philstar.com - Business

NHMFC bonds retain high ratings

 Economy
Mar 232014
 
NHMFC bonds retain high ratings

MANILA, Philippines – The National Home Mortgage Finance Corp. (NHMFC) retained its PRS Aa rating from the Philippine Ratings Services Corp. for its P420 million residential mortgage backed securitization issue. NHMFC likewise retained its PRS Baa rating for its P183.74 million class C subordinated notes. Obligations rated ‘PRS Aa’ are of high quality and are subject to very low credit risk.  This means the issuer’s capacity to meet its financial commitment on the obligation is very strong.  Obligations rated ‘PRS Baa’, on the other hand, exhibit adequate protection parameters.  Adverse economic conditions and changing circumstances, however, are likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.  The ratings reflected the following considerations: sustained strong credit enhancement and standby liquidity facilities; additional layers of protection, as well as collection efficiency enhancements, considering the weakening asset quality of accounts included in the pool and the material amount of restructured loans included in the portfolio; and the relatively positive economic outlook for the Philippines.    PhilRatings said the interest and penalty collections from the asset pool for the collection period  April 2012 to December 2012  as well as from January to May 2013 have more than adequately covered senior expenses, coupon payments for the Class A and B Senior Notes, as well as servicer fees.    Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Philratings said “excess spread has continued to accumulate from April 2012 to May 2013 and were thus transferred to the Read More …

Dell eyes top 2 spot in Phl PC market

 General
Mar 232014
 
Dell eyes top 2 spot in Phl PC market

MANILA, Philippines – US technology giant Dell is aiming to be among the top players in the Philippine market for personal computers (PCs) and tablets, a top company executive said. “We want to be within the top two players in the Philippine market within a reasonable period of time,” Harjeet Singh Rekhi, Dell’s general manager for end-user computing in South Asia, said in a press conference. He said the company sees huge opportunity in the country where demand for PCs and tablets is growing. Rekhi noted that Filipinos buy 1.8 to 1.9 million PCs in a year. “We expect that to double this year,” he said. He also said the country is the second largest market for tablets in the Southeast Asian region. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We want to leverage that growth,” he pointed out. The company currently accounts for a 28 percent share of the local desktop market. Aside from PCs and tablets, demand for enterprise solutions is likewise seen to rise. To take advantage of growing demand, Dell Philippines country manager Christopher Papa said the company will continue to work to make technology more affordable and relevant to all consumers. “Dell is coming up with new product offerings to address different customer needs,” he said. Saleh Munshi, Dell’s managing director for Indonesia and South Asia developing markets, said company’s ongoing solutions tour is intended to showcase the company’s products and solutions which will allow consumers to thrive given information technology (IT) trends Read More …

Construction seen to drive growth in next 3 years

 Economy
Mar 222014
 
Construction seen to drive growth in next 3 years

MANILA, Philippines – The construction industry will likely emerge as one of the main drivers of the economy in the next three years due to its strong growth potential, the research arm of Metropolitan Bank & Trust Co. said. “Given the base and seasonal effects, the construction industry still has a substantial upside potential in the next three years and would be one of the fast movers in the Philippine economy,” Mabellene Reynaldo, research analyst at Metrobank, said in a research note. “Private construction will still be propped up by steady real estate demand, especially as tight supply in Metro Manila drives growth in other regional hubs,” she added. “Reconstruction efforts in typhoon-damaged areas will also support both private and public construction values,” the Metrobank analyst further said. Construction contracted 0.8 percent in the fourth quarter last year, paling in comparison with a 29.9 percent growth seen in the same period in 2012, government data showed. This dragged last year’s construction growth to only 11.1 percent, slower than the 15.7 percent recorded in 2012. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The fourth quarter contraction so far is not indicative of a slowing construction industry,” Reynaldo pointed out. “A high fourth quarter 2012 base factored in the contraction, and private construction for the first nine months of 2013 was actually strong at 12.6 percent year-on-year,” she noted. The analyst also added construction work is done during the first half historically due to a wet season experienced by the Read More …

