NEWS

Philippines' Arroyo, Poe discourage street protests amid claims of vote fraud

     MANILA (AFX-ASIA) - Incumbent Gloria Arroyo and main rival Fernando Poe Jr today urged supporters to shun street protests amid allegations of fraud in the presidential elections.
     Lawyers are gathering evidence to prove opposition allegations of cheating, said Senator Edgardo Angara, head of the opposition coalition that drafted Poe, a popular movie star.
     Although a manual vote count is expected to take weeks to complete, an exit poll that independent survey firm Social Weather Stations conducted projects that Arroyo will win a fresh six-year term with a 3 mln-vote margin over Poe.
     Both sides took steps today to cool tensions after a bitter three-month campaign that claimed at least 142 lives and left more than 200 others injured, many of them victims of deadly rivalries for local posts.
     "FPJ (Poe's initials) himself advised all of us to wait for the count and to wait for the evidence," Angara told reporters when asked if the candidate planned to follow the advice of his friend and backer, deposed president Joseph Estrada.
     Estrada alleged on Wednesday that the Arroyo camp is "stealing the victory" from Poe, and called his supporters to launch street protests.
     Estrada has been jailed without bail, while on trial for corruption after a military-backed popular revolt ousted him from power in 2001.
     Then-vice president Arroyo is serving the remainder of his six-year term, which ends on June 30. She has sought a popular mandate for herself to shore up her rule after surviving a military mutiny last year.
     The main post-election dispute is over nearly 1 mln voters, who reportedly were unable to cast their ballots on Monday.
     The Poe camp, as well as independent monitors, expressed fears that the alleged mass disenfranchisement would allow rampant vote-padding during the count.
     While there was small-scale cheating on election day, "the more massive and bigger scale vote larceny is taking place even now," Poe ally and senatorial candidate Aquilino Pimentel alleged.
     In the past, Pimentel said post-vote fraud involved switching or falsifying the certificates of canvass, where the vote tallies for each precinct are registered after the count.
     Disorderly voting and the slow count has "opened the door for probability of fraud and cheating after election day," said Protestant minister Jose Dizon, a member of an independent poll watchdog group.
     SWS estimated that some 900,000 voters had showed up in their precincts on election day, but were unable to vote because they could not find their names on the rosters.
     The state poll watchdog Commission on Elections (Comelec) has said it cleaned up the list precisely to deter multiple-voting and other forms of electoral fraud.
     Comelec commissioner Resureccion Borra admitted today that "there was a defect on the validation system," but rejected SWS estimates of disenfranchised voters.

Arroyo leads in 12.66 pct of Philippine vote tally by poll watchdog NAMFREL

     MANILA (AFX-ASIA) - Incumbent president Gloria Arroyo leads the independent but government-sanctioned tally by the National Citizens Movement for Free Elections (NAMFREL) of the May 10 election results, winning 1.44 mln votes of the 12.66 pct of the total counted so far.
     Her closest rival Fernando Poe has received 1.41 mln votes so far, according to the NAMFREL tally.
     Former police chief and now senator Panfilo Lacson is a far third with 484,279 votes.
     Evangelist Eduardo Villanueva and former senator Raul Roco follow with votes of 252,024 and 203,498, respectively.
     cecille.yap@afxasia.com

Philippine Q1 GDP growth forecast upgraded to 5.3 pct from 4.5 - ING

     MANILA (AFX-ASIA) - ING Financial Markets said it has upgraded its first quarter gross domestic product (GDP) growth forecast for the Philippines to 5. 3 pct from 4.3 pct after agrigulture output surged 8.2 pct during the period, its highest level in 15 years.
     The agriculture sector represents a fifth of the Philippine economy.
     "Excellent news from the important agriculture sector leads to an upward revision in first quarter GDP growth forecasts," ING said in a report.
     Following the strong farm output in the first quarter, ING raised its full-year agriculture growth forecast to 6.9 pct from 4.0 pct, which it said points to a full-year GDP growth projection of 5.3 pct.
     The government is aiming for a 4.9-5.8 pct year-on-year GDP growth for the full-year 2004.
     Agricultural output grew 8.2 pct year-on-year in the first quarter, the highest rate recorded in 15 years, due to government's "intervention" to increase food production and improve farm productivity.
     Agriculture Secretary Luis Lorenzo Jr said growth in the farm and fishery sectors was achieved despite the dry weather in the period.
     The total value of agricultural production in the first quarter rose 13.8 pct year-on-year to 192 bln pesos, more than double the 6.7 pct growth a year earlier.
     All sub-sectors recorded improvement, with fisheries posting the highest growth rate of 20.94 pct largely due to a surge in aquaculture output, particularly in seaweed production in the island of Mindanao.
     The crops sub-sector posted an output rise of 6.22 pct year-on-year due to increased production of unmilled rice and corn. Crops account for half of the total farm production value.
     Poultry and livestock outputs grew 3.4 and 3.32 pct, respectively.
     (1 usd = 55.98 pesos)
     cecille.yap@afxasia.com

First Philippine Holdings Q1 net profit 874.4 mln pesos vs 596.5 mln

     MANILA (AFX-ASIA) - First Philippine Holdings first quarter to March results:
      Income - 9.56 bln pesos vs 8.24 bln
      Cost and expenses - 7.34 bln pesos vs 5.88 bln
      Opg income - 2.22 bln pesos vs 2.35 bln
      Net profit - 874.4 mln pesos vs 596.5 mln
     (1 usd = 55.98 pesos)
     cecille.yap@afxasia.com

