MANILA (Thomson Financial) - Philippine shares were firmer in early trade on
Monday as investors sought out bargains when they returned from a four-day
Easter break, but trading was light ahead of a raft of US economic data.
"The local market caught up on the gains seen on Wall Street last Thursday,
which buoyed sentiment in Asian markets that remained open on Friday. But
investors remain uneasy ahead of a slew of US economic data coming out this
week," said Ron Rodrigo, research head at DBP-Daiwa Securities.
The 30-company composite index was last up 58.65 points or 2.1 percent at
2,876.23.
The all-share index gained 27.39 points or 1.6 percent to 1,763.09.
The Dow Jones industrial average rose 2.2 percent last Thursday following a
milder-than-expected drop in a regional manufacturing report. Wall Street was
closed on Good Friday.
Local financial markets were closed last Thursday and Friday for the Easter
break.
Most sectors traded higher, but mining stocks retreated after recent gains
as prices of commodities, including oil and gold, softened amid worries over the
global economy and a rebounding US dollar.
Philippine Long Distance Telephone Co, the country's biggest company by
market value, rose 55 pesos or 2.1 percent to 2,690 pesos.
Property developer Megaworld Corp advanced 10 centavos or 4.7 percent to
2.24 pesos.
First Philippine Holdings Corp was up 2 pesos or 5.9 percent at 36 pesos.
The power and infrastructure conglomerate will sell next month up to 50 million
preferred shares to raise up to 4.9 billion pesos for debt refinancing and
possible strategic acquisitions, a regulatory filing showed on Monday.
But sector leader Philex Mining Corp fell 50 centavos or 7.5 percent to 6.20
pesos.
Recent measures taken by the Federal Reserve, including last week's
75-basis-point cut in interest rate, have eased worries about the US credit
crisis, BPI Securities said in a note. But investors should resist the
temptation to buy aggressively, it said.
"Investors should remain cautious," said BPI, warning there could be more
bad news coming from major global financial institutions.
The US consumer confidence report is due out on Tuesday and new home sales
for February will be released on Wednesday. Durable goods orders for February
are also on tap Wednesday.
According to the median estimate of economists polled by Thomson
Financial/IFR, the market anticipates existing home sales to have fallen last
month compared with January.
(1 US dollar = 41.62 pesos)
enrico.delacruz@thomson.com
ed/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.
|