Sunday, April 29, 2007

Shares end at new 10-year high

Xinhua Financial News Service
Last updated 02:06pm (Mla time) 02/23/2007

MANILA, Philippines -- Broad-based buying, with many blue chips rebounding from recent losses, propelled the main index on Friday to its best finish in a decade, dealers said.

They said the market was trying to break out of its consolidation phase, as the benchmark index flirted with the 3,400 resistance level throughout the session.

At the close, the 30-company composite index was up 23.84 points or 0.71 percent at 3,389.37, after moving between 3,369.58 and 3,399.67. It was the index's highest close since Feb. 5, 1997 when it settled at 3,396.04. The all-time high was 3,447.60 set on Feb. 3, 1997.

The key index recorded a gain of 1.7 percent from last week.

The broader all-share index rose 24.96 points to 2,172.78.

There were 97 gainers and 35 losers, while 12 stocks were unchanged.

A total of 10.6 billion shares worth P5.9 billion changed hands.

"Yesterday's correction was viewed by some investors as enough for the market to continue its uptrend. But obviously there's strong resistance at the 3,400-point level," Westlink Global Equities chairman Rommel Macapagal said.

The composite index pierced the 3,400 level on Wednesday but finished the session below that mark as profit-taking soon ensued.

Nestor Aguila, president at DA Market Securities, said foreign funds continued to pour in and that "excess liquidity" was being channeled to the equities market given the low yields on government securities.

Among the major index movers were the country's two biggest conglomerates -- SM
Investments Corp., which rose P7.50 to P387.50, and Ayala Corp., up P10 at P620.

Philippine Long Distance Telephone Co. advanced P15 to P2,610.

The biggest winners, however, were mining and oil stocks led by Philex Mining Corp., which gained P0.35 or 8.24 percent to close at P4.60, and top-traded PNOC Energy Development Corp., which jumped P0.70 or 11.86 percent to P6.60.

The mining and oil sub-index soared 327.63 points to 5,386.18.

Food and beverage firm San Miguel Corp.'s A-shares were unchanged at P66.50, while its B-shares fell P1 to P77.50.

Westlink Global's Macapagal said it was difficult to predict the market's direction on Monday following its volatile performance this week.

"It could go either way," he said, adding that the market was still digesting news that the central bank has eased rules on investment outflows and banks' dollar holdings in a move largely seen to slow the peso's appreciation against the dollar.

"The market needs to build a stronger base before retesting the 3,400 resistance level," he said.

http://business.inquirer.net/money/breakingnews/view_article.php?article_id=51205

 

No comments: