Philippine central bank sends stocks soaring with surprise rate cut

MANILA - Philippine shares led emerging Asian markets on Friday, surging 2.5 percent after the country's central bank delivered a surprise cut in interest rates to shore up a domestic economy struggling after months of on-off coronavirus restrictions.

The region's foreign exchange markets were largely higher, with new steps from the Bank of 

Thailand to stem gains for the baht seeing little success. The currency rose almost half a percent in morning trade.

Equity markets across Asia were up across the board, with Singapore gaining over 1 percent, as an improved global mood and the region's relative success in controlling the COVID-19 pandemic encourages investment.

Most of the region's emerging stock markets were set to post weekly gains of around 2 percent.

The Philippine central bank fuelled gains in Manila by cutting another 25 basis points off its main interest rates on Thursday, bringing them to a new low of 2.0 percent.

"Loose monetary policy could be good for stock valuations and could drive a further rally for local bond yields," said Jennifer Lomboy, a fixed income fund manager at First Metro Asset in Manila.

The Philippine stock index hit its highest since late-February, while the peso edged 0.2 percent higher.

Analysts and investors were unimpressed with the Thai central bank's announcement of easier rules for investing in foreign currencies and securities, its latest move to try and halt the baht's rise. 

The bank, which held off on an outright cut in interest rates on Wednesday, has warned again of the damage the baht's strength can do the economy after a more than 3 percent jump in the currency this month. 

"The measures seem to be more of the same old, same old, which is to encourage outflows," Kobsidthi Silpachai, the head of capital markets research at Kasikornbank said, arguing that the heart of the problem is high taxation. 

"Since excise taxes on imported goods are high, it suppresses imports, which makes the current account surplus even higher, which leads to a strong baht," he said. "We have seen many years of monetary measures... we need to try fiscal measures like tax reforms."

Bank Indonesia also surprised by cutting rates this week, by 25 basis points to 3.75 percent, dimming the appeal of its high-yielding local bond market.

The central bank governor said the rupiah, which dipped 0.2 percent on Friday, was still undervalued. The currency has been one of the outperformers among the region's emerging markets, climbing over 3 percent this month.

"We expect a possible rate cut in the near-term for as long as the rupiah remains on its current appreciation bias," said Nicholas Mapa, a senior economist at ING.

-reuters-

Philippine stocks see best week since June as virus slows, foreign buying up

MANILA - Philippine stocks surged 2.2 percent on Friday closing at 6,484.06 to end the week with their biggest gain since June, bolstered by the easing of restrictions as new coronavirus cases showed signs of slowing.

The Philippine stock exchange index saw a near 10 percent weekly gain, with shares of food and real-estate companies climbing most, as investors hoped for increased footfall in malls and hotels after curfew hours were trimmed earlier this week.

The rally was boosted further by foreign investors, as new daily coronavirus cases slowed in the last week and the government moved to reopen the economy, signalling better economic prospects, said Nicholas Mapa, ING's senior economist for the Philippines.

"This may be the reason for the recent rally, but we'll have to monitor the COVID-19 developments going forward," he cautioned.

Data from Refinitiv showed that foreigners, while still net sellers of Philippine equities so far in October, pumped in about 557.44 million pesos ($11.5 million) into Philippine equities across the last two sessions.

Yields on the Philippine ten-year benchmark bond, usually seen as a safer investment than stocks, have also climbed recently, signalling the return of optimism.

-reuters-  

Philippine stocks rise as virus cases slow

(Reuters) - Philippine shares hit their highest level

in over three months on Wednesday after a drop in new COVID-19

infections, while Taiwan's dollar rose the most among Asian

currencies as strong export orders lifted sentiment. 

    Manila's benchmark index was set to extend gains for

a third consecutive day, rising 2.7% to its highest since July

9, after the Philippines reported its lowest daily increase in

infections in four weeks.

    Sentiment has improved recently for Philippine stocks after

the passage of the 2021 budget aimed at underpinning an economic

recovery, and the relaxation of further coronavirus restrictions

in Manila.

    "While recent gains have been impressive, I think there is

still a long way to go in order for the benchmark stock index to

recover back to pre-pandemic levels," said Daniel Dubrovsky,

analyst at IG.

