Philippines share prices closed 0.94 percent higher on Thursday amid hopes that the central bank would trim its policy rates, dealers said. Higher import growth in November also spurred buying interest because this signalled continuing brisk exports in the coming months, they said.
The composite index added 30.44 points to 3,275.19. It moved between 3,254.53 and 3,292.84. The broader all-shares index was up 17.80 points at 2,016.05. Gainers beat losers 76 to 34, while 65 stocks ended unchanged. Volume was 2.3 billion shares worth 4.8 billion pesos (97 million dollars).
Dealers said strong fund inflows chased select blue chips led by market heavyweight Philippine Long Distance Telephone Co (PLDT) and SM Investments Corp. "There's too much money chasing too few index issues at the moment. Foreign investors are evidently very bullish about the Philippines, and their interest extends to issues outside of the main index," said James Lago of Westlink Global Equities Inc.
"Expectations of a cut in the central bank's key interest rates drove investors to buy stocks. Positive developments in several corporates also inspired buying, with the play focused on select stocks," said Chelsea Dipasupil at RCBC Securities Inc Dealers said investors were optimistic the central bank would cut its key interest rates when its monetary board meets later Thursday.
They said a rise in the country's merchandise imports in November also fuelled buying. The National Statistics Office said imports in November grew 13.4 percent from a year earlier to 4.508 billion dollars, after rising 12.5 percent in the previous month, driven mainly by increased orders for electronics and fuel products.
"November imports were much stronger than expected, which produced a wider-than-expected trade deficit," said Tim Condon, of ING Financial Markets Research. "The fastest pace of import growth in three months is a hopeful sign for future exports; two-thirds of imports are used in electronic exports," he said.
Top-traded PLDT finished 55 pesos higher at 2,795. Rival Globe Telecom Inc rose 10 to 1,295. Ayala Corp was up 5.00 pesos at 625.00. Manila Electric Co's A shares rose 2.00 to 71.50 while its B shares advanced 1.00 to 72.50.
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