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Phl market still vulnerable to selling pressure

Economy

Jun 122013

Phl market still vulnerable to selling pressure

MANILA, Philippines – Selling pressures are not yet over in the already volatile local market given continuous decline in regional and global bourses. Fund managers are still realigning funds, worried that central banks are planning to unwind stimulus programs, analysts said. “It seems like the bears are still present. Hopefully, there will be a reversal in Dow Jones otherwise we will see some more downside given the negative sentiments overseas like in Asia Pacific,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview. “Given what happened (on Tuesday), it seems selling is not yet over,” Del Castillo said. The next few days will be characterized by wide range of trades, Justino Calaycay Jr., analyst at Accord Capital Securities, said. “Investors are still very cautious of the risks presented by external factors,” Calaycay added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On Tuesday, the Philippine Stock Exchange index (PSEi) plunged 4.64 percent or 318.95 points to 6,556.65, the largest single day loss since slumping 5.13 percent on Sept. 23, 2011. It is also the largest one-day decline in terms of points, eclipsing the 275.22-point drop on May 30. Foreign funds are flowing out of the Philippines amid stronger peso and potential pullout of the US Federal Reserve’s $85-billion monthly bond buying program that has been jacking up liquidity. Locally, Philippines’ robust economic growth failed to perk up employment, with joblessness rising to 7.5 percent in April from last year’s 6.9 percent. Calaycay Read More …

BSP rediscounting loans down 12% to P16.6B in Jan-May

Economy

Jun 122013

BSP rediscounting loans down 12% to P16.6B in Jan-May

MANILA, Philippines – Banks borrowed fewer funds from the Bangko Sentral ng Pilipinas (BSP) in the first five months, highlighting the healthy state of the local banking industry. Peso loans granted to banks under the central bank’s rediscount facility totaled P16.605 billion from January to May, 11.9 percent lower from the same period last year, data showed. Dollar credit, granted under the exporters dollar and yen rediscount facility, likewise dipped 6.8 percent to $61.5 million from $66 million a year ago. A total of 26 exporters benefited from the credit. No yen credit was extended during the period. The central bank’s rediscount window allows banks to borrow extra funds from the BSP charged with interest pegged against the BSP’s overnight borrowing rate. The current rate is at a record-low of 3.5 percent. The BSP has long highlighted the strength and health of the local banking industry, with sufficient capital and liquidity as well as enough provisioning against potential losses, to lend more. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 According to latest BSP data, bank resources hit P8.229 trillion as of February, an increase of 9.09 percent from the previous year’s P7.544 trillion. The latest figure was also up from end-January’s P8.225 trillion. The rediscount facility, it has said, was meant to provide additional funding for banks to lend out to specific industries such as the export and agriculture sectors. Of the total peso credit lent until May, 86.6 percent went to commercial activities, while 2.1 percent went Read More …

Nenaco sees higher income this year

Economy

Jun 122013

MANILA, Philippines – The parent firm of 2GO Group Inc. is aiming to increase its net income by more than four times this year from a year ago as it reduces its costs and as it benefits from the country’s economic growth and tourism push. 2GO president and chief executive officer, Sulficio Tagud, Jr. told reporters Negros Navigation Co. (Nenaco) is targeting a net income of P858 million this year from just P181 million last year. He said the firm expects to achieve the higher net income this year as it reduces its costs. With the integration of its shipping operations, he said, Nenaco was able to reduce the number of vessels used by removing redundant routes. “That itself constitutes savings in operations,” he said. The consolidation of shipping operations has also allowed the company to reduce manpower and facilities, generating savings. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Apart from the reduction in costs, the country’s positive economic performance is likewise seen to help support higher net income for this year. Tagud said the strong domestic consumption which is helping drive growth in manufacturing activity in the country, is seen to support 2GO Group’s cargo business as more goods have to be transported. He noted that during the last five years, 2GO’s cargo volume has been growing at an average of four percent. For the first four months of this year though, its cargo volume rose 12 percent. “We expect that to be sustained for the rest Read More …

