Stocks close weaker as traders turn to US markets

MANILA, Philippines — The stock market closed the week on a sour note behind recent developments in the US political landscape.

The Philippine Stock Exchange index fell 0.97 percent or 77.26 points to finish at 7,819.22 on Friday.

The broader All Shares index likewise lost 0.85 percent or 40.53 points to settle at 4,728.81.

“Shares slid as traders monitored the latest trade developments and assessed a whistle-blower complaint against President Donald Trump that was released,” said Regina Capital’s Luis Limlingan.

Limlingan said positive statement on China-US trade talk, however, was able to limit losses in the overnight markets.

Local counters were covered in red, with mining and oil being the biggest casualty with a 2.62 percent or 241-point drop. Holding and property counters fell by more than one percent each.

Net foreign selling amounted to P464 million.

Market breadth was negative as decliners pummeled advancers, 133 to 57, while 43 stocks did not change. Value turnover stood at P5.93 billion.

“While we remain a buy on the index, we’ve been flagging the past few days that we would prefer to wait near its recent lows at the 7,620 level. With a lack of catalysts in the local scene in the near-term, movement could likely be dictated by US market movement and foreign flows,” Gabriel Perez of Papa Securities said.

source: philstar.com

Psei down in morning trade as investors digest Luzon quake aftermath

MANILA, Philippines — Philippine shares were in the red at the end of the morning trade Tuesday as investors digest the aftermath of a magnitude 6.1 earthquake that struck Luzon on Monday.

As of market recess Tuesday, the bellwether Philippine Stock Exchange index was down 0.72% or 55.97 points to 7,776.46. The broader All Shares index was also in the negative territory, down 0.41% or 19.75 points to 4,814.93.

“Investors may remain on the sidelines as they gather more information regarding the aftermath of last night's earthquake. If there's any indication, Philippine iShares were slightly down -0.61% to 34.46,” Luis Limlingan of Regina Capital said in a market commentary.


Authorities say that as of mid-morning on Monday, 11 people have been confirmed dead in the aftermath of the earthquake.

The quake — which was tectonic in origin — hit Castillejos, Zambales at around 5:11 p.m. Monday. The Philippine Institute of Volcanology and Seismology earlier recorded a magnitude 5.7 quake before revising it to magnitude 6.1.

A total of 447 aftershocks were recorded as of 10 a.m. Tuesday following the tremor that hit Luzon and swayed buildings in Metro Manila.

‘Cautious’

Stocks were generally lower in Asian trade on Tuesday as investors move cautiously ahead of a deluge of corporate results later in the week.

Tokyo stocks were trading down with profit-taking before 10 days of holidays in Japan weighing on the market.

With many markets opening after an extended Easter break, Hong Kong Shanghai, Taiwan, Singapore were all down, while Australia and Seoul were trading up.

"Some of the world's biggest technology companies are reporting earnings this week as well as a raft of the big European banks," Nick Twidale, chief operating officer at Rakuten Securities Australia, said in a note to clients.

"Investors will be hoping for some better-than-expected results from both groups to keep the topside momentum in global equities, however if the data starts to show a significant slowing across these key industries then expect both stocks and risk trades to start to come under some heavy pressure."

Major earnings releases expected this week include Amazon, Facebook, Microsoft, Exxon Mobil and auto maker Tesla.

Aerospace giant Boeing will report earnings on Wednesday for the first time since a deadly March 10 plane crash plunged the company into crisis-mode. — Ian Nicolas Cigaral with AFP

source: philstar.com

RCBC raising more debt

MANILA – Rizal Commercial Banking Corp (RCBC) is selling dollar-denominated debt to fund its operations and refinance maturing debt.

In a disclosure to the Philippine Stock Exchange, the Yuchengco-led lender said it will offer a benchmark-sized senior unsecured fixed-rate notes through a drawdown of its $1-billion medium-term note program. The bank has set the tentative date of issuance on January 21.

The debt will have a term of five years and one day, and will be listed on the Singapore Stock Exchange.

Proceeds of the debt issuance will finance operations and general corporate purposes, including the refinancing of $250-million in notes that carry a rate of 6.25 percent and due February 9, 2015.

