Local shares close 2.24 percent higher due to stronger economic gains

MANILA (AFP) - Philippine share prices closed 2.24 percent higher Thursday on broad-based buying as investors cheered stronger than expected economic growth figures, dealers said.

Overnight gains on Wall Street also provided buying impetus and negated fears by a sharp drop in the Chinese market that has caused fears of another sell-off in global equities, they said.

The composite index added 76.12 points to 3,474.67, the day's high, off a low of 3,398.55

The broader all-share index gained 43 points or 1.97 percent to 2,222.59.

Gainers led losers 111 to six, while 46 stocks ended flat.

A total of 5.2 billion shares worth 7.0 billion pesos (155 million dollars) were traded.

The peso traded at 46.15 to the dollar.

The government reported gross domestic product in the first three months of the year grew 6.9 percent year-on-year, driven by robust services and industrial output.

"The rise on Wall Street sent a statement that the decline of the Chinese stock markets over the raising of the stamp duty on stock transactions was not about to trigger a repeat of the big sell-off last February," said Jose Vistan Jr of AB Capital Securities.

"Investors also realised China took a big step to cool off its overheating stock market," he added.

The upbeat GDP data also perked up investor sentiment, said Unicapital Securities analyst Ron Rodrigo.

"The numbers confirmed that the country's macroeconomic fundamentals are very strong and sound. The GDP number was a positive surprise," said Rodrigo.

Economic Planning Secretary Romulo Neri said the strong performance puts the economy on course to grow by 6.1 percent for the whole of 2007, as the government had forecast.

Philippine Long Distance Telephone Co. led the day's big gainers, rising 85 pesos to 2,555. Rival Globe Telecom Inc added 25 to 1,360.

Property developer Ayala Land Inc. rose 50 centavos to 15.50 pesos while its parent, conglomerate Ayala Corp, edged up 10 to 530.

Food and beverage conglomerate San Miguel Corp's A-shares advanced 50 centavos to 66 pesos, while its B-shares added 50 centavos to 76.50 pesos.