ORO CHAMBER NEW WEBSITE

Dear Members,

Please note that our All New Oro Chamber website is still under construction.  We will update you immediately when it's done.

Many thanks and best regards!

Elmer B. Francisco
Past Trustee
Chairman, Communications Committee

COWD Advisory

Consolidated Petition of the Cagayan de Oro Private Sector to PNoy Seeking Relief for Those Adversely Affected by Tropical Storm Sendong

Oro Private Sector Petitions PNoy for Sendong Relief

By Mike Banos

CAGAYAN DE ORO CITY – The private sector in this gateway city to Mindanao is slated to meet President Benigno S. Aquino III  today to present a comprehensive package of proposed relief measures designed to get the city back on its feet.

Pres. Aquino is scheduled to visit Iligan City in the morning to inspect the Bayanihan Village relocation site before flying back to Cagayan de Oro in the afternoon to speak at the inauguration of the Calaanan resettlement site before proceeding to the Xavier Ecoville Phase 1 relocation site for an inspection and meeting with the private sector.

In a letter to the president, copy of which was furnished to this paper, Oro Chamber President Ma. Teresa R. Alegrio, presents a petition in behalf of the private sector, outlining  a comprehensive package of relief measures for the president’s consideration.

Ms. Alegrio said it is also the private sector’s prayer that concerned government agencies strictly implement permanent “No Build Zones” following the president’s declaration of  riverbanks as "Off Limits to Human Habitation" and a total ban on all types of  mining along the Iponan River.

Besides the Oro Chamber, the petition was also signed by presidents of the various Filipino-Chinese chambers, industrial associations, consumer groups, exporters, bankers and business promotion NGOs.

In their consolidated petition, copy of which was likewise furnished to this paper, the petitioners cited how Sendong paralyzed 40% of Cagayan de Oro’s trade and commerce and affected over 400,000 persons in Region 10 according to the National Disaster Risk Reduction and Mitigation Council (NDRRMC).

A survey conducted by the Oro Chamber (Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. revealed that TS Sendong damaged equipment and structures of micro, small and medium sized enterprises amounting to PhP 158.5-million while equipment losses in the manufacturing sector totaled PhP 809-million.  Business losses arising from cancelled functions in hotel and restaurants as a result of brownouts and the collapse of the water system amounted to 50-60% of expected income.

Reports filed by the Regional Disaster Risk Reduction and Management Council (RDRRMC) listed at least PhP 969.35 million in damages to 30 infrastructure projects including bridges, drainage and flood control. The Cagayan de Oro City Water District reported at least P30.4-million in damages to its infrastructure including major booster pumps of the city’s water district and its chlorination and laboratory facilities resulting in a water crisis which lasted for almost a month.

The package of proposed relief measures were categorized according to assistance to affected micro, small and medium enterprises (MSMEs) such as a rehabilitation fund for technical assistance and special financing for working capital and equipment/machinery acquisition,

a Banko Sentral moratorium on amortizations falling due within six months after Sendong for

business, consumer, home and loans to large enterprises.

It also requests government to expedite the repair and rehabilitation of damaged infrastructure

and logistics facilities such as river embankment/ flood control projects, bridges, water and electric distribution systems, irrigation facilities and most important, dredging of the Cagayan River.

For workers affected by Sendong, the petition requests  the Social Security System (SSS) and Government Service Insurance System (GSIS) for additional calamity loans to all affected private and government employees and to restructure the monthly payment for at least six (6) months; and for  PAG-IBIG to extend a moratorium of six (6) months on all existing loans; set up a rehabilitation fund to allow all borrowers to reconstruct and rehabilitate their damaged homes; and avail of a special calamity loan for personal rehabilitation without deductions to balance outstanding on previous loans.

The private sector is also requesting the Dept. of Trade and Industry (DTI) to conduct a stringent monitoring and enforcement of the price freeze on basic commodities and for the Department of Energy (DOE) to enforce a price freeze on all petroleum products in

Cagayan de Oro and Iligan to their Dec. 16, 2011 price levels while the State of National Calamity remains.

