Power Interruption GUIDE in the CEPALCO Area for Oct. 4 to 11, 2010 [None on Saturday & Sunday]

29 September 2010

Power Interruption GUIDE in the CEPALCO Area

Due to NGCP’s Continuing Mindanao-wide Power Supply Curtailments

Period Covered : Oct. 4 to 11, 2010 [None on Saturday & Sunday]

Relative to the continuing power supply curtailments imposed by the National Grid Corporation of the Philippines [NGCP] all over Mindanao, CEPALCO has again scheduled rotating brownouts within its service area lasting for about 2 hours and 30 minutes per area. According to NGCP, the power supply shortage is due to the maintenance outage of NPC’s Pulangi 4 [Unit 1] and Agus 6 [Unit 1] hydro electric plants; non- operation of Therma Marine’s two power barges and reduced capabilities of some other NPC hydro plants.

Please find below the load shedding schedule / guide [2 hours & 30 minutes DAILY rotating brownouts] within the CEPALCO service area for the period Oct. 4 to 11, 2010 [none on Saturday & Sunday]. Again, CEPALCO would like to caution customers that the actual switch off and switch on time may vary from the announced schedule depending on the actual load curtailment levels imposed by NGCP on CEPALCO on a day to day basis.

Time of Brownout	Dates: Oct. 4 & 7	Dates: Oct. 5 & 8	Dates: Oct. 6 & 11
9:30am to 12noon	Charlie 4	Charlie 2 and Carmen 3	Tango 2 and Pueblo 2
12noon to 2:30pm	Tango 1	Carmen 1 and Carmen 2	Charlie 1
2:30pm to 5:00pm	Tango 2 and Pueblo 2	Charlie 4	Charlie 2 and Carmen 3
5:00pm to 7:30pm	Charlie 1	Tango 1	Carmen 1 and Carmen 2

AREA COVERAGE

CHARLIE 1:

1. Greater portion of the City Poblacion along and bounded by Hayes St., Mortola St., JR Borja St. including S.Daumar St. up to corner JR. Borja St., Aguinaldo St. up to corner Justo Ramonal St.,
2. Along Pabayo St.; including portions of C. Pacana St., JR Borja St., Gomez St., C.Taal St., T.Neri St., Abejuela St., Hayes St. and Gaerlan St. from Pabayo St..
3. Hayes St. from corner A.Velez St. towards City Hall area & Burgos St., along T.Chavez St. from Burgos St. up to Tiano Bros. St. - including portions of Tiano Bros. St., Rizal St., Capistrano St. from Hayes St.; and; Dolores St..
4. Along Burgos St. from T.Chavez St. up to corner Gomez St. including portions of Abejuela St., T.Neri St., Cruz Taal St. and Gomez St. from Burgos St..
5. Surroundings along Mabini St. from corner A.Velez St. towards Capistrano St. up to corner Gomez St. including portions of Tiano Bros. St. from Mabini St.; Yacapin St. from Capistrano St. towards Burgos St.; and; C.Pacana St., JR Borja St. and Gomez St. from Capistrano St.
6. Along Pabayo and T. Saco Streets from Dolores towards Clementino Chaves St. up to 15^th-26^th St., Nazareth.
7. Greater portion of Macasandig, all of Tibasak, all the way to Taguanao.

CHARLIE 2:

1. Portions of T.Chavez St. from Corrales Ave. up to Tiano Bros. St. including portions of A.Velez St from Hayes St..
2. Along Hayes St. from Camaman-an towards V.Roa St. up to corner J.Ramonal Ext., including Pinikitan, Adela, Balangiao area, Quirino St. and Yacapin Ext.; portions of Macasandig, XU Grade School areas.
3. Along J.Ramonal Ext. from Sto. Niño, Cogon towards V.Roa St., R.Chavez St. up to Corrales Ave. corner A.Luna St.; D. Velez St & Yacapin St., JR Borja Sts between V. Roa St. and Mortola St.(PNB/Everbest) towards Daumar Sts. To Yacapin Ext. up to Doña Nieves St.
4. Along Corrales Ave. towards FICCO, Nazareth, including Yacapin Street Towards Capistrano St.,
5. Greater portion of Nazareth; greater portion of Ramonal Village. From Hayes-12^th Sts up to T.Saco-14^th Sts. T.Saco-6^th Sts.,14^th-21^st Sts., and 15^th-21^st Sts.

