Philippines share prices closed 2.36 percent up to a seven-week high on Thursday in an extended celebration of the US Federal Reserve's larger than expected interest rate cut, dealers said. The composite index added 79.40 points to 3,442.38, off the day's peak of 3,446.69. It was the index's best finish since July 31, when it settled at 3,501.20.
The broader all-share index jumped 40.01 points to 2,156.39. There were 77 gainers and 29 decliners, while 53 stocks were flat. A total of 3.1 billion shares valued at 5.4 billion pesos (118.97 million dollars) changed hands. Jose Vistan of AB Capital Securities said there was initial hesitation to push prices higher because of fears the domestic political situation would again turn ugly after the son of a prominent ally of President Gloria Arroyo accused her husband of taking kickbacks from a telecommunications deal.
"But investors eventually realised that the situation isn't too bad," Vistan said. Market leader Philippine Long Distance Telephone, or PLDT closed 70 pesos higher at 2,830 after the dominant carrier announced job cuts that analysts said should boost profits.
Metropolitan Bank and Trust rose 1.50 pesos to 53 while Bank of the Philippine Islands added two pesos to 67.50. San Miguel A was steady at 60.50 while San Miguel B added 50 centavos to 61.50 pesos.