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GSIS to increase exposure in stock market – Vergara

Economy

Jul 052013

GSIS to increase exposure in stock market – Vergara

MANILA, Philippines – The Government Service Insurance System (GSIS) continues to take an active approach to equity investing by leveraging opportunities in a volatile market, according to its top official. GSIS president and general manager Robert Vergara said the country’s largest pension fund remains a long-term investor in the stock market and sees market volatility as an opportunity to load up on stocks with strong fundamentals. “We will increase our exposure whenever there are opportunities to add to our investments at attractive valuation levels as we have done in recent weeks,” Vergara said. Vergara said the fund also continues to be on the lookout for alternative investments that will boost returns amid a low interest rate environment. Just recently, GSIS participated in the preferred share offering of listed gaming firm Leisure & Resorts World Corp. (LRWC), taking up P800 million out of the P1.65 billion deal. The non-voting and non-participating preferred shares have a coupon rate of 8.5 percent per annum and are paid semi-annually. For each 20 preferred shares, the holders are entitled to one warrant convertible to common shares starting on the fifth year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Each warrant, if exercised at a price of P15 or the average weighted trading price for the three months prior (whichever is lower) will be converted to one common share. Vergara said the fund’s investment in LRWC reflects the agency’s confidence in the Philippine gaming industry, which is forecast to generate total revenues of $2.5 Read More …

Gold price drop drags reserves to 10-month low

Economy

Jul 052013

Gold price drop drags reserves to 10-month low

MANILA, Philippines – The country’s foreign exchange reserves dropped to its lowest level in 10 months last June after the central bank’s gold holdings plummeted in value, the Bangko Sentral ng Pilipinas (BSP) reported on Friday. Gross international reserves (GIR) — buffer funds in times of external shocks— fell to $81.64 billion last month, preliminary data showed. 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 they hit $80.728 billion. Despite the decrease, BSP Governor Amando Tetangco, Jr. said in a statement that 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 percent versus the previous month to $7.663 billion, 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 the BSP, Read More …

Samsung estimates disappointing Q2 profit

Economy

Jul 042013

Samsung estimates disappointing Q2 profit

SEOUL, South Korea — Even after setting a record high profit, Samsung Electronics disappointed investors who increasingly doubt its mainstay smartphone business can maintain rapid growth. Samsung Electronics Co. on Friday estimated its April-June operating profit at a record high of 9.5 trillion won ($8.3 billion). That is a 47 percent jump from a year earlier and 8 percent growth from the previous quarter. But it fell short of forecasts by analysts who held higher expectation for the world’s largest smartphone maker. Analysts surveyed by FactSet, a financial data provider, forecast operating income of 10.2 trillion won on average. Samsung shares dropped nearly 4 percent in Seoul. Samsung said sales grew 20 percent to 57 trillion won ($50 billion). Sales of the latest iteration of Samsung’s flagship smartphone, the Galaxy S4, hit 10 million units in May, less than a month since its debut. Sales of the S4 hit the 10 million mark about 20 days faster than the previous model. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Analysts say high marketing costs probably weighed on Samsung’s mobile business despite the robust sales in the first month. The South Korean company will announce net income and details of quarterly financial results later this month.

Filipinos in HK help make Asia a creative capital

Economy

Jul 042013

Filipinos in HK help make Asia a creative capital

File photo from 2012 Asia on the Edge conference. MANILA, Philippines – Filipino creative entrepreneurs, thinkers and leaders and their counterparts from Indonesia, Hong Kong, Japan, Malaysia, Singapore and Myanmar attempt to make Asia among the world’s foremost creative capitals as they let ideas simmer at the Hong Kong Fringe Club for the 2013 Asia on the Edge (AOTE). Much anticipation for conference, said to be especially for the “mentally agile, frighteningly creative and daringly enterprising,” is also brewing in social media. [View the story “Asia on the Edge 2013 in social media” on Storify] Poached Mag writer Valerie reports that delegates are already looking forward to a “robust” creative dialogue with its unmatched lineup of guests and speakers. Yuchengco Museum owner and serial entrepreneur Marco Santos as well as Intellectual Property Ventures Group chief executive Enrique Gonzalez will be involved in the creative mapping of the Philippines. Other leading creative minds to be heard from at AOTE are filmmaker Antony Szeto, Singaporean ambassador to Russia Michael Tay, Filipino politician Imee Marcos and Press Room Group HK director Alan Lo.

