Philippine stocks rise for sixth day

By Ian C. Sayson

Bloomberg

PHILIPPINE stocks rose for a sixth day, driving the benchmark to a decade-high. DMCI Holdings Inc. and Holcim Philippines Inc. gained after lawmakers approved this year’s budget. “Infrastructure will be one of the main sectors that will benefit from this,” said Jonathan Ravelas, market strategist at Banco de Oro in Manila. Ayala Land Inc. rose on speculation the nation’s largest builder will report a record profit for 2006. Manila Water Co. jumped after the utility reported earnings that beat analyst estimates. SM Investments Corp. declined after the stock advanced to a record last week. The Philippine Stock Exchange Composite Index gained 12.72, or 0.4 percent, to 3,281.90 in Manila, its highest close since March 10, 1997. The measure has climbed 3.8 percent over the past six sessions, matching a similar winning streak last month, and is up 10 percent so far this year. Philippine lawmakers last week approved a P1.13-trillion budget for this year, compared with an authorized P955-billion disbursement in 2006. The higher amount will allow the government to build more infrastructure. “The government has signaled spending,” Ravelas said. “We need infrastructure to support growth of at least 6 percent.” DMCI, the nation’s largest construction company by market value, gained 10 centavos, or 1.3 percent, to P7.70, after gaining 10 percent last week. Holcim Philippines, the nation’s largest cement maker, added 10 centavos, or 1.3 percent, to P8.10, rebounding from 4.8-percent loss last week. First Philippine Holdings Corp., which may bid for the state’s tollroad projects and power plants, rose P1, or 1.3 percent, to P77. Benpres Holdings Corp., owner of First Holdings, gained 30 centavos, or 9.8 percent, to P3.35, its biggest gain since January 4. Ayala Land, the nation’s largest builder, rose 25 centavos, or 1.5 percent, to P17.50. Manila Water, which services the eastern half of the Philippine capital, jumped 60 centavos, or 6.5 percent, to P9.90, its biggest gain since November 30. The utility firm said after trading closed February 2 that its profit last year increased 19 percent to P2.39 billion from a year earlier as sales reached a record and leakages declined to the lowest ever. Manila Water’s net income exceeded the P2.3-billion average of six analysts’ forecasts compiled by Thomson Financial. “We think that there is room for accumulating Manila Water again,” said Joe-an Alitagtag, analyst at Philippine Equity Partners Inc. He upgraded the stock to ‘buy’ from ‘hold,’ forecasting the share price will rise to P11 in the next 12 months. Ayala Corp., which holds stakes in both Manila Water and Ayala Land, added P5, or 0.8 percent, to P660, its highest ever. The company is the nation’s third-largest by market value. SM Investments, owner of the nation’s largest shopping mall operator, declined P2.50, or 0.6 percent, to P390, after jumping to a record on February 2. SM’s 14-day relative strength index, a ratio of the changes in its share price in the previous two weeks, was more than 70, indicating to some analysts the stock is about to decline. Shares worth P3.74 billion were traded, 28 percent more than the six-month daily average. Gainers beat losers 69 to 35, with 56 stocks unchanged in the broader market.

 

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