    "The challenge that Philippine equities face as a whole is

that about 40% of the benchmark is comprised of industrial

companies...which really need the support of a strong rebound in

global growth. While it is hard to say which sector could

outperform, monetary policy conditions seem to be supportive of

the real estate one." 

    Stock markets and currencies across the rest of the region

traded higher as growing optimism that U.S. lawmakers are

nearing a deal on a stimulus package helped draw money into

riskier Asian assets, sending the dollar to a one-month low.

    South Korea's won advanced 0.6% and the benchmark

KOSPI rose 0.3%, even as preliminary trade figures

showed exports out of Asia's fourth-largest economy fell again.

    Taiwan's dollar extended its winning streak for a

third consecutive day, rising 1% to 28.64 per dollar after data

showed export orders rose for a seventh consecutive month in

September.

    The currency has gained around 5% against the greenback so

far this year, having benefited from stronger exports from the

tech powerhouse island, helped by demand for laptops and tablets

to support the work-from-home trend during the COVID-19

pandemic. 

    "While central bank is likely to be monitoring the situation

carefully and perhaps intervene marginally, they have little

choice but to resign to the trend," said Mahesh Sethuraman,

deputy head of global sales trading at Saxo Capital Markets.

    "While it does hurt the competitiveness of their export

economy to some extent, given Taiwan is one of the few economies

to bounce back from COVID swiftly, that gives the central bank

some buffer to withstand currency appreciation." 

    

    HIGHLIGHTS:

    ** Thailand's 10-year government bond yields are down 1.5

basis points at 1.375%

    ** In the Philippines, top index gainers are Alliance Global

Group Inc up 5.73% at 7.93 pesos, Robinsons Land Corp

 up 5.52% at 15.3 pesos, Bank of the Philippine Islands

 up ​ 4.35% at 72 pesos

    * Top losers on FTSE Bursa Malaysia Kl Index include

Top Glove Corporation Bhd down 4.43% at 9.06 ringgit;

Hartalega Holdings Bhd down 2.94% at 18.48 ringgit;

Sime Darby Plantation Bhd down 1.61% at 4.9 ringgit

    

    

  Asia stock indexes and                                        

 currencies at   0418 GMT                                 

 COUNTRY   FX RIC     FX DAILY  FX YTD    INDEX   STOCKS  STOCKS

                             %       %           DAILY %   YTD %

 Japan                   +0.19   +3.15              0.41    0.03

 China     <CNY=CFXS     +0.33   +4.63             -0.35    8.73

           >                                              

 India                    0.00   -2.83              0.89   -1.36

 Indonesi                +0.17   -5.09             -0.02  -19.06

 a                                                        

 Malaysia                +0.10   -1.30             -0.59   -5.46

 Philippi                -0.08   +4.33              2.74  -19.65

 nes                                                      

 S.Korea   <KRW=KFTC     +0.56   +2.07              0.31    7.65

           >                                              

 Singapor                +0.12   -0.83              0.39  -21.23

 e                                                        

 Taiwan                  +0.97   +5.07              0.24    7.47

 Thailand                +0.16   -4.20              0.69  -22.84

 

 (Reporting by Shriya Ramakrishnan in Bengaluru)

-reuters-

Buy, sell or hold? How to navigate the coronavirus-infected stock market

MANILA -- Wild swings in stock prices here and abroad due to the coronavirus pandemic show the nature of the equities market: it's volatile, an analyst said Thursday.

How investors should respond will depend on their tolerance for risk, the size of their emergency fund, even their age, said Marvin Fausto, president and CIO of COL Investment Management.

Fausto gave some tips on how to manage stock portfolios during the COVID-19 crisis, which formed many countries, including the Philippines, to lock down millions.

BUY STOCKS IF...

"Wealth accumulators" in their 30s and 40s have many years left in terms of investing and can take advantage of low prices, provided they have emergency funds, Fausto said.

"If you have a long way to go, it may good for them to buy because they can accommodate that kind of volatility," he said.

SELL STOCKS IF...

Retired persons who rely on fixed income can reduce their exposure to risky assets such as stocks, Fausto said.

