MANILA, Philippines – The peso slightly improved against the dollar midday Tuesday, settling at 44.636 from the previous day’s 44.69. Total volume transacted at the Philippine Dealing System amounted to $324.6 million in the morning trade, lower than the $449 million posted in the same period the previous day. The peso opened Tuesday at 44.64.
MANILA, Philippines – Remittances from overseas Filipino workers (OFWs) went up 6.8 percent in January from a year ago, driven largely by sustained demand for skilled and professional manpower overseas, the Bangko Sentral ng Pilipinas (BSP) reported yesterday. Personal remittances – cash and non-cash – amounted to $2.002 billion in January, 6.8 percent higher than last year’s $1.874 billion. “Remittance flows from overseas Filipinos remained resilient, underpinned by the sustained demand for Filipino manpower overseas, particularly skilled workers,” the BSP said. Cash remittances from both land and sea-based workers went up 5.9 percent to $1.799 billion in January from $1.699 billion a year ago. However, the latest cash inflow was 17 percent lower than the $2.173 billion recorded in December as the level of remittances “typically drops” after the holidays, the central bank said. The central bank, citing data from the Philippine Overseas Employment Administration, said there were 75,348 approved job orders in January of which 32.1 percent or 24,187 were processed. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The processed job orders were for service, production, and professional, technical, and related jobs in Saudi Arabia, the United Arab Emirates, Taiwan, Kuwait, and Qatar. At the same time, the expansion of bank and non-bank remittance service providers abroad supported the growth in remittances. The BSP said remittances from land-based workers increased 4.9 percent to $1.3 billion in January, while those from sea-based workers jumped 9.1 percent to $450 million. “Cash remittances during the month came mostly from the Read More …
MANILA, Philippines – Local banks with US-citizen clients who are non-compliant with US tax rules may face sanctions as they expose themselves to legal and financial risks, the Bangko Sentral ng Pilipinas said. “The BSP will study what sanctions, if any, we will impose if a local bank decides it wishes to handle US persons but exposes itself to financial and legal risks by not complying with FATCA (Foreign Account Tax Compliance Act),” central bank Governor Amando M. Tetangco Jr. said. The FATCA, set to be implemented starting July 1, mandates various registration and reporting measures to allow the Internal Revenue Service (IRS) to collect information on US citizens living outside their homeland. The regulation states that foreign financial institutions (FFI) should submit reports on their US-citizen clients’ account balances, gross proceeds, and dividends. “The BIR (Bureau of Internal Revenue) has recommended and the DOF has agreed that the Philippines would adopt Model1 Intergovernmental Agreement,” Tetangco said. “Under the Model 1 IGA, FFIs will provide information to the FATCA partner – in the case of the Philippines, possibly the BIR – who will in turn be the one to provide information to the IRS,” he continued. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The BSP chief explained that as early as last year, the central bank advised local banks to assess whether they should comply with the FATCA or not. “In a memorandum to banks in July 2013, we advised the banks that they are to individually evaluate Read More …
The country’s 12th president celebrates his 86th birthday today. Fidel Valdez Ramos served as chief executive of this nation from 1992 to 1998 in what can be described as a transformative point in the country’s economic landscape. More than two decades after he assumed the highest government post in the country, he continues to tirelessly serve in any way he can. In my column last month commemorating the EDSA People Power movement, I had mentioned his role in initiating reforms (including computerization) at the Bureau of Customs. He sent me a note of thanks the following day, but qualified that the real credit for the Customs reform during his stint as President belonged to Customs Commissioner Willy Parayno, Associate Commissioner Alex Arevalo, National Security Adviser Joe Almonte and Department of Finance Secretary Bobby de Ocampo. With his note were issues of Visionary, a quarterly publication of Ramos Peace and Development Foundation Inc., of which he is chairman, and a copy of his latest book, Moving Ahead, a compilation of selected articles from his Sunday columns in the Manila Bulletin. Thank you, FVR, for tirelessly reminding me that no matter our age, we can always be of positive value to our country. Happy birthday! On using roros to solve the truck ban Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Today, we give way to our readers’ letters. The topics range from solutions to the traffic problem, to the state of our crowded ports, to mining, and finally rice trading. Read More …
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 …
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 …
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 …
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 …
Hermie Limbo, general manager and country director for Ecolab and Nalco Philippines (left) and Mike Murphy, Ecolab general manager and market head, Southeast Asia and Korea, during the recent inauguration of Ecolab’s new head office. MANILA, Philippines – Ecolab Philippines, Inc. recently moved to its new head office located at the 18th floor, W Fifth Avenue Building, 5th Avenue, Bonifacio Global City in Taguig City. Called “One Manila,” the sleek and contemporary 1,367-sqm office space serves as the new headquarters of Ecolab Philippines, Inc. and Nalco Philippines, Inc., which is now part of Ecolab. In December 2011, Ecolab announced the merger with Nalco that resulted in the birth of a formidable US$13 billion global entity with some 45,000 employees in 171 countries with businesses in water, hygiene, sanitation and energy. Both companies combined under the name Ecolab. The inauguration of the new corporate office was led by Mike Murphy, Ecolab general manager and market head, Southeast Asia and Korea, and Hermie Limbo, general manager and country director for Ecolab and Nalco Philippines. They were joined by members of the company’s management committee, managers and employees from different departments, including their manufacturing plant personnel from Binan and Calamba, Laguna. “Our move to our new corporate address as ‘One Manila’ is expected to strengthen the synergy of the two companies,” says Limbo. “It will definitely result in more efficient operations and increased productivity with the ultimate goal of satisfying our customers. We take pride in what we do as One Ecolab: protecting Read More …
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 …