Trader's Logbook

Dow less than 200 pts. from all time-high as investors digested another round of earnings reports and looked ahead to President Obama’s State of the Union address in the evening. He is expected to focus on the economy, jobs and the budget, while also speaking about gun control and immigration.

Local / News

ATI is expanding its operations at the Batangas Port by providing integrated ports and logistics services at the Batangas Container Terminal (BCT). BCT has an annual throughput capacity of 300,000 20-foot equivalent units (TEUs), which is ideal for storage of fast and slower-moving boxes. The 12-hectare facility is supported by two quay-side cranes, four rubber-tired gantries, trucks and loaders, with provision for 480-TEUs of reefer cargoes.

http://www.philstar.com/business/2013/02/13/908061/asian-terminals-expands-batangas-operations

BSC has entered into a joint venture with Malaysian company Petrosolve Sdn Bhd for the exploration, development, management and operation of oil wells in and outside the Philippines. BSC Pres. De Venecia said there are no definite projects yet but said there can be a number of exploration projects.

http://www.philstar.com/business/2013/02/13/908063/basic-energy-malaysian-firm-tie-oil-ventures

FOOD will hold special stockholders meeting to amend its articles of incorporation to accommodate its expanding business and prepare for its listing in the Singapore stock market.

• FOOD aims to venture into commercial fishing as well as breeding of marine, aquaculture, agriculture and farm stock products outside the Philippines.
• FOOD plans to list its shares on the Catalist Board of the Singapore Stock Exchange (SGX-ST) to allow the company to have flexibility in fund-raising. Earlier, the company formed a Singaporean unit that would serve as a trading and holding firm.

http://www.interaksyon.com/business/54879/alliance-select-seeks-changes-in-by-laws-ahead-of-singapore-listing

LTG acquired seven companies that owned a combined 22.72% stake in PNB-Allied Bank, “effectively setting in motion the consolidation of the banks in LTG.” It will also acquire additional indirect ownership through 4 companies that own a combined 7.77% stake; but have yet to increase authorized capital to accommodate investment of LTG.

After the merger of PNB and ABC on Feb. 9:

• PNB’s float decreased to 18.99% from 31.15%
• Office-in-charge Omar Byron Mier was appointed president of the merged bank.
• To factor in wider balance sheet, PNB will increase authorized capital to P70 billion from 50 billion and would be composed of about 1.75 billion common shares with a par value of P40 per share.
• Completion of integration will take about 18 to 24 months.
• PNB-Allied Bank has combined assets of about P550 billion to 560 billion and 671 branches; has the largest overseas footprint with about 115-120 offshore units.

http://business.inquirer.net/107363/ltg-buys-30-5-stake-in-pnb

LR seeks shareholders’ approval for several corporate moves that will allow it to pursue the development of a $1-billion casino complex along Manila Bay. Having set a stockholders meeting on March 22, LR plans to increase its authorized capital to P5 billion divided into 2.5 billion common and 2.5 billion preferred shares, up from the current P1.6 billion. To facilitate the capital hike, LR announced a 200-million stock dividend and plans to raise P1.75 billion through preferred shares. Proceeds from the P1.75-billion issuance of preferred shares to private investors will be used to finance the acquisition of additional bingo sites, the construction of Belle Grande Integrated Resort and Casino and the development of the Techzone project and Midas Hotel.

http://www.philstar.com/business/2013/02/13/908059/lrwc-seeks-stockholders-approval-1-b-project

PSE

• Expected to submit this week its revised draft rules for exchange-traded funds (ETFs) after the SEC, following a meeting last week with bourse officials, recommended “minor changes.” PSE is expected to submit revised ETF rules by next week.http://www.bworldonline.com/content.php?section=Corporate&title=Draft-ETF-rules-undergoing-’minor’-change&id=65761
• Wholly-owned clearing house Securities Clearing Corp. of the Philippines (SCCP) bagged a provisional license to operate as a securities depository which opens up a new – and potentially significant – revenue stream for the PSE group; however, signals a break from the depository platform of the Philippine Central Depository Inc. (PCD), which is operated by the PDS Group. The PSE owns about a fifth of the PDS group. A wholly-owned depository platform also gives PSE’s Capital Markets Integrity Corp. (CMIC) easier access to information necessary in the investigation of stock price manipulation cases and other violations of the securities laws.http://business.inquirer.net/107351/pse-unit-gets-securities-depository-license

PX yesterday received payment of its insurance claim of $25 million from Chartis Philippines Insurance. Inc. as earlier agreed upon. Proceeds would be used to defray the expenses incurred for the tailings spill incident in its Padcal copper-gold mine in Benguet last year.

• PX will comply with the Feb. 19 deadline set by the Mines and Geosciences Bureau (MGB) for the payment of the P1.034 billion fine imposed for tailings spill.
• The company also faces a P92.8 million fine imposed by the Pollution Adjudication Board (PAB) for the contamination of the Agno River and Balog Creek.
• PX is petitioning MGB to temporarily resume operations to be able to produce fresh tailings to fill the void in the compromised tailings facility before the rainy season. It would take about three to four months to produce the volume of silt needed for beaching. Stockpile and would not be sold until the Department of Environment and  Natural Resources (DENR) lifts the suspension order on mine operations.

http://www.philstar.com/business/2013/02/13/908067/philex-gets-25-m-insurance-payment-padcal-spill

Local / Sector

Seaports

Total cargo throughput rose by 1.80% to 3.21 million metric tons (MT) in 2012 from 178.28 million in 2011 amid weak global trade. Passenger volume, on the other hand, rose by 0.74% to 49.85 million last year from 49.5 million in 2011 due to impact of competition posed by airlines offering budget fares.

http://www.interaksyon.com/business/54912/seaports-register-anemic-growth-in-2012-passenger-cargo-volumes

Renewable Energy

DOE said renewable energy developers that put up their plants get first dibs on the feed-in-tariff (FIT). The FIT is a guaranteed rate that renewable energy developers can charge over a certain period. The DOE has capped the number of renewable energy projects to qualify for the incentive – mini-hydro (250 megawatts); biomass (250 megawatts); wind (200 megawatts); and solar (50 megawatts). Renewable energy plants that will not fall within the cap will have to sell their output at market prices.

http://www.interaksyon.com/business/54895/doe-to-grant-renewable-energy-perks-on-first-come-first-serve-basis

Local / Economy

For the entire 2012, exports grew by 7.6% to $51.994 billion from the previous year’s $48.305 billion. The 2012 growth was slightly lower than the revised 8% government target. UP economics professor and former budget secretary, Benjamin E. Diokno does not see a major rebound in exports due to the strong peso, and strained relations with China.

http://www.interaksyon.com/business/54873/2012-exports-growth-falls-short-of-govt-goal

Government’s debt seen to ease to 48% of gross domestic product (GDP) in 2013 as they advance efforts to manage the obligation portfolio; seen to improve, having settled at 49.5% as of end-2011. The ratio, which peaked at 78.1% at the height of the Asian financial crisis in 1998, was at 50.5% as of the end of the third quarter last year.

http://business.inquirer.net/107385/govt-debt-seen-easing-to-48-of-gdp-in-2013

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