Shares close higher; key index above 2,600

INQ7 MONEY - BREAKING NEWS

October 20, 2006
Updated 13:17:40 (Mla time)

Xinhua Financial News Service

(UPDATE) SHARE prices closed higher for the third straight day amid optimism over corporate results for the third quarter and a bright outlook for the economy, pushing the main index to a fresh seven-year high above 2,600 points, dealers said.

Philippine Long Distance Telephone Co. again led winners, while conglomerate Ayala Corp. was hit by profit-taking.

At the close, the 30-company composite index was up 20.26 points or 0.78 percent at 2,617.41, near the day's high of 2,620.95. It hit a low of 2,597.15.

It was the index's highest close since July 5, 1999 when it ended at 2,621.67. It gained 2.4 percent for the week.

The broader all-share index rose 10.67 points to 1,608.74.

Gainers led losers 76 to 28, while 61 stocks ended unchanged.

A total of 1.63 billion shares changed hands worth P2.38 billion.

"The momentum carried us above the 2,600-point level and this positive sentiment may spill over to next week," Westlink Global Equities chairman Rommel Macapagal said.

Aside from excitement over corporate earnings here with companies due to start releasing third-quarter results later this month, he said the Dow Jones Industrial Average's record-breaking close above 12,000 last night also inspired investors.

"Clearly there is momentum and money is flowing into the market, particularly in companies that are expected to report strong earnings for the third quarter," said Mark Alan Canizares, a stock analyst at CitisecOnline.

PLDT, the most briskly traded stock, rose p20.00 pesos or 0.88 percent to close at p2,285.00 on volume of 195,660 shares.

Ayala Corp. fell P7.50 or 1.52 percent to P485.00.

"Some investors might have switched profits from Ayala Corp. to buy laggard issues," Macapagal said.

Banco de Oro Universal Bank advanced P0.50 to P41.50 and Bank of the Philippine Islands was up P2.50 at P58.50.

Property developer Megaworld Corp. gained P0.06 to P2.06.

Food and beverage firm San Miguel Corp.'s A and B shares were steady at P66.50 and P73.50, respectively.

Macapagal of Westlink Global Equities sees thin trading volumes on Monday with the market shut the following day for a public holiday. Trading will resume on Wednesday.

($1= P50.05)

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