In addition, the petition urges DOE to arrange for free servicing and oil change of all public utility and commercial vehicles affected by Tropical Storm Sendong; as well as provide a one-month subsidy for unpaid December 2011 electricity bills of all flood victims; as well as a 50% discount on retail electricity rates for affected survivors in Cagayan de Oro and Iligan City, and for the Local Water Utilities Administration to cover a portion of the unpaid December 2011 water bills of all flood victims amounting to PhP 25.3M;

Government agencies like the Dept. of Foreign Affairs, National Statistics Office, Land Transportation Office, Land Transportation Franchising Regulatory Board are requested to grant free replacement of passports, birth and marriage certificates, driver’s license and all other documents requiring government authentication, free of charge.

Not the least, the petition proposes the following measures relating to disaster risk mitigation and management to preclude a repeat of the disaster: creation of a Task Force charged with updating geohazard maps, aerial topographical surveys, sonar imaging surveys and satellite imagery needed for a detailed in depth study of the Cagayan de Oro River Basin, watershed and delta areas needed for efficient and accurate modeling studies needed to create a new Master Plan for the city.

In addition, DOST and DENR-MGB are requested to install flood water level gages and warning system in strategic areas of riverbanks and for DENR to strictly enforce the law prohibiting the cultivation of annual row crops on lands with over 15 percent slope and near river banks which previously resulted in massive erosion and silting.

Important Notice to CEPALCO Customers Subject: NGCP Power Interruption on Saturday, January 21, 2012

CAGAYAN ELECTRIC POWER & LIGHT CO., INC

Important Notice to CEPALCO Customers

Subject: NGCP Power Interruption on Saturday, January 21, 2012

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 January 21, 2012 as shown below:

Reasons:	THE NATIONAL GRID CORPORATION OF THE PHILIPPINES (NGCP) WILL CONDUCT LINE MAINTENANCE WORKS ALONG THEIR LUGAIT – CARMEN 69KV LINE. TO MAKE USE OF THE INTERRUPTION, CEPALCO WILL CONDUCT LINE UPGRADING WORKS ALONG DON APOLINAR VELEZ STREET. OTHER LOADS NOT AFFECTED BY THE SAID LINE WORKS WILL BE SHIFTED TO OTHER SOURCE.
Date:	Saturday, January 21, 2012
A. Interruption Time:	7:00 AM - 6:00 PM (11 hours)
Affected Areas:	CARMEN FEEDER #2 (13.8-KV): 1.    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. 2.    Portions of A.Luna St. from corner Corrales Ave.; towards vicinities along A. Velez St. up to corner Mabini St. including portion of:  Macahambus St. from A. Velez St. and Tiano Bros. St. from Macahambus St.
B. Interruption Time:	Maximum of one hour starting at 7:00 AM & again a maximum of one hour starting at 5:00 PM
Affected Areas:	CARMEN FEEDER #1 (13.8-KV): 1.    Greater portion of Carmen proper along Lirio St. from Trinity Tree St. towards Oak St., Max Suniel St., Vamenta Blvd. up to corner Jasmin St. including Waterlily St. and Carmen Market area. 2.    Along Mabolo St. from Lirio St. towards corner Rosal St. including portion of Marigold St. from Mabolo St. 3.    Portion of Carmen: vicinities along Vamenta Blvd. from Fernandez St. towards greater part of Ilaya including: portions of Ipil St. and Mahogany St. from Fernandez St.; Madonna & Child Hospital; and; Seriña St. from COA towards Gumamela Ext., Guani Coliseum (former O. Roa’s) and Maharlika Police Station. 4.    All of Macanhan, Carmen towards all of Lower Balulang. CARMEN FEEDER #2 (13.8-KV): 1.    Portion of Carmen along Yacal St. towards Lirio St., Vamenta Blvd., Waling-waling St. up to GSIS area including Ferrabrel St., Mango St. and portion of Rosal St. and Marigold St. 2.    All of Kauswagan proper, Bonbon and Bayabas.

