Philippine stocks rise to 31-month high on U.S. market rally

16:56, August 03, 2010      

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The Philippine stock market climbed to its 31-month high on Tuesday tracking sharp gains in the U.S. equities.

The benchmark Philippine Stock Exchange index rose by 0.83 percent or 28.68 points to 3,484.08.

The last time the bellwether touched the said level was on January 14, 2008 when it closed at 3,482.28.

The broader all-share index added 0.59 percent or 12.97 points to 2,210.93.

But trading volume on Monday reached only 825 million worth 3. 06 billion pesos (67.54 million U.S. dollars). One analyst said the new trading system "tempered the fluctuations of the market" discouraging retail investors and the day traders.

Advancers led decliners 78 to 51 while 48 stocks did not move. Of the six counters, only the mining and oil sector was sold down. The financial sector jumped by 2.03 percent or 15.65 points to 786. 47.

Positive manufacturing activity in July and the strong earnings from European banks pushed up the Dow Jones industrial average index by 1.99 percent or 208.44 points to 10,674.38. The 200-point rally in the U.S. market trickled down to most Asian equities on Tuesday, including the Philippines.

But what made the Philippines special is that it has a good " storyline" brought about by administration of President Benigno Aquino III, according to Erwin Balita, analyst at SB Equities, Inc

"The past rallies of the market show that investors are putting some premium on the Philippines because of the hope brought about by the new administration. The Philippines is among those that has been outperforming (major) equities in terms of equity return globally," Balita said.

Most stocks in the 30-company index closed higher. These include heavyweight Philippine Long Distance Telephone Co., Ayala Land, Inc. and Metropolitan Bank and Trust Co.

PLDT announced Tuesday morning that it posted a consolidated net income of 21.7 billion pesos (478.5 million U.S. dollars), up 10 percent on year, in the first half of 2010. Company officials attributed the increased earnings to higher recurring net income and a net gain from foreign exchange revaluation of the company's financial assets and liabilities and derivatives.

Source: Xinhua


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