September 21, 2000 Thursday

Regional asian currency weakness which pushed the peso to breach the Php46/USD in early morning trade and the regional market’s worrisome drop (HangSeng was down 3% by mid-day) kept the Phisix southbound.  The broad market had 56 decliners against 22 gainers with all sectors except for the financial sector closing lower.  The financial index gained on the back of the slight gains registered by BKD, PNB and BPI.

Market turnover was relatively modest at Php704.4m from Php706.9m with foreign participation still on a net selling mode (1.42:1.0).  However, gross foreign selling declined from Php417m to Php258m with effective share to total market turnover reduced to 37% from 59% yesterday.  Net foreign selling went to TEL, MERB, SMCB, EBC and BKD.  Net foreign buying went to MBT, BPC and ALI.

Focus of trade activity (most active)  was on EBC, TEL, SMCB, MERB, MBT and BKD which altogether accounted for 71.1% of total market turnover.  EBC and TEL accounted for 32.2% and 12.8%, respectively.  Retail interest were relatively subdued but focus was on BKD (up 16%) which is favored given its pending Php2.0 cash dividend.  Major market movers were APC (down 17%), SGI (down 16%), APM (down 14%), JGS (down 9%) and GEI (down 8%).

Speculations are brewing that GFI’s will continue to press EBC’s search of a strategic partner to partially compensate to the likely delay in PNB’s privatization proceeds.   Weak order flows resulting to an effectively lower transaction turnover on GLO is taken as a confirmation that the desired PDR price is within the current price range (830-850).  SMPH dropped anew on competitive threats drawn from PriceSmart’s announcement  of  its target establishment of 10 membership shopping warehouses in the next five years.

PRICE SCAN:

PCOR– intraday low at 1.0 is an all-time record low
SGI – intraday low at 0.84 is an all-time record low

Price gap down were on ABS (45.0-44.50), APM (0.007-0.0065), ATN (3.0-2.80), ELI (0.28-0.27), FLI (1.44-1.40), GLOW (665.0-655.0), LTDI (31.0-30.50), TEL (795.0-790.0), UW (0.56-0.55), V (1.70-1.64)

Price gap up were on B (2.50-2.60), and BPC (3.70-3.80)

RECENT DEVELOPMENTS

Latitude Web (Pte.) Ltd. of Singapore, a unit of investment firm SilkRoute Holdings (Pte.) Ltd. of Hong Kong tycoon Richard Li, and the Gokongwei family have formed an Internet consulting and Web applications joint-venture firm. Latitude Web Philippines is 60 percent owned by Latitude and 40 percent by Summit Internet Investments, Web investment arm of JG Summit Holdings Inc.                 Company officials said Latitude Web Philippines would focus on business-to-business opportunities in the Philippines. Latitude chief executive Yue Tuck Wai said Latitude Web Philippines would be Latitude's second venture outside Singapore. The company has an existing joint venture in                Malaysia. Latitude Web Philippines chief executive JV Colayco said the company would have an initial capital of P12 million and expected to be profitable next year. Latitude boast of its technological expertise and international track record – its significant advantage over other Web developers.

Digital Telcommunication Phils., Inc (DGTL) or Digitel,, the telecommunications subsidiary of listed conglomerate JG Summit Holdings, Inc., is in the final stages of talks with a telecoms supplier for its planned cellular offering next year.  Speculations for the new partner includes Canadian firm Nortel Networks. Other foreign suppliers vying for the supply contract include Lucent and                   Motorola-Siemens. In lieu of the funding requirement, JGS is working on a supplier's credit to                  raise $250-million  which will cover the first phase of the cellular network rollout in the first two to three years.

House Speaker M. Villar confirms an exodus of co-authors on the proposed  bill creating the national oil exchange.

The Commission on Elections appealed to Congress to approve the amendatory bill on the political advertising ban.
 

September 20, 2000 Wednesday

News of the successful release of the French hostages that reached the Exchange prior to the session’s open, and the record overnight recovery (+3.7%) of the Nasdaq initiated some selective buying.  The Phisix surged to an intraday high of 1441.29 (up 16.96pts or 1% ) on share price recovery led by PLDT, MBT, EBC, FLI and MERB. The broad market closed with a positive bias with 56 gainers and 32 decliners.  Trade activity narrowly declined to Php707.5m (-6%) from Php754.8m the previous day.   Focus of trade interest was on TEL, SMCB, MBT, SLC, MERB, ALI, ABSP and SMPH which altogether accounted for 62.5% of total market turnover.

Buying activity was largely domestic-led with foreign participation still on a net selling mode (1.61:1),  which represented a worrisome 59% of total market turnover.  Net foreign selling went to SMCB, TEL, MERB, SMPH, PNB and ALI.

Expectations of an early resolution of the Mindanao crisis partly revived retail interest which flowed to BW (up 4%), EBC (up 2%), EBCW (up 4%), GEI (up 16.3%), PCIL (up 13%) and BELW (up 9%).

Bankard surged 48% at Php3.35 as investors see a significant yield (88% from the previous day’s closing price of Php2.26) given the announced  Php2.0 cash dividend.

Aggressive market sell-off continued on  ABS, PNB and ICT.  Foreign selling was relatively heavy for PNB (93%) and ICT (70%).

PRICE SCAN:

ICT – intraday low at 0.90 is an all-time record low
SMDC – intraday low at 0.64 is an all-time record low
PNB – intraday low at 38.0 is a 23-month record low

Price gap up were on AJO (1.14-1.18), BEL (0.94-0.96), BELW (0.11-0.115), BPC (3.65-3.75), ELI (0.27-0.28), FER (0.96-0.97), FLI (1.36-1.38), FPH (24.25-24.50), GEI (0.43-0.45), ION (13.0-13.25), LTDI (30.0-31.0), MEG (0.78-0.79), MUSX (4.75-4.90), PCOR (1.02-1.06), TEL (780-785), BKD (2.26-2.60), PCIL (1.20-1.26), V (1.62-1.64), and CMP (0.215-0.22).

Price gap down were on ABS (46.0-45.0), ABSP (46.0-45.5), GLO (850.0-845.0), DMC (0.47-0.43), PNB (40.0-39.50), and SMDC (0.76-0.64).

RECENT DEVELOPMENTS

Bankard, Inc. (BKD) informed the Exchange that the Board of Directors, in its regular meeting held on September 19, 2000, approved the following matters: (1). declaration of cash dividend of P2.00 per share to all  stockholders of record as of 02 October 2000 and payable on 12 October 2000

Island Mining and Industrial Corporation (IS) informed the Exchange that the Securities and Exchange Commission (SEC) approved on September 11, 2000 its Amended Articles of Incorporation, reflecting the following: a) change in corporate name to Island Information & Technology Inc., b) change in primary purpose from Mining to Intensive Internet Technology and Telecommunications Business, c) denial of any pre-emptive right or privilege to subscribe to any and all new issue of shares of any class.
The Exchange’s computer system will reflect the change on Friday, September 22, 2000.

September 19, 2000 Tuesday

Regional market weakness (Dow – down 1.1%, Nasdaq – down 2.8%), the further rise in domestic benchmark interest rates, and overall cautiousness due to the ongoing Military offensive in Mindanao sent the Phisix southbound right from opening.  The broad market had 74 decliners against 11 gainers, while index constituents had 22 decliners against 4 gainers.  Among index-linked constituents, only AC, EBC, DMC and PLTL closed higher.

Trade activity increased to Php754.8m from Php564m (ex-PLDT cross) with foreign participation continuing to reflect a net selling (1.66:1).   Net foreign selling went to MERB, TEL, SMCB, and SMPH.  Focus of trade activity (most active) was on GLO, TEL, MERB, ABSP, SMPH, and SMCB which altogether accounted for 64% of total market value turnover.  Major decliners among the index-linked basket were CMP (down 8%), FLI (down 8%), ICT (down 7%) and PCOR (down 6%).  Sell-off on CMP and FLI were largely attributed to the country’s rising interest rate environ.  Huge foreign sell flows went to  ICT, with the market still concerned towards its costly dollar denominated debts.  PCOR continues to set new record lows on renewed global oil price increase which is feared to further increase net losses given to its incapacity to recover procurement costs.