Philippine SEC extends SPI shares tender offer period to May 21

     MANILA (AFX-ASIA) - The Securities and Exchange Commission said it has extended until May 21 the tender offer period for the shares of business process outsourcing service provider SPI Technologies Inc, from the earlier deadline of May 14.
     It was the second extension approved by the SEC. It began on April 12 and was originally supposed to end on May 7.
     Payments and acceptances of the tendered shares have been set for June 2.
     THLPV Acquisition LP, a wholly-owned unit of US-based TH Lee Putnam Ventures LP, sought the extension to give SPI shareholders the opportunity to participate.
     The purchase price is unchanged at 87.23 mln usd, or 0.2794 usd per share, payable in US dollars.
     The SEC said it has also approved the revision of the terms of the tender offer to indicate SPI Acquisition Co as the actual bidder. It did not elaborate.
     THLPV Acquisition is a unit of TH Lee Putnam Ventures LP, a technology-focused private equity firm, which manages 1.1 bln usd in capital commitments.
     (1 usd = 55.97 pesos)
     cecille.yap@afxasia.com

Philippine opposition accuses govt of trying to manipulate vote count

     MANILA (AFX-ASIA) - The opposition Coalition of United Filipinos (KNP) accused the administration of trying to manipulate the vote count.
     KNP chairman Edgardo Angara said the turnout of voters in Monday's election has been inflated so the administration could produce more fake votes for Arroyo.
     KNP senatorial candidate Aquilino Pimentel said that while there was small-scale cheating on election day, "the more massive and bigger scale vote larceny is taking place even now".
     He said they are compiling evidence of cheating and that businessmen close to Arroyo are trying to manipulate the count.
     "I warn all those who manipulate (the vote), you can run but you cannot hide," he said.
     While doctoring the vote count, the administration is also using the media, unofficial tallies and exit polls to condition the public's mind into thinking that Arroyo has already defeated opposition presidential candidate and movie star Fernando Poe, he claimed.
     However Arroyo's spokesman Ignacio Bunye brushed aside the accusations, saying "allegations of massive fraud have no basis in evidence."
     He accused the opposition of "taking isolated cases and trying to put these together in a futile attempt to show a systematic pattern of cheating."
     Non-governmental organizations, meanwhile, charged that the slow count and disorderly voting had left many opportunities for unnamed parties to alter the v oting results and blamed the official Commission on Elections (Comelec) for the problems.
     "We have received complaints nationwide. All these complaints reports are now in the process of being written and evaluated by our lawyers," said Jose Dizon, a member of the Patriots group, a vote-monitoring organization.
     He did not accuse any party of cheating but charged that Comelec's failures had "opened the door for the probability of fraud and cheating after election day."
     The latest tally by the government-sanctioned, independent watchdog body, the National Citizens Movement for Free Elections (NAMFREL) found that Arroyo had a slight lead of 1.33 million votes over Poe's 1.28 mln.
     This "quick-count," which is parallel to the government's own tally, has only covered less than 12 pct of all votes cast so far.
     Unofficial media vote counts have pointed to a victory for Arroyo, while an exit poll by the independent Social Weather Stations group predicted that she would win 41 pct of the vote compared with 32 pct for Poe.

Philippines' Q1 OFW remittances 1.9 bln usd, up 4.3 pct yr-on-yr

     (Updating with statement from the central bank)
     MANILA (AFX-ASIA) - Remittances from overseas Filipino workers (OFWs) in the first quarter amounted to 1.9 bln usd, up 4.3 pct from 1.8 bln in the same period last year, the central bank said.
     In a statement, the central bank attributed the growth in inflows to the peso's weakness against the US dollar, higher seasonal remittances in time for school enrolments and an 18.9 pct increase in the number of Filipino workers abroad.
     Data from the Philippine Overseas Employment Administration (POEA) showed the deployment of land-based overseas workers grew 23.8 pct to 224,433, while sea-based workers rose 3.0 pct to 57.093.
     It added that increased fund transfers were noted from Filipino workers in Hong Kong, the US and the United Kingdom, which more than compensated for the slackening in inflows from traditional labor markets, such as Singapore and Japan.
     "The first-quarter favorable performance provides a comfortable buffer to the projected 3 pct growth of remittances for the whole of 2004. In fact, the last two months of the quarter yielded almost 10 pct annual growth," said the central bank.
     OFW remittances in 2003 rose 6.3 pct year-on-year to 7.6 bln usd from 7.2 bln. This year, such remittances are projected to grow 3.0 pct year-on-year to 7.8 bln usd.
     (1 usd = 55.96 pesos)
     cecille.yap@afxasia.com

Manila shares close down on election caution, global economic fears

     MANILA (AFX-ASIA) - Share prices closed marginally lower, reversing the slight gains made earlier, as many investors stayed on the sidelines to await the results of last Monday's general election, dealers said.
     Global economic concerns, such as rising crude oil prices and prospects of higher interest rates in the US, also weighed on sentiment, they added.
     The 30-company composite index closed down 4.86 points, or 0.32 pct, at 1, 521.61 on volume of 151.61 mln shares worth 388.7 mln pesos. It moved between 1,518.39 and 1,531.19.
     In the broader market, losers outnumbered gainers 20 to 14, while 38 stocks closed unchanged.
     Dealers said the financial markets are expected to remain volatile in the coming sessions on post-election concerns, with the situation likely to improve as a clearer picture emerges of the winner of the presidential poll.
     Partial and unofficial results show incumbent President Gloria Arroyo, the financial market's favorite, with a slim lead over her main rival, film star Fernando Poe Jr.
     A Social Weather Station exit poll pointed to Arroyo as the likely winner over Poe, but the opposition has refused to accept the findings and as warned of street protests over alleged electoral fraud.
     "While the medium-term direction points to an uptrend, the market is now undergoing consolidation and is being held back on poll-related uncertainties, " DA Market Securities president Nestor Aguila said.
     "However, we expect concerns to ease as the canvassing progresses. The only thing that could reverse this positive scenario is if people go back to the streets to protest. We hope this doesn't happen."
     Dealers said prospects of higher interest rates, following an impending rise in the US as early as June, have also given investors added reason to hold on to their funds instead of taking aggressive positions in the equities market.
     "Further reinforcement of expectations may be required, as far as global economic expansion is concerned, to douse the near-term effects of an expected increase in borrowing costs," 2TradeAsia.com said.
     Top-traded Philippine Long Distance Telephone Co ended flat at 1,050 pesos on volume of 117,640 shares.
     Second most active SM Prime Holdings was up 0.10 pesos at 6.10 on 16.88 mln shares after the company reported a jump in first quarter net profit to 1. 2 bln pesos from 1.1 bln in the same period last year.
     Globe Telecom gained 5 to 835.
     PLDT affiliate Pilipino Telephone Corp was down 0.04 to 1.60 on 5.72 mln shares, despite reporting a net profit of 8 mln pesos, as opposed to a net loss of 360 mln for the same period last year.
     Equitable PCI Bank shed 0.50 at 40.
     The all-shares index closed up 1.04 points at 932.54.
     The commercial-industrial index dropped 15.04 to 2,368.72.
     Mining was up 5.94 at 1,381.21, while property gained 6.95 at 541.94.
     Oil was unchanged at 1.20, while banking and financial services was down 1.03 at 447.69.
     (1 usd = 55.97 pesos)
     cecille.yap@afxasia.com

