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Bonds to benefit from calm – Barclays

Economy

Jul 032013

MANILA, Philippines – The bond market is likely to benefit from the calm in the financial markets with investors expected to prefer “safer” investment instruments once they return to Asia, an investment bank said. For the first time in more than two weeks, British bank Barclays said investors have shifted to buying mode in Asian markets, as fears of US’s trimming down stimulus measures later this year recede. “Going forward, we expect more of the same: bonds performing in line with the risk indicators as we think investors will likely to get back into safer markets first,” the bank said in a research note. On Tuesday, Barclays noted bonds from India, Malaysia and Thailand benefitted from huge inflows, followed by those in South Korea, Singapore and Indonesia. There was no mention of the Philippines in the report. The performance of regional bonds, the bank said, could be partly attributed to the participation of local investors in the market, which cushions outflows coming from the flight of foreign placements. Even then, Barclays said there has been some “resilience” in the bond market even during the financial turbulence driven by fears cheap money from the US – most of which flowed to emerging markets – would soon be gone. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Even though external risks loom large, the resilience of institutional portfolio flows is encouraging and challenges the assumption that large foreign holdings of local government debt are the key to underperformance in a sell-off,” Read More …

SEC seeks reversal of CA ruling on John Hay condotel sales

Economy

Jul 032013

SEC seeks reversal of CA ruling on John Hay condotel sales

MANILA, Philippines – The Securities and Exchange Commission (SEC) has sought a reversal of the Court of Appeals’ (CA) decision that allowed Camp John Hay’s private developer to sell condotel units. In a statement, the SEC said it filed on June 28 a motion for reconsideration regarding the CA’s ruling that favored Camp John Hay Development Corp. (CJHDevCo) and Camp John Hay Suites Corp. (CJHS). SEC chairperson Teresita J. Herbosa said they “hope that CA finds merit in the arguments presented by the SEC in its motion for reconsideration.” “Otherwise, the CA decision, as it stands presently, hamstrings the SEC’s efforts at weeding out investment schemes not registered with the SEC to the detriment of the investing public,” she added. Last month, the appellate court allowed the private developer of Camp John Hay in Baguio City to proceed with the sale of securities for the operation of The Manor Hotel. The CA’s Sixth Division granted the petition of CJHDevCo, which permanently enjoined the SEC from implementing its cease-and-desist order against the sale. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The case is just one of the latest in the SEC’s continued battle to safeguard the public from falling victim to unlawful business schemes,” the corporate regulator said. Until CA resolves the motion for reconsideration, the cease order against CJHDevCo and CJHS remain effective, SEC said. State-run Bases Conversion and Development Authority earlier claimed that the sale of the units of The Manor and The Suites with leaseback or Read More …

Puregold forms food retailing unit

Economy

Jul 032013

MANILA, Philippines – Grocery chain Puregold Price Club Inc. has created a new subsidiary to jumpstart its venture into food-retailing. In a regulatory filing, Puregold said it has formed Estenso Equities Inc. that will “house investments of Puregold to other food-retail related activities.” “Estenso Equities is just a shelf-ready subsidiary of Puregold for possible future joint ventures with third parties in food-related retail business,” Jimmy F. P. Perez, investor relationas officer of Puregold, said in a text message. Late in May, Puregold’s parent firm Cosco Capital Inc. raised P16.8 billion in fresh capital from the sale of existing and new shares to investors. Of the proceeds, 50 percent will be used to expand the selling area of Puregold-anchored commercial real estate properties and increase the oil and petroleum storage of Pure Petroleum. Around 20 percent is allotted for the acquisition of non-food retail businesses like hardware and pharmacies. Another 20 percent was allocated for debt payments and the remaining 10 percent to improve its distribution network. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the first quarter, Puregold more than doubled its earnings to P962 million from P469 million a year ago on the back of new stores and stronger sales. The growth was supported by P16.09 billion in consolidated net sales, up almost half from P10.74 billion last year. Puregold also opened nine new stores out of the initial target of 25 new branches for the entire 2013. Of the new stores, five were hypermarkets and four Read More …