RCBC tapped Standard Chartered Bank as the sole lead arranger and book runner of the offering.

source: interaksyon.com

iRipple sizzles with sale of assets to third party

Shares in software solutions provider iRipple Inc bucked the selloff in the broader market to hit a new one-year high on Tuesday after its board cleared the sale of all its assets and liabilities to a third party.

In a disclosure to the Philippine Stock Exchange, iRipple said the terms and conditions as well as the manner of sale have yet to be finalized.

"The company shall sell substantially all its assets to a third party in preparation for a contemplated change in primary purpose of the company (i.e. holdings corporation)," iRipple said.

Its shares rose 5.19 percent to close at P73.10 each, surpassing the stock's 52-week high of P73 and bucking the benchmark index's nearly 3 percent drop.

"The new company will build the future of retail technology for the Asian market," iRipple chief finance officer Karlo Tablizo said in a text message, but stopped short of identifying possible backdoor listing prospects.

iRipple operates, develops, manages and provides software solution projects and related businesses as well as trades computer hardware and software products. It started commercial operations in January 2002.

The company developed BarterMerchandise Management Solution (MMS), a software solution designed to support the entire merchandising operations of businesses engaged in the buying and selling of goods.

At end-2013, iRipple deployed Barter in more than 1,100 branches nationwide, while the Barter point-of-sales (POS) Solution has been installed in approximately 5,000 units.

iRipple is an authorized reseller of IBM and HP servers and POS equipment, Epson printers, and Symbol-Motorola scanners. Under the re-seller agreement, the listed company is charged at dealer prices while supplying IBM and HP POS equipment, Epson printers and Symbol-Motorola scanners to their Barter clients at a margin.

source: interaksyon.com

Philrealty sells insurance arm

MANILA—Philippine Realty and Holdings Corp (Philrealty) has relinquished control of its insurance subsidiary to a group of private investors.

In a disclosure to the Philippine Stock Exchange, Philrealty said it inked a deal for the sale of its 70 percent stake in Meridian Assurance Corp for P191 million.

The transaction, which covers the sale of 1.75 million shares at P109.14 apiece, is subject to approval by the Insurance Commission.

A regulatory filing show Philrealty owns 86.66 percent of Meridian, a medium-sized non-life insurance company, underwriting fire, marine, and casualty and surety undertakings including miscellaneous lines of insurance.

Aside from its head office in Pasig, Merdian maintains offices in the key cities of Cebu and Davao.

The insurance firm's net underwriting income fell to P17.12 million in the first six months of last year from P17.81 million in the same period in 2012 due to lesser bookings. Philrealty took over Meridian in August 1994 from the Lozano-Ramirez group.

In March, Philrealty inked a deal with its major shareholder Greenhills Properties for the development of a 6,400-square meter lot in Bonifacio Global City. Total project cost will reach P5 billion.

Philrealty had said it would break ground on the project by middle of the year at the earliest to convert the land into a prime mixed-use development that will feature retail, residential, office, serviced apartments, and a hotel.

Philrealty is the company behind the Philippine Stock Exchange Center and the Alexandra mid-rise luxury condominiums in Ortigas Center, Pasig City. It is building the Andrea North condominium development in New Manila, Quezon City.

Two years ago, the Quezon City Regional Trial Court denied the petition of Philrealty to exit from rehabilitation.

Philrealty stopped payments of its liabilities at the height of the Asian financial crisis of the late 1990s.

source: interaksyon.com

Leisure Resorts exercises option to convert loan into 9-pct stake in DFNN

Leisure and Resorts World Corp (LRWC) is set to acquire shares in information technology firm DFNN Inc following the conversion of its debt into equity.

In a disclosure to the Philippine Stock Exchange, LRWC said it sent a conversion notice to DFNN exercising the former's option to convert the balance of an outstanding loan to primary common shares in the latter.

Last month, LRWC executed an P86-million convertible loan agreement with DFNN.

In a phone interview, Freddie Reyes, LRWC head of investor relations, said the gaming company will end up with a nine-percent stake in DFNN after the conversion.

Under the terms of the deal, the three-year loan would carry an interest rate of 8.5 percent per annum and an option for conversion into primary common shares in DFNN at any time starting on the date of initial drawdown and before the credit expires at a conversion price of P4.75.

In a text message, DFNN president Ramon Garcia Jr. said the loan will finance general working capital, acquisition of gaming outlets, legal fees, research and development of additional games and acquisition of gaming equipment.

