Stocks advance on export gains

PHILIPPINE stocks rose on Wednesday, extending this month’s rally, after better-than-expected March export figures added to evidence that the economy is improving.

Philex Mining Corp. and other local miners advanced after gold touched a 25-year high, climbing as much as 0.2 percent to $702.90 an ounce in after-hours electronic trading in New York.

“The economic numbers are looking so good that you can almost taste it,” said Rico Gomez, who helps manage about $1 billion at Rizal Commercial Banking Corp. “We are also seeing some sectoral shift from commercial-industrial to mining stocks with gold reaching over $700.”

The Philippine Stock Exchange Index rose 17.26, or 0.7 percent, to 2,529.49 at the noon close in Manila, extending this month’s gain to 11 percent. The Mining and Oil Index jumped 7.2 percent to 5446.52, its highest close since April 11, 1997.

March exports grew 25.8 percent from a year earlier as electronics sold more components abroad, a government report showed. That’s the fastest pace in six years and more than double the 10.5-percent increase forecast by economists in a Bloomberg News survey.

Separately, the agriculture department said farm output grew 3.9 percent in the first quarter, the fastest in more than a year, as farmers planted more crops in the second half of last year to take advantage of higher rainfall.

Exports, harvests

A pickup in exports and better harvests may help the Philippines achieve the higher end of its 5.5-percent to 6.2-percent economic growth forecast this year. Bank of America this week raised its 2006 growth forecast for the Philippines to 5.3 percent from 4.7 percent.

“The good economic numbers are helping boost what is already bullish market sentiment,” said Gomez.

Ayala Land Inc., the nation’s largest builder, added 50 centavos, or 3.5 percent, to P14.75. Metropolitan Bank & Trust Co., the largest Philippine lender by asset, rose 50 centavos, or 1.1 percent, to P44.50.

Globe Telecom Inc., the country’s second-largest mobile phone company, rose P45, or 4.4 percent, to P1,080.

Philex Mining’s Class A shares, the nation’s most profitable producer of copper and gold, jumped 60 centavos, or 14 percent, to P4.80, its highest close on record. Its Class B shares, which have no ownership restrictions, gained 45 centavos, or 11 percent, to P4.75.

Lepanto Consolidated Mining Co.’s Class A shares added 2 centavos, or 5.4 percent, to P39, its first gain in seven sessions. Lepanto’s Class B shares gained 1 centavo, or 2.5 percent, to 41 centavos.

First Gen gains

FIRST Gen Corp., the third-largest Philippine power producer, rose beyond its initial public offer price for the first time after the company said first-quarter profit grew and it will pay higher dividends this year.

Shares of First Gen added P2, or 4.3 percent, to P48.50, topping its 47 peso IPO price for the first time since it started trading in February. First Philippine Holdings Corp., which controls First Gen, gained P1.50, or 3.1 percent, to P50.50, bringing its four-day gain to 15 percent.

Shares worth P2.28 billion changed hands, 46-percent more than the six-month daily average. Gainers edged losers, 64 to 36, with 50 unchanged. Bloomberg

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