Philippine BIR April tax collection 53.02 bln pesos against 56.3 bln target

     MANILA (AFX-ASIA) - The Bureau of Internal Revenue (BIR) reported that tax collection in April reached 53.02 bln pesos, its highest ever level, but still below the 56.3 bln peso target it had set for the month.
     The agency attributed the lower-than-target revenues to lower Treasury bills sales, citing the Bureau of Treasury's decision to either reject tenders or accept them at generally lower rates. BIR's revenue from T-bills was down by 700 mln pesos for the four months to April.
     The BIR also reported some 540 large taxpayers paid lower taxes in the month, prompting its head Commissioner Guillermo Parayno Jr to order a review of these payments.
     Total BIR collection from January to April stood at 151.99 bln pesos, 11. 69 bln higher than in the year-earlier period.
     (1 usd = 55.97 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - Philippines' ABS-CBN lower on profit-taking after Q1 results

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp was slightly lower on profit-taking after the company's first quarter results announcement yesterday, dealers said.
     At 11.13 am, ABS-CBN was down 0.25 pesos at 21.
     ABS-CBN reported a 15 pct year-on-year rise in first quarter net profit to 124 mln pesos, attributing the profit growth to higher advertising revenues and gains in its international operations.
     The country's largest broadcasting firm said it aims to increase its airtime revenue by 10 pct this year, with company officials saying that it is on track to meeting this goal.
     Revenue from political advertisements during this election season is seen reaching 400 mln pesos, or double the 200 mln the company made during the 2001 poll, a company official said yesterday.

     (1 usd = 55.96 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - Philippines Petron firms mid-trade on higher Q1 net profit

     MANILA (AFX-ASIA) - Petron Corp was firmer in mid-trade after the country's largest oil refiner reported its first quarter to March net profit grew 77 pct to 786 mln pesos on the back of higher sales, dealers said.
     Petron was up 0.10 pesos at 3.20 on volume of 413,000 shares worth 1.3 mln pesos.
     The oil refiner attributed the robust growth in profit to higher domestic sales, particularly in the power and the industrial sectors. At the same time, the year-earlier's net profit of 445 mln pesos was affected by an emergency shutdown of its largest crude distillation unit.
     Petron said sales to the National Power Corp, which represent 13 pct of total sales, increased more than 47 pct. Apart from the power sector, industrial volumes sales grew over 14 pct, while retail sales improved 7.3 pct.
     (1 usd = 55.96 pesos)
     cecille.yap@afxasia.com

Manila shares firmer on bargain-hunting in select stocks

     MANILA (AFX-ASIA) - Share prices were slightly higher on bargain-hunting in select stocks, as the market begins to consolidate after recent volatility, dealers said.
     At 10.18 am, the 30-company composite index was up 0.89 points or 0.06 pct at 1,527.36 on 23.17 mln shares worth 53.9 mln pesos. It opened weaker at 1,519.34 and has so far reached a high of 1,531.19.
     Gainers outnumbered losers 7 to 5, with 23 stocks unchanged.
     Manila Electric B, open to foreigners, was top-traded and up 0.50 pesos at 31 on 395,100 shares. Dealers said investors have started to accumulate Meralco shares after recent falls. Meralco A was unchanged at 19.50.
     "Market gauges could end sideways this week, as players appear to be waiting for inspiring catalysts that can boost overall sentiment," 2TradeAsia. com said.
     It added that investors are waiting for election uncertainties to fade away before taking any significant positions in stocks.
     Unofficial and partial results of last Monday's general election have so far shown market-favorite and incumbent President Gloria Arroyo in a tight race with main opposition bet, film star Fernando Poe Jr.
     The full results of the election would be out in a month's time.
     A major exit poll conducted by the Social Weather Station (SWS) predicted Arroyo would likely win the polls, but the opposition camp has alleged cheating and warned of street protests.

     (1 usd = 55.97 pesos)
     cecille.yap@afxasia.com

Philippines' Petron Q1 net profit 786 mln pesos, up 77 pct on higher sales

     MANILA (AFX-ASIA) - Oil refiner Petron Corp reported a first quarter to March net profit of 786 mln pesos, up from 445 mln in the year-earlier period, on the back of higher sales in the domestic market.
     In a statement, Petron said earnings in the first quarter of 2003 were affected by an emergency shutdown of its largest crude distillation unit.
     "Petron's upbeat performance can be attributed to an increase of 14.3 pct in revenues resulting from higher sales to the domestic market. Despite unrelenting competition from major and new players, sales to all major sectors increased," the company said in a statement.
     Petron said sales to the National Power Corp, which represent 13 pct of total sales, increased more than 47 pct. Apart from sales in the power sector, industrial volumes grew over 14 pct, while retail sales improved 7.3 pct.
     Its gross margin rate improved to 8.6 pct from 7.3 pct a year ago.
     "Petron gained market share in 2003 despite a 1 pct decline in local oil demand, and we are aiming to sustain and even surpass the gains we made," Public Affairs manager Virginia Ruivivar said.
     The company said it will spend 100 mln usd on two projects aimed at upgrading its refinery in the province of Bataan.
     (1 usd = 55.968 pesos)
     cecille.yap@afxasia.com

