The Philippine Ship Agents Association (PSAA), a professional organization of 47 shipping companies engaged in foreign trade, has elected its officers and members of the board for 2013 at the Midas Hotel, Roxas Boulevard, Pasay City. Inducted were Virginia C. Madlang-Awa, President; Virgilio F. Angeles, Vice President-Internal; Leo Philip G. Buñag, Vice President-External; Walter L. Coronel, Secretary; Ruben M. Santos, Treasurer; Ernan D. de Leon, Director; Sophia M. Grande, Director; Joselito B. Ilagan, Director; Ligert Bryan Lee, Director; Rogelio C. Salonga, Director; Arnel C. San Diego, Director; Abraham V. Tablizo, Director; Jesus V. Verocel, Director; Raoul B. Viray, Director; and Robert Y. Yu, Director.  The inducting officer was former LFTRB Chairman, Albert C. Suansing, while Atty.Nicasio Conti of MARINA as guest speaker.

Philippine economy to accelerate in 2nd half

The domestic economy is expected to accelerate in the second half of the year, while inflation rate would continue at 3% for most of 2013, according to the latest forecast  by the FMIC & UA&P market research.

“Due to base year effects, the first quarter may see inflation average at 3%, but the trend would be downward in subsequent quar­ters. We expect full-year inflation to average 2.8%,” says FMIC-UA&P.

“Government bond yields would continue to ease, albeit at a slower pace. Since short-term T-bills are already very low, the action would likely occur in the far end of the curve.”

FMIC-UA&P expects con­tinued influx of overseas Filipino workers’ (OFW) remittances and foreign portfolio capital, lower inflation rates, and less supply of government papers due to the lower deficits and bor­rowing requirements of the national government.
“We see a decline in yields in the first quarter with a little recovery in the second and third quarters with a downward trend in the fourth quarter.”

FMIC-UA&P believes that foreign flows would continue to drive the equities market in 2013. “Our call for the PSEi is 6,800 by the end of 2013 based on assumptions of an 18% earnings growth and 18.5x price-to-earnings (P/E) ratio.”

“Our earnings growth assumption is a significant premium to a consensus forecast of 14.32% and the P/E ratio may be seen as well above perceived ‘fair’ value of 16x.  However, the strong economic growth could justify higher earnings assumption, while robust foreign inflows can lead to an elevated P/E ratio,” the report added.