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LOCAL share prices closed higher Wednesday on thin
volume as investors remained cautious, dealers said.
They said the market was
supported by strong buying among blue chips led by telecom giant
Philippine Long Distance Telephone Co.
The composite index gained 35.08
points to close at 3,475.75, off a high of 3,491.65 and a low of
3,449.64.
The broader all-share index added
9.10 points to 2,162.99.
Losers outnumbered gainers 65
to 44, while 59 stocks ended flat.
Volume totaled 2.6 billion shares
worth P2.8 billion.
The peso traded at 46.213 to the
dollar.
Investors largely ignored the
ongoing Senate hearing into a controversial telecom deal between the
government and China’s ZTE Corp, which the government has
suspended, said Astro del Castillo of First Grade Holdings.
“Investors are shrugging off
political noise, preferring to focus on fundamental
opportunities,” said del Castillo.
At a separate briefing the Ateneo
Center for Economic Research and Development (ACERD) raised its
economic growth forecast for the Philippines this year, on the back
of higher consumer spending and a more robust services sector.
Cielito Habito, ACERD director,
said the Philippines’ gross domestic product (GDP) is likely to
grow between 6.2 percent and 7.2 percent this year from the
institute’s previous projection of 6 percent to 6.5 percent.
The ACERD’s forecast exceeded
the government’s projection of between 6.1 percent and 6.7 percent
economic expansion this year.
Habito said GDP would likely grow
between 5.5 percent and 7.1 percent in the third quarter, and 5.7
percent and 7.3 percent for the fourth quarter.
ACERD also projected that
inflation would average between 3 percent and 4 percent this year
and unemployment between 7.5 percent and 8 percent.
Despite bright prospects, del
Castillo said the market, however, remained cautious on continued
worries about the health of the US economy.
“We can expect some volatility
as investors keep a close eye on these issues,” said Jose Vistan
of AB Capital Securities.
PLDT jumped to a record high of
P2,865 in early trading, tracking the rise of nearly two percent in
its New York-traded American depositary receipts overnight, before
settling at P2,845, upx
“It’s hard to dispute the
earnings potential of PLDT. And, given the aberration in major
equities markets, many fund managers may also be expected to shift
their focus to emerging markets like the Philippines, and index
favorite PLDT could benefit from that,” said del Castillo.
Conglomerate Ayala Corp. gained
P10 to P510.
The country’s largest bank,
Metropolitan Bank and Trust Co., added one peso to P53.50.
Mining stocks fell as prices of
metals such as gold and copper dropped. Philex Mining Corp. lost 10
centavos to P7.60, while Atlas Consolidated Mining and Development
Corp. was flat at P15.25.
San Miguel Corp. saw its A and B
shares rise 50 centavos each to P60.50 and P61, respectively.
--AFP with Darwin G. Amojelar
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