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THE
Philippine stock market Thursday posted its biggest gain
in two weeks as investors, reassured by
better-than-expected earnings in the US, judged that
Wednesday’s decline was too steep.
Manila
Electric Co. (Meralco) and Philippine Long Distance
Telephone Co. (PLDT) led the advance among the nation’s
biggest companies, after profit reports from Oracle
Corp. and ConAgra Foods Inc. signaled that earnings in
the US may exceed forecasts.
Philippine stocks posted their biggest fall in two
months Wednesday on concerns demand for the nation’s
goods will weaken after home sales declined in the US,
its biggest buyer of exports and largest source of money
sent by overseas workers.
The
Philippine Stock Exchange index gained 57.79, or 1.6
percent, to close at 3645, after rising as much as 1.8
percent earlier Thursday. The measure, which slumped 1.9
percent Wednesday, Thursday posted its biggest advance
since a 2.4-percent climb on June 14.
“The
earnings coming out in the US speak of an economy that
is generally upbeat,’’ said Fitz Aclan, who helps manage
the equivalent of $3.78 billion at Banco de Oro-EPCI
Inc. “If the US is in good shape, then that will benefit
the
Philippines.’’
Megaworld Corp., the nation’s second-largest property
developer by market value, climbed after the builder
said it will pay a record cash dividend. JG Summit
Holdings Inc. rose after its unit Cebu Air Inc. said it
will fly to China this year.
Manila
Electric’s Class A shares, reserved for Filipinos in the
nation’s largest power retailer, jumped P2, or 2
percent, to P104. Its Class B shares, which have no
ownership restrictions, added P4, or 3.9 percent, to
P106, the highest since August 1999.
Oracle,
ConAgra
PLDT,
the nation’s largest company by market value, climbed
P50, or 1.9 percent, to P2670, its biggest rise in two
weeks.
Oracle,
the world’s third-largest software maker, said profit,
excluding acquisition expenses and other costs, in its
fiscal fourth quarter was 37 US cents a share, beating
the 35-cent average estimate of analysts surveyed by
Bloomberg. ConAgra, the seller of cooking oil, wheat and
fertilizer said fourth-quarter profit more than tripled
to $192 million, topping analysts’ estimates, on record
earnings from energy trading.
“Concerns of a slowdown in the
US
may not be warranted if earnings are higher than
expectations,’’ Aclan said. “Some investors are picking
up equities again.’’
The US
bought 15 percent of Philippine exports in April and was
the source for more than half of the $1.19-billion sent
home that month by Filipinos working overseas. Those
remittances fund spending on food, clothing, car, homes
and mobile phones.
Record
dividend
SM
Investments Corp., owner of the biggest shopping mall,
grocer and department store chains, gained P27.50, or
6.9 percent, to P427.50, its biggest advance since March
13. Robinsons Land Corp., the nation’s second-largest
shopping mall operator, climbed 25 centavos, or 1.3
percent, to P19.50.
Megaworld Corp., the nation’s second-largest property
developer by market value, climbed 10 centavos, or 2.5
percent, to P4.05, snapping a 6 percent, three-day
slide. The company said it will pay 2 centavos a share
in dividends, higher than last year’s 1.88 centavos a
share and the company’s first cash payout.
Shares
worth P6.65 billion were traded 31-percent more than the
six-month daily average. Gainers beat losers 100 to 23,
with 55 stocks unchanged in the broader market.
JG
Summit, which plans to hold an initial share sale for
Cebu Air, added 50 centavos, or 4.2 percent, to P12.50.
Cebu Air said Wednesday that it will fly to China and
Macau as early as September. JG Summit separately said
Thursday that it will need less money this year for
expansion: a maximum of P25 billion compared with the
P28- billion invested in 2006.
Manila
Water Co., serving the eastern half of the Philippine
capital, rose 25 centavos, or 2.1 percent, to P12.
Company president Antonino Aquino said the utility is
also looking at expansion opportunities in
Southeast Asia. |
