Economy – Page 488

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 …

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 …

Older Entries Newer Entries