Stocks end higher on brighter economic prospects

Share prices rose for the second straight session yesterday as brighter economic prospects overcame profit-taking earlier in the day, dealers said.

Investor confidence is high especially with government now saying it is intent on maintaining economic momentum, they said.

The 30-company Philippine Stock Exchange Index gained 3.61 points, or 0.1 percent, to close at 3,378.92, adding to Tuesday’s 1.4 percent rise.

Gainers beat losers 87 to 43 while 45 stocks were unchanged. Volume amounted to 10.3 billion shares worth P5.9 billion.

"Investor confidence is really high, especially with the government now saying it is intent on maintaining economic momentum," Ron Rodrigo, an analyst with Unicapital Securities Inc., said.

Dealers said investors also prefer to invest in stocks instead of government securities and other fixed-income instruments with rates on benchmark Treasury bills at record lows.

The market, however, appears to be overheating, said Summit Securities president Harry Liu, and may need to take a breather before attempting to retest the 3,400- point resistance level.

"The market is in overbought condition after extended rallies, so we can expect some correction to take place before it builds up momentum to get to the all-time high level," said Liu.

Westlink Global Equities chairman Rommel Macapagal said the market may reverse the recent upward trend unless there is fresh positive news.

"We really need these corrections," he said. "The market must now find a new support."

Top-traded Philippine Long Distance Telephone Co. (PLDT) gained P10 to P2,605 while rival Globe Telecom Inc advanced P15 to P1,370.

Ayala Land Inc. shed 25 centavos to P16.75.

Food and beverage conglomerate San Miguel Corp.’s A-shares advanced one to P67 and its B-shares were flat at P78.50. — AFP, AP