The peso rate closed lower at P52.39 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P52.32 the previous day. The weighted average rate depreciated to P52.456 from P52.24. Total volume amounted to $ 383.7 million.

NG likely

The government posted a budget surplus for the third straight month in June, Finance Secretary Margarito Teves said. While confirming the surplus to reporters, he declined to give the size of it, adding he would hold a press briefing on Monday. The surpluses in April and May, totalling a combined P23.4 billion, helped narrow the budget deficit for the first five months of the year to P44.2 billion from P67.6 billon at endMarch. The government is aiming for a budget deficit of P125 billion this year, representing 2.1 percent of GDP. That is much lower than the P146.5 billion deficit in 2005. Meanwhile, ING Wholesale Banking said it has raised its recommendation for Philippine dollar-denominated sovereign bonds to "overweight" from "neutral" after the government rejected proposals to raise the deficit target next year. "The demonstration of political will by the administration is in keeping with its track record over the last two years. The President, through her economic team, has implemented a challenging fiscal program that has produced significant fiscal consolidation," ING Wholesale Banking economist Joey Cuyegkeng said.

SMC to earn Coke sale windfall

San Miguel Corp. stands to gain a windfall of $ 1.1 billion should the food and beverage conglomerate decide to sell its entire 65 percent stake in Coca-Cola Bottlers Philippines Inc. to The Coca-Cola Company, Macquarie Research Equities said. But the brokerage doubts whether San Miguel will give up the Coke business completely. "Though it is too early to ascertain what San Miguel could gain from a (total) sell down, proceeds could go towards deleveraging, which we believe is of key importance to San Miguel," Macquarie analyst Nadine Javellana told clients in a note. As of the first quarter, San Miguel's debts totalled P127 billion of which P41 billion were current. Its interest expenses in the January to March period were up 26 percent year-on-year to P2.49 billion. "Though the outcome of the negotiations is still waiting on events, a decreased stake in CCBPI may not be taken negatively as the carbonated soft drinks business has been on a decline," Javellana added. CCBPI's contribution to San Miguel's operating earnings fell to 7 percent last year from 22 percent in 2004. San Miguel told the stock exchange early this week that it is involved in negotiations with the Atlanta-based soft drinks firm, including the possibility of Coca-Cola taking back a majority stake in CCBPI. It stressed that no definite agreements have been reached yet.

SunPower buys RP plant

SAN JOSE, Calif. (XFN-ASIA) -- Solar cell and solar panel maker SunPower Corp. said Thursday it bought a Philippines plant, near its existing facility there, to expand solar cell production capacity. The company did not give financial terms. SunPower said it now operates three solar cell production lines at its first plant, and is installing a fourth one. The new plant has the capacity for up to 10 additional production lines, the first of which is expected to begin in the first half of 2007.

Pawnshop gets remit partner

Travelex Money Transfer (TMT), a leading worldwide money transfer service provider, has tied up the country's leading pawnshop network Cebuana Lhuillier to provide international remittance service. Philippe AndrA[c] Lhuillier, Vice President of Cebuana Lhuillier Services Corporation said the cooperation will maximize the synergies of the two companies. TMT, currently present in 135 countries, is now delivering an innovative Internet-based money transfer service through its 20,000 plus agent locations. Cebuana Lhuillier has one of the largest networks of pawnshops in the Philippines with flexible working hours. Under this cooperation, Filipino customers can receive their cash remittance at Cebuana Lhuillier's locations during Sundays and public holidays. Philippe AndrA[c] Lhuillier was pleased to work with TMT in the remittance business. "We have opened up 400 branches to serve TMT initially. With the nationwide network of Cebuana Lhuillier and Pera Padala, the money remittance needs of our customers will be further served with this tie-up with TMT." Mohit Davar, CEO of TMT said the cooperation marks a milestone for TMT's business development in the Filipino remittance corridor. "At present, most TMT customers pick up their instant cash at our agent banks in the Philippines." "The agreement to merge our present reach with the extensive nationwide network of Cebuana Lhuillier will enable our customers to receive cash within minutes even on Sundays & public holidays." Steve Verleye said: "Coinstar prides itself on being a multi-national one-stop supplier for retailers' front-of-store needs.