Market strengthens on Wall Street’s sharp rally

Share prices closed 0.52 percent higher yesterday supported by Wall Street’s sharp rally overnight yesterday, dealers said.

They said most stocks have falled to attractively cheap levels and are now ripe for bargain-hunting.

The composite index rose 10.02 points to 1,927.49 after trading between 1,917.47 and 1,933.36. Turnover was 409.76 million shares worth P657.09 million.

The broader all-shares index advanced 6.05 points to 1,174.39.

Gainers beat losers 44 to 14, with 40 stocks unchanged.

"Most counters have already reached oversold positions," said Nestor Aguila of DA Market Securities.

"The bounce in Wall Street and the rise in Philippine Long Distance Telephone Co. (PLDT) provided a good kick-off for investors to hunt for bargains."

However, dealers were split over whether yesterday’s rise can be sustained.

"The 1,900 level is being built as a strong support base. We have the entire fourth quarter to see if that level could be broken," Aguila said.

Jonathan Ravelas of Banco de Oro said the market had staged a technical rebound, which may continue as investors take positions in stocks of companies with strong profit prospects.

Monday’s marginal rise in Treasury bill rates, following an increase of a quarter of a percentage point in the central bank’s overnight interest rates, also gave the equities market some space to rally, Ravelas added.

PLDT led the way, ending P10 higher at 1,655 after gains in its New York-traded shares.

Ayala Land advanced 20 centavos to P8.60, while parent Ayala Corp. ended unchanged at P285. Bank of the Philippine Islands was up 50 centavos to P50.50 and Manila Water Services ended flat at P6.30.

SM Prime Holdings retreated 10 centavos to P7.30 while parent SM Investments was unchanged at P220.

San Miguel B, open to all investors, fell P2 to P90. San Miguel A, limited to locals, was unchanged at P65.

Other active stocks included Ayala Land, which rose 2.4 percent to P8.60, on expectations the Philippines’ largest property group in asset terms will post favorable third-quarter corporate results due on or before Nov. 11.

Bank of the Philippine Islands rose one percent to P50.50 on bargain hunting after shedding six percent since Oct. 12 on concern over its asset quality. The country’s second largest bank in assets earlier reported that its nonperforming loan ratio as of the end of September rose to 7.85 percent from 4.72 percent as of the end of June. – AFP, AP