Philippines shares closed 2.09 percent higher on Thursday due to the upturn on Wall Street and on expectations that the central bank will cut key interest rates later, dealers said. The composite index rose 42.17 points to 2,064.66 while the all-shares index gained 1.38 percent to 1,338.86. There were 85 gainers against 24 losers and 29 that were unchanged.
Turnover amounted to 2.087 billion shares worth 2.641 billion pesos (55.23 million dollars). The local currency traded at 47.658 to the dollar on Thursday morning from its close of 47.81 on Wednesday. Analysts said higher dollar remittances from the Philippines' estimated nine million workers abroad also lifted sentiment. Manila on Wednesday said remittances rose 4.9 percent to 1.32 billion dollars in February from 1.258 billion dollars the previous year.
"Remittances were a positive surprise since everyone was expecting a decline. It bolstered sentiment since remittances are a factor that drives the economy," Ricardo Puig of ATR-Kim Eng Securities told Dow Jones Newswires. He said the index may head for the 2,100 resistance Friday if the central bank cuts interest rates later Thursday. Energy Development Corp rose 7.6 percent to 3.55 pesos while Philippine Long Distance Telephone Co gained 0.7 percent to 2,160 pesos. Metropolitan Bank and Trust Co rose 6.77 percent to 31.50 pesos as Ayala Corp surged 2.79 percent to 221 pesos.