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PHILIPPINE stocks rose, rebounding from a two-month low,
after the central bank said money transfers from
Filipinos working overseas will climb to a record this
year.
Ayala
Land Inc., which makes 45 percent of its home sales to
Filipinos working overseas, and Bank of the Philippine
Islands (BPI) gained on speculation rising remittances
will boost consumer spending and economic growth.
“This is
a reassurance that the economy will remain liquid,” said
Marvin Fausto, who helps manage $3.5 billion in assets
at Equitable PCIBank. “It reduces the risk that interest
rates will go up and gives support to the stock market.”
Philippine Long Distance Telephone Co. (PLDT) rose after
it increased its dividend payout ratio. International
Container Terminal Services Inc. advanced after
shareholders approved its merger with a unit.
The
Philippine Stock Exchange Index jumped 89.99, or 3
percent, to 3063.26 at the close, after sliding 12
percent over the previous seven days during a global
equity selloff.
The
measure fell Tuesday to its lowest since January 11.
Only 14 of 153 stocks fell Wednesday in the broader
market.
Ayala Land
rose 75 centavos, or 4.9 percent, to P16. BPI, which
forecasts a 20 percent growth in its remittance business
annually in the next three years, added P2, or 3.2
percent, to P65, its first gain in four days.
Remittances from Filipinos working overseas may rise 5
percent to a record $14.7 billion this year, Philippine
central bank Governor Amando Tetangco said Tuesday at
the close of trading. The inflows make up about 12
percent of the $117-billion Philippine economy.
‘Chief
driver’
“REMITTANCES continue to be a chief driver of the
economy,” said Nadine Javellana, an analyst at the
Manila-unit of Macquarie Securities Ltd. “The prime
beneficiaries of robust overseas remittances would be
the property and banking sectors.”
SM Prime
Holdings Inc., the nation’s largest builder and operator
of shopping malls, added 50 centavos, or 4.6 percent, to
P11.50. Universal Robina Corp., the nation’s largest
snacks-maker, gained 25 centavos, or 1.4 percent, to
P18.
Megaworld Corp., which sources at least a quarter of its
home sales to overseas Filipinos and their families,
gained 15 centavos, or 5.7 percent, to P2.80, after a
21-percent loss in the past six days.
Metropolitan Bank & Trust Co., which is adding branches
in California and Macau to expand its remittance
business, rose P3, or 5.4 percent, to P59, its first
gain in four days.
Share-price weakness
PLDT,
the nation’s largest phone company, jumped P25, or 1.1
percent, to P2370, snapping a three-day, 3.1 percent
decline.
“The
weakness in the share price is an excellent
opportunity,” said Ramakrishna Maruvada, Singapore-based
analyst at Macquarie Securities and who reiterated his
‘outperform’ rating on the stock in a note to clients
Thursday. “Our investment thesis on the stock is
centered on a buoyant macro environment, cheap
valuations and strong free cashflow generation.”
Stocks
plunged worldwide last week after a tumble in Chinese
equities and disappointing reports on the US economy
rattled investor confidence.
Higher
dividends
PLDT
said at the close of trading Tuesday that it will pay 70
percent of its profit in dividends, up from 60 percent
previously. The company said that it plans to pay some
of its dollar debt before its due to take advantage of
the stronger peso.
International Container rose P1, or 3.7 percent, to P28,
following a three-day, 10 percent slump. The company’s
shareholders approved Wednesday a merger with ICTSI
Manila Holdings Inc. and the reduction of International
Container’s authorized capital stock by 332.6 million
shares.
Shares
worth P5.56 billion were traded, 51 percent more than
the six-month daily average. |
