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THE
Philippine stock index Monday rose on speculation
economic growth in the first quarter accelerated to the
fastest in three quarters. Philippine Long Distance
Telephone Co. (PLDT) and Ayala Corp. gained.
“Expectations of very positive economic numbers is
sustaining investors’ demand for stocks,” said Astro del
Castillo, managing director of First Grade Holdings
Inc., a financial management and advisory company in
Manila.
Megaworld Corp. had its biggest decline this month on
expectations a share sale by Alliance Global Group Inc.,
which owns a quarter of the developer, will draw away
demand for the property company. Philippine National
Bank, which may sell shares to boost capital, gained for
the first time in five days after the lender’s stock
rating was raised by UBS AG.
The
Philippine Stock Exchange index added 1.8, or less than
0.1 percent, to 3443.56 at the close, trimming a gain of
as much as 0.7 percent in earlier trading. One stock
rose for each that fell in the 34-member stock measure.
The
index, which closed at a record 3505.03 on May 22, is up
5.3 percent this month. The measure has advanced in each
of the previous two months.
PLDT,
the nation’s biggest company by market value, climbed
P50, or 2 percent, to P2,555, bringing a three-day gain
to 3.4 percent. Ayala Corp., owner of the nation’s
largest property developer and second-biggest bank, rose
P5, or 1 percent, to 5P10, its first gain in six days.
The
Philippine economy probably grew 5.7 percent in the
three months ended March 31, according to the median of
estimates by 10 economists in a Bloomberg survey Monday.
The government is scheduled to release the data on May
31.
Earnings
momentum
“FASTER
economic growth shows good business prospects and
supports the outlook that the momentum in earnings will
be sustained,” del Castillo said.
Manila
Electric Co.’s Class A shares, equity reserved for
Filipinos in the nation’s largest power retailer, gained
50 centavos, or 0.6 percent, to P91, ending a three-day
3.2- percent slide. Its Class B shares, which have no
ownership restrictions, climbed P1.50, or 1.7 percent,
to P91.50 after a three-day, 4.3- percent loss.
Megaworld, a builder of residential and office towers,
tumbled 15 centavos, or 3.9 percent, to P3.70, extending
a three-day, 8.3- percent loss. Alliance Global, which
plans to sell as many as 1.8 billion new shares to raise
at least $200 million for expansion, added 10 centavos,
or 1.6 percent, to P6.40 its first gain in six days.
Megaworld stock
SHARES
of Megaworld have advanced 53 percent this year,
compared with a 31 percent gain in Alliance Global,
which also owns part of the McDonald’s Corp. franchise
in the
Philippines.
“Alliance Global could be a good alternative” to owning
shares in Megaworld, del Castillo said.
Separately, Philippine National Bank, one of two lenders
owned by tobacco and airline magnate Lucio Tan, jumped
P1.50, or 3.2 percent, to P49, its biggest climb since
April 10. The stock had its first gain in five days
after UBS told investors on May 25 to buy shares in the
bank, revising a previous ‘reduce’ rating on the stock.
Shares
worth P3.6 billion pesos were traded, 20 percent less
than the six-month daily average and the second-lowest
this month. Losers beat gainers, 62 to 58, with 55
stocks unchanged in the broader market. |
