| PHILIPPINE stocks Thursday rose by the most in more than two months after President Gloria Macapagal-Arroyo said the Southeast Asian economy expanded in the first quarter at the fastest pace in nearly two decades.
A 6.9-percent economic growth rate in the first quarter may help raise state revenue, allowing the government to spend more on infrastructure like roads and bridges, boosting consumer spending in the second quarter, said Olan Caperina, who helps oversee about $4.7 billion at BPI Asset Management Inc..
“We expect the government to increase spending on infrastructure after the elections and our overseas Filipino workers to increase remittances and that will improve consumer spending,” Caperina said. The Philippines had its mid-term elections on May 14.
The Philippine Stock Exchange index rose 72.12 or 2.2 percent, to 3474.67 at the close. That’s the biggest one-day gain since March 22. Gainers outnumbered losers 111 to 6, while 46 stocks were unchanged in the broader market.
Philippine Long Distance Telephone Co. (PLDT), the country’s largest company by market value, climbed P85, or 3.4 percent, to P2,555.
About 15 percent of the Filipinos’ average income goes to cell-phone bills, Caperina said. Increased spending may increase earnings of PLDT and other phone companies, he said.
Ayala Land Inc., the nation’s biggest property developer, gained 50 centavos, or 3.3 percent, to P15.50.
Faster growth
THE economy grew 6.9 percent in the first quarter, Arroyo said. That’s the fastest pace in 17 years, according to the National Statistical Coordination Board. Economists expected 5.7 percent growth, according to a Bloomberg News survey.
Jollibee Foods Corp., the nation’s biggest fast-food company, rose 50 centavos, or 0.9 percent, to P55.50 after chief finance officer Ysmael Baysa said second-quarter sales growth may be “slightly higher” than the first quarter.
The company’s sales rose 15 percent to P8.7 billion in the first quarter from a year earlier, on higher consumer spending, chairman Tony Tan Caktiong said on May 11, when the company reported an 18-percent rise in profit to P531 million.
***** PSE strengthens rules on corporate governance By Honey Madrilejos-Reyes Reporter
THE board of the Philippine Stock Exchange (PSE) has agreed to further strengthen its rules on corporate governance as part of a strategic program to promote its practices to world-class standards and guarantee investors of the market’s transparency and reliability.
PSE chair Jose C. Vitug said one of the measures the board approved for immediate implementation is to require all listed firms to devote an area in their respective web sites in which disclosures will be uploaded simultaneous with the submission of the documents to the bourse and the Securities and Exchange Commission (SEC).
“While we are not contemplating the imposition of standard sanctions here like fines and trading suspension orders, those who refuse or fail to comply with the web site requirement will get a subtle punishment from us,” he said.
According to him, the bourse will list down the names of the noncompliant firms and print the list as part of the PSE’s annual report. This list will serve as fair warning to the public about the level of corporate governance standards being practiced by the affected firms.
Likewise, the board agreed to endorse and support the Corporate Governance Scorecard project of the Institute of Corporate Directors (ICD), a nonstock foundation that is leading an active campaign to promote good corporate governance practices in the country.
Good corporate governance is a set of standards designed to safeguard the interest of investors by requiring officers as well as members of the board of a corporation to be accountable and transparent with their actions.
The scorecard project, which ICD holds every year, is a ranking of firms, including listed companies, with high, low or no standards at all on corporate governance practices.
For his part, PSE president Francis Lim said the bourse and the ICD are exploring more joint activities that promote higher corporate governance standards.
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