Stock index at new 10-year high


By Rocel Felix
Xinhua Financial News Service
Last updated 02:37am (Mla time) 02/06/2007


MANILA, Philippines -- Share prices closed higher Monday, extending their rally for the sixth straight session to hit a new high in nearly 10 years, buoyed by expectations of strong corporate earnings, dealers said.

At the close, the 30-company composite index was up 12.72 points or 0.39 percent at 3,281.90, after moving between 3,266.45 and 3,282.34. It was the index's best finish since March 10, 1997, when it settled at 3,289.34.

The broader all-share index rose 13.78 points to 2,064.01.

Gainers led losers 69 to 35, while 56 stocks ended unchanged. Volume was 2.3 billion shares worth P3.7 billion.

"The market continues to be bullish about corporate results even though several large cap issues are already at overbought levels," said Ron Rodrigo, an analyst at Unicapital Securities Inc.

Jasper Jimenez, a broker at BDO Securities Corp., said the smaller trading volumes suggested the market was consolidating after recent gains.

"The market is consolidating within a narrow band with an upward bias," he said. "Basically, investors are waiting for more corporate results to come out, so many are just taking a wait-and-see stance for the moment."

Lawrence de Leon, an analyst with Accord Capital Equities, said the key index should test the 3,300-points resistance level within the week.

"The run-up will continue this week as sentiment is being boosted by positive developments such as the government halving its budget deficit last year and optimism over corporate earnings and individual corporate news are fuelling the rally," he said.

Among the day's major winners include conglomerate Ayala Corp., which rose P5 or 0.76 percent to close at P660. Its property arm Ayala Land Inc. was up P0.25 or 1.45 percent at P17.50.

Manila Water Co. Inc., another Ayala unit, added P0.60 to P9.90.

Power distributor Manila Electric Co.'s Class A shares edged up P2.50 or 3.55 percent to P73, while its Class B shares gained P2.00 or 2.84 percent to P72.50.

Philippine Long Distance Telephone Co. dropped P10 or 0.39 percent to P2,565.

Peso rallies to 6-year high on foreign currency inflows


By Rocel Felix
Xinhua Financial News Service
Last updated 11:34am (Mla time) 02/07/2007


MANILA, Philippines -- The peso rallied to its strongest level since March 2001, boosted by inflows of foreign currency as investor confidence improves, dealers said.

The peso strengthened to P48.370 to the US dollar after opening at 48.450 pesos, with volume having reached $191.5 million at 10:45 am here (0245 GMT). On Tuesday, it closed at P48.505.

Jonathan Ravelas, a market strategist for Banco de Oro Universal Bank, said: "The strong foreign currency inflows are what is beefing up the peso."

Investors are flocking into both the currency and equities markets, given the low yields on government securities, he said.

Ravelas said the peso may hit 47.50 to the dollar in the first quarter on the back of the country's improving economic fundamentals.

Dealers said the peso was also tracking the gains in other Asian currencies, which had been buoyed by expectations that this week's meeting of the G7 finance minsters and central bankers will press Japan to do something about the yen's weakness.

Good news, at least things are looking up