These types of investors can "sell and be comfortable with what you have," he said.

OR, JUST HOLD

The equities market is inherently volatile and at the mercy of global events such as COVID-19. As with most cycles, financial markets recover, Fausto said.

"Don't look with too much concern with how the market moves. That's how it moves, it goes up and down," he said.

source: news.abs-cbn.com

Asia stocks plunge on coronavirus fears, oil prices

TOKYO - Stock markets plunged around Asia on Monday, as panic selling set in with traders fretting over the economic impact of the new coronavirus and digesting a free-fall in the oil price.

By mid-morning, the benchmark Nikkei 225 index had dropped 5.10 percent or 1,058.06 points to 19,691.69, while the broader Topix index was off 5.01 percent or 73.69 points to 1,397.77.

Other markets in the region were also suffering with Hong Kong stocks down 3.8 percent at the open, Australia off more than 5 percent and equities in New Zealand and South Korea both down by just under 3 percent. 

In China, the benchmark Shanghai Composite Index dived 1.56 percent while the benchmark Philippine stock exchange index opened down nearly 4 percent. 

Driving the declines was a ferocious sell-off in the oil markets sparked by top exporter Saudi Arabia slashing prices -- in some cases to unprecedented levels -- after a bust-up with Russia over oil production.

The two main oil contracts were both down about 20 percent in morning Asian trade, with West Texas Intermediate sliding to around $32 a barrel and Brent crude to $36 a barrel.

The foreign exchange markets were also extremely volatile, with traders snapping up the yen -- seen as a hedge against global instability -- and selling off the dollar amid uncertainty over coronavirus in the United States.

Marito Ueda, senior trader at FX Prime, told AFP: "Fears over the virus's impact on the global economy and a plummet in US yields had investors seeking the safe-haven yen."

"It is essentially flight from the dollar," he added.

THICK WITH FEAR

A stronger yen tends to push down Japanese stocks, and exporters from the world's third-top economy were especially hard-hit, with Nissan and Sony down more than five percent and Toyota down 3.6 percent.

Banks also plunged, with Sumitomo Mitsui Financial trading down nearly four percent and Mitsubishi UFJ Financial off by almost five percent.

Stephen Innes, chief market strategist at AxiCo, said the markets were suffering from a perfect storm of factors.

"The yen surged... at the market open this week as investors dove into safe havens on accelerating COVID-19 cases in Europe, and as Saudi Arabia triggers a price war for oil, adding another level of unwanted panic to a market already thick with fear," he said. 

The dollar fetched 104.15 yen in early Tokyo time, after dipping to around 103.83 yen in Sydney time, the lowest level since November 2016. That compares with 105.40 yen in New York late Friday.

Markets were not helped by data showing that the Japanese economy had declined more than initially thought -- even before the outbreak of the coronavirus.

The country's gross domestic product during the October-December quarter was revised down to a contraction of 1.8 percent, compared to an earlier estimate of 1.6 percent.

"Unfortunately, any recovery in Q1 has been nipped in the bud by the global spread of the coronavirus," said Tom Learnmouth, Japan economist at Capital Economics.

Agence France-Presse

Fruitas Holdings files for IPO to fund business expansions

MANILA - Fruitas Holdings Inc. on Monday filed for an initial public offering (IPO) worth P1.2 billion with the Securities and Exchange Commission to fund its planned business expansions.

Proceeds from the IPO will be used to fund store network, commissary and food park expansions as well as acquisitions and debt repayment, the company said in a statement.

Fruitas Holdings said it planned to offer up to 533,660,000 primary common shares with an over-allotment option of up to 68,340,000 outstanding common shares at a maximum of P1.99 each.

“We view the potential listing on the Philippine Stock Exchange as part of our growth journey and are excited to have taken the first step by filing our registration statement," said Fruitas President and CEO Lester Yu.

BDO Capital Investment Corp. and First Metro Investment Corp. have been appointed as joint issue managers, joint bookrunners, and joint lead underwriters for the offering, the company said.

The offer period is intended to run from Nov. 18 to Nov. 22 and is subject to regulatory approvals, the company said. Target listing is end of 2019, Fruitas Holdings said.