Power will however be restored immediately without notice when Line 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.

URGENT! Petroleum Products Price-freeze Resolution

RESOLUTION #2012-003

A JOINT RESOLUTION REQUESTING PETROLEUM DEALERS AND RESELLERS TO FREEZE THE PRICES OF PETROLEUM PRODUCTS TO THEIR DECEMBER 16 LEVELS FOR AREAS DEVASTATED BY TYPHOON SENDONG AND ARE DECLARED UNDER STATE OF CALAMITY

WHEREAS, Cagayan de Oro City and its influence areas are badly hit by Typhoon Sendong affecting more than 50,000 families and totally damaging *11,382 houses while 26,011 houses are partially damaged;

WHEREAS, President Benigno S. Aquino, per Proclamation No. 303 dated Dec. 20, 2011 declared Cagayan de Oro, Iligan City in Region X and Regions VII, IX, XI, and CARAGA under a State of National Calamity;

WHEREAS, DOE Undersecretary Jose Layug, Jr. during a Stakeholders Forum on the Downstream Oil Deregulation Law held in Cagayan de Oro City last January 5 announced that DOE directed petroleum companies to freeze the prices of related products to their December 16 levels due to Typhoon Sendong;

WHEREAS, reports had it that local petroleum dealers and resellers are implementing consecutive price increases;

WHEREAS, the quick recovery of Sendong-affected areas as well as the respective residents thereof requires the full support and cooperation of everyone;

WHEREFORE, the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (OROCHAMBER), Misamis Oriental Filipino-Chinese Chamber of Commerce and Industry (MOFCCCI), Promote CDO Foundation and Philexport10A are appealing to local petroleum dealers and resellers to freeze the prices of petroleum products at December 16 levels up until the lifting of the State of Calamity status.

RESOLVED FURTHER that ORO CHAMBER, MOFCCCI, PROMOTE CDO and PHILEXPORT10A will monitor the strict compliance of DOE’s order among petroleum companies in the area;

RESOLVED FINALLY that a copy of this resolution be furnished to Hon. DOE Secretary Jose Rene Almendras, Hon. Mayor Vicente Y. Emano, Hon. Congressmen Rufus Rodriguez, Hon. Maximo Rodriguez, Jr., the Regional Development Council in Region X, City Council through Chairman Hon. President Elipe and the Petroleum Dealers Association in the City and Region.

DRRMC alerts public against La Niña

PIA Press Release

Tuesday, January 17, 2012

DRRMC alerts public against La Niña

by Elaine O. Ratunil

CAGAYAN DE ORO CITY, Jan. 17 (PIA) – The Regional Disaster Risk Reduction and Management Council (RDRRMC), Northern Mindanao, has called on all the local DRRMC’s to undertake precautionary measures in their areas of responsibility (AOR) against the likely occurrence of floods and rain-induced landslides in hazard prone areas.

This, after the National DRRMC, has issued La Niña Advisory No. 3, on January 16, 2011, to inform and warn communities to take proactive actions to aim for zero casualties and avoid loss of lives and properties that may result from this phenomenon.

The La Niña advisory issued talks about proactive actions which may take the form of evacuation rather than rescue or mitigation and prevention rather than response and rehabilitation, said Regional Director Ana C. Cañeda of the Office on Civil Defense (OCD), region 10.

The ongoing oceanic and atmosphere patterns in the equatorial Pacific reflect the continuation of a weak to moderate La Niña. The latest observations, combined with model forecasts, suggest that La Niña will be weaken and expected to dissipate between March and May. Its peak is likely this January.

Meanwhile, the weather systems that influenced the country’s climate during December were Northeast (NE) monsoon, ridge of High Pressure Area (LPA), tail end of the cold front, wind convergence, Low Pressure Area (LPA) and one tropical cyclone, said Cañeda.

