Monday, January 09, 2006
Stocks rise .8% on steady interest rate outlook (2:50 p.m.)
MANILA -- Philippine stocks rose Monday on expectations that interest rates will remain steady this year.
The benchmark 30-company Philippine Stock Exchange Index rose 17.36 points, or 0.8 percent, to 2,151.15, after Friday's 0.8 percent loss.
Blue chip Ayala Corp. was the most actively traded stock, rising 3.8 percent to P342.50, followed by Ayala Land, up 2.4 percent at P10.50, and Philippine Long Distance Telephone Co., higher by 0.6 percent to P1,830.
All sectoral indicators advanced. Gainers led decliners 46 to 27, while 48 stocks were unchanged.
AB Capital Securities Research Director Jose Vistan said the latest US economic data released Friday suggest the cycle of rising U.S. interest rates may finally be winding down, and that could influence monetary policy in other countries, including the Philippines.
In an effort to combat inflation largely on high oil prices, the Philippine central bank last year raised overnight rates three times.
The positive fiscal outlook also aided market sentiment, said Vistan, ahead of the scheduled implementation of increases in the value added tax rate and the corporate income tax rate hike.
Efforts to improve the government's tax collection are expected to eventually lead to a possible improvement in the country's credit rating outlook.(AP) |
