Strong blue chips continue to boost market

Share prices closed 0.15 percent higher yesterday as support for the conglomerates pushed the market to its best levels since May before profit-taking trimmed the gains, dealers said.

They said investors turned cautious after the index hit the resistance level of 2,400 points.

The composite index was up 3.64 points at 2,396.20, its highest close since May 17 when it ended at 2,463.57. The index moved between 2,384.90 and 2,401.55.

Volume was 3.37 billion shares worth P1.84 billion.

The broader all-shares index rose 1.06 points to 1,482.59.

Losers beat gainers 61 to 29, with 61 stocks unchanged.

"Investors lightened up their load after the key index hit 2,400. The market is probably just taking a breather and trying to build a base in the 2,350 to 2,380 range," said Rommel Macapagal of Westlink Global Equities.

He said a notice issued by the exchange advising investors to exercise prudence in making investment decisions was taken by some market players as a signal to cash-in gains.

In a memorandum to brokers Monday, the exchange said the stocks of a number of listed companies had breached their trading limits in the past two months.

It added that almost all these companies said they were not aware of any material information that might have caused the increases in the prices of their shares and volume traded.

SM Investments, the most actively traded stock, rose P3 to P230.

Ayala Corp. was up P7.50 at P470.

Philippine Long Distance Telephone Co. (PLDT) fell P5 to P1,995.

Food and beverage giant San Miguel Corp.’s A-shares were steady at P65 and its B-shares flat at P71.

Philex Class A shares, which are reserved for Filipinos, added five centavos, or 1.3 percent, to P4 after climbing as much as 3.8 percent. Its Class B shares, which have no ownership restrictions, gained five centavos, or 1.3 percent, to P4.

Copper futures for December delivery gained 4.7 percent to $3.6245 a pound on the Comex division of the New York Mercantile Exchange, the largest gain since July 6, boosted by demand from mutual funds and pension systems seeking returns unavailable in stocks and bonds. Gold gained 2.3 percent in New York.

Manila Electric Co.’s Class B shares fell 50 centavos, or 1.7 percent, to P28.50, its first loss in eight sessions. The nation’s largest electricity distributor said yesterday afternoon that the energy regulator told it to stop adjusting automatically the power generation costs it collects from customers. – AFP