BAS reports lower Q1 ind’l crop production

Economy

Jun 122013

BAS reports lower Q1 ind’l crop production

MANILA, Philippines – Most industrial crops registered lower production volume in the first quarter of the year due to plant diseases, and devastation caused by typhoon Pablo in the tail end of 2012, according to the Bureau of Agricultural Statistics (BAS). In its January to March 2013 Non-Food and Industrial Crops Quarterly bulletin, BAS noted increased production in coconut, tobacco and sugarcane while decreases were seen for abaca, coffee, rubber during the period. Abaca production in the first quarter of the year fell 8.13 percent to 15, 652 metric tons (MT) against 17,037 MT in the same period last year. BAS noted that several municipalities in Leyte and Southern Leyte are still affected by bunchy top disease causing production in Eastern Visayas to fall 11.42 percent. Also affected by the bunchy top disease were farms in Zamboanga Sibugay, particularly those under the Goodyear Agrarian Reform Beneficiaries Multipurpose Cooperative (GARBEMCO), where production fell 31.50 percent during the period. BAS said, however, that there were efforts to eradicate the disease. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Abaca farmers in Aklan were also discouraged by weak trading, causing production in the province to drop 49.31 percent. Production in Davao Region and Caraga fell 30.57 percent and 10.12 percent respectively due to the onslaught of typhoon Pablo, the most destructive typhoon to the agricultural sector in 2012. Favorable weather conditions, on the other hand, resulted to higher abaca production in Catanduanes by 4.16 percent and in Bicol Region by 41.59 percent. Read More …

'Hot money' inflow in Q1 declines 8.5 pct

Economy

Jun 102013

'Hot money' inflow in Q1 declines 8.5 pct

MANILA, Philippines (Xinhua) – Foreign portfolio investments known as “hot money” to the Philippines declined 8.5 percent on year to $1.3 billion in the first quarter of 2013, the central bank reported today. The central bank said lower net equity capital investments reduced inflow of portfolio investments in the country. Gross equity capital placements rose 49.4 percent on year to $1.5 billion in the first quarter, mostly due to investments that came in from Mexico, Japan, Malaysia and the U.S. But these placements were offset by withdrawal of $799 million during the same period. Reinvestment of earnings likewise declined, decreasing 26.3 percent on year to $196 million in the first quarter. Net placements by overseas companies in debt instruments issued by local affiliates totaled $378 million, up 71 percent on year as parent companies abroad continued to lend funds to their local subsidiaries and affiliates to sustain existing operations or expand their businesses in the country. In March alone, FDI posted net outflow of $78 million.

Phl stocks surge on better US jobs data

Economy

Jun 102013

MANILA, Philippines (Xinhua) – The Philippine stock market rallied back to the 6,800 level following the strong gains in US stocks last Friday. The bellwether Philippine Stock Exchange index jumped by 2.59 percent or 173.65 points to 6,875.60. The broader all-share index rallied by 1.96 percent or 81.20 points to 4,229.61. Trading volume reached 1.14 billion shares worth P14.22 billion ($332.63 million) with 123 stocks advancing, 52 declining, and 29 unchanged. All six counters were up. “Buyers resumed to position in equities on Monday, encouraged in part by Wall Street’s overnight ascent,” 2TradeAsia.com said. Dow Jones industrial average index jumped by 207 points last Friday on back of a US labor department report that American employers took in more workers in May. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Monday’s climb, according to analyst Justino Calaycay of Accord Capital Equities Corp., has taken back 40 percent of the values lost during the meltdown. “Yet despite the strong price and index surge, caution remained fairly evident as turnover kept a slack pace,” Calaycay said. Value turnover have been below the five-period and 30-period averages for quite some time and Monday’s action does not show any indication that is to change. Stocks in the 30-company index were mostly up. These include Metropolitan Bank and Trust Co., SM Prime Holdings, Inc., and Alliance Global Group, Inc.

Analyst: Sustained Phl economic freedom to boost investments

Economy

Jun 102013

Analyst: Sustained Phl economic freedom to boost investments

Heritage Foundation senior analyst Anthony Kim (left) speaks to the press. (Prinz Magtulis) MANILA, Philippines – Improved economic freedom in the Philippines should be sustained to boost investments in the next five years and promote prosperity, an analyst for global think tank Heritage Foundation said on Monday. “We are really impressed by well intended good policies. But it’s not easy to make good policy economic reform: it takes time, it takes energy and dedication,” senior analyst Anthony Kim told reporters in a roundtable discussion. “Reforms will attract and generate more opportunities for average people of the Philippines but it will take some time so it’s time to wait and just move forward,” he added. The Washington-based agency publishes yearly a global index measuring economic freedoms in 157 countries, including the Philippines. In its latest edition released last March, the country improved 10 notches to 97th place. Economic freedom, Kim said, involves measuring individual and country liberties, good policies and promotion of free enterprise as a tool to achieve economic growth and prosperity across the population. For the Philippines, Kim noted that the country’s “resilient and dynamic” economic story was hedged on a “committed” government to pursue “real, practical policy solutions” that cover taxation and the business environment, among others. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 While Kim refrained from discussing specific reforms that need to be undertaken or continued, the official noted that “healthy discussions” on lifting the 40-percent foreign ownership cap on certain industries should be Read More …

