050807: Index surges 51 pts on back of strong Wall St

The Philippine Star 05/08/2007

Share prices closed 1.57 percent higher yesterday, extending gains in line with regional markets after another record breaking Wall Street performance Friday, dealers said.

The composite index finished up 51.41 points at 3,329.89, just off the day’s high of 3,330.58. It hit a low of 3,278.48.

The broader all-share index rose 21.82 points to 2,111.49.

Gainers led losers 60 to 44, with 63 stocks unchanged. Turnover was 3.12 billion shares worth P4.89 billion.

"Investors saw bargain-hunting opportunities following last week’s consolidation, especially in companies that are expected to do well this year based on the first-quarter results that are trickling in," said Astro del Castillo of First Grade Holdings.

However, he said that with only seven days to go before the May 14 mid-term congressional elections, investors might be tempted to lock in profits quickly.

Bank of the Philippine Islands (BPI) jumped P4.50 to P68.50 after the country’s second largest lender reported a 28 percent year-on-year increase in net profit to P3.2 billion in the three months to March.

Philippine Long Distance Telephone Co. (PLDT) was up P45 to P2,565 ahead of the release Tuesday of quarterly results at the country’s dominant telecommunications firm.

Globe Telecom rose P25 to P1,245.

Ayala Land advanced 50 centavos to P18. The property developer will release its financial report on or before Wednesday.

San Miguel A and B shares were unchanged at P64.50 and P73.50, respectively, on the eve of the release of its first quarter results.

Finance Secretary Margarito Teves yesterday said tax collection is improving, after the government reported on April 23 that the deficit widened in March as it collected less than expected.

Rising revenue "is very good for the market," said Lamberto Santos, chairman of AB Capital Securities Inc. "Better collection, if sustainable, signals the government is on track to meeting its target of a balanced budget next year without imposing additional taxes." Shares also rose on optimism inflation will stay within the government’s forecast, Santos said. Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco said inflation will be at the "lower end" of the bank’s four percent to five percent forecast this year. – AFP

 

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