Index hits new two-month peak on strong blue chips

Share prices closed 0.59 percent higher yesterday to a new two-month peak as investors chased select blue chips for the sixth straight session, dealers said.

They said investor sentiment remains upbeat, supported by the brighter fiscal and economic outlook for the country, although profit-taking may surface next week as share prices have risen steeply.

The Philippine Stock Exchange composite index added 11.93 points to 2,022.49. It traded between 2,007.10 and 2,028.14.

This was its best finish since March 21, when it ended at 2,033.78.

Turnover reached 480.18 million shares worth P1.66 billion.

The broader all-shares index rose 6.91 points to 1,218.53.

Gainers outnumbered losers 44 to 27, with 45 stocks unchanged.

"The buying momentum has slightly slowed down, but sentiment has turned positive," said Mark Alan Canizares of Citiseconline.com.

He said a "healthy" technical correction is expected in the coming sessions.

But Jonathan Ravelas of Banco De Oro Universal Bank believes the market can rise further and test the 2,100 level next week.

Philippine Long Distance Telephone Co. closed down P10 to 1,585, while Globe Telecom added P25 to 900.

SM Investments rose P2.50 to 255.

Ayala Land advanced 40 centavos to P8.50, while parent Ayala Corp rose P7.50 to 377.50.

Manila Electric (Meralco) B, available to foreign investors, advanced 75 centavos to P24.75.

Meralco A, limited to local investors, gained 25 centavos to P16.25.

San Miguel A was steady at P59.50, while San Miguel B fell 50 centavos to P91.

"There’s still buying momentum spurred by strong foreign demand," said AB Capital Securities Research Director Jose Vistan.

Vistan said the change in the par value of Ayala Corp., which took effect Monday, may have helped spur the rally.

"Ayala was transformed from a penny stock into a $7 stock," Vistan said. "That helped open the floodgates of foreign funds rushing into the market."

On Monday, Ayala implemented the reduction in its outstanding shares by swapping one share for every 50 shares held by stockholders. The reverse stock split, which involved adjusting the par value of Ayala shares to P50 a share from P1, reduced the total number of the company’s shares to 343 million from 17.1 billion.

On Friday, Ayala ranked among the most active, up two percent at P377.50, along with its unit Ayala Land, which rose 4.9 percent to P8.50, and affiliate Globe Telecom, up 2.9 percent to P900. – AFP, AP