Philippines - Market factors to watch - Jan 2

MANILA Jan 2 (Reuters) - Here are news stories and press reports which may influence local financial markets on Monday:

REUTERS NEWS - PHILIPPINES > Manila: Too early to clear Tampakan project > End-Sept foreign debt up 1.6 pct at $62.4 bln > S&P drops unsolicited rtgs on 7 Asian banks

LOCAL PRESS REPORTS

(Reuters has not verified these stories)

- Tariff reductions under a trade deal between the Association of Southeast Asian Nations and South Korea take effect this year, with both parties already considering fresh cuts, a Philippine senior trade official said. (BUSINESSWORLD)

- The Agriculture Department expects corn production last year to be a little below the target of 7.26 million tonnes due to damage caused by typhoons. (BUSINESSWORLD)

- The Philippine economy will likely grow 4.5 percent this year, faster than a projected expansion of 4.0 percent in 2011, supported by stable interest rates as well as consumer spending that derives strength from the billions of dollars sent home by Filinos working abroad, BDO Unibank Inc said. (PHILIPPINE DAILY INQUIRER)

- PNOC Exploration Corp, the upstream oil and coal arm of state-owned Philippine National Oil Co, plans to put up two power plants worth $400 million, its vice president for business operations said. (PHILIPPINE DAILY INQUIRER)

- The Bangko Sentral ng Pilipinas said the growth in the profit of local banks in 2012 may be dampened by the expected decline in interest rates. (PHILIPPINE DAILY INQUIRER)

- San Miguel Corp is likely to exercise its option to raise its stake in the Indonesian firm that controls Citra Metro Manila Tollways Corp, the concession holder and operator of the 15-kilometer elevated Skyway tollroad project. (PHILIPPINE STAR, MANILA STANDARD TODAY)

- Philippine Airlines and affiliate AirPhil Express are adding 10 aircraft to their fleet this year with the anticipated increase in passenger volume, PAL president Jaime Bautista said. (MANILA STANDARD TODAY, BUSINESSMIRROR)

- Prospective buyers of government shares in Metro Manila Transit Corp will have to reimburse the government about 32.08 billion Philippine pesos ($732 million) in loan payments on top of the minimum bid price to be set for the firm's elevated railway line, the Commission on Audit said. (MANILA STANDARD TODAY, MANILA TIMES, BUSINESSMIRROR)

MARKET NEWS > SE Asia stocks end 2011 on high note > Treasuries lead gains in 2011, stocks suffer > Oil ends 2011 up 13 percent, 3rd yr of gains > Euro hits 10-yr low vs yen, more trouble seen > Gold's 10 pct gain extends run to 11th year

---------------- MARKET SNAPSHOT AT 2207 GMT -----------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 1,257.60 -0.43% -5.420 USD/JPY 76.94 0.01% 0.010 10-YR US TSY YLD 1.876 -- 0.000 SPOT GOLD $1,568.84 0.00% 0.000 US CRUDE $98.83 -0.82% -0.820 DOW JONES 12217.56 -0.57% -69.48 ASIA ADRS 113.31 0.60% 0.68 -------------------------------------------------------------- ($1 = 43.8 pesos) Pan-Asia...... Japan........ S.Korea.... S.E. Asia............ Hong Kong... Taiwan..... Australia/NZ......... India....... China.....

OTHER MARKETS: Wall Street........... Gold....... Currency. Eurostocks........... Oil......... JP bonds.. ADR Report.......... LME metals.. US bonds.. Stocks News US... Stocks News Europe..

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