Market edges up on technical buying of PLDT

Share prices rose 0.4 percent yesterday on technical buying of Philippine Long Distance Telephone Co. (PLDT) after it fell to an eight-year low, brokers said.

The dominant carrier "went down to an eight-year low of P550 last week. Now it’s gone up to P565," said Mike Ordinanza of PCI Capital Corp.

The Philippine Stock Exchange composite index added 4.96 points to close at 1,311.13.

The presence of some institutional buyers indicate some fundamental positioning in PLDT, said Martin Enrile, an analyst for ATR Kim Eng Securities Inc.

"I think the market is beginning to realize that the debt fears of PLDT are not nearly as critical as earlier presumed," he said, amid reports it may fail to meet terms with creditors for a $200-million loan.

Turnover fell to 256 million shares worth P377 million ($7.3 million), compared to 501 million shares worth P487.9 million traded on Friday.

PLDT gained 15 centavos to P565, while Ayala Land Inc. fell five centavos to P4.80.

Manila Electric Co. A and B shares closed unchanged at P32.50 and P43.50 respectively, while Philippine National Bank also settled at its previous close of P52.

Traders said the US Federal Reserve meeting on interest rate policy on Tuesday contributed to the general cautiousness in the market although the impact of a rate cut was likely to be muted as the Bangko Sentral ng Pilipinas was not expected to match it. "It’s a contributory factor," Oliver Plana, an analyst at Asiasec Equities Inc. said of the Fed meeting which analysts expect to result in a 25 basis point cut in key US interest rates.

"There have been no major catalysts to drive the market in either direction . . . Investors are playing safe, for the mean time, they want to stay liquid," he added.

Although the index ended up, losers were in a two-to-one majority, proof that the market was largely mixed.