure of elections because of alleged cheating.
     However, he believes that the long-term scenario "appears promising, especially if the trend of the (vote) counting doesn't reverse."
     Initial unofficial vote tallies conducted by various groups show Arroyo enjoying a slim lead over Poe. But the official count is expected to be completed in nearly a month.
     This prompted Poe's camp to also blame the media for alleged "trending."
     Last night, thousands of Poe's supporters held a street rally in Manila's financial district of Makati on Tuesday, shortly after the SWS exit poll results were announced.
     They vowed to go back to the streets if Arroyo is proclaimed winner of the presidential race.
     Amid threats of mass protests from her political opponents, Arroyo has appealed for people to be calm.
     "The president is reaching out to all Filipinos to leave any residual rancour or animosity behind and buckle down to work and normalcy," said Arroyo spokesman Ignacio Bunye.
     "We have had enough of political bickering and desperate attempts to grab power over the last three years and we are hoping the election has already settled these political issues."
     Arroyo, however, appears ready to begin a new term, as she has called a cabinet meeting for Friday to begin implementing her campaign pledges, according to a presidential statement released today.
     The statement said that on May 14 Arroyo will hold her first post-election cabinet meeting to discuss implementing pledges made in her campaign for the May 10 presidential election.
     Arroyo's campaign pledges included creating a million new jobs a year, bringing clean water to all villages, extending electrical service to isolated districts, cutting the costs of medicine and electricity, putting computers in all schools, and increasing scholarships and loans to small businesses.
     afxmanila@afxasia.com

Philippines' Nenaco to ask SEC to reconsider penalty

     MANILA (AFX-ASIA) - Shipping firm Negros Navigation Co (Nenaco) said it will ask the Securities and Exchange Commission (SEC) to reconsider a decision penalizing the company for failure to disclose its debt position in a late 2003 report.
     The SEC, which has imposed a 75,000-peso fine on the company, said Nenaco did not reflect the actual liquidity position of the company in its 2003 third quarter report when it failed to disclose that it was then at the height of negotiations for a debt payment suspension. The Manila Regional Trial Court has approved Nenaco's petition to suspend payment of its debts.
     Metro Pacific, a local unit of Hong Kong-listed First Pacific Co Ltd, currently holds 97.6 pct of Nenaco's outstanding shares.
     afxmanila@afxasia.com

Philippines' Arroyo starts on campaign pledges ahead of vote result

     MANILA (AFX-ASIA) - President Gloria Arroyo has called a cabinet meeting for Friday to begin implementing her campaign pledges, according to a presidential statement released today, ahead of the official results of this week's election.
     The statement said that on May 14 Arroyo will hold her first post-election cabinet meeting to discuss implementing pledges made in her campaign for the May 10 presidential election.
     Arroyo's campaign pledges included creating a million new jobs a year, bringing clean water to all villages, extending electrical service to isolated districts, cutting the costs of medicine and electricity, putting computers in all schools, and increasing scholarships and loans to small businesses.
     Official results are not expected for several weeks due to the manual counting of votes as the Supreme Court has ruled against the use of computers for the purpose.
     But Arroyo campaign spokesman Mike Defensor earlier cited an exit poll by the independent Social Weather Stations group late yesterday that predicted Arroyo would win 41 pct of the vote compared to 32 pct for opposition candidate Fernando Poe, a popular local film star.
     Defensor said the exit poll findings made him "confident" Arroyo would eventually be declared the victor.
     "With the election over, the president wants to immediately begin work on her governance agenda," the presidential statement said.
     There was no mention of Arroyo declaring victory.
     Asked if Arroyo's actions amounted to prematurely declaring herself the winner, presidential palace spokesman Ricardo Saludo said: "It's just a statement of fact."
     Mike Romero, spokesman for Poe's Coalition for United Filipinos (KNP), said the party's own exit polls showed Poe leading Arroyo two-to-one and early results in Manila showed Poe leading.
     A statement from Poe's camp said another popular uprising "will surely come out if the voice of the people is not heard," and if the elections prove fraudulent.

Philippine Treasury raises 3.54 bln pesos via 4-yr bond reissue

     MANILA (AFX-ASIA) - The Bureau of Treasury said it raised 3.54 bln pesos at today's re-issuance of four-year T-bonds at a coupon rate of 11.375 pct.
     Tenders totaled 5.41 bln pesos against an offering of 4.0 bln.
     Bids ranged from 10.625 pct to 10.975 pct, or an average of 10.817 pct, compared with the previous average of 10.609 pct.
     The bonds were originally issued last April 1.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippines' Metro Pacific says exploring ways to 'reposition' unit Nenaco

     MANILA (AFX-ASIA) - Metro Pacific Corp said it is exploring a number of potential avenues to "reposition" its financially-troubled shipping unit Negros Navigation Co (Nenaco).
     In a disclosure to the stock exchange, Metro Pacific neither confirmed nor denied a newspaper report that said that Nenaco may be spun off into a separate entity to shield the parent from its liquidity problems.
     "At this time the vehicle or structure of such a transaction has yet to be decided and presented to the Metro Pacific board of directors for approval, " Metro Pacific said.
     The company added it has initiated a comprehensive internal audit and review of Nenaco's business and operations to deal with areas with deficiencies. It did not elaborate.
     The Manila Regional Trial Court earlier granted Nenaco's petition for an immediate suspension of payment of more than 2 bln pesos worth of debts, which is the first step towards the implementation of the shipping firm's rehabilitation program.
     Metro Pacific is a local unit of the Hong Kong-listed First Pacific Co Ltd.
     (1 usd = 55.9 pesos)
     cecille.yap@afxasia.com