Philippines Q1 agriculture output up 8.2 pct yr-on-yr

     MANILA (AFX-ASIA) - Agricultural output grew 8.2 pct year-on-year in the first quarter, the highest rate recorded in 15 years, due to government's "intervention" to increase food production and improve farm productivity.
     Agriculture Secretary Luis Lorenzo Jr said the growth in the farm and fishery sectors was achieved despite the dry weather in the period.
     "We are now seeing the fruits of the various programs we have put in place to increase production and productivity... With the sector's consistent growth during the past three years, we have been able to extricate ourselves from the boom-and-bust cycle that characterized our agriculture sector in the past," Lorenzo said.
     The total value of agricultural production in the first quarter increased 13.8 pct year-on-year to 192 bln pesos, more than double the 6.7 pct growth a year earlier.
     Agriculture accounts for about a fifth of the Philippine economy.
     All sub-sectors recorded improvement, with fisheries posting the highest growth rate of 20.94 pct largely due to a surge in aquaculture output, particularly in seaweed production in the island of Mindanao.
     The crops sub-sector posted an output rise of 6.22 pct year-on-year due to increased production of unmilled rice and corn. Crops account for half of total farm production value.
     Poultry and livestock outputs grew 3.4 and 3.32 pct, respectively.
     (1 usd = 55.95 pesos)
     cecille.yap@afxasia.com

Philippines' Equitable PCI Bank defends sale of Bankard to RCBC

     MANILA (AFX-ASIA) - Equitable PCI Bank has defended its sale of credit card firm Bankard Inc to a unit of Rizal Commercial Banking Corp after the latter asked the International Chamber of Commerce (ICC) to nullify the purchase for alleged breach of contract.
     RCBC Capital Corp has accused Equitable PCI of failing to present an accurate picture of Bankard and has asked the arbitration court to award it 809.8 mln pesos plus interest in damages.
     Equitable PCI Bank, in a disclosure to the stock exchange, said the financial statements furnished to RCBC Capital at the time of the sale "were complete in all material respects and were prepared in accordance with the generally accepted accounting principles."
     "Note that the share purchase agreement was executed on May 24, 2000 with RCBC taking over shortly after and the arbitration case is being filed only now," Equitable PCI Bank said.
     RCBC Capital is asking for the rescission of the purchase and the restitution of all amounts it paid to Equitable PCI plus other damages. It added that if rescission of the purchase cannot be made, damages amounting to about 809.8 mln pesos should be paid.
     (1 usd = 55.95 pesos)
     cecille.yap@afxasia.com

Philippines' Ayala Corp to reduce shares by 5,811 today - Stock Exchange

     MANILA (AFX-ASIA) - Ayala Corp will reduce its number of listed common shares by 5,811 today, the Philippine Stock Exchange said.
     The shares to be de-listed represent unaccounted shares which cannot be traced to any supporting document from both the exchange and the company, the PSE said.
     Ayala Corp closed up 0.10 pesos at 5.60 yesterday.
     cecille.yap@afxasia.com

Manila shares outlook - Mixed to lower on Wall St weakness, post-election woes

     MANILA (AFX-ASIA) - Share prices will likely open mixed to lower in line with Wall Street's fall overnight as higher oil prices, prospects of a hike in US interest rates and post-election concerns continue to keep investors sidelined.
     Yesterday, the 30-company composite index closed down 14.49 points, or 0. 94 pct, at 1,526.47 on volume of 147.55 mln shares worth 3.76 bln pesos. Turnover value was boosted by cross sales involving China Banking Corp.
     "The market is likely to maintain its volatile movement until a more definite trend can be established with respect to the race for the presidency, " BPI Securities said in its daily note to investors.
     Partial and unofficial results showed market favorite and incumbent President Gloria Arroyo in a neck-and-neck race with main opposition candidate, film star Fernando Poe Jr.
     A major exit poll conducted by the Social Weather Station showed that Arroyo is likely to have won the election, but the opposition alleged cheating and warned of mass protests.
     Detained former Philippine leader Joseph Estrada, a close friend of Poe, yesterday called for street protests to denounce alleged cheating in the just concluded elections.
     BPI Securities said investors will also keep a close watch on developments on Wall Street and the US interest rates, which are expected to be raise as early as June.
     "We still view the recent market tentativeness as an opportunity to accumulate select stocks," BPI Securities added.
     Investors continue to ignore first quarter to March profit reports of companies.
     Yesterday, mall operator SM Prime Holdings Inc reported that its first quarter net profit rose to 1.2 bln pesos from 1.1 bln a year earlier as revenues from its shopping mall operations grew 14 pct year-on-year to 2.3 bln. The stock fell 0.10 pesos to 6.00 even after the profit report.
     ABS-CBN Broadcasting Corp said its first quarter to March net profit grew 15 pct year-on-year to 124 mln pesos, mainly on higher advertising revenue and gains in its international operations. It expects net profit to grow around 10 pct in 2004.
     The main index's support is at 1500 and resistance at 1,570.
     (1 usd = 55.95 pesos)
     cecille.yap@afxasia.com

Arroyo says Philippine vote flawed but credible

     MANILA (AFX-ASIA) - President Gloria Arroyo acknowledged there were flaws in this week's elections she is projected to win, but said the problems were isolated and warned the opposition against stirring up trouble.
     Reacting to criticisms on the level of violence in the campaign that claimed more than 100 lives, Arroyo said the incidence of violence was "relatively isolated and has not affected the generally peaceful and credible character of the polls."
     She acknowledged there were problems in Monday's vote, which exit polls predict she would win by a comfortable margin of 3 mln votes over main rival and movie-star Fernando Poe.
     There have been scattered reports of violence during the campaign. The military released figures today showing 141 people were killed and 192 wounded in election-related violence since December, mostly by communist insurgents and private armed gangs of political warlords.
     "It is sad to note that many of our people and their leaders ... have engaged in the use of force to get their way," she said in a statement.
     Arroyo called for modernization of the electoral process to speed up the count "and remove the tensions that contribute to problems of peace and order. "
     Poe and other opposition candidates have charged that they had been cheated in the elections and that the government was using the media and unofficial surveys and vote counts to put out misleading results to make it look like Arroyo was already the winner.
     A senior leader of the influential Roman Catholic Church also raised questions over Monday's elections in his archdiocese after a 100 pct vote for President Gloria Arroyo.
     Archbishop Oscar Cruz said he found it "amazing" that all 5,470 voters of the northern town of Santo Tomas had taken the voting advice of their mayor Antonio Aguilar, who appeared to be "even more powerful than God himself."

