Peso appreciates alongside Greece debt fix

MANILA, Philippines—The peso rises together with other Asian currencies on Wednesday as continued efforts to resolve the fiscal problem of Greece further appeased market concerns over the debt situation in the Euro zone.

The local currency closed at 43.135 against the US dollar, up by 11.5 centavos from Tuesday’s finish of 43.25:$1.

Intraday high reached 43.115:$1, while intraday low settled at 43.26:$1. Volume of trade rose to $995.94 million from $800.43 million previously.

Traders said progress of discussions to resolve the debt situation of Greece prompted investors to buy some emerging market assets, including those from the Philippines, thereby lifting Asian currencies.

The European Union has expressed intention to help Greece meet its obligations, thus appeasing creditors and the international financial community.

Traders also said some investors bet on continued rise in interest rates in Asia, and so they buy assets denominated in Asian currencies to take advantage of the projected rise in yields.

-with reports from Michelle V. Remo of Inquirer.net

PH stocks rebound, end higher

MANILA, Philippines—Local stocks swung back to positive territory on Wednesday as investors took heart from news about Germany leading a second bail-out package for debt-strapped Greece.

The main-share Philippine Stock Exchange index added 41.82 points, or 0.98 percent, to finish at 4,286.46.

Investors across the globe cheered recent developments in Greece. On Wall Street, the Dow Jones Industrial Index was up by 128.21 points, or 1 percent, to 12,569.79.

Lepanto “A,” AGI, Megaworld, PLDT, Metrobank, DMCI, Philex, ICTSI, BPI, Meralco, Ayala Corp. and FLI led the index higher. Likewise a big gainer was San Miguel Corp., the day’s most actively traded stock. Atlas Mining and Vista Land were also among the gainers.

The day’s index rise was tempered by the losses incurred by URC, Aboitiz Power, EDC and BDO.

Index heavyweight PLDT promptly bounced after a steep fall on Tuesday that was in turn caused by concerns over opposition to its takeover of Gokongwei-led Digitel. The services index thus led the day’s upswing by sector, rising by 2.66 percent.

There were 78 advancers as against 62 decliners while 33 stocks were unchanged.

-with reports from Michelle V. Remo of Inquirer.net

RP Diplomacy with China to be maintained, despite Spratly dispute-defense chief

MANILA, Philippines—Defense chief Voltaire Gazmin on Wednesday said that despite the recent surge in alleged incursions of Chinese ships and planes into the Philippine-claimed territories in the disputed Spratly islands in South China Sea, diplomacy will continue to be maintained.

“We have to respond diplomatically to this issue. The most we can do is file diplomatic protests—that is the most civilized thing to do at this moment,” Gazmin said during the Communication and News Exchange Forum at the Philippine Information Agency in Quezon City.

The defense chief, quoting Armed Forces chief of staff General Eduardo Oban Jr., said that they had received five to six reported intrusions this year. Most of them were reportedly committed by Chinese vessels, the latest occurring last May 21 and 24 wherein Filipino fishermen reportedly saw Chinese vessels unloading steel posts near the Likas and Patag islands, some 100 nautical miles off Palawan, well within the Philippine territory.

On Monday, seven Vietnamese fishing vessels were also apprehended within Philippine territorial waters, Gazmin added.

Gazmin reiterated that the military, though ready to defend the nation, currently does not have the capability to do so.

“Ang Armed Forces ay handang ipagtanggol ang bansa kahit anong estado natin pero kung numero na lang, 1.2 billion yata sila (Chinese population) against our 90 million. Pagsabay-sabay lumundag yun, baka magka-earthquake. (The Armed Forces is ready to defend our country at whatever level of preparation we have, but with their [Chinese’s] sheer number alone at 1.12 billion, if they all jump at the same time on the Spratlys there might be an earthquake). Kidding aside, we are not in a position to confront them. This is one of the rising powers in Asia,” Gazmin said.

Meanwhile, Oban said that the military’s Western Command has been ordered to increase its existing number of defense men and conduct more routine patrols in the disputed areas.

“The instruction remains the same: continue patrols, maritime patrols within territorial boundaries, be more vigilant in terms of intelligence gathering and frequent reconnaissance patrol via air,” Oban said.

-with reports from Katherine Evangelista of Inquirer.net

DoTC Secretary De Jesus resigns

MANILA, Philippines—(UPDATE) Citing his desire to return to private life, Transportation and Communications Secretary Jose “Ping” De Jesus will step down from his post on June 30, a year after he assumed office, an official of the Department of Transportation and Communication said Wednesday.

De Jesus “will not change his mind,” said Transportation and Communication Undersecretary Dante M. Velasco. “He will still be available to the President for advice, but as a private citizen.”

