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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 …

EastWest Bank profit rises 13%

Economy

Mar 172014

MANILA, Philippines – Gotianun-led East West Banking Corp. posted a 13 percent increase in net income to P2.1 billion last year from P1.8 billion in 2012 on the back of growth in its core businesses, the bank said in a statement. It’s total assets stood at P142.3 billion, up by 17.2 percent vs. 2012’s P121.4 billion. Despite the challenging 2013 landscape, EastWest said it posted strong performance in its core businesses of loans and deposits. Customer loans registered a 32.1 percent increase to P95.6 billion while consumer loans grew 29.4 percent to end the period at P48.9 billion. Credit cards, auto, mortgage and personal loans businesses also posted healthy double-digit growth from the previous year. Corporate loans at the end of the year stood at P46.7 billion, up 35.1 percent from the previous year. Total deposits stood at P111.2 billion, up 21.9 percent, driven by its expanded branch store network. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Low-cost deposits (CASA) grew 27.9 percent while high-cost deposits increased 14.4 percent. The bank improved its low-cost deposits to total deposits ratio that resulted in the decrease of interest expense by 15.3 percent year-on-year. In 2013, EastWest opened a total of 55 new branch stores to end the year at 300. The consolidated branch store network of EastWest Unibank and EastWest Rural Bank currently stand at 369. The bank registered its highest net interest margin of 8.4 percent, on account of its above industry loan growth that resulted in net interest Read More …

Sustained rise in GIR level seen

Economy

Mar 162014

MANILA, Philippines – The country should see sustained growth in its gross international reserves (GIR) as global financial markets experience less volatility, the research arm of Metropolitan Bank & Trust Co. said. “As the dust settles in the global financial markets, the rise in the country’s GIR levels in the coming months is seen to be sustained,” Pauline Revillas, research analyst at Metrobank, said in a recent report. “The BSP is in fact forecasting its GIR to grow by almost six percent this year from the end-2013 level of $83.2 billion,” she noted. GIR went up to $80.343 billion in February after falling to a 19-month low in January. The Bangko Sentral ng Pilipinas (BSP) attributed the rise in reserves to revaluation adjustments of gold and income from the central bank’s foreign exchange operations and investments abroad. “The volatility in the global financial markets was a factor in the rise of the February level,” Revillas said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “For one, the market’s risk aversion, on the back of sluggish US and Chinese economic growths, fueled a rise in the demand for commodities like gold. Thus, the value of gold in the international market rose in recent months,” she added. Revillas further said: “Furthermore, in February, the peso managed to regain its ground and remained stable within the 44-level amid the pressure on the US dollar.” The GIR indicates a country’s ability to pay for its foreign debt and imports of goods and services. Read More …

BSP urges all sectors to work together to prevent ATM fraud

Economy

Mar 162014

BSP urges all sectors to work together to prevent ATM fraud

MANILA, Philippines – Banks, law enforcers, and consumers should all work together to minimize losses from stolen information from automated teller machine (ATM) cards, the Bangko Sentral ng Pilipinas said. “This kind of loss should be approached as a shared responsibility,” BSP Governor Amando M. Tetangco Jr. said in an e-mail to reporters over the weekend. “Banks are required to take all prudent measures to minimize the risk. Customers should be careful in handling their ATM cards. Police authorities should be running hard after the criminal syndicates,” he said. Tetangco made the comment when asked if banks should be required to provide insurance products to cover losses from ATM fraud or scams. “Without these in place, insurance will be a costly and counter-productive proposition. Customers will ultimately bear the cost either in higher fees or more restrictive services,” Tetangco said. The central bank has estimated losses to ATM fraud at P220 million in 2013, Vicente De Villa III, director at the BSP’s Supervisory Data Center, told a Senate hearing last month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Thieves have resorted to skimming, in which information stored in one’s card is stolen through devices installed in an ATM, the BSP chief said. “A skimmed card by itself will not work unless the PIN has also been compromised. So a related issue is how the password is stolen with the skimmed card,” Tetangco said. “In the past, it was the hidden camera that was the solution. Banks could validate Read More …

SEC issues new accreditation rules for credit rating agencies

Economy

Mar 162014

SEC issues new accreditation rules for credit rating agencies

MANILA, Philippines – Credit rating agencies (CRAs), hired to assess the creditworthiness of companies and debt issuances, will be subject to stringent accreditation and operational requirements. In a memorandum, the Securities and Exchange Commission (SEC) said it came up with guidelines on the accreditation, operations and Reporting of CRAs “to increase transparency and improve the integrity of credit ratings.” CRAs are tapped by corporations that plan to offer of issue commercial papers of debt securities like bonds. Such firms perform credit evaluation of corporations and business projects or of debt issues, assessing the overall creditworthiness of the borrower as a guidance to the investing public. Under the guidelines, SEC said a CRA should be a stock corporation with a paid-up capital of at least P10 million, which will increase to P15 million after the third year to cover operational improvements. CRAs should be composed of qualified and independent officers and personnel to conduct rating activities. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For the application for annual accreditation, CRAs are required to submit a list of shareholders and corporate affiliation, other business activities, a written code of conduct, rating scale and criteria, operating procedures, and copy of written agreement with issuers. Prior to rating the creditworthiness of an issuer or debt security, the CRA should sign a contract to render assessment services. Local debt watchers include Philippine Rating Services Corp. and Credit Rating and Investors Services Philippines Inc. The top three global credit raters are Fitch Ratings, Standard Read More …

