Stock News 2013: Stocks dive as Fed signals end to easy money

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Local financial markets on Thursday were shaken after the US Federal Reserve signaled that the regime of easy money—which has inflated asset valuations in emerging markets—would end by next year.

But Philippine economic managers called for calm, saying that a more solid recovery of the US economy would benefit the Philippines in the long run.

The main-share Philippine Stock Exchange index on Thursday shed 186.53 points, or 2.86 percent, to close at 6,326.67, tracking the slump across global markets.

The peso, along with other Asian currencies, also weakened following the announcement of the US Fed Open Market Committee (FOMC). The local currency hit an intraday low of 43.76 against the dollar before it closed at 43.80—its weakest level since January of last year.

BDO chief market strategist Jonathan Ravelas said local investors were adjusting to the peso’s weakness.

“Most forecasts were below 40:$1. Very few believed [the peso] would depreciate,” Ravelas said.

BDO projected the peso to end the year at 42.10 against the dollar.

In a research note, investment bank BofA Merrill Lynch described 2013 to be the “high watermark” of the liquidity era.

“The FOMC statement was more hawkish than expected. Bernanke anticipates tapering to begin late this year and QE (quantitative easing) to end by the middle of next year. Our economists see the Fed’s forecasts as optimistic and low inflation as a growing concern. So, while the likelihood of fourth quarter tapering appears to have increased, they still believe early 2014 tapering is the more likely outcome,” Merrill Lynch said.

Financial markets have begun pricing the possibility of the US Fed unwinding its aggressive bond-buyback program, or QE, weeks ago, dragging down the local stock index by as much as 17 percent from the recent peak of around 7,400.

But many analysts say that, eventually, markets will again focus on the country’s fundamentals which, in turn, will boost Philippine assets.

“The situation could be a result of quick reaction to the recent announcement of the Fed’s view and policy intention,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said in a text message to reporters. “The market seems to be still digesting the full meaning and impact of the Fed view.”

Guinigundo said a stronger US economy should lead to an increase in foreign direct investments (OFW) and remittances to the Philippines. It should also aid in the recovery of the Philippine exports sector. The US is one of the Philippines’ largest trading partners.

http://business.inquirer.net/128263/stocks-dive-as-fed-signals-end-to-easy-money

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Stock News 2013: Stocks dive as Fed signals end to easy money

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Local financial markets on Thursday were shaken after the US Federal Reserve signaled that the regime of easy money—which has inflated asset valuations in emerging markets—would end by next year.

But Philippine economic managers called for calm, saying that a more solid recovery of the US economy would benefit the Philippines in the long run.

The main-share Philippine Stock Exchange index on Thursday shed 186.53 points, or 2.86 percent, to close at 6,326.67, tracking the slump across global markets.

The peso, along with other Asian currencies, also weakened following the announcement of the US Fed Open Market Committee (FOMC). The local currency hit an intraday low of 43.76 against the dollar before it closed at 43.80—its weakest level since January of last year.

BDO chief market strategist Jonathan Ravelas said local investors were adjusting to the peso’s weakness.

“Most forecasts were below 40:$1. Very few believed [the peso] would depreciate,” Ravelas said.

BDO projected the peso to end the year at 42.10 against the dollar.

In a research note, investment bank BofA Merrill Lynch described 2013 to be the “high watermark” of the liquidity era.

“The FOMC statement was more hawkish than expected. Bernanke anticipates tapering to begin late this year and QE (quantitative easing) to end by the middle of next year. Our economists see the Fed’s forecasts as optimistic and low inflation as a growing concern. So, while the likelihood of fourth quarter tapering appears to have increased, they still believe early 2014 tapering is the more likely outcome,” Merrill Lynch said.

Financial markets have begun pricing the possibility of the US Fed unwinding its aggressive bond-buyback program, or QE, weeks ago, dragging down the local stock index by as much as 17 percent from the recent peak of around 7,400.

But many analysts say that, eventually, markets will again focus on the country’s fundamentals which, in turn, will boost Philippine assets.

“The situation could be a result of quick reaction to the recent announcement of the Fed’s view and policy intention,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said in a text message to reporters. “The market seems to be still digesting the full meaning and impact of the Fed view.”

