BAIPHIL Market Watch – 24 July 2015

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BAIPHIL

MARKET WATCH

24 July

2015 Legend Improvement / Up Deterioration / Down No Movement

FINANCIAL MARKETS AT A GLANCE

PHILIPPINES

Financial Rates Current Previous

USD/PHP 45.3800 45.2400

30-D PDST-R1 2.0001% 2.0000%

91-D PDST-R1 2.0201% 2.0242%

180-D PDST-R1 2.7383% 2.7233%

1-Y PDST-R1 3.1917% 3.1900%

10-Y PDST-R1 4.4167% 4.3867%

30-D PDST-R2 2.0002% 2.0005%

91-D PDST-R2 2.0214% 2.0200%

180-D PDST-R2 2.7333% 2.7233%

1-Y PDST-R2 3.1833% 2.3000%

10-Y PDST-R2 4.3800% 4.3750%

Stock Index Current Previous

PSEi 7,653.22 7,635.62

Market Cap (Php Trillion) 11.953 11.924

Total Volume (Php Billion) 3.330 3.148

PSEi Performers Closing % Change

Top Gainers

SCC 118.00 6.21%

DMC 12.50 4.87%

LTG 14.98 2.04%

Top Losers

ALI 38.50 -1.03%

BLOOM 10.12 -0.98%

SM 902.00 -0.88%

ASIA-PACIFIC

Stock Index Current Previous

NIKKEI 20,683.95 20,593.67

HANG SENG 25,398.85 25,282.62

SHANGHAI 4,124.39 4,026.70

STRAITS 3,356.37 3,359.17

SET 1,444.66 1,447.84

JAKARTA 4,902.85 4,906.69

Currency Exchange Current Previous

USD/JPY 123.7900 124.0700

USD/HKD 7.7507 7.7505

USD/CNY 6.2091 6.2094

USD/SGD 1.3673 1.3664

USD/THB 34.7800 34.7320

USD/IDR 13,420.00 13,375.00

REST OF THE WORLD

Stock Index Current Previous

FTSEuro First 300 1,577.48 1,586.46

FTSE 100 6,655.01 6,667.34

DAX 11,512.11 11,520.67

CAC 40 5,086.74 5,082.57

DOW JONES 17,731.95 17,851.04

S&P 500 2,102.15 2,114.15

NASDAQ 5,146.41 5,171.77

Various Current Previous

EUR/USD 1.0990 1.0930

GBP/USD 1.5515 1.5615

Gold Spot (USD/oz) 1,087.80 1,085.20

Brent Crude(USD/bbl) 55.45 56.08

3-M US Treas Yield 0.03% 0.03%

10-Y US Treas Yield 2.28% 2.32%

30-Y US Treas Yield 2.98% 3.04%

PHILIPPINES

Local equities ended on a positive note today, continuing a consistent upward trend despite US and European markets down

overnight, as investors positioned ahead of the earnings season. The PSEi rose by 17.60 points, or 0.23%, to close at 7,653.22. Most sectors advanced, led by Mining & Oil (1.6%) and Industrials (0.92%) sectors. Market breadth was positive with 95 advances ou tnumbering 76 declines, while 45 issues remained unchanged. Total value turnover reached Php7.32 billion while foreign investors were net sellers at

Php559 million. The US dollar strengthened on the back of the newly released US home sales data that showed a better than expected 5.49 M as

compared to street expectations of 5.40 M. As a result, the peso continued to depreciate against the dollar, decreasing 0.14% to Php45.380.

In the fixed income space, yields increased by an average of 1.25 bps after the BSP commented that the lower inflation trend was not sustainable in the near term. The short-end rose 22.4 bps while the belly- and long-ends lost 15.3 and 4.6 bps, respectively.

Trade Secretary Gregory L. Domingo said the government would miss its 8- to 10-percent target growth for merchandise exports this year on the back of weak demand as seen across the Asean region. “The (country’s export performance) was a surprise. I wasn’t expecting it because there are so many (manufacturing) plants that are being put up and are opening. But across the region, countries are

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also experiencing a decline in exports so maybe there is some slowdown in the region,” Domingo said. The trade chief added that certain

key industries, apart from manufacturing, have been “very busy” such as the construction sector. “So it’s difficult to explain what’s causing the slowdown in export growth. Although there is one area that declined significantly, which is our exports of prefabricated homes to Japan, this was most likely because Japan is nearing the completing of its reconstruct ion activities, but that shouldn’t account for much,” Domingo

said. Despite an expected bleak export performance this year, Domingo said that overall, they were still expecting growth. “I think we will still show a positive number this year, although significantly slower than projected. We will miss the target but things are still going well,” he added.

Regulators have expanded incentives to encourage countryside banks to form larger institutions through mergers amid

perceived “fragmentation” in the industry. The Bangko Sentral ng Pilipinas (BSP) this week announced the creation of the new

Consolidation Program for Rural Banks (CPRB), which complements an existing incentive scheme with similar goals. A joint project of the BSP, Philippine Deposit Insurance Corp. (PDIC) and Land Bank of the Philippines, CPRB aims to trim the number of rural banks, which stands at 512 today. “It intends to promote mergers and consolidations among rural banks to bring about a less-fragmented banking

system by enabling them to improve financial strength, enhance viability, strengthen management, and governance,” BSP Governor Amando M. Tetangco Jr. said. The new program wants fewer but stronger banks with wider networks, which spreads out risk. BSP, PDIC, and Landbank also launched a P25-million seed fund, dubbed the Countryside Financial Institutions Enhancement Program, which will be

used to provide various types of aid to banks qualified under CPRB. The amount, the BSP said, would support financial advisory, business process improvement, and capacity-building services for merging banks. For its part, the BSP said it would observe “full flexibility” in granting regulatory and other incentives allowable under existing banking laws and regulations. Rural and cooperative banks account for

only a small fraction of the industry’s assets, but outnumber all other types of banks. The sector’s total assets reached P218.29 billion at the end of the first quarter or less than 2 percent of the total for the entire banking system. Soured loans held by rural and cooperative banks also reached 12 percent of total outstanding loans, much higher than the entire banking industry’s level of bad credit at 2.47 percent.

Illustrative of the sector’s weakness, all eight banks ordered shuttered by the BSP’s Monetary Board since the start of the year were rural or cooperative lenders. CPRB complements the existing Strengthening Program for Rural Banks, which rewards “white knight” investors that plan to take over local banks.

