Sustained interest in PLDT buoys share prices

Share prices closed 0.15 percent higher yesterday, driven mostly by sustained interest in Philippine Long Distance Telephone Co. (PLDT), dealers said.

But for the second straight session, investors stayed largely on the sidelines owing to renewed political concerns following the filing of an impeachment complaint against President Arroyo, and as the market consolidates after rising to a five-week high last week, they said.

The Philippine Stock Exchange (PSE) composite index added 3.05 points to the day’s high of 1,988.14. It traded at a low of 1,978.77.

Turnover was 546.76 million shares worth P1.01 billion. Gainers outnumbered losers 29 to 24, while 63 stocks ended unchanged.

The broader all-shares index gained 2.30 points to 1,195.42.

"Investors are gauging how the political situation would turn out. They want to hear more positive stories, but it seems we could get those only from the corporate sector, which has so far reported generally strong profits," said Jonathan Ravelas of Banco De Oro Universal Bank.

Political tensions rose again after a former employee of President Arroyo’s assistant for political affairs on Monday said he witnessed a meeting between Mrs. Arroyo and several election officials which, he alleged, ended with the officials receiving a payment to fix the outcome of last year’s presidential election.

Dealers said the recent development could reverse the recent improvement in the political environment.

They said the market has also been deemed overbought after rising sharply in the past week.

"Investors are now selling on news as most earnings reports are out," Ravelas added.

Gomer Tan of Regina Capital Development said the market is likely to trade sideways in the coming session and will try to build a base at the 2,000 level in preparation for another rally.

PLDT, the most active stock, gained P15 to P1,630 amid expectations of higher net profit for the three months to June.

Rival Globe Telecom fell P15 to P810 after reporting that its first-half net profit slid 38 percent to P4.2 billion because of increased income tax provisions and expenses.

Ayala Corp., fell P2.50 to P307.50, while unit Ayala Land was unchanged at P8.20.

"The market is still hungry for good results similar to what we saw last week, and is waiting for such numbers from PLDT, Ayala Corp., Ayala Land, SM Prime," said AB Capital Securities research director Jose Vistan.

Ayala Land rose 2.5 percent to P8.20, but parent Ayala Corp. fell 0.8 percent to P307.50, possibly due to its affiliate Globe’s performance. – AFP, AP