"We will like to use their machines on our existing outlets to have more games and more products for our clients," Reyes said.

Earlier, DFNN's unit Inter-Active Entertainment Solutions Technologies (IEST) deployed XChangebet betting systems at Resorts World Manila.  XChangebet is a peer-to-peer betting system that allows players to place bets on a variety of sporting and non-sporting events.

IEST is a provider of betting and gaming solutions to Pagcor. IEST's gaming systems have been approved for deployment in over 29 Pagcor-authorized venues.

LRWC runs gaming operations through AB Leisure Exponent Inc, which operates the professional bingo gaming through Bingo Bonanza Corp, and First Cagayan Leisure and Resort Corp, which conducts internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.

LRWC, which earlier acquired Midas Hotel and Casino, is also part of the consortium that is building City of Dreams Manila, which is set to open at the Entertainment City of state-run Philippine Amusement and Gaming Corp next year.

source: interaksyon.com

'Hot money' flows back in Sept amid Philippines' robust economy

MANILA - The Philippines enjoyed significant inflows of "hot money" last month, the Bangko Sentral ng Pilipinas (BSP) said today.

In a report, the BSP said the country saw $2.691 billion in net inflows of foreign portfolio investment in September, up 72 percent from the $1.5 billion in the same month last year.

This led to net inflows of $2.691 billion in the January to September period, ahead of the $2.649 billion in the same nine-month period last year.

Unlike job-creating foreign direct investments (FDI), portfolio funds are invested in financial assets, such as shares in Philippine listed firms and government IOUs. Portfolio investments are also called "hot money" because they flee at the slightest negative news.

The BSP attributed the increase in portfolio funds last month to "the recognition of the country's sound macroeconomic fundamentals and record growth in the first two quarters of this year." To recall, the Philippine economy grew at a record 7.5 percent in the first half of this year, higher than the government's full-year goal of 6-7 percent and the fastest in Asia alongside China.

Hot money in September went to Philippine Stock Exchange (PSE)-listed securities at $1.8 billion; peso government securities, $714 million; and peso time deposits, $52 million. The main beneficiaries for PSE-listed securities consist of holding firms, banks, property firms, information technology companies, and utilities.

The top five investor countries last month were Singapore, the United Kingdom, the US, Luxembourg, and Hong Kong with a combined share of 84.4 percent.

source: interaksyon.com

PH stock market takes cue from Wall Street, returns above 6,300-mark

MANILA - The Philippine benchmark index surged on Wednesday to return above the 6,300 mark on expectations that the US government shutdown will end soon and have a minimal impact on the world's biggest economy.

At the Philippine Stock Exchange, the bellwether index shot up 164.42 points or 2.65 percent to close at 6,362.26. All indices rallied by at least a percent led by the 3.09 percent advance of the holding firm counter.

Advancers outnumbered decliners, 99 to 46, while 40 issues were unchanged. A total of 1.3 billion stocks worth P8.23 billion changed hands.

Actively traded stocks were Universal Robina, Metrobank, Ayala Corp, PLDT and Alliance Global. Top gainers were Chemphil, TKC Steel and Bogo-Medellin, while the biggest losers were Maybank, A Brown and 2GO.

"There's some sort of relief in the Philippines after seeing the reaction of US markets overnight to the spending bill not being passed," said April Lee-Tan, head of research at COL Financial Group Inc.

"Given that in the US, the market did not react negatively, the perception is that this will not be a problem or the shutdown will not take a long time," she added.

Overnight, the Dow Jones industrial Average jumped 62.03 points, or 0.4 percent, to 15,191.70 despite the failure of US lawmakers to reach an agreement on a budget before the October 1 deadline. This triggered a government shutdown that left up to a million US federal employees on unpaid leave.

"Now that the US government has shut down, attention moves to the issue of raising the debt ceiling from $17 trillion," said Jun Calaycay of Accord Capital Equities Corporation.

"The alternative -- should the wrangling and finger-pointing continue through October 17 -- is more fear-inducing. The US will default on its loans and it may yet lose another notch off its credit rating," he said.

Earlier today, Manila-based Asian Development Bank hiked its Philippine economic growth forecast to seven percent from the original six percent estimate, while cutting its growth projection for other emerging Asian countries.

