MONEY - BREAKING NEWS
January 09, 2007
Updated 13:11:50 (Mla time)
(UPDATE) SHARE prices closed higher Tuesday, snapping a three-day slide, on bargain-hunting interest inspired by falling domestic interest rates and the rebound on Wall Street overnight, dealers said.
Benchmark Treasury bill rates dropped to record lows at Mondayʼs auction, driven down by the improvement in the government's fiscal position, which has allowed it to reduce its borrowing.
At the close, the 30-company composite index was up 20.00 points or 0.68 percent at 2,972.32, near the day's high of 2,972.80. It had hit a low of 2,952.32.
The broader all-share index rose 11.82 points to 1,858.13.
Gainers beat losers 58 to 46, while 56 stocks ended unchanged.
A total of 3.72 billion shares worth P2.87 billion changed hands.
"The low T-bill rates encouraged investors to buy stocks in anticipation of a shift in investor preference towards instruments with better yields, as government securities become less attractive," said Mark Alan Canizares, an analyst at CitisecOnline.com.
He said the drop in T-bill rates was "in line with our expectation of a low interest rate environment this year following the fiscal reforms implemented by the government."
"The market's slide for the past three sessions also provided an opportunity for investors to buy stocks at lower prices. Other markets in the region were also firmer this morning following a rebound on Wall Street last night," he added.
Analysts said low interest rates might boost property sales and encourage companies to borrow more money from banks.
Banking and property stocks led today's winners, with top-traded Metropolitan Bank & Trust Co. gaining P1 to P53. Bank of the Philippine Islands was up P1 at P65.50.
Ayala Land Inc. advanced P0.25 to P15.75 and SM Prime Holdings Inc. gained P0.25 to P11.75.
Filinvest Land Inc. was up P0.12, or 7.06 percent, at P1.82 after the company announced an annual cash dividend policy of 20 percent of its consolidated net profit in the preceding year and a follow-on offering of up to 5.4 billion shares to Filipino and foreign investors.
Philippine Long Distance Telephone Co. was steady at P2,450.
Food and beverage firm San Miguel Corp.'s A-shares were unchanged at P64, while its B-shares advanced P0.50 to P75.
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