Index rises anew on back of Wall St’s hefty gains

Share prices closed higher for the second straight session yesterday as domestic security fears were allayed and investors were encouraged by further gains on Wall Street overnight.

Gains were broad-based, reflecting hopes for positive third-quarter earnings and a cut in interest rates by the Fed next week.

Wall Street widely expects the US central bank to again lower rates after its half-point cut in September intended to address problems in the credit markets. The composite index finished up 66.30 points or 1.8 percent at 3,763.47, after moving between 3,722.77 and 3,772.36.

The broader all-share index rose 35.77 points or 1.6 percent to 2,339.82.

“Given renewed interest in risky assets following Wall Street’s advance for the past two days, the market’s momentum should continue,” said Gomer Tan, vice president for marketing at Regina Capital Development Corp.

“Security problems have been discounted and the outlook for earnings is upbeat. There was relief, too, that oil prices continued to pull back (from fresh records reached last week),” he said.

The police said Tuesday the powerful blast at the Glorietta mall in the capital’s main business district, which killed 11 people and injured over a hundred, may have been caused by an accidental gas leak.

Initial speculation that it was a bomb attack unnerved investors, sending the main index to a three-week low last Monday.

Market heavyweight Philippine Long Distance Telephone Co. (PLDT), the country’s biggest company by market value, rose P55 or 1.8 percent to P3,090.

PLDT tracked the solid 2.5 percent gain overnight in its New York-traded American Depositary Receipts, which followed positive comments from Macquarie Research about the Philippine telecom sector.

PLDT’s main rival Globe Telecom was up P10 or 0.6 percent at P1,710.

“The operations of PLDT and Globe are tracking within expectations and our (company) visit threw no major surprises,” Macquarie said in a note.

“We do not see an imminent threat to the quasi duopoly operating environment, and as such reiterate our ‘outperform’ rating on both PLDT and Globe, with the latter as our top pick,” it said.

Shares in Ayala Land, the country’s biggest property developer and owner of the Glorietta shopping complex, surrendered early gains.

The stock ended unchanged at P16.50 following reports that the mall was to be closed Wednesday for an inspection ordered by the city government. — Technistock