Monetary policy settings remain appropriate for now, central bank officials said, adding that measures implemented last year

seemed enough to tide the economy over after the US Federal Reserve hikes rates later in 2015. Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said banks continued to lend money to homes and businesses at a healthy pace, and the amount of

money in the economy remained ample to support growth. “Remember we took tightening measures last year,” Tetangco said, referring to hikes in bank reserve requirements, overnight borrowing and lending rates, and interest on special deposit accounts (SDA). All measures aimed to control money supply growth and quell inflationary pressures. “Those haven’t been unwound, and they’re still there. We’re in a

good position,” Tetangco said. He said the BSP still expects inflation to average within the target range of 2 to 4 percent in 2015 and 2016. Despite the confidence in current policy settings, he said the BSP was prepared to act if needed. At the moment, Tetangco said the central bank had its eyes on three different brewing issues overseas, namely Europe and Greece’s debt woes, China’s financial market turmoil,

and the US Fed’s planned tightening of policy settings. The amount spent by the government in building vital infrastructure last May grew by 28.5 percent, mainly as the Department of

Public Works and Highways (DPWH) rolled out more projects that month. Department of Budget and Management data showed that expenditures for infrastructure and other capital outlays in May jumped to P23.9 billion from P18.6 billion a year ago. The amount disbursed for infrastructure projects in May was also slightly up from April’s P23.3 billion. In a report, the DBM said that in the case of the

DPWH, “while almost the same level of NCAs [notices of cash allocation] were issued in May 2014 and May 2015, capital outlays disbursements increased by P6.9 billion due to the remarkable improvement in the pace of utilizat ion from 64.8 percent in May last year to 93.5 percent this year.” Adding to the increase in capital outlays was the about P270 million released by the DBM to the National

Commission for Culture and the Arts to pay for the acquisition of the Manila Metropolitan Theater from the Government Service Insurance System. From January to May, infrastructure spending rose by 3.1 percent to P115.8 billion from P112.3 billion last year. The end-May figure represents 26.8 percent of the full-year program. Total capital outlays, which include capital transfers to local government units and

equity, rose by 27.8 percent year-on-year in May to P34.5 billion, bringing the five-month figure to P157.2 billion, up 9.4 percent. The slower-than-expected Philippine output in the first quarter is likely this year's bottom, according to a central bank official.

"Hopefully the first quarter figure will be the floor, because we were able to have that performance even though the fiscal numbers were not as planned," Francisco Dakila Jr., managing director of the Bangko Sentral ng Pilipinas (BSP) Monetary Policy Sub-sector, told reporters on Thursday. "And now that the government is aware of having the need to accelerate the fiscal program... it should see an acceleration of

government spending towards the latter half of the year," he added. The economy, as measured by the gross domestic product (GDP), expanded by 5.2 percent in the first quarter. This compares with government target of 7 percent to 8 percent for the whole year. While credit watchers and lending institutions have cut their respective growth forecasts for the Philippines, the government remains bullish about

the economy. Consumption, investment and government spending continue to support the economy, Dakila said. Without taking into account the net exports that mainly dragged the output in January to March, the Philippines would have registered a growth rate of 6.8 percent in the first quarter, the BSP official added. "We can note that the 5.2 in the first quarter was still quite respectable even though the

fiscal government spending was below what was planned. The rest of the year I think the growth numbers will still be sustained," Dakila noted.

Trade Secretary Gregory L. Domingo on Wednesday expressed high hopes that the Comprehensive Automotive Resurgence Strategy (CARS) Program will be a big success, given the positive feedback the department had been getting from both automotive industry players and economists. Domingo is optimistic that the program would fill up at least two of the three “slots” being

offered to local vehicle assemblers. “Slots” referred to the number of models that will be allowed to participate. Under the CARS Program, only three models will be qualified to a new package of fiscal and non-fiscal incentives over a six-year period. “A lot of the (automotive players) are seriously looking at it. There are only three slots, but we will get at least two. They’re just waiting for the issuance of the

implementing rules and regulations (IRR),” Domingo said. “They (car companies and economists) like the fact that the incentive scheme is performance based. The program is not just about giving out incentives. One feedback from a local assembler was that the timing of the issuance of the CARS Program was good because that company was already deciding on model changes and future production plans. If

this program was delayed, we would have missed out on the cycle again,” Domingo said. The Department of Trade and Industry targets to

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release this month the IRR for the CARS program, which dangles some P27 billion worth of incentives for participants. Through this

program, the Philippines is expected to attract more than P27 billion in new parts manufacturing investments; produce at least 600,000 vehicles; generate some 200,000 new jobs; and generate a total economic activity estimated to be worth P300 billion. The resulting contribution to gross domestic product was estimated at about 1.7 percent. Trade Undersecretary Adrian S. Cristobal Jr. said in an earlier

interview that the department was not expecting any problem in meeting the target for the IRR issuance. “The target publication of the IRR is 45 days from the publication of (Executive Order No. 182). The budget for the program will be included in the General Appropriations Act for 2016,” Cristobal had said. He earlier said that at least P4.5 billion was expected to be appropriated for the program in next year’s

budget. This represents the amount of incentives that will be provided to qualified participants in the CARS Program. Under EO 182, the Department of Budget and Management (DBM), in coordination with the Board of Investments, will propose, through the National Expenditure Program, the inclusion of an Automotive Development Fund (ADF) in the annual General Appropriations Act (GAA), to fund

the fiscal support for registered and eligible participants. The DBM will indicate in the annual National Expenditure Program the annual estimated expenditure necessary to support the CARS Program for that year, until the amount of P27 billion is fully used. The said fiscal support will come in the form of non-transferrable Tax Payment Certificates (TPC) that participants can use to cover their tax and duty

obligations to the government, such as excise tax, income tax, import duties, and value added tax. The Philippine Health Insurance Corporation (PhilHealth) continues to fulfill its mandate of providing medical insurance and

funding the coverage of the needy even in the face of fraud allegations and investigations into the practice of some hospitals to the detriment of the state-run insurer, Health Secretary Janette Garin said on Thursday. "It's not true that the PhilHealth is running out of money," Garin told a Senate hearing amid complaints by "... senior citizens that services are not being given." "However, we agree that

fraud should be curbed, because if not done at an opportune time, our obligation to our stakeholders will be put at stake," she said. The fund being used by PhilHealth is "not the government's money," the Cabinet official pointed out, saying it consists of members' contributions, as well as some P38 billion from sin tax revenues. Garin also dispelled reports that PhilHealth is "failing to provide"

services. "It's not true. In fact, we expanded our dialysis program for senior citizens and other programs," she said. The state-run health insurance system is launching a "promotive and preventive program" for senior citizens as well as some 14.7 million beneficiaries under the National Household Targeting System, a PhilHealth program focused on the poorest of the poor Filipinos. The Senate investigation was

prompted by allegations that PhilHealth suspended the reimbursements to two eye clinics in Metro Manila that supposedly have been filling questionable claims that continued to pile up from 2013 to 2014. PhilHealth president and CEO Alexander Padilla said the Pacific Eye Institute in Makati and the Quezon City Eye Institute are the objects of an investigation by the health insurer. The eye clinics were supposedly recruiting patient-beneficiaries to avail themselves of eye procedures even if they don't need one, according to PhilHealth. In

an interview before Thursday's hearing at the Senate, Padilla told reporters the fraudulent scheme likely goes beyond cataract operations to include even caesarean operations even when a normal delivery would suffice.

