Growth report fails to lift stock market

 Economy
May 302013
 
Growth report fails to lift stock market

MANILA, Philippines – Massive selldown by fund managers, surprisingly following the announcement of robust first quarter Philippine economic growth, weighed down heavily on the main index, which recorded its largest single-day loss in history. The benchmark Philippine Stock Exchange index (PSEi) suffered a bloodbath yesterday, plunging 3.81 percent or 275.22 points to 6,953.35. It is the largest single-day loss in the bellwether index, eclipsing the 263.84-point drop on Feb. 28, 2007. “Concerns about US Federal Reserve scaling back its quantitative easing overshadowed the surprising gross domestic product (GDP) data,” Freya Natividad, analyst at online brokerage firm 2TradeAsia.com, said in a phone interview. Philippine GDP surged a higher-than-expected 7.8 percent in the first quarter, driven by the construction and manufacturing industries. “A string of negative leads sent global stocks on yet another tailspin only a day after it posted a strong comeback off a four-session slump,” said Justino Calaycay Jr., analyst at Accord Capital Securities. He said there were also questions over European and China’s growth, adding to the gloomy sentiments. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the US, Wall St. succumbed to worries that the Fed will pull out its stimulus program given an economic recovery. The Dow Jones industrial average declined 0.69 percent or 106.59 points to 15,302.80 while the broader Standard & Poor’s 500 index slipped 0.7 percent or 11.70 points to 1,648.36. Asian stocks such as Japan’s Nikkei 225 that sank 5.15 percent or 737.43 points to 13,589.03 were also sold down by Read More …

Peso up from 11-mo slump

 Economy
May 302013
 
Peso up from 11-mo slump

MANILA, Philippines – The peso recovered yesterday from its 11-month slump against the dollar as investors cheered the better-than-expected first quarter economic growth rate. The local unit closed 42.32 against the dollar, 12 centavos stronger than the previous day’s 42.44, which was the weakest since June 2012. Dollars traded reached $1.112 billion, up from Wednesday’s $1.057 billion. “Basically, the strength was due to local story of a strong GDP (gross domestic product) growth that was well above market expectations,” a trader at a local bank said in a phone interview. Driven by consumption and investments, the economy grew by a surprising 7.8 percent for the first three months, the fastest in three years, and beating market consensus of just about six percent. The result was also well-above the official six to seven-percent growth goal for the year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Emilio Neri Jr., an economist at the Bank of the Philippine Islands, said investors would likely continue purchasing the peso, thereby boosting its strength versus the US dollar, “in the near-term.” “The Philippine peso may see some appreciation pressure in the near-term after its sharp slide in the past week as dealers were likely surprised by the strong GDP print,” Neri said in a research note. The peso, Asia’s second best performer last year, has lost more than three percent since the end of last year. This was the second straight day it traded at 42-level versus the greenback this year. While good news Read More …

Phl jumps 5 places in competitiveness

 Economy
May 302013
 
Phl jumps 5 places in competitiveness

MANILA, Philippines – The Philippines saw its competitiveness ranking move up by five places to reach the 38th spot in this year’s IMD (International Institute for Management Development) World Competitiveness Report from the 43rd place last year due to improvements in terms of its economic performance, government efficiency and business efficiency. Citing the IMD World Competitiveness Report which covered 60 countries, the National Competitiveness Council (NCC) said the Philippines’ improved ranking was due to gains seen in three out of four major factors being monitored by the report. In particular, the Philippines made improvements in terms of economic performance (from 42nd to 31st), government efficiency (from 32nd to 31st), and business efficiency (from 26th to 19th). The report noted that the improvement in economic performance could be attributed to big gains in real Gross Domestic Product growth, expansion in export of goods and international trade. In terms of government efficiency, gains in fiscal policy and institutional framework were noted. While the Philippines showed progress in its rankings in three factors, its place in the infrastructure factor dropped to the 57th spot this year from last year’s 55th spot. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Despite the drop in the ranking for the infrastructure sector, the NCC said the government’s move to implement infrastructure projects is expected to result in an improvement in the ranking moving forward. “Increased infrastructure rollouts and improved efficiency in the PPP (public private partnership) rollouts are expected to improve performance in infrastructure,” it Read More …

Phl stocks tumble on US Fed concerns; Q1 GDP fails to cheer market

 Economy
May 302013
 
Phl stocks tumble on US Fed concerns; Q1 GDP fails to cheer market

MANILA, Philippines (Xinhua) – The Philippine stock market suffered a huge loss today despite a better-than-expected growth of the Philippine economy in the first quarter. The bellwether Philippine Stock Exchange index dived by 3.81 percent or 275.22 points to 6,953.33. The broader all-share index slipped by 3.02 percent or 133.99 points to 4,298.18. Trading volume reached 1.9 billion shares worth P16.86 billion ($397.26 million) with 160 stocks declining, 15 advancing, and 38 were unchanged. All six counters were down. Analyst Justino Calaycay of Accord Capital Equities Corp. said a string of negative news overseas pulled down the Philippine stock market on Thursday, overshadowing the positive gross domestic output (GDP) of the country. “Concerns over the U.S. Federal Reserve’s stimulus stance and questions over European and China’s growth added dark clouds over the horizon,” Calaycay said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Overnight, US stocks retreated off a record high on fears that improving economic numbers may prompt the Federal Reserve to step on the stimulus brakes. European shares were likewise down with investors reading off a similar note, in addition to International Monetary Fund’s outlook of a slower growth for China, the world’s second largest economy. The international, multilateral lending institution project China to grow at less than 8 percent this year. These developments overshadowed the news of  a higher than expected growth rate. The National Statistical Coordination Board reported Thursday that an upbeat business and consumer sentiment, increased public spending and a robust manufacturing and construction Read More …

