Posts from — September 2011

The main Philippine Stock Exchange index lost 210.14 points, or 5.13 percent, to close at a six-month low of 3,885.96.

This was the worst single-day performance since Oct. 27, 2008, when the PSEi plummeted 12.3 percent after US investment bank Lehman Brothers collapsed under the weight of the US sub-prime property crisis.

The local index had the gains made earlier this year wiped out and is now 7.5 percent below the end-2010 level.

All counters were sold down, with the mining/oil and property counters the most battered, falling 9.87 percent and 6 percent, respectively.

Some P8.2 billion worth of shares changed hands in trading that saw nearly 13 stocks declining for every single stock that advanced. Foreign selling exceeded foreign buying by P270 million for the day.
It’s said to say but yesterday was really bad for the stock market.

“The 3Rs continue to feed the bears—recession fears on the global economy, renewed risks in the capital markets especially with possible default of European countries and the retreat of investors to safer investment instruments,” said Astro del Castillo, managing director at local fund management firm First Grade Holdings.

“Fundamentally, we are stable but definitely not immune to the realignment of fund managers,” he said.

Bargain Hunting

This may be an opportunity for bargain hunters who would take advantage of the drop of stock prices. I’m quite excited about this and might buy. It’s still sad though..

A lot of banks have been doing this for the past few years and Chinabank isn’t going to be different:

China Banking Corporation (China Bank) has launched Money Lift Quarterly. A five-year-and-one-day time deposit product that offers high interest rates from 4.00%* p.a. for a minimum P50,000 to as high as 4.75%* p.a. for P1 million and above – tiered rates apply for other deposit amounts, substantially higher than other regular savings and time deposit accounts. Best of all, interest earned is tax-free (free from witholding tax if held to maturity) and paid out quarterly. Much more, document stamp taxes

Prayer is the spirit speaking truth to Truth.

~ Philip James Bailey

Prayer does not change God, but it changes him who prays.

~Søren Kierkegaard

Prayer may not change things for you, but it for sure changes you for things.

~Samuel M. Shoemaker

When at night you cannot sleep, talk to the Shepherd and stop counting sheep.

~Author Unknown

When you pray, rather let your heart be without words than your words without heart.

~John Bunyan

This is the news about LBC Bank which was just placed under receivership by the PDIC:

LBC Development Bank, a unit of the LBC Group, has been placed under receivership of the Philippine Deposit Insurance Corp. (PDIC).

In a statement over the weekend, PDIC said it took over the assets and liabilities of LBC bank after the Monetary Board of the central bank determined that the institution was plagued by liquidity problems.

“All valid accounts and deposit insurance claims will be paid as soon as possible,” PDIC said in a statement.

LBC Development Bank, with head office on JP Rizal St. in Makati City, had 19 branches nationwide.

As of end-June this year, total deposits placed with the bank amounted to P6.09 billion. Of the amount, P3.73 billion is covered by insurance, PDIC said citing bank records.

In terms of number of accounts, there were 321,516 as of June, 99.4 percent of which are fully covered by deposit insurance, said PDIC.

The government insurance agency said the placement of the thrift bank under its receivership would not significantly affect its resources. PDIC noted that the insured deposits with LBC Development Bank made up only a tenth of one percent of total deposits in the country’s banking system.

Under PDIC’s charter, deposits worth P500,000 or below are covered by insurance. Deposits in excess of the amount may or may not be paid depending on the amount to be raised from the liquidation of a closed bank’s assets.

PDIC will conduct forums in areas where branches of LBC are located so that depositors of the bank will know how to claim insurance.

Owners of deposit accounts worth P10,000 or below need not apply for insurance claims. In their case, PDIC will simply mail notices to them and they can withdraw from designated redemption offices, like branches of Land Bank of the Philippines.

The placement of LBC Development Bank under receivership may come as a surprise to the bank’s depositors given the institution’s track record.

LBC Bank was previously awarded the “superbrand” status by Superbrands Philippines Council, which cited it for being one of the most reliable and trusted brands.