PHILIPPINE stocks Monday rose on expectation the US Treasury and the Federal Reserve may take steps to curb credit losses, helping avert recession in the Southeast Asian nation’s biggest overseas market for labor and goods.

SM Investments Corp., owner of the nation’s largest mall operator and second-largest bank, and Ayala Land Inc., the biggest Philippine property developer, led the advance.

Fed officials signaled more interest- rate cuts may be on the way, boosting Asian stocks on November 30, when the Philippine stock market was closed for a holiday. US Treasury Secretary Henry Paulson, who said on November 30 he was moving “fast’’ in seeking a solution to the subprime crisis.

‘Investors are going back into the market given the renewed confidence that the Fed and Treasury are going to take the necessary steps to avert further credit losses that could push the US economy into recession,’’ said Allan Yu, who helps manage the equivalent of $3.17 billion at Metropolitan Bank Trust Group.

The Philippine Stock Exchange index gained 48.33, or 1.4 percent, to close 3,626.88. Gainers outnumbered decliners 113 to 16, while 36 companies were unchanged in the broader market.

SM Investments gained P15, or 4.6 percent, to P342.50. Ayala Land rose 50 centavos, or 3.3 percent, to P15.75. Metropolitan Bank & Trust Co. added P2.50, or 4.6 percent, to P56.50.

Paulson, who led a meeting of bankers and regulators on November 29, is negotiating an agreement to fix interest rates on some troubled loans to stem a wave of foreclosures that threatens to drive the US economy into recession next year. The US accounted for 18 percent of the Philippines’ exports in 2006 and about half of the money sent home by Filipinos working overseas.

The arrest of Sen. Antonio Trillanes and General Danilo Lim, who took over a hotel in Makati City on November 29 and called for President Gloria Arroyo’s ouster, also eased concern about political instability in the country, which capped gains in Philippine stocks last week, Yu said.

Trillanes and Lim took over the Manila Peninsula after walking out of his trial on coup charges. The two were arrested later the same day.

“The arrest means that the Trillanes escapade was nothing but a nuisance,” Yu said. “That provided relief to the market.’’

Manila Electric Co., the nation’s largest-power distributor, added P3, or 4.1 percent to P75.50. PNOC-Energy Development Corp., the largest geothermal-power producer, gained 20 centavos, or 2.9 percent, to P7.10.

Globe Telecom Inc., the second-largest Philippine mobile phone company by market value, rose P40, or 2.6 percent, to P1,560. Megaworld Corp., the second-largest Philippine developer by market value, added 10 centavos, or 2.6 percent, to P4.

Jollibee Foods Corp., the Philippines’ biggest fast-food company, increased P2, or 4 percent, to P51.50.

IPVG Corp., a software and Internet-content provider that’s expanding into call centers, gained 80 centavos, or 10 percent to P8.60, after the company offered to buy Los Angeles, California-based PeopleSupport Inc., a provider of business services, for $356 million.

LISTED information technology and outsourcing firm IPVG Corp. said it will wait until December 7 if US-based PeopleSupport Inc., a major player in the business process outsourcing industry, will accept its offer to buy them for $355 million in cash.

PLDT to be transformed into a ‘new firm’

PHILIPPINE Long Distance Telephone Co. (PLDT) is transforming itself into a new generation communications company. 

BENPRES Holdings Corp. and Lopez Inc. have acquired $43 million worth of debt held by Asia Infrastructure Fund, where they are coobligators, in line with a continued program to restructure financing agreements and retire loans.

SONY Ericsson expands its lineup of phone products—two from the Walkman line and another from its popular K-series product range.

PHILIPPINE stocks Monday rose on expectation the US Treasury and the Federal Reserve may take steps to curb credit losses, helping avert recession in the Southeast Asian nation’s biggest overseas market for labor and goods.