CDO Brownout Schedule for: Oct. 12 to 19, 2010 [None on Saturday & Sunday]

8 October 2010

Power Interruption GUIDE in the CEPALCO Area

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

Period Covered : Oct. 12 to 19, 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. 12 to 19, 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. 12 & 15	Dates: Oct. 13 & 18	Dates: Oct. 14 & 19
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: 08 October 2010 (as of 2:00 pm)

08 October 2010

USD/PhP: 43.31 (as of 12:00pm) PSEi: 4236.98 - 8.07
USD/JPY: 82.36 PFINC: 954.72 - 2.78
EUR/USD: 1.3937 BDO: 59.95 - 0.55
GBP/USD: 1.5871 BPI: 55.10 - 0.25
PDSTF3M: 4.0308 MBT: 75.00 unch
Prices as of 2:00pm Source: Bloomberg, Reuters


Philippine Interest rate Outlook

Secondary money market rates were lower by 15 basis points week-on-week following a better than expected September inflation of 3.5 percent. Monetary authorities kept its benchmark rates unchanged at its last meeting amid a benign inflation environment.

Philippine Peso Outlook

As of 12:00 pm, the local currency rose 1.30 percent week on week to 43.31 as the US dollar extended its losses against the major currencies, particularly the Euro. Local players scaled back purchases on further expectations that the currency will move to 43.00 levels.

Chartwise, the recent break below the of the 43.70 levels now puts the 43.00 levels to a challenge. Any pullback if any is limited to the 43.50 levels.

Philippine Equities 0utlook

Local stocks rose anew by 3.04 percent week-on-week to 4236.98 as foreign portfolio flows trickled to the local bourse supported by low interest rate environment.

Chartwise, the market appears to have the momentum to challenge the 4500 levels.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145

Rhys Cruz
Junior Researcher
(632) 858-3001

Morning Brief: 08 October 2010

BSP keeps key policy rates at historic low levels The Bangko Sentral ng Pilipinas Thursday maintained its key interest rates at historically low levels to sustain the country’s robust growth over the short to medium term. Following a meeting of the Monetary Board, BSP Deputy Governor Nestor Espenilla Jr. said in a press conference that there was no pressure for the central bank to reverse its current policy stance, citing the favorable inflation environment. Espenilla, who currently serves as officer in charge of the BSP, said the Monetary Board saw it prudent to keep its overnight borrowing and lending rates at 4 and 6 percent. “The Monetary Board’s decision was based on its evaluation that monetary policy settings remain appropriate as inflation forecasts continue to be within the government’s range,” Espenilla said. The record low policy rates have been in place since July 2009. The rates had been brought down to help the country avoid a recession last year when the global turmoil was said to have reached its peak. The low rates of the BSP resulted in a drop in commercial bank lending rates which, in turn, spurred demand for loans. An increase in bank loans tends to support more consumption and investment activities. BSP officials said these were factors that allowed the country to steer clear of recession. The strong recovery of the economy this year has led to speculations that the central bank would soon raise its key policy rates. The economy expanded by 7.9 percent in the first semester—the fastest pace in more than 30 years. Moreover, some economists noted that keeping interest rates too low for too long could substantially boost demand and lead to a faster rate of rise in the prices of goods and services. But central bank officials said that, despite strong growth in the first semester, there was no need to raise interest rates so soon. Inflation has so far remained benign, settling at a 10-month low of 3.5 percent in September. It is projected to stay that way over the short to medium term. According to officials, inflation has remained within benign levels, despite increasing demand, because of an unusual rise in investments, which tends to increase supply. The impact of rising demand on consumer prices is therefore offset by an increase in supply, they explained. The government aims to keep inflation within a range of 3.5 to 5.5 percent this year, and within 3 to 5 percent next year until 2014. RP reserves breach $50-B mark in September The country’s foreign currency reserves surged in September and breached the $50-billion mark mainly due to income generated from investments abroad and offshore loans the government took out earlier this year. The Bangko Sentral ng Pilipinas yesterday reported that the gross international reserves (GIR) reached $53.54 billion as of end-September, up 26 percent from $42.53 billion posted in the same period a year ago. Central bank officials said the record GIR level further raised the confidence of foreign creditors in the Philippines. A closely watched economic indicator, the GIR determines a country’s ability to engage in commercial transactions with the rest of the world. Key transactions include payment of imported goods and services and settlement of debts denominated in foreign currencies. In a statement, the BSP said the latest amount of foreign reserves would be enough to cover 9.4 months worth of the country’s usual imports. It is also worth 5.3 times more than the country’s cumulative debt maturing within a year. According to the central bank, one significant driver of the GIR in September was the government’s sale of $1 billion worth of global bonds. There were also the proceeds from various loans the government took out, including that from the World Bank. The GIR could have been higher had the government accepted more bids for the global bonds, which were highly oversubscribed. Tenders for the bonds reached $13 billion, but treasury officials said the government decided not to borrow more than what was programmed. The increase in gold prices in the world market likewise boosted the GIR, which is made up of foreign currencies as well as gold holdings. The GIR was also helped up by the BSP’s income from its investments in foreign securities, mostly US treasuries.

