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081211 PHILSTOCKS 3.0 POWER & TELECOM SECTOR NEWS [x] FIRST DRAFT [] REVISION#5

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Global stocks seem to have bounced up and down this week, leading traders to struggle to keep their sanity intact. Then again, the global market seems to be in a not-so-well state in any case as confidence continues to wane. At the very least, the Philippine stock market seems to be recovering from the tremors around Asia, with some semblance of gains showing up for the stock market. The PSE index ended last Thursday to reveal a somewhat comforting 0.49% gain from its previous rate, and has recovered around 1% at its Friday opening, with the hopes that it might pull itself up back to pre-US downgrade levels. Somewhat comfortingly, the stock market index ended in the green side, gaining a somewhat measly 0.248% from its previous price. Sectors all appear to be on the green at the onset of the day, with special notice to the Mining and Oil sector, which had improved its previous standing by around 2% at the get-go. The day ended with almost all sectors gaining some ground from yesterday, save the Industrial and Services sectorial tickers. As usual, Mining and Oil ended up quite ahead of everyone else, with a notable 2.605% upward change in value from Thursdays value. The PNOC Exploration Corporation has just posted its profits to the PSE, standing at 52% growth in net income, attributable to higher average gas and condensate prices, among other factors. The government-owned and controlled corporation also reported a 7.5% gain in its revenues due in part to its 10% stake in the profitable Malampaya gas project which shows a lot of potential in gas production, as well as its other businesses in the energy supplication. This, along with declining costs of sales from its other businesses, allowed PNOC to achieve such gains in net income. In another segment, the National Grid Corporation of the Philippines publicized its pleasure at the news that President Benigno Aquino decided to curtail the imposition of electricity transmission taxes. As expressed by Henry Sy Jr., president of NGCP, consumers will be adversely affected due to higher transmission rates imposed on them, which is understandable as electricity providers tend to pass taxes for the general consumers to shoulder upon. While this could potentially mean lost revenues in the government side, the energy sector (and theoretically speaking through trickle-down economics, the average consumer) seems to have been saved from a potential rise in electricity rates. Of course, such news would mean that investors can at expect some gains to be had from lower costs of electricity transmission. Finally, in another episode of the long-running drama between PLDT and Globe Telecommunications, the Pangilinan-led telecommunications firm wants the National Telecommunications Commission to junk the motion of its long-standing rival to nullify the permits and frequencies awarded to PLDT and its many subsidiaries. Connected to that (pun unintended), PLDT is also seeking a similar action against Globes motion to put a halt to PLDTs acquisition of Digitel

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081211 PHILSTOCKS 3.0 POWER & TELECOM SECTOR NEWS [x] FIRST DRAFT [] REVISION#5

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Telecommunications, one of the Big Three in the telecommunications industry in due part to its Sun Cellular lineup. Pointing to the apparent hypocrisy of Globe in its acquisition of Islacom, as well as the allegations of ownership of Globe by other foreign telecommunications firms, PLDT says that Globe is in no position to allege the nature of the deal between PLDT and Digitel, and still insisting for them to push through with their deal with Digitel. When this fiasco will end, one cannot say but then again, it keeps investors hanging on to their seats and onto their stocks. Best for long-term investors to hold on and sell telecommunications stocks at strength.