The Philippine market returned to action a day after being forced to suspend trading Tuesday on inclement weather spewing optimism right off the opening bell, racking up gains of as much as 216.03 points or 5.8% inside the first half-hour. From that point on however, profit-takers, driven by a hangover of pessimism on the fate of Europe, took control, pulling the measure lower. At the final bell, the gains had been pared to 154.90 points or 4.16% to 3,876.12.

Benguet Corp. (BC) approved the proposed quasi reorganization and equity restructuring plan to reverse the company’s negative retained earnings. Its PhP2.2bn in negative retained earnings will be offset by revaluation increments in land and
capital surplus, which, once completed, will bring the mining company back to better financial health. Long-term Buy.

PetroEnergy Resources Corp. (PERC) has signed a 10-year PhP2.4bn loan with Rizal Commercial Banking Corp. (RCB) and Bank of the Philippine Islands (BPI) to finance the construction and development of Maibarara Geothermal Inc’s power project in Batangas. Maibarara Geothermal will put up a 20 MW geothermal, the first renewable energy project under the 2008 Renewable Energy Law, expected to be fully operational by 2013. MGI is 65% owned by PERC subsidiary PetroGreen Energy, 25% by Trans Asia Oil Energy and Development (TA), and 10% by PNOC Renewables Corp. Neutral for PERC and TA.

Aboitiz Power Corp. (AP) and Marubeni Corp. of Japan have agreed to develop, construct and operate a power plant in Quezon province. The proposed power plant will have a capacity of 400 MW and will be put up within the Pagbilao Power Plant complex. The Pagbilao complex houses the 700 MW Pagbilao Unit I and II coal-fired power plants. Team Energy Corp owns and operates the Pagbilao complex, of which Marubeni Corp is a partner. While Therma Luzon, Inc, which is an AP subsidiary, is Pagbilao’s IPP Administrator with PSALM. Long-term Buy.

AGP Industrial Corp. (AGP), NiHao Mineral Resources (NI) and Glencore International have agreed to form a venture that will utilize technical expertise in the mining industry. It will engage in identifying, acquiring, developing and operating mining claims of nickel deposits in the Philippines and other countries. The venture will be formed in Hong Kong. Glencore is an integrated commodities producer and marketer listed in London and Hong Kong. It has business operations in Metals and Minerals, Energy and Agricultural products. Trading Buy for AGP and NI.

Oriental Peninsula Resources Group, Inc. (ORE) confirmed that up to US$300m of Chinese investments could be used in the development of a hydroelectric, coal and nickel projects in the country. The company signed a Memorandum of Understanding with a Chinese investor during a recent state visit of President Aquino to China. At the same time, its unit, Citinickel Mines & Development is targeting a shipment rate of six per month beginning 2Q12 and double its revenue next year. Buy on weakness.

Trade with your own risk, be cautious fellow traders.

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