GREED IS GOOD! : Philippine Stock Market

[richyuppie]

Tips from www.tsupitero.com for May 20’s market:

Warning: Follow at your own risk!

TEL
May 17 Closing Price: 445.00
Support: 405.00
Resistance: 462.50
Trend: Down
Comments: Trying to hold above previous high at 445.00
Recommendation: Avoid

SMCB
May 17 Closing Price: 57.50
Support: 56.50
Resistance: 58.80
Recommend to buy if resistance is taken out to the upside: 58.50
Trend: Sideways
Comments: Resistance appears to have held
Recommendation: Buy if breakout

ALI
May 17 Closing Price: 7.20
Support: 7.00
Resistance: 7.20
Recommend to buy if resistance is taken out to the upside: 7.30
Trend: Sideways
Comments: Bullishly consolidating at the highs
Recommendation: Buy if breakout

SMPH
May 17 Closing Price: 5.90
Support: 5.70
Resistance: 6.10
Trend: Down
Comments: Broke down on big volume
Recommendation: Avoid

AC
May 17 Closing Price: 5.90
Support: 5.80
Resistance: 6.00
Recommended Stop: 5.70
Recommend to buy if resistance is taken out to the upside: 6.10
Trend: Down
Comments: Trading at the apex of the triangle
Recommendation: Hold

MERB
May 17 Closing Price: 38.00
Support: 36.50
Resistance: 39.50
Recommend to buy if resistance is taken out to the upside: 40.00
Trend: Down
Comments: Downswing appears to be continuing
Recommendation: Buy if breakout

FLI
May 17 Closing Price: 3.10
Support: 2.85
Resistance: 3.40
Recommended Stop: 2.80
Trend: Up
Comments: Uptrend continues
Recommendation: Hold

ICT
May 17 Closing Price: 2.70
Support: 2.65
Resistance: 2.95
Trend: Sideways
Comments: Consolidation continues
Recommendation: Hold

PCOR
May 17 Closing Price: 1.78
Support: 1.70
Resistance: 1.90
Trend: Up
Comments: Broke out from a reverse head and shoulders
Recommendation: Hold

LTDI
May 17 Closing Price: 33.50
Support: 31.00
Resistance: 35.00
Trend: Up
Comments: Broke suggested stop
Recommendation: Trade the range

[richyuppie]

Tips from www.tsupitero.com for May 21:

Warning: Enter at your own risk!


TEL
May 20 Closing Price: 437.50
Support: 405.00
Resistance: 462.50
Trend: Down
Comments: Downswing continues
Recommendation: Avoid

SMCB
May 20 Closing Price: 57.50
Support: 56.50
Resistance: 58.50
Recommend to buy if resistance is taken out to the upside: 59.00
Trend: Sideways
Comments: Resistance appears to have held
Recommendation: Buy if breakout

ALI
May 20 Closing Price: 7.20
Support: 7.00
Resistance: 7.20
Recommend to buy if resistance is taken out to the upside: 7.30
Trend: Sideways
Comments: Bullishly consolidating at the highs
Recommendation: Buy if breakout

AC
May 20 Closing Price: 5.80
Support: 5.80
Resistance: 6.00
Recommended Stop: 5.70
Recommend to buy if resistance is taken out to the upside: 6.10
Trend: Down
Comments: Trading at the apex of the triangle
Recommendation: Hold

SMPH
May 20 Closing Price: 5.70
Support: 5.70
Resistance: 6.10
Trend: Down
Comments: Testing previous low at 5.70
Recommendation: Sell on strength

MERB
May 20 Closing Price: 39.00
Support: 36.50
Resistance: 39.50
Recommend to buy if resistance is taken out to the upside: 40.00
Trend: Down
Comments: Trying to rally
Recommendation: Buy if breakout

FLI
May 20 Closing Price: 3.10
Support: 2.85
Resistance: 3.40
Recommended Stop: 2.80
Trend: Up
Comments: Uptrend continues
Recommendation: Hold

ICT
May 20 Closing Price: 2.70
Support: 2.65
Resistance: 2.95
Trend: Sideways
Comments: Consolidation continues
Recommendation: Hold

PCOR
May 20 Closing Price: 1.78
Support: 1.70
Resistance: 1.90
Trend: Up
Comments: Broke out from a reverse head and shoulders
Recommendation: Hold

LTDI
May 20 Closing Price: 34.00
Support: 31.50
Resistance: 35.50
Trend: Up
Comments: Held above support
Recommendation: Trade the range

[AcePintura]

Jolliville Holdings Corporation

Does anyone have any comments on this company's upcoming IPO?