Guinigundo said a stronger US economy should lead to an increase in foreign direct investments (OFW) and remittances to the Philippines. It should also aid in the recovery of the Philippine exports sector. The US is one of the Philippines’ largest trading partners.

http://business.inquirer.net/128263/stocks-dive-as-fed-signals-end-to-easy-money

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• Your preview to the most anticipated Fed announcement in a long time (business.financialpost.com)
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Stock News 2013: Stocks dive as Fed signals end to easy money

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Local financial markets on Thursday were shaken after the US Federal Reserve signaled that the regime of easy money—which has inflated asset valuations in emerging markets—would end by next year.

But Philippine economic managers called for calm, saying that a more solid recovery of the US economy would benefit the Philippines in the long run.

The main-share Philippine Stock Exchange index on Thursday shed 186.53 points, or 2.86 percent, to close at 6,326.67, tracking the slump across global markets.

The peso, along with other Asian currencies, also weakened following the announcement of the US Fed Open Market Committee (FOMC). The local currency hit an intraday low of 43.76 against the dollar before it closed at 43.80—its weakest level since January of last year.

BDO chief market strategist Jonathan Ravelas said local investors were adjusting to the peso’s weakness.

“Most forecasts were below 40:$1. Very few believed [the peso] would depreciate,” Ravelas said.

BDO projected the peso to end the year at 42.10 against the dollar.

In a research note, investment bank BofA Merrill Lynch described 2013 to be the “high watermark” of the liquidity era.

“The FOMC statement was more hawkish than expected. Bernanke anticipates tapering to begin late this year and QE (quantitative easing) to end by the middle of next year. Our economists see the Fed’s forecasts as optimistic and low inflation as a growing concern. So, while the likelihood of fourth quarter tapering appears to have increased, they still believe early 2014 tapering is the more likely outcome,” Merrill Lynch said.

Financial markets have begun pricing the possibility of the US Fed unwinding its aggressive bond-buyback program, or QE, weeks ago, dragging down the local stock index by as much as 17 percent from the recent peak of around 7,400.

But many analysts say that, eventually, markets will again focus on the country’s fundamentals which, in turn, will boost Philippine assets.

“The situation could be a result of quick reaction to the recent announcement of the Fed’s view and policy intention,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said in a text message to reporters. “The market seems to be still digesting the full meaning and impact of the Fed view.”

Guinigundo said a stronger US economy should lead to an increase in foreign direct investments (OFW) and remittances to the Philippines. It should also aid in the recovery of the Philippine exports sector. The US is one of the Philippines’ largest trading partners.

http://business.inquirer.net/128263/stocks-dive-as-fed-signals-end-to-easy-money

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• Your preview to the most anticipated Fed announcement in a long time (business.financialpost.com)
• The News, The Spin, and The Reality of The FOMC Meeting (etfdailynews.com)
• How the Fed Changed the Rules Yesterday (fool.com)
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Stock News 2013: Stocks dive as Fed signals end to easy money

The Federal Reserve: The Biggest Scam In History (Photo credit: CityGypsy11)

Local financial markets on Thursday were shaken after the US Federal Reserve signaled that the regime of easy money—which has inflated asset valuations in emerging markets—would end by next year.

But Philippine economic managers called for calm, saying that a more solid recovery of the US economy would benefit the Philippines in the long run.

The main-share Philippine Stock Exchange index on Thursday shed 186.53 points, or 2.86 percent, to close at 6,326.67, tracking the slump across global markets.

The peso, along with other Asian currencies, also weakened following the announcement of the US Fed Open Market Committee (FOMC). The local currency hit an intraday low of 43.76 against the dollar before it closed at 43.80—its weakest level since January of last year.

BDO chief market strategist Jonathan Ravelas said local investors were adjusting to the peso’s weakness.

“Most forecasts were below 40:$1. Very few believed [the peso] would depreciate,” Ravelas said.

BDO projected the peso to end the year at 42.10 against the dollar.

In a research note, investment bank BofA Merrill Lynch described 2013 to be the “high watermark” of the liquidity era.

“The FOMC statement was more hawkish than expected. Bernanke anticipates tapering to begin late this year and QE (quantitative easing) to end by the middle of next year. Our economists see the Fed’s forecasts as optimistic and low inflation as a growing concern. So, while the likelihood of fourth quarter tapering appears to have increased, they still believe early 2014 tapering is the more likely outcome,” Merrill Lynch said.

Financial markets have begun pricing the possibility of the US Fed unwinding its aggressive bond-buyback program, or QE, weeks ago, dragging down the local stock index by as much as 17 percent from the recent peak of around 7,400.

