Share prices jump to near seven-year high

Friday, April 28, 2006

Share prices jump to near seven-year high

Philippine share prices rose Thursday, hitting their highest levels in nearly seven years on gains led by market leader Philippine Long Distance Telephone Co. (PLDT), dealers said. Investors are positioning themselves in anticipation of a healthy set of first-quarter results, while the continued decline in oil prices also buoyed up the market, they said. The government’s refusal to waive the value-added tax (VAT) on petroleum products despite high oil prices also aided sentiment, dealers said. The composite index added 34.25 points to 2,281.39 after trading between   2,258.51 and 2,284.08. It was the index’s best finish since August 6, 1999, when it closed at 2,298.18. The all-shares index rose 20.95 points to 1,409.13. Volume was 2.1 billion shares worth P2.9 billion ($55.98 million). Gainers beat losers 54 to 44, with 52 stocks unchanged. The peso traded at 51.885 to the greenback as of mid-day. “We have the first-quarter earnings season in focus,” said Mark Alan Canizares of Citiseconline. Canizares said that while concerns about high oil costs remain, the government’s decision not to touch the VAT on oil products provided some comfort to investors, who had feared that scrapping the VAT on oil products would seriously damage the government’s fiscal program. The government will instead slash the 3 percent oil tariff to soften the impact of high oil prices on consumers. PLDT, the most actively traded stock, rose P40 to a record P2,035 after its American Depositary Receipts advanced in New York overnight. Dealers said PLDT was cheap at below P2,000, considering its healthy financial profile. SM Investments was up P11 at P240, while Aboitiz Equity Ventures rose 10 centavos to P5.50. San Miguel A-shares rose P3.50 to P64 while its B-shares were steady at P81. --AFP

 

http://www.manilatimes.net/national/2006/apr/28/yehey/business/20060428bus9.html