Index climbs on strong export figures, passage of budget

Share prices closed 0.90 percent higher yesterday on the back of robust export figures and the passage of the national budget for 2007, dealers said.

Companies expected to report strong earnings for the third quarter, led by Philippine Long Distance Telephone Co. (PLDT), were in favor, they added.

The composite index gained 22.85 points to 2,557.25 after trading between 2,564.53 and 2,534.40.

The broader all-share index rose 13.25 points to 1,571.41.

Gainers led losers 74 to 24, with 51 stocks unchanged.

Volume was 1.43 billion shares worth P2.1 billion.

Shortly before the market opened, the National Statistics Office (NSO) announced that exports in August rose 21.3 percent over the same period last year to $4.26 billion.

The House of Representatives, meanwhile, approved the government’s proposed budget for 2007 although this will still have to go through the Senate before it becomes law.

"Investors nibbled at certain companies that are likely to post strong earnings for the third quarter and the rest of the year, following a string of positive economic news," said Mark Alan Canizares of CitisecOnline.

PLDT, the most briskly traded stock, rose P25 to close at P2,200. Globe Telecom was up P5 at P1,105.

Ayala Corp. advanced P2.50 to P487.50 while SM Investments jumped P7.50 to P260.

San Miguel A-shares ended flat at P66 while its B-shares rose P2.50 to P76.50.

"Exports and improved consumer spending in the US are providing positive sentiment for Philippine stocks,’’ said Grace Cerdenia, head of research at 2TradeAsia.com in Manila.

Meanwhile, The Federal Reserve said consumer spending and demand for services quickened in September across the US, the Philippines’ biggest export market. Most regions saw little pressure to raise prices, while manufacturing was strong and the job market stayed tight, the Fed said yesterday in its regional survey known as the beige book for the color of its cover.

The US accounts for more than half of remittances from overseas workers sent back to the Philippines.

Philex Mining Co., the nation’s biggest mining company, and Lepanto Consolidated Mining Co., which mines gold and copper, gained after the government reported that shipments of copper, gold and other minerals climbed almost threefold to $200 million.

Philex gained 15 centavos, or 4.3 percent, to P3.65, while Lepanto rose 0.5 centavos, or 2.1 percent, to 24.

Philippine Long Distance Telephone Co., the country’s biggest company by market value, rose P25, or 1.2 percent, to P2,200. – AFP