MANILA, Philippines — The peso exchange rate stands at P42.55 to the US dollar, the closing rate on Monday at the Philippine Dealing & Exchange Corp. (PDEx). The weighted average rate stands at P42.628.

CHEMPHIL trade halted 10 days

The Philippine Stock Exchange has granted the 10-day voluntary suspension requests of Chemical Industries of the Philippines (Chemphil) and LMG Chemicals Corporation pending negotiations for the sale of majority stakes in the two listed firms.

In a disclosure to the Philippine Stock Exchange, LMB said 3G Holdings Corporation and Chemphil, which own 73 percent of the shares of LMG, are in negotiations with a buyer for the sale of the privately held shares.

Barclays sees more rate cuts

Barclays Capital said the latest Philippine inflation figure – 3.9% for January, at the lower end of the central bank's 3.6%-4.5% forecast – underscores the subdued inflation outlook and provides another reason for the central bank to ease policy further.

"We now expect BSP (central bank) to cut the policy rate 25 bps, to 4%, at the March policy meeting," says Prakriti Sofat, economist at BarCap. She says of the risks to inflation from commodity prices, mainly food and oil remain, but notes onshore inflation expectations are still well-anchored and wage inflation is contained. (Dow Jones)

Construction spending now ramped up

Public construction and government consumption will post a “sharp reversal” this quarter from a contraction a year earlier as the state ramps up spending, National Economic and Development Authority Assistant Director General Ruperto Majuca said.

“This time we will see a double-digit expansion in public construction from a double-digit contraction in the first quarter of 2011,” Majuca said in a mobile phone message. “Government consumption will also see a sharp reversal from a contraction. The business sector is also more upbeat, as seen from the strong performance of the stock market lately.” (Bloomberg)

GT capital plans P24-B I.P.O.

GT Capital Holdings Inc., owned by billionaire George Ty, plans to raise as much as P24.6 billion in the second-biggest initial public offering (IPO) on record in the Philippines.

The company, Ty’s investment holding company, may offer 41.2 million common shares at a maximum price of P520 each, it said in an e-mailed statement today. The sale values GT Capital at as much as P82 billion, when a possible over allotment of 6.18 million shares is included. (Bloomberg)