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Wednesday, April 26, 2006
Shares rise 0.7% as oil, fiscal woes ease (2:20 p.m.)
MANILA -- Shares advanced Wednesday after two sessions of losses on relief over softening world oil prices and government assurances that its fiscal reforms remain on track.
The benchmark 30-company Philippine Stock Exchange Index rose 14.59 points, or 0.7 percent, to end at 2,247.14, after shedding 1.3 percent in the two previous sessions, including Tuesday's 0.8 percent loss.
"Oil prices weakened slightly, so that kind of relieved pressure on markets worldwide," said Citiseconline investment analyst Mark Alan Canizares.
On the New York Mercantile Exchange Tuesday, the crude oil settlement price for June delivery fell 0.6 percent to US$72.88 a barrel.
Jitters over rising oil prices in the domestic front recently prompted senior government officials to consider such options as suspending the 12 percent value-added tax (VAT) on oil products, or cutting the 3 percent oil import tariff.
But Finance Secretary Margarito Teves assured Tuesday that the government would stay on track with its fiscal consolidation efforts.
The VAT measure is central to the government's plan to balance the budget by as early as 2008.
"If the VAT suspension takes place, it would seriously impair the earlier goal set by the government when it implemented its revenue enhancing measures in November," said Canizares.
Blue chip Philippine Long Distance Telephone Co. was the most actively traded stock, closing up 0.5 percent at P1,995, in step with the 0.5 percent rise in the company's American depositary receipts in New York Tuesday.
Recovering from recent losses were Philex Mining A and B, both up 1.3 percent at P4.05 on bargain hunting.
SM Prime climbed 3.9 percent to P8 on expectations the Philippines' largest mall operator may disclose positive early indicators on its first-quarter financial performance during a briefing later Wednesday after its annual stockholders meeting. (AP) |
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