JG Summit shares post biggest gain in 3 years

Business Mirror
Feb 16, 2006

JG Summit shares post biggest gain in 3 years

THE Philippine stock index on Wednesday rose, climbing for the fourth day in five. Philippine Long Distance Telephone Co. (PLDT) gained after its mobile unit, Smart Communications Inc., started giving customers a free trial for its third-generation mobile-phone services.

"The trial phase serves as a springboard in determining demand and a good way of maintaining excitement in an industry that is looking for growth catalysts," said Erwin Balita, an analyst at AB Capital Securities in Manila. "Over time, third-generation services will be the catalyst for phone companies."

JG Summit Holdings Inc. had its biggest gain for three years after its property unit reported its largest quarterly profit since at least 1999.

The Philippine Stock Exchange Composite Index rose 4.20, or 0.2 percent, to 2074.09 at the noon close in Manila , rebounding from Tuesday's 0.9-percent loss.

PLDT, the nation's largest phone company, rose P40, or 2.3 percent, to P1,770, reversing a two-day 1.1-percent loss. The stock contributed most of the gain in the benchmark index Wednesday.

Smart, a wholly owned unit, said its mobile-phone customers with third-generation handsets, which contain the latest technology, can use the service for free starting Tuesday. The nation's largest mobile-phone company said about 70,000 subscribers are already using its third-generation service.

Globe Telecom Inc., the nation's second-largest mobile-phone company, rose P10, or 1.3 percent, to P755, its first climb in seven days. The company plans to start commercial operations of its third-generation wireless service this year.

JG Summit Holdings Inc., owner of the nation's second-largest shopping mall operator Robinsons Land Corp., added 60 centavos, or 13 percent, to P5.20, its biggest gain since March 4, 2003.

Robinsons Land said its net income was P419 million (US$8.13 million) in the three months ended December 31, the first quarter for its fiscal year 2006. That's the company's biggest quarterly profit since 1999, according to available Bloomberg data. Robinsons Land gained 60 centavos, or 9.8 percent, to P6.70, its biggest gain since October 10.

Shares worth P2.47 billion (US$48 million) were traded, more than double the six-month daily average, partly due to the sale of additional shares in Universal Robina Corp., which resumed trading Tuesday. Gainers edged losers, 47 to 31, with 58 stocks unchanged. Bloomberg

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