philstar.com – Business – Page 215

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Global air traffic rises in May amid Asia Pacific slowdown

Economy

Jul 072013

Global air traffic rises in May amid Asia Pacific slowdown

MANILA, Philippines – Global passenger traffic grew at a faster rate of 5.6 percent in May amid the slowdown in the Asia Pacific region including the Philippines, data from the International Air Transport Association (IATA) showed. IATA director general and chief executive officer Tony Tyler said air travel continued to expand at a healthy rate as overall demand rose 5.6 percent while capacity climbed 5.2 percent, pushing the load factor up to 78.1 percent. “Global economic performance remains a concern, however, demand for air travel continues to expand. The primary driver is growing demand for connectivity to emerging markets,” Tyler stressed. Data showed that May international traffic passenger demand rose 5.7 percent compared to the year-ago period amid a 5.6- percent rise in capacity resulting to a load factor of 77 percent. International traffic of Asia-Pacific airlines rose at a slower pace of 3.7 percent in May compared to the year-ago period but this was more than offset by a 5.5-percent rise in capacity resulting to a 1.3-percent decline in load factor to 74.1 percent. “The softness in demand is consistent with falls in business confidence in major Asian economies as well as a slowdown in trade growth momentum. In particular gross domestic product (GDP) growth in China did not meet expectations in the first quarter and business confidence has slipped to levels indicating contraction in manufacturing activity,” Tyler explained. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He added that the strongest growth occurred in the emerging markets Read More …

Vista Land unit seeks BOI perks

Economy

Jul 072013

MANILA, Philippines – Lumina Homes Inc., a unit of listed Vista Land and Lifescapes Inc. is seeking incentives for a new housing project in Batangas. The Board of Investments (BOI) said Lumina Homes has filed an application for registration with the agency “as a new developer of low cost mass housing project (Lumina Phase 1) with a capacity of 158 low-cost mass housing units on a non-pioneer status.” The project is located at Brgy. San Vicente, Sto. Tomas, Batangas. Should its application with the agency be approved, Lumina Homes can quality for incentives such as income tax holidays. The government offers incentives to firms that invest in preferred sectors or activities. Under the 2012 Investment Priorities Plan (IPP), which serves as the country’s investment promotions blueprint, mass housing is considered a preferred activity. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Lumina Homes is partly-owned by Vista Land. Vista Land, the country’s largest homebuilder, caters to all income segments in the country through its wholly-owned subsidiaries Brittany Corp., Crown Asia Properties Inc., Camella Inc., Communities PhilippinesInc. and Vista Residences Inc. Its range of product offering starts from below P1 million to P48 million. As of the first quarter, Vista Land’s net income amounted to P1.342 billion, 29 percent higher than the P1.036 billion in the same period last year.

Jolliville eyes $75-M hydro plants

Economy

Jul 072013

MANILA, Philippines – Listed holding firm Jolliville Holdings Inc. plans to pursue two new hydropower projects with a generation capacity of 20 megawatts (MW) worth as much as $75 million. The company aims to initially ride on the increasing energy demand in Mindoro province before expanding in new areas, its top official said. “After the first 10-MW mini-hydro power plant, we might expand our hydropower plant by another 10-20 MW using the same source,” Jolliville chairman and CEO Jolly L. Ting said in an interview. Based on a benchmark investment of $3-3.5 million per MW for hydropower projects, Jolliville will need $60-75 million for the two renewable energy projects. Last week, Jolliville subsidiary Ormin Power Inc. borrowed P1.1-billion from state-owned Development Bank of the Philippines to fund the construction of the 10-MW Inabasan River hydropower project. Ting said the loan covers 70 percent of the total project cost, with the remaining 30 percent to be sourced from internally-generated cash. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The first phase of the run-of-river hydropower venture will start commercial operations in 2015. “We will have to finish the first 10 MW and then we can be ready for another 10 MW,” Ting said, adding that Inabasan River can produce as much as 30 MW of power. Electricity generated by the power plant will be sold to the Oriental Mindoro Electric Cooperative (Ormeco), the sole power distributor in the province. Ormeco distributes power to the entire province of Oriental Mindoro which Read More …

IT solutions provider opens new Makati office

Economy

Jul 062013

IT solutions provider opens new Makati office

MANILA, Philippines – Information technology (IT) solutions provider Fritz and Macziol Asia Inc. has opened a new office in Makati City as it seeks to expand its workforce and operations. Ernesto Alfredo Cruz, Fritz and Macziol Asia senior vice president for sales and marketing, said in an interview that the company decided to move to Zuellig building in Makati City from the Net One Center in Taguig City as part of its expansion plan. “We are already expanding…We were occupying two floors (in Taguig) and we need more. We needed an additional floor but they couldn’t give us anymore,” he said. The size of the new office, he said, is double the space previously occupied by the company and would allow the company to hire more IT professionals. “Initially, in the workforce, we are targeting to add 30 to 40 percent,” he said. The company has around 70 employees at present.