[Spyfrat]

I thnk we mighht see a big rally tom with index testing the 1400 level as target for next week. then killing me softly itl mid to 3rd wk june at lower 1200's.
PLDT possible back to 455-460 to materialize 1st attempt breakdown rally. PLDT closed at 420 today after holding support at 400.
The target of 5.60 for SMPH last monday/tuesday didn't materialized. It closed at 5.70 down .20 from friday's closed at 5.90, and back to 5.90 last tues (blk out hits pm trading)
yung consolation lang is that we anticipate a weak ipo debut for bdo using smph weak sentiment.
pero kung isama natin yung 10 cents stk div parang nag 5.60 na rin sya :glee:
j/k :P

[richyuppie]

Ayala Land, Inc (ALI):
ALI is obviously still in an uptrend when you look at it from a long-term perspective such as the chart above. However, on a smaller time-frame, the stock has been consolidating around 6.50 to 7.50 since February. You will notice that the long-term support line is already catching up with the price. This usually indicates a decision point for the stock. The stock will either bounce off the support line and continue with its uptrend again or it will break below the support line and consolidate some more, if not start a downtrend already. It is during these times when a stock is in a decision point that traders ought to be more alert than usual. On a more immediate time-frame, the stock is currently consolidating between 7.00 and 7.20/7.30, which is actually near the highs of its range. In my opinion, this consolidation could be the pivot for the stock of where it will be headed over the course of the next few weeks, if not months. If the stock breaks 7.00 to the downside, it will form a lower high and probably a bearishly looking head and shoulders formation. But if the stock breaks 7.30 to the upside, there is a very good chance that it could be the start of another uptrend. If 7.50 breaks, immediate target to the upside should be 8.20 to 8.50. If you want to go long, I would recommend to buy on the break above 7.20/7.30 and place stops at 7.00.

Short-term Traders/Tsupiteros (1 to 5 days):
Support – 7.00
Resistance – 7.20/7.30
Trend – Sideways

Medium-term/Position Traders (5 days to 3 weeks):
Support – 7.00
Resistance – 7.20/7.30
Trend – Sideways

[DivineFist]

Just a question for some of our expert people here.

I have just finished reading a book, "Eight Steps to Seven Figures " by Charles Carlson (great book by the way!!!!) and he mentioned about DRIPs (dividend reinvestment plans). DRIPS are essentially programs offered by publicly traded companies both foreign and US held companies, that allow investors to buy stock directly from companies, .without a broker . In a sense, most DRIPs charge no fees to purchase their shares, and if they do charge them, their fees are usually much lower than that of online brokerage firms. Does a similar program exist for Philippines traded companies? If one wants to buy local stocks, does one needs the services of a brokerage firm or use BPI Trade Online?

:glee: :glee: :glee:

[cianoy]

Originally posted by DivineFist
Just a question for some of our expert people here.

I have just finished reading a book, "Eight Steps to Seven Figures " by Charles Carlson (great book by the way!!!!) and he mentioned about DRIPs (dividend reinvestment plans). DRIPS are essentially programs offered by publicly traded companies both foreign and US held companies, that allow investors to buy stock directly from companies, .without a broker . In a sense, most DRIPs charge no fees to purchase their shares, and if they do charge them, their fees are usually much lower than that of online brokerage firms. Does a similar program exist for Philippines traded companies? If one wants to buy local stocks, does one needs the services of a brokerage firm or use BPI Trade Online?

:glee: :glee: :glee:

well you can also use www.rcbcsec.com

uy pa promote ah. ;-)

[cianoy]

Originally posted by AcePintura
Jolliville Holdings Corporation

Does anyone have any comments on this company's upcoming IPO?


