Shares surge 34 pts as investors gobble up blue chips

Local share prices moved up as investors gobbled up oversold blue-chip stocks, sending the main index up 34.10 points or 2.27 percent to end yesterday's session at 1,539.31.

Reversing the selling spree over the past two weeks, the market was buoyed by bargain hunting on selected solid issues such as PLDT, Meralco, San Miguel, Ayala Land and Philippine National Bank. Technology and gaming stocks also rose, led by BW Resources, PhilWeb and Music Corp.

The stand-off in the hostage situation in Mindanao and concerns over the effects of the anticipated interest rate hike in the US were downplayed this time by investors, who took advantage of the cheaper valuation to accumulate stocks that have been heavily battered by the eroding market sentiment.

Even the fragile currency and mixed results in overseas market took a backseat to the long-term positioning stance. The peso continued to weaken against the dollar, closing 41.50 to the dollar to hit a new 19-month low yesterday.

Indicative of the broad-based buying spree, advancing issues outnumbered losing stocks, 57 to 38, while 38 other issues were unchanged. Likewise, value turnover surged back to healthier levels, breaching the P1-billion mark for the first time this month.

Except for the oil counter, all sectoral indices went up. The broader All-Shares index also gained 1.65 percent to close at 606.28.

PLDT was the market favorite with over 30 percent of total trade, gaining P20 to end at P795. The dominant telecommunications company disclosed it has increased its stake in satellite operator Mabuhay Philippines Satellite Corp. from 61 percent to 67 percent. The additional shareholdings were purchased from its cellular phone subsidiary Pilipino Telephone Corp.

Internet firm PhilWeb, meanwhile, was the best performing stock as it rose 30 percent to 15 centavos following its regional e-commerce joint venture -- TriWeb Asia Ltd. -- with Hong Kong-based investment banks e2-Capital AIA Capital.

San Miguel-B shares moved up 50 centavos to P52 after the conglomerate reported a 24-percent jump in net income to P1.54 billion during the first quarter.

In other corporate news, another Internet stock AJO.net said it has invested in three separate but related companies; incredibly EZ Corp., incredibly Fast Internet Co. Inc. and Chikka.com ltd.

AJO bought 10 percent of I-EZ, a British Virgin islands company engaged in providing Internet-related commerce and services. It has developed an on-line retailing business known as "e-Regalo.com." a premier gift-giving site.