But many analysts say that, eventually, markets will again focus on the country’s fundamentals which, in turn, will boost Philippine assets.

“The situation could be a result of quick reaction to the recent announcement of the Fed’s view and policy intention,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said in a text message to reporters. “The market seems to be still digesting the full meaning and impact of the Fed view.”

Guinigundo said a stronger US economy should lead to an increase in foreign direct investments (OFW) and remittances to the Philippines. It should also aid in the recovery of the Philippine exports sector. The US is one of the Philippines’ largest trading partners.

http://business.inquirer.net/128263/stocks-dive-as-fed-signals-end-to-easy-money

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Stock News 2013: Ayala Land sets P15-B borrowings in H2

Land Title (Philippines) (Photo credit: Wikipedia)

Property giant Ayala Land Inc. (ALI) is tapping the debt market in the second half to borrow P15 billion as it takes advantage of the prevailing low interest rate environment.

The fundraising program will complete the P65.5-billion capital requirements of the country’s most valuable property firm for 2013, an executive said.

“We still have some borrowings that we plan for the rest of the year,” Jaime E. Ysmael, ALI senior vice-president chief finance officer told The STAR.

“ALI itself will probably need around P15 billion and the subsidiaries will have their own borrowing program,” Ysmael said.

The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years.

Ysmael said ALI’s return to the debt market will be in the second half “because we have enough resources right now coming off from the equity placement,” Ysmael said.

“We are looking at seven and 10 years of maturity or maybe longer to match the development cycle,” Ysmael said.

In an overnight equity placement in March, ALI generated P12.2 billion in fresh funding as it sold 399.528 million shares at P30.50 a piece, way above the initial target of 320 million shares amid high demand.

In its capital spending, ALI planned to secure P12 billion from equity, P20 to P25 billion from debts and the remaining requirement from internally-generated cash, Ysmael said.

Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity. Last week, conglomerate SM Investments Corp. announced its plan to raise P25 billion through loans and bonds.

“We intend to lock in on good rates. We believe the rates will still remain low, supportive of the more aggressive investments,” Ysmael said.

However, ALI is careful not to let its annual maturing debts reach more than P10 billion as part of its debt refinancing and payment management, Ysmael said.

In March, the policymaking Monetary Board of the Bangko Sentral ng Pilipinas kept interest rates at a record low of 3.5 percent for overnight borrowing and 5.5 percent for overnight lending.

It also cut the interest it pays on funds parked at its special deposit accounts (SDA) in a bid to push out idle funds to help fund economic activity and boost growth amid a benign inflation environment.

The real estate arm of the Ayala conglomerate is set to continue this year the trend of double-digit growth in revenues and profits.

Earnings of ALI surged 27 percent to P9.04 billion last year from P7.14 billion in the previous year as revenues from its residential, hotel, office and commercial projects jumped 23 percent to P54.52 billion.

http://philstar.com/business/2013/04/22/933295/ali-sets-p15-b-borrowings-h2

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Stock News 2012: Banks’ NPL Ratio Improves Further To 2.05% In Third Quarter

English: Central Bank of the Philippines (Main) (Photo credit: Wikipedia)

The Bangko Sentral ng Pilipinas (BSP) yesterday reported that the 37 major banks’ non-performing loans (NPL) ratio improved to 2.05 percent as of the end of the third quarter as soured loans continue to decline.

BSP’s latest data showed that NPL ratio as of end-September was 0.03 percentage point lower compared to end-August and by 0.41 percentage point lower than last year’s 2.46 percent. Net of interbank loans, the NPL ratio was lower by 0.03 percentage point to 2.15 percent.

Borrowers or debtors with unpaid loans for 30 days are considered NPL accounts while unpaid loans of more than 90 days will generally be considered in default.

The central bank in October revised the rules on banks’ NPL by including the net amount of NPLs as a “complementary measure” to gross NPLs. Net NPLs are gross NPLs less specific allowance for credit losses on the total loan portfolio.

In the first nine months of the year, the 37 universal/commercial banks have reported R69.94 billion-worth of borrowers’ past due loans. This is lower than August’s R70.43 billion and the same period in 2011 of R74.33 billion.

The big banks’ total loan portfolio, in the meantime, increased to R3.41 trillion from R3.378 trillion in the previous month and R3 trillion last year.

