Shares close up on bargain-hunting; San Miguel Brewery gains
Thomson Financial
First Posted 13:20:00 05/12/2008
MANILA, Philippines -- (UPDATE) Shares closed higher for the fourth straight session Monday as investors chased bargains, although near-record crude oil prices continued to fan inflation worries.
Stocks opened weaker following losses on Wall Street and oil futures hitting a new all-time high of $126.20 a barrel on the New York Mercantile Exchange Friday. But investors managed to overcome their fears about inflation and picked up battered stocks later in the session.
"The Philippine market is playing catch-up with its neighbors. It was behind last week because investors worried about runaway inflation," said Jose Vistan Jr., research director at AB Capital Securities.
The composite index rose 24.07 points or 0.9 percent to 2,803.49, rebounding from the day's low of 2,775.08.
The all-share index was up 11.64 points or 0.7 percent at 1,744.41.
There were 52 advancers and 38 decliners, while 62 were unchanged.
Turnover surged to P9.8 billion from Friday's P3.5 billion, partly boosted by trades in San Miguel Brewery Inc. (SMBI) which rose on its trading debut from its initial public offering price of P8.00.
SMBI rose 6.3 percent to P8.50.
San Miguel Corp.'s A-shares, limited to local investors, were flat at P46.50. Its B-shares, open to all, fell 1.0 percent to P48.50.
The food and drinks conglomerate will pursue a separate listing for its packaging operation, company president Ramon Ang told reporters Monday.
Ang said San Miguel will also consolidate all its food assets under listed unit San Miguel Purefoods, which may do a follow-on stock offering.
Philippine Long Distance Telephone Co., the country's biggest company by market value, was up 0.4 percent at P2,605.00.
($1 = P42.60)
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