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GREED IS GOOD! : Philippine Stock Market (Stock Traders Lounge)



  • DAILODAILO Member PExer
    Estrada defends handling of hostage crisis

    MANILA (AFX-ASIA) - President Joseph Estrada said holding off on military action against hostage-takers in the southern Philippines remains the correct strategy, with the hostages' safety the "primary consideration."

    Amid mounting public pressure to launch a rescue mission for the 22 remaining Abu Sayyaf hostages, Estrada said on local radio: "I know what I am doing... in the end, it is going to be my decision."

    "We cannot employ force immediately because the lives of innocent people are at stake. We cannot attack without a strategy in place. We are still studying it."

  • DAILODAILO Member PExer

    The National Government may yet regain its 30.39% stake in Philippine National Bank sold off in July to Lucio C Tan should the latter fail to pay the 5.6-billion Philippine peso(USD122.77million at PHP45.612=USD1) balance for the shares, officials at the Department of Finance said. Finance Secretary Jose T Pardo said the government will retrieve its stake in PNB if Mr. Tan fails to pay today the balance to cover his purchase of the block of shares.

    Business World, 18 September

    Mondragon International Philippines Inc chairman Jose Antonio U Gonzales may have a shot at rehabilitating the bleeding casino operator. A well-placed source told BusinessWorld over the weekend that Clark Development Corp last week voted in favour of the 650-million Philippine peso (USD14.25million at PHP45.612=USD1) offer of Mr Gonzales and PentaCapital Investment Corp to pay Mondragon’s debts as well as get its casino back in full operation. The Gonzales proposal bested the PHP400-million ($8.77 million) offer of Bank of Commerce and Antonio 'Tonyboy' Cojuangco who was keen on saving Mondragon.

    Business World, 18 September

    Business confidence at the start of September continued its slow recovery for the third consecutive survey period, this
    time with respondents seeing a bit of silver lining in their present situation, but with future prospects still quite hazy. According to the latest survey carried out by the local office of the New York-based Audits & Surveys Worldwide exclusively for BusinessWorld, the BW-ASW Business Confidence Index crept up 3.8 index points to 78.5 at the beginning of September from July’s 74.7 index level. Since June, this business confidence barometer has climbed 7.5
    points from the record low of 71.1 posted in May.

    Business World, 18 September

    The government is moving closer to the release of rules governing the implementation of a law that will protect local industries from import surges. Assistant Agriculture Secretary for legislative liaison and legal affairs Ma Celia H Fernandez said only the signature of Trade and Industry Secretary Manuel A Roxas II is missing to make the implementing rules
    and regulations of the Safeguard Measures Act official.

    Business World, 18 September

    The possible reduction of the excise tax of imported petroleum products may cover only socially sensitive diesel fuel, now at around $41 per barrel in the world market, the Department of Energy said. Meanwhile, despite opposition from the oil companies, the ways and means committee of the House of
    Representatives approved a substitute bill seeking to impose higher taxes on imported base oil products. The proposed reduction in the excise tax rate may not necessarily mean the pump price of diesel will go down automatically. However, it will at least peg the price at its present 13.05 Philippine pesos(USD0.29 at PHP45.612=USD1) per liter level in the coming months.

    Business World, 18 September

    A group of economists advised the Philippine government against going beyond the agriculture sector in a new round of talks to advance trade liberalisation at the WTO. Limiting the negotiations will be critical if the Philippines is to focus on improving its access to foreign markets for farm goods
    and leveling the playing field with developed countries that have yet to significantly reduce financial assistance or
    subsidies to domestic farmers. The economists’ proposals were contained in a study commissioned by the Department of Trade and Industry.

    Business World, 18 September

    The Senate Committee on Agriculture will start deliberations this week on a proposed measure that will protect the country’s plants from illegal commercial distribution.
    Assistant Agriculture Secretary for legal affairs and legislative liaison Ma Celia H Fernandez said the Senate committee will
    start its hearings on Senate Bill Nos 1912, 1618 and 108 which seek to establish a system that will protect local plant varieties from piracy. 'Public hearings on the Plant Variety Protection Bill will start this Tuesday in the Senate. The House (of
    Representatives) has already passed its own version,' Ms Fernandez said.

