Friday, June 01, 2007
Shares climb to new record high on robust 1st quarter growth (4:10 p.m.)
MANILA -- Philippine shares rose to a record high Friday on heavy buying in blue chips after the government reported the country's highest first-quarter growth in 17 years.
The benchmark 30-company Philippine Stock Exchange Index rose 72.68 points, or 2.1 percent, to 3,547.35, breaking resistance at 3,500 and beating the previous record of 3,505.03 hit May 22.
China's move to increase its tax on stock purchases prompted some fund managers to increase their exposure in the Philippine market, where stocks are relatively cheaper, said DA Market Securities Inc. President Nestor Aguila.
"As far as the Philippines is concerned, they can see that the fiscal and economic platform looks good," Aguila said.
"The government has the money to fund infrastructure, which should further boost growth in the long run," he said.
The government reported Thursday the economy grew 6.9 percent in the first quarter from the same period a year ago, the fastest pace in 17 years. It credited brisk private and government spending, strong export receipts and across-the-board growth in key industries.
The market may take a breather next week following the recent strong gains, said Ricardo Puig, an analyst at Wealth Securities. Gainers outnumbered losers 90 to 25, and 50 stocks were unchanged.
Ayala Land Inc. led the market's rise, advancing 8.1 percent to P16.75.
Conglomerate SM Investments Corp. gained 5.5 percent to P430. Unit mall operator SM Prime Holdings Inc. rose 6.1 percent to P13.
Philippine Long Distance Telephone Co. advanced 0.8 percent to P2.575, and Globe Telecom Inc. gained 2.9 percent to P1,400, after Moody's Investors Service raised its local currency ratings on the telecom firms.
Manila Electric Co. shares also advanced to their highest levels in a year, lifted by the Energy Regulatory Commission's draft determination of a higher-than-expected rate increase for the power distributor.
Meralco A shares, limited to local investors, rose 5.8 percent to P99.50. Its B shares, available to both local and foreign investors, advanced 6.4 percent to P100. (AP)
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