050307: RP stocks rise on strong earnings

By Ian C. Sayson

Bloomberg

PHILIPPINE stocks rose for the first time in three days. Security Bank Corp. climbed after the lender said first quarter profit increased, boosting expectations of strong earnings this year. “The strong earnings that are coming out are driving up the market,” said Ron Rodrigo, head of research at Manila-based Unicapital Inc. “Strong earnings is a validation the economy is expanding.” Megaworld Corp., Filinvest Land Inc. and other builders rose on speculation a drop in oil prices will boost spending on homes. The Philippine Stock Exchange index added 1.26, or less than 0.1 percent, to 3271.99 at the close, after a two-day, 2.4-percent slump. Gainers outnumbered losers 12 to eight, with 13 stocks unchanged in the main stock measure. The measure pared a gain of as much as 1.2-percent earlier. Security Bank, whose shares rose more than five times in the past four years, jumped P1, or 1.3 percent, to P79, its highest close in six days. The nation’s seventh-largest lender by market capitalization said April 30 that first-quarter profit grew 40 percent to P758 million. The drop in global oil prices in the previous two days supports expectations that corporate earnings and consumer spending could grow further this year, according to Rodrigo. Oil prices fell 3.1 percent in the previous two days to $64.40 a barrel Tuesday, the lowest since April 24. It last traded at $64.50 a barrel earlier Wednesday.   Meralco gains “LOWER oil prices are good for the economy and corporate earnings,” Rodrigo said. Rodrigo expects net income of Philippine companies to grow at least 15 percent this year on a minimum 20 percent expansion in sales. Megaworld, one of the nation’s two biggest builders of residential and office towers, gained 10 centavos, or 3.1 percent, to P3.35, ending a two-day, 7.1 percent slump. Filinvest Land Inc., the nation’s largest builder of affordable homes, added 2 centavos, or 1.1 percent, to P1.80, its first gain in six sessions. DMCI Holdings Inc., a construction company that has expanded to residential developments, surged 30 centavos, or 4.2 percent, to P7.40, a two-month high. Manila Electric Co.’s Class A shares, equity reserved for Filipinos in the nation’s largest power retailer, added P2.50, or 3.5 percent, to P74.50, a two-month high. Its Class B shares, which have no ownership restrictions, gained P2.50, or 3.5 percent, to P75.   C&P Homes MERALCO shares have advanced at least 9 percent since May 24, when the utility said it had a P532 million profit in the first quarter, compared with a P657-million loss in the same period a year ago. Shares worth P3.99 billion were traded, 2.9-percent less than the six-month daily average. Gainers beat losers 52 to 43, with 63 stocks unchanged in the broader market. Separately, C&P Homes Inc., a Philippine homebuilder owned by the family of Senate president Manuel Villar, rose 6 centavos, or 2.6 percent, to P2.40. The company said April 30 that the shares of its majority owners will be swapped with shares of Vista Land and Lifescapes Inc. in a transaction valued at P7.43 billion or about P2.46 a share.

 

http://www.businessmirror.com.ph/05032007/companies02.html