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Tuesday, September 30, 2014

COL Model Portfolio As of September 30, 2014

COL Model Portfolio as of September 30, 2014

TickerCompany NamePriceRatingFVBelow

Banks and Financials


Commercial and Industrial








Thursday, September 25, 2014

Ayala semiconductor arm's stock surges after pricing follow-on share sale at a premium

Shares in Integrated Micro-Electronics Inc (IMI) surged on Thursday after the Ayala-led semiconductor firm priced its P3-billion follow-on offering at a premium.

In a disclosure to the Philippine Stock Exchange (PSE), IMI said its board of directors cleared the issuance of up to 215 million shares plus an over-allotment option of 85 million shares at an offer price of up to P10 per share.

The offer price represents a 47 percent premium from yesterday's closing price of P6.8 per share. IMI's stock price rose 26.47 percent to P8.60 apiece as of 1:54 p.m.

Proceeds of the offering will be used for capital expenditure, business expansion, refinancing and working capital requirements.

BPI Capital Corp will be the issue manager and lead underwriter for the offering.

IMI is undertaking the much delayed follow-on offering to meet the post-listing requirements of the PSE.

In 2010, IMI joined the local bourse through listing by way of introduction, which allowed the firm's existing stockholders to trade their holdings on the exchange without raising new capital.

Companies that join the bourse through this listing method are required to stage a public offering 12 months after, according to PSE rules.

IMI has been putting off the share sale, saying that its market price is undervalued. The exchange has been penalizing the company for failure to meet its rules.

IMI's net attributable profit grew more than 5 times to $11.3 million in the first half of this year, from $2.1 million a year ago, on strong demand from telecommunications, automotive and storage device markets.

- Interaksyon

Robinsons Land begins construction of office tower at QC business park

Robinsons Land Corp (RLC) has started construction of a prime office building in its upcoming mixed-use complex in Quezon City.

In a statement, Faraday D. Go, RLC general manager for office buildings division, said Tera Tower will be the company's 11th office building and will add approximately 35,000 square meters of gross floor area to its office portfolio.

Set to be completed by the third quarter of 2015, the 20-storey Tera Tower is in the pre-leasing stage. It has 15 office floors and ample parking space provisions.

Each floor at Tera Tower is designed for space-efficiency with its large floor plate of around 2,250 square meters, a typical rectangular center-core, and widely-spaced building columns.

The ground floor commercial spaces, with floor-to-floor height of 7 meters, will house mid- to upscale restaurants and cafes. It will also have service establishments such as a 24/7 convenience store and banks catering to the needs of the office employees and the nearby residents.

The Grade A office building is registered under the Leadership in Energy and Environment Design (LEED) green building program. Tera Tower is gunning for a LEED gold certification, marking the Gokongwei-led developer's commitment to environmental sustainability.

Located along C5 and Ortigas Avenue, Tera Tower will be the first structure at the heart of RLC’s fourth mixed-use development in Quezon City called Bridgetown Business Park.

Modern residential, retail and hotel establishments will also rise alongside the office building, complementing the modern architectural concept of Tera Tower in the P30-billion master-planned eight-hectare development.

Aside from these, Bridgetown Business Park will also have functional open spaces that can be used for events, exhibits and other outdoor activities.

For its office space offerings this year, RLC is leasing out its two new office buildings, Cyberscape Alpha and Cyberscape Beta. Both are located within the Ortigas Central Business District and are just a few steps away from Robinsons Galleria, Crowne Plaza, Holiday Inn and Asian Development Bank head office.

- Interaksyon

Megaworld Leads Philippine Developers Higher as Land Values Leap

Megaworld Corp. (MEG) shares jumped to a record, leading Philippine developers higher, as the government sold land in Greater Manila at higher-than-expected prices.

Megaworld soared 8.3 percent at the close in Manila, after rising as much as 11 percent earlier. The stock was the biggest percentage gainer today in the Philippine Stock Exchange Index (PCOMP), which rose 1.2 percent to its highest close in 16 months.

The government yesterday auctioned two plots of 1,600 square meters each in the former army camp of Bonifacio for 732.8 million pesos ($16.5 million) and 800 million pesos. The average sale price of 479,000 pesos per square meter for those two plots is higher than analysts’ estimates of 280,000 pesos per square meter in Bonifacio, according to Noel Reyes, chief investment officer at Security Bank Corp. Megaworld owns 105 hectares in the area.