Trader’s notes worth considering includes:  a) a trading buy interest as net foreign buying emerged on AC, MBT and MUSX., b) a trading interest for GFI’s core holding issues (ALI, AC, SMPH) on expectation of the GFI’s renewed participation once the Mindanao offensive favorably end, and c) a trading sell on GLO as domestic institution’s appetite of GLO ahead of the PDR offering have been completed.

The government is studying all legal options on PNB if Lucio Tan backs out of its winning bid. Speculations for the pull-out includes a) higher cost charged for its LC ,b) regulatory dismay as SEC may not exempt the group from the tender offer rule, and c) newfound risks which makes the Php600m a logical loss to accept.

MARKET HIGHLIGHTS

PRICE SCAN:

PCOR – intraday low at 1.02 is an all-time record low
ICT – intraday low at 0.91 is an all-time record low
RFM – intraday low at 1.60 is an all-time record low
JGS – intraday low at 2.10 is a 21-month record low

Price gap down were on ABS (47.0-46.5), AJO (1.20-1.18), BEL (0.96-0.94), BPC (3.80-3.75), EBCW (5.10-5.0), FLI (1.48-1.46), GLO (865-850), GLOW (690-670), ION (13.25-13.0), LTDI (31.50-31.0), MEG (0.79-0.78), MERB (56.50-56.0), MPC (0.55-0.54), PCOR (1.08-1.06), SGI (1.0-0.99), UW (0.58-0.55)

RECENT DEVELOPMENTS

Globe Telecom, Inc. (GLO) informed the Exchange that it signed a US$ 280mMillion term loan facility to finance the further expansion of is cellular mobile telephone system.  The facility will finance the acquisition of additional switches, cellsite equipment and prepaid platform capacity from Nokia Networks Oy, Nokia Australia plc, and Ericsson Telecommunications, Inc

RFM Corporation affiliate (36%) - PSi Technologies Holdings, Inc. (NASDAQ: PSIT) announced that manufacturing operations have begun in their second facility at Carmelray Industrial Park in Calamba, Laguna. PSi Technologies is a focused independent semiconductor assembly and test service provider to the power semiconductor market.  The Company provides comprehensive package design, assembly and test services for power semiconductors used in telecommunications and networking systems, computers and computer peripherals, consumer electronics, electronic office equipment, automobile systems and industrial products. The new lines are expected to service the needs of five of PSi’s biggest customers: Philips Semiconductor, ST Microelectronics, ON Semiconductor, Power Innovations and International Rectifier. PSi Technologies’ shareholdings now valued at $70 million to $85 million, or about P3 billion to P4 billion. The new facility has been qualified to run four assembly and test manufacturing modules to package standard power semiconductor packages and small signal transistors. The facility has the capacity to assemble and test 324 million units of power packages on an annualized basis once capacity is fully installed and maximized.  This represents 22.5% of the enlarged capacity of PSi, which will amount to about 1.44 billion units on an annualized basis, with the full operation of the second plant in 2001. Additional plant capacity will come from a third plant the company 30%, the second plant with 20% already installed, and of this capacity 60% is now utilized and running product.  Full installation and operation of the plant is expected in January of 2001. The operation of this second plant assures us of the capacity we need to deliver our revenue targets for the year 2001.  It will account for up to 25% of our projected revenues for 2001. The Company claims that on an estimated maximum output of the second plant on a good mix of products can add about $25 million in revenue on an annualized basis.

Metropolitan Bank and Trust Company (MBT) confirmed news reports citing its planned consolidation of  its leasing and finance firms into Continental Orix Leasing and Finance (COLF). A senior executive of the bank said that after the consolidation, COLF, which is 50-percent owned by MBT, would end up owning 100 percent of PBC Leasing and 100 percent of First Metro Leasing and Finance Corp. These acquisitions would likely amount to about P300 million. Consolidated Orix Leasing and Finance Corporation ("COLF"), PBC Leasing and Finance Corporation and First Metro Leasing and Finance Corporation will be merged with COLF as the surviving corporation.

San Miguel Corporation again confirmed plans to acquire new businesses but none are at stage where a definitive disclosure can be made.  Also, SMC announced it is currently studying SC’s decision requiring the Company to pay dividends amounting to Php300m prior to the Company’s move to take proper legal steps.  The SC ordered SMC to pay levy fund dividends to the government worth at least Php300 million in cash dividends on the 26.45 million shares allegedly bought out of the coco levy funds.  The Supreme Court ruled that SMC’s convertion of  the sequestered common stocks to treasury shares in 1991 was illegal and compelled SMC to return the stock certificates and declare cash dividends accruing on the shares since 1986.

Senate President F. Drilon announced to the ECC that there will be no new taxes imposed this year.  This is a relief to SMC, LTDI and CBC given speculations towards new excise taxes on liquor and softdrinks.

First Philippine Holdings Corporation (FPH) clarified to the Exchange that news reports of the Company’s plan to put up a new subsidiary to bid for the power generation assets of state-owned National Power Corporation is still very preliminary.  News reports cited FPH’s strategic investors will be invited to acquire up to a 40 percent stake in the proposed new company while FPH’s unit First Generation Holdings Corporation will take up the remaining 60 percent stake.

House Speaker M. Villar is reconsidering a review of the proposed National Oil Exchange Corporation (NOEC).  Congress and Senate supporters has since dwindled since its prime objective of lowering the effective oil pump price remains uncertain.  Petron, together with Shell and Caltex, are therefore expected to push for tariff reductions to reduce effective oil resale price.

September 18, 2000 Monday

Foreign selling continued anew with added market cautiousness reeling from the regional market weakness (Dow- down 1.5%, Nasdaq – down 2%, and HSI – down 4% around mid-day) and the weekend offensive by the National Government against the Mindanao terrorists.  Foreign selling went to MERB, SMPH, SMCB, AC, HI and ALI.

Market turnover rose to Php14.84b on account of a Php14.28b (or 96.2% of total) transaction cross on PLDT given the SEC’s approval of the transfer of  PLDT ownership from MPC and MALHI  to MPRI at Php900/share.  Excluding the PLDT transaction cross, market value turnover was modestly low at Php565m (from Friday’s Php585m). Foreign participation remains on a net selling mode (1.64:1) with its gross selling amount at Php316m,  representing 56% of total market turnover.  Lingering bearish sentiment resulted to 48 losers  and 22 gainers on the broad market, while index constituents had 15 decliners against merely 3 gainers – namely ABS, MBT and LC.

Focus of trade activity (most active excluding the PLDT cross sale) was on MERB, SMPH, SLC, TEL, MBT, SMCB and ION. Top decliners among index constituents were PNB (down 8.1%), FDC (down 5.3%), PLTL (down 5.3%) and DGTL (down 5.1%).  Other actively traded top decliners were BELW (down 11.5%), GEI (down 8.2%), PNB (down 8%) and BW (down 7.1%).  Retail investor participation remains relatively subdued with noted sell-off in BW, GEI, and BELW.

PNB dropped to a record low at 39.50 on news reports citing Lucio Tan’s likely default in its program payment of Php5.6b.  The news remains unconfirmed.

MPC fell to a 4month low on news that two condo locators at FBDC are offering units at a sell price Php60,000-100,000 per sqm, which is relatively at cost.

PRICE SCAN:

FDC – dropped to an all-time record low at 1.08
PNB – intraday low at 39.50 is a 23month record low
MPC – dropped to a 16week record low at 0.54
SMPH – intraday low at 4.60 is a 15week record low
PCOR – intraday low at 1.06 is an all-time record low
ION – intraday low at 13.0 is a 24 –trading day record low

Price gap down were on BELW (0.13-0.125), FER (0.99-0.97), GLO (875.0-870.0), ICT (1.04-1.02), MUSX (4.85-4.80), PLTL (0.76-0.75), SPI (8.70-8.60) and WPI (0.50-0.49).

RECENT DEVELOPMENTS

Ayala Corporation denied news reports citing continued negotiations between SMC and AC for the former’s purchase of AC’s meat processing subsidiary – Purefoods Corporation.  AC clarified that it has not received any proposal or bid from SMC.

RFM Corporation denied news reports that hinted of the possible sale of its banking subsidiary – Consumer Savings Bank.

