Philippines Local

Banks’ real estate exposure rises

Economy

Nov 202013

MANILA, Philippines – Local banks’ exposure to the property sector continued to grow in end-June from the previous quarter, but the Bangko Sentral ng Pilipinas assured these remain manageable.

Universal, commercial and thrift banks’ real estate exposure (REE) summed up to P900.1 billion as of June, up seven percent from end-March.

“The increase in REE was mainly driven by real estate loans which accounted for 84.7 percent of their total exposure to the real estate sector,” the central bank said.

Real estate loans went up seven percent to P762.5 billion in the second quarter from P715.5 bililon in the previous three months.

At the same time, investments in the property market, which make up 15.3 percent of the total REE, also climbed during the period.

Investments in real estate securities jumped eight percent to P137.7 billion in end-June from P127.1 billion in the first quarter.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

The central bank stressed the total REE only made up 21.7 percent of the banking system’s total loan portfolio of P4.2 trillion in June.

“In line with its financial stability objectives, the BSP is keeping an eye on measuring the whole landscape under the new coverage of banks’ exposure to the real estate industry,” the central bank said.

“The BSP is keen on monitoring the credit conditions that support the heightened activity in property development to prevent potential impairment of intermediation.”

The BSP last year introduced stricter regulations in monitoring banks’ exposure to the real estate sector.

The expanded reporting system now covers loans to developers of socialized and low-cost housing, and to individuals, and credit supported by non-risk collaterals or Home Guarantee Corporation guarantee.

Moreover, banks are also required to report investments in debt and equity securities that finance real estate activities.

A tightened watch on banks’ real estate exposure has been put in place in order to ensure no asset bubbles arise given the continued robust growth of the property sector.

Market manages to end week in positive territory

Economy

Oct 042013

Market manages to end week in positive territory

MANILA, Philippines – Local stocks ended the week in positive territory despite the drag caused by top-traded Universal Robina Corp. (URC), as investors take positions ahead of the earnings season. The Philippine Stock Exchange index inched up 0.04 percent or 2.83 points to 6,390.48, while the broader all shares index added 0.31 percent or 12.04 points to 3,854.36. “The PSEi showed it can easily regain the 6,300 handle, even making an attempt at 6,400, “ said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp. Investors took note of recent price drops as buying opportunities heading into the earnings cycle, Calaycay said. However, gains were cut by the correction in share price of URC, which has been the top-traded stock in the past few days. The snacks giant retreated 4.88 percent to P117 apiece after parent firm JG Summit Holdings Inc. sold P12 billion worth of URC shares at P115 each. Despite the flat closing, the local bourse bucked the decline in Wall Street that was hurt by the continuing US government shutdown. The Dow Jones industrial average shed 0.9 percent or 136.66 points to 14,996.48 while the broader Standard & Poor’s 500 index fell 0.9 percent or 15.21 points to 1,678.66. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Most counters were in the green, led by financial firms that gained 0.81 percent or 12.65 points to 1,581.74. Losers were led by industrial companies that eased 0.28 percent or 26.15 points to 9,311.15.

Index eases ahead of long weekend

Economy

Aug 082013

MANILA, Philippines – Local stocks barely moved yesterday as investors stayed on the sidelines ahead of a long weekend. The Philippine Stock Exchange index fell 0.26 percent or 16.56 points to settle at 6,404.23, while the broader all shares index slipped 0.13 percent or 4.93 points to 3,918.63. “The market was quiet again. It seems like most investors are already on a holiday mood given the long weekend as seen in the value turnover,” Astro del Castillo, managing director of First Grade Finance Inc. Financial markets are closed today due to Eid al-Fitr celebration. Asian bourses closed mixed, with Japan’s Nikkei 225 continuing to suffer from volatility as it declined 1.59 percent or 219.38 points to 13,605.56, while Hong Kong’s Hang Seng index inched up 0.31 percent or 67.04 points to 21,655.88. Wall Street also failed to bring good news to the local market. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Dow Jones industrial average lost 0.3 percent or 48.07 points to 15,470.67, while the Standard & Poor’s 500 index shed 0.4 percent or 6.46 points to 1,690.91 on disappointing earnings. In the local bourse, most subindices were in the red, led by holding firms that eased 0.37 percent or 21.21 points to 5,784.31. Mining and oil bucked the trend, barely rising 0.09 percent or 13.32 points to 14,500.33. Turnover value dropped anew to P4.18 billion from P4.94 billion on Wednesday. Advancers barely outplayed decliners, 63 to 61, while 57 stocks did not change.

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.

Phl stocks buck regional downtrend

Economy

Feb 072013

MANILA, Philippines – Local share prices rebounded yesterday, bucking the cautious trading in Asian markets ahead of a European Central Bank’s policy meeting. The Philippine Stock Exchange index rose 0.45 or 28.64 points to close at 6,459.99, recovering from a profit taking spree a day ago as investors picked second liners. The broader all shares index gained 0.61 percent or 24.75 points to 4,062.70. Investors reallocated investments in favor of second liners that might benefit from the continued low interest rate environment and market liquidity, Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com, said in a phone interview. Local fundamentals shielded the country from worries in neighboring markets, Natividad said. In Asia, the trading day was marked by cautiousness as investors waited for the results of the ECB policy meeting. Investors also watched out for indications on the economic growth of the European economic bloc. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Japan’s Nikkei 225 lost 0.93 percent or 106.68 points to 11,357.07 while the Hong Kong’s Hang Seng index declined 0.4 percent or 79.93 points to 23,177. On Wednesday in Wall Street, the Dow Jones industrial average inched up 0.05 percent or 7.22 points to 13,986.52 while the broader Standard & Poor’s 500 index barely rose 0.05 percent or 0.83 points to 1,512.12. The market also awaited the ECB policy meeting.