“Investors are anticipating a significant adjustment in the valuation of companies with properties in Bonifacio,” Reyes said by phone in Manila today. “The expectation is there will be a big increase in the values of land in Bonifacio.”

Megaworld’s projects in Bonifacio include the 50-hectare McKinley Hill, a residential, office and commercial project, according to John Hao, the builder’s investor relations officer.

“Bonifacio land values will increase from this transaction and will have repercussion on rent and prices,” said Rommel Rodrigo, a Manila-based analyst at Maybank ATR Kim Eng, said by phone. “Megaworld is seen as a prime beneficiary because of the size of its exposure in Bonifacio. It’s Bonifacio’s biggest landlord.”

Rodrigo, who has a buy rating on Megaworld shares, said he is reviewing the 180,000 peso to 200,000 peso a square meter valuation range he uses for land in Bonifacio.

Shares of Alliance Global Group Inc. (AGI), parent of Megaworld, climbed 3.4 percent to a two-week high. Ayala Land Inc., the developer of the Fort Bonifacio Global City project, advanced to a 15-month high, while SM Prime Holdings Inc., which owns a mall in the district, rose 3 percent. GT Capital Holdings Inc., which owns land in Bonifacio through a property unit, added 1.3 percent to a record.

The Philippine Stock Exchange Property Index, a measure of the nation’s largest developers, rallied 3.6 percent, the sharpest gain in more than a year. The gauge has increased 31 percent this year, outpacing the benchmark equities index’s 25 percent advance.

To contact the reporter on this story: Ian Sayson in Manila at

To contact the editors responsible for this story: Michael Patterson at Phani Varahabhotla


Wednesday, September 24, 2014

Suntrust board approves P20B capital increase

Suntrust Home Developers Inc secured board approval to beef up its capital.

In a disclosure to the Philippine Stock Exchange, Suntrust said it would hike its authorized capital stock to P23 billion divided into 23 billion common shares with a par value of P1 each. The company's capital now stands at P3 billion.

The capital hike will be presented to stockholders for approval in its annual meeting on November 18.

Last year, Suntrust said its board cleared a pre-emptive rights offer to holders of its common shares at a ratio of 2.5 new shares for each share held. The offer price was set at P1 per share equivalent to the par value of the shares.

The rights shares will be issued from the P20-billion increase in Suntrust's authorized capital. The capital-raising initiative will fund various investment opportunities.

Suntrust does not have any business operations. It has a wholly owned subsidiary, First Oceanic Property Management Inc (FOPMI), which is engaged in management of residential and office buildings and private estates.

The listed firm acquired FOPMI, the property management arm of the Megaworld group, in September 2011.

Suntrust sold its 78.75 million shares in affordable housing developer Suntrust Properties Inc to Megaworld Corp for P117.81 million as part of the consolidation of the property businesses of billionaire Andrew Tan.

- Interaksyon

Tuesday, September 23, 2014

DoubleDragon expands footprint to Aklan

A subsidiary of DoubleDragon Properties Corp has acquired a prime commercial property in Aklan where the real estate firm plans to put up its branded community mall.

In a disclosure to the Philippine Stock Exchange, DoubleDragon said its joint venture with SM Investments Corp -- CityMall Commercial Centers Inc (CCCI) -- secured a 1.1-hectare lot along a new road that will be built connecting Mabini and Toting Reyes streets in Kalibo town.

The site is bounded by a public market, schools, hospitals and situated within the commercial and residential zones in Kalibo, a first class municipality and the international gateway of Western Visayas, being the jump off point to Boracay.

"As a major tourism entryway, the inflow of tourists to Boracay Island catalyzes rapid economic expansion and municipal landscape development - making it ideal to put up a CityMall in the area,” DoubleDragon said.

Envisioned to become one of the country's biggest property developers by 2020, DoubleDragon is building a hundred community malls under the brand CityMalls, mostly in the Visayas and Mindanao.

DoubleDragon is a 50-50 joint venture between Injap Investments Inc and Honeystar Holdings Corp. Jollibee founder Tony Tan Caktiong owns Honeystar, while Mang Inasal founder Edgar "Injap" Sia II owns Injap Investments.

DoubleDragon is beefing up its portfolio of developmental and recurring income-generating projects to generate a net income of P1 billion by 2016 and P4.8 billion by 2020, making it one of the biggest players in the local real estate scene.

