Index climbs ahead of 2006 corporate growth figures

Share prices closed 0.46 percent higher yesterday as investors bought into stocks ahead of the release of 2006 growth figures due later this week, dealers said.

Investors also took into consideration the first batch of 2006 corporate results expected this week in their buying choices, they said.

The composite index rose 14.54 points to end at the day’s high of 3,177.36. It hit a low of 3,155.78.

The broader all-share index rose 8.54 points to 1,976.46.

Gainers led losers 71 to 41, while 48 stocks were unchanged. Volume was 2.94 billion shares worth P8.98 billion.

"The major correction last Friday provided bullish investors fresh buying opportunity," DA Market Securities president Nestor Aguila said.

However, he said investors were less aggressive this time as many of them preferred to buy at bigger discounts.

Erwin Balita, an analyst at AB Capital Securities Inc., said in a note: "Lower country risks have resulted in a better valuation for most big cap issues. Adjustments to PLDT has resulted in a consensus valuation of P3,000 share for the cash-rich firm."

Top-traded Philippine Long Distance Telephone Co. (PLDT) was up P5 at P2,635.

Food and beverage firm San Miguel Corp.’s A-shares were steady at P63 while its B-shares fell 50 centavos to P74.50.

"The economy’s outlook remains positive," said Astro del Castillo, managing director of First Grade Holding Inc., a financial management and advisory company in Manila. "Investors are more confident with the economy’s prospects."

Aboitiz Equity Ventures Inc. fell after the company said it sold shares at a discount. DMCI Holdings Inc. declined after the contractor said it may sell up to $50 million worth of shares.

Megaworld Corp., a builder of residential and office towers, gained four centavos, or 1.6 percent, to P2.50 the highest since April 7, 1997. Metropolitan Bank & Trust Co., the country’s biggest lender by asset, climbed 50 centavos, or 0.9 percent, to P57.50.

Aboitiz Equity Ventures, owner of the country’s second- and third-largest power retailers, lost 30 centavos, or 3.5 percent, to P8.40. The stock has plunged 13 percent since climbing to a record on Jan. 24. The company said it sold 743 million shares at P8.20 each, a 5.7-percent discount from the stock’s price on Jan. 26.

DMCI Holdings, the country’s biggest construction company, fell 10 centavos, or 1.5 percent, to P6.80 rounding out a five-day, 8.1-percent loss. The company said after the market closed Jan. 26 that it hired Macquarie Securities (Asia) Pte. Ltd. to advise on its options to fund its investment in a water venture, including the sale of shares. – AFP