INQ7 MONEY - BREAKING NEWS
August 03, 2006
Updated 13:38:42 (Mla time)
Cecille Yap
Xinhua Financial News Service
(UPDATE) SHARE prices recovered from Wednesday’s steep drop to close sharply higher as investors took their cue from Wall Street's gains overnight and picked up stocks of major companies ahead of their results announcements next week, dealers said.
The composite index closed up 49.18 points or 2.13 percent at 2,357.55, after trading between 2,308.37 and 2,362.34.
The broader all-shares index gained 21.54 points to 1,450.55.
Gainers were double the number of losers at 60 to 30, with 42 stocks ending flat.
Volume reached 3.5 billion shares worth 1.18 billion pesos.
"Buyers are in the market aggressively waiting for discounts. Yesterday's decline was healthy and any further retreat will be most welcome for investors," DA Market Securities president Nestor Aguila said.
Most dealers expected the market to decline further after recent sharp gains that pushed up the composite index to an 11-week high on Monday.
"The market is in strong hands," said Aguila who was earlier predicting the key index to head south and test the 2,250 support level.
"This is a technical rebound that has been partly inspired by Wall Street's recovery last night," CitisecOnline.com analyst Mark Alan Canizares said.
Philippine Long Distance Telephone Co. was the most actively traded stock, rising 60 pesos or 2.99 percent to 2,065 on volume of 134,530 shares. The country's largest telecoms firm will report its second quarter earnings next
Tuesday.
Its rival Globe Telecom Inc., which earlier reported a 37 percent rise in first-half net profit, gained 30 pesos or 3.06 percent to close at 1,010.
Citigroup, in a research note, said Globe Telecom may decide to raise its dividend further next year after recently increasing it to 75 percent of prior year's net profit from 50 percent previously. Globe's robust cash flow, its declining capex and a lower debt burden will enable the company to raise its payout, Citigroup said.
Mall operator SM Prime Holdings Inc. rose 0.20 pesos or 2.53 percent to 8.10, while property developer Megaworld Corp. gained 0.06 pesos or 4.11 percent to 1.52.
Bank of the Philippine Islands recovered from recent weakness, advancing 2.00 pesos or 3.88 percent to 53.50. Banco de Oro Universal Bank was up 0.50 pesos at 31.50.
Ayala Land Inc. added 0.50 pesos to 13.50, while its parent Ayala Corp. rose 7.50 pesos to 420. Both firms will announce their quarterly results next week.
(One dollar = 51.64 pesos)
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