"In a way it's not surprising but any good news helps at this point," Tan said.

source: interaksyon.com

PH stock market ekes out modest gain after US fails to break budget impasse

MANILA - Philippine share prices squeezed out marginal gains on Tuesday as the US government partially shut down after Congress failed to reach a deal to fund federal operations. At the Philippine Stock Exchange, the benchmark index inched up 6.04 points, or 0.1 percent, to close at 6,197.84, tracking the modest advance of most Asian markets. Among the sub-indices, only the service and property counters finished in the green with gains of 0.45 percent and 0.35 percent, respectively. Market breadth was negative as decliners beat advancers, 84 to 57, while 41 issues were unchanged. A total of 1.53 billion stocks worth P7.88 billion changed hands. Actively traded stocks were Meralco, Alliance Global, Metrobank, Universal Robina and Ayala Land. Top gainers were Ginebra, Maybank and PAL, while the biggest losers were Keppel Properties, Keppel Holdings and Philex Petroleum. The US government began a partial shutdown for the first time in 17 years after US lawmakers missed the October 1 deadline to agree on the budget for the new fiscal year. The Republican-controlled House of Representatives was pushing for the delay of President Barack Obama's signature healthcare law by a year, while the Senate Democrats refused to do so. "Markets held on to the morning gains for a while, taking time to digest the latest development. Yet as the afternoon session progressed it became evident investors found the sidelines a more enticing place to ride out the uncertainty as to how long the shutdown will last," said Jun Calaycay of Accord Capital Equities Corp. The PSE index fell nearly three percent on Monday as investors braced for a US government shutdown amid a budget impasse. The main gauge jumped to a high of 0.96 percent in early Tuesday trades but succumbed to profit-taking in the afternoon session.

source: interaksyon.com

Bourse sets sights on Japanese investors

MANILA - The Philippine Stock Exchange (PSE) is eyeing more Japanese investors in the local stock market.

In a statement, the local bourse said it forged a partnership with Takara Printing Co Ltd to drum up interest in the PSE among companies, investors and other market participants in Japan.

"This agreement will strengthen collaboration between companies to allow the sharing of information about listing in the PSE and to enhance investor relations activities and marketing initiatives in both the Philippines and Japan," the PSE said.

Last February, Takara Printing translated the PSE’s listing kit and new listing rules to Japanese. The bourse saw the need for a Japanese-translated listing manual as more Japanese firms set up shop in the Philippines given the country’s sound economic performance.

The Philippine economy grew 7.6 percent in the first half, bucking the slowdown of its regional peers.

Efforts to boost investments from Japan also came after ratings agencies Fitch Ratings and Standard & Poor's rewarded the Philippines with investment grade early this year.

The country's investment score will enable Japanese investors, who invest mostly in investment-grade assets, to buy Philippine equities, Hans B. Sicat, PSE president and chief executive officer, said in a previous interview.

source: interaksyon.com

PSEi climbs back above 6,200-mark on easing investor worry over Syria

MANILA - Philippine share prices on Wednesday stretched their winning streak to a fourth session as investors cheered further signs of easing tension over Syria.

At the Philippine Stock Exchange, the benchmark index was up 125.18 points, or 2.06 percent, to close at 6,214.90. All sectors finished in the green with the property counter leading the charge with a gain of 3.25 percent.

Advancers beat decliners, 94 to 47, while 41 issues were unchanged. A total of 906.84 million stocks worth P9.22 billion changed hands.

Most actively traded stocks were PLDT, Ayala Land, SM Investments, Universal Robina and SM Prime. Top gainers were Vitarich, IMI and iRipple, while the biggest losers were MJCI, 2GO and United Paragon.

"Obama's statement was a big boost to the market. It seems that a diplomatic solution is in the offing which helped calmed nerves of the investors," said Astro del Castillo, managing director at First Grade Finance Inc.

In a televised address on Tuesday night, US President Barack Obama asked Congress to delay a vote on the use of force against Syria as the White House and its allies pursue a diplomatic resolution that would require Syrian President Bashar al-Assad to surrender the chemical weapons.

Overnight, the Dow Jones industrial Average rallied 127.94 points, or 0.9 percent, to 15,191.06.

The prospect of a US-led military strike against Syria has been weighing on the market in the past several weeks.