Manila shares close higher on Wall St gains, predicted Arroyo win

     (Updating with analyst comment, share prices)
     MANILA (AFX-ASIA) - Share prices closed sharply higher on the back of Wall Street's overnight gains and as investors welcomed the result of a major exit poll indicating victory for incumbent president Gloria Arroyo, dealers said.
     Dealers said the local market's rebound was also helped by gains in other regional bourses.
     The 30-company composite index closed up 32.70 points or 2.17 pct at 1, 540.96 on volume of 166.9 mln shares worth 477.5 mln pesos. It moved between 1,512.21 and 1,547.00.
     Gainers dominated losers 30 to 10, with 45 stocks unchanged.
     In the currency market, the peso also regained lost ground, averaging 55. 867 pesos at the end of the morning trade from yesterday's close of 55.98. Total volume reached 167 mln usd.
     Top-traded Philippine Long Distance Telephone Co closed up 35.00 pesos at 1,060 on 125,220 shares, as it tracked the overnight gains of its American Depositary Receipts, which closed up 0.39 usd at 18.66.
     An exit poll conducted by the Social Weather Station showed that Arroyo, the financial markets' favorite, is likely to have defeated her main rival, filmstar Fernando Poe Jr, in the presidential election.
     The SWS poll showed that Arroyo garnered 41 pct of the vote as against Poe's 32 pct. Another independent poll conducted by the National Movement for Free Elections (NAMFREL) also showed Arroyo leading the race.
     "Investors have somewhat started to calm down. The conduct of the election was generally peaceful and the result of a major exit poll indicated there will be continuity in the reforms and programs of the government," Regina Capital Development Corp analyst Gomer Tan said.
     Dealers said yesterday's sharp decline in the market also gave investors enough leeway to re-enter the market.
     "Today's rise is more a technical rebound than anything and the Philippines is not an isolated case. A lot of investors in the US who were caught long pulled out their money in Asia (earlier this week). We now see things settling down in the region," Westlink Global Equities research head James Lago said.
     Manila Electric B, open to foreigners, gained 0.50 peso to 32 on 2.65 mln shares. Meralco A was up 0.50 at 20 on 61,700 shares.
     Meralco's parent firm First Holdings was up 1.00 at 28.50.
     Globe Telecom was up 30 at 845. The company has denied newspaper reports that it expects to book a net profit of 15 bln pesos this year.
     Bank of the Philippine Islands was up 1.50 at 41.50.
     The all-shares index was up 2.16 at 938.10, while the commercial-industrial index gained 55.17 to 2,407.97.
     The property sector was up 1.40 at 540.61, while mining shed 13.02 to 1, 362.25.
     Oil was unchanged at 1.20, while banking and financial services gained 9. 76 to 450.79.
     Dealers said there is room for further bargain-hunting tomorrow, with Wall Street's performance tonight likely to set the direction.

     cecille.yap@afxasia.com

Philippines' Arroyo appeals for calm, opposition alleges election fraud

     MANILA (AFX-ASIA) - President Gloria Arroyo today appealed for people to be calm as financial markets welcomed an exit poll predicting her election victory and the opposition alleged massive government fraud.
     Arroyo spokesman Ignacio Bunye called on the people of the Southeast Asian nation to bury differences over Monday's disputed polls and to wait patiently for the official results, expected to take up to a month.
     "The president is reaching out to all Filipinos to leave any residual rancour or animosity behind and buckle down to work and normalcy," said Bunye.
     "We have had enough of political bickering and desperate attempts to grab power over the last three years and we are hoping the election has already settled these political issues."
     An exit poll that the independent Social Weather Stations group conducted late yesterday predicted that Arroyo would win 41 pct of the vote, compared to 32 pct for opposition candidate and popular local film star Fernando Poe Jr.
     If the poll results are confirmed, Arroyo will secure victory a six-year mandate with a margin of over 3 mln votes. She assumed the presidency in 2001 after a military-backed uprising deposed predecessor Joseph Estrada.
     Philippine stocks were up over 2 pct in morning trade and the peso firmed against the US dollar as the financial markets warmed to a prospect of a win for Arroyo, a US-trained economist the business elite supports.
     "The SWS poll gives investors a picture of who's going to be the president. With Arroyo likely to get a fresh six-year mandate, it would mean continuity in the programs and reforms," said Regina Capital Development Corp analyst Gomer Tan.
     The prospect of a Poe presidency alarmed the markets and the peso sank to its lowest level against the dollar in January, when the film star, who left school at 15 and has no government experience, was leading opinion polls.
     However, Poe's camp rejected the SWS exit poll and accused Arroyo of trying to rig the count. It has alleged widespread vote-buying, intimidation and other irregularites on the part of the government.
     Mike Romero, spokesman for Poe's Coalition for United Filipinos (KNP), said their own exit polls showed the candidate leading Arroyo two-to-one. He also said early results in Manila showed Poe leading.
     "These are the actual results of the votes of the people and not just exit polls," Romero said in a television interview.
     Several thousand Poe supporters gathered in front of the stock exchange in Manila's Makati financial district late yesterday chanting "Gloria Cheat", but the gathering dispersed without trouble.
     The official Commission on Elections has given no details of the progress of its laborious manual count.
     The independent National Movement for Free Elections (Namfrel), a watchdog body sanctioned to carry out a "quick count", has counted 1.33 pct of votes and gave Poe a slim lead with 170,749 votes compared to 136,195 for Arroyo.
     However, Namfrel chairman Jose Concepcion said the results were too small to point to any possible winner.
     The ABS-CBN television network said its own count had tallied 4.5 pct of the vote, or 1.6 mln ballots, giving Arroyo 36.37 pct and Poe 34.88 pct.
     The presidential election was only the third in the mainly Roman Catholic country of 85 mln people since the downfall of dictator Ferdinand Marcos 18 years ago, and it has been bitter.
     At least 114 people were killed during the campaign, amid allegations that elements within the armed forces would launch a coup if their favored candidate lost.
     Poe ran on his celluloid reputation as "Mr Clean" and tapped into anger among many poorer voters over the toppling of his friend and former president Estrada, while Arroyo played on her economic background and experience.

Philippines' Jollibee plans to launch Indonesia business in 2005

     MANILA (AFX-ASIA) - Jollibee Foods Corp said it plans to set up shop in Indonesia next year, if ongoing studies show operations there are feasible.
     Chief finance officer Ysmael Baysa was earlier quoted in a newspaper report as saying that two Jollibee stores may be set up in Indonesia.
     Another report said the Philippines' largest food chain operator may open a branch of its Chowking Chinese fast food chain in Indonesia.
     "The implementation of these plans will become certain only when our tests and studies will have been completed," Jollibee told the Philippine Stock Exchange, without going into specifics.
     Jollibee already operates stores in Hong Kong and the US and plans to open outlets in Shanghai, Beijing or Guangzhou in China.
     It now has 989 outlets worldwide, namely 468 Jollibee stores, 248 Chowking store, 213 Greenwich stores and 27 Delifrance branches in the Philippines and 33 stores abroad.
     afxmanila@afxasia.com