Yeah, I think the owner is the owner of Pegasus

[Hulk]

Originally posted by cianoy



Yeah, I think the owner is the owner of Pegasus

Kilala mo? Madalas ka siguro dun 'no!


:frank:

[ready2go]

richyuppie
your PM inbox is full... kindly just PM me... I'm interested in acquiring your services... thanks

Hulk
:wave: ... 'musta na? ikaw ba... gusto mo akong tulungan mag-invest ng pera ko? kindly PM me... thanks

[lupuS]

Originally posted by cianoy
Yeah, I think the owner is the owner of Pegasus

I just read the prospectus. Jolliville CEO Jolly Ting no longer owns KTV businesses. He divested in 2000-2001 from his interests in companies operating Pharoah, Pegasus, Heartbeat, and Loveboat. Those KTV companies are now owned by Ting's nephews and nieces and are not part of the Jolliville group. IPO investors hoping to participate in what are probably highly profitable KTV operations may be disappointed.

[cianoy]

Originally posted by lupuS


I just read the prospectus. Jolliville CEO Jolly Ting no longer owns KTV businesses. He divested in 2000-2001 from his interests in companies operating Pharoah, Pegasus, Heartbeat, and Loveboat. Those KTV companies are now owned by Ting's nephews and nieces and are not part of the Jolliville group. IPO investors hoping to participate in what are probably highly profitable KTV operations may be disappointed.

oh shucks. excited pa naman akong mag attend ng analyst briefing at mag "company visit" tsk tsk

[richyuppie]

Philippine Long Distance Telephone Co.

After dropping almost 30% from its high at 565 in April to its low at 400 in May, TEL has begun rallying and is now testing its medium-term resistance at 480. You will notice from the chart above that TEL is currently trading between its 20-day moving average and its 50-day moving average. I would expect that this stock may consolidate between these two moving averages for the time being. I have also highlighted in the chart that the stock may be a potential reverse head and shoulders formation if it could manage to hold above 445 - notice the increase in volume in the supposed right shoulder. If the stock could manage to hold above this level and break above 480, then, Position traders may start buying the dips. In the meantime, I would suggest Tsupiteros to just trade the range of between 445 and 480. Be aware that the 467.50 is also a resistance line. If 445 breaks to the downside, all bets are off.

[Spyfrat]

daming nasunog sa tel et al (dgtl mpc). if only they're watching how the mm's are doin on phi's trade in nyse. :(
but..malapit na mid june :)

[ready2go]

good evening... just passing by... :drive:

[richyuppie]

Metro Pacific Corporation:

MPC appears to have broken out of its downtrend in the daily chart two weeks ago and is now bullishly consolidating at its highs. The chart above shows that the stock appears to have formed a higher low as against the low that it formed last November 2001. This is a bullish sign since it may be hinting that the stock may soon trend up in its long-term trend. Notice the volume on the breakout? Could it be a sign of accumulation? Presently, it is trading within the range of between 0.30 and 0.38. I am speculating that this congestion could be a flag in the works. If so, we are looking at a medium-term target of 0.44. Tsupiteros are recommended to trade this range if you wish. Position traders may buy the dips. Just remember, if 0.30 gets broken, all bets on the long side are off.

[richyuppie]

Buy FPH!!!

Indeed!

[richyuppie]

Net Foreign Buying (Selling) on selected PSE issues for the week of August 19 to 23 (in Php):

MERB: 9,920,300
FPH: 7,192,650
FLI: 433,740
AEV: (176,820)
ICT: (945,400)
SMPH: (5,713,700)
ABSP: (7,258,200)
AC: (13,369,500)
SMCB: (14,218,000)
MBT: (18,654,750)
GLO: (19,530,725)
EBC: (19,631,400)
ALI: (19,748,500)
BPI: (26,545,200)
TEL: (54,684,825)

Total Net: (176,349,564.58)

[SILENTMAX]

hello questions lang po


im interested in acquiring some stock on the phil stock exchange
ano po ba ang best method
by online trading or getting a broker?

pano yung stock certificates pag online trading ka?

umm how much is the charge usualy pag sa broker percentage of transaction or per transaction?

um tanong ko lang rin po what is the minimum purchase of a stocks? eto po ba yung board lot??