Market seen slowing down as earnings season ends

Economy

Mar 162014

Market seen slowing down as earnings season ends

MANILA, Philippines – The conclusion of the earnings season and uncertainties over key developments overseas will dampen sentiments in the stock market this week, analysts said. Overseas headlines like tensions in Ukraine and US Federal Reserve tapering will dictate trades in a week marked by healthy correction, they said. “Prospective weakness might still be felt early this week, with no firm resolution in sight yet on the geopolitical conflict in Ukraine,” said online brokerage firm 2Trade-Asia.com. “The ongoing technical correction, along with the dampened sentiment on fundamental factors, could send the main index back to 6,250,” said Abbygayle M. Estrella, an analyst at AB Capital Securities Inc. Freya Natividad, investment analyst at Papa Securities, said the main index’s drop in the 6,300 territory opens up the possibility of a technical rally early in the week, before trades are dominated by overseas sentiments. Week-on-week, the Philippine Stock Exchange index (PSEi) dropped 1.4 percent or 90.59 points to 6,391.24, ending its four-week rally. The decline was led by the service sector (-2.5 percent) and property (-1.7 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Investor pessimism dominated the week due to continued political tension in Ukraine. On the economic front, world’s second largest economy China reported weak retail sales and factory output data for February. Average turnover value eased slowed 29 percent to P7 billion. However, net foreign buying hit P645 million, reversing the previous week’s net selling of P186 million. For this week, investors will look out for trading Read More …

SEC warns public anew on investment scams

Economy

Mar 152014

SEC warns public anew on investment scams

MANILA, Philippines – The country’s corporate watchdog has warned the public anew against conducting business with numerous firms not permitted to sell investment instruments. In a public notice, the Securities and Exchange Commission (SEC) reminded investors about the banned sale of shares in a Boracay-based property developer. The SEC said the public should take note that the Court of Appeals in 2010 affirmed a cease and desist order that prevented Crown Regency Holiday International Inc., Fuente Triangle Realty Development Corp., Megatrend Realty Network Inc. and Boracay Multiple Properties Developers Inc. from selling investment contracts and preferred shares of Boracay Multiple Properties Developers Inc. The agency said the companies have yet to comply with the requisite registration statement for the securities. “The aforementioned decision was upheld by the Third Division of the Supreme Court in its resolution dated Aug. 15, 2012,” SEC said, adding that the ban was final and executory. The corporate regulator also issued a warning against Xingasia Marketing Corp., which is offering investment opportunities like “corperate bond notes” through subsidiaries Xingasia Lending & Investors Corp. and Xingasia Invest & Trust Bank Corp. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Xingasia Marketing is not, under any circumstance, authorized or licensed to engage in activities and/or solicit investments,” the SEC said. SEC documents showed that Xingasia Marketing is not a registered issuer of securities. It is also not licensed to act as securities broker, investment adviser, investment house and transfer agent. “It has not filed nor has it Read More …

Phl lifts decade-long ban on Japanese beef

Economy

Mar 152014

Phl lifts decade-long ban on Japanese beef

MANILA, Philippines – The Philippines is now allowing the entry of Japanese beef after a decade-long ban due to the outbreak of mad cow disease in Japan. The Philippines banned the entry of Japanese beef in 2001 following the outbreak of Bovine Spongiform Encephalopathy (BSE) or mad cow disease. Talks for the resumption for exports commenced in 2004 and were concluded recently. As of last year, the World Organization for Animal Health said Japan has a “negligible risk” of mad cow disease. In a statement, the Japanese embassy in Manila said discussions with the Philippine government on the re-entry of Japanese beef into the Philippine market had been finalized. “Since 2004, both governments of the Philippines and Japan have been discussing animal health conditions to import Japanese beef from Japan to the Philippines. The discussion has recently been finalized and the Philippine government has finally approved the importation of Japanese beef from Japan,” the embassy said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Philippines and the Animal Quarantine Service of Japan (AQS) will soon start issuing the foreign meat establishment (FME) certificates to the accredited exporters. These certificates will accompany beef shipments.

SSS revenues rise 6% to P38 B in 2013 on higher contributions

Economy

Mar 152014

SSS revenues rise 6% to P38 B in 2013 on higher contributions

MANILA, Philippines – The Social Security System (SSS) registered a six percent rise in revenues in 2013 on higher contributions from members and steady investment earnings. In a statement, the state pension fund said net revenues reached P38.3 billion last year as member contributions breached the P100-billion level. Contribution collections amounted to P103.1 billion, up nine percent from P94.2 billion in 2012. “The increase in collections was bolstered by ongoing campaigns to promote the value of active SSS membership, improved monitoring of employer compliance and intensified coverage drives spanning a wide range of sectors, including the hard-to-reach informal sector and overseas Filipino workers,” said May Catherine Ciriaco, SSS vice president of management services and planning. Total revenues stood at P137.4 billion in 2013, up seven percent from P128.1 billion in 2012. About 75 percent of the total came from contributions. Operating expenses declined one percent to P7.6 billion, which represented 57 percent of the allowed charter limit. This was a result of measures taken by management to maximize SSS resources and promote system-wide prudent spending. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Benefit payments, which account for 92 percent of total expenditures, went up nine percent to P91.4 billion. SSS continued its regular monitoring of pension releases thru the Annual Confirmation of Pensioners (ACOP), a program that protects the fund from fraudulent claims by requiring pensioners to present themselves to SSS or to their depository bank on the member’s birth month to prove their continued eligibility for pension. Read More …

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