RP stock market continues climbing, jumps up 2.09 percent

MANILA, Philippines (Xinhua) - The Philippine stock market continued its climb on Tuesday on the back of the positive performance of US market, fueling hope that the overseas economy is on track in its recovery.

The bellwether Philippine Stock Exchange index jumped by 2.09 percent or 66.71 points to close to a more than two-year high of 3, 253.48. Likewise, the broader all share index was up by 1.55 percent or 30.87 points to 2,017.61.

Volume turnover was above average where a total of 1.88 billion shares valued at 4.23 billion pesos were changed hands.

Astro C. del Castillo of First Grade Holdings, Inc. attributed Tuesday's high turnover to the hot money that continues to flow into the local equities. Similar to the previous sessions, foreign buyers continue to beat sellers 2.1 billion pesos versus 1.44 billion pesos, respectively.

Investors on Tuesday were seen buying issues after a total of 91 issues finished higher as oppose to the 31 stocks that declined and the 50 shares that were unchanged.

Moreover, all six counters - led by the holding firm sector- were in the positive territory.

"It is still the same story line for the local market. We were influenced by the US market's rise," Erwin S. Balita of SB Equities, Inc. said.

The Dow Jones industrial average rose for the sixth time on Monday and was only seven-point short of touching its pre-crisis level of 11,000. The index closed at 10,973.55, up by 0.43 percent from Thursday's closing on the back of positive jobs report and the strong housing market report.

The country's March inflation, despite climbing to a three- month high of 4.4 percent, is also within the government and analysts' projection of 3.9 percent to 4.8 percent.

"Inflation was within expectations suggesting that the local bank's policy is consistent and timely. Its continued rise should not cause a concern since the appreciation of the peso will offset fears of rising crude prices," Balita said.

US crude prices for May delivery touched its 18-month high on Monday of $86.9 a barrel although it lost 0.23 percent of its value the next day to settle at $86.39 a barrel as the dollar strengthened.

The peso meanwhile touched its 19-month high on Monday of 45.01 pesos following the positive US jobs data.

"Our outlook is still the same. We believe that fund will continue to flow into the emerging markets in Asia because its economy is expected to grow by three times over that of the advanced economies," Balita said.

He pointed out that while the advanced economies are only expected to grow by 2 percent this year, emerging markets are seen growing by as much as 8 percent.

"We continue to be at pace with the other global markets but expect a correction anytime soon especially since we are again up for another long weekend," del Castillo said.

All of the 30 most actively traded issues closed higher, led by heavyweight Philippine Long Distance Telephone Co., Metropolitan Bank & Trust Co. and Ayala Corp.

"Companies that are expected to perform well this year were the ones that were bought up," del Castillo said.