"This, and improving economic data across the globe, they’re bringing back the confidence of most investors. We're in the last leg of the year so you're seeing more positioning," said del Castillo.

Adding to the euphoria were reassuring economic data that saw China's industrial output and retail sales topping forecasts. Stocks rallied at the start of the week after China reported better-than-expected exports data, adding to signs of the resiliency of the world's second biggest economy.

Fears that the US Federal Reserve may start tapering its stimulus program have been pushed on the sidelines this week.

"The market has digested that news and if the Fed actually reduces its stimulus, the reaction will not be as worse as what we saw in the previous months," said del Castillo.

The Fed will hold its policy meeting on September 17-18 and is expected to provide direction on the future of its economic stimulus. The US central bank's $85-billion bond-buying program – the third tranche of what has come to be called “quantitative easing” (QE3) – has been a key driver of equities rallies in the past several months.

source: interaksyon.com

PSEi slips below 6,000-mark on fears of US strike against Syria

Philippine share prices fell sharply on Wednesday to pull down the benchmark index below the 6,000-mark as renewed concern over an imminent US military strike against Syria weighed on investor sentiment.

At the Philippine Stock Exchange, the local barometer dropped 115.58 points or 1.90 percent to finish at 5,968.33. The PSE index (PSEi) shed as much as 2.4 percent in early trade.

All counters shed at least a percent each led by the holding firm sub-index with a decline of 2.29 percent. There were three losers for every gainer, while 48 issues were unchanged. A total of 976.52 million shares worth P6 billion changed hands.

Most actively traded stocks were SM Investments, PLDT, Ayala Corp, Ayala Land and GT Capital. Top advancers were iRipple, Maybank ATR and Century Properties, while the biggest losers were ATN B, Medco and RFM.

"Renewed concerns in the Middle East and the strengthening dollar scared off the investors," said Astro del Castillo, managing director of First Grade Finance Inc.

"Moving forward, the concerns now will be the inflationary effect towards growth especially if the US will pursue such attack on Syria. It will possibly impede global growth," del Castillo said.

Coming off the Labor Day public holiday, US stocks closed higher following the release of favorable economic reports on manufacturing and construction spending, but trimmed gains after key US Congressional leaders, including House Speaker John Boehner, backed President Barack Obama's call for military action against Syria.

The US had condemned Syria’s chemical attack that killed nearly 1,500 people in Damascus.

Overnight, the Dow Jones industrial average rose 23.65 points or 0.16 percent, to 14,833.96.

source: interaksyon.com

PSEi returns above 6,100-mark

 Philippine share prices extended their gains on Friday to lift the composite index near the 6,100 level.

At the Philippine Stock Exchange, the benchmark index opened slightly higher with a gain of 0.7 percent, with buying momentum accelerating as the session progressed.

At the close of trades, the composite index rose 130.96 points or 2.20 percent to end the week at 6,075.17. All sectors finished in the green with the property, holding firm and industrial counters up at least two percent each.


There were two gainers for every loser, while 37 issues were unchanged. A total of 1.26 billion stocks worth P14.43 million changed hands.

Most actively traded stocks were SM Investments, Ayala Land, PLDT, SM Prime and Ayala Corp. Top advancers were A Brown, Nextstage and Berjaya, while the biggest losers were Jolliville, Calapan Ventures and Cyber Bay.

The rally was fueled by window dressing and follow-through buying after the government reported economic growth that topped expectations, said Joseph Roxas, president at Eagle Equities Inc.

The Philippines' gross domestic product (GDP) expanded by 7.5 percent in the second quarter, defying the slump in the region and making it one of Asia's fastest growing.

"The GDP data came at a time when the market was ready for a rebound," said Roxas.

Prior to yesterday's 3.6 percent gain, the main index had been bleeding in four of the last five sessions, with losses aggregating nearly 13 percent.  Escalating political tensions in Syria and the prospect of the US Federal Reserve winding down its stimulus program had been weighing on global stock markets.

Overnight, the Dow Jones Industrial Average rose 16.44 points, or 0.11 percent, to close at 14,840.95 amid further signs of an improving US economy.

Data showed the world’s largest economy grew at a revised rate of 2.5 percent in the second quarter, higher than the initial estimate of 1.7 percent. Meanwhile, applications for unemployment benefits fell more than expected last week.

