RP stocks advance, led by Manila Water Jollibee drops

Business Mirror

Feb 14, 2006

 

RP stocks advance, led by Manila Water Jollibee drops

PHILIPPINE stocks on Monday rose for a third day. Manila Water Co. (MWC) gained after the utility said its profit increased last year by more than half on higher sales.

Jollibee Foods Corp. and San Miguel Corp. fell on concern consumer spending may slow after oil companies raised gasoline prices.

The Philippine Stock Exchange Composite Index added 2.35, or 0.1 percent, to 2,087.64 at the noon close in Manila , rebounding from an earlier loss of as much as 0.4 percent. The index added 1.2 percent in the previous two sessions.

MWC, which services the eastern half of the capital, gained 10 centavos, or 1.6 percent, to P6.30. The company said profit in 2005 grew 51 percent to P2.01 billion from a year earlier as sales rose more than a third to P5.68 billion.

Ayala Corp., the parent of MWC, rose P5, or 1.5 percent, to P335, a six-day high.

Stocks were also boosted after Fitch Ratings raised its debt-rating outlook for the country to "stable" from "negative." Fitch said this month's increase in the value-added tax to 12 percent from 10 percent will help narrow the government's budget deficit.

Jollibee Foods, the nation's largest fast-food company, fell P1, or 2.8 percent, to P35. San Miguel Corp.'s Class B shares, stocks in the nation's largest food and drinks company that have no ownership restrictions, declined 50 centavos, or 0.6 percent, to P84.

"Rising gasoline prices isn't good for consumption-sensitive stocks," said Alfred Dy, research head at CLSA Philippines Inc. "Higher fuel costs eat into disposable income, leaving consumers with less money to spend on other things."

Philippine oil companies including Petron Corp. raised prices by 1.3 percent Sunday, citing higher costs of crude. World oil prices have climbed about 1.3 percent this year, after jumping 40 percent in 2005 and 34 percent in 2004.

Petron, the nation's largest oil refiner, added 5 centavos, or 1.1 percent, to P4.65, a six-day high.

Philippine Long Distance Telephone Co., the nation's largest phone company, fell P5, or 0.3 percent, to P1,745.

Shares worth P1.07 billion were traded, compared with the P1.08-billion daily average in the past six months. Bloomberg

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