Shares close 1.39 percent higher

 

 

MANILA (AFP) - Philippine share prices closed 1.39 percent higher as investors snapped up stocks after treasury bills fell to record lows, dealers said. Investors inevitably flocked to the higher-yielding equities market with Treasury bill rates declining to all-time lows at Monday's auction, thanks to the government's improving fiscal condition and a better economic outlook. The Philippine Stock Exchange composite index closed up 46.28 points at 3,375.31 after moving between 3,347.19 and 3,376.50. The broader all-share index jumped 32.38 points to 2,143.09. Gainers trounced losers 107 to 31, while 42 stocks ended unchanged. Volume amounted to 3.7 billion shares worth 4.1 billion pesos (85.3 million dollars). The Philippine peso traded at 48.059 to the dollar. "Investors are shifting to the equities market given the low interest rates," said Astro del Castillo of First Grade Holdings Inc. "If this goes on, this will further boost the equities market," he said. "Sentiment is being boosted with the prospects of interest rates remaining low for a longer period, especially since the government has also gone into bond swaps that would stretch maturities of its loans, this means greater flexibility in managing its debt," said Chelsea Dipasupil of RCBC Securities Inc. Philippine Long Distance Telephone Co led winners among blue chips, gaining 10 pesos to 2,595. Ayala Corp rose 10 to 635 while its unit, property developer Ayala Land Inc was up 25 centavos at 17 pesos. Megaworld Corp gained 15 centavos to 3.35 pesos. Metropolitan Bank and Trust Co finished one peso higher to 67.50 while Banco de Oro Universal Bank added one to 64. San Miguel Corp's A-shares advanced one to 66 while its B-shares edged up 50 centavos to 78.50 pesos.

 

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