Real Estate Investment Trust (REIT) Update In The Philippines

Here is an article excerpted from the website-post of the Phil. Stock Exchange dated last May 28, 2012 which tells the status of REIT in the Philippines. This news are very informative for those who are planning to invest their funds with these kind. of security.

PSE revives discussion on REITs

 

     The Philippine Stock Exchange (PSE) announced today that it is currently reviving talks with industry and investment stakeholders to address the current issues on the Real Estate Investment Trust (REIT), with the goal of finding a workable framework acceptable to all parties. Just recently, the PSE had successfully organized a public forum to discuss the various issues on the REIT and confirm the benefits of the REIT to the country. Key representatives from the government, including Senator Edgardo Angara (author of RA 9856- REIT Law), as well as the various representatives from the industry and investment community participated in the forum. “Based on the feedback that we received during the forum, as well as the various queries from potential REIT investors, we gather that there is still overwhelming interest in investing in REITs in the Philippines,” PSE President and Chief Executive Officer Hans Sicat said. “When we get the REITs listing going, we estimate that the Philippines can generate at least $2.4 billion in new investments from the private sector, because of the additional capital that the REIT structure can provide. It is quite unfortunate however that all the potential issuers have decided to defer their REIT plans indefinitely,” he added. The REIT law was passed in 2009, and subsequently, implementing rules were issued by both the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR) last year. However, the interest in participating in the REIT from any of the industry players have been dampened by the stringent rules related to the minimum public ownership, as well as the imposition of value added tax or VAT and the requirement of escrow. Under the revised SEC rules, the minimum public ownership (MPO) required for a REIT to be entitled to the tax incentives is at least 40% in the first year, which should be increased to 67% by the end of the 3rd year. The industry players find the increase in the MPO to 67% unappealing, because this merely creates a huge market overhang. REIT issuers raised concerns on being forced to unload prospectively a significant equity stake in the REIT company as it is uncertain whether or not the domestic market may be able to absorb this in the future. At the same time, if these REIT developer or sponsors will be forced to retain a very small stake in the REIT company, Philippine REIT issues will become less attractive to foreign investors. This is because of the possibility that the interests of the REIT and its sponsor may no longer be necessarily aligned, therefore increasing the likelihood for the Philippine REITs to fail in the future. The BIR further imposed a requirement that REIT companies have to set aside in escrow an amount equivalent to the tax incentives and this amount will be forfeited in favor of the government should the REIT company fail to increase the MPO to 67% after the 3rd year. There have been concerns raised on how this requirement can be aligned with the requirement of the law to declare up to 90% of its yearly earnings as dividends. The other issue pertains to the imposition of VAT on initial asset transfers to the REIT. In order to set up a REIT, the potential issuer must form a REIT corporation to which the issuer will have to transfer its REIT-able assets. In previous years, such transfers were tax free and were not subject to any form of tax. Recently however, the BIR decided to subject these transfers to VAT. The imposition of the VAT, if based on the fair market values of the properties, may dampen the yields on Philippine REITs, further making them uncompetitive compared to regional counterparts. According to PSE, the imposition of VAT may likely be more acceptable to the issuers if the BIR can clarify that the basis for its VAT computation would be the current “assessed” values of the properties to be transferred, the same asset valuation appearing in their real property tax declarations. “While we understand the need of the national government to protect its revenue streams, we believe that over the long term, the benefits of the REIT to the whole economy will far outweigh its perceived negative short term effects on the government’s revenues. We also believe that given the improved ratios of the country, any perceived reduction in upfront revenues should not significantly impact on the objectives of the government at the fiscal front. We hope we can find a reasonable middle ground that addresses the concerns of both sides,” Mr. Sicat said.