The property developer closed the first half with a profit of P84.3 million, up 526 percent from P13.4 million a year ago, on strong sales take up and windfall from new investments.

- Interaksyon

Thursday, September 18, 2014

BPI takes on Japanese partner for leasing business

Bank of the Philippine Islands (BPI) has taken on a Japanese partner to grow its leasing business.

The joint venture, which will be created by Century Tokyo Leasing Corp (CTL) acquiring 49 percent of the shares of BPI Leasing Corp, will be named BPI Century Tokyo Lease & Finance Corp.

“The creation of this joint venture recognizes our success in the Philippine market and its potential for further growth. BPI has a strong track record of partnerships with international financial institutions, like our BPI-Mitsui Sumitomo Insurance partnership for non-life insurance and BPI-Philam for life insurance,” Cezar P. Consing, BPI president and chief executive said.

“We are taking a strong business and making it stronger,” he added.

“We are very pleased to partner with such a well-established and proven company such as BPI on this investment in the Philippines," Shunichi Asada, CTL president and chief executive said.
"Finding a reliable and recognized Philippine partner will help us serve the Filipino consumers and help realize the potential of the market. I am especially optimistic about the relationship this joint venture enables within CTL’s international business," Asada added.

The joint venture will combine CTL’s resources and expertise with BPI’s proven record of growth and success in the Philippines.

The strategic partnership is taking place at a time of consumer-led growth in the Philippine market. Both companies said their respective clienteles complement each other from "both geographical and sectoral points of view."

The joint venture plans to implement innovations, reach new customers and enhance services to BPI Leasing’s valued customers.

The Ayala-led bank reported a net income of P8.03 billion in the January to June period, down by a third from P12 billion in the same period last year.

Net interest income rose 15 percent year-on-year in the first half as the bank sustained growth in its core business. Net loans jumped 23 percent to P697 billion, while total deposits climbed 30 percent to P1.072 billion, exceeding the P1-trillion mark for the first time.

Despite the drop in earnings, BPI is keeping its full-year profit guidance of P20.21 billion, as the lender sees improved earnings quarter-on-quarter for the rest of the year even amid a rising interest rate environment.

- Interaksyon

Saturday, September 13, 2014

Gov't awards LRT1 Cavite Extension project to Ayala-Metro Pacific group

The Department of Transportation and Communications (DOTC) has awarded the LRT1 Cavite Extension Project to the joint venture of the Ayala and Metro Pacific groups.

In a text message, DOTC spokesperson Michael Arthur Sagcal said the Light Rail Manila Consortium "has 20 days to comply with post-award requirements, after which the concession agreement can be signed by both parties."

Sagcal didn't provide details, especially pertaining to how the agency sidestepped a stay order that the Supreme Court issued at the behest of SM Prime Holdings Inc.

Light Rail Manila is the joint venture between AC Infrastructure Holdings and Metro Pacific Investments Corp (MPIC) that was the lone bidder for the P64.9 billion project, which is one of the public-private partnership (PPP) ventures of the Aquino administration.

The consortium, which offered a P9.35 billion premium over the contract price, had bagged the endorsement of the boards of the National Economic and Development Authority (NEDA) and of the Light Rail Transit Authority (LRTA).

SM Prime however had thrown a monkey wrench into the project, after it secured a temporary restraining order from the Supreme Court, which halted the award based on the Henry Sy-led mall developer's claim that the project would violate a 2008 contract with state-run LRTA.

Under the said contract, SM Prime paid LRTA P200 million for the right to name the common station for the LRT1 and MRT3, and to locate the facility near the SM City North Edsa mall.

The design of the common station was tucked into the LRT1 Cavite Extension Project, which also provided that the location be moved near the Trinoma mall of Ayala Land Inc. DOTC had said its decision to move the location would save the government billions in pesos.

Before today's announcement of the award, DOTC had sought the legal opinion of the Office of the Solicitor General and was looking at a loophole in the High Tribunal's stay order to expedite the project.

The southbound extension of LRT1 would increase the train’s span from 20.7 kilometers to 32.4, with approximately 10.5 kilometers of the extension elevated and 1.2 kilometers at grade.

More than 500,000 commuters everyday use LRT1, which runs from Baclaran in Pasay City to Roosevelt in Quezon City. The southern part of Metro Manila and neighboring Cavite province is home to nearly 4 million people.

