Stocks post biggest gain in a mo.

By Ian C. Sayson

Bloomberg

PHILIPPINE stocks rose, sending the index to its biggest gain in a month on speculation better-than-expected earnings in the US will help the southeast Asian economy. Philippine Long Distance Telephone Co. (PLDT) and Ayala Land Inc. led the advance. “Sentiments are quite strong,” said Rico Gomez, who helps manage about $1 billion at Rizal Commercial Banking Corp. “External developments such as in the US and a flow of good economic data locally are helping keep an upbeat market.” The Philippine Stock Exchange index added 64.25, or 2 percent, to 3319.01 at the close in Manila, reversing an earlier decline of as much as 1 percent. It is the measure’s biggest gain since March 22. Shares in the US climbed on April 20, with the Dow Jones Industrial average reaching a record after earnings from companies including Caterpillar Inc. and American Express Co. topped estimates. The US is the biggest overseas market for Philippine products and also the largest source of money transfers for the southeast Asian economy. PLDT, the nation’s largest company by market value, jumped P60, or 2.4 percent, to P2,575, its highest close since February. Ayala Land, the nation’s most profitable lender, added 75 centavos, or 4.4 percent, to P17.75, its biggest gain in more than two weeks. Separately, the government said Monday that its budget deficit in the first quarter was P52 billion, compared with P67.6 billion a year ago. The government also said that its deficit for the whole of 2007 will not exceed its goal of P63 billion. Metropolitan Bank “The deficit figures are not that alarming” because the government may have accelerated spending to avoid a ban on starting projects in the 45 days before the elections, said Jonathan Ravelas, market strategist at Banco de Oro. “The government has shown it is capable of controlling spending.” Metropolitan Bank & Trust Co., the nation’s largest lender by assets, gained P1.50, or 2.4 percent, to P63.50, its first climb in eight days. SM Prime Holdings Inc., the nation’s largest shopping mall operator, added 25 centavos, or 2.1 percent, to P12. Shares worth P3.27 billion were traded, 20-percent less than the six-month daily average. Gainers beat losers, 74 to 34, with 61 stocks unchanged. Petron Corp., the largest of the nation’s two oil refiners, added 10 centavos, or 1.9-percent, to P5.50, extending a 1.9 percent climb on April 20. The company will spend P5 billion  for expansion this year. With reporting by Karl Yap in Manila.

 

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