Wal-Mart plans $15B more in stock buybacks

Economy

Jun 092013

Wal-Mart plans $15B more in stock buybacks

FAYETTEVILLE, Ark. — Wal-Mart’s biggest news at its annual meeting on Friday was that the world’s largest retailer will repurchase up to $15 billion of its shares at a time when the behemoth faces increased scrutiny from investors over its business overseas. The buyback replaces the current $15 billion share repurchase program that Wal-Mart began in 2011. About $712 million is left under that program, according to the company. The program comes as Wal-Mart encounters concerns over how it handled bribery allegations that surfaced last year at its Mexican unit. The company also is being pressured to increase its oversight of factories abroad following a building collapse in April in Bangladesh that killed more than 1,100 garment workers. Wal-Mart wasn’t using any of the factories in the building at the time of the collapse, but it is the second-largest retail buyer of clothing in Bangladesh. During the annual meeting, shareholders in the audience presented four proposals that related to increasing governance of its board in light of the incidents overseas. They included a proposal for an independent chairman that doesn’t serve as an executive at Wal-Mart. None of those resolutions passed, according to a preliminary shareholder tally. “If the world’s largest retailer refused to improve the state of workers’ rights and labor standards, things will not change,” said Kalpona Akter, a labor activist based in Bangladesh, who introduced the proposal about having a special shareholders’ meeting. Executives referred to the problems Wal-Mart has been having abroad during the meeting. Business Read More …

PPA dividends to gov’t hit P1B

Economy

Jun 092013

MANILA, Philippines – Dividends remitted by the Philippine Ports Authority (PPA) to the national coffers jumped 23.5 percent last year, making it one of the largest contributors among government-owned and controlled corporations (GOCCs). PPA general manager Juan Sta. Ana said the agency has consistently been among the profitable government agencies sharing its net earnings to the National Government since the law was enacted in 1998. Sta. Ana said PPA’s total dividend payment reached P1.009 billion last year from P817 million in 2011. “The port agency will always be a strong partner of the government in moving the country forward specifically in the area of providing support to the National Government’s fiscal consolidation efforts,” he stressed. He added that PPA landed seventh in the top 10 list of the biggest contributors for 2012 out of the 38 GOCCs that paid their respective dividends. Other major contributors include Philippine Amusement and Gaming Corp., Land Bank of the Philippines, Development Bank of the Philippines, Bases Conversion and Development Authority, Power Sector Assets and Liabilities Management Corp., Manila International Airport Authority, Philippine Reclamation Authority, Philippine Deposit Insurance Corp. and the Philippine National Oil Co. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Republic Act 7656 requires GOCCs to remit at least 50 percent of its annual gross earnings to the National Government. For 2013, the government aims to keep its budget deficit at below P238 billion or two percent of the projected gross domestic product (GDP). The deficit limit for this year is Read More …

SMI touts Tampakan project achievement

Economy

Jun 092013

MANILA, Philippines – Real stories of real people from Southern Mindanao filled the Manila air during the Sustainability Report launch of Sagittarius Mines Inc. (SMI) last June 6. The Manila launch is the culminating event from a series of two other roll-outs that happened in Davao City last 29 May and Koronadal City last May 31. SMI is the holder of a financial and technical assistance agreement that manages the Tampakan Copper-Gold project located in Southern Mindanao. Aside from the Sustainability Report magazine given to all attendees, the event showcased the stories of SMI’s different stakeholders who benefited from the companies programs – on education, livelihood, healthcare, resettlement consultation, and responsible mining advocacy campaign. The event touched on ‘a-day- in-the-life’ of a 73-year-old Blaan elder, Masalio Sumangay, who has witnessed all the changes that happened in her tribal community. Lola Sumangay expressed during the ‘Dialogue with the Stakeholders’, “I feel better now. I see progress everywhere and life for my people is now more comfortable.” Lola Sumangay added, “I am happy that all my children and grandchildren are now able to school. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 My daughter Dalena, one of the tribal chieftains, goes to many meetings to promote responsible mining and tell people about the benefits of mining.” Lola Sumangay further added, “SMI’s (sustainable) programs should benefit all tribal communities and barangays within the project area so that the IPs will not be jealous of the benefits that one tribe is enjoying.” The Read More …

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