Philippines stocks higher as oil prices fall

30 Oct, 2004

Philippines stocks closed higher for the fourth straight day on Friday, led by number two lender Bank of the Philippine Islands, as investors cheered a fall in global crude prices.
Opec president Purnomo Yusgiantoro said on Friday he expected oil prices to fall further as US crude stocks rose, good news for the Philippines which imports most of its crude requirements.
But analysts said gains were capped by mixed earnings results after second-largest phone firm Globe Telecom Inc said late on Thursday its third-quarter profit fell 34 percent as it paid debts, spent money on marketing, and lost out to competition from rival PLDT.
The main index jumped 11.54 points or 0.64 percent to 1,819.03 points. The index is up 26 percent so far this year. "News that oil prices continued to drop cheered players," said AB Capital analyst Jose Vistan.
BPI owned by Philippine conglomerate Ayala Corp and Singapore's DBS Group, rose 3.19 percent to 48.50 pesos, ahead of its earnings announcement later on Friday. Value turnover rose to 1.15 billion pesos ($20 million) from Thursday's 930.78 million pesos, as gainers beat losers 59 to 24.
Analysts said investors were also cautious ahead of a long weekend amid rumours of destabilisation moves against the government as lawmakers investigate reported massive corruption in the military.
November 1 is a public holiday in the Philippines and analysts expect the market to move sideways when it resumes trading next on Tuesday, with players awaiting more earnings reports.
Southeast Asia's largest food and beverage firm San Miguel Corp and PLDT are expected to announce their results on November 4, followed by the country's largest business group Ayala Corp on November 5.
"Should world crude prices continue their descent, momentum might continue to support barometers higher on hopes corporate earnings growth will be supported for the remaining leg this year," said stock brokerage firm 2TradeAsia.com in a client note.

Read Comments