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SHARE prices rallied for a third day on Wednesday as
foreign funds bought into the bullish outlook for the economy,
dealers said.
They said the main index touched
a new high in almost 10 years as easing domestic interest rates and
expectations that the peso, which traded at 48.86 to the dollar,
will strengthen further.
However, profit-taking in late
trade trimmed some of the gains.
The composite index added 45.41
points to 3,244.75, after moving between 3,190.21 and 3,259.88. It
was the index’s highest close since March 13, 1997 when it settled
at 3,261.24.
The broader all-share index rose
24.60 points to 1,998.25.
Gainers led losers 67 to 49,
while 49 stocks were unchanged. Turnover was P6.24 billion, with a
total of 3.68 billion shares traded.
“The market maintained its
impressive momentum given the bullish sentiment,” Rommel Macapagal
of Westlink Global Equities said.
“We cannot discount a
correction in the next session because the upsurge was too fast and
too soon. But a rally towards the main index’s all-time high of
3,447.60 is still possible,” he added.
The index’s highest close was
recorded on February 3, 1997.
The government announced during
trading hours that the domestic economy likely grew by 5.3 to 5.6
percent last year, driven by domestic consumption and exports.
The government was previously
expecting growth of 5.5 percent for 2006, the low end of its target
range. The official figures will be released on Wednesday next week.
“With lower interest rates and
a strong peso, equities are among the few options left for investors
looking for better yields,” Nestor Aguila of DA Market Securities
said.
Top-traded SM Investments rose
P20 to P370 while Ayala Corp. added P20 to P620.
Philippine Long Distance
Telephone advanced P20 to P2,740.
Baguio Gold Holdings surged 60
centavos to P3.80 on renewed investor interest amid expectations it
will be used as the backdoor listing vehicle for flag carrier
Philippine Airlines.
San Miguel A shares were
unchanged at P63.50, while its B shares rose P1 to P76.
--AFP
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