Philippines share prices closed 1.1 percent higher on Monday with investors returning to the market amid a sustained drop in crude oil prices, dealers said. The composite index added 28.09 points to 2,540.81. The all-share index rose 13.54 points to 1,594.43. Forty-seven issues advanced, 33 declined and 48 were unchanged.
Turnover fell to 1.75 billion pesos (39.7 million dollars) from 1.9 billion pesos on Friday. The peso traded at 44.018 to the dollar in the morning. "With inflation foremost on investors' minds right now, global oil prices will continue to dictate the market's direction," Rommel Macapagal of Westlink Global Equities told Dow Jones Newswires.
World oil prices turned higher in Asian trade on Monday, but the market still faces signs of slowing demand and rising supply, analysts said. New York's main contract, light sweet crude for September delivery, rose 45 cents to 123.71 dollars a barrel. It had hit record highs above 147 dollars earlier in July.
Macapagal said investors were looking ahead to what President Gloria Arroyo tells Congress and the nation at her annual state of the nation address later Monday. "They eagerly await her plan to tackle the inflation problem," he added.
Philippine Long Distance Telephone rose 1.6 percent to 2,495, while unit Pilipino Telephone added 5.2 percent to 8.10 pesos. Property issue Megaworld gained 1.4 percent to 1.46 pesos. Metropolitan Bank rose 4.4 percent to 36 pesos. San Miguel B jumped 3.5 percent to 44 pesos, while its A shares were unchanged at 42.50 pesos.