Sunday, January 28, 2007

Shares close at new 10-year high

January 22, 2007
Updated 13:29:53 (Mla time)

Xinhua Financial News Service

SHARE prices finished at a new high in almost a decade led by telecom and banking issues, with investors snapping up stocks on the back of the economy's brighter prospects this year, dealers said.

They said buying centered on select blue chips led by Philippine Long Distance Telephone Co. and Ayala Corp.

At the close, the 30-company composite index was up 56.10 points or 1.82 percent at 3,141.28, after moving between 3,085.18 and 3,141.28. It was the index's best finish since April 2, 1997 when it settled at 3,162.21.

The broader all-share index rose 31.26 points to 1,952.25 .

Gainers trounced losers 95 to 34, while 45 stocks were unchanged.

Turnover was P2.7 billion, with P3 billion shares traded.

"The market is being paced by the very positive outlook on the economy and on expectations of higher corporate earnings for last year and this year," said Jose Vistan Jr., economist and research director of AB Capital Securities Inc.

Lawrence de Leon, analyst at Accord Capital Equities, said investor appetite for equities fueled the upward momentum in the market.

"The index hit a new high, which could bring us back to record levels, and add to that the bullish outlook on the economy. There is no negative news that could spoil the momentum at this point."

The government last week forecast gross domestic product to hit 6.1-6.7 percent as it expects Congress to finally approve the 2007 budget, allowing it to increase spending on critical social and infrastructure projects.

Dealers said investors were also hopeful the central bank would cut its key interest rates when it holds its monetary policy-setting meeting on Thursday.

Top-traded PLDT advanced P50 or 1.96 percent to 2,600.00, extending the gains of its New York-traded ADRs which closed up $0.51 at $51.71 last Friday, while rival Globe Telecom also climbed P15 or 1.18 percent to P1,290.

Conglomerate Ayala Corp. was up P10 or 1.71 percent to P595 while its unit Bank of the Philippine Islands edged up P2 or 2.94 percent to P70.

Banco de Oro Universal Bank gained P2 or 4.35 percent to P48 while Metropolitan Bank and Trust Co. was flat at P58.50.

SM Investments Corp. jumped P12.50 or 3.73 percent to P347.50 while its unit, SM Prime Holdings, gained P0.25 or 2.22 percent to P11.50.

Lopez family-controlled stocks also rose led by First Philippine Holdings, which ended up P0.50 or 0.7 percent at P72, while First Gen Corp. was steady at

P55.50.

Power distributor Manila Electric Co.'s A shares rose P2.50 or 3.94 percent to P66 while its B shares were up P2 or 3.08 percent at P67.

Food and beverage firm San Miguel Corp.'s A shares held steady at P63.50 while its B shares gained P0.50 or 0.67 percent to P75.

($1= P48.89)

http://services.inquirer.net/express/07/01/22/html_output/xmlhtml/20070122-44866-xml.html

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