Philippine stocks closed slightly higher on Friday, with investors buying firms that are expected to report better earnings in the second quarter like dominant phone firm PLDT and fast-food giant Jollibee, traders said.
However investors remained concerned over the government's ballooning budget deficit and the impact of a likely increase in US interest rates next week. The main stock index gained 5.74 points, or 0.36 percent, to 1,579.51 points, but losers outnumbered gainers 32 to 26, with 44 issues unchanged.
Turnover dipped to 486.9 million pesos ($8.7 million) from 489.45 million. "Investors are accumulating stocks that are expected to report good earnings in the second quarter," Astro Del Castle, managing director at First Grade Holdings, said.
Philippine Long Distance Telephone Co, a quarter owned by Hong Kong's First Pacific Co Ltd, gained 15 pesos or 1.33 percent to 1,140 pesos. Jollibee Foods Corp, the fast food firm that outsells McDonalds and KFC in the Philippines, rose 50 centavos or 2.04 percent to 25 pesos.
The company said last week that spending related to the May 10 elections helped it score "very strong" profits in the second quarter. Jollibee posted a 41.6 percent jump in first quarter net income from the same year-ago period to 382.13 million pesos.
Banco de Oro Universal Bank, the Philippines' seventh-largest private lender, rose 25 centavos, or 1.41 percent, to 18 pesos.
After the market closed, Banco de Oreo President Nester Tan told reporters his bank expected net income to jump 20 percent to 1.8 billion pesos this year from 1.5 billion in 2003.
B shares of Manila Electric Co, the country's largest power distributor, also gained 50 centavos or 1.69 percent to 30 pesos. "The market right now is relieved that the election is finally over," Jose Vistan, analyst at AB Capital Securities, said.
"However, the local market is not moving aggressively because of certain issues like the budget deficit. We also have a US Fed meeting next week, and the market expects US rates to be increased by 25 basis points."
Del Castle said he expected Manila's main stock index to trade between 1,570 and 1,600 points next week.
Comments
Comments are closed.