MANILA (Thomson Financial) - Philippine shares were firmer halfway through
Monday's session led by market heavyweights Philippine Long Distance Telephone
Co. (PLDT) and Globe Telecom Inc. on hopes their quarterly results, to be
released this week, will show continued healthy growth.
The market's upturn also mirrored easing concerns about the U.S. economy
following Friday's better-than-expected April payrolls report, while the weak
volume reflected continuing caution amid persistent concerns about inflation.
At 10.28 a.m. (0228 GMT), the 30-company composite index was up 45.67 points
or 1.7 percent at 2,768.62.
The all-share index rose 13.67 points or 0.8 percent to 1,717.20.
PLDT, which is due to announce its results on Tuesday, rose 2.6 percent to
2,615 pesos. Globe, which will release its numbers not later than Wednesday,
advanced 1.5 percent to 1,335 pesos.
"All eyes are on these two companies as well as other companies such as
Meralco and the Aboitiz Group," said Prince Anthony Yeung, analyst at AB Capital
Securities.
"Their performances in the first quarter will give a glimpse of how the
local economy fared during the months of January to March. Rosy earnings reports
might just be what investors are waiting for to signal that the stock market is
going to go up and not down."
But Manila Electric Co. (Meralco) fell 1.9 percent to 79.50 pesos. Local
media reported over the weekend President Gloria Arroyo's renewed call for the
power distributor to lower its rates.
Meralco is expected to release its first-quarter results later Monday.
Aboitiz Equity Ventures Inc., a family-owned conglomerate, was steady at
6.50 pesos, rebounding from early weakness. The stock fell 1.5 percent in early
deals after unit Union Bank of the Philippines reported Friday a 63-percent drop
in net profit for the first quarter from a year earlier due to unfavorable
market conditions and in the absence of one-off gains.
Union Bank was steady at 32.50 pesos.
"Rising inflation will continue to be a pressing problem for investors.
Investors will be eagerly awaiting the inflation level for April" due out on
Tuesday, AB Capital's Yeung said.
Annual inflation likely accelerated to a two-year high in April and is
expected to keep rising in the next two months, dimming chances that the central
bank would resume cutting interest rates, economists have said.
Inflation last month probably jumped to 6.8 percent, according to a Thomson
IFR Markets poll of economists. That would be the highest reading since February
2006 when inflation stood at 7.6 percent.
($1 = 42.4 pesos)
enrico.delacruz@thomsonreuters.com
ed/zr
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|