Philippines share prices closed 1.38 percent higher on Monday, extending gains to fresh five-year highs above 2,000 points as investors bought into companies expected to announce strong results for 2004, dealers said. They said the government's decision to lower the 2005 budget deficit target on expectations of improving revenues also boosted investor sentiment.
Investors appeared to shrug aside the weekend news of Finance Secretary Juanita Amatong's departure citing the pressure of having to oversee the government's efforts to raise revenues to avoid an impending fiscal crisis.
The Philippine Stock Exchange composite index gained 27.41 points to 2,015.25 after trading between 1,983.60 and 2,020.89.
It was the main index's best finish since February 10, 2000 when it closed at 2,020.15.
The broader all-shares index fell 7.68 points to 1,168.80.
Gainers beat losers 78 to 33, with 36 stocks unchanged.
Volume totalled 8.02 billion shares worth 1.98 billion pesos (35.55 million dollars) from 5.29 billion shares worth 1.66 billion pesos on Friday.
"Investors are riding on the wave of recent positive economic indicators and a vibrant corporate outlook. It's just so hard to stop a train full of money," said Astro del Castillo of First Grade Holdings Inc.
However the benchmark index's run-up was likely to take a pause once it reached 2,030 points, del Castillo said.
"Eventually, reality check will come along. Profit-taking is due," he said.
Metropolitan Bank and Trust Co was the most actively traded stock, up one peso at 31 pesos.
Shopping mall operator SM Prime Holdings was down 20 centavos at 8.40 pesos. Ayala Land Inc ended unchanged at 8.50 pesos, while parent Ayala Corp gained 10 centavos to 8.30 pesos.
Philippine Long Distance Telephone Co (PLDT) rose 15 pesos to 1,450 pesos, while rival Globe Telecom was up 15 pesos at 950 pesos. PLDT's mobile phone unit, Pilipino Telephone Corp gained five centavos to 3.90 pesos. San Miguel Corp B shares, available to foreign investors, fell one peso to 77.50 pesos while San Miguel A, limited to local buyers, ended unchanged at 58.50.