THE Philippine stock index rose Tuesday, extending its longest winning streak in more than two years. Metropolitan Bank & Trust Co. climbed after the lender reported better-than-expected profit in the third quarter.
"Expectations of higher earnings are supporting stocks," said Jerome Gonzalez, who helps manage $30 million at PhilEquity Fund. "The earnings that are coming in will help sustain the flow of funds into equities."
Ayala Land Inc. rose after the company said it plans to build a $120-million office development in Metro Manila serving call-center operators and providers of outsourced business services.
The Philippine Stock Exchange Index added 0.31 to 2,708.50 at the noon close in Manila, rounding off a 6.5 percent, nine-day gain. The index, which last rose for nine days in the period ended September 13, 2004, climbed 5.9 percent this month.
Overseas investors on average purchased a net $9.3 million of local shares in the past eight sessions, almost five times the $2-million six-month daily average, according to stock exchange data.
Metrobank, the nation's largest lender by assets, rose P2, or 4.4 percent, to P47, a five-month high. The bank said third-quarter net income totaled P1.31 billion ($26 million), beating the P1.1-billion estimate of Gilbert Lopez, an analyst at Macquarie Securities Ltd.
Security Bank Corp., a lender that will be added to the main stock index in December, gained 50 centavos, or 0.8 percent, to P61, a record. The bank said Monday that nine-month profit grew 51 percent to P1.35 billion, surpassing its full-year net income in 2005.
Ayala Land, the nation's largest builder, gained 25 centavos, or 1.7 percent, to 15.25 pesos. The first two buildings in its development announced Monday, which will compete with rival Megaworld Corp.'s Eastwood City, will be built next year, chief finance officer Jaime Ysmael said.
Separately, Digital Telecommunications Philippines Inc., a fixed-line and mobile-phone operator, lost 4 centavos, or 2.6 percent, to P1.52, rounding its biggest two-day slump in four months. The stock is one of four companies that will be deleted from the main stock index by December.
Empire East Land Holdings Inc., which will also be taken out from the measure, dropped 2 centavos, or 3.5 percent, to 56, its biggest loss since September 12. Metro Pacific Corp., another index company that will be replaced, fell 16 centavos, or 6.7 percent, to P2.22.
Shares worth P2.07 billion were traded, 3.4 percent less than the six-month daily average. Losers beat gainers 72 to 25, with 50 stocks unchanged in the broader market. (Bloomberg)
Business Mirror
November 1, 2006
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