    Business World, 18 September

    The International Finance Corp., the investment bank arm of the World Bank, recently forged a partnership for small and
    medium enterprise lending with the Tambunting Family’s Planters Development Bank (Plantersbank) via a PHP25.5million financial package. The package consists of a
    PHP10-million equity investment by IFC in Plantersbank, a PHP15-million long-term loan and a PHP500,000 technical assistance fund.

    Business World, 18 September
  • DAILODAILO Member PExer
    Nortel to design broadband wireless network in Philippines

    MANILA (AFX-ASIA) - Nortel Networks has signed an 8.0 mln usd contract with Broadband Philippines Inc to design and implement a broadband wireless service in the Philippines, the two companies said.

    The system should be operational next month and would possibly be the first broadband wireless network in Asia, Broadband chief executive officer Jose Perez de Venecia said.

    Nortel will provide the equipment for the connection which does not require laying huge underground cables, local Nortel general manager Jean-Remi Giroux said.

    The network would include such services as high-speed internet and data access, virtual private networks, web hosting, internet data centers and e-business systems, the officials said.

    De Venecia said his company would spend 2 bln pesos in the next two years to install broadband connections to 600 buildings in Manila, particularly in the business districts.

  • DAILODAILO Member PExer
    Bankard suspended after reaching share price rise limit

    MANILA (AFX-ASIA) - Trading of Bankard Inc shares was suspended after the stock reached the 50 pct daily price rise limit yesterday, the Philippine Stock Exchange said.

    "It's standard procedure to impose a trading halt on stocks" that breached the daily share price increase cap, a PSE source said.

    The source said Bankard attributed the steep rise in its shares to the 2. 0-peso cash dividend it announced yesterday. The dividend was for the bank's shareholders on record as of Oct 2.

    Trading of Bankard will resume at 10:00 am, the source said.

    Bankard yesterday closed at 3.35 pesos, up 48.2 pct from previous close of 2.26.
  • DAILODAILO Member PExer
    Globe forges, SAVVIS in JV on high-speed internet access to U.S.

    MANILA (AFX-ASIA) - Globe Telecom has entered an agreement with SAVVIS Communications Corp to expand Globe's high-speed Internet access to the U.S., Globe said in a statement.

    "We chose SAVVIS based on its industry-leading service level agreements that guarantee minimal latency and packet loss over the Internet... Just as importantly, the bandwidth SAVVIS offers makes us confident that the company will be able to handle increased volume from us as our business further expands," Globe president Gerardo Ablaza said.

    Globe said SAVVIS' private network access point in California will connect Globe's network to the largest Internet backbones in the U.S.

    Globe closed unchanged at 835 pesos.

  • DAILODAILO Member PExer
    RP public sector deficit hits PhP49.76B Jan-Jun

    Manila -- The Philippines' consolidated public sector deficit reached 49.76 billion pesos (U.S. $1.08 billion) in January-June, exceeding the ceiling of PhP38.67 billion for the period, the Department of Finance said Wednesday, citing preliminary figures.

    The deficit, which was equivalent to 3% of the gross national product (GNP), was however lower against the PhP60-billion deficit in the first half of 1999.

    The country's public sector position combines the balance sheet of the national government, the central bank, 13 government corporations, pension funds and local government units.

    In a statement, the Finance Department said the wider deficit was largely due to the PhP11.2-billion shortfall in revenue collection of the national government mainly from lower tax revenues and proceeds from privatization of state assets.

    The government's budget deficit reached PhP47.7 billion during the first half, overshooting the projected PhP39.44 billion for the six-month period. "Internal revenue collection suffered shortfalls from the delay in the recovery of corporate incomes due to continued provisioning for losses and expenditures by firms to meet the challenges of increasing competition," the department said.

    "Taxes paid by the financial sector, which accounts for about a quarter of internal taxes, were also adversely affected by lower interest rates which was unmatched by increases in lending activities."

    The financing requirement of the public sector reached PhP70.96 billion in the first half, also in excess of the targeted PhP65.15 billion. On an adjusted basis, the public sector financing requirement stood at PhP72.36 billion, exceeding the goal by PhP3.2 billion.

    The adjusted financing requirement figure excludes the accounts of the Oil Price Stabilization Fund and proceeds from privatization and is being monitored closely by the International Monetary Fund. -- BridgeNews
  • DAILODAILO Member PExer
    MANILA (AFX-ASIA) - Philippine Deposit Insurance Corp is prepared to offer a 1.5-bln-peso liquidity line to Bank of Commerce when the merged entity reopens, PDIC president Norberto Nazareno said.