Philippines' Negros Navigation seeks BIR advise on tax payment

     MANILA (AFX-ASIA) - Shipping firm Negros Navigation Co Inc (Nenaco) said its rehabilitation receiver has formally sought guidance from the Bureau of Internal Revenue (BIR) for the settlement of its tax obligations in light of its cash flow problems.
     The Metro Pacific Corp unit said rehabilitation receiver Sulfico Tagud Jr has written to BIR Commissioner Guillermo Parayno "for guidance on the best way for Nenaco to settle its outstanding tax liabilities, taking into consideration the fact that Nenaco is under rehabilitation and that its cash flows are very limited."
     Nenaco's tax liabilities reportedly total 424.5 mln pesos.
     The Manila Regional Trial Court recently granted Nenaco's petition for an immediate suspension of debt payments, the first step in the implementation of a rehabilitation program.
     Trading in Nenaco shares on the stock exchange remains suspended.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Manila shares firmer on Wall Street gains, predicted Arroyo win

     MANILA (AFX-ASIA) - Share prices sharply rose in mid-trade in line with Wall Street's modest recovery last night and as investors welcomed the results of a major exit poll indicating victory for market-favorite, incumbent President Gloria Arroyo, dealers said.
     At 10.25 am, the composite index was at its highest intra-day level, up 30.77 points or 2.04 pct at 1,539.03 on volume of 107.55 mln shares worth 200. 21 mln pesos. It opened at its lowest level of 1,512.11.
     In the broader market, gainers outnumbered losers 26 to 3, while 23 stocks were unchanged.
     A major exit poll conducted by the Social Weather Station (SWS) showed US-trained economist Arroyo is likely to have defeated film star Fernando Poe Jr, taking 41 pct of the vote as against the opposition candidate's 32 pct.
     Another independent poll conducted by the National Citizen's Movement for Free Elections also indicated the incumbent enjoying a slim lead over her rival.
     "The SWS poll gives investors a picture of who's going to be the president. With Arroyo likely going into a fresh six-year mandate, that would mean continuity in the programs and reforms that her government has started," Regina Capital Development Corp analyst Gomer Tan said.
     Ayala Land was so far top-traded, although unchanged at 5.60 pesos on volume of 9.7 mln shares.
     Second most active Philippine Long Distance Telephone Co (PLDT) recovered from yesterday's sharp decline, gaining 35 to 1,060 on volume of 42,050 shares.
     Dealers said PLDT tracked the performance of its American Depositary Receipts (ADRs) in New York last night, which gained 0.39 usd to 18.66 on Wall Street's recovery.
     Manila Electric B, open to foreigners, gained 1.00 at 32.50. Meralco A was up 0.50 at 20.
     Meralco's parent firm First Holdings was up 1.00 at 28.50.
     Globe Telecom was up 25 at 840. The company has denied newspaper reports that it expects to book a net profit of 15 bln pesos this year. It did not give any estimate.
     Bank of the Philippine Islands was up 1.00 at 41.
     The all-shares index was up 6.14 at 942.08.
     The commercial-industrial index gained 49.59 to 2,402.39.
     The property sector was up 2.20 at 541.41.
     Oil was unchanged at 1.20, while banking and financial services gained 8. 67 to 449.70.
     Dealers said bargain-hunting is likely to continue for the remainder of the session as yesterday's sharp correction has given investors enough room to accumulate select cheap stocks.
     The main index's support is seen at 1,490 and resistance at 1,550.
     (1 usd = 55.88 pesos)
     cecille.yap@afxasia.com

Philippines' Banco de Oro Q1 net profit 403.0 mln pesos

     (company corrected its previously reported net profit figure as well as the comparative figure)
     MANILA (AFX-ASIA) - Banco de Oro Universal Bank said its first quarter to March net profit rose 50.7 pct year-on-year to 403.0 mln pesos, not 427.2 mln as disclosed earlier.
     In a letter to the stock exchange, the bank also said its net profit for the first quarter of last year stood at 267.4 mln pesos, not 283.9 mln as previously reported.
     Operating expenses in the first quarter this year totaled 1.0 bln pesos, while capital funds stood at 15.24 bln.
     "These corrections are made necessary due to clerical errors in the elimination of certain accounts," Banco de Oro said.
     According to the bank's earlier statement, its first quarter net profit grew on the back of higher net interest income and lower operating expenses.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippine peso recovery due to stronger regionals - Tetangco

     MANILA (AFX-ASIA) - Central bank deputy governor Amando Tetangco Jr attributed the peso's recovery in early trade today to the strong performance of the Japanese yen and other regional currencies against the US dollar.
     A major exit poll indicating victory for market-favorite and incumbent President Gloria Arroyo in Monday's elections was also a factor behind the local unit's gains, he said
     "The market had reacted in certain ways to survey results in the recent past. This has most likely not changed," Tetangco told AFX-Asia, referring to an exit poll conducted by the Social Weather Station which showed Arroyo is set for six more years in office.
     As of 9.38 am, the peso has so far averaged 55.874 to the US dollar, posting gains from yesterday's close of 55.98. Total volume turnover has so far reached 41 mln usd.
     The local currency's performance was in line with the Japanese yen, which recovered overnight as the US dollar fell back from its eight-month high.
     The SWS exit poll showed Arroyo garnering 41 pct of the vote in Monday's election compared to 32 pct for rival, film star Fernando Poe Jr.
     The poll said 81.5 pct of the Philippines' 43.5 million voters took part in th elections, giving Arroyo victory by over 3 mln votes. The poll questioned 4,627 voters and the margin of error was 1.5 pct.
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' PLDT firmer early in line with ADR gain

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) was firmer in early trade, tracking the recovery of its American Depositary Receipts (ADRs) in New York last night.
     PLDT is so far top-traded, up 25 pesos at 1,050 on 35,520 shares.
     Its ADRs gained 0.39 usd to 18.66 overnight.
     Dealers added that bargain-hunters have begun to accumulate PLDT shares after yesterday's sharp fall, in which they shed as much as 50 pesos to 1,025 per share.
     (1 usd = 55.88 pesos)
     cecille.yap@afxasia.com