Senate to facilitate its proposed version lifting the political ad ban which the Lower House has already passed.  The urgency stems from inquiries and protests against the personal ad of Speaker M. Villar.  ABS-CBN is widely expected to benefit from the lifting of the political ad ban .

Philex Mining Corporation (PX) informed the Exchange that its 81.8%-owned subsidiary, Philex Gold, Inc., a Canadian company,  with ongoing exploration in Surigao del Norte has encountered significant porphyry copper-gold mineralization at the Boyungan Prospect.

Meralco announced it will participate in the planned 35MW Batangas Cogen project.

The National Government revised its budget deficit target from Php62.5b to Php90b.  NG is hopeful that the new target is acceptable with the IMF.

September 15, 2000 Friday

Friday trade session saw share prices generally sideways on lower trade activity whilst a continued net foreign selling.  Market turnover dropped to its 9day low at Php585m with foreign participation still on a net selling mode (1.8:1).  Modest buying activity came from observed repositioning of noted government financial institutions (GFIs) which was relatively inactive the previous days.

Investors saw no incentive to counter the net foreign selling tact as sentiment remain bearish amid the peso’s decline, higher interest rates, and the Mindanao hostage crisis as its focal action point.  The bearish investment climate however saw a mixed turnout with 36 gainers and 34 decliners on the broad market, while index constituents had 13 gainers and 10 decliners.  The relatively peaceful turnout of street protests with today’s oil depot barricade, and the marginal  firmness of the peso (average of Php45.61/USD in morning trade from yesterday’s average of Php45.79/USD) partly eased market wariness.

Net foreign selling went to SMCB, TEL, ALI, EBC, SMPH, AC, FPH and MERB.  Heavy concentration of foreign selling  (percentage of total value turnover for the stock) were on SMCB (87%), SMPH (76%), ALI (64%) and FPH (60%).  Focus of trade activity (most active) was on TEL, SMCB, GLO, EBC, MBT, MERB, and AC which altogether accounted for 53.8% of total market turnover. Top gainers among index constituents were ICT (up 6%), CMP (up 4.5%), LCB (up 3.5%) and BPC (up 2.7%).  Actively traded top decliners were OM (down 13%), CMT (down 8%), PLTL (down 6%) and PCOR (down 5%).  Retail interest were relatively subdued and focused on BW (up 4%), OMW (unchanged), PCOR (down 5%), and GEI (down 2%).

Traders notes worthy to consider:  1) SMCB – strong domestic buying support as its share price stayed unchanged at Php50 despite 87% of its turnover were foreign selling; 2) ICT – gained 6% coming from an all-time record low yesterday and with a net foreign buying (29%); ALI – with new foreign sell order flows with late trading sell-down; MERB – it is unusual to see the price of its A-share (Php58) closing higher than its B-shares (Php58.0); foreign sell orders are marginal at its current share price; AC -  significant increase in local GFI participation on the buy side.

Next week, the market’s bearish momentum will continue but it is not likely to drop at the same rate last week.  The past week’s downturn (103pts to its low set at 1439) placed the index at oversold status awaiting for reversal signals.  Although market sentiment remains weak, we are hopeful for improvement which may come from:  a) a more aggressive BSP policy on the peso’s defense contrary to its tentativeness exhibited this week, b) marginal increase in key rates but is deemed reasonable and discounted, and c) possibly clearer and improved policy directions towards oil pricing, the hostage crisis, and new benchmarks set by the ECC ahead of the IMF review this October.  The index is dropping towards a critical turning point, either it gradually bottom out or we find a severe free-fall (which current sentiment does not justify).  With a perspective that 1378 is an established bottom, we are bias to see the index gradually bottom-out with 1478-1490 as the immediate near-term upside test.   Next immediate support is pegged at 1428 and 1405.

Some key corporate developments next week includes: a) the finalization of UW’s rehab plan, b) release of  proposed valuation on SLT prior to the backdoor listing of philstar.com, c) Globe’s PDR briefing, and d) FBCD’s decision on MPC and SMIC’s bid.

PRICE SCAN:

PCOR – intraday low at 1.08 is an all-time record low
MBT – intraday low at 167 is a 14day low
AEV – low at 1.46 is a 24 day low
ION – low at 13.75 is an 18day low

Price gap up were on UW (0.56-0.58), MUSX (4.75-4.80), MPC (0.56-0.57), ATN (2.90-3.0), B (2.50-2.60), BEL (0.95-0.96), BPC (3.70-3.75), MEG (0.78-0.79), MERB (57.0-57.50)

Price gap down were  on ELI (0.30-0.29), GLO (880.0-875.0), ION (14.0-13.75), PHI (0.81-0.80)

RECENT DEVELOPMENTS

Global Equities Inc. (GEI) reported that the ownership structure of the Company after the issuance of shares to the principal shareholders of SSI Group of Companies and STI is as follows: a) existing GEI shareholders – 8% or 200,000,000 shares,  b) warrants – 16% or 400,000,000 shares, c) SSI/STI shareholders – 33.2% or 830,000,000 shares, and d) private Placements – 42.8% or 1.07b shares

Petron Corporation (PCOR) informed the Exchange that the US$120 Million 3-year Term Loan Facility Agreement with the Company as Borrower, Chase Manhattan Asia Ltd., Citicorp International Ltd., ING Barings, Asia Limited (as agent for ING Bank N.V.), and Saudi American Bank as Coordinating Arrangers, Chase Manhattan Bank as Agent and Norddeutsche Landesbank Gironzentrale, Singapore Branch, as Lending Bank was signed on September 14, 2000.

Selecta Dairy Products, Inc. (SLT) informed the Exchange that the Company will hold its Special Stockholders’ Meeting on 28 September 2000 at 11 a.m. at the Auditorium, RFM Corporate Centre, Pioneer corner Sheridan Streets, Mandaluyong City.  Stockholders of record as of 21 August 2000 shall be entitled to vote at said meeting.  Among the agenda includes an amendment of Articles of Incorporation to change its business from ice cream manufacturing to electronic commerce, a proposed change of name to Philstar.com, Inc., and an increase in the number of directors to nine (9)

EEI Corporation’s 100%  subsidiary - Philrock, Inc. announced the approval by its Board of Directors to increase its authorized capital stock from P200 million to P500 million. EEI Corporation infused P282.6 million in Philrock ahead of the targeted entry of strategic investors.  Philrock is one of the established construction firm likely to benefit from the planned redevelopment in Mindanao.

Philippine Seven Corporation (SEVN) advised the Exchange that the Company has been informed by certain shareholders of the interest of a foreign group to acquire from them shares of SEVN.  The shareholders are considering the interest depending on a more definite structure that maybe presented.  Although the discussion is with the shareholders rather than the Company, SEVN has been requested to submit the information for purposes of disclosure.

Details of the BW Resource Corporation’s (BW) stock rights offering and warrants issue:
Number of Rights Shares - 3.5M to 4.2B
Entitlement of Rights Offer/ Offer Ratio - still to be determined by the Board
Offer Price - P1.00 to P1.20
Number of Warrants - still to be determined by the Board
Entitlement to Warrants - all subscribers to the rights shares
Offer Price - Free (detachable warrant for every rights shares)
Exercise Price (range) - same price as rights shares
Conversion Ratio - still to be determined by the Board
Exercise Period - still to be determined by the Board

September 14, 2000 Thursday

The Phisix tumbled to a 6week low on worsening ecopolitical fears.  The peso dropped  to a record 32-month low against the US dollar and  fears of ecopolitical damages from the planned transport strike and the blockade by militant groups of the oil depot tomorrow.  These developments added to the overhang from the confidence crisis reeling from the prolonged Mindanao hostage crisis, fiscal deficit concerns, inflation pressures, which altogether hints of further  business difficulties.

The peso fell to a record low of Php45.95/USD in the morning session given BSP’s non-participation to curb the peso’s fall.  News wires cited BSP Governor’s comments that BSP is merely saying in the sidelines – a tactical reversal from its active participation early this week.

The country’s unemployment rate surpassed general expectations at 11% last July, a concrete signal that will further erode the already disappointingly low private consumption.

Notable increase in foreign sell-off’s the past days heightened further, with gross foreign selling outpacing gross foreign buying at a ratio of 2.12:1 and on a record net gross foreign selling of Php332.8m. Net foreign selling aggressively went to TEL, MERB, SMCB, EBC and AC.