- Interaksyon

Friday, September 12, 2014

PH stocks move sideways after BSP hikes rates

The Philippine benchmark index on Friday closed barely unchanged a day after the Bangko Sentral ng Pilipinas embarked on a new round of policy tightening measures.

At the Philippine Stock Exchange, the benchmark index slipped by less than a point to 7,201.88, extending its losing streak to a fourth straight session. The PSE index fell 0.85 percent for the week.

Advancers beat decliners, 86 to 82, while 51 issues were unchanged. Value turnover picked up to P7.16 billion from yesterday's P6.83 billion, as 1.69 billion shares changed hands.

The most actively traded stocks were PLDT, Emperador, BPI, BDO and Universal Robina. The top gainers were Apex Mining, Macroasia and Leisure and Resorts World warrants and common shares, while the biggest losers were Bogo Medellin, Zeus Holdings and United Paragon.

"Investors are still weighing the effect of the Monetary Board's policy actions for yesterday," said Freya Natividad, investment analyst at Papa Securities.

After the market closed yesterday, the BSP hiked its overnight and special deposit account rates by 25 basis points to protect its inflation target for 2015.

In its policy meeting in July, the central bank raised interest rates by 25 basis points for the first time in the last three years.

Investors have been locking in gains since the PSE index reached a 15-month high of 7,314.94 last Monday.

Local markets tracked the flat finish of US stocks overnight. The Dow Jones industrial average shed 0.1 percent to close at 17,049 while the Standard & Poor's 500 added 0.1 percent to 1,997.45.

- Interaksyon

Thursday, September 11, 2014

PLDT paying up remainder of investment in Rocket ahead of planned IPO

Philippine Long Distance Telephone Co (PLDT) today said it will soon complete the payment of its investment in Germany's Rocket Internet AG after the European owner of Zalora and Lazada announced a plan to go public in the fourth quarter of this year.

PLDT and Rocket earlier entered a global strategic partnership to develop innovative online payments solutions in emerging markets.

Under the terms of the partnership agreement, PLDT would invest €333 million or $445 million in Rocket. Of this amount, 50 percent has already been paid.

Following the announcement of Rocket’s intention to proceed with an initial public offering (IPO), PLDT will now pay in full the remaining 50 percent of its investment in the e-commerce platform developer.

Rocket's IPO is intended to take place later this year on the Frankfurt Stock Exchange. If it pushes through, the IPO is expected to consist solely of new shares from a capital increase.

The new shares will be of the same class and bearing the same rights as shares held by existing Rocket shareholders.

Besides PLDT, other Rocket shareholders consist of Global Founders GmbH (“Global Founders”, which is the investment vehicle of Oliver Samwer, the founder and CEO of Rocket, and his brothers), Investment AB Kinnevik (Kinnevik), Access Industries (Access), United Internet (UI) and HV Holtzbrinck Ventures (HV).

All existing shareholders of Rocket will remain invested and will not sell any shares as part of the offering. All six shareholders have signed lock up commitments not to sell or otherwise dispose of their stakes for at least 12 months.

Rocket intends to use the proceeds from the IPO to finance its future growth through the launch of new businesses and to provide additional equity capital to its network of companies.

Rocket provides a platform for the rapid creation and scaling of consumer internet businesses outside the U.S. and China, with the German company having more than 20,000 employees in its network across over 100 countries, with aggregated revenues in excess of €700 million in 2013.

Its most prominent brands include leading Southeast Asian e-Commerce businesses Zalora and Lazada, as well as fast growing brands with strong positions in their markets such as Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh, in Latin America, Africa, Middle East, Russia, India and Europe.

Alongside e-Commerce and marketplaces, financial technology and payments comprise Rocket's third sector where it anticipates numerous and significant growth opportunities.

- Interaksyon

Tuesday, September 9, 2014

Smart offers 'holy grail' of mobile Internet for P1

Smart Communications Inc will offer mobile Internet service for as low as P1 starting this month.

In a statement, Smart said the "PisoNet" will be rolled out this month initially available for Talk ’N Text subscribers.

The new service will allow access to all apps and websites on mobile phones for only P1 per 10 minutes, with the exception of video streaming sites and file-sharing activities.

The service is much more affordable than the standard P5 per 15-minute rate for mobile Internet.

“Now, one peso is all you need to access the Internet. PisoNet thus brings the many benefits of the Internet to more Filipinos nationwide, especially those who are accessing the Internet for the first time using their phones,” Charles A. Lim, Smart executive vice president and head of the Wireless Consumer Division, said.