Forex - Philippine peso gains ground as exit poll shows Arroyo win

     MANILA (AFX-ASIA) - The peso recovered some lost ground after a major exit poll showed that incumbent Gloria Arroyo may have won a fresh six-year mandate in Monday's presidential election, dealers said.
     However, they said the local unit's recovery was subdued amid concerns that supporters of Arroyo's closest rival, film star Fernando Poe Jr, may stage mass protests alleging electoral fraud.
     The peso rose to as high as 55.87 to the dollar immediately after the open, and averaged 55.898 as of 9.10 am on volume of 15 mln usd. It closed at 55.98 yesterday after falling to as low as 56.070 amid the dollar's across-the-board strength.
     "There's an initial euphoria as the exit poll shows Arroyo is heading for a fresh six-year term," a commercial bank dealer said.
     "But the market is still cautious given the possibility of violence or any untoward incident as the opposition is now questioning the credibility of initial results."
     Arroyo won 41 pct of the votes cast in Monday's elections, compared to 32 pct obtained by Poe, based on the results of a nationwide exit poll held by the Social Weather Stations, which was sponsored by ABS-CBN Broadcasting Corp and the Philippine Star.
     The announcement early last night followed the opposition's move to question the ballot's credibility after alleged widespread irregularities.
     The poll questioned 4,627 voters, with the margin of error at 1.5 pct.
     Shortly after the poll results were released, hundreds of Poe supporters held a mass rally in Manila's financial district of Makati, chanting "Gloria Cheat" and "FPJ, FPJ", Poe's initials.
     Poe supporters accused the administration of trying to rig the vote count, vote-buying and instigating power black-outs aimed at sowing confusion during counting.
     Poe said his group's own tallies showed he was ahead in the vote count, contrary to what the media were reporting based on the initial results of various quick counts conducted by several groups, which showed Arroyo leading the race.
     The currency dealer said the peso may still trade as low as 56 today given worries over post-election security and law and order concerns.
     afxmanila@afxasia.com

Manila shares outlook - Mixed to higher on Wall St gains, expected Arroyo win

     MANILA (AFX-ASIA) - Share prices will likely open mixed to higher in line with Wall Street's modest recovery overnight and after a major exit poll predicted elections victory for market favorite President Gloria Arroyo.
     Dealers said the market is due for some bargain-hunting after yesterday's sharp decline, which saw the main index posting its lowest close in three weeks.
     Yesterday, the 30-company composite index closed down 46.43 points or 2. 99 pct at 1,508.26 on volume of 128.69 mln shares worth 569.21 mln pesos. This level was the index's lowest close since April 19, when it ended at 1, 497.48.
     A major exit poll conducted by the Social Weather Station (SWS) showed US-trained economist Arroyo is likely to have defeated film star Fernando Poe Jr, taking 41 pct of the vote as against the opposition bet's 32 pct.
     Another independent poll conducted by the National Citizen's Movement for Free Elections also indicated the incumbent enjoying a slim lead over her rival.
     "Domestic uncertainties on the final tally for the Philippines' newly officiated government coupled by Wall Street's recent sharp sell-off might keep fund managers on their toes for now," 2TradeAsia.com said.
     Accord Capital Equities analyst Ron Rodrigo said an Arroyo victory would most likely be welcomed by the market, but added concerns of rising interest rates in the US may continue to undermine sentiment.
     "It's not only the Philippine election that investors are concerned about. There are other risks elsewhere in the region such as threats of rising US interest rates and higher oil prices," Rodrigo said.
     The main index is seen supported at 1,490, with resistance at 1,525, dealers said.
     "There's nothing alarming regarding (yesterday's) overall weakness, considering corrections which neighboring countries in Asia have succumbed to, " 2TradeAsia.com said.
     The SWS poll said 81.5 pct of the Southeast Asian nation's 43.5 mln voters took part, giving Arroyo victory by over 3 mln votes. The poll questioned 4,627 voters and the margin of error was 1.5 pct.
     The official count is not to be expected for nearly a month.
     (1 usd = 55.98 pesos)
     cecille.yap@afxasia.com

Philippines' Nenaco penalized for non-disclosure of debts in report

     MANILA (AFX-ASIA) - The Securities and Exchange Commission (SEC) has fined shipping firm Negros Navigation Co (Nenaco) for failure to disclose its debt position.
     A fine of 75,000 pesos was imposed on Nenaco after the company failed to reflect its actual liquidity position in its 2003 third quarter financial report.
     Nenaco, in a letter early this month, informed the SEC that it was in the thick of negotiations last year for the restructuring of its debts, but the SEC said this was not mentioned by the company in its report.
     "Please note that nowhere in the company's third quarter report could we find that it is in the said process of negotiation. What were stated... are statements which do not reflect the actual liquidity position of the company, " the SEC said.
     The Manila Regional Trial Court earlier granted Nenaco's petition for an immediate suspension of debt payments, seen as the first step towards the implementation of the shipping firm's rehabilitation program.
     Metro Pacific, a local unit of Hong Kong-listed First Pacific Co Ltd, currently holds 97.6 pct of Nenaco's outstanding shares.
     (1 usd = 55.98 pesos)
     cecille.yap@afxasia.com

Philippines' Globe Telecom denies 15 bln peso 2004 net profit forecast

     MANILA (AFX-ASIA) - Globe Telecom Inc has denied newspaper reports that it is expecting to book a net profit of 15 bln pesos this year.
     "We would like to state that while our President and CEO Gerardo Ablaza Jr did state that our company would 'try to sustain the growth in financials from the first quarter,' this statement alluded to the overall financial and operation performance of the company and not to a specific net income or subscriber base target," Globe said in a statement.
     "Mr. Ablaza did not specify a 15 bln peso net income target for 2004," it added.
     Globe posted a first quarter to March net profit of 3.1 bln pesos, up 52 pct year-on-year.
     The number of its mobile phone subscribers increased to around 9.5 mln as of end-April from 9.1 mln as at end-March.
     (1 usd = 55.98 pesos)
     cecille.yap@afxasia.com

Philippines' Arroyo wins 41 pct of votes vs Poe's 32 pct in exit poll

     MANILA (AFX-ASIA) - Incumbent president Gloria Arroyo won 41 pct of the votes cast in yesterday's presidential elections, compared to 32 pct obtained by her closest rival Fernando Poe, based on the results of a nationwide exit poll held by the Social Weather Stations (SWS) and ABS-CBN Broadcasting Corp.
     The announcement, broadcast by ABS-CBN, follows the opposition's move to question the ballot's credibility after widespread irregularities.
     The poll questioned 4,627 voters, with the margin of error at 1.5 pct.
     Former police chief Panfilo Lacson won nine pct, while reformer Raul Roco and television evangelist Eddie Villanueva each won five pct, the poll showed. Eight percent of those polled declined to give an answer.
     The group said an estimated 81.5 pct of the 43.5-mln strong electorate took part in the nationwide elections.
     The projected winning margin represents over 3 mln votes.
     The predicted margin of victory is higher than opinion polls estimated in the run-up to the vote. The last SWS poll gave Arroyo a lead of around seven percentage points over Poe.
     The exit poll also said Arroyo's running-mate Noli de Castro would win the direct election for vice president with 47 pct of the vote, compared to 39 pct for opposition candidate Loren Legarda.
     Poe supporters accused the administration of trying to rig the vote count, v ote-buying and and instigating power black-outs aimed at sowing confusion during counting.
     "The widespread irregularities could throw into doubt the validity of the election results in many parts of the country," an opposition statement said.
     Poe said opposition tallies indicated he was ahead in the count. "And to the government, do not resort to intimidating and frightening people," he said.
     Arroyo urged Filipinos to respect the results of the elections.
     "All must now conduct themselves with prudence, sobriety and respect for the democratic process," she told reporters in a news briefing at the presidential palace.
     The complete official results of yesterday's elections are not expected to be out for nearly a month.