Tropical Storm ‘Sendong’, on Dec. 15-18, ranked first for the top ten (10) 2011 Philippine destructive tropical cyclones with the most number of deaths totaling to 1,275 as reported of which cities of Cagayan de Oro and Iligan in region 10 suffer the most.

Climate pattern during the month was influenced by the on-going La Niña event enhancing rainfall distribution in most areas in the country.

By this January, slightly warmer than normal surface air temperatures are expected to affect the country. However, cold surge is expected over extreme northern Luzon. Predicted ranges of temperature for January will be 17oC to 33oC over the lowlands of Luzon, 11oC to 24oC over the mountainous areas of Luzon, 20oC to 31oC for Visayas, 22oC to 34oC over the lowlands of Mindanao and 17oC to 24oC over the mountainous areas of Mindanao.

Weather systems that will likely affect the country in January are NE monsoon, tail end of the cold front, LPA and ridge of HPA.

One tropical cyclone is likely to develop or enter the Philippine area of responsibility (PAR) during the month. Rainfall distribution in most areas of northern and central Luzon will likely above normal including the western section of Mindanao. Flooding, flashfloods and landslides are likely to happen in some affected areas, particularly over Visayas and Mindanao. The rest of the country is expected to have near normal rainfall condition. (PIA-10)

Membership Renewal Letter

January 10, 2012

Dear Fellow Oro Chamber Members,

In order for business to get back on its feet after the devastation made by typhoon Sendong, your Chamber-- the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (OROCHAMBER) is now moving forward in mobilizing private and government sector support for the much needed economic recovery , rehabilitation  and resettlement of affected families. 

For 2012, your Chamber intends to pursue four  major programs in response to city’s  rehabilitation programs : 

1. Business development  assistance to member SMEs thru various bridge financing schemes ,

Senior expert services, trade and market  linkages from local and foreign partner Chambers

Technical and management trainings , and most of all streamlining business processing of local permits and taxes;

1. Advocacy on corporate responsibility along environmental protection,  disaster preparedness,  and investment for additional  power generating facilities; 
2. Work with national, local  and international agencies in fast tracking the reconstruction of major infrastructure projects damaged by Typhoon Sendong such as river embankment/ flood control projects, repair/maintenance of bridges, repair of the water and electric distribution systems , and  most of all  installation of warning systems  and devices along the riverbanks. The need to  update the land use development  plan of the city is also very vital at this point in time. 
3. Campaign for private sector support in the planning , designing, and implementation of a comprehensive community development program on the relocation sites that will be established. 

In the succeeding months,  your  Chamber will be organizing several  dialogues with local authorities,  national government agencies ,  and international donor institutions   to jump start the necessary reforms and rehabilitation process. 

Against this backdrop, I would like to appeal for your cooperation and support by renewing your membership with the Oro Chamber and likewise to get involved in the various undertakings mentioned above. Your  renewed commitment will certainly go along away as we pull ourselves in rebuilding our beloved City .. 

Very truly yours,

Ma. Teresa R. Alegrio

President

Local gov’t grants break to businesses | BusinessWorld Online Edition

CAGAYAN DE ORO -- The city government has agreed to grant business chamber members adversely affected by tropical storm Sendong (international name: Washi) relief from unpaid real property penalties and surcharges.

This follows earlier meetings of a delegation from the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) with the city finance committee to follow up a letter request dated Jan. 11 to Mayor Vicente Y. Emano, through Councilor Simeon V. Licayan as chairman of the city ways and means committee, that requested the tax relief.

Among the measures requested through chamber president Ma. Teresa R. Alegrio were:

• deferment of new assessment fees provided in the new Revenue Code of Cagayan de Oro pertaining to the renewal of business permits for a year;

• application of the old assessment rates for affected micro, small and medium enterprises;

• condonation of penalties on all unpaid real estate taxes since the global crisis of 2007 up to the present; and

• extension of the processing of business permit renewal for another month.

