Market climbs on budget figures, Dow rally

The main Philippine stock index closed higher yesterday, boosted by the government’s budget surplus posted in April, Wall Street’s overnight rally and falling oil prices, traders said.

The benchmark 30-company Philippine Stock Exchange Index closed up 13.70 points, or 0.7 percent, at 1,893.09, after rising 0.9 percent in the past two sessions, including Wednesday’s 0.2 percent uptick.

Blue-chip Philippine Long Distance Telephone Co. (PLDT) was the most actively traded stock, up 1.8 percent at P1,450, on bargain hunting.

Other index movers were San Miguel B, up 0.6 percent at P86.50, Ayala Corp., higher by 1.5 percent at P6.90, and SM Prime, higher by 2.7 percent at P7.60.

During trading, the government announced it managed to post a P3.3-billion surplus in April, a huge turnaround from the P7.8- billion deficit a year ago. The government credited higher revenue collection and lower expenditure for the April surplus.

The market also moved in step with Wednesday’s 1.3-percent rise in both the Dow Jones Industrial Average and Nasdaq Composite Index, brought about by a tame US April inflation report.

On the New York Mercantile Exchange Wednesday, US light crude for June delivery fell 3.5 percent to $47.25 (euro37.26) a barrel.

The downward trend in world oil prices is already reflected in local oil prices.

Thursday’s rally, however, wasn’t broad-based, as decliners led gainers 34 to 23, while 57 stocks were unchanged.

Among the losing stocks were Filinvest Land, down four percent at P1.44, International Container Terminal, off 1.3 percent at P7.60, and Metro Pacific, lower by 2.8 percent at P0.35.

"There has been a spate of good news recently although investors are still testing the waters and are unsure whether to position aggressively," said Gomer Tan of Regina Capital Development Corp.

He said the market may test the 1,950 resistance level in the next few days.

It has also boosted confidence that the deficit at the end of the year will be well under the official ceilings. President Gloria Arroyo had previously warned that the country faced a fiscal crisis unless it reined in a chronic budget deficit and debt.

Manila Water Co. gained 20 centavos to P5.90 while Bank of the Philippine Islands added 50 centavos to P49.

First Philippine Holdings rose P1 to P44. SM Prime added 20 centavos to P7.60.

Ayala Corp. gained 10 centavos to P6.90 while Ayala Land was unchanged at P7.60.

San Miguel Corp. B shares, available to foreign investors, were up 50 centavos at P85.50 while San Miguel A shares, exclusive to locals, were steady at P58.50. – AP, AFP