050807: RP stocks post biggest gain in 2 wks

PHILIPPINE stocks rose the most in more than two weeks. Bank of the Philippine Islands and Philippine Long Distance Telephone Co. (PLDT) led the advance. The Philippine Stock Exchange index gained 51.41, or 1.6 percent, to 3329.89 at the noon close. Advancers outnumbered decliners 60 to 44 in the broader market. Finance secretary Gary Teves over the weekend 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.” Bank of the Philippine Islands, the nation’s biggest lender by market value, surged P4.50, or 7 percent, to P88.50. PLDT, the nation’s biggest company by market value, climbed P45, or 1.8 percent, to P2565. Shares also rose on optimism inflation will stay within the government’s forecast, Santos said. Central Bank Governor Amando Tetangco Monday said inflation will be at the “lower end” of the bank’s 4 percent to 5 percent forecast this year. --Bloomberg

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