Philippines Bourse: A New Haven In Hot Investment Money

Its almost a year since my last post has been done.  One of the reason why I have stop posting on this blog is due to the closure of my google adsense account which according to them I have done invalid clicks to the ads posted in my blog. Some of my readers have missed my sharing of the current events taking place of the Philippine Stock Market during those time. What makes me start to reopen my blog is due to the availability of good internet signal in our place which took place in the later days last May this year. Not like before that broadband facilities is not good. By this time I decided to ride with the good opportunity that the internet world have made changes in our modern times.

From the time I stopped posted many events in the Philippine financial settings have took place. More especially that we are now considered as the top destination of hot investment money. One reason is the successive growth of the country's GDP. Another is the upgrading of the Philippine's status as an investment haven according to the grades facilitated by the topmost international credit rating agency Fitch Rating Agency and Standard and Poor's (S & P).

Here's some caption from the said upgrades:

"Philippine Credit Rating Raised to Investment Grade

Fitch Ratings has upgraded the credit rating of the Philippines to the investment grade status, a level which promises a surge if capital inflow from both local and foreign investors.
In a statement, the debt watcher said that it has raised the country's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB-' from 'BB+'. The Long-Term Local-Currency IDR has been upgraded to 'BBB' from 'BBB-'.
The Outlooks on both ratings are Stable. The agency has also upgraded the Country Ceiling to 'BBB' from 'BBB-' and the Short-Term Foreign-Currency IDR to 'F3' from 'B'.
http://www.president.gov.ph/daang_matuwid/philippines-credit-rating-raised-to-investment-grade/

A May 2, 2012, press release from the Bangko Sentral ng Pilipinas

The Philippine today received investment grade rating from international credit rating agency Standard& Poor's. In a statement released by the agency, the country's sovereign long-term foreign currency rating was upgraded from "BB+" to "BBB-" with stable outlook. This upgrade by S & P comes after the Philippine sovereign received its first investment grade rating from Fitch Ratings in March this year."
http://www.gov.ph/2013/05/02/phl-receives-investment-grade-rating-from-standard-poors/

With these scenario, local as well as foreign investors are keen to the existing and upcoming developments in the country especially in the government moves in enhancing the Philippine economy.

What's so disappointing is yesterday's move of the US Federal Reserve Banks chairman Mr. Ben S.Bernanke to curve its plan in buying bonds in the coming months until it will totally cease the said purchasing next year. This action have depressed not just the US stock market but also the entire international bourses.  More about this Federal Market Open Committee's (FOMC) meeting could be read at the link below. 

http://www.federalreserve.gov/newsevents/press/monetary/20130619a.htm

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)