“With this upcoming service, the user is not limited to specific sites or apps. They can thus access the mobile apps and sites that are most relevant to them at a more affordable price,” Lim added.

Smart expects PisoNet to sustain its growth momentum in mobile data, which has been expanding at a 73 percent rate from last year, as more Filipinos gain access to the Internet through their mobile phones.

PisoNet will be delivered through a pioneering mobile internet platform which enables Smart’s mobile phone data network to manage and shape the flow of Internet data traffic. As a result, network resources are used more efficiently to deliver the Internet services that people want.

“This platform unmatched by any other country in the world is a technical breakthrough that enables us to offer very affordable Internet ‘sachets’ sustainably,” Lim said. “This means we can keep offering best-value mobile Internet products for as low as ‘piso’.”

This enables Smart to offer data services in “sachets” without sacrificing consumer experience, allowing subscribers to pay only for the Internet services that they need on an “always on” basis.

The same platform also powers PowerApp, the telco’s suite of mobile Internet packages that allows subscribers to access Internet bundles—such as Social, Photo, Email, Chat, and individual apps—for as low as P5 per day.

“This is the Holy Grail for Internet advocates who want to bridge the digital divide while sustaining quality of service. And we’ve taken one big stab at it, using this groundbreaking platform targeted at one of the largest prepaid markets in the world,” said Dennis Mendiola, co-founder of Smart subsidiary Chikka, which developed the platform.

Telcos around the world face the challenge of connecting “the next 5 billion users” who are largely prepaid users with limited budgets for mobile Internet usage.

“Telcos around the world until now just offer data packages akin to ‘eat-all-you-can’ buffets at a premium price with little regard for efficient use of data resources. Our platform allows Smart to offer data at much higher levels of efficiency, thus making it possible for us to offer much more affordable prices,” said Mendiola.

To avail of the promo, Talk ‘N Text subscribers should text PISONET to 5555.

The PLDT Group’s total cellular subscriber base at end-June stood at 68.9 million, broken down as follows:
Smart, 25.6 million;
Talk ‘N Text, 28.1 million; and
Sun Cellular, 15.3 million.

The group’s combined prepaid cellular subscriber base stood at 66.3 million while its postpaid subscribers, 2.6 million.

- Interaksyon

PH stock market pulls back from 15-month record

Philippine share prices pulled back on Tuesday, as investors took a breather from a rally that sent the benchmark index to a 15-month high.

At the Philippine Stock Exchange, the benchmark index shed 61.27 points, or 0.84 percent, to close at 7,253.67. The property counter led all indices in the red with a decline of 2.31 percent.

There were two advancers for every decliner, as 47 issues changed hands. Value turnover slid to P8.63 billion from yesterday's P10.13 billion, as 1.56 billion shares changed hands.

The most actively traded stocks were PLDT, Puregold, Ayala Land, Alliance Global and Metrobank. The top gainers were Medco, Island Information and Greenergy, while the biggest losers were Synergy Grid, Atok-Bug Wedge and Acesite.

"Finally finding a more compelling reason to be more aggressive on the sell side, investors made an early rush for the exits to protect their profits following a snap of a five-week, record-setting run in US stocks overnight," said Jun Calaycay of Accord Capital Equities Corp.

Calaycay said investors may have used the weakness on Wall Street as an excuse to take profits, as the PSEi reached overbought territories.

The Philippine benchmark index had chalked up gains in six out of the last seven sessions, interrupted only by a 2-point loss. The rally brought the PSEi to 7,314.94 yesterday, its highest finish since May 22, 2013 when it ended at 7,385.07.

US stocks eased last night as investors locked in gains following a run up that pushed the Standard & Poor's 500 Index to a record. The S&P 500 shed 0.3 percent to 2,001.54, while the Dow Jones Industrial Average slid 25.94 points, or 0.2 percent, to 17,111.42.

Investors are betting that below-forecast US jobs data will allow the Federal Reserve to delay raising interest rates. Policymakers next meet on September 16-17.

The Bangko Sentral ng Pilipinas is also holding its policy-setting meeting on Thursday, with bets on local monetary authorities keeping its hawkish stance after inflation in August stubbornly clung near a three-year high.

- Interaksyon

COL Model Portfolio as of 9/9/2014

TickerCompany NamePriceRatingFVBelow

Banks and Financials


Commercial and Industrial