The Securities and Exchange Commission (SEC) has warned the public not to fall prey to an investment scam perpetrated by a Laguna-based beauty product distribution company called F.L.A.G. Prosperity Marketing Inc., also known as Freedom Life Advanced Global Prosperity Marketing Inc. In an official advisory, SEC said that F.L.A.G. Prosperity Marketing was not authorized to

solicit investments from the public, noting that this firm had not secured prior registration and/or license from the SEC to solicit investments as required under Section 8.1 of the Securities Regulation Code. “…The public is hereby advised to exercise self-restraint from investing their money into such investment scheme and to take the necessary precautions in dealing with the above entity,” the corporate watchdog

said in an advisory dated July 16. The SEC noted that F.L.A.G. Prosperity Marketing has been engaged in investment-taking activities where a prospective investor was enticed to invest one to 15 slots amounting to P1,500 each, promising a return of P2,200 or earning at least P700 in profits. Although based in Calamba City in Laguna, the SEC noted that this group was also operating in the provinces of

Batangas, Quezon, Isabela, Cavite as well as in the Bicol region and National Capital Region. The Bureau of Internal Revenue (BIR) on Thursday filed a criminal complaint against a company for failing to pay taxes for

buying a P92.66-million property in Mandaluyong in 2014. In a complaint filed with the Department of Justice, the BIR said Jibetronic Trading Corp. (JTC) was able to purchase a house and lot in Wack-Wack Greenhills from Keystone Real Estate Development Corporation (Keystone) on January 14, 2014 despite having only a paid-up capital of P500,000. The Deed of Absolute Sale was executed on the same

date as the purchase of the property. The BIR later found out that the firm only registered with the BIR on January 12, 2015, or a year after the purchase of the house and lot. "Clearly, in the absence of any declared source of the purchase price of P92.66 million, the said amount is an undeclared income of JTC and must be subjected to income tax," said the BIR. Charged was JTC president Jimmy Tang for "Willful

Attempt to Evade or Defeat the payment of IncomeTax," and "Deliberate Failure to File its Income Tax Return (ITR)" for taxable year 2014. This was in violation of Sections 254 and 255, in relation to Sections 253 and 256 of the National Internal Revenue Code of 1997, as amended (Tax Code). The BIR said JTC was sued for an aggregate deficiency income tax liability for taxable year 2014 amounting to

P43.22 million, inclusive of increments. The Cubao, Quezon City-based company is engaged in the business of wholesale of machinery, equipment and supplies

Aviation service provider MacroAsia Corp. is selling 13 percent of its stake in subsidiary MacroAsia Catering Services Inc. to Singapore-based SATS Ltd. for P168.8 million. MacroAsia Catering is the dominant airline catering company in the Philippines. Under a sale and purchase agreement signed by both parties on Wednesday, MacroAsia will reduce its stake in MacroAsia Catering by

162,500 shares – bringing down its ownership in the subsidiary to 67 percent from 80 percent, MacroAsia said in a disclosure to the Philippine Stock Exchange on Thursday. SATS, on the other hand, will raise to 33 percent its equity stake in MacroAsia Catering from 20 percent, with an initial payment offering of P168.8 million plus a potential earnings consideration for the 13 percent equity. To be

completed on August 31, the transaction is a strategic move to further strengthen the partnership between SATS and MacroAsia in the food service business in the Philippines, according to the disclosure. MacroAsia earlier acquired an additional 13 percent stake in MacroAsia Catering under a sale and purchase agreement with the Compass Group International in June 2006, a transaction valued at P36.4 million.

Originally established in the UK, Compass is a contract foodservice, cleaning, property management and support services company. SATS and MacroAsia are also joint venture partners in MacroAsia SATS Food Industries Corp., a P300-million food commissary serving institutional clients such as hotels, casinos, and call centers. Both companies have been doing business together through MacroAsia

Catering since 1998. Embattled Semirara Mining and Power Corp. will not be able to meet its coal export commitments following a directive from the

Department of Energy (DOE) that it prioritizes the requirements of the local market. “Effective today, we are suspending our coal

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export shipments in response to the directive of the Department of Energy (DOE) to prioritize the requirements of domestic coal

consumers, pending the investigation of the cause of the landslide at North Panian last July 17, 2015,” the company said in a statement Wednesday afternoon. This means Semirara Mining will not be able to meet existing orders with agreed delivery dates. The company has also notified its foreign customers that it could not schedule further shipments until the DOE has reached a decision on the suspension of

its mining operations. Semirara Mining, which has about 800,000 metric tons of coal in its stockpile, said it was currently focused on submitting documents for DOE review. Officials declined to further comment on how much export revenue would be foregone and whether the company has formally sought the resumption of its mining activities. “The concerned government authorities have our full cooperation

and we will do everything we can to manage our limited coal inventory to avert possible supply disruptions to our local power plant and cement customers,” Semirara Mining said. Meanwhile, investigations continue at Semirara Mining’s Panian mine site in Semirara Island, Antique province. At around 3:45 a.m. last July 17, a portion of the northern edge of Panian mine gave way, the company said. By

afternoon, the DOE had ordered the suspension of Semirara Mining activities at the site. On July 21, the Department of Environment and Natural Resources-Environmental Management Bureau issued a cease-and-desist order on Semirara Mining. Field reports said that authorities have accounted for the nine miners who died.

Concepcion-led food and beverage company RFM Corp. is set to wipe out its long-term debt, taking advantage of an expansion in

cash flow to boost its balance sheet. In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, RFM said it was set to

retire P252 million worth of debt ahead of maturity this week. This followed RFM’s settlement of P280 million in long-term obligations last May. “The stronger income performance in the first half of the year, plus faster collection of accounts receivables, shored-up the cash flows, which allowed us to settle earlier our long-term loans. This will bring down long-term debt to zero, making RFM long-term loan debt-

free. If we factor in the short-term loans, debt to equity ratio is only 5 percent,” RFM president and chief executive Jose Concepcion III said. In the first six months, RFM’s net income increased by 11 percent year-on-year to P472 million. At the operating profit level, RFM posted P665 million in six-month income, up 17 percent from a year ago.