The BSP said NPL ratio improved because of the 0.69 percent reduction in total bad loans and the 0.96 percent expansion in total loan portfolio.

“The industry’s provisioning against potential credit losses remained adequate,” stated the BSP.

The NPL coverage ratio or loan loss reserves to NPLs strengthened to 136 percent from 135.81 percent in August and from last year’s 123.70 percent ratio.

The coverage ratio for non-performing assets (NPA) narrowed to 69.39 percent from 69.44 percent in August but it was higher compared to last year’s 62.68 percent ratio. As of end-September, the big banks’ NPAs declined to R176.34 billion from R177.12 billion in the previous month and R191.06 billion the same period in 2011.

NPAs are computed including NPL and real and other properties and acquired or ROPA

The banks’ restructured loans, on the other hand, totaled R35.5 billion, hardly changed on a monthly basis but considerably lower compared to last year’s R40.98 billion.

http://www.mb.com.ph/articles/383808/banks-npl-ratio-improves-further-to-205-in-third-quarter#.T8GjbOSmj3w

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Stock News 2012: BPI profit rises 37% to P13.2B

Philippine 100 peso bill (Photo credit: Wikipedia)

Higher interest income drove Bank of the Philippine Islands’ net income 37 percent higher to P13.2 billion in the first nine months of the year, the bank said in a disclosure to the Philippine Stock Exchange.

BPI attributed the solid performance to strong revenues, which were up 17.6 percent, coming from both net interest income and non-interest income.

Despite the prevailing low interest rate environment, net interest income was higher by 7.8 percent as the average asset base expanded by almost P50 billion or 6.4 percent.

Net interest spread was relatively flattish notwithstanding the full recognition of the non-remuneration on statutory and liquidity reserves maintained as deposits with the Bangko Sentral ng Pilipinas (BSP).

BPI also continued to fund its lending growth with low cost funds.

Non-interest income was 34 percent higher, mainly driven by higher securities trading gain.

Other income and fees and commissions also posted increases.

Operating expense went up a manageable 4.8 percent, with increments mainly on premises and technology related costs as well as other operating expenses.

Impairment losses were up 54 percent as provisions were set up for the strengthening of the actuarial reserves for the pre-need subsidiary.

For the third quarter, impairment losses were 1.2 times the previous year. Revenues were, however, up five percent, thereby resulting in a nine percent improvement in net income to P3.8 billion.

Loans reached P475 billion as the growth rate of 18 percent was sustained through the third quarter. Corporate and consumer loans continued with their double-digit momentum with 18 percent and 16 percent, respectively, on a year on year basis.

Asset quality as reflected in the net 30-day NPL ratio improved to 1.7 percent from last year’s 2.3 percent, with reserve coverage at 137.9 percent.

Deposits reached P697 billion or a 12 percent increase from last year. In addition, assets under management increased 15 percent to P760 billion.

At end-September, BPI’s market capitalization stood at P284 billion, the highest among domestic banks.

 “Normalizing the impact of the opportunistic recognition of securities trading gains, BPI’s adjusted return on equity and return on assets as of September 2012 would be 16.9 percent and 1.9 percent, respectively,” BPI president and CEO Aurelio R. Montinola III said.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=865169

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Stock News 2012: PDIC pushes passage of bank liquidation law

Seal of Bangko Sentral ng Pilipinas (1993-2010) (Photo credit: Wikipedia)
State-run Philippine Deposit Insurance Corp. (PDIC) is pushing for the enactment of a law that would govern the takeover, liquidation and winding up operations of banks that are closed by the Bangko Sentral ng Pilipinas (BSP).

PDIC president Valentin Araneta said in an interview with reporters that the proposed Closed Bank Liquidation Act (CBLA) would serve as a comprehensive law to hasten the liquidation of closed banks through the seamless transition from bank closure to liquidation.

“Our legislative agenda includes the proposed CBLA which will greatly smoothen the transition from a live bank in distress to a closed bank and minimize the disruption to the system,” Araneta stressed.

He pointed out that the proposed law that would govern the liquidation of closed banks has been presented to the Senate and House of Representatives.

The agency’s Legal Affairs Sector vigorously pursued legal action to recover and collect the receivables of closed banks and at the same time vigorously prosecuted legally liable erring closed bank officers and principals.

The PDIC official said Sen. Edgardo Angara and Albay Rep. Al Francis Bichara are looking at sponsoring the proposed billion.

