Market gains 21 pts on bargain hunting in select issues

Share prices closed 0.88 percent higher yesterday after investors picked up bargains following two consecutive sessions of heavy losses, dealers said.

They also said investors in general appear to be satisfied with the strong profit results of most blue chips for the three months to March, and are optimistic that the trend will continue for the rest of the year.

The composite index added 21.46 points to 2,460.19 after trading between 2,415.73 and 2,466.24. The broader all-shares index gained 7.52 points to 1,527.46.

Losers outnumbered gainers 60 to 46, while 47 stocks were unchanged. Volume reached 2.68 billion shares worth P2.07 billion.

"Bargain-hunting has emerged after the steep correction," said Astro del Castillo of First Grade Holdings.

The main index had shed 4.4 percent over its two-day decline.

"After recent sharp swings, the market may go into consolidation and let the bulls rest," del Castillo added.

"The news and earnings flows show a very resilient property sector and support good real estate prospects," said Leo Venezuela, analyst at ATR-Kim Eng Securities in Manila. "That’s encouraging investors to accumulate property stocks."

The Property Index, made up of the nation’s 12 biggest builders, jumped 2.7 percent to 1080.29, following a three-day, 6.5 percent plunge. Half of its members rose, four fell and two were unchanged.

Ayala Land, the nation’s largest builder by market value, rose 50 centavos, or 3.6 percent, to P14.25, ending a three-day, 6.8 percent loss.

Company vice president Vince Tan said after the market closed that the builder will spend P8 billion to revise the 36-hectare (89 acres) center of its Fort Bonifacio project by building more roads and parks and cutting the size of land parcels it will sell in the area. The plan will almost double the area’s number of land parcels for sale to 98, compared with 50 previously.

Megaworld, the nation’s third-largest builder by market value, rose 6 centavos, or 3.5 percent, to P1.76, ending a three-day, 8.6 percent slide. The company said first-quarter profit rose to P605 million as sales grew almost a third on higher demand for homes and office space. Megaworld chairman Andrew Tan said in March this year’s profit will rise 30 percent from P1.15 billion in 2005.

"The results are a surprise," said Venezuela, who forecasts a P1.5 billion profit for Megaworld this year. "I may have to upgrade my earnings estimates owing to the better-than-expected sales in residential units and take-up in office space."

Separately, Philex Mining Corp., the nation’s largest metal producer, and some of its smaller rivals, including Atlas Mining Consolidated Mining & Development Corp., fell after prices of gold and copper declined. – AFP