Arroyo heading for new 6-yr term as Philippine president - exit poll

MANILA (AFX-ASIA) - An exit poll by the independent Social Weather Stations showed President Gloria Arroyo heading for a fresh six-year term in office with a 41 pct victory over challenger Fernando Poe's 32 pct of votes in yesterday's national elections.
The poll questioned 4,627 voters, with a margin of error of 1.5 pct.

Arroyo urges clean count amid criticism of Philippine polls, slow tally

     MANILA (AFX-ASIA) - President Gloria Arroyo appealed for honest counting of yesterday's election results, which has been slowed by a manual tally due to a Supreme Court ban on computers, while the opposition questioned the ballot's credibility amid accusations of widespread irregularities, officials said.
     A manual count from yesterday's polls is scheduled to last up to 25 days, but a first credible exit poll is due at 1000 GMT today. Final opinion polls before the vote predicted an Arroyo victory.
     A final opinion poll ahead of the elections gave Arroyo a lead of seven percentage points over movie star and opposition candidate Fernando Poe.
     Poe supporters accused Arroyo of trying to rig the vote count and alleged a litany of abuses including vote-buying and deliberate power black-outs aimed at sowing confusion during counting.
     "The widespread irregularities could throw into doubt the validity of the election results in many parts of the country," an opposition statement said.
     Poe said opposition tallies indicated he was ahead in the count. "And to the government, do not resort to intimidating and frightening people," he said.
     Arroyo brushed off the anger and said voting was "generally peaceful, orderly and clean".
     "All must now conduct themselves with prudence, sobriety and respect for the democratic process," she told reporters.
     The independent election watchdog, the National Citizens Movement for Free Elections, had promised a "quick count" to provide a credible result within five days, but 24 hours after polls closed, it had counted 0.2 pct of the vote.

TH Lee unit seeks another extension of tender offer period for SPI shares

     MANILA (AFX-ASIA) - THLPV Acquisition LP, a wholly-owned unit of US-based TH Lee Putnam Ventures LP, said it has sought another extension by five business days of the tender offer period for SPI Technologies Inc shares.
     The second request came after the Securities and Exchange Commission (SEC) said it has approved THLPV Acquisition's prior request to extend the tender offer period for SPI shares until May 14, or four more business days, to give SPI shareholders the opportunity to participate.
     In a letter sent to the SEC today, THLPV, through its legal counsel in Manila, requested that the tender offer period be extended until May 21.
     The tender offer for SPI began on April 12 and was supposed to end originally on May 7.
     Payments and acceptances of the tendered shares will be reset to June 2 from May 26 should the SEC approve the second request from THLPV.
     The purchase price is unchanged at 87.23 mln usd, or 0.2794 usd per share, payable in US dollars.
     SPI is Asia's largest provider of business process outsourcing services.
     TH Lee Putnam Ventures LP is a technology-focused private equity firm, which manages 1.1 bln usd in capital commitments.
     afxmanila@afxasia.com

First Philippine Holdings to list 1.55 mln common shares tomorrow - PSE

MANILA (AFX-ASIA) - First Philippine Holdings Corp will list tomorrow an 1.55 mln additional common shares, which arose from its stock purchase and option plans for executives and employees, a Philippine Stock Exchange circular said.
afxmanila@afxasia.com

Philippines' SEC approves extension of tender offer period for SPI shares

     MANILA (AFX-ASIA) - The Securities and Exchange Commission said it has approved THLPV Acquisition LP's request to extend the tender offer period for shares of SPI Technologies Inc, Asia's largest provider of business process outsourcing services.
     THLPV Acquisition LP, a wholly-owned unit of US-based TH Lee Putnam Ventures LP, had sought to extend the tender offer until May 14, 2004, or four more business days, to give SPI shareholders the opportunity to participate.
     The tender offer for SPI began on April 12 and was supposed to end on May 7.
     Payments and acceptances of the tendered shares has been set for May 26.
     The purchase price is 87.23 mln usd, or 0.2794 usd per share, payable in US dollars.
     SPI's major shareholders, with 71 pct of the company's total shares, have accepted the price offer.
     TH Lee Putnam Ventures LP is a technology-focused private equity firm, which manages 1.1 bln usd in capital commitments.
     (1 usd = 55.94 pesos)
     cecille.yap@afxasia.com

