The peso exchange rate stands at P44.40 to the US dollar, the closing rate on Thursday at the Philippine Dealing & Exchange Corp. (PDEx). The weighted average rate stands at P44.339.

S.M. DEV. PRICES STOCK RIGHTS OFFER

SM Development Corp. has set an indicative price of P5.45 to P5.73 for each of the 1.83 billion shares it plans to sell in a stock rights offer, potentially raising as much as P10.5 billionfor the Philippine property developer, the stock exchange said yesterday.

The Philippine Stock Exchange said the stock rights, which will give shareholders on record Oct. 6 the right to buy one share for every three shares they hold, will be priced on Monday.

The price range for the rights shares is a discount of between 33% and 36% to the stock's close Thursday at P8.50.

A five-day offer period starts on Oct. 18 and the rights shares will be listed on Nov. 3.

NET PORTFOLIO INFLOWS REACH $225 M IN AUG.

Foreign portfolio investments in the Philippines registered a net inflow of $225 million in August, a sharp improvement from the $14 million net inflow in July and turning around from a net outflow of $83 million in August 2009, the central bank said.

The Bangko Sentral ng Pilipinas attributed the increase in portfolio investments to an improvement in investor confidence following strong manufacturing data out of the US and China, robust domestic growth in the second quarter and the stronger peso.

In the eight months to August, foreign portfolio investments were a net inflow of $926 million, or more than five-fold the $182 million net inflow recorded in the year-earlier period. Total investment inflow in the eight-month period reached $5.8 billion, up 43% from the $4.0 billion recorded in the year-earlier period. Around $3.1 billion was invested in stocks listed on the Philippine Stock Exchange, whose main index was up 17% for the year at the end of August.

Outflows, mostly withdrawals from peso deposits, during the January-August period reached $4.8 billion, compared with $3.8 billion in the year-earlier period.

The US, United Kingdom, Singapore, Malaysia and Luxembourg are the top five sources of portfolio investments for the Philippines, accounting for 83%. (Dow Jones)

P.N.B. TO EXCEED P2.2-BILLION NET INCOME THIS YEAR

Philippine National Bank will beat last year’s profit of 2.2 billion peso profit as earnings so far this year are already near the full 2009 level, President Eugene Acevedo disclosed.

The bank controlled by billionaire Lucio Tan is “considering financing options” as early as next quarter to refinance debt and fund acquisition after it was approached by some lenders planning to sell, Acevedo said. The bank known as PNB is “very liquid” to buy a small bank, he said. (Bloomberg)