Philippine stocks closed higher on Tuesday, supported by growing expectations of strong second-quarter profit growth at telecoms PLDT and Globe Telecom, traders said. The Philippine main index ended 17.64 points or 1.14 percent higher at 1,560.90 points.
Philippine Long Distance Telephone Co, the country's biggest phone operator, gained 20 pesos or 1.65 percent to 1,230 pesos. Its turnover of 131.35 million pesos ($2.345) accounted for more than a third of total market value. PLDT, a quarter owned by Hong Kong's First Pacific Co Ltd, announces its first-half earnings on August 3.
Globe Telecom Inc, jointly owned by conglomerate Ayala Corp and Singapore Telecommunications, rose 0.61 percent or 5 pesos to 825 pesos.
Telecommunications firms are widely expected to announce that election-related spending on mobile phones around the May 10 national polls pushed second-quarter earnings higher. PLDT is targeting a net income of up to 18 billion pesos this year, versus 11.2 billion pesos in 2003. Globe Telecom has said it expects 2004 net income to reach 15 billion pesos against last year's 10.34 billion pesos.
Pilipino Telephone Corp (Piltel), a unit of PLDT, also gained two centavos to 2.22 pesos. Ayala Land Inc, the country's largest property developer, rose 3.77 percent to 5.50 pesos on hopes its earnings in the second quarter would benefit from the upturn in the country's long-dormant real estimate market.
The firm is expected to announce its first half earnings on July 29.
The B shares of Manila Electric Co, the country's largest power distributor, went against the upward trend as it lost 50 centavos to 27.50 pesos after the firm said that while its profits nearly tripled in the third quarter, they were not enough to meet huge debt repayments.
In the broader market, gainers outpaced losers 39 to 28 while there were 57 stocks unchanged.
Turnover improved at 362.88 million pesos from 313.69 million pesos on Monday.
Traders pegged the index resistance at the 1,600 level. Investors are expected to take profits at this level, they said.
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