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PHILIPPINE stocks rose for the fifth successive trading
day Wednesday and continued to lift the index at its
highest in almost a decade. Speculations by market
players remain strong that record-low bond yields will
boost demand for shares.
“The
drop in bond yields and a low interest-rate environment
will spur people to go to equities,” said Rico Gomez,
who helps manage about $1 billion at Rizal Commercial
Banking Corp. “Low fixed-income returns will make
dividend-paying stocks look very attractive.”
Ayala
Land Inc. and Bank of the Philippine Islands gained on
speculation lower interest rates will spur demand for
homes and loans. The value of shares traded is the
highest in six weeks.
The
Philippine Stock Exchange Index added 45.41, or 1.4
percent, to 3244.75 at the close, extending a four-day,
5.2-percent advance. It hasn’t closed higher since
March 13, 1997. The measure fell as much as 0.3 percent earlier
Wednesday.
Philippine Long Distance Telephone Co.(PLDT), the
nation’s largest company by market value, added P20, or
0.7 percent, to a record P2740. Ayala Corp., the
nation’s third-largest company by market value, added
P20 or 3.3 percent, to P620, its highest ever.
Ayala’s
dividend payment has grown 26 percent in five years. The
shares are among the 22 stocks Wednesday that climbed to
at least their 52-week highs.
“With
returns from fixed income declining, investors are more
and more choosing stocks that are good in paying
dividends,” Gomez said.
‘Good’
for Mortgages
THE
yield on the 91-day Treasury bill, which banks use as a
benchmark for loan rates, dropped to a record 3.171
percent at a government auction this week. The yields of
the 182-day bill and the 364-day bill also fell to
records.
Class A
shares of Manila Electric Co., equity reserved for
Filipinos in the nation’s largest power retailer, surged
P3, or 4.5 percent, to P69.50, to the highest close
since February 23, 2000. Its Class B shares, which have
no ownership restrictions, advanced P3.50, or 5.2
percent, to P71.50, bringing this year’s advance to 30
percent.
Meralco,
as the power retailer is known, next month will pay its
first dividend in seven years. The company will pay
P1.01 billion or P1 a share in dividends.
Aboitiz
Equity Ventures Inc., which has investments in power,
banking and transportation, climbed 40 centavos, or 4.4
percent, to a record P9.60, extending this year’s gain
to 37 percent. Aboitiz is set to pay its biggest ever
dividend, 20 centavos a share, on February 23.
Ayala Land,
the nation’s biggest developer, gained 25 centavos, or
1.5 percent, to P16.75, after climbing as much as 6.1
percent. Bank of the Philippine Islands, the most
profitable lender, climbed P1, or 1.4 percent, to
P71.50, its highest ever.
“Low
interest rates will be good for home purchases and
demand for loans,” said Mark Canizares, an analyst with
CitisecOnline in Manila.
Metropolitan Bank & Trust Co., the nation’s largest
lender by assets, added P1, or 1.7 percent, to P60,
bringing this year’s gain to 17 percent. Robinsons Land
Corp., a builder of residential towers, gained 25
centavos, or 1.7 percent, to P15.25, its first climb in
six days.
Megaworld Corp., the nation’s largest builder of
residential and office condominiums, surged 12 centavos,
or 5.1 percent, to P2.46, its biggest gain since
December 12.
Megaworld’s share price may advance to P2.90 a share in
the next 12 months, compared with a previous P2.20
forecast, on expectation that it will offer 25-year
financing for all its residential projects,
CitisecOnline said in a note Wednesday.
Shares
worth P6.24 billion were traded, more than double the
six-month daily average and the biggest since December
13. Gainers outnumbered losers 67 to 49, with 49 stocks
unchanged. The measure fell as much as 0.3 percent
earlier Wednesday. |
