THE Philippine stock index rose for a 10th day, its longest winning streak in more than six years, on speculation the Bangko Sentral ng Pilipinas (BSP) would keep interest rates unchanged Thursday.
“A rate cut isn’t necessary now because the market is too liquid and that’s helping support the positive sentiment that has been lifting stocks,” said Rico Gomez, who helps manage about $1 billion at Rizal Commercial Banking Corp.
Banco de Oro gained after Equitable PCI Bank (EPCIB), a lender it is to merge with, said bad loans fell in the third quarter. Metro Pacific Corp., a builder owned by Hong Kong’s First Pacific Co., fell to a record low, leading the decline among stocks that will be removed from the nation’s main stock index by December.
The Philippine Stock Exchange Index added 13.28, or 0.5 percent, to 2,721.78 at the noon close in Manila, after climbing 6.5 percent in the previous nine trading days. The last time the index climbed for 10 straight days was in the period ended July 11, 2000. The market was closed Wednesday for a holiday.
The BSP said October 31 that money supply accelerated 14.5 percent in September, its fastest pace this year, supporting expectations it will keep interest rates at a four-and-a-half year-high in a meeting later Thursday.
“There is too much liquidity in the market that even if the central bank keeps interest rates where they are, this will not be taken negatively,” Gomez said.
The main stock index, which Thursday closed at its highest since July 7, 1997, has climbed 30 percent this year, the largest in Southeast Asia after the Jakarta Composite Index.
Bank of the Philippine Islands, the nation’s most profitable lender, gained 50 centavos, or 0.8 percent, to P62.50. Metropolitan Bank & Trust Co., the country’s largest lender by assets, added 50 centavos, or 1.1 percent, to P47.50.
Banco de Oro, which will create the nation’s largest lender with its planned merger with EPCIB, gained P1, or 2.3 percent, to P44. EPCIB, the nation’s third-largest lender by assets, added 50 centavos, or 0.7 percent, to P72.50.
EPCIB said after trading closed on October 31 that bad loans as a percentage of its total loan portfolio fell to 4.8 percent, compared with 5.3 percent a year ago.
Shares worth P2.02 billion ($41 million) were traded, 5.6 percent less than the six-month daily average. Gainers beat losers 45 to 41, with 58 stocks unchanged in the broader market.
The Philippine Long Distance Telephone Co., the nation’s largest phone company, climbed to a record, adding P20, or 0.9 percent, to P2,380, on speculation that a stronger peso will make it cheaper for the company to pay its foreign-denominated debts.
The peso traded as low as 49.705 against the dollar Thursday.
Metro Pacific lost 26 centavos, or 12 percent, to P1.96, its lowest close. Digital Telecommunications Philippines Inc., the nation’s second-largest fixed-line operator, fell 4 centavos, or 2.6 percent, to P1.48, after a two-day, 5-percent slump.
Class B shares of Manila Mining Corp., which have no ownership restrictions, fell 0.1 centavo, or 4.4 percent, to 2.2, its biggest decline in a month.
Metro Pacific, Digital Telecom and Manila Mining are among four companies to be removed from the main stock index later this year, according to the stock exchange. Shares of Empire East Land Holdings Inc., the fourth company to be taken out, were unchanged. (Bloomberg)
Business Mirror
November 3, 2006
http://www.businessmirror.com.ph/comp03.php
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