May 08, 2007
Updated 14:48:17 (Mla time)
(UPDATE) MANILA, Philippines -- Share prices closed slightly higher, helped by another record close for the Dow Jones industrials overnight, but Philippine Long Distance Telephone Co. (PLDT) retreated after reporting flat first quarter earnings, dealers said.
Higher expenses and tax payments offset better revenues at the country's largest telecommunications firm, causing its net profit to slip to P8.575 billion for the three months to March from P8.581 billion in the same period last year.
However, its core income, which strips out the impact of foreign exchange and derivative gains, was 11 percent higher at P8.4 billion, compared to core earnings of P7.6 billion a year earlier.
Dealers said some investors also exercised restraint ahead of the May 14 midterm congressional polls.
The 30-company composite index edged up 4.06 points or 0.12 percent to settle at 3,333.95, after moving between 3,329.89 and 3.357.88.
The broader all-share index rose 9.55 points to 2,121.04.
Gainers beat losers 60 to 44, while 57 stocks were unchanged.
A total of 2.6 billion shares worth P4.7 billion were traded.
Dealers said the composite index managed to breach the 3,325 resistance level as some investors took their cue from the Dow's bull run. The Dow Jones Industrial Average crossed 13,300 for the first time on Monday, securing its 20th record close since the start of the year.
"We have to confirm in the next few sessions if that level could hold. If it does, the next resistance would be 3,400," said Gomer Tan, an analyst at Regina Capital Development Corp.
Tan said while market sentiment was generally bullish, investors remained guarded ahead of next Monday's congressional elections.
"If the political exercise is peaceful though, the market will likely go up since a credit rating upgrade (for the
Most international credit rating firms have put their review of the country's credit ratings on hold, opting to wait for the results of the elections.
However, other dealers said expectations of strong first quarter corporate earnings are outweighing election jitters.
"Investors are responding more to positive earnings. Except for one senatorial candidate calling for a repeal of the expanded value-added tax law, there is no economic platform being sounded off as anti-market," said Jose Vistan Jr., head of research at AB Capital Securities.
Top-traded PLDT shed P15 or 0.58 percent to P2,550.00 after the release of its flat quarterly earnings, reflecting market's disappointment.
But PLDT chairman Manuel Pangilinan said the company expects its core profit for the full year to come in at P33 billion, the top end of its guidance.
He said PLDT, controlled by Hong Kong-listed First Pacific Co. Ltd. with a 29 percent stake, also remains committed to distributing 70 percent of its core profit this year to its shareholders, half of which will be declared in August.
Despite flat profits, "PLDT's revenue is still higher, and it is expected to continue growing as the company expands its related business and as it looks for new revenue stream," said Ron Rodrigo, an analyst with Unicapital Securities.
PLDT rival Globe Telecom Inc. gained P45 or 3.61 percent to P1,290.
Other advancers include SM Investments Corp., which rose P7.50 or 2.07 percent to P370 and unit, mall operator SM Prime Holdings Inc., which inched up P0.25 or 2.17 percent to P11.75.
Property developer Ayala Land Inc. climbed P0.25 or 1.39 percent to P18.25 while Megaworld Corp. fell P0.05 or 1.41 percent to P3.50.
Food and beverage conglomerate San Miguel Corp.'s A-shares were steady at P64.50, while its B-shares closed up P1.50 or 2.04 percent at P75. The company will announce its first quarter results later Tuesday.
http://services.inquirer.net/express/07/05/08/html_output/xmlhtml/20070508-64745-xml.html
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