Philippine Stock Exchange – Page 2

Metrobank to exercise call option on P5.5-B Tier 2 notes

Economy

Jul 172013

Metrobank to exercise call option on P5.5-B Tier 2 notes

MANILA, Philippines – Metropolitan Bank & Trust Co. (Metrobank), the main banking arm of the Ty family, will exercise its call option on its P5.5-billion Lower Tier 2 notes. In a disclosure to the Philippine Stock Exchange, Metrobank head of investor relations Juan Placido Mapa III said the bank’s board approved Tuesday the conduct of the call. He said Metrobank would undertake the call option on the notes with a rate of 7.75 percent on Oct. 4. The call option feature is in accordance with the terms and conditions of the notes. Mapa, however, said they would seek the approval of the Bangko Sentral ng Pilipinas (BSP) before carrying out the call option. “The bank is currently in the process of securing BSP approval,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Metrobank official said the board has also approved the issuance of up to $500 million Basel 3-compliant Tier 2 capital securities to proactively manage its capital base for growth and for refinancing of maturing capital notes. The Basel 3 guidelines issued by the BSP in Jan. 15, 2003 requires that Tier-2 notes have a provision for the instrument to either be written off or converted to common equity upon occurrence of certain trigger events. The BSP circular further stipulates that banks must make the necessary amendments to their articles of incorporation to accommodate such a conversion. Metrobank said it has received BSP approval to amend its articles of incorporation on the increase in authorized Read More …

GSIS mulls return to int’l financial markets next year

Economy

Jul 152013

GSIS mulls return to int’l financial markets next year

MANILA, Philippines – State pension fund Government Service Insurance System (GSIS) is reconsidering tapping the international financial markets next year with a placement of between $300-$400 million amid improving economic prospects for the United States and Japan. In a briefing yesterday, GSIS president Robert Vergara said the plan is hinged on several domestic factors such as the stock market’s performance by the end of the year. “We haven’t definitely decided whether we’re going international. It all depends on domestic valuations, how the market performs at the end of year but I think it’s time for us to reconsider whether deploying assets externally will help dampen the volatility,” Vergara said. Volatility in emerging markets has been rising as foreign investors pull out of the world’s most expensive equities given the US Federal Reserve’s moves to scale back its massive bond-buying program. “If the market continues to correct, then why should we go outside and take foreign currency risk? At the moment investing abroad is not something in the cards, although we’ll look at it as the market progresses. It could be placements in stocks, bonds or private equity,” Vergara said. Vergara said the fund is looking to invest around $300 million to $400 million in the event it decides to go back to the overseas markets. This is roughly the same amount it shelled out for its first infrastructure project. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Like all things we do, we never go out there and take Read More …

SEC suspends Ever Gotesco’s permit to sell securities

Economy

Jul 072013

SEC suspends Ever Gotesco’s permit to sell securities

MANILA, Philippines – Shopping mall developer and operator Ever Gotesco Resources & Holdings Inc. has been barred from selling shares due to its failure to conduct a shareholders’ meeting. In a memorandum, the Philippine Stock Exchange said the Securities and Exchange Commission ordered the suspension of Ever Gotesco’s registration of and permit to sell shares. “The records on file with SEC show that Ever Gotesco violated for the fourth time the Securities Regulation Code…for its failure to hold its annual stockholders’ meeting in 2012,” PSE said. As the SEC issued its resolution on May 16, Ever Gotesco’s permit to sell shares is suspended for 60 days from the date of receipt of the SEC order. The PSE started a trading suspension on Ever Gotesco’s shares on Friday. Ever Gotesco, which is controlled by the Go family, was incorporated in 1994 focusing on the construction of shopping malls and leasing them out to commercial tenants. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Its malls are primarily leased out to Ever Department Store and Supermarket, cinemas, banks, amusement centers, food shops, specialty stores, boutiques, drug stores, service shops, gym and sporting facilities. The listed company operates two malls: Ever Gotesco Commonwealth Center and Ever Gotesco Manila Plaza. Subsidiary Gotesco Tyan Ming owns and operates Ever Gotesco Ortigas Complex. In 2009, Ever Gotesco and subsidiary Gotesco Tyan Ming Development Inc. entered into a compromise agreement with creditor banks of its foreclosed properties pending court cases. In the first quarter, Ever Gotesco Read More …

Bonds to benefit from calm – Barclays

Economy

Jul 032013

MANILA, Philippines – The bond market is likely to benefit from the calm in the financial markets with investors expected to prefer “safer” investment instruments once they return to Asia, an investment bank said. For the first time in more than two weeks, British bank Barclays said investors have shifted to buying mode in Asian markets, as fears of US’s trimming down stimulus measures later this year recede. “Going forward, we expect more of the same: bonds performing in line with the risk indicators as we think investors will likely to get back into safer markets first,” the bank said in a research note. On Tuesday, Barclays noted bonds from India, Malaysia and Thailand benefitted from huge inflows, followed by those in South Korea, Singapore and Indonesia. There was no mention of the Philippines in the report. The performance of regional bonds, the bank said, could be partly attributed to the participation of local investors in the market, which cushions outflows coming from the flight of foreign placements. Even then, Barclays said there has been some “resilience” in the bond market even during the financial turbulence driven by fears cheap money from the US – most of which flowed to emerging markets – would soon be gone. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Even though external risks loom large, the resilience of institutional portfolio flows is encouraging and challenges the assumption that large foreign holdings of local government debt are the key to underperformance in a sell-off,” Read More …