ROUNDUP - Philippine stocks, peso slide on interest rate, election worries

     MANILA (AFX-ASIA) - Philippine share prices and the peso tumbled today on worries over a possible interest rate hike in the US as early as next month and uncertainty following yesterday's presidential election.
     Analysts said market sentiment was weak as there was no clear indication that incumbent Gloria Arroyo, the financial markets' favorite, had won the election.
     Partial unofficial election results have so far indicated a neck-and-neck race between Arroyo and her main rival, film star Fernando Poe Jr.
     The complete official results of yesterday's elections are not expected to be out for nearly a month, but a nationwide exit poll by the respected Social Weather Stations (SWS) is expected later today.
     An exit poll by SWS in metropolitan Manila showed Arroyo got 31 pct of the votes, compared to Poe's 23 pct. However, other unofficial vote tallies show Arroyo enjoying just a slender lead over Poe and not yet on the road to a comfortable victory as predicted by pre-election opinion polls.
     The stock market's 30-company composite index today closed down at a three-week low, falling 46.43 points or 2.99 pct to 1,508.26.
     Worries over an early increase in US interest rates sent stocks on Wall Street tumbling Friday, prompting most markets in Asia to follow suit on Monday.
     The Philippine markets were closed yesterday for the elections.
     At the Philippine Dealing System, the peso fell to 56.07 against the dollar in morning trade today from Friday's close of 55.68. It averaged 55. 939 at noon on volume of 130 mln usd.
     Dealers expect the equities market to remain weak due to election-related concerns and worries over interest rates.
     "Fears that interest rates would rise sooner than expected have sent investors dumping their stocks. The expected lull immediately after the election was also a factor. It's however too early to predict the outcome (of that political exercise)," Citiseconline.com analyst Mark Alan Canizares said.
     Accord Capital Equities analyst Ron Rodrigo said it remains a close fight and that investors feel it is "better to be on the safe side for now".
     Central bank deputy governor Amando Tetangco Jr, meanwhile, attributed the peso's weakness largely to the strength of the US dollar against major currencies and prevailing "cautiousness" among investors following yesterday's general elections.
     "The peso's weakness is basically a knee-jerk reaction to a stronger dollar versus the yen as well as expectations of higher interest rates (in the US). The market's consensus is that US interest rates would rise; it is only a question of how much and when," Tetangco told reporters today.
     But he said the central bank expects the local currency to appreciate in the long-term as uncertainties on the political front subside. He did not elaborate.
     "I think the long-term trend is for (the peso's appreciation)," Tetangco told reporters.
     While an Arroyo victory may fuel another market rally, AB Capital Securities research director Jose Vistan Jr cautioned investors against putting "too much weight" on the election results alone since there are other issues that could affect sentiment, such as the budget deficit and US interest rates.
     "It's hard to see the market moving dramatically as it may have already gotten a little ahead of itself," he said.
     "US rates are going higher...and that's going to be a dark cloud overhanging the equities market. The lead-up to a Fed rate increase is normally not the best time to invest in the market," Vistan said.

     afxmanila@afxasia.com

Philippine peso weak due to dollar strength, poll-related caution - Tetangco

     MANILA (AFX-ASIA) - The peso's weakness is largely due to the strength of the US dollar against major currencies and prevailing "cautiousness" among investors following yesterday's general election, central bank deputy governor Amando Tetangco Jr said.
     Tetangco said the central bank expects the local currency to appreciate in the long-term as uncertainties on the political front subside. He did not elaborate.
     "I think the long-term trend is for (the peso's appreciation)," Tetangco said.
     Unofficial partial results from the election have so far shown a neck-and-neck battle between incumbent president Gloria Arroyo and her main rival, filmstar Fernando Poe Jr. Arroyo has been widely favored by financial markets given her experience in government.
     Full results of the election are not expected for nearly a month.
     The peso fell to 56.07 against the dollar in morning trade from Friday's close of 55.68. It averaged 55.939 at noon on volume of 130 mln usd.
     "The peso's weakness is basically a knee-jerk reaction to a stronger dollar versus the yen as well as expectations of higher interest rates (in the US). The market's consensus is that US interest rates would rise: it is only a question of how much and when," Tetangco said.

     afxmanila@afxasia.com

Philippine 91-day, 182-day T-bill rates fall, 364-day bill rises

     MANILA (AFX-ASIA) - The average interest rates on the 91-day and 182-day Treasury bills fell further at today's auction, but the 364-day rate rose on a partial award, the Bureau of Treasury said.
     National Treasurer Mina Figueroa, however, said the rates would have moved much lower had the initial results of yesterday's presidential election already reflected the results of pre-election opinion polls.
     Figueroa said banks were also liquid, having boosted their cash holdings ahead of yesterday's elections, and "needed to invest their funds in instruments that give them decent yields."
     The 91-day rate, which banks use as a benchmark to price loans, averaged 7.032 pct, compared with 7.161 pct previously. Bids ranged from 6.875 pct to 7.300 pct, with the government accepting only 3.32 bln pesos of tenders totaling 4.92 bln pesos, against its offering of 4.0 bln.
     The 182-day rate averaged 8.327 pct against 8.367 pct previously, on a full award of 3.5 bln pesos against total tenders of 4.14 bln. Bids ranged from 8.248 pct to 8.50 pct.
     The average 364-day rate rose to 8.908 pct from 8.897 pct previously, on a partial award of 2.265 bln pesos against the government's offering of 2.5 bln. Tenders totaled 2.645 bln pesos, while bids ranged from 8.75 pct to 9.25 pct.
     The initial unofficial vote tallies showed financial markets' favorite candidate, incumbent Gloria Arroyo, enjoying a slight lead over her closest rival, film star Fernando Poe Jr.
     In the final pre-election poll by the respected Social Weather Stations (SWS), Arroyo got 37 pct of the votes compared to Poe's 30 pct.
     An exit poll by SWS in metropolitan Manila showed Arroyo got 31 pct of the votes, against Poe's 23 pct.
     The SWS is scheduled to release the result of its nationwide exit poll later today.
     (1 usd = 56 pesos)
     afxmanila@afxasia.com

Manila shares close sharply lower on Wall St falls, election uncertainty

     MANILA (AFX-ASIA) - Share prices closed sharply lower, with the benchmark index hitting its lowest level in three weeks, on an aggressive sell-off following Wall Street's overnight falls and amid uncertainties related to yesterday's presidential election, dealers said.
     They said many investors opted to stay on the sidelines as unofficial partial election results have so far shown a neck-and-neck battle between incumbent president Gloria Arroyo and her main rival, actor Fernando Poe Jr.
     The 30-company composite index closed down 46.43 points or 2.99 pct at 1, 508.26 on volume of 128.69 mln shares worth 569.21 mln pesos. The index moved between 1,506.20 and 1,554.69.
     Today's level was the index's lowest close since April 19, when it ended at 1,497.48.
     Losers beat gainers 40 to 3, while 24 stocks ended unchanged.
     Top-traded Philippine Long Distance Telephone Co ended 50 pesos lower at 1,025 on 167,200 shares after its American Depositary Receipts (ADR) fell 0. 35 usd to 18.27 overnight.
     Worries over an early increase in US interest rates have sent Wall Street shares tumbling, prompting most markets in Asia to follow suit.
     The Philippine peso fell to 56 against the US dollar in early trade in line with the across-the-board strength of the US unit. It slightly recovered to 55.93 at the end of the morning trade on volume of 130 mln usd.
     Dealers expect the equities market to remain weak due to election-related concerns and worries over interest rates.
     "Fears that interest rates would rise sooner than expected have sent investors dumping their stocks. The expected lull immediately after the election was also a factor. It's however too early to predict the outcome (of that political exercise)," Citiseconline.com analyst Mark Alan Canizares said.
     Accord Capital Equities analyst Ron Rodrigo said it remains a close fight and investors feel it's better to be on the safe side for now."
     Partial and unofficial results of two quick counts conducted by two private computer schools showed incumbent President Gloria Arroyo enjoying only a slight lead over opposition candidate Fernando Poe Jr, contrary to earlier expectations of a wider victory margin for Arroyo.
     Full results are not expected for nearly a month.
     Second-most active stock SM Prime shed 0.20 to 6.10 on 9.65 mln shares.
     Globe Telecom closed down 15 at 815 on 33,140 shares.
     Bank of the Philippine Islands was 1.50 lower at 40.
     First Holdings shed 1 peso to 27.50.
     Manila Electric B, open to foreigners, ended down 1.50 at 31.50. Meralco A shed 0.50 to 19.50.
     Pilipino Telephone Corp was down 0.04 at 1.62.
     The all-shares index was down 17.27 points at 935.94.
     The commercial-industrial index shed 79.18 to 2,352.80.
     The property sector was down 8.87 at 539.21 and mining down 8.68 at 1,375. 27.
     Oil was unchanged at 1.20, while banking and financial services shed 10. 67 to 441.03.
     cecille.yap@afxasia.com