Tempering gains in Wall Street were lingering concerns over a possible Western-led military strike against Syria for using chemical weapons in a massive deadly attack last week.

source: interaksyon.com

With stocks on free fall, blue-chip firms say buyback not on the table

MANILA - As the stock market plummets, a number of blue-chip firms today said they are unlikely to buy back their shares, prodding the investing public to instead take positions, as economic fundamentals remain intact.

"As a company, we should let the market dictate the price be it consumer product, housing or the stock exchange. This correction is good so we can avoid a bigger problem," Jose Sio, SM Investments Corp chief financial officer, said during a forum jointly organized by ING and the Economic Journalists Association of the Philippines (EJAP).

"What's wrong with our company? Nothing. What's wrong with our finances? Nothing. So why worry?" Sio said.

Likewise, Ayala Corp is not contemplating on any share buyback, its managing director Eric Francia said, adding that it was not company policy to "influence the share price."

"We will focus on investments versus buy-back, so no immediate plan to buy back our shares," Francia said.

He said the conglomerate implemented a share repurchase program four years ago because there were limited investment opportunities back then.

"The value was also really low at least from where we sit. We had excess capital, so given those three conditions we did some buy-back," Francia said.

In the same forum, Ysmael Baysa, Jollibee Foods Corp (JFC) chief financial officer, said the market's downtrend is still "healthy" and not "catastrophic."

"We are not looking at buying back shares and this is a good time for investors to also get into the market and buy Jollibee shares," Baysa said, noting that JFC was the second best-performing stock in the Philippines as of yesterday.

"I know there are a lot of influence in our shares and I think companies are waiting for opportunities to get in to buy JFC shares of stock so we look forward to that. I think this is a good time to make investments," Baysa said.

Jollibee today shed 3.14 to P154 each, while SM dropped 7.45 percent to P634 per share. AC fell 3.47 percent to P500 apiece.

The benchmark index on Wednesday wiped out its year-to-date gains to close at its weakest level for the year. The PSE index plunged 178.93 points or 3.02 percent to finish at 5,738.06 amid a global selloff triggered by mounting political tensions in Syria.

source: interaksyon.com

Stock market seen to take cue from 2Q economic growth data

MANILA - The spotlight this week will be on the Philippines' second-quarter economic growth data, as emerging markets succumb to massive fund outflows on the prospect of the US Federal Reserve scaling back its monetary stimulus later this year.

The Philippines "must prove itself" to the global investor community and post a gross domestic product (GDP) growth of at least seven percent, said Jose Vistan, head of research at AB Capital Securities Inc.

"We would want to show the world that Philippine fundamentals are solid so we can continue to merit investor attention. We are classified as an emerging market but we should be considered among the best," Vistan said.

The second-quarter GDP data will be released on Thursday. In the first quarter, growth came in at 7.8 percent, well beyond the upper end of the full-year target of 6-7 percent and the fastest in Asia.

Uncertainty over the Fed's tapering however has weighed on global markets, particularly on emerging markets. The Fed's $85-billion bond-buying program – the third tranche that has come to be called the third quantitative easing (QE3) – has been a key driver of equities rallies in the past several months.

The reduction of the Fed's stimulus relieves the downward pressure on US interest rates. Higher interest rates would attract money back to the US and out of emerging markets like the Philippines.

"The bias for fund managers is to lighten up on equities in general more so on emerging markets like the Philippines. There's nothing wrong with the Philippines. It's more of a liquidity concern," Vistan said.

"Restoring confidence on equities has been a difficult challenge as investors remain enamored with concerns over the Fed's decision on the future of QE3. While these concerns are not entirely unfounded, we believe that to a certain degree, there has been an overreaction in the context of ignoring the domestic fundamentals – as well as the positive trend in listed firms' earnings through the first six months of the year," said Jun Calaycay of Accord Capital Equities Corp.

Asian shares mostly increased Monday on fading expectations of a complete phase-out of the Fed's economic stimulus after data on new home sales dropped, raising concerns about the strength of the recovery in the US housing market. Last Friday, the Dow Jones Industrial Average rose 46.62 points, or 0.3 percent, to 15,010.36.

"The positive spin in Asian stocks that opened this week's trades should rub off on the local market which has been closed in the four of the last six days," said Calaycay.

