Philippines share prices closed 0.3 percent higher on Monday in listless trading led by smaller company and mining shares, dealers said. Investors seemed to be waiting for fresh clues about stock market prospects from Wall Street after last week's surprisingly bold cut in US interest rates, they said.
The composite index finished up 10.72 points to 3,434.45 after trading in a narrow range of 3,423.73 and 3,441.34. Gainers outnumbered losers 66 to 45, while 54 stocks were unchanged. Volume traded was 5.9 billion shares worth 3.3 billion pesos (73 million dollars).
The market was consolidating, with investor interest in some areas, particularly mining stocks, keeping it in the black, said Rommel Macapagal of Westlink Global Equities. Another expert said that there were still lingering concerns about the prospects for equities despite the sharp 50 basis points cut in US interest rates.
"Investors want to figure out if that move will prevent the US economy from slipping into a recession or if it will fan inflation," said Ron Rodrigo of Unicapital Securities.
Index leader Philippine Long Distance Telephone Co added 5.00 pesos to 2,805 pesos. Property developer Ayala Land Corp gained 25 centavos to 15.25 pesos after reports that the company would launch its biggest project so far, a township in an economic industrial zone south of the Makati financial district. Mall operator SM Prime Holdings Corp gained 25 centavos to 15.25 pesos.
SM Prime announced Friday that it was in talks with the government for a possible investment in a railway project in the Philippine capital. Surging gold prices helped mining shares to post some of the day's biggest gains.
"Investor focus has shifted to mining stocks where potential yields are higher," said Westlink's Macapagal. Philex Mining, the nation's biggest miner by market value, rose for the fourth straight session, gaining 20 centavos to 7.60 pesos. San Miguel Corp A shares shed 1.0 peso at 60 while the B shares were unchanged at 61.
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