“We had a successful final meeting with the city finance committee and essentially, all our requests were granted except for the extension of the business renewal period to February,” said chamber executive director Lordilie C. S. Enjambre in a memorandum to the board of trustees.

“Hence, payment of outstanding real property taxes from 2007-2011 can now be done less interests and surcharges until April 30, 2012 while the old business permit assessment rates will be applied to directly affected MSMEs (micro and small and medium enterprises),” she added.

Partial results of a survey conducted recently by Oro Chamber revealed that 57 member MSMEs were directly affected by Sendong with damage to equipment and structures amounting to P129.5 million while equipment losses in the manufacturing sector totaled P224 million.

Member companies in the hotel and restaurant sector also reported a 60% drop in income due to canceled functions and bookings, personnel and client fatalities, and shortage of electricity and water.

“The business sector is doing its best to provide relief assistance to all affected families including its own employees and workers,” read the chamber’s letter to the mayor.

“The road to economic recovery, however, may take some time and for this reason the Oro Chamber is appealing for your consideration on the subject requests,” it added.

The city treasurer’s office has requested the chamber to submit its list of affected MSMES by Jan. 16 as basis for collection.

The National Disaster Risk Reduction and Management Council, in a situationer report on the impact of Sendong as of 8 a.m. on Jan. 15, tallied the dead at 1,257, unchanged from the previous data, with 181 still missing since the calamity struck on Dec. 17, and over 6,000 injured. Damage has reached P1.456 billion, about two-thirds of which was in infrastructure and the rest in agriculture. The storm affected 13 provinces in eight regions in the Visayas and Mindanao, or more than 1.14 million persons. -- Michael D. Baños

URGENT MEMO TO MEMBERS RE TAX RELIEF REQUIREMENTS

QUICK SURVEY RE: TS SENDONG DAMAGES

KKI cites “Critical Collaboration” with Cepalco in bringing down power rates

CAGAYAN DE ORO CITY – The consumer group which successfully intervened with the local power utility’s application for rate adjustment with the Energy Regulatory Commission has cited the unprecedented level of cooperation with the government agency and the utility which resulted in lower power rates for consumers in the franchise area for the next four years.

“Our group wishes to commend the Cagayan Electric Power and Light Company (CEPALCO) and the Energy Regulatory Commission (ERC) for being patient with us and walking us through the Performance Based Regulation process of rate setting which resulted in an outcome to the satisfaction of all parties,” said Rene Michael D. Baños, president of Konsumanteng Kagay-anon, Inc., a locally based consumer advocacy group which led the civil society intervention in the utility’s application with the ERC for a rate adjustment under the Third Regulatory Period.

Under the final rates translation filed by CEPALCO with the ERC, electricity rates for all types of customer categories were reduced starting July 2011 with residential customers getting the biggest reduction at 17 centavos per kilowatt hours, followed by commercial (.13), streetlight (.05), 138kV bulk power (.04), industrial (.03), and 69kV bulk power (.01).

“To put this reduction in its proper context, consider how power consumers in other franchise areas under private utilities all had rate increases for their next regulatory period under PBR such as Meralco (Metro Manila), Davao Light and Power Co. (Davao City) and Visayan Electric Power Co. (VECO) in Cebu,” Mr. Baños said.

KKI’s satisfaction with the ERC decision and the outcome of the year long process of evaluating CEPALCO’s application was shared by the local utility.

“We would like to emphasize that the resulting reduction in CEPALCO’s Maximum Average Price (MAP), and the consequent reduction in customers’ electric bills, were expected results based on the normal regulatory process as provided in the Rules in Setting Distribution Wheeling Rates (RDWR),” Mrs. Consuelo G. Tion, CEPALCO President and Chief Operating Officer said in a letter addressed to KKI. “In fact, you will recall that this expected rate reduction was announced by one of our witnesses during the evidentiary hearings of this case at SEARSOLIN.”  

