Philippines share prices closed 1.82 percent higher on Tuesday, extending gains to a third day on the back of a supportive Wall Street performance overnight, dealers said. Investors picked up bargains but trading volumes remained light, suggesting many were still cautious following recent turmoil on global markets, they said.
The composite index added 57.00 points at 3,181.96 after trading between 3,124.96 and 3,185.68. The broader all-share index rose 35.29 points or 1.76 percent to 2,045.77. Gains led losers 81 to 32, with 46 stocks unchanged. Turnover was 4.4 billion shares worth 3.67 billion pesos (76 million dollars). "It's a continuation of the technical bounce," said Nestor Aguila of DA Market Securities.
"The market is still consolidating and building a base above the 3,000 points level before another major rally, possibly after the Easter break in early April or after the mid-term elections in May."
Another rally will be driven by the positive long-term outlook for the Philippine economy, with growth likely boosted by increased government spending on infrastructure, he said. Last week, the government presented nearly 83 billion pesos worth of infrastructure projects for possible funding at an annual meeting with creditors and the private sector. The biggest project, worth 35.5 billion pesos, involves the extension of an elevated railway for mass transportation in metropolitan Manila.
Aguila noted there was speculative interest particularly in cement companies on Tuesday, with these firms expected to benefit from the huge government spending on new roads, bridges and school buildings.
Southeast Asia Cement Holdings rose 10 centavos to 1.78 pesos while Holcim (Philippines) gained 30 centavos at 8.70 pesos. Among big stocks, conglomerate SM Investments Corp advanced 25 pesos to 375 pesos. Philippine Long Distance Telephone rose 40 pesos to 2,400. Food and beverage firm San Miguel Corp's A-shares were steady at 62 pesos while its B-shares fell 1.50 pesos to 70.
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