Balls of fire

MANILA (AFP) - Philippine share prices closed 0.50 percent higher Monday, buoyed by a surge in Wall Street last week and strong interest in blue chip Manila Electric Co (Meralco), dealers said.

Sustained buying, particularly in Meralco, saw the main index touching a new intraday high of 3,480.70 before mild profit-taking limited the gains at the close, they said.

The 30-company composite index finished up 17.16 points at 3,466.34, topping last Friday's all-time closing high of 3,449.18.

The broader all-share index gained 12.28 points to 2,212.53.

Gainers trounced losers 71 to 33, while 55 stocks ended unchanged.

A total of 6.3 billion shares worth 4.9 billion pesos (106.5 million dollars).

"The market focused on the country's strong economic fundamentals," said Gomer Tan of Regina Capital Development Corp.

Tan said election-related concerns appear to have eased, with the election results expected to be known this week.

"The positive outlook on most economic fronts strengthened investor confidence.

"With the peso's further appreciation, the upcoming upgrade of the country's credit ratings and strong corporate earnings will see the index pushing forward to the 3,800 to 4,000 level before the end of the year," added Tan.

Jasper Jimenez, an analyst at BDO Securities Corp, said with momentum already in place, the market is not likely to retreat in the coming sessions.

"There are no signs of a correction yet, and even if the market consolidates, the drop wouldn't be so deep, especially if portfolio investments keep coming in."

Meralco B shares, the most actively-traded stock, rose 2.00 pesos to 89.50, while its A shares also added 2.00 to 89.00.

Ayala Land Inc, rose 25 centavos at 15.50 while Metropolitan Bank and Trust Co added 1.50 at 65.00.

Market heavyweight Philippine Long Distance Telephone Co was unchanged at 2,540.00 pesos.

Bucking the trend was food and beverage conglomerate San Miguel Corp, whose A shares declined 5.00 pesos to 71.50 while its B shares slipped 2.00 to 78.00.