Philippine market news and economic recap: July 7-11, 2008

Update on the Philippine market and other economic news, for the week ended July 7 to 11, 2008.

Total export earnings up but exports of electronic products decline

The country’s export earnings for the month of May went up by 2.3% to US$4.22 billion from US$4.13 billion in the same period last year. However, exports of electronic products, which accounted for 58.6% of total export earnings in May, decreased by 3.4% to US$2.47 billion from US$2.56 billion in the same period last year. The decline in electronics exports was attributed to the slowdown in the demand for electronic products, especially semiconductors, which recorded a decrease of 7.1%.

Foreign investments in Philippines rise by 326%

Foreign direct investments or FDI to the Philippines in April totaled US$269 million, rising by 326% or more than four times the US$63 million recorded in the same period last year. The aggregate January-to-April FDI level is now US$820 million, slightly lower than the US$1.45 billion recorded last year, due to the generally sluggish economic growth in other major markets.

RP gross international reserves reach $36.7 B

The country’s gross international reserves rose to US$36.7 billion in June from US$36.2 billion in May. The build up in reserves was attributed to proceeds from the privatization program of the National Power Corporation, as well as income from investments abroad by the BSP, credits from foreign financial counterparties, and revaluation gains.

T-bill rates rise

The 91-day Treasury bill offered by the Philippine government in July 2008 fetched an average rate of 5.699%, higher than the 3.673% rate during the auction on January 21, 2008. Total tenders amounted to P7.2 billion against the offer size of P2.24 billion. The 364-day T-bill rate, on the other hand, averaged 6.747%, up by 4.4 basis points from 6.703% during the auction on June 23, 2008. Total tenders reached P6.36 billion, against a P3 billion offer size.

Prices of crude oil continue to increase

Prices of crude oil soared to an intra-day high of US$147.27 per barrel during trading at the New York Mercantile Exchange on July 11, 2008 due to supply concerns. Crude oil futures settled at US$145.08 per barrel, slightly lower than last week’s close of US$145.29 per barrel.

Source: Philippine Stock Exchange