Philippines' Jollibee Foods to absorb 3 wholly-owned subsidiaries

     MANILA (AFX-ASIA) - Jollibee Foods Corp said it will absorb wholly-owned subsidiaries Mary's Foods Corp, Donut Magic Philippines Inc and Ice Cream Copenhagen Philippines Inc through a merger process, with Jollibee as the surviving company.
     "The primary purpose of the merger is to consolidate ownership over the three non-operating subsidiaries into Jollibee Foods Corp," Jollibee told the stock exchange, adding that the merger will help cut costs.
     It will present the merger proposal to stockholders for approval during the annual general meeting on June 18.
     afxmanila@afxasia.com

Philippine electronics 2004 exports growth forecast raised to 15 pct from 10

     MANILA (AFX-ASIA) - The Semiconductor and Electronics Industries of the Philippines (SEIPI) said electronics exports this year could grow 15 pct year-on-year, revising its earlier growth forecast of 10 pct.
     SEIPI president Norberto Viera, however, urged the government to step in and help the local industry attract more foreign investments, particularly those that may not be able to enter China.
     He said while Philippine electronics exports this year will grow faster than initially projected, growth in the global market is expected to be even faster at 24 pct.
     "The Philippine growth is not at pace with the world growth, which is much higher than what we are seeing locally. This slower growth should be cause for concern for our policy-makers," Viera said at a news briefing.
     He said the Philippines could attract more foreign investments as "China is becoming more selective on investments and interested only in high-technology industries."
     Semiconductor and electronics exports are expected to top 27 bln usd this year, from 24.6 bln the previous year, according to SEIPI.
     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.
     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 in the first two months of the year, they grew 6.4 pct year-on-year to 1.576 bln usd in March.
     Lack of investments from abroad hindered expansion of manufacturing capacity, Viera told reporters.
     To help the industry grow further, Viera said the government must bring down the cost of power at a level comparable to that of other Asian countries that also host semiconductor firms.
     Locators need good roads, airports and telecommunication facilities "to and from economic zones and industrial parks, which are crucial in the delivery of products and services of the electronics business to the world," he added.

Philippines' Estrada urges street protests vs Arroyo for alleged poll cheating

     MANILA (AFX-ASIA) - Detained former Philippine president Joseph Estrada called for street protests to denounce alleged cheating in the just concluded elections, which an exit poll showed was won by incumbent President Gloria Arroyo.
     Estrada accused Arroyo of cheating and manipulating election surveys that showed she was leading over opposition candidate and film star Fernando Poe.
     "They stole the seat from me, now they're stealing the victory from FPJ," Estrada told reporters by phone from his detention cell, referring to Poe's initials. "It's about time that people hold protests on the streets to denounce the massive cheating."
     The former president, who is also the de facto opposition head, turned down a "unity government" being proposed by Arroyo to heal divisiveness after the highly acrimonious campaign.
     "The government of national unity is fine, but the president should be elected through the mandate of the people and not through cheating. No way will there be unity with GMA," Estrada said, referring to Arroyo by her initials.
     Poe's campaign staff yesterday said they were collating reports of fraud in the May presidential elections.
     They warned of a "people's power" revolt should their candidate lose due to cheating. Earlier this week, several thousand Poe supporters trooped to the streets at Manila's financial center to protest against Arroyo.
     Estrada said that based on their own tabulations, Poe had clearly won in Metropolitan Manila, and yet, an exit poll conducted by the independent Social Weather Stations (SWS) showed Arroyo leading by six percentage points over Poe.
     Estrada, who was ousted by a popular revolt in 2001 that installed his then-vice-president Arroyo in his place, is held without bail while being tried for massive corruption. He maintains he was illegally ousted. He and his close friend, Poe still maintain a huge following among the poor.

Philippines ABS-CBN Q1 profit up 15 pct on revenue rise, intl op gains

     (Updating with debt payments, fund-raising deal, full-year outlook)
     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp said its first quarter to March net profit grew 15 pct year-on-year to 124 mln pesos from 108 mln, mainly on higher advertising revenue and gains in its international operations.
     "The growth was due to a healthier economic climate, with the company also reaping the benefits of a stronger balance sheet brought about by improved fiscal discipline," company vice-president and chief financial officer Randolph Estrellado said at today's results briefing.
     He said net sales and services rose 38 pct year-on-year to 1.02 bln pesos, and wholly-owned unit ABS-CBN Global Ltd was the biggest contributor.
     ABS-CBN's long-term debts totaled 4.9 bln pesos as of end-March after it settled some 904 mln pesos of obligations in March.
     Estrellado said the company expects to sign with a syndicate of private banks, within the month, a 120-mln usd loan deal, proceeds of which will be used to refinance existing debt and to fund further investments in cable television operations.
     He said the company is on track to meet its full-year growth targets.
     Among ABS-CBN's aims for this year is to increase its air-time revenue 10 pct and grow its net profit closer to that figure, he told reporters.
     Revenue from political advertisements during this election season is seen reaching 400 mln pesos, or double the 200 mln the company made during the 2001 poll, he said.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippines' ABS-CBN Broadcasting Q1 net profit 124 mln pesos vs 108 mln

