Philippine stocks ended higher on Tuesday, after two days of losses, due to interest in select blue chips such as dominant telecoms firm PLDT and mall developer SM Prime Holdings Inc.
Philippine Long Distance Telephone Company (PLDT), a quarter owned by Hong Kong's First Pacific Company Ltd, jumped 20 pesos, or 2.21 percent, to 925 pesos.
Analysts said PLDT buying was inspired by a projection by the company chairman last Friday that the firm might exceed its 18-billion peso profit target in 2004 due to strong revenues.
SM Prime Holdings Inc, the country's largest mall developer with 17 shopping centres nation-wide, rose 3.64 percent, or 20 centavos, to 5.70 pesos.
SM Prime - controlled by Chinese-Filipino tycoon Henry Sy - said on Monday its net profit rose eight percent in 2003 to 4.20 billion pesos ($74.5 million). It also planned to open two new malls this year.
"This is a technical rebound. The investors chose stocks that have stories to tell and which should merit a little buy," said AB Capital economic analyst Jose Vistan.
The main index added 7.87 points, or 0.57 percent, at 1,396.02 points. The market has fallen 3.21 percent so far this year.
Turnover rose to 401.67 million pesos ($7.13 million) from Monday's 275.52 million pesos.
Vistan said he expects the market to rise again in the next session but political anxieties ahead of the May 10 national election will temper gains.
"Players are cautious ahead of the Easter holidays and political developments. We see the market moving within the 1,350 and 1,420 range," he said.
Pilipino Telephone Corp (Piltel), 45-percent owned by PLDT and the country's third-largest mobile firm, rose 2.41 percent, or four centavos, to 1.70 pesos.
PLDT's banner mobile firm Smart Communications Inc said last week it wanted to buy Piltel's debt from its creditors and buy the parent firm's 45 percent stake in the smaller affiliate.
Smart set a deadline of April 19 for the debt purchase.