Phl stocks extend gains as US equities soar

Economy

Jun 272013

Phl stocks extend gains as US equities soar

MANILA, Philippines (Xinhua) – The three-digit gain of the US equities lifted the Philippine stock market for the second time today. The bellwether Philippine Stock Exchange index jumped by 3.42 percent, or 209.06 points, to 6,328. The broader all-share index rose by 3.14 percent, or 17.96 points, to 3,877.61. Trading volume reached 3.56 billion shares worth P12.11 billion ($278.99 million) with 139 stocks advancing, 37 declining, and 32 unchanged. All six counters were up. “On a slow news day from the domestic front, investors kept eyes turning on unfolding events overseas. With share prices in Europe posting decent gains and US stocks extending a triple- digit advance, local counters joined its regional peers in the green,” analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment. European markets were supported by the easing of concerns over China’s credit crunch and a better-than-anticipated consumer confidence numbers. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Likewise, American investors appear to have found incentive to enter the equities despite reports that the economy is growing a less-than-expected pace. First quarter gross domestic product was revised to 1.8 percent, significantly lower than the 2.4 percent preliminary estimate as the gains in household purchases, accounting for 70 percent of growth, was lowered to 2.6 percent from the 3.4 percent estimate last month. “Sentiments have turned yet again, almost seemingly at a single flip. The main source of fears, namely the US Fed and the Chinese credit crunch, appears to Read More …

Balisacan unperturbed by weak peso, stocks

Economy

Jun 252013

Balisacan unperturbed by weak peso, stocks

MANILA, Philippines – The country’s top economic manager said he remains unperturbed by the weakening of the peso and the local bourse, saying these barometers are going into a ‘dip’ cycle. Socioeconomic Planning Secretary Arsenio M. Balisacan pointed out that the peso at one time weakened to beyond 53 to the US dollar, and that the present level of the Philippine Stock Exchange index (PSEi) is still well above the 1,800-mark a few years back. “I would like to think that it is just a dip,” Balisacan told reporters on the sidelines of a World Bank presentation on climate change yesterday. The PSEi fell below 5,800 yesterday, entering bear market territory, according to market analysts. Nonetheless, Balisacan said the real economy remains strong based on sound fundamentals and strong domestic market. “The weak peso is good for our competitiveness. It is not only good for exports, but for our local industries which are competing with imports,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 A stronger dollar makes imported products more expensive, allowing locally-produced goods to compete in the market. Increased local production would, in turn, create more jobs. “The weakening of the peso will not only benefit the exporters or the families of overseas Filipinos sending dollar or dollar-denominated remittance inflows, but broadly our local industries that are producers or assemblers of exports using imported parts,” said Balisacan, who is also director general of the National Economic and Development Authority (NEDA). Meanwhile, robust investments in the Read More …

Despite hot money outflow, BSP says no to capital controls yet

Economy

Jun 242013

Despite hot money outflow, BSP says no to capital controls yet

MANILA, Philippines – Capital controls are still off the table even if only to prevent money from leaving the Philippines, the Bangko Sentral ng Pilipinas (BSP) said. BSP Governor Amando Tetangco Jr. said the central bank is “not looking at capital controls” to temper the slump in the financial markets driven by worries the US will scale back its stimulus measures soon. Earlier this year, the idea of capital controls has also been floated, that time to manage the reverse: large inflows flocking to emerging markets for better returns. But after the US Federal Reserve said it may taper off its quantitative easing measures “later this year,” investors have begun leaving developing nations on optimism interest rates will soon rise in the world’s largest economy. The actions of investors caused the Philippine Stock Exchange index to lose 3.41 percent on Monday and close at 5,971.05, the lowest since January. The peso, meanwhile, slumped to its weakest level since January last year to end trading at 43.84 versus the greenback. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On Saturday, BSP Deputy Governor Diwa Guinigundo said the country will “maximize the returns” of its foreign reserves to have enough buffer to cushion outflows. BSP Assistant Governor Ma. Cyd Tuano-Amador, for her part, said the weakening of the peso has limited effect on inflation. “There is a considerable range where the peso can move before any breach of the inflation target can happen,” Amador said last Friday.

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.

Phl stocks extend losses today on concerns over US Fed

Economy

Jun 042013

Phl stocks extend losses today on concerns over US Fed

MANILA, Philippines (Xinhua) – The Philippine stock market extended its losses today as most investors are still wary of the developments overseas. The bellwether Philippine Stock Exchange index dived by 1.33 percent or 89.91 points to 6,673.47. The broader all-share index lost 1.17 percent or 48.76 points to 4,128.11. Trading volume reached 1.77 billion shares worth P13.25 billion ($315.25 million) with 123 stocks declining, 53 advancing, and 41 unchanged. All six counters were down. Brokerage 2TradeAsia.com said the successive sell-off has pushed away bargain hunters from local equities, many of whom are waiting for the selling spree to taper off. “Prospective institutional bargain shoppers might bid for time, until the potential unwinding of earlier overbought positions from some overseas managed funds ceases,” 2TradeAsia.com said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The composite index tumbled following the announcement by US Federal Reserve Chairman Ben Bernanke that they might cut stimulus if they start seeing indications of sustained growth. The brokerage said the latest descent has opened room for some investors to consider this as good technical entry to ramp-up on large-caps that quickly recovers once pessimism abates. The bargain hunters are slowly manifesting their presence in Tuesday’s trade, where investors saw the index climb back after losing more than 100 points during the session. 2TradeAsia.com advises investors to check for potential momentum build-up especially after the local index’s successive declines. Stocks in the 30-company index were mostly down. These issues include SM Investments Corp., SM Prime Holdings, Inc., 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 …

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