(UPDATE) Shares close higher on window-dressing
Longest rally since December
By Enrico dela Cruz
Thomson Financial
First Posted 12:57:00 03/28/2008
MANILA, Philippines -- Shares recovered from a weak start to close higher for the sixth straight session on Friday, marking the market's longest winning streak since December, as fund managers spruced up their portfolios for the end of the first quarter.
The market opened lower after Wall Street fell further overnight on worries about the outlook for banks and disappointing sales for business software maker Oracle Corp. But it rebounded mid-session as fund managers boosted their positions.
The Philippines' 30-company composite index rose 30.11 points or 1.0 percent to close at 2,956.02, capping the week with a gain of 4.9 percent. It was the first weekly gain for the main index in four weeks.
It was the index's longest winning stretch since early December when it rallied for seven consecutive days.
"End-of-quarter window-dressing helped extend the market's rally into the sixth straight session. Investors snapped up select blue chips, temporarily setting aside all the bad news," said Nestor Aguila, president of DA Market Securities.
The broader all-share index rose 14.77 points or 0.8 percent to 1,808.94.
There were 60 advancers and 30 decliners, while 57 were steady.
Turnover improved to P3.6 billion, with a total of 1.1 billion shares changing hands, from Thursday's P2.3 billion.
Philippine Long Distance Telephone Co. (PLDT), the country's biggest company by market value, rose P70.00 or 2.6 percent to P2,800.00, its best level in two weeks.
Ayala Land Inc. led gainers in the battered property sector, rising 25 centavos or 2.3 percent to P11.00. Rival Megaworld Corp. was up six centavos or 2.5 percent at P2.50.
Fund managers also snapped up shares in Banco de Oro Unibank, the country's second-largest lender by assets, which rose P2.50 or 5.2 percent to P51.00.
Philex Mining Corp., the country's biggest gold and copper producer, advanced for the third straight day, adding 20 centavos or 3.1 percent to P6.60.
Food and drinks conglomerate San Miguel Corp. was steady at P44.00 for A shares, reserved for Filipinos, and P45.00 for B shares, which have no ownership restriction.
"The market is due for a correction so we may see a pullback next week. After the end-of-quarter buying, it will be a different ballgame," said DA Market's Aguila.
But there could still be some last-minute window-dressing on Monday, the last trading day of the current quarter, analysts said.
"The positive sentiment we've seen today could extend till next week. Investors are concentrating on window-dressing activities," said Lawrence de Leon, analyst at Accord Capital Equities.
"While many are expecting the US economy to slide into a recession if it hasn't yet, most Asian economies believe its impact won't be as severe as earlier perceived."
The Philippine government is planning to increase spending on infrastructure projects this year to shield the domestic economy from external shocks.
On Wednesday, President Gloria Arroyo said government efforts to build roads, bridges, ports and educational facilities should serve as a "buffer to mitigate the pain of a deteriorating global economy and the accompanying rise in prices (of commodities)."
($1 = P41.90)
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