Philippines News Archives

Tuesday, August 22, 2000

AC ( 08/22/2000 : AFX )
Ayala Corp shares were firmer in late morning trade on local investor bargain-hunting amid speculation in the market that government financial institutions are buying up the stock, traders said. At 11:24 am, Ayala Corp was up 0.20 pesos or 2.86 pct at 7.20 pesos on volume of 2.48 M shares. The composite index was up 1.06 points or 0.07 pct at 1,493.81. "I think it's due to buying by the government financial institutions. There's bargain-hunting in the stock as its share price has fallen to attractive levels," said Manny Cruz, chief strategist at Mark Securities. "There are locals buying. I think technically, the share price can go up to 8.0 pesos although fundamentally, there's no major change within the company," said Enrique Santa Ana, associate director for sales at Vickers Ballas Securities Philippines Inc. Cruz said his recommendation on Ayala Corp is a "buy" for the long term. He expects the company to post a 5.0 pct growth in net profit this year against the year-earlier level. "Its Ayala Land subsidiary may post a slight decline in earnings due to the weak property market so it will be Ayala Corp's other subsidiaries that will pull up the conglomerate's earnings for the year," said Cruz. Securities 2000 Inc analyst Erwin Balita said Ayala Corp will likely report flat earnings this year given the weaker performance of the property and the banking markets. "What will compensate for the performance of its property and banking subsidiaries is Globe Telecom. Pure Foods Corp's earnings this year may also be flattish due to low margins and higher raw material costs," Balita said. Balita said Ayala Corp's performance next year hinges on the recovery of the local economy. Brokers said Ayala Corp may have also been bolstered by news yesterday of Philippine Rating Services Corp saying it has affirmed the PRS Aaa rating on the firm's outstanding 1 B pesos long-term commercial papers due in Aug 2001, with Ayala Corp's diversified business portfolio helping mitigate the effects of the economic slump on the group's overall performance. PhilRatings said it also affirmed the PRS Aa ratings on Ayala Land Inc's 4 B pesos long-term commercial papers maturing in April 2002. A PRS Aaa rating signifies the smallest degree of investment risk, with principal payment secured and interest payments protected by a large margin, PhilRatings said. PRS Aa rating is a notch lower than the PRS Aaa rating.

- posted by StockMarket @ 12:04 AM

Monday, August 21, 2000

AC ( 08/21/2000 : AFX )
Philippine Rating Services Corp said it has affirmed the PRS Aaa rating on Ayala Corp's outstanding 1 B pesos long-term commercial papers due in Aug 2001, with the firm's diversified business portfolio helping mitigate the effects of the economic slump on the group's overall performance. PhilRatings said it also affirmed the PRS Aa ratings on Ayala Land Inc's 4 B pesos long-term commercial papers maturing in April 2002. A PRS Aaa rating signifies the smallest degree of investment risk, with principal payment secured and interest payments protected by a large margin, PhilRatings said. PRS Aa rating is a notch lower than the PRS Aaa rating. The agency said that in terms of financial flexibility, "Ayala Corp's large market capitalisation and strong corporate name make it easier for the group to source funds from capital markets both here and abroad when needed." "That the group's major subsidiaries such as Bank of the Philippine Islands, Globe Telecom, Pure Foods Corp, and Ayala Land are well-entrenched in their respective industries also weighed on our rating decision," it said. It also said Ayala Land benefits from having a diversified portfolio covering low and high-end subdivisions, malls, office buildings, and infrastructure projects.
- posted by StockMarket @ 12:02 AM

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