Mrs. Tion also said that one the positive attributes of PBR is it drives Distribution Utilities like CEPALCO to perform better.

“As envisioned in the PBR, better performance translates to lower cost. This is what exactly happened to CEPALCO. The company’s actual performance for the past Regulatory Years showed a certain level of improvement that will now allow the company to provide better electricity distribution service to its customers at a lower cost,” she added. “In short, CEPALCO’s customers are now reaping the benefits of the PBR as envisioned by the ERC.”

Mrs. Tion also cited the importance of KKI’s participation in the PBR rate setting process which increased consumers’ knowledge about PBR and the rate setting process.

“We would like to commend the Konsumanteng Kagay-anon, Inc. for its active participation in the said regulatory process,” Mrs. Tion wrote in her letter to KKI.  “Such active participation resulted to better understanding and appreciation of the rate making process which is one of the most complex processes in an electric distribution utility business.”

For its part, KKI acknowledged CEPALCO’s openness and readiness to accommodate the consumer group’s request while it went into a “learning curve” to know more about PBR and make its intervention with ERC on the case more substantial and relevant.

“I am happy there wasn’t an adversarial mind set between KKI and CEPALCO during the PBR process which I attribute to the ‘critical collaboration’ between the two parties to arrive at the best rates and programs which could best serve electricity consumers in the franchise area,” Mr. Baños said. “I believe we have set a precedent in putting our heads together to arrive at this mutually acceptable and satisfactory outcome for the next regulatory period. Hopefully, other intervenors and DUs can similarly benefit from our experience.” 

KKI also cited the key role played by its legal counsel Atty. Edison John A. Arriola, A.D. of Cebu City who conducted several briefings for the Ad Hoc Committee organized by KKI in cooperation with the City Council Committee on Energy chaired by Kag. President Elipe. Atty. Arriola was referred by the National Association of  Electricity Consumers for Reform (NASECORE) through its president Mr. Pete L. Ilagan.

KKI also hailed its following supporters and cooperators for their support in making the services of Atty. Arriola possible: Misamis Oriental Filipino-Chinese Chamber of Commerce and Industry, Inc. (MOFCCCII) through its president Mr. Roberto Ching; Rep. Jose Benjamin Benaldo (1^st District, CDO); Rep. Rufus B. Rodriguez (2^nd District, CDO); Rep. Maximo B. Rodriguez, Jr. (ABAMIN Party List), Cagayan de Oro Filipino Chinese Chamber of Commerce and Industry Inc. (CDOFCCCII) though Pres. Quinciano Lui and VP Henry Dy; Philippine Chinese Chamber of Commerce and Industry (PCCCI) through Pres. Ricky Go; Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) through Pres. Antonio Uy;  Cagayan de Oro Chamber of Industries (COCI) through Pres. Jerome R. Soldevilla; Phividec Industrial Estate-Misamis Oriental Industries Association through Pres./Engr. Augustus M. Adis, Rep. Yevgeny Vicente Emano (2^nd District, Misamis Oriental); the Cagayan de Oro Hotel and Restaurant Association (COHARA) through Pres. Nelia B. Lee; and the  Cagayan de Oro Travel and Tours Association through Pres. Rex J. Tapungot.

The following institutions and persons were also instrumental in assisting the Ad-Hoc Committee render technical, legal and financial opinions on the documents submitted by CEPALCO: Institute of Integrated Electrical Engineers of the Phils, Inc. (IIEE) Cagayan de Oro City Chapter through Engr. Madeleine Waga; Cagayan de Oro ICT Council through Ms. Stephanie P. Caragos and Mr. Agustin Rodano; the City Accounting Office through City Accountant Theresa Wilma Rugay; City Administrator’s Office through City Administrator Griscelda Joson; City Legal Office through City Legal Officer Maya Enteria and Atty. Reymond Villablanca; and City Planning and Development Office through CPDO Estrella Sagaral and Isidro Borja. and NASECORE Cagayan de Oro through Mr. Ramid P. Gualberto. (KKI Press Release)

