Market climbs as investors continue to chase blue chips

Share prices closed 1.81 percent higher yesterday as investors chased blue chips for a fourth consecutive session on the back of the country’s improving economic and fiscal outlook, dealers said.

Dealers said investors have been pushing share prices higher after Fitch Ratings last week upgraded its outlook on the country’s credit ratings and the government’s forecast the economy would grow strongly in the second half.

The Philippine Stock Exchange composite index added 34.93 points to 1,964.31. It traded between 1,929.38 and 1,966.21. Turnover reached 1.27 billion shares worth P1.37 billion.

The broader all-shares index gained 16.03 points to 1,190.57.

Gainers beat losers 67 to 17, while 52 stocks ended unchanged.

"The market’s rise was a continuation of gains we had in the previous days, primarily anchored on the recent Fitch upgrade," said Oliver Plana of Asiasec Equities.

Gross domestic product grew 4.6 percent in the three months to March, slower than the 5.4-percent expansion in the fourth quarter of 2004 as farm output fell.

"As far as the economy is concerned, people were expecting a much slower growth than what the government reported. They were not quite bullish on the Philippine economy and they were proven wrong," said Nina Tinio of Unicapital Securities.

The government, however, left its full-year growth target at 5.3-6.3 percent, hoping the agriculture sector which accounts for about a fifth of the domestic economy, will rebound during the next six months.

Philippine Long Distance Telephone rose P65 to P1,545.

Bank of the Philippine Islands gained 50 centavos to P49.

Ayala Corp. was up P2.50 to P377.50, while unit Ayala Land advanced 30 centavos to P8.

San Miguel B, available to foreign investors, retreated 50 centavos to P90, while San Miguel A, limited to local buyers, was unchanged at P59.

"Today’s rally was a confirmation of the market uptrend, which halted a downward momentum. Fitch’s decision was what triggered the reversal of the market sentiment," said Westlink Global Equities Chairman Rommel Macapagal.

Leading Wednesday’s rally was blue chip Philippine Long Distance Telephone Co., which rose 4.4 percent to P1,545, boosted by the 2.3 percent gain made by its American Depositary Receipts in New York Tuesday.

Other gainers were Bank of the Philippine Islands, up one percent at 49 percent, its parent Ayala Corp., which gained 0.7 percent to P377.50 and First Holdings, up 6.5 percent at P49. – AFP, AP