Stocks rise as Dow gains spark bargain-hunting

Stocks rose slightly yesterday as Wall Street’s overnight gains inspired investors to hunt for bargains.

The 30-company Philippine Stock Exchange Index gained 4.11 points, or 0.1788 percent, to close at 2,302.69 after rising 1.1 percent Monday. The broader All Shares Index gained 3.99 points, or 0.28 percent, to 1,430.75.

"The market appears tentative although overnight gains on Wall Street seem to have provided it support," AB Capital Securities research head Jose Vistan said.

However, losses in heavyweight Philippine Long Distance Telephone Co. (PLDT) capped the rise, traders added. PLDT retreated 0.26 percent to P1,925 after Monday’s rise of 2.12 percent.

Conglomerate Ayala Corp. gained 1.16 percent to P437.50, while subsidiary Ayala Land Inc. was up 1.89 percent at P13.50. Mall operator SM Prime Holdings Inc. advanced 2.60 percent to P7.90.

Nestor Aguila, president of local brokerage firm DA Market Securities Inc., said yesterday’s tight trading range is an indication that the market remains in consolidation mode.

"Bargain hunters are there, although they are still waiting for further discounts before accumulating aggressively," Aguila said.

Gainers outnumbered losers 57 to 30, while 60 stocks were unchanged. Sectorial indicators were mixed, with industrial, holding firms and the property subindices ending higher, but the financial, mining and oil subindices falling.

Investors shied away from most blue chips and focused on speculative stocks but late buying in property developer Ayala Land Inc. pushed up the main index above the key 2,300 points level.

The broader all-shares index rose 3.99 points to 1,430.75.

The Philippine peso was at 51.178 to the dollar.

"Stocks moved sideways with no major leads on the domestic front to trade on. Investors were largely focused on speculative issues," said Rommel Macapagal of Westlink Global Equities.

Food and beverage giant San Miguel Corp.’s A-shares advanced 50 centavos to P65 but its B-shares fell 50 centavos to P71. – AP, AFP