     MANILA (AFX-ASIA) - ABS-CBN Broadcasting Corp's first quarter to March results:
     Airtime and other broadcasting-related revenues - 2.4 bln pesos vs 2.2 bln
     Net revenues - 3.0 bln pesos vs 2.6 bln
     Opg expenses - 2.7 bln pesos vs 2.3 bln
     Net profit - 124 mln pesos vs 108 mln
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippines' Piltel expects to sustain profitability throughout 2004

     MANILA (AFX-ASIA) - Pilipino Telephone Corp (Piltel) affirmed its earlier forecast of a return to profitability in the first quarter to March and said it expects to sustain its positive performance throughout the year.
     Piltel booked an unaudited net profit of 8 mln pesos for the first quarter, turning around from a net loss of 360 mln in the same period last year, after it signed up over 303,000 new mobile phone subscribers from January to March.
     Piltel, at the same time, cut its operating costs by 11 pct to 839 mln pesos during the period from the year-earlier level of 948 mln.
     As of end-March, subscribers of Piltel's GSM brand Talk 'N Text totaled 3. 17 mln, up 60 pct year-on-year.
     "We will continue to operate our business with the goal of posting a positive bottomline by the end of 2004, subject to fluctuations in foreign exchange rates," Piltel president and chief executive officer Gregorio Atienza said.
     "Talk 'N Text continues its strong subscriber growth and the cash flow position has strengthened, such that it has not been necessary to draw upon any part of PLDT's Letter of Support since late 2002."
     Piltel is majority owned by Philippine Long Distance Telephone Co.
     In a statement, Piltel said its average monthly subscriber churn rate in the first quarter was 4.7 pct, compared with 4.2 pct a year earlier.
     Piltel had 47,281 landline subscribers as of end-March.
     Net operating revenues in the first quarter rose 58 pct to 1.41 bln pesos from 890 mln a year earlier.
     Depreciation declined by 18 pct year-on-year, site-related expenses by 17 pct, and marketing expenses 19 pct.
     Other expenses, including a foreign exchange loss of 435 mln pesos booked in the first quarter relating mainly to the revaluation of the company's US dollar and yen debts, increased by 87 pct year-on-year to 562 mln.
     The increase in revenues, coupled with the reduction of operating expenses, resulted in operating income of 570 mln pesos for the first quarter, compared with an operating loss of 59 mln in the same period in 2003, the company said.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippines' Ayala Corp to de-list 5,811 common shares tomorrow - PSE

MANILA (AFX-ASIA) - Ayala Corp is to reduce tomorrow the number of its listed common shares by 5,811, which are unaccounted for and cannot be traced to any supporting documents from the conglomerate and the Philippine Stock Exchange, a PSE circular said.
afxmanila@afxasia.com

Philippines' Piltel Q1 net profit 8 mln pesos vs loss 360 mln

     MANILA (AFX-ASIA) - Pilipino Telephone Corp's (Piltel) first quarter to March unaudited consolidated results:
      Gross GSM revenues - 2.96 bln pesos vs 1.79 bln
      Opg income - 570 mln pesos vs opg loss 59 mln
      Net opg revenues - 1.41 bln pesos vs 890 mln
      Opg costs - 839 mln pesos vs 948 mln
      Net profit - 8 mln pesos vs loss 360 mln
     Piltel is majority owned by Philippine Long Distance Telephone Co and offers mobile phone service under the Talk 'N Text brand.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippines' Universal Robina Q2 net profit 489.2 mln pesos vs 432.6 mln

     MANILA (AFX-ASIA) - Universal Robina Corp's second quarter to March unaudited consolidated results:
      Net sales and services - 7.02 bln pesos vs 5.54 bln
      Cost of sales and services - 5.17 bln pesos vs 4.02 bln
      Gross profit - 1.85 bln pesos vs 1.52 bln
      Opg expenses - 1.14 bln pesos vs 1.03 bln
      Opg income - 716.8 mln pesos vs 486.1 mln
      Net profit - 489.2 mln pesos vs 432.6 mln
      Earnings per share - 0.29 peso vs 0.26
     First half to March results:
      Net sales and services - 13.4 bln pesos vs 11.6 bln
      Cost of sales and services - 9.8 bln pesos vs 8.36 bln
      Gross profit - 3.58 bln pesos vs 3.24 bln
      Opg expenses - 2.22 bln pesos vs 1.94 bln
      Opg income - 1.36 bln pesos vs 1.30 bln
      Net profit - 1.04 bln pesos vs 966.04 mln
      Earnings per share - 0.62 peso vs 0.57
     Universal Robina is a Gokongwei family-controlled branded foods company with a growing presence in other Asian markets.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Manila shares close lower on regional weakness, post-election concerns

     MANILA (AFX-ASIA) - Share prices closed lower, tracking the performance of other regional bourses, on concerns over high oil prices and the expected rise in US interest rates, dealers said.
     They said investors are also waiting for the results of last Monday's general election amid concerns over possible protests as the opposition party accuses the government of poll fraud.
     The 30-company composite index closed down 14.49 points or 0.94 pct at 1, 526.47 on 147.55 mln shares worth 3.76 bln pesos. It moved between 1,521 and 1,540.96.
     The market's turnover value was boosted by cross sales of China Banking Corp (Chinabank) shares worth 2.1 bln pesos.
     Decliners beat gainers 32 to 8, while 30 stocks ended unchanged.
     Chinabank was top-traded, but ended down 20 pesos at 660 on volume of 3. 19 mln shares worth 2.1 bln pesos. Separately, 1.14 bln pesos worth of Chinabank shares were sold in five block transactions.
     The Yuchengco Group of Companies earlier announced that it has agreed to sell its 12.68 pct stake in Chinabank to the Sy family to enable the former to concentrate on its main banking unit Rizal Commercial Banking Corp.
     Meanwhile, dealers expect stock market trading to remain volatile in the coming sessions, with election-related developments largely influencing sentiment.
     A major exit poll conducted by the Social Weather Station (SWS) showed incumbent President Gloria Arroyo, the market's favorite, is likely to have won the election.
     But an early and unofficial count being conducted by the National Citizens' Movement for Free Elections (NAMFREL) showed that Arroyo is on a neck-and-neck battle with main rival, film star Fernando Poe Jr.
     A manual count of ballots will take up to a month.