Manila shares sharply lower on Wall St falls, election result worries

     MANILA (AFX-ASIA) - Share prices were sharply lower on foreign investor selling following Wall Street's falls overnight and as unofficial partial results of yesterday's general election showed market favorite and incumbent president Gloria Arroyo enjoying only a slight lead over her main rival, dealers said.
     At 10.57 am, the composite index was down 39.52 points or 2.54 pct at 1, 515.17 on volume of 70.14 mln shares worth 297.2 mln pesos. The index has so far moved between 1,506.20 and 1,554.69.
     Decliners dominated the broader market, with 35 losers and only a single gainer so far. A total of 14 stocks were unchanged.
     The Dow Jones Industrial Average closed Monday at its lowest level this year amid a broad sell-off sparked by concerns over expected interest rate hikes and the political fallout surrounding the US occupation of Iraq.
     Dealers said investors are also taking a wait-and-see attitude following Monday's election in the Philippines.
     Partial and unofficial results of two quick counts being conducted by two private computer schools showed incumbent President Gloria Arroyo enjoying only a slight lead over opposition candidate Fernando Poe Jr, contrary to earlier expectations of a wider victory margin for Arroyo.
     Full results are not expected for nearly a month.
     "There is no clear indication that Arroyo is on the front seat. It remains to be a close fight and investors feel it's better to be on the safe side for now," Accord Capital Equities analyst Ron Rodrigo said.
     Investors favor US-trained economist Arroyo over opposition front-runner Poe, a movie actor, given her experience in managing the economy.
     Rodrigo also noted that investors' preference has turned to fixed-income instruments given expectations of higher interest rates in the US.
     Top-traded Philippine Long Distance Telephone Co was down 45 pesos at 1, 030 on volume of 49.410 shares, after its American Depositary Receipts (ADR) fell 0.35 usd to 18.27 overnight.
     Second-most active stock SM Prime shed 0.20 to 6.10 on 7.37 mln shares.
     Bank of the Philippine Islands was 1.50 lower at 40.
     Ayala Land shed 0.10 at 5.50, while parent firm Ayala Corp was down 0.30 at 5.40.
     Manila Electric B, open to foreigners, was down 1.50 at 31.50. Meralco A shed 0.50 to 19.50.
     Pilipino Telephone Corp was down 0.04 at 1.62, while First Holdings shed 1.00 to 27.50.
     The all-shares index was down 19.77 points at 933.44.
     The commercial-industrial index shed 61.93 to 2,370.05.
     The property sector was down 13.54 at 534.54, and mining down 8.68 at 1, 375.27.
     Oil was unchanged at 1.20, while banking and financial services shed 8.90 to 442.80.
     Dealers see the index's support level at 1,500 points, while resistance is seen at 1,550.

     (1 usd = 55.9 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' PLDT weaker amid blue-ship selloffs, ADR fall

     MANILA (AFX-ASIA) - Philippine Long Distance Telephone Co (PLDT) shares were sharply weaker in early trade, leading the sell-offs in blue chips, amid jitters following overnight declines on Wall Street and prospects of higher interest rates in the US, dealers said.
     Investors were also cautious with initial unofficial election results showing incumbent Gloria Arroyo, the financial markets' favorite, and film star Fernando Poe Jr in neck-and-neck race for the presidency, they added.
     PLDT was down 55 pesos at 1,020 on 23,390 shares.
     Its American Depositary Receipts (ADR) fell 0.35 usd to 18.27 in New York overnight.
     "Despite early unofficial results showing Arroyo is enjoying a slight lead, there's still no clear trend. The uncertainty is still there despite the generally peaceful conduct of elections," Westlink Global Equities chairman Rommel Macapagal said.
     "Wall Street's falls and the peso's slide to 56 against the dollar are also adding worries, resulting in panic-selling."
     The Dow Jones Industrial Average overnight fell below 10,000 points for the first time since December on prevailing interest rate hike fears.
     afxmanila@afxasia.com

Forex - Philippine peso falls on weak yen; Arroyo lead 'not yet convincing'

     MANILA (AFX-ASIA) - The peso weakened to 56 against the US dollar in early trade, in line with a weak yen and with initial unofficial election results showing incumbent Gloria Arroyo enjoying just a slight lead over her closest rival in the presidential race, dealers said.
     At 9.05 am, the peso has traded between 55.88 and 56.00 to the dollar, and averaged 55.923, on volume of 5.5 mln usd. It closed at 55.68 on Friday.
     "This is yen-related, plus the fact that Arroyo's lead in unofficial vote tallies is not yet convincing," a commercial bank dealer said.
     "But the main reason is really the strong dollar."
     The dollar rose to an eight-month high, above 114 yen yesterday, amid growing expectations that US interest rates are headed higher, possibly as soon as next month.
     Arroyo, meanwhile, is widely expected in financial markets to win a fresh mandate, based on some exit polls.
     Investors favor US-trained economist Arroyo as she is perceived to be the most capable of the five presidential candidates in managing the economy and governing the country in the next six years.
     afxmanila@afxasia.com

