May 18, 2007
Updated 14:41:47 (Mla time)
Strong interest in Manila Electric Co (Meralco) sustained the market's momentum, pushing the index to a new trading high of 3,457.93 before paring gains towards the close. It was the third straight session that the key index posted a record high intraday.
The 30-company composite index finished up 31.49 points or 0.92 percent at 3,449.18, erasing the previous closing record of 3,447.60 set on Feb 3, 1997. It hit a low of 3,419.40.
For the week, the composite index climbed 2.5 percent.
The broader all-share index jumped 17.88 points or 0.82 percent to 2,200.25.
There were 62 gainers and 40 losers, while 57 stocks were unchanged.
A total of 3.1 billion shares worth P9.7 billion were traded.
"Market sentiment was buoyed by good economic indicators and corporate results. Also, election-related concerns are out of the way," said Gomer Tan, vice president for marketing at Regina Capital Development Corp.
At the spot currency market, the peso rallied to 46.65 against the US dollar in morning trade, a new high in six years, after the central bank said Thursday that foreign portfolio investments in April registered a net inflow of $243.1 million, up 40 percent from 173.21 million in March.
The counting of votes after last Monday's midterm elections continued with the opposition poised to retain control of the Senate, based on initial tallies. President Gloria Macapagal-Arroyo's allies, however, are expected to grab majority of the seats in the House of Representatives.
"The victory of the overwhelming majority of candidates sympathetic to the administration shows a vote for political stability and economic reform," Arroyo told an investor conference on Thursday, referring to election results for the Lower House and local government posts.
"We are edified by the confidence shown by our financial market and investors in our ability to surmount the myriad challenges that usually exist in any election," Arroyo later added in a statement Friday.
Meralco's A-shares, which only Filipinos can buy, jumped P9.00 or 11.54 percent to 87.00. Its B-shares, which are open to foreign investors, rose P8.00 or 10.06 percent to 87.50.
Ron Rodrigo, research head at Unicapital Securities, said investors were probably speculating that Meralco will soon get regulatory approval for its tariff hike petition.
In an interview with XFN-Asia, First Philippine Holdings Corp. president Elpidio IBanez said the company was hoping for a favorable decision from the Energy Regulatory Commission on Meralco's petition by July.
First Philippine Holdings, one of the biggest shareholders of Meralco, was up P4.00 or 5.37 percent at 78.50. Its parent, Benpres Holdings Corp, rose P0.15 or 3.95 percent to 3.95.
Conglomerate Ayala Corp gained P10.00 or 1.96 percent to 520.00.
Philippine Long Distance Telephone Co advanced P15.00 or 0.59 percent to 2,540.00.
Food and beverage group San Miguel Corp's A-shares rose P1.50 or 2.0 percent to 76.50, but its B-shares fell P2.00 or 2.44 percent to 80.00.
Data from the stock exchange showed 56.68 million San Miguel B-shares were sold in a single transaction at P85.00 apiece or a total of P4.8 billion. No other details were immediately available.
Analysts said the market may take a breather following its strong gains this week.
"We may see a technical correction and consolidation next week," Unicapital's Rodrigo said.
http://services.inquirer.net/express/07/05/18/html_output/xmlhtml/20070518-66667-xml.html
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