January 25, 2007
Updated 13:37:27 (Mla time)
MANILA, Philippines -- (UPDATE) Share prices closed higher for the sixth straight session after expectations of a cut in interest rates encouraged bullish investors to continue to snap up select stocks, dealers said.
Dealers said buying had also been spurred by the rise in merchandise imports in November, an indication that exports would continue to be steady in the coming months.
At the close, the 30-company index was up 30.44 points or 0.94 percent at 3,275.19, after moving between 3,254.53 and 3,292.84.
The broader all-shares index was up 17.80 points at 2,016.05.
Gainers beat losers 76 to 34, while 65 stocks ended unchanged.
Volume was 2.3 billion shares worth P4.8 billion.
Dealers said strong fund inflows chased select blue chips led by market heavyweight Philippine Long Distance Telephone Co. (PLDT) and SM Investments Corp.
"There's too much money chasing too few index issues at the moment. Foreign investors are evidently very bullish about the Philippines, and their interest extends to issues outside of the main index," said James Lago, research head of Westlink Global Equities Inc.
"Expectations of a cut in the central bank's key interest rates drove investors to buy stocks. Positive developments in several corporates also inspired buying, with the play focused on select stocks," said Chelsea Dipasupil, research head of RCBC Securities Inc.
Dealers said investors are optimistic the central bank will cut its key interest rates when its monetary board meets this afternoon.
They said a rise in the country's merchandise imports in November also fuelled buying.
The National Statistics Office said imports in November grew 13.4 percent from a year earlier to $4.508 billion, after rising 12.5 percent in the previous month, driven mainly by increased orders for electronics and fuel products.
"November imports were much stronger than expected, which produced a wider-than-expected trade deficit. The fastest pace of import growth in three months is a hopeful sign for future exports; two-thirds of imports are used in electronic exports," said Tim Condon, economist at ING Financial Markets Research.
Top-traded PLDT finished P55 higher or 2.01 percent at P2,795, after its New York-traded ADRs gained $1.57 to $56.27 overnight, while its rival Globe Telecom Inc. rose P10 or 0.78 percent to P1,295.
SM Investments Corp. rose P20 or 5.41 percent to P390.
Ayala Corp. was up P5 or 0.81 percent at P625.
Manila Electric Co.'s A shares rose P2 or 2.88 percent to P71.50 while its B shares advanced P1 or 1.4 percent to P72.50.
($1= P48.88)
http://services.inquirer.net/express/07/01/25/html_output/xmlhtml/20070125-45588-xml.html
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