(UPDATE) Shares close 1.7% higher
Agence France-Presse
First Posted 12:30:00 01/07/2009
Filed Under: Stock Activity, Economy and Business and Finance, Central Banks, Interest Rates, Markets & Exchanges
MANILA, Philippines -- Share prices closed 1.7 percent higher Wednesday on expectations that the central bank may cut interest rates as inflation continues to fall, dealers said.
The composite index rose 34.31 points to close at 2,003.89.
The all-shares index rose 2.08 percent, or 25.93 points, to 1,268.09.
A total of 1.66 billion shares worth P2.2 billion ($47.3 million) changed hands.
Advancers swamped decliners 93 to 13 with 21 unchanged.
The peso traded at P46.51 to the dollar.
"Foreign investors are returning to the market, inspired by the perception the Philippine economy may be partially insulated from the global crisis," Ron Rodrigo of DBP Daiwa Securities told Dow Jones Newswires, citing the government's planned increase in spending and recent economic data.
The government Tuesday reported that December inflation fell to 8.0 percent, easing from 9.9 percent in November. The lower inflation rate bolstered expectations that the central bank may cut key rates in its next policy meeting later this month.
Philippine Long Distance Telephone Co. rose 1.4 percent to P2,160 while Ayala Land Inc. added 2.9 percent to P7.20. Metropolitan Bank and Trust Co. rose 7.1 percent to P26.50.
San Miguel Corp. A-shares were steady at P41.50 while its B-shares rose 3.5 percent to P44.
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