The company has over 20 brands under its portfolio and 949 stores as of June 2019.


-- with a report from Michelle Ong, ABS-CBN News

source: news.abs-cbn.com

China looks to connect with ASEAN financial markets: PSE official

China is looking at capital market integration and exploring how it can connect with ASEAN financial markets as part of its Belt and Road initiative, an official of the Philippine Stock Exchange said Friday.

PSE chief operations officer Roel Refran also said the ASEAN Trading Link initiative needs to be further studied as the Philippines is not yet "as deep in product offerings".

source: news.abs-cbn.com

Poultry-related stocks fall as investors react to bird flu outbreak

Listed poultry farms and chicken restaurants took a hit Monday as investors reacted to the Philippines' first ever bird flu outbreak in Pampanga. - Business Nightly, ANC, August 14, 2017

source: news.abs-cbn.com

Asia shares encouraged by Wall Street record, await Fed outlook

SYDNEY - Asian shares crept higher on Wednesday after Wall Street notched another all-time high, while the dollar and bonds awaited clarity on the Federal Reserve's future path for US policy after a likely rate rise later in the day.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.2 percent, while Japan's Nikkei put on 0.5 percent.

The Philippine Stock Exchange Index opened 7,933.75, up 0.2 percent.

Markets took their lead from the Dow, which rose 0.44 percent, while the S&P 500 gained 0.45 percent and the Nasdaq 0.73 percent.

The S&P 500 technology sector rebounded 0.9 percent, following its biggest two-day decline in nearly a year. Big tech names, including Microsoft and Facebook , led the index higher.

Chinese May industrial output and retail sales figures out on Wednesday morning (0200 GMT) are forecast to show slightly slower but still solid growth, but will likely just be an appetizer to the Fed's main course.

The central bank is scheduled to release its decision at 1800 GMT on Wednesday with a news conference to follow from Chair Janet Yellen.

Investors fully expect a rate rise largely because Fed officials have told them to, so attention will rather be on the outlook for policy and particularly when the central bank might begin to wind down its massive portfolio of US debt.

"The main focus this week will be on the Fed's balance sheet policy," said Michelle Girard, chief US economist at RBS.

"While we expect the formal announcement of a change in its balance sheet policy to be made in September, we do not rule out the possibility that strong guidance regarding the time frame for tapering is delivered sooner."

While the Fed still has another hike pencilled in for this year, a recent run of soft inflation data has left fund futures implying only a 40 percent chance of a move by December.

The market's five-year outlook for inflation in five years time has been falling steadily and currently stands at a seven-month trough of 2.18 percent.

It had spiked as high as 2.52 percent last November in the wake of President Donald Trump's surprise election victory.

This leaves the market vulnerable to any hawkish spin from the Fed, which would likely slug Treasury prices while lifting the embattled US dollar.

The currency could do with the help having taken a fresh knock on Tuesday when the head of Canada's central bank put his own hawkish spin on the outlook for rates there.

The US dollar fell as far as C$1.3209, its lowest since Feb. 28, having shed two cents in as many days.

It also lost ground to sterling after UK inflation data surprised on the high side and amid reports Britain's ruling Conservative Party was likely to sign a deal on Wednesday to form a minority government.

Against a basket of currencies, the dollar was a whisker firmer on Wednesday at 97.016 and little changed on the Japanese yen at 110.04.

In commodity markets, oil slipped after an industry group reported a surprise rise in crude stocks, confounding expectations for a drawdown.

Benchmark Brent crude retreated 47 cents to $48.25 a barrel while US light crude shed 52 cents to $45.94. (Editing by Kim Coghill) - with ABS-CBN News

source: news.abs-cbn.com

Asia stocks fall in Wall Street's wake, dollar holds below 14-year peak

SINGAPORE - Asian stocks retreated in subdued trade on Friday after Wall Street took a breather from its surge since the U.S. election, while the dollar hovered below the 14-year high set earlier this week.

European markets look set to open flat to slightly lower, with financial spreadbetter IG Markets expecting Britain's FTSE 100 to open down 0.1 percent on a shortened trading day, and Germany's DAX and France's CAC 40 to start the day little changed.

