Slower global and US economic growth and market volatility continue to affect fund inflows which registered a net outflow of $ 63.8 million in the first quarter while the foreign exchange and stock markets also fretted over the dismal global financial positions. The peso lost strength at P42.04: $ 1 Friday from P41.975 previously. Volume of currency transactions totalled $ 937.7 million from P$ 324.5 million Thursday. Traders said the peso’s movement mirrored all other regional currencies, which also depreciated vis-à-vis the US dollar. At the local stock exchange, share prices also closed the day 2.3 percent or 66.09 points lower to 2,777.93 points. Worries over inflation continue to hound investors, who opted to withdraw positions in the domestic market. The Bangko Sentral ng Pilipinas (BSP) said its registered foreign portfolio investments or "hot money" resulted in a net outflow of $ 63.8 million from a net inflow of $ 838 million the same period in 2007, due "primarily to the deepening global credit crisis, which has also driven investors back to more developed markets." BSP said investments in Philippine Stock Exchange-listed share amounted to $ 1.8 billion and almost half of which was invested in telecommunications and property firms, accounting for 59 percent of the total. In the meantime investments in peso-denominated government securities and placements in bank deposits increased by 55 percent to $ 938.2 million and by 200 percent to $ 336 million, respectively, to account for 30 percent and 11 percent of total investment flows.

BANGKOK, April 25 (Reuters) — Thai 100 percent B grade white rice, the world’s physical benchmark, was quoted higher on Friday, despite a 3 percent fall in rice futures contracts on the Chicago Board of Trade, Thai traders said on Friday. The benchmark grade from the world’s largest exporter was quoted at $ 1,030-$ 1,080 per ton, up from $ 1,000-$ 1,080 per tons on Thursday, due to continued strong demand from rice-importing nations, such as the Philippines. "The price remains firm and is expected to rise further due to strong demand and tight supply," Chookiat Ophaswongse, head of the Thai Rice Exporters Association, told Reuters. CBOT’s July rough rice futures contract stood at $ 23.69 per hundredweight as of 0756 GMT, down 63 cents from the Chicago close on Thursday. It earlier briefly fell by 75 cents, the new, expanded daily limit. Prices are likely to rise further next week due to the Philippines increasing the amount of rice it wants to buy, to 675,000 tons from 500,000 tons, in the May 5 tender, traders said. "No one can point out how high the price will be quoted next week, but many believe that it will rise further as there’s no negative factor to drag prices down," a Thai trader, who did not want to be named, told Reuters. Asian rice prices have almost trebled this year and prices on the CBOT have risen more than 80 percent to hit successive record highs as export restrictions by leading exporters to cool domestic inflation have fuelled much anxiety over food supplies.

The Philippines is pursuing both tax administration and legislative measures to raise revenue that will fully finance the government’s spending requirements this year, Finance Secretary Margarito Teves said. Teves told a team from Fitch Ratings headed by James McCormack, senior director and head of Asian Sovereign Ratings, that pending bills in Congress — if passed — should allow the government to recoup a revenue shortfall that will be caused by changes in the corporate income tax rate and increased food subsidies. The government has been spending heavily to subsidize rice that are sold to the poor as prices of the staple surge to record highs. "The situation has become more challenging and we need Congress’ support for the fiscal measures," said Teves. Teves said that leaders in Congress are backing the government’s proposal to rationalize fiscal incentives, while a bill that would simplify the sin tax structure is still pending. He said simplifying taxation of so-called sin products, such cigarettes and liquor, would generate additional revenue that will offset a decline in the corporate income tax rate to 30 percent next year from a current 35 percent. "Our priority now is to look for the resources to finance economic growth and ensure food security," Teves told Fitch at the start of their meeting. (Dow Jones)