Philippines shares extend sharp gains

Philippines share prices closed 1.95 percent higher on Monday, extending sharp gains for a third consecutive session on aggressive follow-through buying of stocks with good earnings prospects, dealers said. The market is already technically overbought but further upside is possible given that the next major resistance level lies at 2,200 points, they said. The Philippine Stock Exchange composite index put on 41.41 points at 2,166.10, a fresh five-year high after trading between 2,124.69 and 2,171.45.
The broader all-shares index rose 28.97 points to 1,223.64. Gainers beat losers 85 to 25, with 43 stocks unchanged. Volume was 2.45 billion shares worth 2.8 billion pesos (50.90 million dollars) after Friday's 3.27 billion shares worth 1.41 billion pesos.
"The main index moving by leaps and bounds is making investors more optimistic about Philippine companies," said James Lago of Westlink Globe Equities Inc.
Investors are also shifting to equities from government securities as inflation rises while domestic interest rates remain largely steady, he added.
Philippine Long Distance Telephone Co (PLDT) ended up 25 pesos at 1,490 on sustained interest after announcing early last week a record 28 billion pesos net profit for 2004.
The rise of its New York-listed stock last Friday and its chairman Manuel Pangilinan's acquisition of more of the company's shares further boosted interest in the stock on Monday, dealers said.
Apart from PLDT, property stocks took center stage Monday given the positive outlook for the economy and the so-far stable interest rate environment.
"Investors are very bullish about the property sector given the economic recovery we've been seeing in the past couple of years," said Lawrence de Leon of Accord Capital Equities Inc.
"The stable interest rate environment in the country, helped by the peso's rebound against the US dollar, is also fuelling expectations of higher demand in the property sector this year," he added.
Belle Corp rose eight centavos at 1.64 pesos while SM Prime gained 40 centavos to 9.40 pesos.
Ayala Land Inc was up 30 centavos at 9.70 pesos while Bank of the Philippine Islands gained 50 centavos to 59.50 pesos.
San Miguel Corp B shares, available to foreign investors, rose one peso at 80 while the A shares were steady at 57 pesos.