Philippines stocks finished higher on Monday on the strength of telecom leader PLDT and second-ranked Globe Telecom, but traders said investors remained cautious due to worries over surging oil prices.
The Southeast Asian country, which imports nearly all its crude requirements, expects inflation in the year through August to come in at 6.1 to 6.3 percent from 6.0 percent in the 12 months to July, said Scholastica Cororaton, assistant director general of the National Economic Development Authority.
"There is no fresh news to perk up the market so investors just bought back issues that reported higher earnings in the second quarter like PLDT and Globe," said Joey Roxas, president at Eagle Equities Inc.
Philippine Long Distance Telephone Co, the day's top traded issue, rose 30 pesos or 2.36 percent to 1,300 pesos.
Shares of PLDT that changed hands on Monday accounted for 31 percent of total turnover at 140.82 million pesos ($2.53 million).
Globe Telecom, which is jointly owned by conglomerate Ayala Corp and Singapore Telecommunications, jumped 10 pesos or 1.1 percent to 915 pesos. Pilipino Telephone Corp, the country's third-largest mobile phone firm and a unit of PLDT, gained 3.92 percent or 10 centavos to 2.65 pesos.
The main index finished 4.20 points or 0.26 percent up at 1,594.83 points. In the broader market, losers outnumbered gainers 46 to 29, while the prices of 40 issues were unchanged.
Value turnover fell to 451.86 million pesos from 502.04 million pesos.
"Investors were cautious as can be gleaned from the drop in the value turnover. The rise in world crude prices and its impact on inflation remains a worry," said Astro del Castillo, managing director at First Grade Holdings.
Nymex crude oil futures soared to a record of $46.90 a barrel on Monday as concerns grew about possible unrest and disruption to oil supply as Venezuelans voted in large numbers on whether to recall President Hugo Chavez.
The market was also worried over Iraq's oil exports, which were running at half their normal rates on Sunday as a Shi-ite uprising prevented the re-opening of a main export pipeline.
Eagle Equities' Roxas said he expected the main index to find its immediate resistance at the 1,600 level.
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