The Philippine Stock Exchange (PSE) has given the green light for chemical trader and distributor SBS Philippines Corp. to raise

up to P1.155 billion from an initial public offering (IPO) targeted on August 10, making it the second company to go public this

year. The bourse approved the IPO on July 22, according to a listing notice posted on its Web site yesterday. “The Exchange’s approval of the initial public offering of the company’s shares is subject to its compliance with all of the post-approval requirements of the Exchange,” the PSE said. “The exchange will advise the investing public of developments on the initial public offering of the company.” From July 28 to August 3, SBS will sell up to 420 million primary common shares, comprising 35% of the company’s issued and outstanding shares, at a

maximum offer price of P2.75 each. The Sytengco family owns 93.2% of SBS. The IPO will leave the family with 60.6% of the company. The shares will be listed on the PSE’s Main Board with a ticker symbol of “SBS.” Net proceeds from the share sale -- estimated at about P1.097 billion -- will be used to expand product offering and for capital expenditures, as well as to partially retire a term loan, the company

said in its prospectus. BDO Capital & Investment Corp. was hired as the transaction’s lead underwriter. Incorporated on July 17, 2001 and formerly known as Sytengco Philippines Corp., SBS supplies over 3,000 chemical products to more than 1,800 customers in various industries: food ingredients, industrial, feeds and veterinary care, pharmaceutical, personal care and cosmetics. SBS grew earnings by

66% to P100.17 million last year from P60.33 million in 2013, as revenues rose 18.7% to P933.08 million from P785.95 million. Crown Asia Chemicals Corp. is the first company to debut on the PSE this year.

Ayala-led Integrated Micro-Electronics Inc. (IMI) has strengthened its foothold in Bulgaria, where its local manufacturing arm is among the biggest corporations, with the acquisition of a strategic property partly used as its production hub. In a disclosure to the Philippine Stock Exchange yesterday, IMI said its wholly owned and indirect subsidiary Integrated Micro-Electronics Bulgaria EOOD

(IMI BG) had executed a deal to acquire a parcel of land and the building in Botevgrad, Bulgaria, for 1.14 million euros. The property, which was acquired from Melexis Bulgaria EOOD (MB), has a total land area of 16,275 square meters (sqm) and a total built-up area of 12,193 sqm. “This new development augurs well for IMI BG. With additional capacity, IMI BG can service more OEM (original equipment

manufacturer) requirements, especially in its fast-growing target markets of automotive and industrial electronics,” IMI president and chief executive Arthur Tan said in a statement. IMI Bulgaria, which has been on an expansion mode since 2013, made it to the list of Bulgaria’s top 100 companies based on a roster drawn up by Capital Bulgaria, a widely read business newspaper that comes out with the annual list.

The IMI unit was the 65th biggest company in Bulgaria in 2014 in terms of revenues, up from the previous year’s 87th place. In 2014, IMI BG generated revenues of $188.3 million, an increase of 29 percent year-on-year. It has built 3,150 sqm of manufacturing space from scratch in the last two years. Another 6,900 sqm of working space will be completed by end of the first quarter of 2016. IMI is one of the

leading worldwide providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services. This Filipino-owned multinational corporation now ranks 18th among EMS providers globally, moving up from its previous rank of 21st, based on the latest list of Manufacturing Market Insider. With manufacturing facilities in Asia, Europe, and North America, IMI serves diversified

markets that include those in the automotive, industrial, medical, telecommunications infrastructure, storage device, and consumer electronics industries. This subsidiary of Ayala Corp. was valued by the market at P11.1 billion.

State-run Development Bank of the Philippines (DBP) this week reported a significant growth in the first half of the year as funding costs dropped and interest revenues rose. In a statement, DBP said it was on track to meeting its full-year profit goals as earning assets rose, and deposits expanded to help bring down the bank’s funding costs. In the six months to June, DBP said profits grew

19 percent year-on-year to P2.35 billion. This translates to an annualized return on equity (ROE) of 11.04 percent, “and makes DBP on track to meeting its full year profit target for 2015,” it said. Interest income from loans posted a 20-percent growth or a P626-million increase. Other core income items also grew over the same period last year: interest income on investments was higher by P122 million,

gains on investment securities rose by P158 million, foreign exchange gains were higher by P840 million and dividend income, higher by P166-million. Total assets climbed by 8 percent to P455.398 billion, mainly cash and due from other banks (up 37 percent to P29.122-billion) and investments (12 percent to P17.646 billion). Loans and other receivables contracted by 2 percent or P3.715 billion. Other

assets were lower by 105 percent or P8.198 billion. The Philippine Business Bank (PBB) board of directors has approved the acquisition of new assets in the country, specifically

Insular Savers Bank Inc. and Bataan Savings and Loan Inc. According to a disclosure to the Philippine Stock Exchange on Thursday, PBB will be the surviving entity in a planned merger with Insular Savers. All assets and liabilities of Bataan Savings and Loan Inc. will be acquired by PBB. To confirm and ratify the acquisitions, PBB will hold a special stockholders’ meeting on September 4. The saving bank

PBB is focused on the corporate market and small and medium enterprises (SMEs). Its 100 branches are mostly located in areas where

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SMEs are concentrated.

A unit of the Philippine conglomerate Ayala Corp. said on Thursday construction of a $1 billion coal-fired power plant in the

south of the archipelago was underway, as it reaffirmed plans to build an energy portfolio of up to 1,000 megawatts. AC Energy

Holdings Inc., however, is taking a "prudent" stance in expanding its power generation portfolio mindful of potential power oversupply in the next three years. Ayala, like other Philippine conglomerates such as San Miguel Corp., has diversified into road and power infrastructure, expanding its portfolio that includes banking, real estate and shopping mall development, water utility and electronics manuf acturing.

"We're obviously cognizant of the potential oversupply," AC Energy CEO John Eric Francia told reporters on the sidelines of an industry forum. Building additional capacities will depend on AC Energy getting additional off-take agreements, especially on the main Luzon island where more than 2,000 MW of additional supply are projected to come on stream by 2018 or 2019, he said. Francia said Ayala now has a

total of 700 MW capacity, including the $1 billion power project on southern Mindanao island with a total capacity of 540 MW and funded by a combination of loan and equity.