(brokers)pls pm me if you would like to do business.

[sam7268]

Originally posted by SILENTMAX
hello questions lang po


im interested in acquiring some stock on the phil stock exchange
ano po ba ang best method
by online trading or getting a broker?

pano yung stock certificates pag online trading ka?

umm how much is the charge usualy pag sa broker percentage of transaction or per transaction?

um tanong ko lang rin po what is the minimum purchase of a stocks? eto po ba yung board lot??


(brokers)pls pm me if you would like to do business.


actually, even if you do online trading, you'll have to go through a broker. the procedures for opening an account are the same; the main difference, really, is the placement of your orders. inq7money has a list of some of the online stockbrokers, but as far as i know, AB Capital and Asian Capital Equities (ACE) are the really active ones. AB Cap has an online application procedure. Do check it out to see what kind of information brokers need from you.

for the stock certificates, same procedures apply, even if you're trading online. you just have to give instructions to your broker that you want physical certificates, and they will be sent to the address you specified in your account with the brokerage (after roughly 1-2 months). if you trade regularly, i suggest you go for street certificates. magastos if you request for stock certificates every time you trade.

transaction charges? percentage of the transaction amount. maximum commission a broker can charge is 1.5%. i suppose with the market down, commissions are much lower now. you can always call stockbrokers and ask them how much they charge.

re minimum purchases, to keep it simple: 'yung board lot is the minimum number of shares of a particular stock that you can buy. a word of caution, though: be specific in asking your broker the minimum commission charges. i have no idea what the range might be now, i suppose around P200-P300? the stockbrokerage i used to work for had minimum commission charges of less than P100. don't know if it's still that way with them, though. :)

hope i've been able to help. :)

[velocity000]

Do we have call and put option here in PSE?

[SILENTMAX]

Originally posted by sam7268



actually, even if you do online trading, you'll have to go through a broker. the procedures for opening an account are the same; the main difference, really, is the placement of your orders. inq7money has a list of some of the online stockbrokers, but as far as i know, AB Capital and Asian Capital Equities (ACE) are the really active ones. AB Cap has an online application procedure. Do check it out to see what kind of information brokers need from you.

for the stock certificates, same procedures apply, even if you're trading online. you just have to give instructions to your broker that you want physical certificates, and they will be sent to the address you specified in your account with the brokerage (after roughly 1-2 months). if you trade regularly, i suggest you go for street certificates. magastos if you request for stock certificates every time you trade.

transaction charges? percentage of the transaction amount. maximum commission a broker can charge is 1.5%. i suppose with the market down, commissions are much lower now. you can always call stockbrokers and ask them how much they charge.

re minimum purchases, to keep it simple: 'yung board lot is the minimum number of shares of a particular stock that you can buy. a word of caution, though: be specific in asking your broker the minimum commission charges. i have no idea what the range might be now, i suppose around P200-P300? the stockbrokerage i used to work for had minimum commission charges of less than P100. don't know if it's still that way with them, though. :)

hope i've been able to help. :)

thanks for the help
actualy the reason why im interested in certificates is becouse i plan to hold on to the stocks for years and years and years.....you get the idea. i like saving and storing stuff(i cant help it im a pack rat) still have my baseballcards when i was in elementary.



is there really growth in phisix stocks when its kept for the long term. i understand theres stocksplits and dividends pero assuming that the company is succesfull would the stocks increase in value as compared as just putting my money in a bank?

kasi from what i see sa mga stocks sa phisix kahit 2 years di ata nagbabago nang value.
im willing to keep the stocks for decades if they would increase in value exponentialy(hehehe thats me dreaming) pero still would this be defeated by just putting my money in a bank?


thanks for any info :)
gods speed

[sam7268]

Originally posted by SILENTMAX


thanks for the help
actualy the reason why im interested in certificates is becouse i plan to hold on to the stocks for years and years and years.....you get the idea. i like saving and storing stuff(i cant help it im a pack rat) still have my baseballcards when i was in elementary.