U.S. Stocks Decline as Shares of Commodity Producers Retreat U.S. stocks fell, sending the Standard & Poor’s 500 Index lower for a second day, as mining and energy companies fell after commodity prices erased gains and PepsiCo Inc. led consumer-staples shares lower. Chevron Corp. and Freeport-McMoRan Copper & Gold Inc. paced losses in commodity producers as a rebound in the dollar drove down oil and metals prices. PepsiCo dropped 3 percent after lowering the top end of its annual profit forecast. Marriott International Inc. slumped 5.8 percent, the biggest decline in the S&P 500, after the largest U.S. hotel chain missed earnings projections. The S&P 500 dropped 0.2 percent to 1,158.06 at 4 p.m. in New York. The index has fallen two straight days after closing at the highest level since May. The Dow Jones Industrial Average lost 19.07 points, or 0.2 percent, to 10,948.58. The Dollar Index, which gauges the currency against six major peers, rose 0.1 percent to rebound from its lowest level since January. TIPS 30-Year Inflation Rate Is Highest Since June on Fed Purchase Outlook Treasury 30-year bonds are yielding the most relative to inflation-protected debt since June as investors bet the Federal Reserve will be successful in pushing up prices with further purchases of government bonds. The difference in yields between bonds and 30-year Treasury Inflation Protected Securities, an indication of trader expectations for inflation known as the break-even rate, reached 2.294 percentage points yesterday, the widest since June 29. It touched 2.287 percentage points today. Two-year yields reached the lowest ever, setting or matching a record for a fifth consecutive day, before data tomorrow that are forecast to show a rise in the unemployment rate, pointing to a slowing recovery. “The market is starting to price in risks of higher inflation down the road, but there is still more to come,” said Michael Pond, an interest-rate strategist in New York at Barclays Plc who was the top-rated analyst of TIPS in Institutional Investor magazine’s annual poll. Barclays is one of 18 primary dealers that trade with the central bank. “The Fed is telling you they want higher inflation.” The yield on the 30-year bond rose 3 basis points, or 0.03 percentage point, to 3.70 percent at 10:24 a.m. in New York, according to BGCantor Market Data. The price of the 3.875 percent security due in August 2040 fell 18/32, or $5.63 per $1,000 face amount, to 103 1/8. Benchmark 10-year note yields slipped 1 basis point to 2.38 percent. They reached 2.3552 percent yesterday, the lowest level since January 2009. The two-year note yield fell 2 basis points to 0.3591 percent and touched 0.3513 percent, the lowest ever.

Crude Oil Futures Slip From a Five-Month High in New York as Dollar Gains Crude oil tumbled from a five-month high after the dollar rebounded versus the euro and U.S. equities declined, wiping out an early advance. Oil fell the most in three weeks as the greenback climbed against the common currency for the first time in three days, reducing the appeal of commodities as an alternative investment. The Standard & Poor’s 500 Index slipped for a second day as raw- material prices dropped, sending producer shares lower. “The dollar and equities are the main drivers,” said Kyle Cooper, director of research for IAF Advisors in Houston. “What happens with inventories and demand isn’t that important.” Crude oil for November delivery fell $1.56, or 1.9 percent, to settle at $81.67 a barrel on the New York Mercantile Exchange. It was the biggest decrease since Sept. 16. Oil reached $84.43 earlier today, the highest level since May 4. Futures are up 17 percent from a year ago

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