The phisix  headed south from open, dropping as much as 3% (1439.07) before a late bargain-hunting towards the session’s close.  The broad sell-off had all sectors declining with 78 decliners against 13 gainers in the broad market.  Index-linked issues had 27 decliners against merely one gainer, namely – PNB (up 3%).  Focus of trade activity (most active) was on TEL, GLO, AC, MERB, SMCB and BW. TEL and GLO again accounted for a commanding 23.6% and 21.2%, respectively of total market value turnover. Top decliners among index constituents were JGS (down 9.4%), LND (down 8.2%), PCOR (down 8.1%) and PLTL (down 8%).  Contrary to yesterday’s top issues with recorded foreign selling , URC and PNB was spared.

Another  block sale of 50,000 shares of JFC was transacted at Php19 by a local house.

PRICE SCAN:

JGS – intraday low at 2.38 is an all-time record low
PCOR – intraday low at 1.12 is an all-time record low
ICT –  intraday low at 0.97 is an all-time record low
ABS – intraday low at 45 is a 6week record low
MERB – closing price at 57 is a 6week record low
ALI – intraday low at 4.75 is an 18week record low

Price gap down were on ABS (46.0-45.5), AJO (1.20-1.18), ALI (4.90-4.85), ALI (4.90-4.85), APM (0.0075-0.0070), B (2.70-2.50), BEL (0.97-0.96), BPC (3.95-3.90), FPH (28.50-27.0), GLOW (695-690), JFC (12.25-12.0), LTDI (32.0-31.50), MER (60.0-58.50), MUSX (4.90-4.85), PCOR (1.24-1.22), PLTL (0.88-0.85), PSB (30.0-29.50), SGI (1.04-1.02), SMCB (51.0-50.), TEL (795-790), and V (1.78-1.74)

RECENT DEVELOPMENTS

RFM Corporation clarified to the Exchange that news reports citing the sale of PSI Technologies is one of the many options the Company has to hedge its maturing US$65m euroconvertibles.  Accordingly, RFM noted that it has already secured settlement of the US$65m through cash dividends from subsidiaries, new long-term debt facilities and short-term cash from other affiliates.

Globe Telecom, Inc. inked an Php835m lease agreement for 25 years via an Indefeasible Right to Use (IRU), the capacity of Bayan Telecommunications, Inc.’s (BayanTel) Nationwide Digital Transmission Network (NDTN). By deploying the NDTN, Globe will maintain its network reliability required by the services the Company offers.  The additional capacities will also support the current and the future expansion plans of Globe for its landline, wireless and data communications services, namely, Globelines, Globe Handyphone And GlobeData, respectively. The NDTN will definitely increase Globe’s total network capacity and will provide alternate transmission and route diversity to its existing transmission infrastructures.  Globe realizes a wise investment of exploring the capabilities of the NDTN because it is readily available for use.  It is a strategic network option that we have considered since NDTN is physically configured in a totally diversified route from current facilities. The NDTN has a transmission route distance of 2,762 km which will  further connects key regions across the country transcending the limitations of air, sea and difficult terrain.  It is composed of three segments: microwave radio, submarine fiber optic and land cable portions.

On other news, NTC wants Globe to give subscribers more than the Php300m worth of free airtime.

Omico Corporation’s petition for life extension for the warants  was granted an extension from August 17, 2000 to June 30, 2002. The trading of the warrants (OMW ) shall resume tomorrow, Friday, September 15, 2000.

Armstrong Holdings Incorporated  (AHI) informed the Exchange that the Securities and Exchange Commission approved on August 31, 2000 the change in its corporate name to Multitech Investments Corporation.  The change in name and its new trading symbol – MIC, will take effect on Monday, September 18, 2000.

September 13, Wednesday

Share prices edged lower on heightened foreign sell-off’s. There’s a growing regional theme to underweight on largely oil-dependent countries whose economic growth is largely vulnerable to the global oil price hike.  The weakness of the peso, strong inflationary pressures, and a damaging peace and order perception due to the Mindanao hostage crisis were more than enough reason seen to justify a sell-off until newfound confidence returns.  The scheduled release of 2Q fiscal deficit also added to overall wariness.  Net foreign participation increased ( up 32% to Php834m) with a marked net selling (1.75:1) of Php227m from Php174m yesterday.  Net foreign selling went to TEL, SMPH, MERB, URC, MBT and PNB.

Currency fears lingered anew as the peso fell to Php45.73/USD in early morning trade from yesterday’s close at Php45.60/USD on early indications BSP’s likely inactive participation.  The country’s 5year Tbond rate rose from 13.5% to 13.875%.

Share prices declined for 38 issues against 23 gainers on the broad market.  Among index-linked issues, there were 13 decliners against 4 gainers – namely TEL, MBT, ION, and FLI. Focus of trade activity (most active) was on GLO, TEL, BW, SMCB, SMPH, MERB and MBT.  GLO and TEL accounted for a commanding 31.4% and 23.8%, respectively of total market value turnover.   GLO reportedly acquired a 25year lease from Bayantel, which will expand its datahandling capacity.  Retail interest to third-liners went to BW (up 9%), and BEL (down 1%). Major index-linked decliners were CMT (down 10%), PNB (down 6.5%), CMP (down 4.2%), and MERB (down 4.1%).  An unusual heavy foreign selling (81% of total) fell on PNB, a significantly higher trade activity which sparked speculations that the Templeton Group may be behind the sell order ahead of the rights record date on September 15th.  Meanwhile, market speculations towards a partial and further delays in the rate hike petition of Meralco resulted to a sell mode.  Foreign participation was a net selling on MERB, representing 69% of total transaction.

A block sale worth Php149.99m on Pacemco Holdings Inc. (PHI) was transacted at Php0.5722.  The block sale represents the take over of a new group to transform its business related to e-commerce.

PRICE SCAN:

SMPH – closing price at 4.85 is a 29day record low
PNB – intraday low at 42.5 is a 6week record low; closing price at 43.0m is a 21month record low

Price gap down were on ATN (3.0-2.90), DMC B (2.75-2.70), BELW (0.135-0.130), and FPH (29.0-28.50)

Price gap up were on AHI (0.72-0.79), and BW (2.85-2.90)

RECENT DEVELOPMENTS

Philippine Realty and Holdings Corporation (RLT) has signed a Memorandum of Agreement with the shareholders of Synapse Networks, Inc. (SNI) whereby it agreed, by itself or in conjunction with other investors, to infuse up to P200 million for an 80% equity stake in SNI.  The project of SNI is the establishment of a Philippine Directory Services-Based Internet Protocol Backbone which is expected to lower the cost of access of Internet Service Provider (ISP) subscribers and businesses, provide faster access, allow accessibility of Internet service from any of the points of presence of the backbone, guarantee security of business transactions, and provide a high level of interoperability, thereby making e-commerce possible. The three main target markets of SNI are the ISPs, system integrators that cater to corporations with several office sites around the country, and government. Its technology partners are Novell, the world leader in directory services: Nortel Networks for the routers and switches. Compaq for the servers; and GRIC, the leader in Internet global roaming.

Petron Corporation (PCOR) implemented an across-the-board increase of 45 centavos per liter on local pump prices. However, Petron noted that the increase is merely a partial to its total under-recovery of P1.40 -  78 centavos in crude cost differential, 17 centavos in financing cost and 45 centavos in foreign exchange cost.  Further increases are expected since the under-recovery still does not consider the high crude prices in September (Dubai crude average at $30.34/barrel vs August average at  $27.00/barrel) and the peso depreciation (P45.45/US dollar from August average of P44.91/US dollar).

RFM is tinkering on the sale of  PSI technologies to settle its US$65m euroconvertible debt.

September 12, 2000 Tuesday

Share prices inched lower on hefty foreign selling with only the C-I sector posting some mild gains.  Foreign trade participation was a net selling (1.76:1.0) on gross selling transaction  accounting for 53% of total market value turnover.  Focus of foreign sell-off was on ALI, TEL, MBT, FPH and EBC.  Global markets were weak (Dow – down 25pts, Nasdaq -  down 82pts) with HK’s Hang Seng Index down 1.8% around mid-day.  Added market overhang comes from today’s expected increase in oil pump price (Php0.45-Php0.47), a new set of hostages in Mindanao, anticipated street protests,  and on fears that CB can easily reverse its defense of the peso.