    Nazareno said the credit facility is intended as a last resort in the event of heavy withdrawals in the first days of operation.

    The central bank early today said Bank of Commerce is likely to reopen in December.

    Bank of Commerce is the surviving entity in the merger between Urban Bank, Urbancorp Investments Inc, Pan Asia Bank and Traders Royal Bank.

  • DAILODAILO Member PExer
    MANILA (AFX-ASIA) - Megaworld Corp is in discussions with the Social Security System to be involved in the latter's twin tower project along East Avenue in Quezon City worth up to 2.5 bln pesos, SSS president Carlos Arellano said.

    SSS, he said, will be contributing its 4.5-hectare lot where the project will be located.

    Megaworld is one of the potential joint venture partners being considered by SSS, he added.

    "Some foreign groups have expressed interest in investing in the project. There were also some other local developers and government financial institutions."
  • DAILODAILO Member PExer
    Prague -- Standard & Poor's, the international credit rating agency, poured cold water on the Philippines' hopes of a sovereign upgrade anytime soon.

    David Beers, S&P's head of sovereign ratings, said on the sidelines of the International Monetary Fund (IMF) meetings in Prague that while the economy was "quite robust," President Estrada's administration had "lost its way."

    Beers gave a grim assessment on Monday of the Philippines, after meeting country representatives regarding its ratings in early August.

    "The Estrada administration has lost its way...It has failed in its impetus for structural reform," Beers said.

    This contrasts with Philippines central bank governor Rafael Buenaventura, who in August in response to the meeting said only two key issues stood in the way of an upgrade of Philippines' country credit rating: enacting a law to restructure the electricity sector, and tighter deficit spending.

    Buenaventura hinted that at least in the near-term, the country's credit outlook in S&P's eyes would be stable. The long-term foreign currency rating for the Philippines is BB+.

    "We were never in the camp of the optimists," said Beers in a frank exchange over the Philippines' credit standing.

    "The challenge now (for the Philippines) is to work more aggressively and give a sense of direction for the benefit of investors. That would be a good pl ace to start," he said.

    Beers also noted that S&P would want to see a tightening in the country's fiscal policy next year, and terms of its legislative agenda, the Philippines had made "encouraging noises."

    "While exports are not as strong as other countries, external indicators are robust. (In terms of a future announcement by S&P), we have to look on the outlook side, not the action side," Beers said. - BridgeNews
  • DAILODAILO Member PExer

    MANILA (AFX-ASIA) - Share prices closed lower on foreign-led selling of selected blue chips following Wall Street's declines, and on inflation rate concerns after local oil refiners raised their pump prices during the weekend, dealers said.

    They said persistent concerns over the direction of the peso, the law and order situation in the southern Philippines, and the budget deficit are keeping investors sidelined.

    The composite index closed down 9.33 points or 0.65 pct at 1,425.16 on volume of 583 mln shares worth 806.31 mln pesos.

    The All Shares index was down 7.32 points at 675.64.

    Decliners led advancers 60 to 8, with 50 stocks unchanged.

    "There are concerns over inflation, especially with the increase in oil prices, over the budget deficit and the Mindanao (situation). Internally, we have a lot of problems. I think for the week, the market will break the 1, 400(-point) support," Manny Cruz, chief strategist at Mark Securities Corp, said.

    "It's the same string of negative news. It could be because the DJIA and the NASDAQ dropped significantly and there are uncertainties on the peso, and there's the extended problem of Mindanao.

    "It could also be because the government failed to secure the International Monetary Fund's approval to raise the budget deficit limit this year," Nina Carpio at Orion-Squire Capital said.

    The commercial-industrial index fell 26.72 points to 2,077.13, while property lost 0.73 points to 439.50.

    Banking and financial services added 2.04 points to 536.91, while mining fell 23.97 points to 1,470.63. Oil was unchanged at 2.05 points.

    The peso averaged 46.230 to the dollar after moving between 46.180 and 46. 250 on volume of 52.000 mln usd. It closed Friday at 46.150.

  • DAILODAILO Member PExer

    MANILA (AFX-ASIA) - Philippine Seven Corp expects to expand its 150-store retail chain to 500 within the next three to five years, new majority shareholder President Chain Store Corp said.

    Philippine Seven and President Chain Store Corp earlier said the latter would acquire 50.4 pct of Philippine Seven, local franchisee of the 7-Eleven store chain, for 8.30 pesos per share. A tender offer is expected to be announced within the week.

