15 March 2011
USD/PhP: 43.82 + 0.23 PSEi: 3896.31 - 22.39
USD/JPY: 81.56 PFINC: 858.72 - 7.36
EUR/USD: 1.3920 BDO: 49.00 - 0.15
GBP/USD: 1.6062 BPI: 55.50 unch
PDSTF3M: 1.5865 MBT: 60.30 - 1.75
Prices as of 4:00pm Source: Bloomberg, Reuters
Philippines Reports Budget Surplus on Dividends, Tax Gains
By Karl Lester M. Yap
March 15 (Bloomberg) -- The Philippine government reported
a second budget surplus in three months as spending fell, tax
collection beat targets and dividends from state agencies
boosted revenue.
The surplus was 13.4 billion pesos ($306 million), the
government said in a statement in Manila today. Spending
declined 5.3 percent and revenue increased 47.3 percent from a
year earlier.
President Benigno Aquino is going after tax evaders,
smugglers and corrupt officials to narrow a budget deficit that
surged to a record 314.4 billion pesos in 2010. The government
aims to cut the shortfall to 300 billion pesos this year while
increasing spending on roads, classrooms and bridges to an all-
time high.
“I’m confident that the government will be able to meet
their deficit target for this year,” Angeline Sia, a fixed-
income trader who helps manage the equivalent of $12 billion at
BPI Asset Management Inc. in Manila, said before the report.
“What’s crucial is to improve revenue collection to be able to
cut the deficit without hurting spending.”
Moody’s Investors Service in January raised its outlook on
the nation’s debt rating to positive from stable. The $161
billion economy grew 7.3 percent last year, the fastest pace in
34 years.
PH stocks fall in profit-taking after strong opening
By Doris Dumlao
Philippine Daily Inquirer
MANILA, Philippins—(UPDATE) Local stock prices rose in an upbeat mood at the start of trading on Tuesday but swung back to negative territory near the closing as uncertainties in developed markets triggered profit-taking when the main index neared 3,950.
The main-share Philippine Stock Exchange index closed 22.39 points, or 0.57 percent, lower to 3,896.31.
The index initially gained as much as 30 points upon opening but encountered resistance near 3,950.
The PSEi is just following everybody else. In fact, we're outperforming the region today," said Jose Mari Lacson, head of research at local stock brokerage Campos Lanuza & Co.
Lacson noted that Japan's equity index Nikkei was down by 13 percent. "The region is bleeding," he said.
Value turnover stood at P5.25 billion. There were nearly three times as many decliners for every single gainer.
The holding firm counter, considered as a proxy of the prospects of the domestic economy, was the only one that bucked the downtrend.
Lacson said the mood in the market was one of surprise during the upbeat opening.
Others attributed this to some herd mentality especially as P2 billion in net foreign buying was recorded on Monday.
Investors pocketed gains from EDC, DMCI, Metrobank, Aboitiz Power, PLDT, First Gen, Banco de Oro, Ayala Land, Nickel Asia, Meralco, San Miguel and Empire East, some of which had gained in early session.
Jonathan Ravelas
Chief Market Strategist
(632) 858-3145
Rhys Cruz
Junior Researcher
(632) 858-3001
