RP stocks rise on capex for 2007

By Ian C. Sayson

Bloomberg

PHILIPPINE stocks rose for a second day. Philippine Long Distance Telephone Co. (PLDT) gained after the company said it will spend more on expansion this year. Petron Corp. climbed after the company said it will spend $78 million to expand its petrochemical production capability. SM Prime Holdings Inc. advanced after a newspaper reported that parent SM Investments Corp. will build office space for call-centers adjacent to the unit’s shopping malls. “A lot of companies are expanding and that’s a validation of their optimism that economic growth will accelerate,” said Fitz Aclan, who helps manage the equivalent of $2 billion at Manila-based Banco de Oro. The Philippine Stock Exchange index added 3.61, or 0.1 percent, to 3378.92 at the noon close, after jumping 1.4 percent Tuesday. The index gained as much as 1.2 percent earlier Wednesday. Gainers beat losers 87 to 43, with 45 stocks unchanged in the broader market. The measure is less than 100 points away from its record 3447.60 set on February 3, 1997, after rising 13 percent this year. PLDT, the nation’s largest company by market value, added P10, or 0.4 percent, to P2,605. The company said Wednesday it will spend up to P22 billion to expand its network, up from P18 billion in 2006. Petron, the biggest oil company in the Philippines, gained 5 centavos, or 1 percent, to P4.85, its highest close since May 12. The company said Tuesday after trading closed it will also separately spend P52 million for its jet fuel facility. http://www.businessmirror.com.ph/02222007/companies01.html   Smelling growth? “COMPANIES wouldn’t be investing if they didn’t smell the economic opportunities,” Aclan said. “They are positioning to capture the gains of faster economic growth.” SM Prime, the nation’s largest shopping mall operator, gained 50 centavos, or 4 percent, to P12.75. One of the projects SM Investments will build is a four- or five-floor building near SM Prime’s mall in Baguio, a city north of Manila, this paper reported, citing SM Investment executive vice president Hans Sy. DMCI Holdings Inc., the nation’s largest construction company by market value, jumped 30 centavos, or 4.1 percent, to P7.60, its biggest gain in 15 days after the government said it will boost infrastructure spending and accelerate economic growth. President Gloria Arroyo said Tuesday after trading closed that the government will spend P1 trillion in the next three years to construct more roads, bridges, ports and schools. Arroyo is targeting economic growth of at least 6.1 percent this year, the fastest since 2004.   EEI Gains “HIGHER infrastructure spending could mean more business for construction companies and cement manufacturers,” Aclan said. Among shares that could get a boost from infrastructure spending, EEI Corp., a Philippine construction and engineering company, rose 35 centavos, or 7.5 percent, to P5. Holcim Philippines Inc., the nation’s largest cement manufacturer, added 10 centavos, or 1.2 percent, to P8.70, the highest since March 1997. Filinvest Land Inc., the nation’s largest builder of affordable homes, gained 2 centavos, or 1.1 percent, to P1.90, its highest since August 8, 1997. “Because of the recent decline in interest rates, there’s optimism improved borrowing will continue and increase take-up for property undertakings,” said Grace Cerdenia, an analyst at 2TradeAsia.com in Manila. The 91-day Treasury bill yield, which banks use to price loans and mortgages, fell to a record 2.885 percent at the government’s regular auction on February 19. Robinsons Land Corp., a builder of office and residential towers, rose P1, or 4.6 percent, to P22.75, a record. Belle Corp., which is building a residential resort south of Manila, added 2 centavos, or 1.3 percent, to P1.56. (With reporting by Luzi Ann Javier in Manila.)

 

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