Scheduled NGCP Power Interruption on Sunday, September 18, 2011

CAGAYAN ELECTRIC POWER & LIGHT CO., INC

Important Notice to CEPALCO Customers

Subject: Scheduled NGCP Power Interruption on Sunday, September 18, 2011

The Cagayan Electric Power & Light Co., Inc. (CEPALCO) would like to inform all customers that the National Grid Corporation of the Philippines (NGCP) has advised CEPALCO that power supply will be interrupted on September 18, 2011 as shown below:

Reasons:	NATIONAL GRID CORPORATION OF THE PHILIPPINES (NGCP) WILL CONDUCT ANNUAL PREVENTIVE MAINTENANCE WORKS OF THE 100-MVA POWER TRANSFORMER AND ITS ASSOCIATED HIGH VOLTAGE EQUIPMENT AT THEIR TAGOLOAN SUBSTATION. TO MAKE USE OF THE INTERRUPTION, CEPALCO WILL CONDUCT LINE MAINTENANCE WORKS ALONG THE NATUMULAN-CAGAYAN 69KV LINE. TO REDUCE THE IMPACT OF THE SAID INTERRUPTION, CEPALCO WILL SHIFT THE SUPPLY OF CAMAMAN-AN, CARMEN & PUEBLO SUBSTATIONS TO ANOTHER SOURCE AND MINERGY WILL BE SYNCHRONIZED TO THE GRID TO PROVIDE SUPPORT.
Date:	Sunday, September 18, 2011
A. Interruption Time:	6:00 AM – 6:00 PM (12 hours)
Affected Areas:	M3 - NPC NATUMULAN (TAGOLOAN-CAGAYAN 69-KV CIRCUIT): 1.      Del Monte Philippines, Inc., Bugo 2.    Cagayan de Oro Oil Company, Tablon 3.    Cagayan Corn Products, Tablon 4.    Mitimco, Baloy 5.     Gaisano City, Recto Ave. 6.    Lim Ket Kai Mall, Lapasan 7.     Lim Ket Kai Plant, Puntod 8.    Nestle Philippines, Inc. Tablon 9.    Alwana, Cugman 10.HCH Corporation, Tagoloan PORTIONS OF CHARLIE FEEDER # 4: 1.      Along JR Borja Extension from Macajalar Road up to Cronin Village, Camaman-an including Jamesway Hatchery. 2.    Along Recto Ave. from Corrales Avenue towards Maharlika Bridge. 3.    Medical Center area along and bounded by Capistrano St., Echem St. up to corner Akut St., Apolinar Velez St., and Recto Ave.(UCCP side), including all of Consolacion. 4.    All of RER Subdivision Phases I & 2 including Dolores compound; towards RTMI Motorpool along Maharlika Highway; including all of NHA-KSS Subdivision and portion of Bayabas near Manila Broadcasting Radio Station to Capisnon area. 5.     Greater part of Bulua from Bulua Rotonda towards all of Iponan. 6.    Greater part of Patag including Calamansi Drive, Apovel subdivision, Terry Hills subdivision and Anhawon, Bulua area.
B. Interruption Time:	6:00 AM – 10:30 AM (4 hours & 30 minutes) 4:30 PM – 6:00 PM (1 hour & 30 minutes)
Affected Areas:	CHARLIE FEEDER # 1 AREAS: 1.      Greater portion of the City Poblacion along and bounded by Hayes St., Mortola St., JR Borja St. including Sotero Daumar St. up to corner JR. Borja St., Aguinaldo St. up to corner Justo Ramonal St. 2.    Along Pabayo St.; including portions of Cayetano Pacana St., JR Borja St., Gomez St., C.Taal St., Tirso Neri St., Abejuela St., Hayes St. and Gaerlan St. from Pabayo St.. 3.    Hayes St. from corner Apolinar Velez St. towards City Hall area & Burgos St., along Toribio 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 Toribio Chavez St. up to corner Gomez St. including portions of Abejuela St., Tirso Neri St., Cruz Taal St. and Gomez St. from Burgos St. 5.     Surroundings along Mabini St. from corner Apolinar 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; Cayetano Pacana St., JR Borja St. and Gomez St. from Capistrano St. 6.    Along Pabayo and Tomas Saco Streets from Dolores towards Clementino Chaves St. up to 15th-26th St., Nazareth. 7.     Greater portion of Macasandig, all of Tibasak and Taguanao. CHARLIE FEEDER # 2 AREAS: 1.      Portions of Toribio Chavez St. from Corrales Ave. up to Tiano Bros. St. including portions of Apolinar Velez St from Hayes St. 2.    Along Hayes St. from Camaman-an towards Capt. Vicente Roa St. up to corner Justo Ramonal Ext., including Pinikitan, Adela, Balangiao area, Quirino St. and Yacapin Ext.; portions of Macasandig, XU Grade School areas. 3.    Along Justo Ramonal Ext. from Sto. Niño, Cogon towards Capt. Vicente Roa St., Ramon Chavez St. up to Corrales Ave. corner Antonio Luna St.; Domingo Velez St. & Yacapin St., JR Borja Sts between Capt. Vicente 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-12th Sts up to Tomas Saco-14th Sts. ,Tomas Saco-6th Sts.,14th-21st Sts., and 15th-21st Sts. PORTIONS OF CHARLIE FEEDER # 4 AREAS: 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 and Allegria Subdivision. 2.    Part of Limketkai Center, Lapasan including Mc Donalds, PNB and Allied Bank. 3.    Along Recto Ave. from corner Agora Road towards Corrales Avenue including Coca-Cola Plant; portion of Antonio Luna St. towards all of Mabulay Subdivision including portion of the Provincial Capitol and Northern Mindanao Medical Center (NMMC) Area. 4.    Agora Market area including Gaabucayan St. and portion of Lapasan. 5.     Corrales Ext. from Gaabucayan St. towards most of PPA area. 6.    Julio Pacana St. from Recto Avenue towards all of Macabalan area. PUEBLO FEEDER # 2 AREAS: 1.      Portion 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 including Nanuri School.
C. Interruption Time:	6:00 AM – 6:30 AM (30 minutes) Switching works 5:30 PM – 6:00 PM (30 minutes) Switching works
Affected Areas:	CARMEN FEEDER # 3 AREAS: 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.    Max Suniel St. from Villarin St. down towards portion of Mabolo St.; including Matilde Neri St., Dabatian St. and COC-Phinma area and portion of Lirio St. area. 3.    Portions of Upper Carmen towards Dagong including SM CITY; PRYCE HOTEL; SPUM & SEARSOLIN.

