Market gains ground on selective bargain hunting

Market gains ground on selective bargain hunting

The Philippine Star 01/13/2006
http://www.philstar.com/philstar/NEWS200601130703.htm

Share prices closed 0.37 percent higher yesterday on selective interest after a modest downturn Wednesday, dealers said.

They said profit-taking in telecoms limited the upturn but overall sentiment remains positive, with the market holding at 10-month highs on growing optimism about the country’s economic fortunes.

The composite index added 7.94 points to 2,158.65 after trading between 2,147.72 and 2,162.22. Volume was 642.4 million shares worth P1.27 billion.

The broader all-shares index was down 2.08 points at 1,018.62.

Gainers led losers 56 to 23, with 56 stocks unchanged.

Dealers said that while investors remain confident, there is some temptation to take profits too and this is keeping the market in check for the moment.

"Investors may be liquidating some of their holdings (in select stocks) to raise cash for an upcoming Initial Public Offer (IPO)," said Nestor Aguila of DA Market Securities.

Electricity producer First Gen, a unit of listed First Philippine Holdings, has tentatively scheduled its IPO from Jan. 31 to Feb. 6.

Ayala Land led the gains, finishing up 25 centavos at P10.50. Its parent company, Ayala Corp., was unchanged at P340 and affiliate Bank of the Philippine Islands was steady at P56.

Equitable PCI Bank rose P2 to P65 after key shareholders opposed a proposal to merge with Banco de Oro, which ended steady at P36.

Equitable PCI’s gain came after local newspapers reported that its major shareholders are lukewarm to a merger offer from Banco de Oro, prompting some investors to speculate the latter may try to sweeten the offer terms.

Philippine Long Distance Telephone Co. fell P10 to P1,845 while Globe Telecom declined P5 to P765.

San Miguel A-shares, limited to Filipino investors, were steady at P64.50 while San Miguel B-shares, available to Filipinos and foreigners alike, gained 50 centavos at P88.50.

"Technically, the market’s upward trend over the long term is intact. The appetite for stocks is still there," said DA Market Securities president Nestor Aguila.

The positive outlook is anchored on expectations that the government’s fiscal health will continue to improve as crucial tax reform measures are put in place, analysts said. The peso is expected to continue to strengthen against the dollar, aided in part by remittances from overseas Filipino workers, they added.

Ayala Land ended up 2.4 percent at P10.50, Jollibee rose 2.5 percent to P40.50.

All sectoral indicators advanced, except the all shares subindex, which retreated. Gainers led decliners 56 to 23, while 56 stocks were unchanged. – AFP, AP