Tugboat operator lines up P593-M IPO

Economy

Jul 022013

MANILA, Philippines – A local tugboat operator plans to join the roster of companies in the Philippine Stock Exchange (PSE) early next month, making it the fourth to list in the bourse this year. In a memorandum circular, the PSE said Harbor Star Shipping Services Inc.’s P593-million initial public offering (IPO) will be completed in August. The final price setting is scheduled on July 10, followed by the start of a domestic roadshow on July 11. The offer period will start on July 22 and end on July 26 while Aug. 2 will mark the “tentative listing date and commencement of trading on the PSE” under the ticker symbol TUGS, the local bourse said. Harbor Star plans to list 605.238 million common shares, of which 181.6 million will be sold to the public at a maximum price of P3.27 each. Net proceeds could reach P540.826 million, Harbor Star said, adding that P227.41 million will be used for the “acquisition of tugboats for domestic and international expansion and refleeting.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Harbor Star also allotted P120 million to buy barges for lighterage operations while another P120 million will fund the settlement of a bridge loan for the purchase of a vessel. The remaining P73.4 million will be used to pay existing debts, it added. It has tapped Abacus Capital and Investments Corp. as its lead issue manager and underwriter. Harbor Star started commercial operations with just one tugboat in 1998. After 10 years, it Read More …

Petro pavilion offers franchising opportunities

Economy

Jun 302013

Petro pavilion offers franchising opportunities

MANILA, Philippines – Various sectors of the widely diversified and highly profitable fuel industry are moving with the tide of successful franchised businesses by opening up to new investors via franchising or dealerships. These lucrative investment opportunities will be showcased at the fuel industry’s own Petro and Energy Pavilion occupying an entire hall of the SMX Convention Center as part of the Franchise Asia Philippines 2013 Expo, which will be held on July 19 to 21. The pavilion will serve as a one-stop shop for all investment activities in any of the numerous fuel and energy-related businesses to be exhibited during the expo’s three-day run. Among such businesses are petro filling stations, equipment and related products, renewable energy sources, fuel conservation devices, auto care services, and many other technologies and innovative systems that constitute the ever-growing energy supply and value chain, including retail spaces for franchised food and non-food consumer outlets catering to motorists. This sector of the economy enjoys a stable and consistently rising market demand since it is centered on energy that powers industries, vehicles and households all the way to the kitchen, practically driving infrastructure development nationwide for the transport of goods and people by land, sea and air. The petro pavilion is part of one-stop shop international franchise expo that will feature international and homegrown successful franchise brands in the food, retail, and service sectors providing investment opportunities at all levels, from micro to large. Special areas are also dedicated for budding business at the expo’s Read More …

ADB allots $500 M for Phl’s LGU fiscal reform program

Economy

Jun 302013

ADB allots $500 M for Phl’s LGU fiscal reform program

MANILA, Philippines – The Asian Development Bank (ADB) is setting aside $500 million for the Philippines’ Local Government Finance and Fiscal Decentralization Reform Program. In addition, the ADB is willing to provide a $1-million technical assistance (TA) grant for the program. The policy-based $500-million loan will be used to get the reform program off the ground, which will be issued in two tentative tranches of $250 million each starting this year and the second in 2015. A co-financing partner Agence Francaise de Developpement (AFD) will allocate an additional $150 million. The TA is a preparatory project that will provide the required technical and logistical resources to assist the government-led review of the 1991 Local Government Code. The main bulk of the TA will go to international and domestic consultants accounting for half of the entire grant. The remaining amount will be used for travel expenses, hard and software, seminars and workshops, and the like. The local government reform program aims to improve service delivery by increasing the efficiency and transparency of local governance and financial management systems. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Based on the ADB report, reducing local disparities in access to services is critical to achieving the government’s goal of inclusive growth and poverty reduction. The poverty rate was 26.5 percent in 2009 and increasing to 27.9 percent in the first semester of 2012 above prevailing rates in neighboring countries in Southeast Asia. Geographically, the poor remain concentrated in the southern Philippines and in Read More …

EastWest to invest 20% in bidder for railway fare collection system

Economy

Jun 292013

EastWest to invest 20% in bidder for railway fare collection system

MANILA, Philippines – East West Banking Corp. is investing in E-trans Solutions Joint Venture Inc. a company bidding for the government’s automated fare collection system project. E-trans is a joint venture among TERA Investment Inc., Sagesoft Solutions Inc., Pilipinas Micro-Matrix Technology Inc., Pulsar Avancer Technologie Inc. and EastWest. Recently, E-trans pre-qualified in the bidding for the fare system project of the Department of Transportation and Communications and the Light Rail Transit Authority. East West’s board has approved a capital infusion of up to 20 percent in E-trans and subscribe to such number of shares for an initial payment of P1.5 million. The board said the subscription is not more than 10 percent of the total assets of EastWest. EastWest is the financial arm of the Gotianum family’s Filinvest Group. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Aside from investing in a technology firm, EastWest is also aggressively expanding its branch network all over the country. In 2006, EastWest Bank bought P750 million worth of shares in Green Bank, which has 46 branches in June 2012, the bank purchased 100 percent of Finman Rural Bank Inc. in Pasig City for P120 million. EastWest has been likewise on the acquisition mode to boost its consumer lending business. In 2009, it acquired the consumer finance units of AIG bundled into AIG Philam Savings Bank. In 2003, it also bought Ecology Savings Bank Inc. By 2014, EastWest is planning to have 350 branches and become the fifth largest bank in terms of Read More …

