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| By Ian C. Sayson |
| Bloomberg |
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| THE Philippine stock index yesterday rose for the fourth day to the highest in more than 10 years. Bank of the Philippine Islands rose after the central bank said loan growth will continue due to lower interest rates. “An expansion in lending would be good for banks because that would mean more business for them,” said Tanya Cua, analyst at the Alliance Global Group Inc., which owns part of McDonald’s Corp. in the Philippines, climbed for the first time in seven days after the company said first-quarter profit tripled. The Philippine Stock Exchange index advanced 8.49, or 0.3 percent, to 3417.69 at the close, after climbing 2 percent in the past three days. The measure is less than 30 points away from its record close of 3447.60, a level it reached on February 3, 1997. It breached that level earlier Thursday, when it rose as much as 1.3 percent. Bank of the Philippine Islands, the nation’s second-biggest lender by asset, added 50 centavos, or 0.7 percent, to P68, rounding a 5.4 percent, four-day climb. Metropolitan Bank & Trust Co., the nation’s largest lender by asset, climbed 50 centavos, or 0.8 percent, to P63.50, a two-week high. Bank lending will continue to expand after accelerating for the first time in three months in March, when it increased 9.9 percent, because the central bank has effectively lowered its key interest rate, deputy governor Diwa Guinigundo said Wednesday after trading closed. THE central bank in November cut the rate it pays commercial banks for some overnight deposits to encourage lending to businesses and consumers, while holding its key rate steady. An expansion in bank lending could boost consumer spending, spurring demand for homes, food, clothes and phone services, according to analysts such as Astro del Castillo, managing director of First Grade Holdings Inc., a financial management and advisory company in Ayala Land Inc., the nation’s largest developer, added 25 centavos, or 1.7 percent, to P15.25, its first gain in five days. SM Prime Holdings Inc., the nation’s largest shopping mall operator, gained 25 centavos, or 2.1 percent, to P12.25, its highest close since February 27. Alliance Global, which also owns 46 percent of Megaworld Corp., jumped 20 centavos, or 3.2 percent, to P6.40, after sliding 7.5 percent in the past six sessions. The company said first-quarter net income grew to P494 million as it opened more McDonald’s outlets and its property unit sold more homes and offices. Megaworld, a builder of residential and office towers, gained 5 centavos, or 1.3 percent, to P3.95, rounding a five-day, 13-percent climb. Megaworld said Thursday it will accelerate by six months the construction of twin office towers in Manila for back-office service providers and call centers in anticipation of stronger demand. Shares worth P3.92 billion were traded, 8.4-percent less than the six-month daily average. Losers beat gainers 53 to 44, with 62 stocks unchanged in the broader market. |
http://www.businessmirror.com.ph/0518&192007/companies02.html
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