Minutes from the Federal Open Market Committee's (FOMC) July meeting showed US central bank officials were broadly supportive of chairman Ben Bernanke's plan to start tapering its monthly asset purchases this year if the economy continues to improve in line with expectations. This prompted investors to dump equities, dragging the local market by 5.59 percent in the two-day trading week. 

"We expect the local equities market to trade with an upward bias next week. With the market down 6 percent for the last two days, we expect some bargain hunting to set in," said BPI Asset Management.

However, selling pressure on index heavyweight SM Investments Corp may continue until month-end after its weighting in the MSCI Philippine Index has been reduced from around 15 percent to approximately 7 percent, effective August 30.

Likewise, the peaceful nature of the mass action in Luneta should have "little negative effect" on the market when trades resume Tuesday.

"In fact, this should breed confidence even more as a maturing population keeps good governance and transparency alive -- a paramount concern among investors and businessmen," said Calaycay.

source: interaksyon.com

Ayala Land board approves additional fund infusion for affordable housing arm

MANILA - Ayala Land Inc (ALI) has moved to beef up the capital of its affordable housing subsidiary to fund its land banking initiatives.

In a disclosure to the Philippine Stock Exchange, ALI said its board approved the additional P1.1 billion capitalization of Avida Land Corp to complete its funding requirement of P5.4 billion for the year. ALI previously approved the equity infusion of P2.3 billion and P2 billion in 2011 and 2012, respectively.

"Proceeds of this funding exercise will be utilized for various land acquisitions in key growth centers," ALI said.

Avida, together with upper-mid brand Alveo Land, are set to debut in the debt market next month, raising P3 billion each from the sale of retail bonds to support their respective capital expenditure programs.

Avida and Alveo's retail bond offering will follow the first tranche of ALI's P21-billion fundraising. The listed real estate firm raised P15 billion from the sale of 10-year bonds with a coupon rate of 5 percent.

ALI this year earmarked P65.5 billion for its capital expenditures, P46 billion of which will bankroll the completion of ongoing projects. It will also launch 69 new projects with a combined value of P129 billion.

The company is on the penultimate year of its 5-10-15 plan, launched in 2009 with the world economy still reeling from the effects of the global financial crisis. Under the five-year plan ending 2014, the real estate firm aims to have a net income of P10 billion and a return on equity of 15 percent.

The real estate giant said net earnings jumped 30 percent to P5.62 billion in the first half from P4.33 billion in the same period last year. Consolidated revenues rose by more than a third to P36.63 billion at end-June from P27 billion in the same period last year.

source: interaksyon.com

Online brokerage COL's earnings grow slower in 1H in absence of tax gain

MANILA - Despite the strong performance of the Philippine stock market, earnings growth for COL Financial Group Inc slowed in the first six months of this year, dragged by the absence of a tax benefit.

In a disclosure to the Philippine Stock Exchange today, COL said its consolidated net income grew 6.3 percent to P222.2 million in the first half, slower than the 14.7 percent expansion to P209.1 million in the same period last year.

"During the first half of last year, COL only paid P2.8 million in taxes as employees exercised their stock options resulting [in] an increase in tax deductible expenses," the online brokerage said. In contrast, the company paid P51.4 million in taxes in the first semester of this year.   



At end-June, revenues expanded by nearly a quarter to P443.4 million after commissions increased by nearly a third to P338.6 million and interest income jumped more than a tenth to P102.9 million.

COL rode on the strength of the Philippine stock market and the accelerating growth of its client base to post a record consolidated operating profit of P273.70 million in the six-month period, a growth of 29.2 percent year-on-year.

Cost management efforts and economies of scale pulled down expenses by 2.6 percent, the company said.

Prior to the correction that started in mid-May, the PSE index rallied by as much as 27 percent, accompanied by a 48.2 percent increase in value turnover. It hit all-time high levels 31 times to peak at 7,392.20 on May 15.

COL's customer count climbed by nearly half to 68,481 at end-June from 46,536 at end-2012. Client equity handled by COL also increased quarter-on-quarter to P46.4 billion from P34.4 billion.

"Moreover, the increase was largely brought about by net new deposits which amounted to P13.1 billion for the first six months of the year. The said factors a strong testament of the investing public's growing level of trust towards COL," the brokerage said.