For more helpful information regarding this matters, you may visit this link: http://www.pse.com.ph/REIT/

July 13, 2012 Philippine Stocks Index Actively Traded Stocks

A recent upgrade of the Philippine credit rating to a point one knots below investment grade was recently graded this month by private agencies Moody's and S&P (Standards & Poor). It is because of the positive economic outlook of international investors to this country together with the other ASEAN countries. In the first quarter of this year it was found out that the breakout nations with higher GDP rate throughout the world is China and was seconded by the Philippines. The regional outlook of foreign investors to this five ASEAN countries is very bullish amidst  the danger of equity investments currently taking place in the European and US zones. Foreign fund & big institution managers are eager to invests their funds in these growth areas. Last June this year  MSCI Asia Pacific have included three companies in the Philippines in their recommended list of viable stocks. These includes Puregold Price Club Inc., Philix Petroleum Corp., & DMCI Holdings.

Here are the current actively traded securities in the Philippine bourse.

1. Ayala Land Inc.
2. Philippine Long Distance Telephone
3. GT Capital Holdings
4. Megaworld Corporation
5. Abacus Consolidated Resources
6. SM Prime Holdings Inc.
7. Metro Pacific Investment Corp.
8. JG Summit Holdings Inc.
9. Robinsons Land Corporation
10. Alliance Global Group Inc.
11. Security Bank
12. Ayala Corporation
13. Puregold Price Club, Inc.
14. BDO Universal Bank
15. SM Investment Corp.

Abacus Consolidated Resources is the only third liner stocks that belongs to today's top actively traded stocks. GT Capital Holdings is the recent IPO stock offered almost two months ago which is managed by the Metropolitan Bank &Trust Company. All other stocks are included in the Philippine main index except Security Bank & Puregold Price Club Inc.

"Breakout Nations: In Pursuit of the Next Economic Miracles"

The title of this blog is a book written by Ruchir Sharma. Let me share to you a good news from yahoo finance describing the status of the Philippine economy in the coming decade as explained by Sharma in his book "Breakout Nations". 

The New “BRICs”

http://finance.yahoo.com/blogs/daily-ticker/brics-123351582.html

By Bernice Napach

The BRIC countries—Brazil, Russia, India and China—were the stars of emerging markets in the last decade, but now their growth is slowing. So who will be the next big leaders among developing economies?

Ruchir Sharma, head of emerging market equities and global macro at Morgan Stanley, tells The Daily Ticker's Dan Gross that the next countries investors will flock to are Poland and the Czech Republic in Europe and the Philippines, Indonesia, Thailand and Sri Lanka in Asia. He discusses them all in his new book, "Breakout Nations: In Pursuit of the Next Economic Miracles."

Sharma defines breakout nations as countries that beat economic expectations by a wide margin. "People tell me if India grows at six to seven percent what's the big deal? I say it matters a lot because when you expect eight to nine percent and you come up with six percent, that's a big disappointment."

Another key indicator: per capita income. The lower it is the easier for those economies to grow, says Sharma.

Sharma says Poland and the Czech Republic are the "sweet spots" in Europe. They're part of the European Union but aren't on the Euro, and that gives them more flexibility to manage their economies.

Poland was the "only economy in Europe that didn't contract in 2008 and 2009," Sharma says. Both Poland and the Czech Republic have "manageable debt levels" and are attracting investments from foreign countries, which boosts growth, he adds.

His "breakout nations" picks in Asia are the Philippines, Indonesia and Thailand. All three "suffered a lot in the 1990s when China devalued its currency and took away a lot of their manufacturing base," Sharma says. "Now the opposite is happening. China's currency is appreciating a lot and Chinese wage inflation is picking up. These economies can benefit from the fact that their currencies are quite competitive and we could see some manufacturing return to these economies, which are also well run now." Last Friday China reported that first quarter growth slowed to an annual rate of 8.1% from 8.9% in the fourth quarter of 2011.

Sharma also likes Sri Lanka, an example of a "frontier market," which he defines as "out of the mainstream emerging markets" -- relatively undiscovered with a lot of upside potential but not correlated to other global markets. Nigeria and Kenya also fit that bill.