The market’s broad weakness was less intense than the previous day marked by 43 decliners against 23 gainers across the board.  Sell-offs was more pronounced for index-linked issues with 12 decliners against merely 3 gainers.  Only, TEL, EBC and PCOR gained among the index-linked issues.  TEL inched higher as its NY price gained US$0.125 overnight and on increased preferential investment shift from its peer – Globe Telecoms, which  has already approximated its valuation.  EBC firmed on the likely sale of its thrift bank and on market expectation that the government’s stake in EBC is definitely under sale negotiation.  On the other hand, PCOR marginally recovered on improved cost recovery with today’s pump price adjustment.

Focus of trade activity (most active) was on ALI, TEL, BPC, BW, GLO, MBT and FPH.  ALI and TEL accounted for 14% and 13.8%, respectively of total market turnover.   Retail interest went to BW (up 18%), EBC (up 8%), EBCW (up 10%), and ION (down 7%).  Major index-linked decliners were DMC (down 8.5%), ION (down 7%), and SMPH (down 3.9%)

PRICE SCAN:

ION – set a 15day record low at 14.0
ICT – intraday low at 0.99 is a 3rd attempt to break its record low in 5weeks
ABSP – second consecutive gap down at 47.0-46.50

Price gap down were on ABSP (47.0-46.50), DMC (0.47-0.43), ION (15.0-14.75), MBT (173.0-172.0), SGI (1.04-1.02), SMPH (5.20-5.10), SPI (8.70-8.60), SBC (215.0-200.0), PEP (0.45-0.30), and NN (0.20-0.18)

Price gap up were on ATN (2.90-3.0), UW (0.59-0.60), and KPP (0.27-0.28)

RECENT DEVELOPMENTS

The SEC reported that an expanded list of brokers and investors will be included in its next BW Resources market investigation report that will be submitted to the Department of Justice next month.

PLDT’s mobile phone subsidiary, Smart Communications, is on its 2nd week of launching its sim swap program designed to get prepaid subscribers of Globe to shift.  Corporate officials of Smart and Globe have yet to report any progress.

A major business daily cited market concerns on RFM’s likely cash flow problems to settle its US$65m euroconvertible bond due to expire on May 30, 20001.  Industry watchers are anticipating a possible cash inflow in its negotiations with Philstar.com and on renewed interest to sell its poultry subsidiary – Swift Foods Inc.

September 11, 2000 Monday

The Phisix shed 1.46%, its biggest fall in the past 6weeks,  on compounded fears from the higher interest rates, the weak peso, an imminent oil price hike, global market weakness, and on a potential new hostage crisis in Mindanao.

Higher CB overnight rates and expectation of  a steady rise in Tbill rates sent a strong forward looking signal of higher cost of business.  Despite Friday’s active participation by the CB to curb the peso’s fall, the peso continued to inch higher to Php45.555/USD during the morning session from Friday’s close at Php45.495/USD. Select local oil retailers also hinted of a 6% to 14% oil price hike in the next few days despite the favorable decision by OPEC members to increase oil output.  Weak market sentiment followed the weakness in US (Dow – down 39pts, Nasdaq – down 120pts) with HK’s Hang Seng down 1.3% during the morning session. Around mid-trading session, additional wariness of a longer Mindanao crisis comes from news wire report of another abduction in Borneo with initial speculations that the prime suspects were the same Filipino terrorists.

Increased market fears were validated as the CB Governor confirmed a likely meeting of the country’s Economic Coordinating Council (ECC) to review key business indicators and fiscal/monetary policy. The Department of Trade and Industry (DTI) has also accepted price hike adjustments on select basic commodities.

Trade activity reached a record Php2.065b with GLO representing 55% of total market value turnover.  Sell-offs were broader with 65 decliners against 15 gainers with most market heavyweights closing lower. The expected profit-taking mode was largely foreign-led on a gross net selling of Php195m with a distinct 1.64 to 1 sell vs buy ratio.  Net foreign selling were  on TEL, MERB, FPH, MBT, SMC, EBC and ALI.  Net foreign buying went to GLO and AC.

Retail interest went to BW (down 14%), GEI (down 12%), and UW (down 5%).  These favored gainers the past week succumbed to profit taking due to the broad market sell-off.  PNB expectedly dropped further due to relative disinterest ahead of the rights offer.

Market talks on select active issues are as follows:  Meralco – potential rate hike adjustment may not be granted in full amid widespread inflation pressures; BW – the rumored cancellation of the proposed rights offer is pegged on further success to clinch  higher  financial/equity from the targeted investor; MBT – there’s no real aggressiveness in its search for a foreign partner given the market’s current valuation; SMC – rumors cite reductions in revenue growth targets for 2H2000 and FY2001 due to the crisis; EBC – CB favors the sale of PCIB Savings bank to HSBC despite legal obstacles.

PRICE SCAN:

GLO – another historical record high set at 910
AHI – gap up at 0.74-0.79 for the second consecutive trading day

Price gap down were on ABSP (47.50-47.0), AJO (1.28-1.20), ATN (3.0-2.90), BELW (0.16-0.15), BPC (4.05-4.0), ELI (0.30-0.29), GEI (0.65-0.63), ICT (1.12-1.10), ION (15.25-15.0), LTDI (32.50-32.0), PNB (54.50-46.50), SMPH (5.30-5.20), TEL (795.0-780.0), V (1.90-1.88) and WPI (0.54-0.51).

RECENT DEVELOPMENTS

APC Group, Inc. (APC) and Vantage Equities, Inc. or iVantage (V) announced that iVantage has agreed to purchase E-Business Services, Inc. (formerly named Philcom Money Services, Inc.), a wholly owned subsidiary of APC Group, for Php200m.  E-Business Services, Inc. is the biggest direct agent of Western Union Money Transfer in the Philippines and in all of Asia. Vantage believes that the acquisition of an electronic money transfer service complements its internet business and facilitates the fulfillment of e-commerce transactions.  Its strong technology orientation will enable E-Business to branch out to new tech-based services compatible with electronically driven money transactions.

Southeast Asia Cement Holdings, Inc. (CMT) advised the Exchange that the SEC approved the Company's application to increase the number of directors from seven (7) to nine (9). The two new Directors are Mssrs. Duncan Gage and Jose Ernesto Rodriguez.

EEI Corporation subsidiary - Al Rushaid Construction Company,  was awarded two construction contracts worth US$60M in the Middle East.  These two contracts are additional projects from its three ongoing major projects, which now brings the total contract value to US$80m – a strong signal of EEI’s globally-competitive construction expertise. EEI has registered consolidated orders and constructs totaling Php3.8 billion in the first semester, higher than the P3.7 billion recorded for the whole year of 1999.  Consolidated revenues reached P2.04 billion for the first half of the year.

First Philippine Holdings Corporation (FPH) has executed a subscription agreement with First Gas Holdings Corporation (FGHC) and BG Consolidated Holdings (Philippines), Inc. Under the Agreement, FPHC is subscribing to 309,174 redeemable shares in FGHC for a total subscription price of Php3.09b. BG is, in turn, subscribing to 240,000 redeemable shares in FGHC for a total subscription price of Php2.4b.

Equitable PCI Bank confirmed that it is in the advanced stage of its discussion with HSBC Holdings for the sale of one of its thrift bank subsidiaries. However, the deal is under review by the Bangko Sentral ng Pilipinas which is concerned that it will violate certain regulations since HSBC holds a foreign bank license while the buyer is the mother company.

