Philippine stock index climbs

By Ian C. Sayson

Bloomberg

THE Philippines stock index rose, extending this month’s gain on optimism exports will rise after imports growth accelerated. International Container Terminal Services Inc. gained. “A significant part of our imports are raw materials for the products we sell overseas,” said Ron Rodrigo, head of research at Manila-based Unicapital Inc. “We should see a pick up in manufacturing and exports activities.” Manila Electric Co. (Meralco) rose after reporting electricity volume grew in the first quarter. Ayala Land Inc. advanced to its highest in almost 11 years after an affiliate said it plans to spend P1 billion on developments in central Philippines. The Philippine Stock Exchange index rose 17.50, or 0.5 percent, to 3309.43 at the close of trading, trimming an earlier gain of as much as 0.7 percent. It’s up 3.3 percent this month. Manila Mining Corp. rose after the exchange said it will be one of three companies to join the benchmark stock index next month. Imports rose 9.9 percent in February after gaining 1.1 percent in the previous month as manufacturers bought more raw materials to make laptops and video players for exports, the government said earlier Wednesday. “The higher imports are a positive signal” because it “could lead to gains in exports,” said April Lee-Tan, head of research at Manila-based stock brokerage CitisecOnline. Exports, which grew at a slower pace in February partly because of the stronger peso, make up two-fifths of the economy. Meralco MERALCO’S Class A shares, which are reserved for Filipinos, gained 50 centavos, or 0.7 percent, to P68.50, extending a 2.3-percent climb in the previous three days. Its Class B shares, which have no ownership restrictions, added P1, or 1.5 percent, to P69, a nine-day high. The company said Wednesday that first-quarter electricity volume grew 3.7 percent from a year ago driven partly by stronger demand from commercial and industrial customer. The utility also said Wednesday after trading closed that it posted a P532 million first-quarter profit on P48.19 billion of sales. It had a P748 million loss a year ago on sales of 41.61 billion. International Container, which runs the nation’s largest international port, rose 50 centavos, or 1.8 percent, to P28. Ayala Land AYALA Land, the nation’s largest builder, jumped 50 centavos, or 2.8 percent, to P18.25, its highest since September 18, 1996. Cebu Holdings Inc., 47 percent owned by Ayala Land, said this year’s investments will cover the expansion of its mall and residential projects, and the redevelopment of its business park in Cebu, a city in central Philippines. “Ayala Land is all over the country,” said CitisecOnline’s Tan. “This expansion is a positive signal. It is a sign of the group’s bullishness.” Cebu Holdings was unchanged at P4.40 after sliding as much as 2.3 percent earlier Tuesday. The stock advanced to a record P4.40 on April 23. Manila Water Co., which services the eastern half of the Philippine capital, gained 50 centavos, or 4.6 percent, to P11.50, after rising 4.8 percent in the previous two days. The stock may climb to P13.50 in the next 12, said Deutsche Bank AG, which raised its share price target by 23 percent from P11. Index changes CLASS B shares of Manila Mining, which have no ownership restrictions, gained 0.1 centavo, or 3 percent, to 3.4 centavos, its biggest gain since April 16. Its Class A shares, which are reserved for Filipinos, were unchanged at 3.1 centavos. Benpres Holdings Corp., one of the three companies that will be replaced in the index, fell 5 centavos, or 1.4 percent, to P3.60. Filinvest Land Inc., which will also be displaced, declined 2 centavos, or 1.1 percent, to P1.86. “Investors tracking the index will shift part of their allocations to stocks that will be included in the benchmark,” Tan said. “These changes will be felt by the stocks affected by the revision.” Along with Benpres and Filinvest, Semirara Mining Corp. will also be taken out of the index and replaced by Manila Mining, Universal Robina Corp. and First Gen Corp. on May 16, according to Philippine Stock Exchange president Francis Lim. Lim said the swap is part of the regular review of the index to make sure that the benchmark reflects the stock market. First Gen, the nation’s third-largest power producer, gained as much as 50 centavos, or 0.9 percent, to P59 before closing unchanged at P58.50. Semirara Mining, the largest Philippine coal producer, lost 50 centavos, or 1.9 percent, to P26.50, its first decline in four days. Universal Robina fell 50 centavos, or 2.9 percent, to P16.50, after falling as much as 4.4 percent earlier Wednesday. Shares worth P3.27 billion were traded, 20 percent less than the six-month daily average. Losers beat gainers 66 to 45, with 52 stocks unchanged in the broader market.

 

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