Market gains on hopes of favorable Q1 economic data

The Philippine Star 05/31/2006

Share prices closed 0.75 percent higher yesterday due to expectations that the government would soon release favorable first-quarter economic growth figures, dealers said.

They said last-minute buying drove the market higher following a listless session, although the light volumes suggest many investors were on the sidelines.

The Philippine Stock Exchange composite index gained 17.19 points to 2,300.08 after moving between 2,275.47 and 2,303.54.

Volume was 1.02 billion shares worth P1.2 billion.

The all-shares index rose 7.29 points to 1,437.16.

Gainers led losers 43 to 34, with 50 stocks unchanged.

Economists said the economy is likely to expand by five to six percent year-on-year in the first quarter, thanks to a recovery in farm output which complements a robust services sector.

"Today investors just took advantage of the key index’s low level and took positions ahead of the GDP (gross domestic product) data due out (on Wednesday)," said Astro del Castillo of First Grade Holdings Inc.

"The market is at oversold levels. A technical rebound is imminent but the bulls must rest for the meantime. I think the market will remain in consolidation mode before moving higher amid a generally positive long-term outlook on the economy," Del Castillo added.

Philippine Long Distance Telephone Co. (PLDT), the most actively traded stock, advanced P35 to P2,045.

Ayala Land was up 25 centavos at P12.75 while Bank of the Philippine Islands rose 50 centavos to P52.50.

San Miguel Corp.’s A and B shares retreated 50 centavos each to close at P63.50 and P71.50 respectively.

The company’s Class B shares, which overseas investors can own, rose 50 centavos, or 2.4 percent to P21.50.

Elsewhere, Jollibee Foods Corp., which outsells McDonald’s Corp. in the Philippines, gained 50 centavos, or 1.5 percent, to P35.

International Container Terminal Services Inc., which operates ports in the Philippines and four other countries, rose 25 centavos, or 1.9 percent to P13.50.

Trading totaled P1.2 billion, about 28 percent lower than the average over the past six months. Union Bank of the Philippines, the Manila-based lender, which is buying International Exchange Bank, rose 50 centavos, or one percent to P47 after the company said it may sell as much as $150 million worth of bonds this year to help finance its acquisition. – AFP

 

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