Power will however be restored immediately without further notice when maintenance works of NGCP and CEPALCO are completed earlier than scheduled.

We hope the affected customers and the public in general will be guided by this announcement. Thank you.

Released by:

Ms. Marilyn A. Chavez Senior Manager Customer & Community Relations Dept.

Philippine Markets: 7 September 2011

07 September 2011 

USD/PhP:          42.25                        PSEi:             4315.21                        + 12.13 

USD/JPY:           77.13                        PFINC:                   970.00                        + 4.56 

EUR/USD:         1.4109                        BDO:                  56.85                        - 0.10 

GBP/USD:         1.5999                        BPI:                  57.50                        + 0.70 

PDSTF3M:         0.6446                        MBT:               70.50                        + 0.05 

Prices as of  4:00pm                        Source: Bloomberg, Reuters 

Philippines stock index inches upward 

By: Doris C. Dumlao 

Philippine Daily Inquirer 

MANILA, Philippines–The local stock market index ended slightly higher on Wednesday as investors hunted for bargains among blue chips, but the day’s rebound was tempered by profit-taking on mining.

The main-share Philippine Stock Exchange index advanced by 12.13 points or 0.28 percent to finish at 4,315.21. It was led higher by the services counter, which surged by 1.48 percent but the ascent was curbed by a 4 percent decline in the mining/oil sub-index.

Turnover at the local market amounted to P5.46 billion. There were 78 advancers against  75 decliners while 28 stocks were unchanged.

Index heavyweight PLDT gained 1.6 percent to P2,420, thus perking up the services index and the overall PSEi.

Other stocks that helped boost the main index were First Gen, ICTSI, Aboitiz Power, Metrobank, BPI, Globe Telecom, Ayala Land and Philex.  San Miguel Corp. and Atlas also gained in heavy trade.

On the other hand, Lepanto “A” (open only to local investors) and “B” (open to local and foreign investors), Ayala Corp., DMCI, EDC and SM Investments traded lower.  Boulevard, Manila Mining A and Vista Land also ended in the red.

Overnight, Wall Street reopened after a long weekend break in a gloomy mood.  The Dow Jones Industrial Index lost 100.96 points or 0.9 percent to finish at 11,139.30.