SMDC launches Breeze Residences

Economy

Jul 062013

MANILA, Philippines – SM Development Corp. (SMDC) recently launched its latest residential condominium project, Breeze Residences, during ceremonies at the SMDC Grand Showroom in the Mall of Asia Complex in Pasay City. Conveniently located along Roxas Blvd., Breeze Residences is a 38-story, single tower condominium that is within easy reach of shopping, dining, and entertainment destinations such as the Mall of Asia Complex, Entertainment City and Star City. It is also easily accessible to transport hubs such as NAIA 1, 2 and 3, EDSA-Taft MRT station, and bus transit points along EDSA. It is also within close proximity to various educational, medical, and religious establishments, as well as cultural and tourist hotspots. Master planned to suit the needs and lifestyles of single young professionals, expats and starting families, the amenities of Breeze Residences include a grand lobby, two lap pools, a kiddie pool, landscaped gardens with covered gazebos, poolside lounge areas, a children’s playground and a Sky Lounge at the penthouse, from which residents can unwind over panoramic views of Manila Bay or the Manila skyline. Residents will also enjoy the convenience of having various commercial establishments at the ground floor. Breeze Residences offers studio and one-bedroom units with balconies, designed to capitalize on magnificent views of both Manila bay and the Makati cityscape. Unit sizes range from 22 square meters (sqm) to 41 sqm. The current selling prices of the units are from about P2 million to P4.9 million. Construction of Breeze Residences commenced in May 2013, and target Read More …

Philips, ADB bat for energy efficiency investments in Phl

Economy

Jul 062013

Philips, ADB bat for energy efficiency investments in Phl

MANILA, Philippines – Philips, a diversified consumer health care and lighting company, has stressed the importance of energy efficiency initiatives in the Philippines. Harjit Gill, chief executive officer of Philips Asean & Pacific, said it is important to raise consumers’ awareness on energy efficiency, saying it would strongly benefit the economy. Gill recently spoke during the recent 8th Asia Clean Energy Forum organized by the Asian Development Bank (ADB). In the same forum, officials presented the results of an ADB study, which said that if governments push for more energy efficiency investments, there would be less need to build power plants. This, in turn, would free up government funds for spending elsewhere, the ADB study said. Gill said that as a company, Philips has a wide array of consumer products such as LED lights that promote energy efficiency. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The company is banking on growing sales in the Philippines and the rest of the Asia-Pacific region to hit its double-digit growth target for the year. “The plan is to grow our business here,” Gill said. “The region is growing. Our ambition is to grow double-digit,” she said. Growth will come from Philips three major business segments – healthcare, consumer lifestyle and lighting. In the first quarter of the year, Philips grew 34 percent in the Asia-Pacific region, driven by strong consumer demand. In the Philippines, she said the company would continue to bring energy efficient lighting solutions and would target several institutional Read More …

Positive sentiments boost share prices

Economy

Jul 052013

MANILA, Philippines – The Philippine Stock Exchange index (PSEi) advanced 0.56 percent or 36.22 points to settle at 6,500.48, ending the week with a two-day climb as investors turned positive following a streak of favorable foreign news. The broader all shares index added 0.44 percent or 17.31 points to 3,972.63. “The trend is that global markets remain cautious but positive and the local market continued to be overwhelmed by bargain hunters,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview. Asia Pacific also ended the week with another gain, giving local investors a positive sign as jitters eased in the past few days, Del Castillo said. Asian shares rose on Friday as investors take position ahead of the US Labor Department’s release of employment data. A weaker job market is seen to convince the US Federal Reserve not to ease its bond buying stimulus program. US financial markets were closed for the Independence Day holiday. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the local bourse, counters were mixed, led by holding firms that added 1.28 percent or 75.54 points to 5,960.72. Decliners were paced by 0.56 percent or 82.45 points to 14,532.53. The value of shares traded fell to P5.18 billion compared with P5.43 billion on Thursday. Net foreign selling hit P188.49 million. Advancers outplayed decliners, 86 to 64, while 46 stocks did not change.