MSCI's broadest index of Asia-Pacific shares outside Japan, fell 0.4 percent to a five-month low. It was heading for a drop of 1.8 percent in its second consecutive week of declines.

China's CSI 300 index dropped 0.7 percent, dragged lower by brokerage and insurance shares, on expectations regulators will tighten supervision over online insurance products. The index was on track to lose 1.1 percent for the week.

Hong Kong's Hang Seng retreated 0.5 percent, and was poised for a similar weekly loss.

Japan's Nikkei, closed for a holiday on Friday, edged up 0.1 percent for the week. The index has posted seven straight weeks of gains, its longest winning streak since early 2013, boosted by the yen's weakness in the face of a surging dollar.

Overnight, U.S. equities posted their first back-to-back daily declines of the month in light trading ahead of the Christmas weekend. U.S. indices fell as much as 0.4 percent on Thursday.

"Santa has taken a leave of absence into the end of the week," Jingyi Pan, market strategist at IG in Singapore, wrote in a note. "Asian indices could remain depressed into the end of the year."

Wall Street stocks have been on a tear since the U.S. election on expectations that Donald Trump's promised fiscal stimulus will boost economic growth and company profits. The Dow Jones Industrial Average has surged 8.7 percent since before the election results were announced.

Markets globally appeared be on pause for the holidays, with the MSCI World index down 0.1 percent on Thursday, and little changed on Friday.

Europe's STOXX 600 index closed down 0.2 percent on Thursday, with the broader downtrend offsetting expectations of a government bailout for troubled Italian lender Monte dei Paschi di Siena, which closed at a record low on Thursday.

Early on Friday, the Italian government approved a rescue of the world's oldest bank, after it failed to raise enough money from private investors to stay afloat.

Prime Minister Paolo Gentiloni told reporters his cabinet had authorised creation of a 20-billion-euro ($21 billion) fund to prop up Italy's embattled banking sector, with Monte dei Paschi expected to be first in line for help.

Deutsche Bank and Credit Suisse said separately on Friday they had agreed to deals of $7.2 billion and $5.3 billion respectively with the U.S. over their sales of mortgage securities in the run up to the 2008 financial crisis.

In the foreign exchange markets, the dollar was subdued, having scaled its highest point since December 2002 on Tuesday. It has since hovered below that level, with traders unwilling to make any big moves ahead of the holiday weekend.

The dollar index, which tracks the greenback against a basket of six global peers, slipped 0.1 percent to 102.98, down from Tuesday's 103.65 peak. It is poised to end the week flat.

The dollar inched down 0.2 percent against the yen to 117.355, and was on track for a 0.55 percent loss for the week.

Still, most traders retain positive bets on the U.S. currency, particularly after upbeat economic data including business spending, and an upward revision to third-quarter economic growth on Thursday.

"The trend is definitely for a stronger dollar," Stephen Casey, senior currency trader at Cambridge Global Payments in New York. "Any dip in the dollar will a buying opportunity."

The euro edged up 0.2 percent to $1.0453 on Friday, on track for a flat end to the week.

Sterling was little changed at $1.229, on track for a weekly slide of 1.6 percent.

The muted investor sentiment weighed on the Australian dollar AUD=, which dropped 0.1 percent to $0.7207, fractionally above a seven-month low touched Thursday and repeated Friday.

Oil prices slipped as investors took profits after Thursday's gains driven by strong U.S. economic data and optimism that crude producers would keep to their pledge to limit output.

U.S. crude pulled back 0.5 percent to $52.69 a barrel on Friday, but remains on track for a 1.5 percent gain for the week.

Global benchmark Brent crude fell 0.4 percent to $54.85, set to close the week 0.7 percent lower.

As risk appetite ebbed on Friday, the decline in gold prices, which have languished in the wake of the dollar's rally, reversed. Spot gold climbed 0.3 percent to $1,131.79 an ounce, shrinking its weekly loss to 0.2 percent.

source: news.abs-cbn.com

Pizza chain Shakey's files for IPO

MANILA - Restaurant chain Shakey's Pizza Ventures Incorporated (SPAVI) hopes to raise P5.5 billion via an initial public offering (IPO) this year.