Last year alone, 29 banks were closed by the BSP with a total of P26.4 billion of deposits outstanding accounted for by over 290,000 bank accounts of which nearly P13 billion were insured.

He said the total deposits of the closed banks were equal to 1.6 percent of the total national budget for 2011.

“Our concern here is not only for the insured deposits but for all the deposits because of the disruption that the closures inflict on our banking system and the destruction it causes on the value and the savings of depositors, as well as the costs to the insurance fund,” he lamented.

In 2008, the Legacy Group was ordered closed by the BSP, affecting P14 billion worth of deposits of which over P11.7 billion has been settled by PDIC.

Araneta said other legislative issues being pursued by PDIC include the institutionalization of the required Deposit Insurance Fund (DIF) and for more flexibility for the board to determine the DIF requirements.

The DIF serves as the funds backing up the insured deposits of the banking system. It is invested in Philippine government securities and government guaranteed instruments prescribed in the PDIC charter.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=820265

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Stock News 2012: BDO, 5 other banks eye shuttered EIB

Original BSP Seal (1949-1993) (Photo credit: Wikipedia)
State-run Philippine Deposit Insurance Corp. (PDIC) said yesterday that six banks, led by BDO Unibank Inc. of retail and shopping mall magnate Henry Sy, have expressed interest in acquiring the assets of shuttered Export & Industry Bank (EIB).

PDIC executive vice president Cristina Orbeta said in a press conference during the agency’s 49th anniversary celebration that interested strategic third party investors would be allowed to conduct due diligence on the assets of the closed bank starting July 2.

Orbeta pointed out that invitation for interested parties to commence due diligence would be released today and the bidding for the bank’s assets would either be on the last week of July or early August.

She revealed that the agency has engaged Alba Romeo & Co. – a unit of British-owned Binder Dijker Otte International – as financial auditor to determine the financial condition of EIB.

According to her, the financial auditor would take full accounting of the assets and liabilities of the bank and ascertain the reasonable valuation of the bank that was ordered closed by the Bangko Sentral ng Pilipinas (BSP).

Orbeta refused to divulge the identity of the interested investors saying the agency was bound by a confidentiality agreement.

She explained that a rehabilitation proposed for EIB should address the requirements for capital strengthening, liquidity, sustainability, viability, and governance.

The PDIC official said agency would no longer extend financial assistance to interested investors.

“The rehabilitation of EIB shall involve no additional cost to PDIC,” she clarified.

Orbeta said the agency would determine the rehabilitation proposal that is most advantageous to depositors, creditors, and taxpayers.

PDIC took over EIB last April 27 as receiver. The bank has a nationwide network of 50 branches and 47 automated teller machines (ATMs).

Orbeta said the insured deposits of EIB amounted to P3.4 billion while uninsured deposits reached P10.4 billion. Of the total insured deposits, PDIC has so far paid P34.17 million involving 22,636 accounts.

The maximum deposit insurance coverage was doubled to P500,000 per depositor in 2009 from P250,000 per depositor.

http://www.philstar.com/Article.aspx?articleId=819570&publicationSubCategoryId=66

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Stock News 2012: BSP maintains key policy rates

Seal of Bangko Sentral ng Pilipinas (1993-2010) (Photo credit: Wikipedia)
The Bangko Sentral ng Pilipinas (BSP) yesterday maintained its key policy rates, noting that easing inflation has given it more room to pause after two rates cuts this year.

As such, interest rates remained at a record low of four percent for the overnight borrowing rate and at a record low of six percent for the overnight lending rate.

“The Monetary Board’s assessment of a favorable inflation environment formed the primary basis for the latest monetary policy decision,” BSP Governor Amando Tetangco Jr. said.

He said the latest baseline forecasts continue to indicate that inflation will likely settle near the lower half of the three- percent to five-percent target range in 2012 and 2013, while inflation expectations have remained well anchored.

Because of easing inflation, the BSP has revised downward its inflation forecast for 2013 to 3.3 percent from a previous forecast of 3.4 percent.

At the same time, monetary authorities noted that the balance of risks to the inflation outlook now leans toward the upside as oil prices have remained elevated and at risk from ongoing tensions in the Middle East as well as strong demand from emerging economies.

Moving forward, the BSP will continue to pay close attention to the outlook for inflation and growth to ensure that monetary policy settings remain consistent with price stability while being supportive of non-inflationary economic growth.