Eight Philippine companies made the list of Forbes' 13th annual Global 2000 ranking of the world's most powerful and valuable companies. SM Investments, owned by the family of the country's richest man Henry Sy, was the highest-ranking Philippine company on the list at 911. SMIC's market capitalization is pegged at $16.7 billion. Its businesses include banking (BDO Unibank), retail (SM Retail)

and property (SM Prime). Forbes said the criteria for the Global 2000 ranking included sales, profits, assets and market value. Ayala-led Bank of the Philippine Islands (BPI) ranked 1243 on the Forbes list, with market capitalization of $9.1 billion. Telecommunications giant Philippine Long Distance Telephone Co. (PLDT) was at 1259th place, with $14.2 billion market capitalization. Metropolitan Bank & Trust

Co., owned by the family of tycoon George Ty, ranked 1297 on the Forbes list. The bank's market value is $7.1 billion. Ayala Corp. was ranked 1344 on the Global 2000 list, with a market cap of $11.2 billion. Its companies include Ayala Land, BPI, Manila Water and Globe Telecom. JG Summit, owned by the country's second richest man John Gokongwei, ranked 1525 on the list. JG Summit, which owns

Universal Robina Corp., Cebu Pacific and Robinsons Land, has a market value of $11.9 billion. Top Frontier Investment Holdings, whose CEO is Ramon Ang, ranked 1792 on the list, while Manila Electric Company ranked 1808. The Forbes Global 2000 list was topped by four Chinese companies, Industrial & Commercial Bank of China (ICBC), China Construction Bank, Agricultural Bank of China and Bank of

China. Forbes said this was the first time China had the world's four biggest companies. Warren Buffet's Berkshire Hathaway ranked 5th on the list, followed by JPMorgan Chase & Co., ExxonMobile, PetroChina, General Electric and Wells Fargo. Forbes said the Global 2000 companies account for a total of $39 trillion in revenues, $3 trillion in profits, $162 trillion in assets, and $48 trill ion in market value in 2015.

ASIA-PACIFIC

Japanese shares rose on Thursday, driven by domestic earnings optimism. Strong performances in retail, rail and hospitality sectors followed Wednesday's announcement that Japan had a record number of foreign visitors in the first half of the year. The Nikkei share average ended 0.4 percent higher at 20,683.95. The broader Topix climbed 0.6 percent to 1,664.88, and the JPX-Nikkei Index 400

rose 0.6 percent to 15,019.88. Hong Kong stocks, which have been moving mostly in tandem with their mainland peers, rose on Thursday, encouraged by a

six-day winning streak in the Shanghai market. The Hang Seng index rose 0.5 percent to 25,398.85, while the China Enterprises Index gained 0.9 percent, to 11,834.47 points. Most sectors, including financials, property and information technology rose, but the telecom subindex fell, led down by China's three industry giants. Shares of China Mobile, China Telecom and China Unicom dropped after the

Chinese government ordered the three to complete broadband fee cuts by the end of October.

Japanese media company Nikkei Inc. is buying the Financial Times as part of an 844 million-pound ($1.3 billion) deal with

Britain's Pearson PLC. The deal, announced Thursday, forms part of Nikkei's strategy to boost its global coverage. It also allows Pearson to concentrate on its core global education business. John Fallon, chief executive of Pearson, said the company has been a proud proprietor of the Financial Times for nearly 60 years, but that it's time for the salmon-colored business daily to change hands.

"We've reached an inflection point in media, driven by the explosive growth of mobile and social," he said in a statement. "In this new environment, the best way to ensure the FT's journalistic and commercial success is for it to be part of a global, digital news company." As part of the deal, Pearson has agreed to sell the vast majority of the assets in FT Group, including the Financial Times newspaper and

the popular FT.com. However, the 50 percent stake in The Economist Group will remain part of Pearson as will the FT's London headquarters. The sale of the Financial Times has been rumored for some time but the identity of its potential buyer proved something of a surprise. "Nikkei had not been viewed as one of the primary contenders," said Chris Beauchamp, senior market analyst at IG. It's a

bold move for Nikkei, the largest independent business media group in Asia. Its core business is newspaper publishing, and its flagship paper, The Nikkei, has about 3 million subscribers. The deal would be one of the largest-ever acquisitions by a Japanese media company, according to Nikkei Asian Review, one of the company's outlets. "By sharing personnel, knowledge and their long histories, the companies

aim to become an unprecedented global economic media player," the Nikkei Asian Review said. Digital business news will continue to be a main focus for the FT under Nikkei, the report added. Digital subscription now accounts for 70 percent of the paper's total circulation base. Pearson, which considers educational products and services its core business, acquired the Financial Times in 1957. The FT

Group, including the Economist stake, contributed 334 million pounds in sales and 24 million pounds in operating income to Pearson in 2014. Nikkei, founded in 1876, also operates media businesses including books and magazines, digital media, database servic es and broadcasting. In 2013 the company re-launched its English-language outlet, Nikkei Asian Review, online and in print as part of a strategy to

expand its coverage from Japan to Asia. Nikkei Chairman and CEO Tsuneo Kita says he is "extremely proud" to team with the FT. "Our motto of providing high-quality reporting on economic and other news, while maintaining fairness and impartiality, is very close to that of

BAIPHIL Market Watch – 24 July 2015

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the FT," he said. "We share the same journalistic values." The deal is subject to regulatory approvals and is expected to close before the

end of the year. Mitsubishi Motors Corp plans to quit building cars in the United States, according to a report from Japan, but U.S. officials with

the automaker declined on Thursday to comment. Japan's Nikkei news service said the plan to cease production at Mitsubishi's sole U.S. plant in Normal, Illinois, is part of a strategic shift to the growing Asian market. The company has "no statement," said a spokesperson for Mitsubishi Motors North America. The Nikkei report said Mitsubishi would look for a buyer for the plant, which opened in

1988 as a joint venture between Mitsubishi and its then-partner, Chrysler. The report also said Mitsubishi would begin negotiations with labor representatives to maintain employment for the plant's workers, who are represented by the United Auto Workers union. Normal Mayor Chris Koos, in an email on Thursday afternoon, said, "I have heard nothing, and am trying to get information" from the plant, which

is located about 140 miles southwest of Chicago. Mitsubishi is one of Japan's smallest carmakers. In 2014, it built 1.26 million vehicles. At its peak in the early 2000s, the Normal plant built more than 200,000 cars a year. Last year, production totaled 69,178, according to Mitsubishi.

China's Tsinghua Holdings is still discussing a potential deal to buy U.S. chipmaker Micron Technology Inc and hopes it could

eventually go through, the state-backed investment company's chairman told Reuters on Thursday. Sources told Reuters earlier

this week that Micron has dismissed an informal $23 billion offer from Tsinghua Unigroup, a private equity subsidiary of Tsinghua Holdings, on the presumption that a deal would be blocked by U.S. regulators. The mooted takeover of the last remaining U.S. dynamic memory chipmaker would be the largest foreign deal by a Chinese company. But analysts on both sides of the Pacific have downplayed i ts

likelihood, citing U.S. national security concerns. Xu Jinghong, chairman of Tsinghua Holdings, said he remained hopeful, although his firm has not held any discussions with U.S. regulators about Micron. "It would be of great significance to China's domestic semiconductor industry," Xu told Reuters, speaking on the sidelines of a business event in Taipei. "We hope the deal can eventually come through." Xu

added that his firm has not received any directive from Chinese government about the potential offer. Over the past year Tsinghua Unigroup has consolidated China's semiconductor sector and received financial backing from the state to close the technological gap with industry leaders like Qualcomm Inc. Still, the company has been wary about being seen as an extension of China's government, and says

its acquisitions have all been carried out with private capital. The political context is seen as the biggest hurdle to a prospective deal: Micron has told Tsinghua its offer is not realistic because U.S. authorities would block the deal due to national security concerns, according to people familiar with the matter.

