By Ian C. Sayson
Bloomberg
PHILIPPINE stocks rose to the highest in almost 10 years after the central bank said the inflow of funds into country, net of outflows, grew by more than half last year.
“The economic outlook remains positive,” said Jerome Gonzalez, who helps manage about $40 million at PhilEquity Fund in Manila. “The balance of payment surplus is an indication of the confidence in the economy and a sign that there’s demand” for the country’s assets.
Philippine Long Distance Telephone Co. (PLDT), Globe Telecom Inc., and Manila Electric Co. advanced. SM Prime Holdings Inc. rose to a record on optimism it will not be affected by a predicted rise in mall vacancies in Manila. Vulcan Industrial & Mining Corp. jumped after the government extended its permit to explore for gold and copper.
The Philippine Stock Exchange Index gained 40.17, or 1.3 percent, to close at 3081.73, rebounding from a 0.9-percent loss Wednesday. The measure closed at its highest since April 3, 1997.
PLDT, the nation’s most valuable company, gained P85, or 3.5 percent, to P2,490. Globe Telecom, the nation’s second-biggest mobile-phone company, rose P55, or 4.5 percent, to P1,275, its biggest advance since November. 10.
Manila Electric’s Class A shares, equity reserved for Filipinos in the nation’s largest power retailer, advanced P3.50, or 5.7 percent, to P64.50, rounding a five-day, 16-percent climb. Its Class B shares, which have no ownership restrictions, added P4.50, or 7.3 percent, to P66, its highest since February 11, 2001.
‘Still optimistic’
The nation had a $3.77-billion balance of payment surplus last year, exceeding the $2.4 billion in 2005, due to record inflows from Filipinos working abroad, a narrower trade deficit and higher investments, the central bank said Wednesday after trading closed. Balance of payment is the broadest measure of a nation’s financial transactions with other countries.
“Investors are still optimistic about the country’s economic outlook and they are buying those companies that will benefit from this growth,” said Ron Rodrigo, head of research at Unicapital Inc. in Manila.
Lender Metropolitan Bank & Trust Co. advanced P1, or 1.8 percent, to P57.50, its highest close since December 1, 1999, on expectations its profit last year probably jumped to the highest in at least 17 years.
The bank’s profit probably reached P5.5 billion in 2006, president Arthur Ty said earlier this week. Ty’s forecast is the bank’s biggest net income since at least 1990, according to available Bloomberg data.
SM Prime
MANILA Water Co., which services half of the Philippine capital, added 20 centavos, or 2.2 percent, to P9.40. The company said Thursday that it will release earnings later this month.
The utility, owned by Ayala Corp., probably had P2.22 billion in profit last year, according to Bloomberg earnings estimate. Manila Water earned P2.01 billion in net income in 2005.
Separately, SM Prime Holdings, the nation’s largest shopping mall operator, gained 50 centavos, or 4.4 percent, to P12, its highest ever. Ortigas & Co. said yesterday that vacancies in Manila and its neighboring towns and cities may rise to 15 percent this year from 12 percent in 2006, because of an expected 11-percent addition in retail space. “SM Prime’s mall expansion stands a good chance of succeeding rather than raising industry-wide mall vacancies,” said Joe-An Alitagtag, analyst at Philippine Equity Partners Inc. Alitagtag advised investors to buy the stock and expects SM Prime’s share price to rise to P13.70 in the next 12 months.
Vulcan Industrial, which has been posting losses since 1997, advanced 8 centavos, or 5.6 percent, to P1.52. The miner said the government extension allows it to explore an area in central Philippines.
Share worth P3.87 billion were traded, 51-percent more than the six-month daily average. Gainers beat losers 76 to 34, with 52 stocks unchanged in the broader market.
http://www.businessmirror.com.ph/0119&202007/companies02.html
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