The expansion in its client base sustained the improvement in COL’s market share in terms of value turnover by local investors in the PSE to 8.5 percent in the first half from 7.8 percent in 2012.

COL also handled 1.9 million trades in the PSE to remain as the number one stockbroker in terms of volume of transactions. As a result, its market share in terms of volume of transactions increased to 29.4 percent at end-June from 23.4 percent last year.

COL said its annualized return on average equity improved to 35.5 percent to remain the most profitable listed stockbroker in Asia.

"We are glad to see the continuous expansion of our client base and their investments in the Philippine Stock Exchange. At COL, we believe that our profitability is only a consequence of our client's success. Going forward, we plan to expand our products and services to better address the needs of our existing clients and other Filipino investors," COL president Dino Bate said.

source: interaksyon.com

PSEi climbs above 6,500-mark

MANILA - Philippine share prices on Friday posted back-to-back gains with the benchmark index returning above the 6,500-mark.

At the Philippine Stock Exchange, the benchmark index rose 45.73 points or 0.71 percent to 6,518.71, marking the second straight session of gains after an eight-day losing streak.

Leading the market's rally were the financials and mining & oil counters, which jumped 1.39 percent and 1.01 percent, respectively.

Advancers beat decliners, 89 to 74, while 31 issues were unchanged. A total of 769.55 million shares worth P9.32 billion changed hands.

Actively traded stocks were PLDT, Ayala Corp, BDO, URC and Metrobank. Top gainers were Medco, Lorenzo Shipping and Cirtek, while the biggest losers were Mariwasa, Chemphil and Concrete Aggregates.

source: interaksyon.com

Stock broker convicted for duping clients in 1st successful case of Securities Law violation

The Makati Regional Trial Court (RTC) has found a stockbroker guilty for violating the country's securities law, the first conviction under the 12-year old Securities Regulation Code (SRC) for Asia's oldest bourse.

In a decision, Judge Selma Palacio Alaras of RTC Branch 32 found Francisco O. Borromeo, former president of the defunct Asian Capital Equities Inc (ACEI), guilty of seven violations of the SRC. The court ordered him to pay P2.1 million.

The ruling was issued following Borromeo’s withdrawal of his not guilty plea and his voluntary entry of pleas of guilty on all seven charges. “In the course of the presentation of evidence against the accused, Mr. Borromeo reconsidered his not guilty plea and entered a plea of guilty,” said Department of Justice senior state prosecutor Peter Ong.

The landmark cases against Borromeo were filed on January 2005 on account of the unlawful and felonious acts he committed to defraud his clients, including the sale of his client’s shares without consent, the use of fictitious and dummy accounts in buying transactions, and failure to deliver the payment proceeds from the sale of the client’s shares.

Hans B. Sicat, Philippine Stock Exchange president and chief executive, said the decision is part of the bourse's good governance efforts.

“I understand that this is the first criminal conviction under the Securities Regulation Code which is one of the reasons why the PSE has been following this case closely.  The outcome of this case shows that white collar crimes are punished in this country,” Sicat said.

“We thank all the hard work of the Securities and Exchange Commission and the Department of Justice in helping ensure that justice is served to Mr. Borromeo. This should help give more confidence to the growing investing public,” Sicat said.

Borromeo was arraigned on August 14, 2007 where he entered not guilty pleas to all the charges filed against him. In May 2007, the PSE sought the help of the public in tracking down Borromeo, who went in hiding after several arrest warrants were issued against him.

ACEI was closed in 2003 and its assets, including its trading right, were liquidated in 2008 to settle its liabilities to clients.

source: interaksyon.com

PSEi extends losses to fifth straight session

MANILA - The Philippine stock market slumped for a fifth straight session on Friday, ending the week 40.11 points down to 6,654.60.

Except for the industrial and holding firms counters, all other indices were in the red. About 1.74 billion shares worth P12.38 billion changed hands, with losers beating gainers, 102 to 57, and 51 stocks unchanged.

Most active stocks were PLDT, URC, SM Investments, AGI and BDO. Top gainers were Panasonic, Transpacific Broadband, ATI, Cirtek and Atok-Big Wedge. Top losers were Primex, Highlands Prime, Imperial Resources "B", iRipple and Asia Amalgamated.

source: interaksyon.com