Stocks rise on good Q1 profits

Local stocks rallied to another record finish Friday on the back of good first-quarter earnings and hopes for a favorable resolution of the tax issue on the gaming industry.

The main-share Philippine Stock Exchange index rallied by 0.94 percent or 67.95 points to close at 7,262.38. This marked the 29th record close for this year, the fifth year of upswing for the stock market.

Among the day’s biggest index gainers were three gaming stocks: Alliance Global Inc. (+5.59 percent), Belle Corp. (+3.33 percent) and Bloomberry (+1.5 percent) as investors were betting on the resolution of tax concerns arising from the loss of tax-exemption status by industry regulator Philippine Amusement and Gaming Corp. (Pagcor).

AGI, for its part, also disclosed that affiliate Travellers International had filed a registration statement for a prospective initial public offering (IPO).

Other big index gainers were ICTSI (+5.24 percent), Metrobank (+3.06 percent) and Ayala Land (+1.67 percent), which recently reported increases in first quarter earnings.

Meralco also rose by 1.59 percent. San Miguel Corp., a key stockholder in the electricity distribution firm, has indicated willingness to sell its 36-percent block at current market prices. Energy sales were likewise seen to improve from the modest growth seen in the first quarter due to the hot summer season this second quarter.

Value turnover amounted to P7.5 billion. There were 92 advancers that outnumbered 72 decliners while 48 stocks were unchanged.

The index was perked up by about P497 million in net foreign buying. Doris C. Dumlao