He warns investors NOT to buy commodities as a way to get exposure to emerging markets. "Commodities don't help in the long run," Sharma says. "The average real return of commodities in the last 100 to 200 years is negative."

The Four Trillion Cubic Feet of Natural Oil Find In The Philippines

The last week of April is an amazing trading period of the month.  It’s because of the confirmed news about the oil exploration result of the Service Contract # 72 (SC72), a part of Reed or Recto Bank in the oceans of Palawan, Philippines.  Accordingly, more than 4 TCF (trillion cubic feet) of natural oil reserve is discovered in the area.  The company involved in the said feasibility study is Philex Petroleum Corporation, a sister company of Philex Mining.

Within just 2 days of trading, price per share of the company rose to more than double its previous price.  Some investors are weary if ever China will react on the said news.  The location of the reserved oil is a disputed area claimed by other nations like China, Taiwan and Japan as part of their territory.  Other speculators say that the place is safe as it was clearly belongs to the Philippine land.  The Philippine government should protect this resources as it was claimed that the more positive quantity of the oil find is 11 TCF(trillion cubic feet) which is equivalent to 291 million barrels of oil and liquid. It was reported in this news-link =  http://www.abs-cbnnews.com/business/04/26/12/natgas-recto-bank- enough-last-century.

More news related to this blog:

http://businessmirror.com.ph/home/companies/25478-philex-petroleum-seeks-loan-for-recto-bank-drilling

http://www.foxbusiness.com/news/2012/04/25/philex-recto-bank-contains-at-least-4666-trillion-cubic-feet-gas-prospective/

The JustBeenPaid High Yield Investment Program & What It Is?

Have you already heard of the JustBeenPaid.com indefinitely sustainable investment program? It could be coined as a High Yield Investment Program (HYIP).  Similar programs like this in the past have permanently disappeared.  The reason is the system they are using cannot guarantee for a longer time viability of their financial activities.  JustBeenPaid.com  or  JBP has successfully corrected the glitch of other unsuccessful programs.  JBP is now paying millions of dollars daily to its members worldwide. It begins February last year. This is unlike earlier similar programs that only lasts for several months in the internet and disappears taking away the investments of its members.

If you would like to know the details and status of JBP website try to search at your favorite search engines (yahoo, google, bing, etc.) to find the reputation that it has.  You can hardly read any negative comments about the site.  Even try to search at Alexa.com on its daily statistics on web traffic is ranking higher.  It is also registered in the US Patent Office.

Let me elaborate on how this system work.

JSS-Tripler is the program "the market has been waiting for." It has no sponsoring requirements. It enables online moneymakers to earn as passive members if they don't want to recruit or sponsor. A revolutionary breakthrough makes JSS-Tripler indefinitely sustainable. It's the first high-yield program with the groundbreaking mechanism that keeps it going no matter what.

JSS-Tripler solves the problem of people who don't have the time or means to sponsor others.  JSS-Tripler Provides the Potential for Unlimited Earnings...?        

JSS-Tripler's Design Overcomes the Common Drawbacks of Other High-Yield Programs. JSS-Tripler is NOT MLM where the first people at the top make all the money and the people lower down can only earn pennies. JSS-Tripler is NOT a matrix that promises "spillover"... but the people lower down never see any spillover and mostly lose their money. (And if they do build a downline, after a while it collapses like a series of dominoes.) Daily withdrawals! JSS-Tripler is NOT a company that keeps you waiting to get paid (or worse, runs away with your money!)

JSS-Tripler is NOT a business that requires you to do any selling, create a website, build a list, or do anything most people find difficult.

JSS-Tripler Provides Unprecedented Value... No matter when you join JSS-Tripler, you have the same chance to make lots of money as the very first member who joined!

JSS-Tripler solves the "attrition problem" of members dropping out because they can't afford to continue making monthly payments.

JSS-Tripler has designed to make it as easy as possible for all our members to succeed!

You Can Start with Just $10.00 and Turn It into a Fortune!

So hurry in and secure your position NOW.

