Hopes of strong earnings and overseas expansion by Philippines telecoms firms drove Manila stocks to their highest close since February 2000 on Monday, traders and analysts said.
The main index finished 3.6 percent or 64.35 points higher at 1,851.60 points, led by strong gains in dominant phone firm PLDT and second-ranked Globe Telecom Inc.
The market is up 28 percent so far this year, making it one of Asia's top performers.
Analysts said investors cheered newspaper reports on Monday that PLDT's mobile unit Smart Communications Inc would start providing services to thousands of Filipinos in Singapore.
Several newspapers quoted company sources as saying that PLDT unit Smart Communications was set to sign an agreement with Singapore's number two cellular operator MobileOne to provide cheaper services to 85,000 Filipino mobile users in Singapore.
Smart said in statement on Monday that it was examining ways to expand its services to countries with large Filipino communities, but did not confirm it was in talks with MobileOne.
"Discussions with other carriers are still in the exploratory stage and it is premature at this point for us to discuss this matter in any detail," the statement said.
Philippine Long Distance Telephone Co (PLDT), a quarter-owned by Hong Kong's First Pacific Co Ltd, ended 3.17 percent or 45 pesos higher at 1,465 pesos, after peaking at a year-high of 1,470 in mid-trade.
ATR Kim Eng telecoms analyst Martin Enrile said PLDT still looked cheap compared to its earning potential.
PLDT has said it expects net profit to reach 22 billion pesos in 2004, nearly double the previous year's 11.2 billion pesos due to strong mobile revenues.
"Looking at the way Smart is expanding overseas, it's innovating beyond the level of its competitor. The market is looking at this positively," Enrile said.
"We're also looking at higher profit of 1.1 to 1.2 billion ($19.6 million to $21.3 million) pesos for PLDT's other mobile unit Piltel. That's a far cry from losses of 3.35 billion pesos in 2003."
Other telecom stocks were lifted by expectations of strong third-quarter earnings results later this month. PLDT's smaller mobile phone unit Pilipino Telephone Corp (Piltel) jumped 5.45 percent or 15 centavos to 2.90 pesos.
Smart's chief rival Globe Telecom Inc, which is jointly owned by conglomerate Ayala Corp and Singapore Telecommunications, rose 4.91 percent or 55 pesos to 1,175 pesos.
Value turnover rose to 1.66 billion pesos from Friday's 973.3 million pesos, as gainers beat losers 85 to 8. SM Prime Holdings Inc, the country's largest mall developer with 18 shopping centres nation-wide, surged 6.06 percent or 40 centavos to 7 pesos.
Bank of the Philippine Island, the country's second largest lender, ended 4.35 percent or 2 pesos higher at 48 pesos.
Ayala Corp, the country's largest conglomerate with interests in property, banking, and telecommunications, rose 3.12 percent or 20 centavos to 6.60 pesos.
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