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

Philippines' Chinabank shares worth 2.9 bln pesos sold in cross/block deals

     MANILA (AFX-ASIA) - China Banking Corp shares worth 2.9 bln pesos were sold in several cross and block transactions today, data from the stock exchange showed.
     The shares were sold mostly at 660 pesos each.
     The Yuchengco Group of Companies earlier agreed to sell its 12.68 pct stake in Chinabank to the Sy family, raising the latter's holding to a controlling 54 pct.
     The Yuchengco group, in an earlier statement, said its decision to sell its 30-year investment in Chinabank was a step towards "consolidating" the family's shareholdings in another bank, the Rizal Commercial Banking Corp.
     (1 usd = 55.92 pesos)
     cecille.yap@afxasia.com

STOCK ALERT - Philippine SM Prime down as rate hike fears outweigh Q1 results

     MANILA (AFX-ASIA) - SM Prime Holdings was weaker as investors ignored its better first quarter to March net profit amid concerns over likelihood of hikes in interest rates in the coming months, dealers said.
     SM Prime was down 0.10 peso at 6.00 on volume of 872,000 shares.
     "The first-quarter results were not really exciting and property stocks are not drawing attention these days because of a possible increase in interest rates," said Unicapital Securities research head Elena Ponceca.
     SM Prime Holdings Inc today said its net profit for the first quarter to March rose to 1.2 bln pesos from 1.1 bln in the year-ago period as revenue from its shopping mall operations grew 14 pct year-on-year to 2.3 bln
     Ponceca noted that regional markets are bracing for an interest rates hike in the US, which may trigger similar moves in the Philippines, as well.
     Higher interest rates will dampen the borrowing appetite of businessmen and those intending to buy homes, besides possibly making it tough for borrowers to pay home mortgages, analysts said.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Manila shares weaker in line with region, post-election jitters

     MANILA (AFX-ASIA) - Share prices were lower mid-trade, in line with regional markets, as investors stay on the sidelines awaiting the results of Monday's general elections, dealers said.
     They added that the local market is undergoing a slight technical correction following two days of volatile trading that begun with a major sell-off on Tuesday.
     At 10.48 am, the 30-company composite index was down 17.87 points or 1.20 pct at 1,522.14 on 35.02 mln shares worth 216.69 mln pesos. It has so far traded between 1,522.14 and 1,540.96.
     Losers outnumbered gainers 26 to 5, while 18 stocks were unchanged.
     Philippine Long Distance Telephone Co was top-traded, down 5.00 pesos at 1,055 on 82,900 shares.
     Dealers said local market will likely trade within a narrow range of 1, 500 to 1,550 for the remainder of the session, with the performance of its regional counterparts likely to provide direction.
     They added that investors have also set their sights on the outcome of the election, with a major exit poll predicting a victory for market-favorite, incumbent President Gloria Arroyo.
     An early count conducted by the independent National Citizen's Movement for Free Elections (NAMFREL) showed her main rival, film star Fernando Poe Jr enjoyed a slim lead over Arroyo.
     "We continue to track the volatility on Wall Street and the regional markets . The market will likely trade sideways after Tuesday's sell-off, which was overdone," Asiasec Equities analyst Oliver Plana said.
     Concerns over a looming interest rate increase in the US and higher world oil prices continue to hound regional markets, dealers said.
     Bank of the Philippine Islands was down 0.50 at 41.
     International Container Terminal Services shed 0.05 to 3.
     Manila Electric Co B, open to foreigners, was down 1 at 31. Meralco A shed 0.25 to 19.75.
     San Miguel A was down 0.50 at 58.50, while San Miguel shed 1 to 72.
     Globe Telecom declined 10 to 835.
     The all-shares index was down 2.04 at 936.06, while the commercial-industrial index dropped 23.77 to 2,384.20.
     Mining was up 13.02 at 1,375.27, while the property sector was down 10.38 at 530.23.
     Oil was unchanged at 1.20, while banking and financial services was down 2.60 at 448.19.
     (1 usd = 55.909 pesos)
     cecille.yap@afxasia.com

Philippines' SM Prime Q1 net profit up on higher mall revenues

     (Updating with breakdown of results, company's expansion activities)
     MANILA (AFX-ASIA) - SM Prime Holdings Inc said its net profit in the first quarter to March rose to 1.2 bln pesos from 1.1 bln a year earlier as revenues from its shopping mall operations grew 14 pct year-on-year to 2.3 bln.
     Rental revenues from the company's 19 malls rose 16 pct year-on-year to 1. 8 bln pesos. It opened three new malls in the last quarter of 2003, which now have a combined occupancy rate of 90 pct.
     Revenues from amusement centers increased 41 pct year-on-year to 47 mln pesos.
     Operating income grew 13 pct year-on-year to 1.4 bln pesos.
     SM Prime is set to open this month a mall in Dasmarinas, Cavite south of Manila, and one more in Batangas later this year.
     SM Prime said it has set aside a budget of 5.0 bln pesos for capital expenditures for 2005, which will see the opening of three new malls, including the SM Mall of Asia.
     SM Mall of Asia, to be located in the Manila Bay area, is dubbed as the country's premier shopping destination and tourist attraction.
     Also set to open in 2005 are SM City San Lazaro in Manila and SM City Molino in Cavite.
     "With a land bank of 173 hectares in 12 prime locations, SM Prime Holdings is set for expansion within the next five year," the company said in a statement.
     The company recently declared a regular cash dividend of 0.10 pesos per share and a special cash dividend of 0.05 pesos per share for stockholders on record as of May 21.
     Payment is set for June 15.
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Philippines' SM Prime Q1 net profit 1.2 bln pesos vs 1.1 bln

