Key rates kept steady

 Economy
Jun 132013
 
Key rates kept steady

MANILA, Philippines – Policy rates were kept steady on Thursday by the Bangko Sentral ng Pilipinas (BSP) which said the economy remains in good footing despite the recent slump in the financial markets that highlighted funds leaving emerging markets. Key rates— which serve as banks’ benchmark on charging their loans— were maintained at 3.5 percent for overnight borrowing and 5.5 percent for overnight lending. Rates have been at that level since October last year.  At the same time, the BSP’s policymaking Monetary Board also retained the rate on special deposit accounts (SDA)— fixed-term deposits of banks and trust departments— at two percent, halting a series of cuts this year that started in January, March and April.  “The Monetary Board’s decision is based on its assessment that the inflation environment remains benign,” BSP Governor Amando Tetangco, Jr. told reporters in a briefing. “At the same time, domestic economic growth remains firm, driven by strong internal demand. Ample liquidity and strong bank lending should also continue to support economic activity,” he added. Inflation may settle at 3.1 percent this year, slower than the 3.2 percent projected by the central bank last April. For 2014, consumer prices may accelerate 3.6 percent, up from 3.4 percent originally. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The forecasts fell at the low-end of the BSP’s 3- to 5-percent target range for both years.  BSP Deputy Governor Diwa Guinigundo, in the same briefing, said lower oil prices in the world market are expected this year Read More …

Market bloodbath as PSEi plunges 6.75%

 Economy
Jun 132013
 
Market bloodbath as PSEi plunges 6.75%

MANILA, Philippines – The Philippine Stock Exchange (PSE) ended in the red on Thursday as massive selling pulled the bellwether PSE index to 6,114.08, 442.57 points or 6.75 percent lower than its previous close. The broader all shares index similarly dipped by 5.63 percent or 228.84 points to 3,834.870 while all six subindices plunged. The property subindex suffered the most with a 7.3-percent or 190.88-point drop to 2,422.740. By midday, the main index plummeted by 4.75 percent or 311.52 points before hitting 6,245.13. Elsewhere in the region, major bourses suffered a similar bloodbath, with Nikkei, Kospi, Straits Times and Shanghai Composite plunging over uncertainty with the United States’ monetary policy.

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
 
Nenaco sees higher income this year

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 …

More Americans quit jobs in sign of confidence

 Economy
Jun 122013
 
More Americans quit jobs in sign of confidence

WASHINGTON (AP) — More Americans are quitting their jobs, suggesting many are growing more confident in the job market. The Labor Department said Tuesday that the number of people who quit their jobs in April jumped 7.2 percent to 2.25 million. That’s just below February’s level, which was the highest in 4 ½ years. Overall hiring also picked up in April, though not as dramatically. Employers filled 4.4 million jobs in April, a five- percent increase from March. Hiring fell in March and April’s level was below February’s. The report offered a reminder that the job market is far from healthy. The number of available jobs slipped fell three percent to a seasonally adjusted 3.75 million. Openings had reached a five-year high in February and remain nearly seven percent higher than a year ago. Still, the growth in hiring and quits provides more evidence of a dynamic job market that is making slow but steady strides. It follows Friday’s May employment report, which showed the economy added a net 175,000 net jobs last month. That’s roughly in line with the average monthly gain over the past two years. Most workers quit their jobs when they have a new position or feel confident that they can find one quickly. And when they do, it opens up more opportunities for other Americans, including the unemployed. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Janet Yellen, vice chair of the Federal Reserve, has said the Fed is monitoring data on quits and Read More …

Petronas announces project to export LNG to Asia

 Economy
Jun 122013
 
Petronas announces project to export LNG to Asia

KUALA LUMPUR, Malaysia (AP) – Malaysian national oil company Petronas has announced a multibillion dollar plan to extract, liquefy and export natural gas in western Canada to energy-hungry markets in Asia, officials said.  Arif Mahmood, Petronas’ vice president of corporate planning, said between $9 billion and $11 billion would be invested to construct two LNG liquefaction plants. Target date for the project’s completion is late 2018. The site will be designed with the potential to add a third plant and LNG storage tank, the company said on its website. Another $5 billion will be invested in a pipeline 750 kilometers (466 miles) long, to be built and operated by TransCanada Corp., to supply gas to the plants, Arif confirmed in an e-mail to The Associated Press.  The Pacific NorthWest LNG project, located on Lelu Island in the Port Edward district in British Columbia, will liquefy and export natural gas produced by Progress Energy Canada, which Petronas also owns.  Separately, Progress Energy Canada said it plans to spend “several billion dollars on activities related to natural gas extraction.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This will bring the total project cost to around $20 billion, the company said by email through a representative. Petronas recently sold a 10-percent stake in the gas facility to Japan Petroleum Exploration Co. to secure its first long-term buyer, and is hunting for more buyers.

Bentley showroom opens in Manila

 Economy
Jun 122013
 
Bentley showroom opens in Manila

MANILA, Philippines – British premium car maker Bentley recently opened its Manila showroom, marking its entry in the Philippine market. The first Bentley showroom in the country is under car distributor PGA Automobile Inc. The Bentley showroom is located at the PGA facility along EDSA (Epifanio de los Santos Avenue) in Greenhills. Bentley Manila is the British marque’s foray into its 52nd country. It is also its 183rd dealer worldwide. The car maker’s arrival in the country is seen timely as the Philippines is currently regarded as part of the world’s booming markets given its strong economic growth after posting more than six percent growth in 2012. In the first quarter, the economy expanded 7.8 percent, the fastest rate posted in the last three years. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The country’s positive economic performance is considered to be favorable for Bentley to maintain its growth momentum. Bentley considers their entrance into the Philippine market in the same way their customers should perceive the cars they build, as an investment. “PGA Automobile formally embarks on a new adventure – a partnership with Bentley Motors and we are proud to bring you one of Britain’s oldest motor companies, well known as a manufacturer of exclusive automobiles founded 94 years ago and the world’s most admired luxury brand,” Bentley Manila managing director Amado Del Rosario said. For his part, British Ambassador Stephen Lillie said he is delighted that another exceptional British brand has arrived on Philippine shores. “Bentley’s Read More …

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