Wal-Mart Stores Inc has taken full ownership of Chinese e-commerce firm Yihaodian.com, buying out the 49 percent stake that it did not already own to accelerate its push online, the U.S. retail giant said on Thursday. The investment will help Wal-Mart target China's fast-growing online market at a time when largely brick and mortar retailers are feeling the pinch of competition from online rivals

and a slowing of the world's second-largest economy. Wal-Mart's move also comes after China said last month it will allow full foreign ownership of some e-commerce businesses, with the goal of encouraging foreign investment and the development and competitiveness of the sector. "[Yihaodian's] local experience, combined with Walmart's global sourcing and our strong local retail presence and supply chain

will allow us to deliver low prices on the products customers need in new and exciting ways," Neil Ashe, head of Wal-Mart's e-commerce division, said in a statement. Wal-Mart, the world's largest retailer, added the purchase of the stake would help accelerate its e-commerce business in China and boost coordination between its physical and online stores. It did not disclose the price paid for the stake, which was

bought from former executives and financial services group Ping An. Wal-Mart's Asia head Scott Price told Reuters earlier this year that online retail was important to help tap China's younger generations and that the firm would increasingly look to weave together its online and offline presence in the market. Wal-Mart, France's Carrefour SA and Britain's Tesco PLC have all seen sales growth slip over the last

five years in China, losing market share to local rivals, according to consumer analytics firm Kantar Worldpanel. The U.S. retailer also announced on Thursday that company insider Wang Lu will take the helm at Yihaodian. The e-commerce firm's CEO and Chairman had quit earlier this month "to pursue their next venture". n 2012, Wal-Mart took control of Yihaodian by bumping up its stake to 51 percent.

Yihaodian, though, is dwarfed in China by e-commerce leaders Alibaba Group Holding Ltd and JD.com Inc. Singapore's headline inflation registered at -0.3% in June, a marginal increase from -0.4% in May. The Ministry of Trade and

Industry (MTI) said that the slight gain was mainly on account of larger increases in the costs of services, food, and private road transport. Services inflation increased slightly to 0.5% in June on back of higher costs of hotel stays and telecommunication services. Food inflation picked up to 2.0%, from 1.8% in the previous month, reflecting sharper price increases for hawker meals and restaurant food. Meanwhile,

MAS Core Inflation edged up slightly to 0.2%, compared to 0.1% in the previous month, given increased contributions from services and food costs.

REST OF THE WORLD

European equities fell in late trading on Thursday, with disappointing updates from companies including Aberdeen Asset Management and British energy supplier SSE putting pressure on their share prices. U.S. data showing the number of Americans filing new applications for unemployment benefits last week fell to its lowest level in more than 41 years also weighed on sentiment as

these numbers further strengthened the case for a U.S. interest rate hike, analysts said. The FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,577.48 points by 1342 GMT. This extended the index's fall in the previous session, when tech stocks dragged down the market after Apple's revenue forecast fell short of estimates. Aberdeen Asset Management was the biggest decliner in

the FTSEurofirst 300 index. Its shares fell 7.3 percent to their lowest in 1-1/2-years after the fund manager said it saw net outflows of 9.9 billion pounds ($15.5 billion) in the April-June quarter as institutional investors cut exposure to Asia and emerging markets equities. "We

BAIPHIL Market Watch – 24 July 2015

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have got concerns about the eminent prospect of a U.S. rate hike in the next couple of months and this is getting reflected in outflows.

Those companies which are heavily dependent on the emerging market for their final product may struggle," Peter Dixon of Commerzbank said. Investors kept a close eye on earnings reports, which have the potential to set the market's direction in the near term. SSE fell 4.9 percent after it predicted lower profits from its retail business this year, some weeks after the competition watchdog found households had

been overcharged some 1.2 billion pounds ($1.9 billion) a year. But Credit Suisse rose 7 percent, the top gainer in the FTSEurofirst 300 index and on track for its biggest one-day percentage gain since March. It had posted better-than expected earnings and improvements to its capital cushion ahead of a strategy shake-up under its new chief executive. "The Q2 results season is up and running and the early

indications are positive," said Robert Parkes, equity strategist at HSBC. "We believe there is plenty more to come and see the improving global business cycle taking over from currency as the key driver of earnings in 2016." Power and automation firm ABB rose 2.3 percent after its net profit beat analysts' expectations, while Unilever added 1.3 percent after reporting better sales than forecast. Analysts said

that attractive valuations could make European companies appealing to some investors. The STOXX Europe 600 index trades at 15.7 times its 12-month forward earnings, against 16.7 times for the U.S. S&P 500 index, according to Thomson Reuters Datastream.

U.S. stocks fell for the third straight day on Thursday after disappointing corporate results and forecasts added to concerns about the U.S. profit outlook. The Dow Jones industrial average fell back into the red for the year, with 3M, American Express and Caterpillar contributing the most to the average's fall. The Dow Jones transportation average .DJT was off 2.1 percent, with only one of its

20 components ending in the black. Union Pacific, down 5.7 percent at $92.12 after posting a lower quarterly profi t, led the decline in transportation shares and was among the S&P 500's biggest drags. "The initial take on big earnings reports has been lukewarm at best," said Bruce Zaro, chief technical strategist at Bolton Global Asset Management in Boston. "The strong dollar certainly has been mentioned

a lot, and I think there are still questions about demand in the economy and what would translate into revenue growth for most reporting companies." Caterpillar shares fell 3.6 percent to $76.88 and touched a four-year low. The world's largest construction and mining equipment maker reported sales declines in key markets in a sluggish global economy. American Express was down 2.5 percent at

