Philippines shares rise

Philippines share prices closed 0.20 percent higher on Friday, lifted by another record breaking Wall Street performance overnight the release of benign inflation figures for April, dealers said. The composite index was up 6.95 points at 3,278.48 after trading between 3,263.20 and 3,293.05.
The broader all-share index gained 10.11 points to 2,089.67. Gainers beat losers 52 to 40, with 67 stocks unchanged. Turnover was 1.8 billion shares worth 3.8 billion pesos (79.92 million dollars). The consumer price index inched up 2.3 percent year-on-year in April compared to 2.2 percent in March, well within market expectations, ruling out the possibility of an interest rate hike in the near term.
"There was a recovery in interest rate-sensitive issues such as property and banking stocks which were recently battered over worries that a higher inflation rate could push up interest rates," said Jose Vistan of AB Capital Securities.
Grace Cerdenia of 2TradeAsia.com, said despite the slight uptick in consumer prices last month, inflation remains benign which is supportive of the central bank's monetary policy.
Ron Rodrigo of Unicapital Securities said he expects the market to retest the 3,300 points resistance and consolidate at that level as soon as jitters over escalating violence in the run-up to the May mid-term elections fade.
"The market will again start focusing on fundamentals, depending on the outcome of the elections. Right now, the economic fundamentals are taking a backseat with politics weighing down the market," Rodrigo said.
Among the day's winners were property stocks, led by Megaworld which gained 15 centavos to 3.55 pesos while upscale property developer Belle edged up four centavos to 1.32 pesos.
Other advancers include Metropolitan Bank which rose 50 centavos to 60 pesos and ABS-CBN Broadcasting which gained one peso to 28.50 pesos. Ayala Corp fell five pesos to 595 pesos while Philippine Long Distance Telephone lost 20 pesos to 2,520 pesos. Globe Telecom was up five pesos at 1,220 pesos. San Miguel A shares gained 50 centavos to 64.50 pesos and its B shares advanced 50 centavos to 73.50 pesos.