BDO UNIBANK, INC.

Jonathan Ravelas
Chief Market Strategist
(632) 858-3145 

Morning Brief: 7 September 2011

Inflation slows in August  ANNUAL INFLATION eased slightly in August, giving the Bangko Sentral ng Pilipinas (BSP) room to keep rates steady amid sagging economic growth. “[The latest inflation figure] confirms our assessment that the inflationary pressures have moderated and that inflation is now going to be within the target range of the BSP,” central bank Governor Amando M. Tetangco, Jr. told reporters yesterday at the sidelines of an economic forum in Pasay City. “We will have to continue to monitor the developments. But barring any surprises on the inflation side, I do not see any urgency for changing the monetary policy stance at this point and in the near future,” Mr. Tetangco said. The latest consumer price index (CPI), reckoned from 2006 prices and with new components, placed annual inflation at 4.7% last month, slower than July’s 5.1%. Based on the old series, which uses 2000 prices, August inflation stood at just 4.3%, down from 4.6% in the prior month. Using the old series, the August figure -- a four-month low -- was within the BSP’s 3.9-4.8% forecast and lower than the 4.53% median in a BusinessWorld poll. Analysts’ and official outlooks are still based on the old series. The National Statistics Office (NSO), in announcing the August data, said: “[the] continued deceleration in the annual increment in the heavily weighted food and non-alcoholic beverages index caused headline inflation to continue to move up at a slower rate.” Core inflation, which excludes volatile price movements of products such as food and fuel, also slowed to 3.4% in August from 3.7% in July based on the old series. “It looks like we have more flexibility in the monetary side now given that the inflation rate has actually declined from the previous [month] and considering the fact that we need to provide support to productive activities,” Mr. Tetangco said. Gross domestic product growth slowed markedly to 3.4% in the second quarter, pulled down by a plunge in investments on public construction. “[W]e are poised to meet the full-year inflation target,” Mr. Tetangco also said in a text message to reporters. The average year-to-date inflation rates of 4.3% (2000 prices) and 4.8% (2006 prices) are still within the central bank’s 3-5% target for 2011. HSBC regional economist Trinh D. Nguyen, in a research note, said inflation eased “more than expected primarily due to the decline of food prices.” “With inflationary pressures now largely contained, the BSP has some room to focus on growth, which decelerated more than expected in the second quarter,” she added. “Given the decline of inflationary pressures and weaker growth prospects, we expect the BSP to hold the policy (borrowing) rate at 4.5% at their next meeting. While the next move is still likely to go up, we don’t expect a hike before the second quarter of 2012.” Cid L. Terosa, senior economist at the University of Asia and the Pacific, agreed, saying that inflation eased in August because there were “no remarkable changes the prices of food, petroleum and petroleum products and utilities.” “Although oil prices alternately increased and decreased during the month, there was no sustained upward pressure from rising oil or gasoline prices. Aside from that, food prices did not rise considerably in August,” Mr. Terosa said. The Monetary Board, he added, will “maintain policy rates because inflationary pressures have been contained.” Echoing the view, University of the Philippines economist Benjamin E. Diokno said: “The BSP should focus on sustaining growth and should keep interest rates unchanged.” Rizal Commercial Banking Corp. Senior Vice-President Marcelo E. Ayes, for his part, said: “The August figure is the confirmation for the BSP’s outlook that inflation will ease in the coming months and with commodity prices going down, there is no more pressure for the BSP to increase policy rates.” Right now “growth outweighs inflation risk outlook,” Mr. Ayes pointed out. The BSP has hiked key rates twice this year to keep inflation from breaching the 3-5% target. Overnight borrowing and lending rates stand at 4.5% and 6.5%, respectively. It moved to adjusting the bank reserve requirement during the last two policy meetings as liquidity became the main concern. The policymaking Monetary Board is scheduled to review the central bank’s key rates tomorrow. NSO data showed that annual price increases in the heavily weighted food and non-alcoholic beverages index slowed to 5.1% in August from 5.7% in July based on the new CPI. The indices for housing, water, electricity, gas and other fuels also moderated to 5.1% from 5.4%. Indices for clothing and footwear, recreation and culture, and education eased to 3.8%, 1.5% and 5.1% from 4.2%, 1.6% and 5.2%, respectively. Experts, however, said there might be a slight uptick in inflation for September. “For September, inflation will be a bit higher but not exceeding 5%, because of impending increases in toll fees and oil prices,” Mr. Terosa said. De La Salle University economist Mitzie Irene P. Conchada concurred, saying: “With the recent increase in price of gasoline products at the start of September, prices of basic commodities may be affected and this could bring inflation slightly higher than August.” “With the economy weakening, September inflation is likely to hover around 4.5% (2000 prices),” Mr. Diokno said in a text message. -- Judy Dannibelle T. Chua Co with a report from Neil Jerome C. Morales