Cagayan de Oro needs traffic engineer | Sun.Star

Cagayan de Oro needs traffic engineer | Sun.Star

ECONOMIC BRIEFING Invite

Dear Members,

 

BDO and the Money Market Association of the
Philippines (MART), an association of professional Money Market
Traders from the Head Office Treasury Departments of the most respected
unibanks, foreign banks, commercial, savings, development banks and
investment houses in the Philippines through your

Chamber -- the OROCHAMBER, are pleased to invite you to an

ECONOMIC BRIEFING on Nov. 10, 3:30 to 6:00 p.m. at the Mallberry Hotel. 

 

Mr. Jonathan Ravelas/BDO Chief Strategist and First Vice President-Treasury
Department will be the resource speaker.   He is a favorite interviewee among
business reporters, for both TV and the print media, for his fearless
views, witty remarks and contagious humor.

 

See you all by then!

 

SGD.

ANTONIO D. UY

President, OROCHAMBER

Philippine Markets: 25 October 2011

25 October 2011

USD/PhP:  43.137 - 0.130      PSEi:       4242.52 +  41.44

USD/JPY:   76.12        PFINC:           941.46  +   9.47

EUR/USD: 1.3933         BDO:        53.35   +    0.50

GBP/USD: 1.6008         BPI:        57.10   +    1.10

PDSTF3M: 1.6169         MBT:          68.00   +       0.60

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

Philippine stocks rise on optimism over Europe debt plan

(philstar.com) Updated October 25, 2011

MANILA (Xinhua) -- The Philippine stock market continued to rally for the

second time on Tuesday as investors remain positive that Europe is close to

finding a solution to its debt crisis.

The bellwether Philippine Stock Exchange index gained 0.98 percent or 41.44

points to 4,242.52. The broader all-share index was up by 0.51 percent or

15.31 points to 2,965.49.

Trading volume reached 4.8 billion shares worth 18.73 billion pesos (434.06

million U.S. dollars) with 93 stocks advancing, 54 declining, and 29

unchanged.

All six counters closed higher, led by the mining and oil sector which

rallied by 1.3 percent.

"All major equities markets were significantly higher (and) that may be

signaling that investors have calmed down with regards to worries of an

endemic financial meltdown in the Euro region," brokerage DBP-Daiwa

Securities, Inc. said.

Investors all over the world seem to be riding the positive mood stemming

out of a possible resolution of the Eurozone debt crisis.

Dow Jones industrial average index was up by 0.89 percent or 104 points.

Asian stocks were mostly trading in the green Tuesday.

Analyst Justino Calaycay of Accord Capital Equities Corp. said the way the

Philippine stock market has moved throughout Tuesday reflects investors'

confidence that Europe's leader will announce good news when they meet on

Wednesday afternoon.

"We do not expect a perfect solution that everyone will agree to, but by

and large, we are confident that what will come out will be reasonable and

acceptable enough to ease recession concerns," Calaycay said.

The analysts said another factor boosting the local stock market is the

upcoming release of third quarter corporate earnings.

"Bargain hunting could be another theme in the local market as investors

position ahead of the release of corporate earnings starting next week,"

DBP-Daiwa Securities, Inc. said.

Calaycay however added that while the Philippine shares will get an added

push from the corporate earnings, everything still hinges on Europe.

The analyst said a positive result from the region will draw investors to

bet on earnings more aggressively, while the opposite will push the markets

to opt for cash.

Stocks in the 30-company index closed higher. Among the most actively

traded issues were heavyweight Philippine Long Distance Telephone Co.,

Banco de Oro Unibank, Inc., and Ayala Land, Inc.

Philippines Posts Budget Deficit as Revenue Growth Slows

By Karl Lester M. Yap and Max Estayo

    Oct. 25 (Bloomberg) -- The Philippines posted a budget deficit in

September after a surplus in the previous month, as slowing revenue growth

offset a decline in government spending.