Manila shares outlook - Mixed to higher ahead of election results

     MANILA (AFX-ASIA) - Share prices are expected to open mixed to slightly higher with investors likely to stay on the sidelines as they await the outcome of yesterday's general elections, dealers said.
     However, the last-minute bargain-hunting seen on Friday may continue as investors start to position ahead of the election results, dealers added.
     Last Friday, the 30-company composite index closed up 3.0 points or 0.19 pct at 1,554.69 on volume of 121.9 mln shares valued at 563.2 mln pesos.
     In the broader market, gainers beat losers 27 to 17, with 38 stocks unchanged.
     The market was closed yesterday for the elections.
     "We're still far away from the finish line since the Commission on Elections has yet to tally the votes. Investors may remain at bay, although some may already start to take positions," First Grade Holdings managing director Astro del Castillo said.
     Partial and unofficial results of two quick counts being conducted by two private computer schools showed incumbent President Gloria Arroyo enjoying a slight lead over opposition candidate Fernando Poe Jr.
     Radio Station DZRH released an exit poll yesterday but declined to say what the margin of error or representative sample of voters was, and how the poll was compiled. It predicted Arroyo would win 36.7 pct of the vote compared with 31.75 pct for Poe, in line with surveys made prior to the elections.
     Full results are not expected for nearly a month.
     2TradeAsia.com, in its daily note to investors, said "a continuation of Friday's ascent might ensue, if political pages highlight that the election was held in a relatively peaceful process."
     Philippine authorities reported a total of 21 new deaths in election-related violence yesterday, taking the total death toll from the campaign to at least 114. Police and election officials nevertheless described the election as "generally peaceful."
     The market's immediate support is at 1,530-1,550, resistance at 1,600, dealers said.
     (1 usd = 55.68 pesos)
     cecille.yap@afxasia.com

Philippines' Philex Mining to spend 1.34 bln pesos to boost copper production

     MANILA (AFX-ASIA) - Philex Mining will invest 1.34 bln pesos to expand its copper mining operations in Benguet province in northern Philippines, the government's Trade Undersecretary and Board of Investments (BoI) managing head Elmer Hernandez said.
     The BoI has agreed to grant incentives to the new investment, which would involve tapping a deeper production block and increasing its work force to boost capacity.
     "The approval of the expansion project is an indication that the government continues to support and promote the mining sector as an industry with attractive investment opportunities," Hernandez said.
     (1 usd = 55.68 pesos)
     cecille.yap@afxasia.com

Philippines' Globe Telecom sees 15 bln pesos in net profit this year - report

     MANILA (AFX-ASIA) - Globe Telecom Inc expects to book 15 bln pesos in net profit this year with the introduction of more innovative products intended to boost its subscriber base, the Philippine Daily Inquirer newspaper reported, quoting Globe president Gerardo Ablaza Jr.
     Globe posted a first quarter to March net profit of 3.1 bln pesos, up 52 pct year-on-year.
     Ablaza said the company would push all fronts to preserve gains achieved in the first three months of the year.
     Globe would likely post favorable numbers in the second quarter given the sustained increase in its subscriber base in April, he added.
     Its mobile phone subscribers increased to around 9.5 mln as of end-April from 9.1 mln as at end-March.
     (1 usd = 55.68 pesos)
     cecille.yap@afxasia.com

Philippines police says five suspected foreign 'terrorists' arrested

     MANILA (AFX-ASIA) - The Philippine authorities said they had arrested five foreign "suspected terrorists" at the domestic airport here and were checking the group's background.
     A police statement said the five were detained on May 7 at Manila airport after they arrived in the Philippine capital on a domestic flight from the central city of Cebu.
     Police said the five had no passports or travel documents.
     A police spokesman declined to give the nationality the five suspects and would not say why they are considered terrorist suspects.
     The five were identified as Harjit Inghi, Sudeep Seth, Kumar, Manidar Lal and Surinder Singh. No further details were provided.
     The southern Philippines is home to several Islamic militant groups, who have been linked to the Al-Qaeda network and to terrorist attacks across Southeast Asia.

Philippine vote marred by violence/fraud claims; Arroyo expected to win

     MANILA (AFX-ASIA) - Independent poll monitors reported that violence and allegations of fraud marred today's general elections, in which incumbent President Gloria Arroyo is expected to defeat a film star to win a new six-year mandate.
     Over 43 mln voters were eligible to elect a president, lawmakers and 17, 000 local posts. Polls closed at 0700 GMT and counting began, but a credible exit poll was not expected before Tuesday and full results could take a month.
     The five-way presidential race is a straight fight between US-trained economist Arroyo and Fernando Poe, an action film star who left school at 15. Opinion polls gave Arroyo a lead of around seven percentage points.
     "As I vote here today, I am praying for peace and national unity," Arroyo said in her hometown in Pampanga province north of Manila.
     Poe cast his ballot in the upscale Greenhills district of the capital. "Peace to all," he said.
     The head of the Catholic church warned of a plot to rig the polls, and the chairman of the independent National Movement for Free Elections (Namfrel) said his organisation witnessed many irregularities.
     "I went to my district and I saw there were so many problems and these problems, I believe, cover the entire nation," Namfrel chairman Jose Concepcion told reporters.
     One of the main complaints was that election officials were slow to deliver voting materials to polling stations in 300,000 precincts. Three remote towns were unable to vote at all, and will hold polls tomorrow, officials said.
     Election Commission chief Benjamin Abalos, who spent an election night in hospital because of fatigue and suspected ulcers, said: "Not everything materialised as we have envisioned."
     Agence France-Presse reporters witnessed open vote-buying, names missing from voter lists and missing ballot boxes, while local media reported intimidation and violence.
     According to a toll based on government figures, at least 109 people have now been killed during the three-month campaign for Monday's presidential, vice presidential, parliamentary and local elections.
     Security forces shot dead seven gunmen working as election enforcers for local candidates on the central island of Masbate yesterday and recovered an arsenal of weapons including sub-machineguns, a police statement said.
     An ambush at dawn today on a candidate for mayor in Tampilisan in the southern province of Zamboanga left three people dead including a police officer.
     A further six campaign workers died in two ambushes in Zamboanga province late yesterday, local army commander Brigadier General Alexander Yapching said.
     Meanwhile, police said a campaign manager was shot dead today as he was leaving his house in Daanbatayan on the central island of Cebu and two campaign workers were killed in Manila in a grenade attack.
     Police also shot dead a man who tried to steal a ballot box in the southern town of Esperanza, and one more death was reported on the southern island of Guimaras island.