Global Equities, Inc. (GEI) approved the following in the stockholders meeting:

a. the stock rights offering of at least Php200m, an issuance of detachable warrants at a ratio of 1:2, or a maximum of four hundred million (400,000,000) common shares, to GEI shareholders as of the date the capital writedown is approved by the SEC and other government regulatory agencies.  The warrants to be issued are free and can be exercised after one (1) year but not more than five (5) years from the date of its issue with an exercise price of P1.00 per share.
b. the change in the increase of the authorized capital stock of the Company after the capital writedown to Php2.5b instead of Php2b
c. the transfer of substantially all the assets and all the liabilities of the Company to a wholly-owned
subsidiary (”NewCo”) of the Global Equities Inc.;
d. the decrease in the authorized capital stock of the Company from Php3.5b to Php800m and the consequent reduction of its subscribed and paid-up capital from Php1,961,637,701 to Php200m.
e. the distribution of NewCo shares to the shareholders of the Company;
f. the amendment of the Company’s name to Global Systems, Inc.
g. the increase in the authorized capital of the Company stock from Php800m to Php2.5b to enable the
Company to do the following: (1) issue detachable warrants at a ratio of 1:2 corresponding to 400 Million commons shares, (2) issue GEI shares to the group of Messrs. Augusto Lagman, Edgar Sarte, Herman Gamboa, Roberto Romulo et al. in exchange for 100% of their holdings in Systems Standards Inc. (SSI) and their holdings in Systems Technology Inc. (STI) which constitute at least 60% of the outstanding authorized capital stock of STI and (3) accept private placements from investors to raise the necessary cash to finance the working capital requirements of the Company;

Ms. Nora A. Bitong remains to be the Chairman and president of GEI (Global Systems Inc.).

Kuok Philippine Properties, Inc.'s (KPP) wholly-owned subsidiary, Ideal Sites and Properties, Inc. ("Ideal") finalized agreement with Travel Aim Investment B.V., a company incorporated under the laws of The Netherlands ("Travel Aim") for the sale and purchase of up to 420,502,000 Philippine Deposit Receipts (PDRs) to be issued by Ideal. The common shares in Edsa Properties Holdings Inc., owned by Ideal shall serve as the underlying shares of the PDRs. Travel Aim is a wholly-owned subsidiary of Kerry Properties Limited ("KPL"). Both KPP and KPL are members of the Kuok Group.

September 8, 2000 Friday

PLDT once again led select heavyweights to brace the overall tentativeness reeling among investors with the global oil price hike in focus.  PLDT closed Php10 higher at Php795, marginal gain but enough (3pts to the index) to keep the Phisix sideways.  The Phisix narrowly moved at today’s range of +6.06/-0.23.  Adding to the market’s partial relief is CB’s active participation to curb the peso’s fall and the expected release of additional hostages in Mindanao.

Late during the trade session, CB Governor R. Buenaventura announced that key overnight lending rates have been increased by 1 percent from 12.25% to 13.25%, with borrowing rates adjusted accordingly to 11%.   The Peso marginally moved to a morning high at Php45.65/USD on reduced trade activity with CB’s renewed participation.

Share prices were generally mixed with 41 decliners and 35 gainers, while index-linked components had 10 gainers and 8 decliners.  Trade turnover marginally declined to Php935m with GLO still leading the actively traded stocks.   Contrary to yesterday’s net foreign selling (1.51:1) on gross amount of Php687m, foreign participation today was net buying (1.15:1) on gross amount of Php195m.  This reflects a reduced foreign participation of 24% of total transaction from 32% yesterday.

Focus of trade activity (most active stocks) excluding GLO was on MBT, TEL, BW, MERB and ALI. Major index gainers were DMC (up 6.8%), DGTL (up 6.3%), PLTL (up 2.3%), and JFC (up 2.1%). Retail investor action was on BW (up 32%), GEI (up 7%), FPH (down 2%), TDY (up 5%), AGI (unchanged) and ION (up 2%).  Active non-index price movers were BW (up 32%), FER (up 7.6%), DMC (up 6.8%), and GEI (up 7%). BW recovered for the second consecutive day on market talks that its planned rights offer (at Php1.10-1.20) will be postponed indefinitely.  BW’s gain spilled over to FER, the on-line bingo and casino franchise holder.   Renewed interest prevailed on GEI in its shift to IT business which was approved in today’s stockholder’s meeting.  GEI’s gain effectively attracted a shift away from another IT firm – WEB, which fell 4%.

Next week’s outlook is a likely continuation of the market’s imminent pullback.  It seems the hike in interest rates and the inflationary pressures may overcome the positive sentiment from the additional release of hostages in Mindanao and the aggressive stance by CB to curb the peso’s fall.  The positive impact derived from the improved economic data release the past week has not influenced renewed foreign buying this week, else, foreign participation declined and a sell mode on net basis resulted.  Such initial data draws further caution as trade interest was largely local-led on higher trade activity with the Phisix kept afloat by PLDT and GLOBE .  Funds flow will also be constrained for the next few weeks ahead of  rights offering (PNB, BEL,etc.) and the IPO next month of AAI.  Hope for the Phisix support can come from MBT, PNB, MERB and SMC, which has a pertinently better risk-reward scenario.

Technical direction still offers immediate price support at 1510 with 1584/1455 as the next support levels.  The Phisix gained additional signals for the pullback with the break of its uptrend and a clear momentum decline.

PRICE SCAN:

AHI – gap up at 0.70-0.74, AJO – gap up at 1.24-1.26, BW – gap up at 2.24-2.26, EBC – gap up at 69.0-69.50, FER – gap up at 1.06-1.08, ION – gap up at 15.0-15.25, LTDI – gap up at 32.0-32.5, PLTL – gap up at 0.86-0.87, and V – gap up at 1.92-1.94.

Price gap down were on ABS (48.0-47.0), BEL (1.0-0.99), PNB (53.0-52.50), SGI (1.06-1.08), TEL (785.0-790.0), and WEB (0.12-0.115).

RECENT DEVELOPMENTS

BW Resources 1Q2000 reported a net loss of Php3.05m in 2Q2000 for a cumulative 1H2000 net loss at Php5.96m.  In its official report to the SEC and PSE, BW is currently undergoing total reposition and review of its strategic activities on its targeted core activities in the field of Information Technology, Real Estate and Gaming and Leisure.  BW is exploring with new groups of investors for investment and cooperation in property, gaming and entertainment, information and technology and financial services.  Most recent report includes new efforts towards prospective partnership into tourism-related projects.

Baguio Gold Holdings Corporation’s (B) informed the PSE that nothing is definite at the moment with the possible acquisition of a stake in the Company by the group of Mr. Lucio Tan. The Company also dismissed news reports citing backdoor listing plans for Fortune Tobacco Corporation

Metropolitan Bank & Trust Co. (MBT) qualified that it is not actively seeking a strategic partner but was instead approached by several foreign investors (Businessworld Sept 8).

Manila Electric Co. (Meralco) expects a cash deficit of Php6.5b given the delay in its petition for a 30 centavo per kWh rate hike.    Meralco also cited an expected RORB of 5.5% this year, the third consecutive year its RORB fell below the 8% required by its creditors.

Notices:  PLDT ex-cash on Monday, September 11, for Php1.20/share.  Record date is September 15; Date payable on October 15.  PNB’s 5 for 6 rights offer at Php60/share will proceed on September 18 to 29.  Full payment is required upon subscription.

Corporate earnings released:  HI – 2Q2000 loss of Php7.9m, SFI – 2Q2000 loss at Php15m, Benguet – 2Q2000 loss at Php77.1m, MRC – 2Q2000 loss at Php14.8m, AGI – 2Q2000 profit at Php67.4m

September 7, 2000 Thursday

Subdued investor interest from yesterday’s profit taking had investors awaiting for share prices to drop further before reassessing the market situation in search for newfound incentive. Cost push factors and inflation consequences from a lingering global oil price hike have kept general sentiment weak.

The peso marginally firmed to a high of Php45.57 from yesterday’s high at Php45.90 as Central Bank openly confirmed its planned intervention to defend the peso.

Decliners continued to outnumber gainers 42 to 31 on the broad market and 15 to 7 for the index-lined components.  Trade turnover rose to a record high 1.422b due to significant transaction crosses on GLO and TEL which accounted for a combined 53% of total market value turnover.  Domestic investor interest were held back as foreign participation was largely on a net selling mode at a significant rate of 1.51:1 (buy value at Php454m as against sell trades of Php687m).

Focus of trade activity (most active stocks) excluding GLO and TEL was on MERB, MBT, SMCB and AC. Major index decliners were LND (down 5.8%), DGTL (down 4.5%), CMP (down 3.7%), and ION (down 3.3%). Active non-index movers were on TDY (down 3%), FPH (up 13%), V (up 4%), and BW (up 4%).

