Index sustains gains on strong expectations for 2007

Share prices jumped 2.08 percent yesterday for the bet finish in more than nine years as investor bet on continued strong gains going into 2007, dealers said.

They said Wall Street’s record performance overnight provided a strong lead, with most blue chips led by Philippine Long Distance Telephone Co. (PLDT) posting strong gains.

The Philippine Stock Exchange composite index rose 59.91 points to close at the day’s high of 2,943.38, off a low of 2,883.47. It was the best finish since April 18, 1997, before the outbreak of the Asian financial crisis, when the market closed at 2,944.98.

The broader all-share index rose 30.67 points to 1,843.67.

Gainers beat losers 65 to 26 with 58 stocks unchanged.

Turnover was 2.57 billion shares worth P2.16 billion.

"Those who are expecting better times ahead are taking positions now," said Rommel Macapagal of Westlink Global Equities.

"Other Asian markets are also hitting multi-year highs and the peso is gaining further strength. These factors are making investors more bullish," said Lawrence de Leon of Accord Capital Equities.

Top-traded PNOC Energy Development Corp. rose 20 centavos to P4.80.

PLDT jumped P100 to P2,450.

Conglomerate SM Investments Corp. added P17.50 to end at a record high P330. Its unit, mall operator SM Prime Holdings Inc. advanced 75 centavos to P11.25.

Food and beverage firm San Miguel Corp.’s A-shares were unchanged at P66.50 while its B-shares rose P1 to P75.

Philippine imports rose in October as chipmakers boosted purchases of raw materials for electronic products, the National Statistics Office reported yesterday.

"It’s a continuous flow" of good news, said Rico Gomez, who helps manage about $1 billion at Rizal Commercial Banking Corp. in Manila. "As long as the government doesn’t slide on the budget deficit, the macro economy will do well." Investors are "probably positioning for next year’s market."

Petron Corp., the country’s largest refiner, rose five centavos, or 1.2 percent, to P4.10. PNOC Energy Development Corp., a geothermal power producer, gained 20 centavos, or 4.4 percent, to P4.80.

The two companies profits may rise as much as 15 percent next year, The Philippine Star reported yesterday, citing Pedro Aquino, president of their parent Philippine National Oil Co. – AFP