The first BSP rate cut was made last Jan. 19 followed by another 25-basis point reduction on March 1 on the back of a benign inflation outlook and slower than expected global economic growth.

Inflation eased to 2.6 percent in March from 2.7 percent in February, latest data from the National Statistics Office (NSO) said.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=798657

Stock News 2011: Robinsons seeks comm’l bank license

Image via Wikipedia
Robinsons Bank Corp. will operate as a commercial bank once the Bangko Sentral ng Pilipinas grants it the necessary license.

A KB license will allow RobinsonsBank to offer its clients a wider array of innovative financial products such as foreign letters of credit and other trade instruments and put the bank in an even greater capacity to serve as it aims to be among the country’s top 10 commercial banks.

The Securities and Exchange Commission’s recent approval of the merger between Robinsons Savings Bank and Robinsons Bank Corp. completes the legal and regulatory requirements needed by the BSP to award Robinsons Bank Corp., the surviving commercial bank entity from the merger of the two Gokongwei-owned banks, a KB license.

http://mb.com.ph/node/321434/robin

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Stock News 2011: Meralco says customers to see lower bills

Image via Wikipedia
The Bangko Sentral ng Pilipinas (BSP) reported over the weekend that banks' non-performing loans (NPL) ratio last year dipped further to 2.88 percent, lower than end-2009's 2.97 percent due to the industry's improving capital health.

The end-December NPL ratio was also the lowest recorded ratio for universal and commercial banks since the 1997 Asian financial crisis, said the BSP, and the 27th consecutive month that the NPL ratio has been below four percent.

BSP in a statement said the NPL ratio eased by 0.19 percentage point compared to November's 3.07 percent and by 0.09 percentage point from the previous year's ratio.

Improvement to the ratio resulted from the 3.04 percent drop in total NPLs of P80.8 billion from P83.33 billion in November and the 3.34 percent growth in total loan portfolio of P2.8 trillion in December from P2.71 trillion a month before. NPLs are loans that have remained unpaid for 90 days

At the end of December, provisioning for bad loans led to the NPL coverage ratio improving to 118.35 percent from November's 116.53. The non-performing assets (NPA) coverage ratio widened to 60.04 percent from 59.68 percent in the previous month. Year-on-year, the BSP said NPL and NPA coverage ratios increased reference ratios of 112.34 percent and 54.88 percent, respectively. Total NPAs amounted to P205.5 billion.

http://www.mb.com.ph/node/306536/bank

Stock News 2010: Inflation rate picks up pace in Nov. at 3%

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MANILA, Philippines – Inflation in the Philippines picked up pace in November, exceeding both central bank and market expectations due to the higher cost of home repairs, fuel and energy and services.

Even so, Bangko Sentral ng Pilipinas Governor Amando Tetangco said the surprise increase in the consumer price index won't alter the central bank's current accommodative monetary stance, at least until the end of the year.

The National Statistics Office Tuesday said the CPI, the country's main inflation barometer, rose by 3.0% in November from the year-earlier level, faster than the central bank's forecast of between 2.0% and 2.9% and the 2.5% median forecast of 10 economists in a Dow Jones Newswires poll.

The November CPI was up 0.8% from October, when the index declined 0.2% from September.

Inflation averaged 3.8% in the 11 months to November, still at the lower end of the central bank's target of between 3.5% and 5.5% for this year.

Core inflation, which excludes volatile food and energy items, stood at 3.5% on year in November, up from 3.3% in October.

"Our current assessments still show that inflation would remain manageable during the policy horizon and that inflation expectations continue to be well-anchored," Tetangco told reporters in a text message.

http://www.mb.com.ph/node/291530/inflation-rate-pick

Stock News 2010: Banks’ NPL ratio rises in July

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Universal and commercial banks’ soured loans in relation to total loans rose in July, the central bank said on Friday.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said the non-performing loan (NPL) ratio of these banks stood at 3.37% in July, higher by 0.12% from the previous month’s 3.27%, but lower than the 3.49% in the same period last year.

July, the BSP noted, was the 22nd month the NPL ratio fell below 4%.

NPLs are loans whose principal or interest were unpaid 30 days or more after the due date.

The BSP said the month-on-month change took place because banks’ total loans declined faster than their disposal of soured loans.

NPLs fell to P85.73 billion in July from the previous month’s P87.67 billion, while their total loans dropped to P2.544 trillion from P2,681 trillion.

http://www.bworldonline.com/main/content.php?type=2

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