PRICE SCAN:

SPI –  a 12day record high set at 9.10
FPH – intraday high at 31 is a 19week record high

ABS – gap up at 47.0-47.50, BW – gap up at 2.16-2.18, EBC – gap up at 68-69, EBCW – gap up at 5.20-5.30, FER – gap up at 1.04-1.06, FPH – gap up at 27.0-27.50, ICT – gap up at 1.10-1.12, V – gap at  1.86-1.88, and  PCIL – gap up at 1.18-1.20.

Price gap down were on AHI (0.84-0.71), ION (15.50-15.25), MERB (64.50-64.0), PLTL (0.87-0.86), SGI (1.08-1.06), SMCB (52.0-51.50) and TDY (6.30-6.10).

RECENT DEVELOPMENTS

Metropolitan Bank and Trust Company (MBT) confirmed it has been holding exploratory talks for a potential strategic partner but has cautioned that the talks are very preliminary in nature and nothing concrete has come out of the talks.  The memorandum to PSE comes from a news report that MBT is holding talks with two foreign banks, one from Europe and Asia for strategic partnership marked by a 20-percent stake in the bank.

JG Summit’s airline transport affiliate (49% stake), Cebu Pacific (Cebu Air Inc.)was granted a tax-free grant for its fuel purchase by the Department of Finance.

Centro Escolar University is embarking on an expansion plan primarily into its “New School,” the online education via the internet.  The University will undertake this project through a rights offering plan to issue additional shares to the public. The University also appointed SB Capital, the investment
banking arm of Security Bank, as lead underwriter for the rights offering, Buenaventura Filamor Echauz, as financial advisor and Quasha Ancheta Pena & Nolasco Law Office, as legal counsel.

Petron Corporation (PCOR) informed the Exchange that the Board of Directors, in its Special Board Meeting held on September 6, 2000, decided the following matters:  a) accepted the resignation of Mr. Ali A. Al-Ajmi as member of the Board and elected Mr. Motassin A. Al-Maashouq as the new member, and b) also accepted the resignation of Mr. Khalid A. Al-Falih as President and Chief Executive Officer effective September 15, 2000 and elected Mr. Motassim A. Al-Maashouq as his replacement to both positions. Petron cited no definite reasons.

Basic Consolidated Inc. reported that its Ukraine-based affiliate (5.8% interest) Olympic Gold Holdings Ltd. (OGH), operator of the on-line lottery in Ukraine has entered into a Facilities Management Agreement with Gtech Corporation (Gtech).  Gtech will expand OGH’s lottery terminals, provide computer hardware and software and communication facilities and for Gtech to deploy its marketing expertise to promote lottery and to provide for new games in the future.

Rizal Commercial Banking Corporation (RCB) informed the Exchange that the Board of Directors, in its meeting held on September 6, 2000, approved the declassification of RCB Shares, and set its Special Stockholders’ Meeting on October 30, 2000 with record date to set on October 2, 2000.

September 6, 2000 Wednesday

Profit-taking gave in as the recent momentum upsurge stalled on newfound concerns on indicative higher interest rates, the peso’s steady depreciation, clearer indications of an oil price hike, renewed signs of political cronyism and the global market weakness.    Financial market wariness reeled from the steady fall of the peso despite announcements of likely CB intervention as ordered by President J. Estrada.  The peso dropped to Php45.84/USD on hefty trading amount of USD138m  during the morning trade session.

Decliners outnumbered gainers 56 to 25 on the broad market on relatively heavy turnover of Php1.343b with a recorded net foreign selling at 1.42:1.  Share prices were higher for merely 4 index-linked issues, namely, MER, MERB, LND and PLTL.

Focus of trade activity (most active stocks) was on GLO, TEL, MERB, and AC, which altogether accounted for 69.4% of total market value turnover.  GLO and TEL accounted for 36.3% and 20.1% of total market value turnover due to significant transaction crosses by four foreign brokerages. Major index decliners were CMP (down 10%), EBC (down 5.69%), PNB (down 3.6%), and JGS (down 3.6%). Active non-index decliners were on URDI (down 16.7%), BW (down 11.5%), B (down 9.4%), and EBCW (down 8.8%).

Retail investor activity went to BW (down 11.5% at 2.16), UW (down  3% at 0.63), BEL (down 2% at 1.0), GEI (down 3% at 0.62) and EBCW (down 9% at 5.22).

PRICE SCAN:

BW – closing price at 2.16 is an 17.5 month record low
FPH – intraday high at 27.50 is an 18week record high

AJO – gap down at 1.28-1.26, EBC – gap down at 72.0-71.0, EBCW – gap down at 5.70-5.60, FER – gap down at 1.08-1.06, LTDI – gap down at 33.5-33.0, MBT – gap down at 174-173, MEG – gap down at 0.85-0.83, SGI – gap down at 1.10-1.08, and  URDI – gap down at 0.72-0.60.

Price gap up were on ABSP (46.50-47.0), AHI (0.82-0.84), FPH (26.5-27.0), PLTL (0.86-0.87) and SPI (8.80-8.90).

RECENT DEVELOPMENTS

SPI Technologies, Inc. (SPI) reported that the Board accepted the resignation of Mr. Alexander Thomson and then elected ex-SMC Chair (1986-1998) Mr. Andres Soriano III to fill the vacancy effective immediately.  The changes in the Board will be set for approval of the shareholders at the annual meeting to be held on October 14, 2000 (ex-date to vote has been fixed on September 20, 2000).

JG Summit Holdings, Inc. (JGS) informed the Exchange in its SEC Form 11-C that Express Holdings, Inc., a wholly-owned subsidiary of JGS, acquired one million (1,000,000) shares of Universal Robina Corporation at the price of  Php5.20 per share on August 30, 2000.

Alsons Consolidated Resources, Inc. (ACR) informed the Exchange that the acquisition of 40% of the Philippine power related business of the Company by Electricity Generating Public Co. Ltd. (EGCO) of Thailand through its designee, EGCO Energy International (Denmark) Limited, was completed on September 5, 2000.  As earlier indicated EGCO’s investment was made through the sale of 40% of the
issued capital stock of Conal Holdings Corporation, for US$24Million, in favor of the said designee of EGCO. The proceeds will be used by ACR for any or a combination of the following purposes subject to further Board and other required approvals to augment working capital and/or fund new projects.

Atlas Consolidated Mining and Development Corporation (AT) informed the Exchange that its Board of Directors, in its meeting held on September 5, 2000, approved a resolution authorizing the Company to accept offers from interested parties for the rehabilitation of the mine subject to the condition that the bidder shall deposit with the Company the amount of P6 million not later than Friday,  September 8, 2000.  The Company has received three (3)  separate offers from interested investors for the rehabilitation of the Company.

Ayala Corporation’s IT firm - iAyala announced firm plans to operate its own data center.  The move is deemed logical, more efficient and could be revenue enhancing since it can offer data handling services for its business partners.  Only Philweb Inc. offers data center operation plans among listed firms.

September 5, 2000 Tuesday

PLDT drove the index to a record 6.5week high, contributing 9 pts to the index despite a mixed result among index-linked issues which had 8 gainers and 9 decliners.  The broad market otherwise had 39 gainers, 29 decliners and 42 unchanged issues on higher market turnover at Php732m and a favorable net foreign buying turnout at a ratio of 1.12:1.

Focus of trade activity (most active stocks) were on GLO, TEL, MERB, BPI, MBT and  ABSP. Major index movers were DMC (up 4.65%), TEL (up 3.9%), MEG (up 3.66%), and BEL (up 2%). Non-index gainers were B (up 18.5%), BELW (up 16.7%) and GEI (up 10.3%).  B found favor on speculation about the backdoor listing of Fortune Tobacco Corporation.  BELW gained retail interest with the relative firmness of the common shares and on market expectation that retail magnate – Henry Sy will be the controlling shareholder after the rights offering.  On the other hand, GEI had renewed speculative interest on growing investor interest ahead of the company’s stockholder’s meeting due this week that will formally transform its business into IT with SSI and STI as its prime components.

Retail investor activity went to UW (up 7% at 0.65), GEI (up 10% at 0.64), BW (down 8% at 2.44), EBCW (up 2% at 5.70) and V (up 5% at 1.92).