Sigh of relief

 Economy
Mar 222014
 
Sigh of relief

Just recently, the Manila Electric Co. (Meralco) announced a hefty slash in the utility’s deferred rate adjustments, resulting from the recent move by the Energy Regulatory Commission (ERC) to void the previous quarter’s prices at the Wholesale Electricity Spot Market (WESM). Meralco spokesperson Joe Zaldarriaga said the utility would cut the deferred charge for its January billings to just 45 centavos per kilowatt-hour (kwh), or just a tenth of its earlier announced P4.56 rate, in response to the drastic cut in WESM prices arising from the ERC-ordered recomputation by the Philippine Electricity Market Corp. (PEMC) of the spot market’s sky-high rates during the October-December period. For his part, Meralco utility economics chief Larry Fernandez explained that Meralco was able to effect such a significant cut because, following the ERC-ordered re-calculation, WESM prices last December fell to a per-kwh average of P8.33 from the original P36. “Kaya sumunod ang generation charge mula original na P10.23 per kwh, ay naging P6.12 per kwh,” he said. Credit must be given to the ERC which has finally mustered the guts to wield the state’s police powers in intervening in the spot market and imposing lower, regulated electricity prices in response to the alleged move by certain independent power producers (IPP) suppliers to create an artificial shortage and whip up WESM’s record rate spikes. Credit also goes to Energy Secretary Jericho Petilla, because everything started when he told the Supreme Court that regulators had been investigating the state-run Malaya Thermal Plant and 11 IPPs for Read More …

Saudi visitors to the Philippines up by 104% from 2009

 Economy
Mar 182014
 
Saudi visitors to the Philippines up by 104% from 2009

MANILA, Philippines – Saudi Arabian visitors to the Philippines more than doubled since 2009, the Department of Foreign Affairs (DFA) reported on Tuesday. “From only 19,101 Saudi visitors in 2009, the Philippines attracted a record 38,969 last year, a growth of 104 percent. Last year’s total was a growth of nearly 29.7 percent from the previous year, while the average growth of visitor arrivals since 2009 has been at 19.8 percent,” the state agency said. DFA said the spike in Saudi Arabian tourist arrivals came from the Embassy’s tourism promotion campaigns in the Middle Eastern country, in partnership with Saudi travel agencies accredited with the Philippine Department of Tourism (DOT). Last December, DOT officials went to Saudi Arabia to promote Philippine tourism in Riyadh. The event was attended by officials from the Saudi Chambers of Commerce and tour operators in the country. In April 2013, the Philippine Embassy in Riyadh and DOT also participated in the Riyadh Travel Fair. “The event drew 998 visitors, with many inquiring about holiday packages to prime destinations like Boracay, Palawan, Bohol’s Chocolate Hills and Panglao Island, and Davao’s Pearl Farm,” DFA said, adding that DOT and the embassy will be joining the event again this year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The DOT, in coordination with the Philippine Tourism Office in Dubai, also held a familiarization tour of Manila, as well as Tagaytay, Clark and Subic, for selected Saudi travel agents.  “It was an opportunity for them to personally see Read More …

Peso slightly improves midday Tuesday

 Economy
Mar 182014
 
Peso slightly improves midday Tuesday

MANILA, Philippines – The peso slightly improved against the dollar midday Tuesday, settling at 44.636 from the previous day’s 44.69. Total volume transacted at the Philippine Dealing System amounted to $324.6 million in the morning trade, lower than the $449 million posted in the same period the previous day. The peso opened Tuesday at 44.64.