$77.01 after its revenue missed expectations, while diversified manufacturer 3M was down 3.8 percent at $149.50 after cutting its full-year forecast. The Dow Jones industrial average fell 119.09 points, or 0.67 percent, to 17,731.95, the S&P 500 lost 12 points, or 0.57 percent, to 2,102.15 and the Nasdaq Composite dropped 25.36 points, or 0.49 percent, to 5,146.41. After the bell, however, Nasdaq 100 e-mini

futures NQc1 turned positive following results from Amazon, whose shares jumped 18 percent in extended trading. Also jumping after the close, Visa shares were up 7 percent following results. During the regular session, all of the 10 major S&P 500 sectors were lower with the utilities index .SPLRCU leading the decline with a 1.5 percent fall along with the materials index .SPLRCM, also down 1.5 percent. Dow Chemical's 5.2 percent drop to $47.45 weighed the most on the sector. Dow Chemical warned of soft demand in China after posting

stronger-than-expected results. Second-quarter S&P 500 earnings have been mixed, with 75 percent of companies so far beating analysts' profit expectations and just 52 percent surpassing revenue expectations, according to Thomson Reuters data. The S&P 500 is relatively expensive, trading at 16.9 times forward 12 months' earnings, above the 10-year median of 14.7 times, according to StarMine

data. Qualcomm fell 3.8 percent to $61.78, a day after the chipmaker said it may break itself up as it delivered its third profit warning this year. NYSE decliners outnumbered advancers 2,099 to 965, while on the Nasdaq, 1,908 issues fell and 869 advanced. The S&P 500 posted 31 new 52-week highs and 40 new lows; the Nasdaq Composite recorded 103 new highs and 143 new lows. About 7 billion shares

changed hands on U.S. exchanges, above the 6.5 billion daily average so far this month, according to BATS Global Markets. Greece's creditors prepared on Thursday for the start of bailout talks in Athens, after lawmakers adopted a second package of

reform measures before dawn despite a left wing rebellion that may bring early elections. In a sign of how the goal of coming to grips with the country's debt is swiftly sliding even further away, Greece's most influential think tank predicted a sharp drop back into recession. That adds to the headwinds facing leftwing Prime Minister Alexis Tsipras, who must negotiate a bailout worth up to 86 billion

euros with sceptical lenders while struggling to hold his divided Syriza party together. After another marathon session that ended in the early hours of Thursday, the Greek parliament voted overwhelmingly to approve the second package of reform measures. But 36 Syriza lawmakers rebelled, forcing Tsipras to rely on opposition votes. While his personal popularity is high, a renewed drop into recession after a

modest recovery last year would test his government's ability to push through the tough mix of tax hikes, spending cuts and economic reforms demanded by the lenders. A spokeswoman for the European Commission, one of the three creditor institutions alongside the European Central Bank and the International Monetary Fund, welcomed the Greek vote. Formal negotiations are due to start on Friday.

Greek officials say they aim to wrap the talks up and have a deal approved in parliament by Aug. 20, when a 3.4 billion euro repayment to the ECB falls due. The new IMF representative for Greece, Delia Velculescu, and officials from the Commission and the ECB are expected in Athens on Friday. Talks will be on two parallel tracks, one dealing with a new memorandum of understanding on act ions

Greece has to take and a second stream on the loans it hopes to obtain. But already there have been doubts about whether the severely weakened Greek economy can support the program after a six year-long slump that has cut national output by a quarter and sent unemployment over 25 percent. In its quarterly report, the IOBE institute said capital controls imposed last month to save the financial

system from a bank run would exact a heavy toll. Reversing a forecast for growth this year of 1 percent made as recently as April, it said the economy would contract by as much as 2.0-2.5 percent after growing 0.7 percent in 2014, and stay in recession next year. Banks have re-opened after the ECB restored emergency funding last week but capital controls remain in place, hobbling companies that deal with

suppliers outside Greece and highlighting the fragile state of the financial system. The extent of the IMF's future participation is also still unclear once its current program expires next year. The Washington-based institution says Greece's huge public debt must be restructured if the bailout is to have any chance of success but it faces resistance from reluctant European partners. "Clearly it's a difficult path ahead,

we're just at the beginning of the process," said IMF spokesman Gerry Rice. A senior Greek official said on Thursday that Greece would not reach a one percent primary budget surplus, net of interest rate payments, this year, missing a target agreed with the lenders prior to the imposition of capital controls. The banks, which would collapse immediately without the ECB's emergency funding, face

recapitalization but how much the operation will cost will only be known after banking stress tests due to start in August, the official said. The start of negotiations with the lenders has been overshadowed by the turmoil inside Syriza, which has raised the prospect of a snap election in September or October, once the deal is sealed. The rebellion was slightly smaller than in a vote on a first bailout bill last week

when 39 Syriza lawmakers dissented. But it confirmed the deep split in the radical leftwing party, which won power in January vowing to end austerity. Many Syriza lawmakers are furious at the perceived betrayal of their ideals. The party's political committee, which is also divided, is due to meet at 6.00 p.m. (1500 GMT). State Minister Nikos Pappas, one of Tsipras' closest aides, told the semi-state Athens

News Agency that the government would move to complete the bailout negotiations before taking a decision on its next political move. "Unfortunately, a rupture has been confirmed but I think we will get the procedures for the deal concluded first and then we will look into all these things at the party," he said. If the talks are not completed in time, European authorities who provided a 7 billion euro bridging loan

to allow Athens to meet debt repayments this week may have to provide further temporary financing. A senior Greek official said the

BAIPHIL Market Watch – 24 July 2015

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government wanted to have the bailout in place in time. European Economic Affairs Commissioner Pierre Moscovici said that a change in

the rules governing the EFSM, an EU fund that was used to provide the first bridging loan, would enable the fund to be used f or a second loan if needed. The new rules provide a guarantee to non-euro member contributor states which had been concerned that the fund, intended for the full 28-member EU rather than the narrower group of countries in the single currency, was being diverted to bail out the

euro. The number of Americans filing new applications for unemployment benefits last week fell to its lowest level in more than 41 and

a half years, suggesting the labor market maintained a solid pace of job growth in July. The sturdy jobs picture together with a strengthening housing market brings the Federal Reserve a step closer to raising interest rates this year. Initial claims for state unemployment benefits declined 26,000 to a seasonally adjusted 255,000 for the week ended July 18, the lowest level since November

1973, the Labor Department said on Thursday. Claims for the prior week were unrevised. However, last week's drop likely exaggerates the strength of the labor market as claims are volatile during summer when automakers usually shut assembly plants for annual retooling. Some firms keep production lines running, which throws off a model the government uses to smooth the data for seasonal variations. A

Labor Department analyst said there were no special factors influencing the data. Still, the decline unwound the increase in claims in June. The dollar pared losses against a basket of currencies, while prices for U.S. government debt fell. Most economists expect the U.S. central bank will hike interest rates in September. The Fed has kept its short-term lending rate near zero since December 2008. The four-week

moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 4,000 to 278,500 last week. The claims data covered the survey week for the nonfarm payrolls portion of July's employment report. Though the four-week average of claims increased 1,500 between the June and July survey periods, payroll growth likely remained above the 200,000 threshold

this month. The four-week moving average of claims has been below the key 300,000 mark, which is normally associated with sturdy job gains, for 17 straight weeks - an unusually long stretch. Payrolls increased 223,000 in June after rising 254,000 in May. Job growth has exceeded 200,000 in 14 of the last 16 months and at 5.3 percent, the unemployment rate is close to the 5.0 percent to 5.2 percent range

that most Fed officials consider consistent with full employment. Thursday's claims report showed the number of people still receiving benefits after an initial week of aid fell 9,000 to 2.21 million in the week ended July 11.

