Stocks continue bullish trend

By Ian C. Sayson

Bloomberg

Philippine stocks advanced for a sixth day to the highest in almost a decade after imports rose at the fastest pace in three months and Congress moved closer to approving the government’s budget proposal.

Philippine Long Distance Telephone Co. (PLDT), Megaworld Corp. and Manila Electric Co. gained on speculations that higher import growth and the approval of the budget will boost the economy.

Ayala Corp. advanced to its highest ever, joining 20 other stocks that climbed Thursday to their highest in at least 52 weeks.

“The growth in imports goes hand in hand with the approval of the proposed budget,” said Aldrin Navarro, who helps manage about $4.7 billion at BPI Asset Management Inc. “They point to an expanding economy.”

The Philippine Stock Exchange Index added 30.44, or 0.9 percent, to 3275.19 at the close in Manila, after climbing 6.7 percent in the previous five days. The measure, which hasn’t closed higher since March 11, 1997, gained as much as 1.5 percent earlier Thursday.

Philippine import growth quickened in November to 13.4 percent, a three-month high, as manufacturers purchased more raw materials for exports, supporting the government’s forecast that overseas sales may rise at a faster pace in 2007.

Separately, a congressional panel approved the P1.13-trillion budget the government submitted for this year. The spending proposal is 18-percent bigger than the P955 billion authorized in 2006. The government forecasts economic growth will range from 6.1 percent to 6.7 percent this year.

PLDT, the nation’s most profitable publicly listed company, added P55, or 2 percent, to P795, extending a five-day, 14 percent climb that lifted it to a record Wednesday.

Spending on infrastructure

MEGAWORLD, the nation’s largest builder of office and residential towers, rose 2 centavos, or 0.8 percent, to P2.48, its highest close since April 8, 1997. Ayala, owner of the nation’s most profitable lender, gained P5, or 0.8 percent, to P625, its highest close ever.

Manila Electric’s Class A shares, equity reserved for Filipinos in the nation’s largest power retailer, added P2, or 2.9 percent, to P71.50, bringing this week’s gain to 13 percent. Its Class B shares, which have no ownership restrictions, gained P1, or 1.4 percent, to P72.50.

“Investors are looking forward to government starting to spend on infrastructure,” Navarro said. “This will benefit construction and cement companies. It will also trickle down to the other parts of the economy.”

The government plans to spend at least P800 billion for infrastructure projects, including roads and bridges, through 2010, Finance Undersecretary Robert Tan said last week.

EEI jumps

HOLCIM Philippines Inc., the nation’s largest cement-maker, added 10 centavos, or 1.2 percent, to P8.50, its highest close since April 7, 1997. Southeast Asia Cement Holdings Inc. climbed 4 centavos, or 3.2 percent, to P1.30, bringing this year’s gain to 31 percent.

First Philippine Holdings Corp., which is expanding a toll-road project, advanced P1, or 1.4 percent, to P72.50. Benpres Holdings Corp., owner of First Holdings, gained 10 centavos, or 3.9 percent, to P2.70

EEI Corp., the second-largest Philippine construction company by value, jumped 15 centavos, or 3.6 percent, to P4.35, its highest since August 28, 1996. The stock has advanced 38 percent this year.

Shares worth P4.85 billion were traded, 79-percent more than the six-month daily average. Gainers beat losers 76 to 34, with 65 stocks unchanged in the broader market.

Separately, Robinsons Land Corp., the nation’s second-largest shopping mall operator, rose P1, or 6.6 percent, to P16.25, its highest in almost four weeks. The builder said Wednesday after trading closed that profit in the year ended September 30 grew 40 percent to a record P1.72 billion on higher sales.

http://www.businessmirror.com.ph/0126&272007/companies02.html