Philippines share prices closed 0.7 percent higher on Monday, buoyed by an improving economic outlook after the government completed a 1.5 billion dollar bond issue last week, dealers said. The composite index inched up 12.95 points to close at 1,997.83. The all-shares index put on 0.5 percent, or 6.42 points, at 1,262.10.
A total of 1.4 billion shares worth 1.5 billion dollars (31.6 million dollars) changed hands. Advancers led decliners 60 to 28, while 37 were unchanged. The peso traded at 47.45 to the US dollar. The success of Manila's bond issue last Wednesday meanwhile "is boosting market sentiment," said Nestor Aguila of DA Market Securities. "This technical rally may continue so long as the US market doesn't fall below 8,450 support," he said.
Also lifting the market Monday was expectations that the central bank will cut key interest rates later this month, traders said. Top traded Philippine Long Distance Telehone closed down 0.5 percent at 2,185 while conglomerate Ayala Corp added 2.7 percent to 230 pesos. Ayala Land Inc put on 2.8 percent to 7.30 pesos while Bank of the Philippine Islands added 2.5 percent to 41 pesos. San Miguel Corp A shares shed 1.2 percent to 40.50 while B shares lost 1.1 percent at 41.50.