Tourist arrivals up by 10%

 Economy
May 302013
 
Tourist arrivals up by 10%

MANILA, Philippines – Foreign visitor arrivals soared in the first four months of the year with a 10.12-percent increase from the same period in 2012, the Department of Tourism (DOT) noted on Thursday. The state agency said a total of 1,649,458 foreigners visited the country from January-April, with January yielding the largest volume of 436,079 visitors and February posting the highest growth of 15.52 percent. The figure represents 30 percent of the target arrivals for 2013, DOT added. Bringing the most number of visitors was Korea with 406,595 or a market share of 24.65 percent and growth of 23.08 percent. This was followed by the United States with 246,011 visitors or a 14.91-percent share, Japan (148,950 or 9.03), China (132,307 or 8.02 percent), Australia (72,015 or 4.37 percent) and Taiwan (53,867 or 4.24 percent). Rounding out the top sources of foreign visitors are Singapore with 55,096 (15.90 percent), Canada with 50,352 (4.25 percent), Hong Kong with 45,734 (12.87 percent), United Kingdom with 43,055 (3.10 percent), Malaysia with 35,069 (8.36 percent) and Germany with 28,799 (9.16% percent). Other source markets with double-digit gains include Russia (30.33 percent), India (23.13 percent) and France (20.10 percent), DOT said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “This growth is an affirmation of our various marketing and destination development activities, strengthened by partnerships with the various stakeholders. While the upsurge may primarily be attributed to the summer season, it is also a clear indication that the nation has galvanized its reputation as an Read More …

Gov't keeps targets despite surprising first-quarter growth

 Economy
May 302013
 
Gov't keeps targets despite surprising first-quarter growth

MANILA, Philippines – Growth targets will be retained while inflation forecasts will be revisited, officials said, after the first-quarter economic expansion both surprising  policymakers and becoming the fastest in Asia for the period. Socioeconomic Planning Secretary Arsenio Balisacan said the Aquino administration is “sticking” to its six- to seven-percent growth target for the year “at the moment,” even after the uptick for the first three months registered way beyond at 7.8 percent. “We periodically review assumptions. We will consider first quarter performance when we meet,” Balisacan told reporters on Thursday after the data’s announcement. The Development Budget Coordinating Committee (DBCC), the body setting macro-economic targets, has yet to set a meeting to review its assumptions, but Budget Secretary Florencio Abad acknowledged growth would be sustained in the coming months. “We intend to sustain or surpass the very standards we set over the succeeding quarters,” said Abad, who is also DBCC chairman, in a statement. He did not elaborate. The 7.8-percent growth last quarter surpassed all growth rates in Asia, notably in China (7.7 percent), Indonesia (six percent), Thailand (5.3 percent), Vietnam (4.9 percent), Malaysia (4.1 percent), Japan (3.5 percent), South Korea (1.5 percent). Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Strong consumption driven by election-spending, investments and government spending were tagged as the drivers for the growth, which was the fastest in three years. A stable inflation, averaging three percent as of March, was also noted. However, the Bangko Sentral ng Pilipinas (BSP) said there is need to Read More …

NEDA chief: GDP growth still about the poor

 Economy
May 302013
 
NEDA chief: GDP growth still about the poor

A man cooks his food along a sidewalk in Tondo district, Manila. EDD GUMBAN/FILE PHOTO MANILA, Philippines – The country may have an impressive gross domestic product (GDP) in the first quarter, but an economic official believes that this growth is still about its impact to the poor. The National Statistical Coordination Board (NSCB) revealed on Thursday that the Philippines’ GDP grew by 7.8 percent in the first three months, exceeding market and government expectations and beating Southeast Asian nations and even China. But Socioeconomic Planning Sec. Arsenio Balisacan admitted that the issue is all about making the GDP growth inclusive. “We know, however, that inclusive growth is not about averages, but about the lower part of the income distribution, namely, the poor,” said Balisacan, who is also the director-general of the National Economic and Development Authority (NEDA). “On the other hand, we also know that growth is still the necessary condition for inclusive growth,” he added. Malacanang said its goal is to ensure that the recent economic gains of the country are being felt by all. “That is always the target; that nobody will be left behind,” said Deputy Presidential Spokesperson Abigail Valte. “With the high numbers that we have, even with the boost in investor confidence, the rallies that you’ve been seeing in the stock market, ang importante po sa atin ay ‘yung maramdaman ng lahat [‘yung economic growth],” she added. But Valte noted that the effects of these economic gains do not happen overnight. The NSCB said Read More …

Globe asks court for Bayantel's debt restructuring

 Economy
May 292013
 
Globe asks court for Bayantel's debt restructuring

MANILA, Philippines — Local carriers Globe Telecom and Bayan Telecommunications have filed a motion with a court seeking to restructure Bayantel’s debt of $423.3 million. Following Globe’s tender offer for the Bayantel debt in 2012, Globe currently holds approximately 96.5 percent of the total financial indebtedness of Bayantel. The joint motion aims to achieve a rehabilitation of Bayantel. Globe disclosed Bayantel’s operations from traditional fixed line services, growing competition, have not generated sufficient revenue to continue making the debt payments under its present rehabilitation plan. If approved by the court, Globe expects the restructuring would lessen the debt to about $131.3 million. Globe believes such a restructuring would allow them to further strengthen collaborative efforts with Bayantel regarding local exchange networks, corporate data and broadband businesses.

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