SPAVI has filed a prospectus with the Securities and Exchange Commission (SEC) to sell around 352 million primary and secondary shares, including 46 million shares to cater for extra demand, at a maximum price of P15.58 each.

The offer price is expected to be finalized in November before its projected listing in December 2016.

“We intend to use the offer proceeds for the expansion of our in-house commissary, working capital requirements, potential acquisitions, and repayment of debt,” the company said Monday.

SPAVI's in-house commissary supplies the bulk of its pizza dough and crust, which is used to create its trademark Thin Crust pizza.

Shakey's was first established in the United States in 1954. It then opened its first restaurant in 1975. Since then, it has been famous for its Thin Crust pizzas, its chicken and mojos.

SPAVI owns the rights to the Shakey's trademark in the Philippines, where it has 177 stores all over the country. Seven more stores are expected to open before the end of the year, with 20 more stores in the works for 2017.

The company also owns the rights to the Shakey's brand for the Middle East, Asia, China, Australia and Oceania markets.

Majority of SPAVI is owned by Century Pacific Group Incorporated (CPGI), parent company of Century Pacific Food Incorporated (CNPF).

Earlier this year, CPGI and GIC, Singapore's sovereign wealth fund, partnered to acquire majority of the pizza business from the Prieto family, which still holds a minority stake in SPAVI.

source: www.abs-cbnnews.com

Analyst: Look for cheap and good stock buys

The current 7,500-point level of the Philippine Stock Exchange Index makes the Philippines an expensive market, but April Lee-Tan of COL Financial said, the key here is to look for cheap and good buys.

"If you look at almost all the blue chips, almost everything is expensive except maybe for those that have some problems or are not as attractive fundamentally," she noted.

"So we're thinking that maybe there will be some rotation to cheaper stocks like FGEN.. There might be some rotation to smaller cap stocks which were in some ways ignored since 2013, like VLL and Eastwest," she added.

--report by Michelle Ong, ABS-CBN News

source: www.abs-cbnnews.com

Salve Says: A beginner's guide to investing in stocks

The stock market is fraught with risk, so it is important to arm yourself with investing smarts before you part with your hard-earned cash.

When you buy a share in a company, you become a part owner without worrying about running its daily operations.

You make money when the company earns a profit. However, you also lose money when the company does.

You can make a profit from the stock market by selling your stocks when the market prices them higher than when you bought them, Marvin Germo, a registered financial planner told ANC's "On The Money."

Share prices fluctuate every trading day depending on how the company performs. When there's negative news about a company, like when it reports a loss instead of a profit, its share price can go down.

An investor can also earn through dividends, which the company pays existing shareholders at specific periods.

"If you're a person who wants to be more passive, you want to get dividends, the more shares you accumulate, the more blocks you get, later on, the more dividends you will get also," Germo said.

The first step in investing in equities is to open a brokerage account and choose the right stock broker, said Salve Duplito, resident financial adviser of "On The Money,"

A directory of stockbrokers is available on the Philippine Stock Exchange (PSE) website.

Duplito said investors should find a broker whom they trust and works for a well-managed brokerage house that will allow them to transact easily online, which can be cheaper.

source: www.abs-cbnnews.com

PSE hit by 40-min trading halt as tech glitch hits system

Trading has been halted at the Philippine Stock Exchange (PSE) due to a technical problem Friday.

The PSE has informed traders to standby for further announcements, while loud complaints of orders being rejected could be heard from the trading floor at around 10:30 AM.

The Philippine Stock Exchange Index (PSEI) was at 7,198.46, down 34 points or 0.48% before trading was halted.

The PSE flashed a message on the main board asking traders to re-log into their PSEtradex workstations and the Market would resume at 10:58 AM. Ticker appears to be frozen.

Trade halted at PSE pic.twitter.com/8uZ30pN64a

— Warren de Guzman (@wddeguzman) April 8, 2016

 Traders say the market has not resumed. The PSEI however did move to 7,200.83, down 32 points or 0.44%.