Caterpillar Inc reported a lower quarterly net profit and sales on Thursday due to weakness in mining, slower construction in Brazil and China, and declining orders for oil-related applications, sending its shares lower in premarket trading. The world's largest construction and mining equipment maker reported second-quarter net income of $710 million, or $1.16 per share, down from $999 million, or $1.57 a share a year earlier. Earnings per share excluding restructuring costs were $1.27, meeting analysts' expectations,

compared with $1.69 in the same quarter a year earlier. Lower sales volume and weakening currencies including the euro, Japanese yen and Brazilian real led to a decline in second-quarter revenue which fell to $12.3 billion, down 13 percent from $14.2 billion a year earlier. Shares were down nearly 3 percent in premarket trading. The company said the 2015 outlook for profit per share was unchanged at $4.70,

or $5.00 excluding restructuring costs. The company expects 2015 revenue of about $49 billion, down $1 billion from its previous forecast, with the downward revision pegged to unfavorable currency exchange rates. "We originally set the $50 billion sales and revenues estimate in January, and our expectations haven’t changed much since then. However, currency impacts from a stronger U.S. dol lar are

causing sales in many countries to translate into fewer dollars than we initially expected," Chief Executive Doug Oberhelman said in a statement. Caterpillar plans to repurchase nearly $1.5 billion of common stock during the third quarter of 2015. "We have a lot of cash on the balance sheet and some of that value should be returned to shareholders," Oberhelman said on CNBC Thursday morning.

UPDATED GUIDELINES ON SOUND CREDIT RISK MANAGEMENT – 07 August 2015 INVESTMENT 101 – 08 & 15 August 2015 DEVELOPMENTAL COURSE ON TREASURY PRODUCTS (8-Days)

- Basics of Financial Math – 11 July 2015 - Basics of Fixed Income Securities and Bond Duration (2 Days) – 18 July & 01 August 2015 - Spot, Forwards and FX Swaps – 15 August 2015 - Interest Rate Swaps – 19 September 2015 - Bootstrapping – 26 September 2015 - Currency Swaps and Forward Rate Agreement – 03 October 2015 - Financial Options – 10 October 2015

For details, please contact BAIPHIL via telephone (853-4457/519-2433) or email training@baiphil.org.

BAIPHIL Market Watch – 24 July 2015

Page 9 of 9

FY 2015-2016 Chairpersons/Coordinators

Audit Myrna E Amahan, UBP

BAIPHIL Week Rommel D Meniado, Rbank

Finance and Budget

Maria Victoria F Abanto, PNB

Membership Reuben Enrique I Estrada, Citibank

Legal and Regulatory

Marissa B Espino, ChinaBank

PR & Publications

Ma Bernadette T Ratcliffe, EWB

Programs & Attendance

Herminio J Matute, Northpoint Dev’t Bank

Research & Info Exchange

Sheryll K San Jose, EQUICOM

Special Projects

Ma Elena M Ruiz, Assoc Life

Member

Sports & Fellowship

Jose Enrico T Sandoval,

Bank of Makati

Technology Management

Rene S Natividad, BANCNET

Education & Training

Business & Products

Racquel S Manago, PBCom

Maria Elena S Guce, Citibank

Corporate Governance

Susan R Alcala-Uranza

Past President

Finance & Tax Marilou C Bartolome, MBTC

Audit, Legal & Compliance

Romel D Meniado, RBank

Blesilda P Andres, BPI

Loans & Credit Carlota A Bacani, ANZ Bank

Operations & Technology

Angelo DennisL Matutina, UBP

Racquel B Manago, PBCom

Risk

Management

Edeza A Que, PSBank

Racquel B Manago, PBCom

July 15-31

July 15 Ma Lourdes G Trinidad, RCBC Savings

July 16 Aida R Apostol, Associate Life Member

July 18 Fernando S delos Reyes, Deutsche Bank

Gary A Vargas, Planters Bank

July 19 Ma. Rodora E Banares, Bank of Makati

Florante M Garcia, HSBC

Articer O Quebel, Past President

Florentino M Mendoza, RCBC

July 20 Francis S Guanzon, Bangko Kabayan

Catalino T Solidum, Bank of Makati

July 21 Rowena A Marcelang, SCB

July 23 Elizabeth C Say, China Bank

Celia M Sotto, Associate Life Member

July 24 Ma. Christina B Goco, SBC

July 25

Noel A Flores, CTBC

Manuel C Valdez, PBB

Reynante S Banico, Associate Life Member

July 26 Jose Enrico T Sandoval, Bank of Makati

July 27 Lilia M Diokno, UCPB

July 30 Cenon M Ladringan,Producers Bank

TOUCHLINE - The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing to sell, at a given time in the trading day. The touchline therefore specifies the best bid or ask for a particular security at any point in time. Very liquid securities will

generally have a narrow bid-ask spread, while illiquid securities will have a wide spread.

“I have come to accept the feeling of not knowing where I am going. And I have trained myself to

love it. Because it is only when we are suspended in mid-air with no landing in sight, that we force our wings to unravel and alas begin our flight. And as we fly, we still may not know where we are

going to. But the miracle is in the unfolding of the wings. You may not know where you're going, but you know that so long as you spread your wings, the winds will carry you.”

- C JoyBell C

Why do Christians place their hands together in prayer?

The original gesture of Christian prayer was spreading the arms and hands heavenward. There is no mention anywhere in the Bible of joining hands in prayer, and that custom didn’t surface in the church until

the ninth century. In Roman times, a man would place his hands together as an offer of submission that meant, “I surrender, here are my hands ready to be bound or shackled.” Christianity accepted the gesture as a symbol of offering total obedience, or submission, to God.

If you had a 5-liter bowl and a 3-liter bowl, and an unlimited access to water, how would you measure exactly 4 liters?

BAIPHIL Market Watch – 24 July 2015

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Sources

BPI Asset Management Business World Philippine Daily Inquirer Philippine Star

GMA News ABS-CBN News Bulletin Today Reuters

Bloomberg CNN Wall Street Journal Strait Times

Investopedia Brainy Quotes Goodreads Corsinet – Trivia

Trivia Of The Day Filipi-Know Phrases.Org.UK Fun, Trivia & Humor

Compiled And Prepared By: Research Committee FY 2015-2016

Director: Maria Teresita R Dean (PBCOM) Chair: Sheryll K. San Jose (Equicom Savings Bank) Members: Rachelle A Fajatin (Equicom Savings Bank)/ Catalina R Avila (DBP)

DISCLOSURE: The BAIPHIL Market Watch (BMW) is for informational purposes only. The content of the BMW is sourced from third party websites and may be subject to change without notice. Although the information was compiled from sources believed to be reliable, no liability for any error or omission is accepted by BAIPHIL or any of its directors, officers or employees, and BAIPHIL is not under any obligation to update or keep current this information