CLICK LINK BELOW TO START JOINING TO TRY YOUR FREE $10 START UP CAPITAL

http://adv.justbeenpaid.com/?r=ol64RBOTb8

The Philippines & Indonesian Nickel Mining Industry

The recent bullish outlook of local and offshore investors to the Philippine nickel industries is at stake.  It was published early this year in various financial market news of the prohibition of the Indonesian government to sell nickel ores outside from their country. Accordingly this will take effect April, 2012. This rumor will produce bad impact to the Indonesian nickel industries. Their sales will be affected and investors will have to withdraw their investment capital from these companies.

On the other hand, the Philippine nickel miners will benefit most of the said scenario. Big corporations from china who used to buy nickel ores from their Indonesian suppliers will secure other sources. These Chinese buyers are now eyeing to get supplies from the Philippines. One reason is its approximate distance from their country.

It was observed in the Philippine stock market exchange trading sessions starting last January until recently that there was substantial growth of stock prices of the publicly listed local nickel industries.

The following companies are good ones:

Nickel Asia (NIKL)

Ni Hao Mineral Resources (NI)

Marcventures Holdings (MARC)

Mining Industry - The Catalyst of the Philippine Stock Market Growth

The recent plan of the Philippine government to create a new Executive Order or reenact the old laws on mining keeps investors on the sidelines as the president is still undecisive to sign it at present. There maybe some concerns that matters most when the said laws will favor or not with the investors. It was found out that billions of pesos was invested by the Philippine Social Security System and the Roman Catholic Church to the mining industry. What happens if these this new order is against he mining sector? The government investments will also be affected.

Here's some caption of the news recently published by the Philippine Daily Inquirer about the Philippine Stock Exchange's backing up the mining sector.

PSE backs ‘responsible mining’ framework

http://www.business.inquirer.net/48913/pse-backs-'responsible-mining'-framework

"The stock market’s advance, as an indicator of economic growth, has been supported by the mining sector. The growth of the mining and oil index by 69 percent in 2011 helped push the Philippine stock market to become the best-performing in Asia despite the uncertainties in the global environment. 

The PSE reported that in the last five years, the mining and oil sub-index registered an annual growth rate of 39 percent, much higher than the 15-percent annual expansion registered by the next best performing sector, the holding firms sector. On the other hand, the overall market grew an average 8 percent over the same period. 

This growth of the mining sector was even more pronounced in the past three years as the sector posted a compounded annual growth rate of 94 percent since 2008 when markets globally suffered significant declines, the PSE said. 

The PSE report added that the mining sector had created wealth amounting to P378 billion in the last three years, representing the 951-percent increase in the sector’s market capitalization since 2008. Meanwhile, the contribution of trades in mining stocks to total market turnover has jumped from 5.5 percent in 2008 to 14 percent in 2011.

Meanwhile, the PSE also noted that its mineral reporting requirements for listed mining firms would allow stakeholders to have access to information on the practices of listed mining firms with respect to “sustainable” and “responsible” mining.

The most valuable mining firms listed on the PSE and their respective market capitalization levels were: Philex Mining (P106 billion); Semirara Mining (P81.58 billion); Lepanto Consolidated Mining (P67.6 billion); Atlas Consolidated Mining and Development Corp. (P32 billion); Nickel Asia (P30.3 billion); Philodrill Corp. (P10.4 billion); Manila Mining (P16.3 billion); NiHao Mineral Resources (P9.5 billion); and Oriental Peninsula Resources Group (P8.9 billion). Philex and Semirara are part of the main-share PSE index, which recently breached the historic 5,000 mark."

Top Ten Tips To Successful Investing

This useful investing tips I have linked below from its original location is a good advise to all freshmen investors including me. It was posted by the management of FAMI (First Metro Asset Management Inc.) last February 22, 2012. Learn more how to unload your money to the stock market through some simple tips that will promote handsome profits to your portfolio.

Top 10 Tips to Successful Investing!

          http://fami.com.ph/?p=3244

Top 10 Tips to Successful Investing!

