Philippines share prices closed 0.92 percent higher on Friday, lifting the main index to a record level as investors ignored Wall Street's retreat and focussed on the domestic economy, dealers said.
The composite index added 31.49 points to 3,449.18, erasing the previous closing record of 3,447.60 set on February 3, 1997, shortly before the Asian financial crisis. The index traded between 3,457.93 and 3,419.40. It was the third straight session that the key index posted a record intraday high. The broader all-share index jumped 17.88 points to 2,200.25.
There were 62 gainers and 40 losers with 57 unchanged. A total of 3.1 billion shares worth 9.7 billion pesos (207.71 million dollars) were traded. "Market sentiment was buoyed by good economic indicators and corporate results. Also, election-related concerns are out of the way," said Gomer Tan of Regina Capital Development Corp.
At the spot currency market, the peso rallied to 46.65 against the dollar in morning trade, a new six year high, after the central bank said Thursday that foreign portfolio investments in April rose 40 percent from a month earlier to 243.1 million dollars. The counting of votes after last Monday's mid-term elections continued with the opposition poised to gain control of the Senate, based on initial tallies.
President Gloria Arroyo's allies, however, are expected to keep their comfortable majority in the House of Representatives. "The victory of the overwhelming majority of candidates sympathetic to the administration shows a vote for political stability and economic reform," Arroyo told an investor conference Thursday, referring to results for the House as well as local government posts.
Strong interest in Manila Electric, or Meralco, sustained the market's momentum. Meralco's A-shares, which only Filipinos can buy, jumped nine pesos to 87 pesos. Its B shares, which are open to foreign investors, rose eight pesos to 87.50. Ayala Corp gained 10 pesos to 520. Philippine Long Distance Telephone, or PLDT, advanced 15 pesos to 2,540. San Miguel A rose 1.50 pesos to 76.50, but its B shares fell two pesos to 80.