is there really growth in phisix stocks when its kept for the long term. i understand theres stocksplits and dividends pero assuming that the company is succesfull would the stocks increase in value as compared as just putting my money in a bank?

kasi from what i see sa mga stocks sa phisix kahit 2 years di ata nagbabago nang value.
im willing to keep the stocks for decades if they would increase in value exponentialy(hehehe thats me dreaming) pero still would this be defeated by just putting my money in a bank?


thanks for any info :)
gods speed

hmm ... well IMO, even if you plan to hold stocks for a long time, the street certificates are good enough. one, you don't have to worry about keeping them in a safe place. two, you'll get dividends much faster. just keep your statements of account. broker is required at least quarterly (i think) to send you your position. but if you really want the physical certificates, make sure you keep them in a very secure place, and don't sign them.

is there growth in phisix stocks? meron naman. di nga lang ngayon. :D it's a cycle. nasa trough ngayon. :) don't know for how long, though - you might want to ask the experts here. but "every adversity brings with it the seeds of a greater benefit."

if you really want something for the long-term (decades, as you say - kse iba ang long-term ng mga tsupiteros eh :) ), i suggest blue chips. para di ka praning. :D

[Spyfrat]

sammy gorgeous ;)
long term nang mga tsupiteros = 1-3 months :)

[richyuppie]

Congratulations to spyfrat for being our tsupitero of the month!

http://www.tsupitero.com/spyfrat.htm

Bosing spyfrat, ano latest tip natin ngayon?

[sam7268]

Originally posted by Spyfrat
sammy gorgeous ;)
long term nang mga tsupiteros = 1-3 months :)

spy dear, sabi ko nga, iba ang long term ng tsupiteros. :beam:

talaga ha, tsuper, este, tsupitero of the month ka. haven't checked out the site yet. ay sory, di ko pa natingnan yung mga updated pictures mo. :D

[Spyfrat]

arghhhh san ba pd magtago? :glee:
bossrichdude, bantay lang ako galaw oil stocks, re oil index promising.
sam may pampalit ka na nang baygon :P

[President]

can somebody teach me ta in person?

[sam7268]

Originally posted by Spyfrat
arghhhh san ba pd magtago? :glee:
bossrichdude, bantay lang ako galaw oil stocks, re oil index promising.
sam may pampalit ka na nang baygon :P

tatago ka? gamitin mo na yung napanalunan mong tickets, dali!!! :beam:

[richyuppie]

Thanks Bossing Spyfrat. What do you think of BPC? Do you think it has bottomed out? Its about to break its downward channel resistance from its February 2002 high of 0.98. Buy na!

Indeed!

[Spyfrat]

i think so MasterRichDude :)
late buying activity kanina sa 0.24 baka may inaanticipate na gud news. cut agad if bpc makes new low.

sam, sama ka? ;)

[sam7268]

Originally posted by Spyfrat
i think so MasterRichDude :)
late buying activity kanina sa 0.24 baka may inaanticipate na gud news. cut agad if bpc makes new low.

sam, sama ka? ;)

san ako sama, spy? sa pagtatago mo? :D

o sa bpc? haven't been watching the market, di na nga updated database ko eh, and i haven't even thought about how to begin updating it. (you know who's selling raw data?) 'yoko mag-trade until i've seen the charts. :)

[sam7268]

Originally posted by President
can somebody teach me ta in person?

"ta"? as in "technical analysis"?

i can't remember if it was finex or ateneo business school who used to hold seminars on technical analysis. you might want to check there.

[Spyfrat]

sam secwet na yun kung saan ako magtatago :glee:

raw data sa metastock? meron akong kilala nagbebenta. gusto mo kontakin ko?

[richyuppie]

Bosing spyfrat, wag kang magtago! Madami ka pang tips na ibibigay sa akin, hehehe.

Mismo!