    The shortfall was 18.5 billion pesos ($428 million), compared with a

9.2 billion-peso surplus reported earlier for August, according to an

e-mailed government statement in Manila today. The nine-month gap was 52.99

billion pesos against a targeted 234.35 billion pesos, and compares with

259.79 billion pesos a year earlier.

    President Benigno Aquino unveiled a 72 billion-peso stimulus package

this month as a faltering global recovery prompted the Philippine

government to cut growth forecasts for this year and next. Asian nations

have shifted their focus to protecting their economies as a potential Greek

default and unemployment above 9 percent in the U.S. threaten to push the

world into another recession.

    “The government must speed up spending at a time when global

uncertainties threaten to hurt domestic growth,” Jonathan Ravelas, chief

market strategist at Banco de Oro Unibank Inc., the Philippines’ largest

lender, said before the report.

    The peso rose for a second day to 43.15 per dollar today, according to

Tullett Prebon Plc. The yield on benchmark five-year bonds due September

2016 fell 3 basis points to 4.8 percent, according to Tradition Financial

Services.

    The government narrowed its forecast for the budget deficit on Oct.

12, predicting the shortfall this year may be 2.6 percent of gross domestic

product, or about 260.6 billion pesos, from a previous estimate of 3

percent or about 300 billion pesos.

    From a year earlier, revenue in September climbed 13.5 percent, while

spending slid 0.6 percent.

BDO UNIBANK, INC.

Jonathan Ravelas

Chief Market Strategist

(632) 858-3145

Anton Lina

Junior Researcher

(632) 858-3001

Philippine Markets: 24 October 2011

24 October 2011

USD/PhP:  43.268 - 0.175      PSEi:       4201.08 +  34.48

USD/JPY:   76.16        PFINC:           931.99  +   3.77

EUR/USD: 1.3860         BDO:        52.85   +    1.05

GBP/USD: 1.5934         BPI:        56.00   -     0.05

PDSTF3M: 1.6808         MBT:          67.40       (no change)

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

Philippine Stocks: AgriNurture, ATR KimEng, DFNN, Metro Pacific

By Ian C. Sayson

    Oct. 24 (Bloomberg) -- Shares of the following had unusual moves in

Philippine trading. Stock symbols are in parentheses

and prices are as of the close in Manila.

    The Philippine Stock Exchange Index increased 0.8 percent to 4,201.08,

the first gain in three days.

    AgriNurture Inc. (ANI PM), a fruit and vegetable grower, increased 2.8

percent to 10.02 pesos, the sharpest gain since

Oct. 6. The company is planning three or four more acquisitions this year

to double sales, BusinessWorld reported, citing

Antonio Tiu, AgriNurture’s president. Tiu couldn’t be reached at his office

for comment.

    ATR KimEng Financial Corp. (ATRK PM) climbed 1.4 percent to 4.40

pesos, the highest close since Aug. 12, after saying Kim Eng Holdings Ltd.

will offer to buy the shares that it doesn’t own in the company.

    DFNN Inc. (DFNN PM), a provider of Internet-based stock market

investing services, decreased 5.7 percent to 6.65 pesos,

the sharpest loss since Sept. 26. The company said it’s in talks with

shareholder MAA International Assurance Ltd., which plans

to boost its stake in DFNN to close to 10 percent.

    MAA, which owns 571,000 shares of the company, isinterested in buying

additional primary shares through a so-called private placement, a

stock-exchange filing showed.

    Metro Pacific Investments Corp. (MPI PM), a unit of Hong Kong’s First

Pacific Co., advanced 1.7 percent to 3.05 pesos,

snapping four days of losses. Metro Pacific said it agreed to buy the

company that operates the Cardinal Santos Medical Center for 300 million

pesos ($6.9 million).

BDO UNIBANK, INC.

Jonathan Ravelas

Chief Market Strategist

(632) 858-3145

Anton Lina

Junior Researcher

(632) 858-3001