Stocks in U.S. Drop on Euro Zone Debt Crisis; S&P Pares Loss in Final Hour  U.S. stocks fell, giving the Standard & Poor’s 500 Index its longest slump in almost a month, amid concern that Europe’s debt crisis is worsening. Equities pared losses in the final 30 minutes of trading. The benchmark measure trimmed its drop from 2.9 percent as companies most-tied to economic growth rebounded, propelling the Morgan Stanley Cyclical Index to a 0.2 percent gain for the day. Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) decreased more than 3.4 percent on concern about a global financial crisis. Exxon Mobil Corp. (XOM) and Alcoa Inc. (AA) lost at least 1.3 percent on speculation that demand for commodities will slow. The S&P 500 lost 0.7 percent to 1,165.24 at 4 p.m. in New York. The benchmark gauge has fallen 4.4 percent in three days, the longest drop since Aug. 8. The Dow Jones Industrial Average slumped 100.96 points, or 0.9 percent, to 11,139.30 today. “The big worry is the situation in Europe,” John Carey, a Boston-based money manager at Pioneer Investments, said in a telephone interview. The firm oversees about $250 billion. “Until we have some resolution of that crisis, we’re going to have continued turbulence in the market. I still think the chance of a recession is less than 50 percent. However, there’s the risk that sentiment just turns so negative that people crawl back into their holes and we do have another downturn.” The U.S. stock market was closed yesterday for a holiday, as global equities fell, Italian bonds dropped for an 11th day and the cost of government and bank default insurance rose to records amid concern about Europe’s debt crisis. Treasury 10-Year Yields Fall to Record on European Sovereign-Debt Concern Treasury 10-year note yields decreased to an all-time low as concern Europe’s sovereign-debt crisis will cripple the region’s financial institutions underpinned demand for the safest assets. Yields on 30-year bonds touched the lowest level since January 2009 on speculation Federal Reserve Chairman Ben. S. Bernanke may signal in a speech this week that the central bank will purchase longer-duration debt while shedding shorter maturities. Ten-year notes are the most overvalued ever, according to a financial model created by Fed economists that includes expectations for interest rates, growth and inflation. Stocks dropped. “The fear is that the debt contagion is not abating,” said Michael Franzese, managing director and head of Treasury trading at Wunderlich Securities Inc. in New York. “Because of the global stock meltdown, flight to quality came into play. The safest bet would be to jump into dollar-denominated assets, like Treasuries. The Fed will have to do something to stimulate the economy, and the only way to do that is to buy Treasuries.” The benchmark 10-year note yield was little changed at 1.98 percent at 5:21 p.m. in New York, according to Bloomberg Bond Trader prices. The price of the 2.125 percent securities maturing in August 2021 closed at 101 1/4.

Oil Gains on Forecast Supply Drop; Weather System Builds in Gulf of Mexico  Oil advanced from the lowest in more than a week in New York as investors bet that shrinking crude stockpiles and a storm building in the Gulf of Mexico indicate demand will outpace supply in the U.S., the world’s biggest consumer of the commodity. Futures gained as much as 0.6 percent. An Energy Department report tomorrow may show supplies declined 2.25 million barrels last week, a Bloomberg News survey of analysts show. A disturbance in Mexico’s Bay of Campeche has a 30 percent chance of becoming a tropical depression or storm, according to the National Hurricane Center. Crude for October delivery rose as much as 54 cents to $86.56 a barrel in electronic trading on the New York Mercantile Exchange and was at $86.49 at 8:45 a.m. Sydney time. The contract yesterday slid 43 cents to $86.02, the lowest close since Aug. 26. Prices are 17 percent higher the past year. Brent oil for October settlement climbed $2.81, or 2.6 percent, to $112.89 a barrel on the ICE Futures Europe Exchange yesterday. The European benchmark contract reached a record premium of $26.87 to U.S. futures, breaching the previous high of $26.21 set Aug. 19.

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

BDO UNIBANK INC. 

Jonathan Ravelas

Chief Market Strategist

(632) 858-3145