[President]

:)

[sanmig13]

Please check out October's Tsupitero of the Month, Mr. Bearbull himself, Ron Nathan.

http://www.tsupitero.com

[Spyfrat]

:handsdown: :handsdown: :handsdown:

[Spyfrat]

congrats 2 d mister yos porses. to lang yata and may tek-o-ber isyo na dehins tumaas :glee:


Gokongwei Group withdraws offer to acquire PLDT/Bonifacio Land stakes


MANILA (AFX-ASIA) - The Gokongwei group said it is withdrawing its offer to acquire the controlling interests of First Pacific Co Ltd in Philippine Long Distance Telephone Co and Bonifacio Land Co, citing First Pacific's inability to perform the terms of a Memorandum of Agreement covering the stake sale.
The Gokongwei group relayed its decision in an Oct 2 letter, signed by its legal counsel Perry Pe, addressed to First Pacific director Anthoni Salim, executive vice president Michael JA Healy, and general counsel Ronald Brown.
The Gokongwei group said it is also terminating its MoA with First Pacific on the setting up of a joint venture that was supposed to acquire the latter's stakes in PLDT and Bonifacio Land, developer of the Fort Bonifacio Global City.
"In light of First Pacific's inability to perform the terms of the MoA and satisfy the conditions of the MoA, (its) inability to complete the transaction within the time frame envisaged by the principals in their discussions on this matter and, the open resistance of the current management of both the PLDT and Metro Pacific/Bonifacio Land Co to the transaction, we hereby withdraw our offer to acquire from First Pacific interests in PLDT and Bonifacio Land and we hereby terminate the MoA," the letter states.
The Gokongwei group's status as exclusive negotiator for First Pacific's stakes expired on Sept 30, with the Gokongweis unable to conduct due diligence on PLDT and Bonifacio Land, a requirement for the closing of the deal.
The letter further states that in view of the expiry of that exclusivity period, "we acknowledge that First Pacific may now pursue the transaction with third parties."
At 10.42 am, PLDT was down 5.00 pesos or 1.79 pct at 275 on volume of 113, 460 shares.
Metro Pacific, parent of Bonifacio Land, was flat at 0.27 on 780,000 shares.
afxmanila@afxnews.com
edc/tr AFN

News provided by
©2002 Technistock Corporation. All Rights Reserved.

[snop]

Pwedeng sumali dito?

Pareng Spy, u didn't answer my question about MB.:(

[lupuS]

Benpres Holdings Corp. said it failed to make interest payments due Wednesday on its two billion pesos ($38.1 million) of long-term commercial paper. The Philippine conglomerate, which has interests in power and water distribution, media and property development, said it has hired Credit Suisse First Boston Corp. as its financial adviser in connection with a balance-sheet management plan.

- The Asian Wall Street Journal

[sanmig13]

Hi!

Please check out Fitz Aclan's Long-term analysis of the Phisix using the Elliot Wave Principle only at Tsupitero.Com.

http://www.tsupitero.com

[sanmig13]

Anybody interested in selling their Investment paraphernalia like books, videos or software? You may do so at Tsupitero.Com. Please check out my http://www.Tsupitero.com for more details.

[Spyfrat]

(Adds company, analyst comments)
MANILA (AFX-ASIA) - The Manila Electric Co was ordered by the Supreme Court to refund overbillings to customers from 1994 to 1998, according to a court order issued by the Supreme Court's third division.
The ruling stems from a 1998 petition to the court by the defunct Energy Regulatory Board which alleged Meralco had overbilled customers by at least 11 bln pesos from February 1994 to February 1998 due to its treatment of income tax as operating expense.