    "We hope in three to five years' time there will be an expansion of 500 stores in the Philippines. We hope to discuss with (Philippine Seven chairman) Mr Paterno how to (re)invest the profits (from the new stores) in the Philippine economy," President Chain chairman Chin-Yun Kao said in a news briefing.

    Each of the stores are estimated to cost 4-5 mln pesos, Philippine Seven chairman Vicente Paterno said. This year the company plans to set up 10 new 7-Eleven outlets, mostly in Manila, he said.

    Following the approval of regulators, the President Group will acquire six of the 11 board seats in Philippine Seven, and designate their own representatives to the positions of president and treasurer.

    Paterno said among the selling shareholders are the foreign investors of the company who hold 30 pct of its outstanding stock. These include the Walden Group and Singapore's Iona Investment.

    Paterno said, however, that he will not divest his 11 pct stake.

    Trading in the shares of Philippine Seven, which were suspended today prior to the announcement, will resume tomorrow.
  • DAILODAILO Member PExer
    The Philippines is getting a bit of a reputation. After the cancellation of a euro-currency transaction in May, a downscaling of a samurai bond in August and an unseemly row between the Departments of Finance and Agriculture over an irrigation bond, there is another hitch. Plans to borrow $400 million in three- and five-year loans from ABN AMRO, Metro Bank and Rizal Commercial Banking have been put off for at least a couple of weeks.

    Jose Pardo, secretary of finance said the loan, thought to be at a margin of six-month Libor plus 200 basis points, would be delayed, though he did not give an indication when the fund-raising exercise would be completed. At the IMF/World Bank meeting in Prague on September 28 he said that the IMF had not been convinced by arguments to loosen monetary policy and allow the deficit to overshoot its target. This has given rise to fear that the IMF might withold a $314 million loan.

    The country is struggling to meet a budget deficit target of Peso 62.5 billion ($1.35 billion), which had been exceeded in August.

  • DAILODAILO Member PExer
    Hey PExeR's im back... after a very stressing situation... moving placements, stocks, and currencies around to ensure the highest and safest yield ... we havent seen anything yet... the worse is yet to come...

  • IraIra Member PEx Rookie ⭐
    Does the stock market still exist? :D
  • DAILODAILO Member PExer
    Hello PExERS! Today was a good day for our market... Stocks and rates are hitting their ceilings making all time highs for the year... Get in on it...

  • DAILODAILO Member PExer
    Manila, Jan. 22 -- Philippine stocks soared a whopping record 17.56 percent at Monday's close as euphoric investors trooped back to the market and celebrated the peaceful transition of power in the country over the weekend to new President Gloria Macapagal Arroyo, brokers said.

    The 30-share Philippine composite stock index surged 255.13 points to finish at 1,708.06 points.

    The main share index flew 34.5 percent to hit an intra-day high of 1,953.63 points minutes after the market opened but later succumbed to some profit-taking.

    "A lot of clients started coming back. The buying orders were overwhelming," said Teresa Lee-Jahrling of Tower Securities.

    The market's value turnover surged to 7.16 billion pesos (PhP) from PhP1.11 billion Friday. Gainers pounced on losers, 140 to 10 with 11 issues closing unchanged.

    Arroyo was sworn in Saturday in a peaceful ending to the political turmoil that began in October last year when fallen leader Joseph Estrada was accused of bribery.

    Estrada was on trial by the Senate until last week when the proceedings collapsed after the senators, acting as judges, voted 11-10 to dump key evidence that may prove the graft charges against the former president.

    A significant segment of the populace led a bloodless revolt against Estrada which prompted key Cabinet officials and the military to abandon him Friday. Estrada finally stepped down a day later and fled to the recluse of his home in a Manila suburb with his family.

    "The political risk is gone and confidence is back. That's why we're seeing this bull run," said Astro del Castillo, head analyst at A&A Securities.

    Blue chip gainers included Metropolitan Bank and Trust Co. which rose PhP64.00 to PhP241.00 and Ayala Land Inc. which jumped PhP1.60 to PhP7.10.

    Philippine Long Distance Telephone Co. climbed PhP85.00 to close at PhP950.00 while SM Prime Holdings Inc. closed up PhP1.60 to PhP7.00.

    Power retailer Manila Electric Co.'s A and B shares rose PhP14.00 and PhP12.50 to PhP59.00 and PhP60.50, respectively.