     MANILA (AFX-ASIA) - Shopping mall operator SM Prime Holdings Inc's first quarter to March results:
      Gross revenues - 2.3 bln pesos vs 2.0 bln
      Opg income - 1.4 bln pesos vs 1.2 bln
      Net profit - 1.2 bln pesos vs 1.1 bln
     (1 usd = 55.9 pesos)
     afxmanila@afxasia.com

Forex - Philippine peso slightly weaker amid post-election jitters

     MANILA (AFX-ASIA) - The peso weakened against the US dollar in early trade, highlighting the volatility that is likely to continue as the market keeps an eye on political developments following Monday's presidential elections, dealers said.
     At 10 am, the peso averaged 55.903 to the dollar after sliding to 55.960 shortly after the open. It has traded at a high of 55.870 so far after closing at 55.84 yesterday. Volume so far totaled 73.5 mln usd.
     "All eyes are still on the election results. Market sentiment is mixed as one count shows FPJ (Fernando Poe Jr) was leading, while another shows GMA (incumbent Gloria Macapagal Arroyo) is likely to win a full term," the chief dealer of a local commercial bank said.
     "I think the peso will remain volatile since political uncertainties remain."
     The partial and unofficial tally of votes by the National Citizens Movement for Free Elections (Namfrel) showed that as of 8 pm yesterday, Poe was leading Arroyo by about 42,000 votes.
     A nationwide exit poll by the Social Weather Stations however showed Arroyo got 41 pct of the votes cast against Poe's 32 pct.
     Poe's supporters have warned of mass protests if Arroyo is declared the winner, as they accused the administration of vote-rigging and engaging in massive fraud.
     Another dealer, however, said the market is already discounting an Arroyo victory, with the local unit now under pressure amid expectations of continued dollar strength on prospects of higher interest rates in the US.
     Dealers said the peso may trade as low as 56.05-56.15 and a high of 55. 60-55.85 today.

     afxmanila@afxasia.com

STOCK ALERT - Philippines' Piltel up on hopes of return to profitability in Q1

     MANILA (AFX-ASIA) - Pilipino Telephone Corp was firmer in early trade on expectations that the mobile phone service provider has returned to profitability in the first quarter, dealers said.
     The company will announce its first quarter to March financial results today.
     Piltel was up 0.02 pesos at 1.66 on volume of 161,000 shares.
     Preliminary figures from the company showed a net profit of about 8 mln pesos, a turnaround from the 360.2 mln net loss a year earlier.

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

Philippines' RCBC unit sues Equitable PCI Bank over credit card unit purchase

     MANILA (AFX-ASIA) - Rizal Commercial Banking Corp (RCBC) said its wholly-owned unit RCBC Capital Corp has asked the International Chamber of Commerce (ICC) to nullify its purchase of credit card firm Bankard Inc from Equitable PCI Bank because of alleged breach of contract.
     RCBC Capital, which bought the credit card company in June 2000, sought damages of 809.8 mln pesos plus interest should the purchase be rescinded.
     "The share purchase agreement covering this transaction provides for arbitration through the ICC as the mode of resolution of any dispute between the two parties," RCBC said in a disclosure to the stock exchange.
     "RCBC Capital is asking for the rescission of the SPA and the restitution of all amounts it paid to Equitable PCI plus other damages.. or if rescission of the SPA cannot be adjudged, damages amounting to about 809.8 mln pesos plus interest," the bank added.
     No other details were provided in the disclosure.
     (1 usd = 55.84 pesos)
     cecille.yap@afxasia.com

Philippines' RFM Corp posts 572 mln peso net loss in 2003

     MANILA (AFX-ASIA) - Food and beverage firm RFM Corp said it posted a net loss of 572 mln pesos in 2003, reversing a profit of 4.3 bln the year before.
     The 2002 profit however included a one-time windfall of 6.5 bln pesos from the sale of Cosmos Bottling Corp to San Miguel Corp.
     RFM reported that its net sales fell 27 pct last year to 6.65 bln pesos from 9.11 bln in 2002, while gross profit declined to 1.03 bln from 1.09 bln due to increases in raw material costs and the peso's depreciation.
     "Year 2003 was tough and difficult for the company given global and domestic socio-political concerns such as the Iraq crisis, depreciation of the peso versus the US dollar, outbreak of SARS and political uncertainties. All these weakened consumer spending and investor confidence," RFM said in a report to the Securities and Exchange Commission.

     (1 usd = 55.84 pesos)
     cecille.yap@afxasia.com

Manila shares outlook - Mixed in line with Wall St, post-election jitters

     MANILA (AFX-ASIA) - Share prices will likely open mixed, in line with Wall Street's performance overnight, amid uncertainties over the outcome of last Monday's general elections, dealers said.
     They added that there could still be room for a further technical rebound given the market's sharp drop on Tuesday.
     Yesterday, 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. Gainers dominated losers 30 to 10, while 45 stocks ended unchanged.
     "Investors are cheering the preliminary and unofficial election results. Based on a private exit poll, it appears that president Gloria Arroyo will get a second term," ABCapital Securities research director Jose Vistan Jr said.
     He added that there are still concerns of unrest or negative reactions if the opposition challenges the results on alleged cheating.
     "The market is likely to remain volatile in the short term."
     A major exit poll conducted by the Social Weather Station (SWS) showed that Arroyo, the financial markets' favorite, is likely to have defeated her main rival, film star Fernando Poe Jr, in the presidential election.
     The opposition party however remains confident that its presidential standard bearer will win. Poe has taken an early lead in an unofficial count conducted by the independent National Movement for Free Elections (NAMFREL).
     Full results will be out in a month.
     "While uncertainties prevail as regards the final tally of the recent presidential election, bargain fishers might start scouting for potential winners once recent anxieties settle in," 2TradeAsia.com said in its daily note to investors.
     The main index's support is at 1,500 and resistance at 1,600.
     (1 usd = 55.84 pesos)
     cecille.yap@afxasia.com