CHARLIE 4:

1. Portions of Camaman-an near and including towards Manto to the San Jose and St. Vianney Seminaries, greater portion of Camaman-an proper towards Bontong, Bolonsori up to Upper Camaman-an and Hayes Subdivision including Tipolohon.
2. Part of Limketkai Center, Lapasan including Mc Donalds, PNB and Allied Bank.
3. Along Recto Ave. from corner Agora Road towards Maharlika Bridge including Coca-Cola Plant & Osmeña Ext.. up to Gaabucayan St.
4. Portion of A.Luna St. towards all of Mabulay Subdivision including portion of the Provincial Capitol and Provincial Hospital Area.
5. Medical Center area along and bounded by Capistrano St., Echem St. up to corner Akut St., A.Velez St., and Recto Ave.(UCCP side), including all of Consolacion.
6. Corrales Ext. from Gaabucayan St. towards most of PPA area.
7. J.Pacana St. from Recto Avenue towards all of Macabalan area.
8. All of RER Subdivision Phases I & 2 including Dolores compound; towards Fortune Express Shop along Maharlika Highway; including all of NHA-KSS Subdivision and portion of Bayabas near Manila Broadcasting Radio Station to Capisnon area.
9. Greater part of Bulua from Bulua Rotonda towards all of Iponan.
10. Greater part of Patag including Calamansi Drive, Apovel subdivision, Terry Hills subdivision and Anhawon, Bulua area.

CARMEN 1:

1. Greater portion of Carmen along Lirio St., from Trinity St., towards Oak St., Max Suniel St., Vamenta Blvd, up to cor. Jasmin St. including Waterlily St. and the Carmen market area.
2. Along Mabolo St. from Lirio St. towards corner Rosal St. including portion of Marigold St. .
3. Portions of Carmen: vicinities along Vamenta Blvd. from Fernandez St. towards greater part of Ilaya including Zayas St. up to Callos-Elloso St.: portions of Ipil St. and Mahogany St. from Fernandez St.; and; Seriña St. from COA towards Gumamela Ext.St., Guani Coliseum (former O.Roa’s) and Maharlika Police Station.
4. All of Macanhan, Carmen towards all of Lower Balulang.

CARMEN 2:

1. Portions of Carmen along Yacal St. towards Lirio St., Vamenta Blvd., Waling-waling St. upto GSIS area including Ferrabrel St., Mango St. and portion of Rosal St. and Marigold St.
2. All of Kauswagan proper including Fairlane Village and portion of Capisnon, Bonbon and Bayabas.
3. Isla de Oro.
4. Along Montalban St. from near Tiano Bros. St. towards Burgos St., del Pilar St. and Magsaysay St. including portions of Macahambus St. and Abellanosa St. from Burgos St..
5. Portions of A.Luna St. from corner Corrales Ave.; towards vicinities along A.Velez St. upto corner Mabini St. including portion of: Makahambus St. from A.Velez St. and Tiano Bros. St. from Macahambus St.

CARMEN 3:

1. Portions of Carmen: along vicinities of Villarin St. towards portion of Canitoan-Pagatpat Road; including St. Mary’s Academy (formerly Cathedral School of Technology), Golden Village, City Hospital-DOH Area, COWD reservoir and Seriña St. from Villarin St. down to Madonna and Child Hospital.
2. M.Suniel St. from Villarin St. down towards portion of Mabolo St.; including Matilde Neri St., Dabatian St. and Cagayan de Oro College area; and; portion of Lirio St. area.
3. Portions of Upper Carmen towards Dagong including SM CITY; PRYCE HOTEL; SPUM & SEARSOLIN.

PUEBLO 2 :

1. Portions of Upper Carmen, Upper Balulang and all of Brgy. Lumbia including; PNR Sawmill, Shop and transmitter; Pueblo de Oro, Camella Homes, Xavier Estates, Xavier Heights, Xavier High School, La Buena Vida, Frontiera and Montana subdivisions; CAA-BAT Lumbia Airport & Rio Verde.

TANGO 1:

1. Portions of Natumulan down to Casinglot, Tagoloan.
2. All the Barangays of Bugo, Puerto, Tin-ao, Agusan, Tablon, Baloy, Cugman, Gusa, and greater portion of Lapasan.
3. Portions of Lapasan-Camaman-an road from Recto Ave. towards Limketkai Commercial Center including Grand Caprice Restaurant.
4. All of Osmeña St. and portion of Cogon Market Area (JR Borja side and Yacapin side) including Roxas St. towards portion of JR Borja St.
5. Upper Gusa, Indahag, Malasag, FS Catanico and Balubal.
6. Agora Market area including Gaabucayan St.
7. Corrales Ext. from corner Recto Ave. up to Gaabucayan St.
8. DMPI plantation, MENZI Agri, etc.

