Bloomberg

PHILIPPINE stocks Tuesday rose the most in almost five months, rebounding from a four-day slide on speculation the US will limit losses from a housing slump.

Ayala Land Inc., Jollibee Foods Corp. and SM Prime Holdings Inc. led gains. Philippine Long Distance Telephone Co., also known as PLDT, advanced after the company said first-half profit grew 11 percent.

“Philippine fundamentals remain intact and the recent correction serves as an entry point for investors,’’ said Gilbert Lopez, head of research at the Manila-based unit of Credit Suisse Group. “Earnings prospects remain healthy.’’

The Philippine Stock Exchange index jumped 91.35, or 2.8 percent, to 3,348.34 at the close, the biggest gain since March 22. Monday’s close of 3,256.99 was the lowest since April 20.

Ayala Land, the largest Philippine developer, gained P1, or 7 percent, to P15.25, snapping a four-day, 16 percent slump. SM Prime, the No. 1 shopping mall operator, gained 25 centavos, or 2.4 percent, to P10.75. Jollibee, the nation’s largest fast-food company, added P3.50, or 7.5 percent, to P50.50, its biggest gain since March.

US shares had their biggest rally in four years Monday after Fannie Mae, the largest US home loan company, asked its regulator to raise the amount of mortgages it can hold to provide more liquidity to the market, a person with knowledge of the request said. A spokesman for Fannie Mae declined to comment.

The US buys about 16 percent of Philippine exports and accounts for more than half of the funds sent home by Filipinos working abroad. Those funds, which make up 10 percent of the economy, include spending on food, clothes, homes and mobile phones.

The main stock measure’s 14-day relative strength index, a ratio based on its changes in the past two weeks, was at 23 Monday. A level of 30 or less suggests to some analysts that stocks are poised to rise.

Megaworld Corp., the second-biggest builder by market value and which makes about 20 percent of its home sales to overseas Filipinos, added 15 centavos, or 4.7 percent, to P3.35.

Bank of the Philippine Islands, the largest lender by market value and one of the banks that service a large share of the funds sent home by Filipinos, gained P2, or 3.3 percent to P63.50. Metropolitan Bank & Trust Co., the biggest by asset, added P1.50, or 2.6 percent, to P58.50 following three straight weeks of declines.

“We have dropped so much in the past four days that a recovery naturally follows,’’ said Oliver Plana, head of sales at Asiasec Equities Inc. “Investors are still cautious because the U.S housing market has yet to stabilize.’’

The Philippine Stock index rose as much as 3.2 percent earlier Tuesday. The measure has advanced 12 percent this year and closed at a record 3,791.42 on July 5.

PLDT, the largest company by market value, added P60, or 2.3 percent, to P2,670. First-half profit rose to P17 billion partly due to higher foreign exchange gains, the company said.  Full-year core profit, or net income excluding one time-gain, may exceed P33 billion, the Manila-based phone company said.

Gainers outnumbered losers 126 to 12, with 29 stocks unchanged in the broader market. Shares worth P4.78 billion were traded.

SINGAPORE—San Miguel Corp. (SMC), Philippines’ largest food and drink maker, is seeking a $1.2 billion loan as it expands into mining and other industries, two bankers arranging the financing said.

US broker gives new business to RP

E*TRADE Financial Corp., one of the largest US online discount stockbrokers that cater mainly to retail clients, has outsourced its customer services to the Philippines, the office of Rep. Joseph A. Santiago said Tuesday in a statement.

PHILIPPINE Long Distance Telephone Co. (PLDT) is again revising its core net income target this year from P33 billion to P34 billion on the heels of the firm’s first-half results that rode on its mobile-phone business and election-related spending.

PHILIPPINE stocks Tuesday rose the most in almost five months, rebounding from a four-day slide on speculation the US will limit losses from a housing slump.

Shares of stock in a corporation are personal property, and it is well settled that the owner, as in the case of other personal property, has an inherent right, as incident of his ownership, to sell and transfer the same at will, except insofar as the right may be restricted by the charter of the corporation or the general law, provided the transfer is in good faith, and to a person capable of assuming the obligations of a stockholder (12 Fletcher Cyc. Corp. Section 5452).