Philippine market news and economic recap: July 28-August 1, 2008
August 5, 2008
Update on the Philippine market and other economic news, for the week ended July 28 to August 1, 2008.
GMA delivers 8th SONA
President Gloria Macapagal-Arroyo delivered her 8th State of the Nation Address (SONA) on 28 July 2008 and defended that the expanded value added tax law, among others, allowed the Philippines to better weather the impact of food and oil price volatility. Various issues regarding food security, agrarian reform, energy, population control, peace and order, corruption, and the environment were also cited during the SONA. She also announced that telecommunication firms agreed to temporarily cut the cost of text messaging to P0.50.
Companies announce 1H 2008 incomes
Aboitiz Power Corporation (Stock Code: AP) reported that its net profit during the first half of 2008 expanded by 84% due to higher revenues from both its power generation and power distribution businesses. Other companies such as Manila Water Company (Stock Code: MWC) and International Container Terminal Services (Stock Code: ICT) also posted net income growth rates of 21% and 17%, respectively. The Bank of the Philippine Islands (Stock Code BPI) and Petron Corporation (Stock Code: PCOR), however, reported declines in net profit of 33% and 14%, respectively.
Stock index closes higher
The Philippine Stock Exchange Index (PSEi) gained 71.49 points or 2.9% last week to close at 2,584.21 points. Companies which posted the highest price increases last week include Rizal Commercial Banking Corporation (Stock Code: RCB), 11.3%; Lepanto Consolidated Mining Company “A” (Stock Code: LC), 10.6%; Lepanto Consolidated Mining Company “B” (Stock Code: LCB), 10.6%; and Metropolitan Bank & Trust Company (Stock Code: MBT), 10.1%.
Peso weakens to P44.23
The Philippine peso closed at P44.23 per dollar last week, lower by P0.16 or 0.4% from last week’s close.
Crude oil trades at a higher price
The price of crude oil futures settled at US$125.10 per barrel, higher by 1.5% from last week’s close of US$123.26 per barrel due to continuing supply concerns and Iran’s nuclear dispute.
Source: Philippine Stock Exchange