TANGO 2:

1. Portions of Natumulan, greater Tagoloan proper, all the Barangays of Baluarte, Pulot, Sugbongcogon, and Gracia, Tagoloan
2. All the Barangays of Sta. Cruz, Mohon, Sta. Ana, and Sto. Rosario, Tagoloan including Kimaya, Villanueva.
3. All of Villanueva and Jasaan, Misamis Oriental.

We hope all CEPALCO customers & the public in general will be guided by this announcement. Thank you.

Released by:

Marilyn A. Chavez

Senior Manager

Customer & Community Relations Dept.

Philippines Markets: 29 September 2010

29 September 2010

USD/PhP: 43.88 - 0.22 PSEi: 4111.05 - 12.78
USD/JPY: 83.64 PFINC: 938.78 - 4.15
EUR/USD: 1.3605 BDO: 60.40 - 0.10
GBP/USD: 1.5828 BPI: 54.60 - 0.40
PDSTF3M: 4.1750 MBT: 70.60 - 1.25
Prices as of 4:00pm Source: Bloomberg, Reuters

RP stocks dip on profit taking
By Doris Dumlao
Philippine Daily Inquirer

Local stocks dipped slightly on Wednesday as investors pocketed gains from previous day's rallies. The main-share Philippine Stock Exchange index shed 12.78 points or 0.31 percent to finish at 4,111.05. All indices succumbed to profit-taking except for the mining sector.

www.inquirer.net

Jonathan Ravelas
Chief Market Strategist
(632) 858-3145

Rhys Cruz
Junior Researcher
(632) 858-3001

Morning Brief 29 September 2010

Upgrade secured by RP

Country in ‘white’ list of tax standard-compliant states

THE PHILIPPINES has been raised to the "white list" of countries complying with an Organization for Economic Cooperation and Development (OECD) tax information sharing standard.

"The Philippines today moved up to the list of jurisdictions that ‘have substantially implemented the internationally agreed tax standard’," the OECD yesterday said in a statement.

The announcement came shortly after Finance Secretary Cesar V. Purisima, who is in the United States, signed Revenue Regulations (RR) 10-2010 that will be used to implement Republic Act (RA) 10021 or The Exchange of Information on Tax Matters Act.

RR 10-2010 will still have to be published in a newspaper of general circulation before taking effect 15 days after.

BusinessWorld reported last Monday that Finance and tax bureau officials were finalizing RA 10021’s implementing rules in time for a September 29 to 30 meeting in Singapore of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The forum monitors compliance with the OECD tax standard among OECD and non-OECD member states.

The country landed on the OECD’s list of tax havens last April 2, 2009 and was transferred to the "grey list" after it pledged to uphold the standard. RA 10021 became law in March this year.

"The Philippines has a network of more than 30 treaties that provide for exchange of information in tax matters. Until now, however, domestic legal restrictions prevented its tax authorities from obtaining and exchanging certain types of information ... The new law and regulations remove these restrictions, thus enabling many of the Philippines’ existing treaties to meet the international standard," the OECD said in the statement.

Internal Revenue Commissioner Kim S. Jacinto-Henares, whose agency is tasked with implementing RA 10021, said money flows "would now be easier." Ms. Jacinto-Henares is currently attending the Global Forum meet.

Revenue Regulations 10-2010 expounded on the provisions of RA 10021, particularly on Section 3, which gave the Bureau of Internal Revenue (BIR) commissioner the authority to look into bank deposits upon the request of a foreign tax authority.

A Finance official said there were "misinterpretations" on a provision that states tax information may be given to foreign authority "provided that such information would be used for tax assessment, verification, audit, and enforcement purposes."

This has been clarified in the rules, which state "the BIR is likewise authorized to use, for tax assessment, verification, audit and enforcement purposes, any such information" requested.

Imports grew to $4.68B in July; trade deficit eases to $2.69B

THE COUNTRY’S import bill grew 16.2 percent year-on-year to $4.68 billion in July, increasing for the ninth straight month, National Statistics Office said Tuesday.

Total external trade—the combined value of outbound and inbound goods—in the seven months to July reached $59.14 billion, an increase of 31.6 percent from a year ago.

This kept the trade balance in favor of the rest of the world with the Philippines incurring a deficit of $2.69 billion, down from $3.87 billion in the same period last year.

The July imports were also up 11 percent from $4.21 billion in June.

A strong inflow of goods from abroad, which indicates a similar movement in exports in succeeding months, is considered a good sign for a country like the Philippines, which relies heavily on foreign supplies of electronics inputs for its biggest source of export revenues.

