Philippines shares jump

Philippines share prices closed 0.26 percent higher on Wednesday to hit their best levels in about a month as investors were cheered by news that inflation had slowed in June, dealers said.
At the same time, they said the gains were limited after North Korea's test launch of up to six missiles was widely criticised, stoking concerns that political tensions could be on the rise in north-east Asia.
The composite index was up 5.86 points to 2,262.34, extending gains to a fourth straight day, after trading between 2,242.58 and 2,264.67. Volume was 2.96 billion shares worth 1.14 billion pesos (21.97 million dollars). The broader all-shares index gained 4.51 points at 1,406.82. Gains led losers 43 to 25, with 51 stocks unchanged.
The peso was at 52.705 to the dollar. Official figures earlier showed the June consumer price index rose 6.7 percent year-on-year after a gain of 6.9 percent in May. "A deceleration in inflation eases the pressure on the central bank to increase its benchmark interest rates," said Jose Vistan of AB Capital Securities. Last week, the central bank voted to keep its overnight rates unchanged even though the US Federal Reserve jacked up its benchmark rate anew.
Keeping rates unchanged gives investors no compelling reason to shift to fixed-income assets and at the same time encourages businesses to seek loans to fund expansion. "While the market ended in positive territory, buying sentiment has somewhat been dampened by what happened in North Korea," Vistan said, referring to North Korea's missile tests.
"Some investors have decided to take profits after the four-day rise. Investors are now a bit more defensive and cautious," said Mark Alan Canizares of Citiseconline.
Philippine Long Distance Telephone was down five pesos at 1,970 pesos following recent sharp gains while rival Globe Telecom added 15 at 970. Bank of the Philippine Islands rose 1.50 pesos at 52 while parent Ayala Corp gained five at 390 pesos.
Property firms fell as investors took profits on recent gains. Ayala Land was down 25 centavos at 12.25 pesos, Megaworld Corp shed four centavos at 1.46 pesos and SM Prime Holdings retreated 10 centavos to 7.80 pesos. San Miguel Corp saw its A and B shares remain unchanged at 65.50 and 71.50 pesos respectively.