Here’s 10 quick tips to get you started on investing and creating your winning porfolio!


1. Start Early.

The only way you can make the most out of the limited time you have is to start early. The sooner you invest, the more time your money will have for growth. If you delay, you will almost certainly have to invest much more to achieve a similar result. Let the power of compounding work for you.

2. Keep Some Cash Aside

It is always a good idea to have some money set aside in case of emergencies. Maintaining six to nine months worth of living expenses will insulate you from a sure fire formula for investment loss – distress selling.

3. Know Your Risk Profile

What is the point of investing in the stock market if you are going to lose sleep, or a heart attack (whichever comes first) every time prices go through a rough patch. You need to be realistic about your risk appetite. An investment advisor can help you determine your tolerance for risk.

4. Never Forget About Inflation

Don’t fall into the false sense of security that very conservative investments might give you. The returns may look respectable at the start but not after you deduct the effects of inflation. Keep in mind that risk is not just about losing money. It is also about not having enough in the end.

5. Think Carefully About How Long You Can Stay Invested

If you plan to stay invested for a long period of time, say five years or more, then it is okay to get into the stock market and let your money work harder for you. But if you will need your funds very soon, you are going to be better off with low risk investments.

6. Spread Your Money Across Investments

Don’t put all your eggs in one basket. Depending on your goals and attitude to risk, you will probably want to spread your money across different types of investment – equities, bonds and cash. You may also want to diversify within each of these categories. An equity fund, for example, will invest your money in a variety of companies but you may want to ensure you have a range of industry sectors too.

7. Invest Regularly

Investing regularly can be a great way to build up a significant lump sum. You will also benefit from what is known as cost averaging. In this way you hardly feel the pain caused by delayed gratification since you are saving small amounts that you can easily afford.

8. Choose Your Funds Carefully

You should select investments based on your personal circumstances and goals. Don’t assume all funds investing in equities are the same – look at what a fund invests in and check if you are comfortable with its investment style and objectives. Choosing the right fund manager is nearly as important as choosing the right fund.

9. Remember That Time and Not Timing Is The Key To Successful Investing

Even the most experienced fund managers fail when it comes to timing the markets. As an investor your concern should be to have as much time as possible to stay invested. Take the long-term view and stay in a fund that you are comfortable with for as long as necessary. Successful investing is not a matter of timing but rather a matter of TIME.

10. Review Your Investment Regularly

There are a number of reasons why you might need to change your investment portfolio. Your goals might have changed over time or your resources might have changed significantly. Whatever the reason may be, your life stage will play a vital role in determining the right investment mix for you. It is prudent to review your investment once or twice a year at the very least to determine if you are still on track to hitting your goals

          

Companies With Good Fundamentals This February 2012

The month of February, 2012 is the continuation of the stock market rally in the Philippine Stock Index.  This means that the Philippine Stock Exchange index have reached its ultimate highest peak in its history. This took place last February 23, 2011 when it reaches to the 4,997.04 level.  This is because local investors as well as offshore fund managers still relies the bullish trend of the Philippine economy.

It’s good to know how the market is doing the past weeks this month.  Trending to date are oil companies because of the current tension in Iran as it recently imposed an oil embargo to some European countries.  The current oil price (as of this writing) is at US$109.77 per barrel which is seen to be the longest sustained price since January of last year. The Brent spot price is higher at US$126.65 per barrel. This will increase more in the coming weeks if problems in Iran will escalate. Recently, Bloomberg.com reported that SWIFT (Society for Worldwide Interbank Financial Telecommunication) is prepared to cut off Iran’s Central Bank together with its 24 banks and financial institutions to receive its financial messaging service that would possibly unable the country to use the international financial system. Read more on this link: www.bloomberg.com/news/2012-02-24/swift-may-expel-iran-s-central-bank-hindering-oil-payments.html

Among the Philippine oil companies currently traded with high volumes are The Philodrill Corporation, PNOC-Energy Development Corporation, Philix Petroleum, Petron Corporation and Oriental Petroleum and Meniral Corporation. EDC is a blue-chip company.

