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PHILIPPINE stocks rose for a sixth day, driving the
benchmark to a decade-high. DMCI Holdings Inc. and
Holcim Philippines Inc. gained after lawmakers approved
this year’s budget.
“Infrastructure will be one of the main sectors that
will benefit from this,” said Jonathan Ravelas, market
strategist at Banco de Oro in Manila.
Ayala
Land Inc. rose on speculation the nation’s largest
builder will report a record profit for 2006. Manila
Water Co. jumped after the utility reported earnings
that beat analyst estimates. SM Investments Corp.
declined after the stock advanced to a record last week.
The
Philippine Stock Exchange Composite Index gained 12.72,
or 0.4 percent, to 3,281.90 in
Manila,
its highest close since March 10, 1997. The measure has
climbed 3.8 percent over the past six sessions, matching
a similar winning streak last month, and is up 10
percent so far this year.
Philippine lawmakers last week approved a P1.13-trillion
budget for this year, compared with an authorized
P955-billion disbursement in 2006. The higher amount
will allow the government to build more infrastructure.
“The
government has signaled spending,” Ravelas said. “We
need infrastructure to support growth of at least 6
percent.”
DMCI,
the nation’s largest construction company by market
value, gained 10 centavos, or 1.3 percent, to P7.70,
after gaining 10 percent last week. Holcim Philippines,
the nation’s largest cement maker, added 10 centavos, or
1.3 percent, to P8.10, rebounding from 4.8-percent loss
last week.
First
Philippine Holdings Corp., which may bid for the state’s
tollroad projects and power plants, rose P1, or 1.3
percent, to P77. Benpres Holdings Corp., owner of First
Holdings, gained 30 centavos, or 9.8 percent, to P3.35,
its biggest gain since January 4.
Ayala
Land,
the nation’s largest builder, rose 25 centavos, or 1.5
percent, to P17.50.
Manila Water, which services the eastern half of the
Philippine capital, jumped 60 centavos, or 6.5 percent,
to P9.90, its biggest gain since November 30.
The
utility firm said after trading closed February 2 that
its profit last year increased 19 percent to P2.39
billion from a year earlier as sales reached a record
and leakages declined to the lowest ever. Manila Water’s
net income exceeded the P2.3-billion average of six
analysts’ forecasts compiled by Thomson Financial.
“We
think that there is room for accumulating Manila Water
again,” said Joe-an Alitagtag, analyst at Philippine
Equity Partners Inc. He upgraded the stock to ‘buy’ from
‘hold,’ forecasting the share price will rise to P11 in
the next 12 months.
Ayala
Corp., which holds stakes in both Manila Water and Ayala
Land, added P5, or 0.8 percent, to P660, its highest
ever. The company is the nation’s third-largest by
market value.
SM
Investments, owner of the nation’s largest shopping mall
operator, declined P2.50, or 0.6 percent, to P390, after
jumping to a record on February 2. SM’s 14-day relative
strength index, a ratio of the changes in its share
price in the previous two weeks, was more than 70,
indicating to some analysts the stock is about to
decline.
Shares worth P3.74 billion were traded, 28 percent more
than the six-month daily average. Gainers beat losers 69
to 35, with 56 stocks unchanged in the broader market.
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