NSO documents showed that electronic products accounted for 34.9 percent of total imports in July, with the value rising 2.4 percent year-on-year to $1.63 billion. Semiconductor devices and parts made up 27.6 percent of all electronics shipments, racking up $1.29 billion in bills.

The operation of modern electronic devices such as computers, cell phones, transistors, solar panels, diodes and integrated circuitsdepend on semiconductor materials. Silicon is widely used in the production of commercial semiconductors.

Electronics imports in July increased 12.9 percent from $1.45 billion in June.

July shipments of mineral fuels, lubricants and related materials—which represented the second biggest group in terms of value—jumped 17.8 percent to $719 million.

Transport equipment, the country’s third largest import for the month increased 27.7 percent to $260.86 million. In fourth were industrial machinery and equipment, which jumped 36.7 percent to $211.65 million. This was followed by metal ores and scrap, which rose 89.4 percent to $200.56 million.

U.S. Stocks Fluctuate as Walgreen Rally Offsets Confidence Drop

U.S. stocks advanced, erasing most of yesterday’s drop, as Walgreen Co. led a rally in consumer- staples and health companies and investors speculated the Federal Reserve will buy more debt to safeguard the economy.

Walgreen, the largest U.S. drugstore chain, jumped 11 percent as earnings topped estimates. Pfizer Inc. and Johnson & Johnson paced gains in health-care shares as the Supreme Court agreed to hear an appeal by pharmaceutical companies seeking to block thousands of public hospitals from suing over a federal discount-drug program. Monsanto Co. slid 8.1 percent on concern its SmartStax corn seeds aren’t performing as well as predicted.

The Standard & Poor’s 500 Index climbed 0.5 percent to 1,147.70 at 4 p.m. in New York after tumbling as much as 0.9 percent. The Dow Jones Industrial Average climbed 46.10 points, or 0.4 percent, to 10,858.14.

Treasuries Rise as U.S. Auction of Five-Year Notes Draws Record Low Yield

Treasuries gained as the government’s $35 billion sale of five-year notes drew the lowest yield since the government began quarterly offerings of the securities in 1976.

The yield on the current five-year debt fell to the lowest level in almost two years as a drop in consumer confidence spurred speculation that the Fed will increase purchases of Treasuries to support the economy. The securities were auctioned today at a yield of 1.260 percent, compared with the 1.276 percent average forecast in a Bloomberg News survey of 8 of the 18 primary dealers obligated to participate in U.S. debt sales.

“You have new pieces of uncertainty, with the Fed and quantitative easing 2 priced in,” said Sean Simko, who oversees $8 billion at SEI Investments Co. in Oaks, Pennsylvania. “With the volatility in the marketplace, you’re going to see the Treasury market well-bid.”

The current five-year note yield dropped 6 basis points, or 0.06 percentage point, to 1.23 percent at 4:18 p.m. in New York, according to BGCantor Market Data. The price of the 1.25 percent security maturing in August 2015 gained 9/32, or $2.81 per $1,000 face amount, to 100 3/32.

The yield touched 1.22 percent, the lowest level since Dec. 17, 2008, the day after the Fed cut its target lending rate to zero to 0.25 percent. Yields on two-year notes dropped 2 basis points to 0.43 percent, compared with the record low of 0.41 percent reached on Sept. 22. Benchmark 10-year note yields slid 6 basis points to 2.47 percent.

Crude Oil Trades Near Three-Day Low on Gasoline Supply Gain, Weak Demand

Oil traded near a three-day low in New York after reports showed an increase in U.S. gasoline stockpiles and lower demand for the fuel, adding to signs of slowing economic growth.

Futures declined yesterday as MasterCard, the second- biggest payments network company, reported gasoline demand declined for the fifth time in six weeks. The American Petroleum Institute said inventories of the fuel rose by 3.02 million barrels last week. An Energy Department report today may also show supplies climbed.

“Demand is relatively weak and we have more than sufficient supply,” said James Williams, an economist at WTRG Economics, an analysis and research firm for energy companies based in London, Arkansas. “Inventories are in good shape, so there is no fundamental reason for oil prices to keep rising.”

The November contract traded at $76.22 a barrel, up 4 cents in electronic trading on the New York Mercantile Exchange at 8:51 a.m. Sydney time. Yesterday it lost 34 cents, or 0.4 percent, to $76.18, the lowest close since Sept. 23. Prices are down 4 percent for the year.

Sources: Bloomberg, Reuters, www.inquirer.net, www.philstar.com, www.bworldonline.com, www.cnnmoney.com

Jonathan Ravelas
Chief Market Strategist
(632) 858-3145

Rhys Cruz
Junior Researcher
(632) 858-3001