Q2 growth outlook ‘very good’ – BSP

Economy

Jun 292013

MANILA, Philippines – Economic growth could have remained “very good” in the second quarter, a senior central bank official said, as he outlined reasons why domestic demand supported expansion amid lackluster trade performance. “For us, the outlook never changed: we continue to see a good economic turnout in economic performance,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said Friday. “That is, very good economic performance,” he told reporters. The Philippine economy expanded by 7.8 percent in the first three months of the year, beating market expectations to become Asia’s fastest growing economy for that period. The Aquino administration has set a six- to seven-percent growth target this year. The local economy grew 6.8 percent last year. From April to June, Guinigundo said domestic demand could have been boosted by the continued expansion of business in the manufacturing sector in time for the election season. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Based on latest Purchasing Managers Index figures, the manufacturing gauge went up to 58.6 in June from 56 the previous month, indicating faster expansion. Any figure above 50 means growth. Manufacturing is part of the industry sector, which grew 10.3 percent in the first quarter, the fastest among other industrial origins. “In the last so many quarters, we have noticed a big rebound in capital expenditures, capital investment, and domestic capital investments. These could ensure growth is sustainable in the long run,” Guinigundo explained. In addition, business and consumer sentiments have improved, he said, providing Read More …

Poverty, income inequality remain high in Phl

Economy

Jun 292013

Poverty, income inequality remain high in Phl

MANILA, Philippines – Despite robust economic growth so far this year and a series of international credit rating upgrades, inclusive growth and poverty alleviation still elude the Philippines. The country’s gross domestic product (GDP) grew an impressive 7.8 percent in the first three months of 2013, after an equally strong growth rate of 6.8 percent in whole of 2012. But Socioeconomic Planning Secretary Arsenio M. Balisacan said compared to other Asian countries, the Philippines still has the lowest total investment share to GDP from 2010-2012 relative to India, Indonesia, Malaysia, Thailand and Vietnam. “Poverty incidence remains high, and so does income inequality. Moreover, more than 60 percent of the entire country’s economic growth is concentrated in Metro Manila, Calabarzon, and Central Luzon,” Balisacan said at a recent forum by the Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD). Substantial poverty reduction achieved in developing countries in the past two decades was due to rapid economic growth and structural transformation in these countries, particularly in Asia. Globally, this growth contributed nearly two-thirds of the observed poverty reduction in the developing world. “A one-percent increase in GDP per capita reduces poverty by 1.7 percent,” Balisacan said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Likewise, the country’s economic growth barely exceeded the population growth rate, which has continued to expand relatively rapidly at about two percent a year. Thus shifting the economy to a higher growth path – and keeping it there for the long term – Read More …

Maybank mulls IPO option

Economy

Jun 292013

MANILA, Philippines – The board of Maybank Philippines Inc. (MPI) is studying options for the planned initial public offering (IPO) of the bank in the near term, a top official said. Maybank Philippines president Herminio Famatigan Jr. said, “the board level discussions are ongoing now in terms of when we need to do that. When you do an IPO you obviously want to do it and get the interest of the market. You line up all options available to you.” “They are now exploring all possibilities on how to conduct the IPO which under the law should be done by all foreign bank subsidiaries before end-2015,” he said. “We still have up to the end of 2015 to do that. There are so many possibilities. We can do an IPO or we can end up buying or merging with a bank that is listed. It’s another option to comply with the existing laws but not in the very near future,” he said. He said they have not selected a financial advisor yet for the IPO but they may consider their subsidiary Maybank ATR Kim Eng Capital Partners Inc. to take the lead in the fundraising exercise. However, Famatigan said they have to study carefully which is the most appropriate IPO scheme to undertake. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “There’s no rush for us to do it. 2015 is still 2 1/2 years away,” he said. Early this year, Malayan Banking Berhad (Maybank) said they would list Read More …

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