Another trending sector this month is the financial.  Most banking stocks in the country are already in the blue-chip level.  These were Banco de Oro Universal Bank, Rizal Commercial Banking Corporation, Bank of the Philippine Islands, Union Bank of the Philippines, Security Bank and Metropolitan Banking & Trust Company. Either of these companies have good price increase this month.

In the sector of mining, two good stocks were highly guarded by security traders. They are Dizon Copper Silver Mines and NiHao Mineral Resources. This two have almost tripled their trading prices in just this month. Some mining industries are still laggard as investors are on the sidelines because of the incoming new executive order on mining which will be released in the later date of February this year by the Philippine government.  This will be related to the issuing of Financial & Technical Assistance Agreement (FTAA) to the new mining companies that will apply business in the country. If the said agreement will favor the mining investors, possible candidate for mining that will be good to invest in are Lepanto Consolidated Mining, Philix Mining, Atlas Mining, Manila Mining, Marcventures Holding Inc., Nickel Asia and Apex Mining among others.

The recent problem regarding inadequate power supply in Mindanao is one of the latest concerned issue in the electric power companies. Aboitiz Power is the only public listed company engaged in power supply in Mindanao particularly in areas of Davao and General Santos. It is necessary for investors to put their capital here as it was observed from the last few days of trading that its price was increasing substantially.

That was the good news I have gathered this month in the investment world here in the Philippine economy. It’s up to the reader to take action and be reminded of the consumer saying “CAVEAT EMPTOR” or let the buyer beware.

The Philippine Stock Exchange Index (PSEi) Is Rallying To Its Highest Level

The Philippine stock exchange had recently reaches to its ultimate high level at 4,756 as of January, 24, 2012. It is recorded as its all time high since its inception and may even extend its upward trend in the near future.  This scenario took place for several days starting the first trading day of the year.

One reason for this is the inclusion of PCOMP by foreign financial analysts and investors in the investment watchlist.  I have observed lots of rumors and verified news stating the good dynamics and financial stability of the Philippine economy.

Listed below are some of the good news confirming the sound financial fundamentals of the Philippine economy. The year of the dragon is really been an auspicious year in the Philippines in the field of investing and finance. To clearly understand the news-topics click on the link to read the full details of the aforementioned news.

"Strong dollar inflows will continue to support the value of the peso this year despite the volatilities in the financial markets stemming from the European debt problems, the Bangko Sentral said Friday."

http://www.manilastandardtoday.com/insi ... january/14

"The Philippines has the potential to become one of the top 10 countries that can greatly contribute to global growth within the decade, Goldman Sachs said.
According to the investment bank, the Philippines is among the N-11 [Next 11] economies that are likely to advance to the stage of “growth countries,” or nations that account for at least one percent of global gross domestic product.
The N-11 economies are Mexico, Korea, Indonesia, Turkey, Iran, Egypt, Nigeria, Bangladesh, Pakistan, Philippines and Vietnam."

http://business.inquirer.net/40029/phil ... wth-driver

"According to the Metrobank group, the economy can grow at a faster pace of 5 percent to 6 percent this year on the back of higher government spending and robust overseas Filipino workers remittances that help drive up consumption. Their upbeat projection includes an upgrade to “investment” credit rating for the country this year. The upbeat mood is driven by what it says are robust investment inflows, strong market appetite, lower borrowing cost, liquidity and faster-than-expected capacity to pay debt."

http://businessmirror.com.ph/home/opini ... -go-but-up

"The PSE Composite Index reaching a historic high close was absolutely predictable, almost inevitable. In fact, on December 14, 2011, I wrote that the market could reach 5,000 in 2012. That is only about 8 percent higher than where we are now. We can advance higher than that based on the domestic internals that are fueling this market rally."

http://businessmirror.com.ph/home/opini ... e-going-up