Wednesday, September 19, 2007
Shares surge 2.2% after U.S. Fed rate cut (4:50 p.m.)
MANILA-- Philippine shares surged Wednesday, boosted by the U.S. Federal Reserve's decision to aggressively cut interest rates and the government's August budget surplus.
The 30-company Philippine Stock Exchange Index rose 73.23 points, or 2.2 percent, to 3,362.98. Gainers outnumbered losers 96 to 23, with 40 stocks ending unchanged.
Dealers said a Senate hearing Tuesday implicating President Gloria Macapagal Arroyo's husband in a government broadband contract marred with bribery allegations was turning out to be a concern for investors.
"It's a new distraction for the market," Accord Capital Equities analyst Lawrence de Leon said.
Property and bank stocks led gainers on the likelihood that the Philippine central bank may soon follow the U.S. Fed's rate cut. A reduction in interest rates would encourage people to take out more loans and hike their purchases.
Top traded Metropolitan Bank & Trust Company jumped 2 percent at P51.50, while rival Bank of the Philippine Islands gained 2.3 percent to P65.50.
Ayala Land Incorporated, the Philippines' largest property company, climbed 3.5 percent to P14.75. Mall developer SM Prime Holdings Incorporated gained 4.8 percent to P11.
Philippine Long Distance Telephone Company advanced 1.9 percent to P2,760, in step with the 2.1 percent rise of its American depositary receipts.(AP)
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