The peso closed higher at R55.78 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P55.90 the previous day. The weighted average rate appreciated to P55.840 from P55.884. Total volume amounted to $208 million.
BSP to keep rates steady
The Bangko Sentral ng Pilipinas said yesterday it will likely keep benchmark interest rates unchanged in the meantime despite the sharp 6.0 percent year-on-year rise in July inflation. Overnight rates have been maintained at 9.00 percent for lending and 6.75 percent for borrowing, which are their lowest in 11 years. In a statement, the BSP said it believes the increase in prices is generally a "supply-side" phenomenon, rather than one driven by strong demand. The upward trend remains consistent with its projected path for inflation, it added. "Monetary authorities believe ... that the current monetary stance remains appropriate to the cost-push character of the ongoing inflationary pressures," the BSP said. It added that it does not expect ongoing pressures on consumer prices to extend for a long period.
BCDA sees
R8.1-B revenues
The state-owned Bases Conversion Development Authority (BCDA) is expecting to generate a total of
R8.1 billion in the next 25 years from its joint venture project with property developers Megaworld Properties and Alliance Global Group Inc. (AGGI). Megaworld and AGGI entered into a joint development agreement with BCDA to redevelop the Lawton Parkway bounded on the northeast by the C-5 near Forbes Park Village and the Manila Golf and Country Club. The lot which covers 25 hectares is now being developed into a high-end residential subdivision cum commercial area dubbed McKinley Hill. A substantial portion of McKinley Hill is the McKinley Village, a high-end residential subdivision that was launched last May. McKinley Village is the first phase of the three–phased redevelopment of the 25-hectare McKinley Hill. Once completed in 2011, McKinley Village will have a direct route to the Makati Business District via the Upper McKinley road which is now under construction. The new road, a 22-wide meter avenue, will be linked to the existing McKinley Road. The Upper McKinley Road will also link up with the existing Lawton Road and the C-5 Road providing McKinley Hill easy access to various key urban points such as NAIA and Ortigas.
Cell phone users to reach 43 M
About half the country’s population are likely to own mobile telephones by the end of next year, up 57.5 percent from the current 27.3 million users, major industry player Globe Telecom said yesterday. Globe president Gerardo Ablaza said the total mobile subscriber base by end-2005 should reach 43 million, or half the country’s estimated 86 million people by that time. Globe and two other providers now have a combined subscriber base of 27.3 million — a penetration rate of 32.5 percent of the current population of 84 million. Ablaza said that it should rise to 31.08 million by the end of the year. "We earlier projected a mobile market penetration of 33-40 percent in 2005. It seems that we are now poised to take advantage of a stronger market and we are now looking on an industry penetration rate of 45-50 percent by the end of 2005," Ablaza added. He conceded that the projection may be overstated given the intense competition between Globe and main rival Smart Communications Inc., which has led to frequent swapping of subscriber identification module (SIM) cards by subscribers.
Del Monte Pacific profit dips
SINGAPORE (AFX-Asia) — Del Monte Pacific said its net profit for the second quarter to June fell 23.1 percent year on year to $6.57 million on lower sales and higher product costs. The company, owner of the world’s largest integrated pineapple growing and processing facility in the Philippines, said sales for the quarter came in at $46.01 million, down from $48.94 million in the same period last year. It also reiterated its July profit-warning that it expects earnings for 2004 to be lower than in 2003.
Ayala bond issue rated ‘Aaa’
Philippine Rating Services Corp. (PhilRatings) said it has assigned an "Aaa" rating on Ayala Corp’s planned P
5-billion 5-year bond issue. It describes the bonds as "having the smallest degree of investment risk (and) interest payments are protected by a large or by an exceptionally stable margin, and principal is secured." PhilRatings said it zeroed in on Ayala Corp’s key credit strengths in assigning the rating. It noted Ayala Corp’s diversified portfolio of businesses with well-established markets, the company’s strong financial flexibility anchored on its investments in publicly-listed companies, and increasing dividend streams from subsidiaries and affiliates. PhilRatings said it views "positively" Ayala Corp’s plan to replace a portion of its dollar borrowings maturing in 2005 with the proposed peso bond issue, which the rating firm said will reduce the company’s exposure to foreign exchange risk and partly address the company’s refinancing needs in the short to medium term. 
