Index ends in positive territory on selective buying

Stocks plunged deeper in early trading but sprang back into positive terrain by session’s end yesterday as investors picked up selected blue chips that have been on oversold levels.

The 30-company Phisix moved up 10.37 points, or 0.7 percent, to close at 1,488.79 while the broader All-Shares index added 6.8 points or 0.92 percent to 748.27.

Negative sentiment on the political front still prevailed during trading as pressure continue to mount for President Estrada’s resignation, but has lately been lacking steam, causing some to worry that his exit appears far-fetched.

As this developed, several business groups led by the Philippine Chamber of Commerce and Industry and the Association of Securities Analysts of the Philippines seemed to have wavered on their earlier stand for the President’s resignation and have instead called on a Constitutional process for a possible change in leadership.

There were more decliners than advancers but the pullback was largely on account of the gains in heavyweights PLDT, Meralco B, Ayala Corp. and Benpress Holdings which were the most active issues during the day.

Value turnover thinned down once more, falling below the P1 billion mark to P968.635 million, as end-price results were mixed – 28 gainers, 37 losers and 39 unchanged issues.

Even the sub-indices closed in different directions with the commercial-industrial and finance sectors moving north while the oil, mining and property counters went in the red.

Among the major gainers were San Miguel B and its liquor and juice subsidiary La Tondeña Distillers, on the back of expectations of sustained earnings growth in the third quarter, due for release today.

SMC B ended P2.50 higher to P52.50 while the A shares stood flat at P51.

Meanwhile, La Tondeña closed P2 higher to P32.50 as today is the ex-date for the grant of a cash dividend of P0.375 per share payable on Dec. 8.

Other index stocks closed higher, with Meralco B emerging as the heaviest traded issue to end 50 centavo more at P47. PLDT added P5 to P875; Ayala Corp. went up 20 centavos to P7.50; and Benpres Holdings gained 30 centavos to P3.40.

One of the top losers, on the other hand, was hotel and casino operator Waterfront Philippines Inc., retracting by three centavos to P0.33 after the William Gatchalian-controlled company confirmed the suspension of operations and temporary closure of the Davao Insular Hotel, a Southern Landmark bought from the Ayala group, which has been besieged by low occupancy and growing losses.