Follow-through buying, low interest rates boost market

Share prices closed 0.57 percent higher yesterday due to follow-through buying in blue chips and select second-liners ahead of the long Easter break, dealers said.

They said a fall in benchmark Treasury bill (T-bill) rates to record lows had further driven up interest in stocks.

The Philippine Stock Exchange (PSE) composite index closed up 18.40 points at 3,248 after moving between 3,229.60 and 3,260.48.

The broader all-share index rose 8.11 points to 2,069.69.

Gainers edged out losers 75 to 36, while 51 stocks ended unchanged. A total of 3.7 billion shares worth P4.4 billion changed hands.

"We are expecting weaker trading because of the Easter holidays, but the record-low interest rates became the impetus for positioning in blue chips and select second-liners," said Chelsea Dipasupil of RCBC Securities Ltd.

"There is so much liquidity right now and it is the long-term investors, not the punters and penny stock players, that are snapping up issues," added Dipasupil.

Dealers said investors are more comfortable now coming back into the market despite lingering concerns over the slowing US economy, which have been keeping financial markets on edge.

"The first quarter performance of the local stock market was quite good, it was up 7.6 percent from January to end-March. So this gives investors a better perspective even when the major bourses are volatile," said Ron Rodrigo of Unicapital Securities Inc.

Top-traded Philippine Long Distance Telephone Co. (PLDT) continued the gains of its New York-traded American Depositary Receipts overnight, rising P40 to P2,565.

Ayala Corp. edged up P5 to P570.

Property developer Megaworld Corp. advanced five centavos to P3.55 after reporting strong earnings results for 2006.

Ayala Land Inc. was steady at P16.75.

Food and beverage giant San Miguel Corp.’s A shares gained 50 centavos to P65 while its B shares were up P1 to P73.

Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said that monetary authorities will take steps to lift interest rates that have fallen below the inflation level. The yield of the 91-day T-bill, which banks use to price loans, slipped to a record in yesterday’s auction. — AFP