Philippines share prices closed 0.76 percent higher on Thursday, boosted by overnight gains on Wall Street and the strength of the peso as foreign investors welcomed signs the country's fiscal position is improving, dealers said.
They cautioned, however, that the market looks to be in overbought territory after its advance to an eight-month high earlier this week. The Philippine Stock Exchange composite index rose 15.90 points to 2,119.65 after trading between 2,103.10 and 2,121.52. Volume was 358 million shares worth 1.0 billion pesos (18.8 million dollars).
The broader all-shares index advanced 7.92 points to 1,280.60. Gainers beat losers 48 to 19, with 54 stocks unchanged.
The peso extended its rise against the dollar, trading at 54.224 as of mid-day. It briefly touched a high of 54.17, its best intra-day level since May 13 this year when it hit 54.16. "The US market's strong performance inspired buying in Philippine equities as well," said Jose Vistan of AB Capital Securities.
Dealers said upcoming changes in the composition of the main index on December 1 were also providing support as investors adjusted positions.
"Fund managers would want to position ahead of the index change (because) the market is expected to stage another rally once the more liquid and active stocks become part of the index," Vistan said.
The stock exchange announced early this month that the composition of the 33-company composite index will be changed on December 1, with five companies replacing those that do not meet liquidity requirements. Globe Telecom led the rise, closing up 15 pesos at 795. Rival Philippine Long Distance Telephone ended unchanged at 1,745 pesos.
Ayala Corp rose 2.50 pesos to 347.50 while unit Ayala Land gained 10 centavos to 9.70 pesos. San Miguel Corp A shares, limited to local investors, ended steady at 64 pesos. San Miguel B shares, available to local and foreign investors, also finished flat at 88.50 pesos.
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