Market jumps 56 pts on broad-based buying

Share prices flashed green lights on the trading floor yesterday, pushing the main index to completely recover lost ground from the bomb scare a week ago and post a hefty 55.51-point gain -- its biggest advance in several weeks.

For the fourth straight trading day, the market chalked up gains pulled by broad-based buying in almost all counters except the languishing oil sector. The Phisix closed 3.89 percent higher at 1482.77, just a shade above its level over a week ago before the market was bombed down to a 19-month low.

The noticeable shift in investor sentiment was also reflected in most other Asian markets, although Indonesia defied this general trend. In New York, Philippine stocks ended weaker last Friday as the Dow Jones and Nasdaq indices stumbled slightly ahead of a long weekend. The US markets will be closed for the Memorial Day this Monday (Tuesday in Manila).

The positive mood had rubbed off on the currency trading floor too, with the peso firming up to P42.624 to a dollar at midday.

The start of formal talks between government negotiators and the Muslim extremist group Abu Sayyaf provided the market a glimmer of hope for a possible resolution to the armed conflict and hostage crisis in Mindanao, which has brought the Philippines to international attention.

The arrest of several suspects, with alleged links to the Muslim separatists, in the series of mall bombings in Metro Manila has likewise calmed down fears, although building and premises security in most establishments have not eased a bit.

An overwhelming 74 stocks posted gains, as against only 15 losers and 20 unchanged issues. Leading the gainers were Fil-Estate Land, up 25 centavos or 46 percent to 79 centavos, despite a report that it is at odds with the Philippine National Bank over a P350-million loan facility.

Showing the most vigor were other property-related stocks; C&P Homes, DMCI Holdings, SM Prime Holdings, Filinvest Land and Ayala Land. The property index advanced a pronounced 12.9 percent in yesterday's trading.

Meanwhile, blue- chip stocks ended generally higher except for PLDT, which shaved off P10 to P740. San Miguel shares went up to P51 and P51.50 for its "A" and "B" shares, respectively while the soon-to-be-sold PNB, which will be holding its stockholders meeting today, added P1 to P66.