Foreign buying in select stocks boosts share prices

Shares rose yesterday on foreign buying in banks and property stocks.

The benchmark 30-company Philippine Stock Exchange Index gained 6.84 points, or 0.2 percent, to 2,795.30, after rising 1.6 percent Thursday. Markets were closed Friday for a public holiday.

"We saw foreign investors returning today after being net sellers in recent days," said Ricardo Puig, analyst at Wealth Securities.

The composite index added 6.84 points to 2,795.30,the day’s high, from a low of 2,773.04.

The broader all-share index rose two points to 1,746.28.

Losers outnumbered gainers 70 to 34 with 42 unchanged. Turnover totalled 1.9 billion shares with a value of P3.4 billion.

"We’re still in a consolidation phase where gains are immediately followed by profit-taking," said Ron Rodrigo of Unicapital Securities.

"I think the market will remain in this cycle for a few more days since there are no major leads at the moment," he added.

Top-traded PLDT fell P15 to P2,445.

San Miguel A and B shares were steady at P66 and P74, respectively.

"Statements implying that rates are staying low or going lower is an instant attraction for funds to go back to the market," said Mark Canizares, an analyst at CitisecOnline.

Megaworld Corp. jumped after saying a financing agreement will increase property sales. Gains were limited in yesterday’s trading amid concern some fund managers sold stock to raise cash to pay for shares in PNOC Energy Development Corp.’s initial public offering.

Super typhoon Reming had little impact on trading, Canizares said.

Ayala Land gained 50 centavos, or 3.5 percent, to P15. Bank of the Philippine Islands, climbed P1, or 1.6 percent, to P63. SM Prime Holdings Inc., the Philippines’ largest mall operator, gained 10 centavos, or one percent, to P9.90.

Low interest rates leave consumers with more disposable income, fueling demand for property and loans. BSP Governor Amando M. Tetangco Jr. told reporters that "the direction is toward the relaxation of monetary policy."

The BSP kept the rate it pays commercial lenders for overnight placements at 7.5 percent while reducing, or "tiering," the amount it pays for deposits exceeding P5 billion to as low as 3.5 percent.

Megaworld rose two centavos, or 0.9 percent, to P2.20. The company said a home financing agreement with Security Bank Corp. will increase reservation sales by at least half to P15 billion next year.

Security Bank, which will initially lend P7 billion under the arrangement, gained P1.50, or 2.3 percent, to P65.50. – AP