Consumer prices inch up in June

Economy

Jul 042013

File photo of consumers in the Philippines. MANILA, Philippines – Consumer prices slightly accelerated in June from the previous month but the Bangko Sentral ng Pilipinas (BSP) said inflation continues to remain manageable. Inflation picked up to 2.8 percent in June from 2.6 percent in May, the National Statistics Office (NSO) reported on Friday. “This was due to higher annual increments in the indices for alcoholic beverages and tobacco, health, transport, recreation and culture, and education,” the state agency said in its website. Excluding food and oil prices, core inflation settled at 2.9 percent, slightly losing pace from three percent in May. The BSP welcomed the latest inflation print, which fell within its 2 to 2.9 percent forecast for the month. The result “further supports our assessment of manageable inflation and the current appropriateness of our current policy stance,” BSP Governor Amando Tetangco Jr. said in a text message to reporters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As of the first half, inflation settled at 2.9 percent, slightly below the BSP’s three- to five-percent inflation target. The central bank, Tetangco said, will be watchful of external developments, especially on how other monetary authorities abroad will calibrate their policies. “We will monitor the impact of these factors on global and domestic investor sentiment and growth dynamics to see if there is any need to adjust our own policy settings,” Tetangco pointed out. The BSP has kept policy rates at record-lows of 3.5 percent and 5.5 percent since October, Read More …

Oil above $101 on US supply drop, Egypt

Economy

Jul 042013

Trader Peter Iocolano works in the oil options pit at the New York Mercantile Exchange. (AP Photo/Richard Drew) NEW YORK — The price of oil rose to its highest level in 14 months on concerns about possible disruptions to Middle East supplies and signs of an increase in U.S. demand for fuel. U.S. benchmark oil gained $1.64 to $101.24, its highest close since May 3, 2012. Brent crude, which is used to price oil used by many U.S. refineries to make gasoline, rose $1.76 to finish at $105.76. Two events propelled the price of oil above $100 a barrel for the first time since the middle of September: unrest in Egypt, and a big drop in U.S. oil supplies. Traders were worried that political upheaval in Egypt could slow the flow of oil from the Middle East to world markets. Embattled Egyptian President Mohammed Morsi vowed not to give in to protesters’ demands for his resignation. But the head of Egypt’s military announced late Wednesday night local time that Morsi will be replaced and new elections will be held. Egypt is not an oil producer but it control of one of the world’s busiest shipping lanes gives it a crucial role in maintaining global energy supplies. The Middle East accounts for about a quarter of the world’s crude oil output, or 23 million barrels per day. About 2 million barrels of that, or 2.2 percent of world demand, are transported daily through the Suez Canal, which links the Mediterranean with Read More …

Phl making big push to lift agri, other sectors

Economy

Jul 042013

Phl making big push to lift agri, other sectors

MANILA, Philippines – The Aquino Administration is making a big push to expand its manufacturing, agriculture, infrastructure and tourism sectors as it works toward achieving sustainable, inclusive growth. Budget and Management Secretary Florencio Abad said the government would focus its efforts on attracting investments into the country as well as creating jobs to keep the local economy moving forward. “There’s going to be a greater push for expansion in industries because of the challenge of inclusive growth, that’s why more investments are needed to promote poverty reduction and job generation,” Abad said. In particular, he said the Aquino Administration is looking to get more investments into the country’s infrastructure development program as it rolls out more projects to boost infrastructure spending to five percent of GDP by 2016. Abad said increased infrastructure spending would help spur the growth of key industries like agriculture and tourism while at the same time getting more people into work. Between now and 2016, the government must adopt measures to create a total of 14.6 million jobs. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “We’re going to be rationalizing the infra program because unlike in the past, each agency was worrying about its own infra program. But since we’re very clear about economic targets, this time around we have to operate differently, meaning there has to be somebody who will oversee the government’s infra plan,” he said. In the five months ending May this year, government infrastructure spending reached P106.4 billion, up 35.6 Read More …