PRICE SCAN:

BELW – gap up at 0.15-0.16, GEI – gap up at 0.58-0.59, GLOW – gap up at 660-670, LTDI – gap up at 32.50-33.0, TEL – gap up at 770-775, V – gap up at 1.82-1.84, MEG – gap up at 0.82-0.83, MHI – gap up at 3.0-4.40, PCOR – gap up at 1.22-1.24, and  SPI – gap up at 8.50-8.70

Price gap down were on BW (2.65-2.60), JFC (12.25-12.0), and SGI (1.12-1.10).

RECENT DEVELOPMENTS

News reports cited indications that the Fubon Group of Taiwan as the likely new strategic partner of Equitable Bank-PCIB.  EBC neither confirmed or denied the news report.  The Fubon Group likewise did not disclose any interest to invest overseas, particularly in the Philippines.  The Fubon Bank in Taiwan is partly owned (15%) by US-based Citigroup.

PS Bank officials have reduced its profit target for the year from Php150-200m to roughly Php100m due to the reimposition of the gross receipt tax (GRT).

September 4, 2000 Monday

The market was broadly mixed to marginally higher on lackluster trade activity (Php304m) ahead of the August CPI data due Wednesday, the renewed wariness over the fall of the peso to a 32month low at Php45.23/US$ and the unresolved Mindanao hostage crisis.  Added concerns is partly attributed to claims by the BIR for renewed tax investigation for marginal corporate tax payers in its attempt to plug its budget deficit concerns.

The broad market was a net decliner  today with 34 decliners against 21 gainers, while index-linked issues further acceded to sell-offs with 11 decliners against 9 gainers.   The Phisix marginally firmed as index-heavyweights EBC, TEL, AC and PNB inched higher.   The Phisix narrowly ranged higher –0.64pts/+7.93 but it still fell short of the 8week record high (1539.4) set last Thursday – Sep 31.

Focus of trade activity (most active stocks) were on ALI, EBCW, GLO, MERB, BPI, and  MBT which altogether accounted for 57.9% of total turnover.  ALI led the market action with a transaction cross by Warburg to account for 96% of ALI’s net transaction.  EBCW, GLO and MERB was on net foreign selling but was favored by local funds/investors.

Major movers were EBCW (up 12%), Asia (up 8.3% on single transaction), BHI (up 6.5%), and EBC (up 4.4%).Retail investor activity went to EBCW (up 12% at 5.60), GEI (unchanged at 0.58), and BW (down 4% at 2.65).

PRICE SCAN:

BPC – gap down at 4.15-4.10, MERB – gap down at 65.0-64.50, MPC – gap down at 0.64-0.63, MUSX – gap down at 5.20-5.10, and  SMPH – gap down at 5.50-5.40

Price gap up were on EBC (68.0-69.0) and TEL (760-765).

RECENT DEVELOPMENTS

The Senate Committee on Environment has submitted a committee report recommending the closure of Manila Mining’s site in Placer, Surigao due to its unhealthy environmental impact.  Senator R. Jaworksi also cited Manila Mining’s violation of business operation given its expiry of its environmental business permit last July 2000.

Market talks revived the potential backdoor listing of Fortune Tobacco Corporation via Baguio Gold Holdings Corporation.

Globe Telecoms will provide additional credits to subscribers to compensate for the inconvenience due to the system failure during the network upgrade experienced last July 2000. Prepaid cards will be given an additional credit of Php125 by October 15th.  Post-paid subscribers will be provided a 50% discount in service charges for its October and November billing period.   Estimated net cost of the additional credits is nearly Php300m.

SMC plant in Mindanao was bombed but no detrimental damage has been reported except for a bomb hole   in its storage facility.

DMCI Holdings will participate in the bid to construct the Mall of Asia’s foundation estimated to cost around Php1 billion..  DMC recently completed the construction of the sea wall for the Mall of Asia, a strategic advantage over five (5) other foreign contractors that has prequalified for the project.

Petron Corporation announced that it has temporarily shelved its planned oil price hike until after assessing the results of the OPEC meeting set for September 10.

September 1, 2000 Friday

Share prices marginally pulled back on seemingly initial signs of profit-taking after a 6day consecutive run-up which lifted the Phisix to a 6week record high. Albeit a measly 0.5% decline, such profit-taking mode seemed overwhelming for investors as it brushed-off global market optimism from the spectacular 1% and 2.5% overnight gain registered by the Dow and Nasdaq, respectively.  The broad market was mixed with 35 gainers and 39 decliners while index-linked issues acceded to sell-offs with 15 decliners agains 6 gainers.  Attribute the sell-off to local investors as PSE data still reflects a net foreign buying (1:1.03x).

Focus of trade activity (most active stocks) were on SMPH, TEL, GLO, MERB, MBT, and  ALI which altogether accounted for 46.8% of total turnover.  SMPH was surprisingly the most actively traded issue (12.9% of total) due to significant foreign buying activity.   Rotational buying moved into SMPH (up 3.8%), BPC (up 3.8%) and ICT (up 5.8%).  BPC received new interest on Meralco’s price rally and its marginal underperformance vis- a-vis the gain posted by the market (8% gain -1405 to 1529). ICT gained on confirmed reports that the Company prequalified to participate in its bid for Japan’s port. Profit-taking among index-issues were on TEL, MERB, AC, PCOR, ABS and ALI.

Major positive movers were on URDI (up 50%), SLT (up 29%), and BHI (up 19%).  URDI gained anew given the stock’s newfound revival given the reported backdoor listing of Bank of Commerce.  SLT gained anew on widespread belief that ongoing negotiations between the RFM group and Philstar.com will certainly paved way for the backdoor listing of Philstar.com via SLT.  BHI gained on optimism that another block sale at a higher price is due anytime. Meanwhile, retail investor profit-taking from initial gains went to CMP (down 9.4%), PCOR (down 7.7%), UP (down 7%) and GEI (down 4.9%).

Next week’s outlook has a mild downward bias on expected profit-taking and investor caution towards inflationary pressures and the Mindanao crisis. Downward concerns are inevitable on global concerns towards further rise in oil prices and the asian currency weakness given the political and peace and order crisis in Thailand, Indonesia and the Philippines. Highly sensitive domestic issues are forthcoming, with August CPI data due for release.  The country’s socio-economic planning agency (SEP) expects August CPI to be modestly higher at 4.7% from 4.2% last July.  Market wariness may occur if CPI data is higher than 5.1% but SEP’s estimate has been generally on-track.  The involvement of US in the Mindanao hostage crisis,  the increasing renewed bombing activity by extremist groups and the lingering corporate anxiety reeling from the technical lapse in the Lucio Tan case.

Corporate developments awaited (this week and next): SLT release of joint venture agreement with philstar.com; ERB hearing on MER’s rate hike petition; PSE decision on OMW, GEI’s release of financial data prior to business transformation (GEI stockholders meeting), FBDC’s release of bid award;  completion of bank approval for UW rehab plan; NTC action on Smart and Globe on service complaints.

Technical direction intensified for a pull-back with 1484/1455 as the near-term support levels.  The Phisix has registered a record 22day bullish trend – the longest rally on the downtrend since July 1999.  A seemingly low possibility for a renewed uptick to test breakout point at 1572 will provide impetus towards 1637.

PRICE SCAN:

URDI – price close at 0.69 is a 18week record high
ICT – intraday high at 1.16 is a 4week record high
SLT – price close at 1.10 is a 6.5month record high

ABS – gap down at 48.50-47.0, ABSP – gap down at 48.50-47.50, AJO – gap down at 1.360-1.30, MHI – gap down at 3.50-3.0, and  PNB – gap down at 55.50-55.0

Price gap up were on: BPC, ICT and UW.

RECENT DEVELOPMENTS

SMC plant in Mindanao was bombed.  (Extent of damage not yet available)

The NSO reported that the country’s exports slowed to 12.8% in July from 19.4% last June.  The slowdown is attributed to the lower shipments of semiconductors and other electronics which rose merely 5.8%from a robust 25.3% last June.

iVantage (V) approved the change of its Articles of Incorporation  to include investments in IT and similar ventures.  The Board also passed a 15% stock dividend, a reduction from the 25% initially proposed.

Rockwell Land Corporation, a subsidiary of Meralco and FPH is on-track towards the partial opening set December 2000.

MacroAsia Property Development Corporation’s 23-ha Naia property was granted an ecozone status by PEZA.