Index climbs on continued gains by heavyweight PLDT

Share prices closed 0.19 percent higher yesterday as continued gains in index heavyweight Philippine Long Distance Telephone Co. (PLDT) allowed the market to push its recent modest advance, dealers said.

They said the gains, however, were capped by profit-taking before the Lunar New Year holiday, when many fund managers are expected to be on vacation.

The composite index rose 4.08 points to 2,121.89 after trading between 2,117.81 and 2,126.16. Volume was 2.59 billion shares worth P1.32 billion.

The all-shares index rose 4.22 points to 1,024.46.

Gainers led losers 44 to 25, with 56 stocks unchanged.

"Investors are positioning ahead of the 2005 earnings reports, with PLDT widely expected to report another good set of results," said Nestor Aguila of DA Market Securities.

PLDT, the most actively traded stock, closed P1 higher at P1,850. Rival Globe Telecom was up P5 at P755.

San Miguel A-shares were steady at P63.50 while its B-shares fell P1 to P86.

As it had been the previous day, PLDT was the most actively traded stock, rising 0.5 percent to P1,850, following the 2.8-percent advance in the company’s American Depositary Receipts in New York Thursday.

"The market is still seeking its natural level," said DA Market Securities President Nestor Aguila.

Analysts are looking forward to some good news such as a credit rating upgrade within the first quarter, he said.

The possible upgrade hinges on the improving fiscal outlook with the scheduled implementation next month of the increase in the value added tax rate to 12 percent from 10 percent, following the VAT law passed in November.

In the next session, the market is expected to take its cue from the 2005 economic growth figures set to be released Monday.

Other active stocks included First Holdings, which is engaged in tollway operation and power generation, closing unchanged at P49. The stock hit an intraday low of P47.50 because of news its power generating unit First Gen settled for an initial public offer price of P47, well below the initial range, upon the request of investors.

PhilWeb rose 6.5 percent to 0.033 after it announced earlier this week that PLDT unit, ePLDT, has acquired a 20-percent stake in the information technology concern. – AFP, AP