“It’s not because of his health. He wants to return to the private sector,” Velasco said, referring to his 76-year-old boss. Velasco said De Jesus revealed that he never intended to stay at the DoTC for more than a year.

Velasco said De Jesus submitted his resignation on Monday afternoon and it was accepted by President Benigno Aquino III on Wednesday morning. As late as Tuesday evening, De Jesus dismissed as rumors reports that he had resigned.

“I am serving as long as I am needed. If I am no longer needed, then I will leave,” De Jesus told the Philippine Daily Inquirer late Tuesday evening. Velasco said De Jesus denied reports of his resignation so as not to preempt Malacañang.

De Jesus could not be reached for comment on Wednesday. He is the first Aquino Cabinet member to resign from his post.

Before joining the DoTC, De Jesus was the president of Manila Electric Co. (Meralco), the country’s largest power distributor. He also served as president of Manila North Tollways Corp., operator of North Luzon Expressway.

De Jesus’ resignation comes ahead of a rumored Cabinet revamp to remove some “underperforming” officials.

“I don’t think (De Jesus) was going to be affected by the revamp because the President was surprised by the resignation,” Velasco said.

De Jesus “loves the Aquino family very much. He does not want this act to hurt his relationship with his family,” Velasco said. The decision was reached, Velasco said, after consultation with a member of the Aquino family.

De Jesus had served under the administration of late former President Corazon Aquino as secretary of public works and highways. One of his landmark projects at the time was the construction of overpasses on Epifanio de los Santos Avenue or Edsa that decongested Metro Manila’s major thoroughfare.

Velasco said he and other undersecretaries were caught off guard by De Jesus’ resignation.

“We had an all-day meeting last Tuesday. We were drawing up plans for the next five years and he was setting a lot of deadlines,” Velasco said. “There was no indication at all that he was going to leave.”

Since joining the DoTC, De Jesus has ordered the review of several key infrastructure projects that were approved by the previous administration.

These include the controversial Northrail project that aimed to build a cargo and passenger train line linking Metro Manila to key Northern Luzon provinces. The project, funded by a loan from the Chinese government, has been plagued with cost overruns that would result in Chinese contractor Sinomach getting more money from the government for less work.

Another project currently under review is the Greater Maritime Access or GMA Ports Project. A review committee formed by De Jesus earlier found that the project aimed to build 72 ports that the country did not need.

Velasco said the review of these contracts as well as other reforms would go on even without De Jesus.

“The secretary has established the foundation of good governance in the DoTC. He has ordered the review of all contracts and started a culture of honesty and transparency,” Velasco said.

Stradcom Corp., the controversial information technology systems provider for the Land Transportation Office, expressed surprise over De Jesus’ resignation.

“This is a big loss to the administration of President Aquino as Secretary de Jesus is not only a man of competence but also of unquestionable integrity. He is well-respected in both the political and business communities,” the company said in a statement.

Stradcom has been at the center of several controversies regarding its multibillion-peso contract with the LTO. An intra-corporate dispute at Stradcom, involving a certain Bonifacio Sumbilla who claimed to be the company’s new owner, led to a failed takeover of the company’s operations last December.

The takeover resulted in the seven-hour paralysis of Stradcom’s and the LTO’s operations. In a justice department investigation, LTO chief Virginia Torres, handpicked by Mr. Aquino for the post, was found to have sided with the Sumbilla faction to remove Stradcom chairman Cezar Quiambao.

De Jesus recommended that Torres be suspended to allow for a deeper probe into the matter. Mr. Aquino ordered Torres to go on a 60-day leave of absence, which ends on June 19.

Velasco denied that De Jesus was pressured to resign due to disagreements with the President on whether to replace Torres or allow her to return to her post. Torres is a close friend and “shooting buddy” of the President.

Velasco denied that there was any rift between De Jesus and the President.

De Jesus “cannot be pressured by any outside forces. He respects the President but he is in command of everything here at the DoTC. His resignation is purely his decision,” Velasco said.

-with reports from Paolo G. Montecillo of Inquirer.net

4 Philippine schools included in Top 200 Asian universities 2011

Four Philippine universities get into the Top 200 Asian Universities for 2011, career and education network QS declared.

The University of the Philippines, RP's best university, docked at number 62 in Asia. It was followed by the Ateneo de Manila University (68th in Asia), University of Santo Tomas (104th in Asia), and De La Salle University (107th in Asia)

Moreover, eleven other universities were also listed at the 201+ ranks in Asia. These include the Mindanao State University, Xavier University, Polytechnic University of the Philippines, Silliman University, Father Saturnino Urios College, Mapua Institute of Technology, Adamson University, Saint Louis University, Central Mindanao University, University of San Carlos, and University of Southeastern Philippines.