PSE President Hans Sicat said the technical glitch Friday that halted trading for 41 minutes was due to a network related issue. PSE is currently contacting their third party service providers for further information. He stressed this is very different from the August trading halt that lasted 5 hours.

Sicat declined to blame it on slow internet, saying PSE has to further investigate.

Last year, trading was halted three times in August. On August 25, trade was halted for 5 hours, the longest trading halt ever for the PSE related to a technical glitch.

The halts happened after the current trading system, PSETradeXTS was adopted on June 22, 2015. That system was developed by NASDAQ but the PSE stressed the halts had nothing to do with the new system.

Trading was also halted in May 2014 when an older trading system was in place.

The PSE has a circuit breaker, or a threshold that would automatically suspend trade if volatility becomes excessive. The threshold for that is a change of 10%.

source: www.abs-cbnnews.com

PSE trading halted briefly due to technical glitch

MANILA - Trading at the Philippine Stock Exchange (PSE) was suspended for a few minutes Tuesday morning due to a technical glitch.

In an advisory issued at around 10:30 a.m., PSE said, "market halted due to incorrect reference prices reflected in PSETradeX. The exchange is taking appropriate action to resolve the matter."


Trading resumed at around 11:15 a.m.

The PSETradeX is the new system being used by the PSE to enable the stock exchange to handle up to five times the transactions compared to the previous trading system.

The new system, which is developed by NASDAQ, was launched in June.

source: www.abs-cbnnews.com

PSE launches new trading system

MANILA – The Philippine Stock Exchange is using a new system to enable the stock exchange to handle up to five times the transactions compared to the previous trading system.

The new system, PSEtrade XTS, is developed by NASDAQ and will replace the current PSEtrade platform which was provided by NYSE Euronext Technologies SAS and has been used since 2010.

Aside from the capability to handle more volume, the new system is also more user-friendly.

The use of the new trading system does not require any additional fees from investors and other stakeholders.

NASDAQ’s trading technology is also used by ASEAN Exchanges like Bursa Malaysia, Singapore Exchange, and the Indonesia Stock Exchange.

The new system's launch was earlier scheduled for June 1 but was delayed after the Securities and Exchange Commission’s requested for more time to test a surveillance system connected to the Tradex. -- Report from Michelle Ong, ANC

source: www.abs-cbnnews.com

PSE fined for violating SEC freeze order

MANILA – The Philippine Stock Exchange (PSE) has been fined P100,000 for allegedly violating an order of the Securities and Exchange Commission (SEC) to observe the status quo on listing requirements.

In a disclosure, the PSE said it was notified about the penalty through a letter from the SEC.

PSE said the fine was for the “alleged violation of a standing order of the SEC to observe status quo prior to the implementation of the PSE requirement for applicants for initial public offerings and listings by way of introduction to engage a bank-owned stock transfer agent.”

The stock exchange said it will file a request for reconsideration with the SEC.

source: www.abs-cbnnews.com

Tennis stars bring excitement to PSE trading floor

MANILA, Philippines - Tennis stars led by Britain's Andy Murray and Slovakia's Daniela Hantuchova brought excitement to the Philippine Stock Exchange on Friday morning.

Murray and Hantuchova led the symbolic bell ringing at the Ayala trading floor, along with fellow tennis players Treat Huey, Carlos Moya and Sania Mirza.

The tennis stars, who are in Manila for the three-day International Premier Tennis League (IPTL) competition, threw balls at traders, and posed with photos.

Reuters reported after the trading ceremony, Murray was asked about his recent engagement to his long-time girlfriend Kim Sears.

"Oh, I'm very much looking forward to it, looking forward to it, thank you," he said.

Meanwhile, Philippine shares brushed off the disappointing third quarter GDP results, closing 0.40 percent higher at 7,294.38. - With Reuters

source: www.abs-cbnnews.com

Are you ready to invest in stocks?

MANILA, Philippines - Bull or bear? Red, orange or green? Dovish or hawkish? These are the terms you will need to learn if you decide to start investing in the stock market.

This year, the Philippine stock market broke benchmark records and attracted many first-time investors. Of late, the market has become bearish, causing concern among these same individuals.

