Wednesday, September 06, 2006
Shares rise for 5th straight day on positive economic outlook (3:49 p.m.)
MANILA -- Philippine shares advanced for the fifth consecutive session Wednesday, climbing to its highest in nearly four months, on sustained buying momentum fueled by a slew of positive developments.
The benchmark 30-company Philippine Stock Exchange Index rose 3.64 points, or 0.2 percent, to 2,396.20, its best finish since May 17.
Over the last five trading days, the index has gained 4.3 percent.
"Foreign funds are positioning already for next year, which is why the market is strong," said Banco de Oro assistant vice president Fitzgerald Aclan. "The lower oil prices, the recent gains of the peso against the dollar, and the strong regional markets as well are all contributing to the market's bullishness."
An upbeat economic outlook following last week's release of favorable second-quarter economic data, as well as the benign inflation situation also provided support to the market, traders said.
Blue chip Ayala Corp. rose 1.6 percent to P70 on foreign buying. The conglomerate has been enjoying a healthy financial performance on gains across its various businesses.
SM Investments was the most actively traded stock, rising 1.3 percent to P230. The holding company recently made an offer to buy out other shareholders of Equitable PCI Bank, the country's third-largest lender by assets, to consolidate its control of the bank with an end view of merging it with Banco de Oro, also controlled by SM Investments.
Banco de Oro rose 1.4 percent to P37, while Equitable PCI was down 1.3 percent at P78. A merger of the two banks is expected to create the country's largest commercial bank by assets.
Philippine Long Distance Telephone Co. fell 0.3 percent to P1,995 on profit-taking, after rising 5 percent during the past three sessions.(AP) |