Happy birthday, FVR

 Economy
Mar 172014
 
Happy birthday, FVR

The country’s 12th president celebrates his 86th birthday today. Fidel Valdez Ramos served as chief executive of this nation from 1992 to 1998 in what can be described as a transformative point in the country’s economic landscape. More than two decades after he assumed the highest government post in the country, he continues to tirelessly serve in any way he can. In my column last month commemorating the EDSA People Power movement, I had mentioned his role in initiating reforms (including computerization) at the Bureau of Customs. He sent me a note of thanks the following day, but qualified that the real credit for the Customs reform during his stint as President belonged to Customs Commissioner Willy Parayno, Associate Commissioner Alex Arevalo, National Security Adviser Joe Almonte and Department of Finance Secretary Bobby de Ocampo. With his note were issues of Visionary, a quarterly publication of Ramos Peace and Development Foundation Inc., of which he is chairman, and a copy of his latest book, Moving Ahead, a compilation of selected articles from his Sunday columns in the Manila Bulletin. Thank you, FVR, for tirelessly reminding me that no matter our age, we can always be of positive value to our country. Happy birthday! On using roros to solve the truck ban Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Today, we give way to our readers’ letters. The topics range from solutions to the traffic problem, to the state of our crowded ports, to mining, and finally rice trading. Read More …

Index rises despite lack of market-moving leads

 Economy
Mar 172014
 
Index rises despite lack of market-moving leads

MANILA, Philippines – The Philippine equity market arrested three consecutive days of decline in a seesaw trading with the absence of market-moving leads. The Philippine Stock Exchange index rose 0.14 percent or 8.75 points to 6,399.99, recovering in the last few minutes from the intraday low of 6,371.70. The broader all shares index inched up 0.07 percent or 2.60 points to 3,869.32. “It was a seesaw trading and market seems like it is consolidating with the dearth of news,” said Astro del Castillo, managing director of First Grade Finance Inc. Del Castillo said the market is still keeping its eye on economic data in the US and the buildup of tensions in Ukraine. Asian markets also traded between gains and losses, with sentiments dragged by the West’s new warning of more sanctions on Russia. Residents of Crimea voted to break free from Ukraine and join Russia. Japan’s Nikkei 225 picked up 0.35 percent or 49.99 points to 14,277.67. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Locally, most counters were in the red, paced by mining and oil that dropped 0.36 percent or 50.72 points to 14,226.09. But holding firms gained 0.37 percent or 22.04 points to 5,915.46. Losers outpaced advancers, 92 to 73, while 44 stocks did not change. Turnover value slightly eased to P7.27 billion from P7.55 billion on Friday. Most active shares closed higher, led by JG Summit Holdings Inc. that rallied two percent while SM Prime Holdings Inc. climbed 1.81 percent. Del Castillo said the Read More …

Smart’s LTE to cover major cities, 25 towns

 Economy
Mar 172014
 
Smart’s LTE to cover major cities, 25 towns

MANILA, Philippines – Smart Communications Inc., the wireless arm of dominant carrier Philippine Long Distance Telephone Co. (PLDT), is expanding its 4G (4th Generation) long-term evolution (LTE) footprint as part of the PLDT Group’s P32 billion capital expenditures this year. Rolando Peña, technology head for PLDT and Smart, said the expansion would allow the company to cover all major cities as well as 25 more municipalities all over the country. “This move is seen to extend the reach of Smart’s 4G LTE network to close to 50 percent of the country’s population, maintaining its position as the mobile company with the most extensive 4G LTE network in the Philippines,” Peña said. 4G refers to the fourth generation of mobile communications technology, which includes HSPA+, Wimax and LTE, with LTE being the fastest commercially available mobile Internet service in the world, offering data speeds of up to 20 times more rapid than 3G connections. With such data speeds, users are able to stream high definition (HD) videos, download large files or upload photos and videos on their mobile devices without lag or delay. “We are expecting a tremendous growth in data traffic, and we hope to sustain the pace of our aggressive LTE roll-out in order to keep up with the demand of our subscribers,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He pointed out that the expansion of the 4G network is being pursued in response to the growing demand for faster mobile broadband services. “Around Read More …

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