Stock prices highest since 1999

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=03&dd=22&file=1

Stock prices highest since 1999
Posted: 4:06 AM | Mar. 22, 2006
Elizabeth L. Sanchez
Inquirer

THE stock market Tuesday surged to its highest level in six-and-a-half years, with prices closing 1.04 percent higher, on the back of positive economic news, analysts said.

Traders said foreign investors are seen returning to the Philippines after moving to the sidelines in the past few weeks amid continuing efforts to oust President Gloria Macapagal-Arroyo.

The Philippine Stock Exchange (PSE) composite index finished higher by 22.40 points or 1.04 percent at 2,185.71 points, after trading between 2,163.31 and 2,186.34.

It was the main index's best finish since Aug. 31, 1999, when it ended at 2,173.82, the PSE's research department said.

The broader all-shares index gained 13.76 points or 1 percent to 1,336.02.

Analysts said a crucial resistance or psychological level at 2,160-2,170 points was breached in Tuesday's trading. They said the breach could trigger another round of buying this week.

"There was a technical breakout, the next target is 2,200," Joseph Roxas, president at Eagle Equities Inc., said.

AB Capital Securities said in an advisory to clients: "The index will likely encounter resistance at the 2,200 psychological level."

All sectors were on the green, with value turnover reaching P1.5 billion. Gainers led losers 63 to 31, and 44 closed unchanged.

Trading totaled 1.9 billion shares worth P1.499 billion.

In the foreign exchange market, the peso was at 51.087 to the dollar at midday, when stock trading ended.

The peso closed Tuesday at 51.13 to the dollar, compared to its Monday close of 51.03. The currency trading totaled $390.50 million.

Stock market investors are cheering the fact that the government contained its budget deficit in the first two months of the year, while corporate earnings look solid and set to rise, analysts said.

"The market is buying all the good news," said Nestor Aguila of DA Market Securities Inc., although he cautioned that some stocks now appeared to be steep.

"We've seen strong foreign buying in the past sessions," said Nina Tinio of Unicapital Securities Inc. "It seems that confidence in the Philippine market has returned."

The national government kept its cash budget shortfall at P40.4 billion in the January-February period, 16 percent below the target limit, as improved revenue collection offset increased spending because of debt servicing.

The Department of Finance said that in February, when the value-added tax (VAT) rose to 12 percent from 10 percent, the budget deficit amounted to P25 billion, P2.2 billion below than the target ceiling.

The government kept its two-month budget deficit below the programmed ceiling of P48.1 billion despite some overspending in February.

Revenue collections of the Bureau of Internal Revenue (BIR), Bureau of Customs and Bureau of Treasury jumped across the board, helping the government raise P136.9 billion in revenues in January and February, up 21.1 percent from P113.1 billion in the same period last year and exceeding by P9.1 billion the two-month target set at P127.8 billion.

The BIR exceeded its two-month collection target by P2.5 billion, posting P91.2 billion, up 23.8 percent year-on-year.

Also, remittances from overseas Filipino workers surged by 16.5 percent in January to $917 million from $787 million a year ago on the back of increasing appetite to invest in local property assets.

Philippine Long Distance Telephone was the main mover, up P35 at P1,865.

Top-traded Ayala Corp. rose P5 to P350 while its unit Ayala Land Inc. gained 25 centavos to P11.

Globe Telecom Inc. was up P5 at P900.

Bank of the Philippine Islands fell P0.50 to P63 on profit-taking after rising in the past sessions.

San Miguel Corp. "A" shares ended steady at P60.50, while San Miguel Corp. "B" shares advanced P1.50 to P80.50. With Agence France-Presse, and INQ7.net