When you purchase a share of stock, you actually become a fractional owner of the corporation. Of course, the percentage of your ownership depends on the number of stocks you purchased. Let’s say you bought 5,000 shares of common stock in a corporation with 100,000 outstanding shares. This means that you have a five percent ownership interest in it.

While stocks have consistently outperformed other forms of investments in terms of profitability, it is decidedly the riskiest of the lot. Most want to enter at the best time – but as many have discovered, it’s time in the market that counts, not timing it.

If you are considering buying stocks and playing the market, here are some things to watch out for:

1 Are you stock-market ready?

Because of its volatile nature, make sure you use only your extra money when trading in the stock market. Investing in the market should not affect your current lifestyle and future plans; nor should you resort to borrowing just to get in the game. Manage your expectations of returns and be realistic. It is also advisable to set a limit to the amount of money you are willing to risk, and accordingly, get out as soon as you have reached your investment cap.

2 Know your stocks.

There are different classifications of stocks trading at the Philippine Stock Exchange (PSE). Common stocks are the most popular with shareholders entitled to partial ownership, profits, and voting rights. There are two types of common shares: Class A shares are for Filipino investors and Class B for both Filipinos and foreigners. As its name implies, preferred stocks are a class above common stocks with shareholders entitled to a fixed minimum amount of dividends as declared by the company. Cumulative preferred stocks are even more special as its shareholders have prior rights to dividends over common stock holders. The stockbroker is your agent, buying or selling upon your advice. Be sure yours is of good standing at the PSE.

3 Do your homework.

Don’t invest in a firm just because of an unconfirmed rumor from an undisclosed source. Study the firm’s fundamentals. What is its share of the market? What is its significance in the industry? What are its development plans and its growth opportunities? How is it performing financially?

There are a number of ways by which you can get the answers to these questions. Read the stock market coverage of the newspapers. Watch relevant programs on television and access the Internet for the latest stock market information. Go to the company’s website and look at its annual reports, reviewing its financial statements, past achievement, and future plans.

4 Manage your risks.

As a stockholder, you can expect returns in the form of dividends or capital gains. Dividends depend on the company’s profitability and may be paid in the form of cash or stock. Capital gains pertain to the increase in the market value of your stock. As previously mentioned, investing in the stock market can be a risky proposition. Dividends are not fixed; nor are they automatic. They may be declared or not by the company. Capital gains, meanwhile, depend on the movement of the price of your stock, its value going up or down at any given day.

Such are the risks that investors have to deal with. Manage your risk by investing in different stocks from different industry sectors. Resist the temptation of putting everything you have in one stock – even if that one stock seems to be experiencing an upward trend. It is also a good idea to determine the maximum level of loss that you can incur. Once that level is breached, get out.

5 Keep a steady eye on your investments.

Watch the movement of the market carefully. Keep tabs on your stocks, noting any upward or downward trend in trading. Watch also for developments in the industry as well as the economy in general for issues or events that might affect the performance of the company or your stock. If the company consistently registers poor performance with low profits, it may be time to evaluate your ownership of it.

source: www.abs-cbnnews.com

Alaska files for delisting from PSE

MANILA, Philippines - Alaska Milk Corp. on Monday filed a petition for voluntary delisting from the Philippine Stock Exchange.

This comes as the Dutch dairy giant Royal Friesland Campina formally filed a tender offer notice to acquire the remaining minority stake in Alaska.

In a disclosure, Alaska said the tender offer period will run from September 5 until October 2.

The shares will be purchased by FC Philippines by way of a block sale, and will be crossed on Philippine Stock Exchange by October 16.

After completing the tender offer, FC Philippines is hoping Alaska Milk will be delisted from PSE's official registry by November 5.

"On the basis of the foregoing, we hereby request for PSE's approval of our petition, November 5, 2012, as the effectivity date of the delisting of the AMC shares," Alaska said.

FC Philippines want to buy the remaining 14.94 million common shares of Alaska. These will be acquired at P24 per share, for a total of worth P358 million.

Last March, the Uytengsu family sold 535.7 million shares to Campina, representing 60.8% of Alaska's outstanding shares, at P24 per share. The deal was valued at P12.86 billion.

source: abs-cbnnews.com