The court ordered Meralco to refund or credit to customers 0.167 pesos per kilowatthour in overbillings from 1994 to 1998, and also ordered the company to refund 0.017 pesos per kWh to cover income tax payments which it charged to customers during the period.
Meralco declined comment on the ruling.
"We've not received a copy of the decision yet, it's premature for us to give a reaction at this point," Meralco utility economics head Ivanna dela Pena told AFX-ASIA by phone.
The Supreme Court's five justices said the ERB was correct in ruling that "income tax should not be included in the computation of operating expense of a public utility."
The court said "findings and conclusions of the ERB on the rate that can be charged by Meralco to the public should be respected."
Meralco has a consolidated rate increase petition currently pending with the ERB's successor, the Energy Regulatory Commission, which seeks to raise its rates by at least 0.30 peso per kWh.
The company has warned it may not be able to sustain debt service payments and the expansion of its power distribution network without the rate hike.
Yesterday, it told the Supreme Court it was "on the verge of bankruptcy" and cannot afford a refund to customers.
A&A Securities research head Astro del Castillo said the ruling may adversely impact Meralco's operations.
He said the refund "will be a heavy burden on Meralco," which has already been complaining of declining profitability.
"It's a good day for consumers, and the Supreme Court order should also send a signal to investors that there is level playing field for business here," del Castillo said.
afxmanila@afxnews.com
skb/zr AFN


(updates with comment that rating could fall by 2 notches)
HONG KONG (AFX-ASIA) - Standard & Poor's said it placed its BB foreign currency rating for Manila Electric Co on CreditWatch negative in the wake of a court ruling against the company on customer refunds, adding that the rating could be cut by as much as two notches.
S&P said the refund, ordered by the Supreme Court on overbillings to customers from 1994 to 1998, is estimated to range between 11.3 bln to 28 bln pesos and "is expected to put extreme pressure on Meralco."
S&P said that, depending on the stipulations of the ruling and Meralco's plans for meeting liabilities, its rating could be cut by as much as two notches to B+.
The company's financial performance is already weak and it is facing liquidity pressures, which could negatively affect its ability to repay debt, it said.
Meralco has 5 bln pesos in debt maturing in 2003, 7.2 bln in 2004 and 6.4 bln in 2005, S&P said.
"The company has not made any provision against the potential liability, and its resources to reimburse customers and meet other financial obligations are limited," the rating agency said.
afxasiadesk@afxnews.com
skb/jms AFN

source: technistock.com

[snop]

Thanks Spy,

Very insightful post!

[Spyfrat]

MANILA (AFX-ASIA) - Share prices were weaker, hovering just above the key 1,040 support as sentiment remained depressed following the 28 bln pesos refund order issued by the Supreme Court against the Manila Electric Co, dealers said.
They said the issue has undercut sentiment badly given the potential fallout on the economy as a whole on on the utility sector in particular.
At 10.22 am, the composite index was down 14.42 points or 1.36 pct at 1, 044.29 on volume of 16.363 mln shares worth 89.151 mln pesos.
"It was to be expected investors would pull the plug on their shares after the Meralco ruling," A&A Securities vice president Astro del Castillo said.
Meralco B fell 5.75 pesos or 34.85 pct to 10.75 on volume of 4.646 mln shares as investors fretted over the Supreme Court ruling. Meralco has said it cannot afford to pay back its customers given the weak state of its finances.
Meralco A was down 3.50 pesos or 25.93 pct at 10 on 42,000 shares.
The all shares index declined 2.98 points to 629.74.
The commercial industrial index fell 25.21 points to 1,448.61, while property shed 0.03 to 461.01.
Mining was down 37.54 at 1,034.09, while banks and financial services retreated 3.87 to 408.67. Oil was unchanged at 1.33.
PLDT was among the blue chip stocks hit by negative sentiment owing to the Meralco refund order, dealers said.
PLDT fell 8.50 or 3.30 pct to 249 after making some gains last week.
Meralco parent First Philippine Holdings Corp lost 1.50 or 12 pct to 11 on 349,500 shares traded, while First Holdings parent Benpres Holdings Corp shed 0.025 or 13.16 pct to 0.165 on 1.4 mln shares.
A dealer from a local brokerage said the Supreme Court decision impacts on Meralco's power supply arrangements with independent power producers as well, including First Holdings.
Analysts said the court ruling also dampened sentiment on the Benpres group of companies, which are engaged in highly-regulated businesses.
Aboitiz Equity Ventures, which has units engaged in power generation and distribution, declined 0.02 to 2.38.
Ayala Corp was flat at 4.50 but Ayala Land weakened 0.05 to 4.95.
Filinvest Land was down 0.06 at 0.85, while SM Prime lost 0.10 to 5.40.
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source: technistock.com

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