Philippines share prices closed 0.8 percent higher on Thursday, reversing early losses on gains in Petron Corp and bargain hunting in blue chips, dealers said. The composite index put on 21.19 points to 2,760.62, off a high of 2,762.41. The all-share index was up 11.28 points at 1,723.68.
There were 50 advancers and 44 decliners, while 55 issues were steady. Turnover shrank to 2.9 billion pesos (69 million dollars) from Wednesday's 4.2 billion pesos. The peso traded at 42.60 to the dollar. Petron advanced after local conglomerate JG Summit Holdings offered to buy the Philippine government's 40 percent stake in the oil refiner.
Its offer is at a higher price than that offered by London-listed Ashmore Group for Saudi Aramco's 40 percent stake in Petron. Both offers are also much higher than Petron's current market price.
Trading was lacklustre at the opening bell, on fears about inflation after oil prices climbed to a fresh record near 124 dollars a barrel overnight. "The market staged a technical rebound from oversold levels," said Nestor Aguila of DA Market Securities.
"But the lean volumes mirrored investors' cautious outlook for the market given speculation that oil prices may jump to 200 dollars a barrel." "While the market may have seen the worst of the US credit crisis, it hasn't seen the worst of record oil prices," added Astro del Castillo at First Grade Holdings.
Philippine Long Distance Telephone rose 1.0 percent to 2,590 pesos. JG Summit advanced 4.4 percent to 9.60 pesos. Bucking the trend, Manila Electric Co closed 3.6 percent lower at 67.50 pesos. San Miguel A fell 1.1 percent to 46 pesos. Its B shares were steady at 49 pesos.
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