    Tower Securities' Lee-Jahrling expects the upbeat mood to continue during the week but said a technical correction may be in order owing to the market's sharp rise. -- BridgeNews
  • DAILODAILO Member PExer
    Singapore's DBS bank cautions against excessive Arroyo euphoria

    Singapore -- Singapore-based DBS Bank cautioned Monday against excessive market euphoria at the downfall of Joseph Estrada, saying Gloria Arroyo's first 100 days in office will determine investor confidence.

    "Arroyo has little choice but to succeed, or else the euphoria in the market will be just a relief rally, nothing more," the bank said in a market research report.

    As investors celebrated the weekend replacement of Estrada, with share prices closing 17.6 percent higher after earlier rocketing up 34.5 percent, DBS warned that the new president still had to prove herself.

    "What Arroyo does and does not do over the next 100 days will determine how investors view the Philippines over the medium term.

    "Judging from the euphoria in the market, the expectations are high, which leaves us cautious about large disappointments."

    The DBS report said the Estrada "crisis" exacted a heavy toll on the Philippines, economically, politically and socially, and Arroyo "faces the monumental task of healing the country in all aspects.

    "She is likely to have a difficult time uniting the people while bringing economic recovery to the country," it said.

    Despite her stellar record in terms of popularity and competence, "the people are still unsure of her ability and integrity as president...many are still wary of her showbiz personality, seeking assurances that she is indeed the smiling, gracious and kindly lady she projects herself to be."

    DBS, Southeast Asia's largest banking group, saw Arroyo's campaign promises as lacking a coherent national vision, and said there was a risk of the market over-pricing the hope that she brings to the country.

    "We maintain our view that Arroyo is no panacea for the acute challenges confronting the Philippines," the report said.

    "Until we get a clearer picture after Arroyo's first 100 days, there is still a risk that the Philippines has stepped out of one woods into another." -- Agence France-Presse from BridgeNews
  • DAILODAILO Member PExer
    Moody's ratings review on Philippine Equitable not for downgrade

    Manila -- International ratings agency Moody's Investors Service issued a correction Monday, saying that the financial strength rating of D for Philippines' Equitable PCIBank was placed under review, not for downgrade, and the review direction was uncertain.

    In view of news that Equitable-PCI Bank may be interested in selling a controlling stake to a third party, Moody's said that such review "will focus on the benefits brought by any potential investment partner, and the resulting impact on Equitable-PCI Bank's financial strength. The review will also consider the degree to which on-going political developments in the Philippines, and any failure to consummate a deal, might affect the bank, which has experienced withdrawals in recent weeks. "

    The international ratings agency expects that, as the country's third-largest bank, Equitable-PCI Bank will receive strong liquidity support from the central bank, if and when it is needed, and this supports the current deposit ratings.

    Equitable-PCI Bank is the Philippines' third-largest bank, with assets of PhP254.8 billion at year-end 1999. -- BridgeNews
  • DAILODAILO Member PExer
    Metrobank bad loan ratio at 15.56% as of Dec.19

    Manila -- Metropolitan Bank and Trust Co. (Metrobank), the Philippines' biggest lender, said Friday its non-performing loans (NPL) hit 15.56 percent of total loans as of December 19 last year, well within the average bad loan ratio of the country's commercial banks last year.

    Metrobank said its total bad loans amounted to 29 billion pesos (PhP) during the period.

    In a published report, Metrobank said its consolidated assets stood at PhP439.39 billion (U.S. $8.09 billion) while its total capital funds amounted to PhP46.76 billion as of December 19 last year. No comparative figures were given. -- BridgeNews
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    MANILA (Dow Jones)--Shares of Philippine Long Distance Telephone Co. (PHI) are up 0.5% Thursday after the company said it will reduce its rate for outbound international calls to 40 U.S. cents a minute, traders said.
    At 0314 GMT (10:14 p.m. EST Wednesday), PLDT shares were up 5 pesos ($1=PHP49.129) at PHP920, on 7,970 shares traded. The stock is doing better than the overall market. The Philippine Stock Exchange Index is already down 1%.

    "The rate cut is good for PLDT since it will further allow the company to gain more market share," said a senior analyst at a foreign brokerage house.

    PLDT's new rates may challenge main competitior Globe Telecom Inc. (Q.GTL) to lower its call rates to remain competitive.

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