Wall St gains, PLDT, Megaworld rally boost stocks

Stocks rose yesterday, in step with Wall Street’s overnight advance, mainly on gains by blue chips Philippine Long Distance Telephone Co. (PLDT) and Megaworld.

The benchmark 30-company Philippine Stock Exchange Index gained 17.77 points, or 0.8 percent, to 2,379.43, after shedding 1.6 percent Tuesday.

PLDT rose one percent to P2,020 after giving up two percent in the previous session, while Megaworld gained 1.1 percent to P1.86 after falling the same rate in the previous session.

"What we had today was more of a technical rebound from yesterday’s relatively big drop," said AB Capital Securities Research director Jose Vistan.

Gains in the US stock market, where the Dow Jones industrial average rose 0.89 percent Tuesday, served as a catalyst, he said.

"Domestic fundamentals are intact, so anything positive from abroad or locally is taken as a reason to buy," Vistan said.

Other active stocks included Filinvest Land, which rose 1.5 percent to P1.38 on last-minute demand following the announcement that the real estate concern has tied up with a unit of Africa Investments Ltd. for a property development joint venture.

Philex Mining A and B fell even after the company announced that the Securities and Exchange Commission has approved the declassification of Philex shares. Analysts said the good news may have been offset by the continuing decline in world metal prices.

Philex A, which is open only to local investors, fell 1.5 percent to P3.20, while Philex B, which is traded by both foreign and local investors, was down 4.6 percent to P3.15.

Decliners led gainers 60 to 40, while 52 stocks were unchanged.

Metrobank, the nation’s largest lender by assets, rose P1.50, or four percent, to P39.50, its biggest gain in nine days. Jollibee Foods Corp., the nation’s largest fast-food company, rose 50 centavos, or 1.5 percent, to P33.50.

In a Sept. 4 letter released by the company yesterday, Philippine Long Distance said it had appealed a government decision to scrap a six-year tax holiday for its investment in high-speed mobile-phone services.

Megaworld Corp., gained two centavos, or 1.1 percent, to P1.86. Company Executive Director Kingson Sian said that Megaworld has found tenants for 95 percent of a 10-story tower it’s building for call centers. – AP