Business leaders write Noy: Overhaul customs, develop ports

Economy

Jul 032013

Business leaders write Noy: Overhaul customs, develop ports

In this June 1 file photo, Customs Commissioner Ruffy Biazon (left) inpsect three container vans of sugar, misdeclared as engine and aircon parts seized by authorities. The 1,521 bags are estimated at around P5 million. MANILA, Philippines – International and local business leaders drew eight recommendations to President Benigno Aquino III to facilitate inclusive growth within his term, including an overhaul of the Bureau of Customs as well as the country’s gateways. “It is imperative to overhaul the Bureau of Customs and to create an oversight body with private sector representations,” heads of 14 business groups including Makati Business Club president Ramon del Rosario Jr., Philippine Chamber of Commerce and Industry acting president Antonio Lopa and the American Chamber of Commerce president Rhicke Jennings said in the letter received by the Office of the President last June 21. The letter said that the estimated P100 billion lost from smuggling can instead be used for social programs and infrastructure. “Smuggling continues to derail your efforts on revenue collection and job generation,” it says. The groups also advised Aquino to pass a measure that would ensure that the country’s customs procedures comply with the Revised Kyoto Convention recognized by the international community. The immediate implementation of transportation infrastructure projects was also among the groups’ recommendations, highlighting the need to develop the Ninoy Aquino International Airport among others. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 De-clogging of the Port of Manila at Manila Bay and the connection project of major highways NLEX Read More …

BSP asks banks to prepare for US FATCA implementation

Economy

Jul 032013

BSP asks banks to prepare for US FATCA implementation

MANILA, Philippines – Financial institutions were asked to prepare for the effectivity of a US order next year targeted at running after American tax evaders offshore and seen having an impact on their operations. Local and foreign firms transacting with “US persons” will be hit next year by the Foreign Account Tax Compliance Act (FATCA), which orders the charging of taxes against any non-compliant financial institution engaged with US citizens. The Bangko Sentral ng Pilipinas (BSP), in a memorandum, said its supervised institutions – including commercial and investment banks – must “evaluate” if they are covered by FATCA and if applicable, must “establish a policy” to comply. “They are advised to study the potential effects of FATCA to their businesses and determine the necessary steps to take to avoid the unfavorable consequences of non-compliance with FATCA requirements,” said Memorandum 2013-030 dated July 1. FATCA is part of the US’s Hiring Incentives to Restore Employment Act enacted into law in 2010 as part of stimulus measures to boost US economic activity and employment. According to the US Internal Revenue Service (IRS), firms may register between this month until Oct. 25 through its online portal to become “FATCA-compliant.” In doing so, they are agreeing to provide “certain information” to the IRS concerning US accounts they hold. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In addition, US citizens who have foreign assets in excess of $50,000 must report their holdings to the IRS. If they chose not to register though, FATCA Read More …

Approved PEZA investments up 92% to P83.7 B in H1

Economy

Jul 032013

Approved PEZA investments up 92% to P83.7 B in H1

MANILA, Philippines – Investment pledges approved by the Philippine Economic Zone Authority (PEZA) grew by over 90 percent in the first semester from a year ago as more companies expressed plans to set-up manufacturing facilities in the country. PEZA director general Lilia De Lima told reporters in a chance interview yesterday investments approved by the agency for the January to June period amounted to P83.692 billion, posting a 91.9 percent growth from the P43.611 billion in the same period last year. “The biggest chunk (of approved investments) was for electronics,” she said. She said most of the investments were from Japanese companies. The government is optimistic the country could attract more foreign investments as the Philippines is now being considered as a place to do business by European companies. “What is good is we are now on the radar screen of European investors,” De Lima said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Given the recent visit of high-level European government officials to the Philippines, European Union Ambassador Guy Ledoux told reporters firms from that region are most likely to check out investment opportunities here. Apart from European firms, American companies are likewise looking at the country as an investment destination. De Lima said that during a recent trip to the US, firms engaged in manufacturing and information technology have expressed interest to set-up facilities here. She said the Philippines is being considered as a place to make investments given its skilled and young workforce. With more foreign Read More …

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