Federal Land raises P5B via corporate notes

Economy

Jul 052013

Federal Land raises P5B via corporate notes

MANILA, Philippines – Federal Land Inc., the property development arm of tycoon George Ty’s GT Capital Holdings Inc., has raised P5 billion through the issuance of corporate notes. The additional cash from the coompany’s second fundraising in the capital markets will help in the construction of existing projects, it said. In a disclosure, Federal Land said it signed a P5-billion corporate notes facility deal with a syndicate of institutional lenders composed of banks, insurance companies, pension funds and trust institutions. “Proceeds of the facility, which consists of seven- and 10-year fixed-rate notes, will be used for ongoing projects, working capital and general corporate purposes,” Federal Land said. The property firm initially planned to issue P3 billion in corporate notes but robust institutional demand prompted the company to exercise the P2-billion over allotment option. “The timing of this debt raising is excellent, as it enables Federal Land to capitalize on robust real estate demand fueled by the strong economic wave currently enjoyed by our country,” said Federal Land president Alfred Ty. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 It is the second time Federal Land has tapped the capital markets. In April 2011, the property firm raised P6.6 billion through a similar issuance of fixed-rate corporate notes. Both transactions were facilitated by sole arranger and bookrunner First Metro Investment Corp., the investment banking arm of the Metrobank Group. Given the property boom, Federal Land said it is enjoying strong growth. “Against the backdrop of a strong economy, we have Read More …

Forex reserves lowest in 10 mos

Economy

Jul 052013

MANILA, Philippines – The country’s foreign exchange reserves dropped to a 10-month low in June after the central bank’s gold holdings plummeted in value, the Bangko Sentral ng Pilipinas (BSP) reported yesterday. The BSP said its gross international reserves (GIR) – buffer funds in times of external shocks – fell to $81.640 billion in June. It marked the third straight month of decline since GIR peaked at $85.273 billion in January. The latest tally was also the lowest level for reserves – one of the drivers tagged by credit rating agencies for their upgrades – since August 2012 when figures were recorded at $80.728 billion. Despite the decrease, BSP Governor Amando Tetangco Jr. said in a statement reserves remain sufficient to cover 11.8 months worth of imports of goods and services. They are also equivalent to 8.3 times the country’s short-term foreign debt based on original maturity, and six times based on residual maturity. The BSP expects GIR to hit $87 billion this year. “The slight decline in reserves was due mainly to revaluation adjustments on the BSP’s gold holdings arising from the decrease in the price of gold in the international market…,” Tetangco said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to official figures, gold holdings decreased 11.33 to $7.663 billion in June from a month ago, the lowest level in nearly two years. It was the single biggest drag to reserves last month. “These outflows were partially offset by inflows from foreign exchange operations of Read More …

BSP eases forex rules anew

Economy

Jul 052013

MANILA, Philippines – The country’s foreign exchange rules were liberalized anew on what the Bangko Sentral ng Pilipinas (BSP) said was part of efforts to prepare the Philippines for the financial integration of Southeast Asian economies by 2015. “The objective is to further broaden the scope for regional and international transactions as we become more integrated with financial markets globally,” BSP Governor Amando Tetangco Jr. said in a text message to reporters. BSP Deputy Governor Diwa Guinigundo, in a separate text message, said the new rules were meant to “prepare the Philippines for a more integrated financial markets” of the Association of Southeast Asian Nations (ASEAN) by 2020. Tetangco said the central bank is allowing non-residents to invest in foreign companies listed in the Philippine Stock Exchange. Peso earnings from these investments may now also be converted into dollars. Prior to this, Guinigundo said only Philippine residents could register with custodian banks in order to buy shares of PSE-listed non-resident companies. Registration of portfolio investments – inflows to equities, bonds and peso deposits – through custodian banks are necessary to allow remittance of earnings and convert them into other currencies. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We are setting the stage for the eventuality that trading links (among the ASEAN nations) are established,” he told reporters. “This is in connection also to the planned cross-listing” on regional bourses planned under the ASEAN financial integration, Guinigundo explained. In addition, the BSP is also allowing the pre-payment of central Read More …

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