Market inches up on last minute buying of GFIs

Share prices finished higher yesterday on what traders said was possible last-minute buying by government financial institutions.

The 30-company Philippine Stock Exchange Index rose 7.65 points, or 0.5 percent, to 1,456.65.

Gainers led decliners 39 to 35, while 37 issues were unchanged.

"The market had a strong finishing kick," said Wise Securities Philippines economist Jose Vistan, noting the main index had been declining in late trading before strong demand for select blue chips propelled it higher at the close of the session.

Vistan said it was possible that government financial institutions accumulated some oversold issues to fill their investment portfolios.

Boosting the index were blue chips Ayala Corp., which closed up 30 centavos at P7.40, and SM Prime, which rose 15 centavos to P5.10.

"The steady appreciation of the peso against the dollar also helped ease worries in the market, though it is still not taken as a reason to buy stocks yet," Vistan said.

Vistan said investors remained cautious ahead of the impeachment trial of President Joseph Estrada scheduled for December.

Estrada has denied charges that he took millions of dollars in payoffs from illegal gambling operators and tobacco taxes.

Vistan said the index will likely stay range-bound – between 1,400 and 1,500 points – from now to December, as investors closely monitor the impeachment trial.

Other active stocks included Philippine Long Distance Telephone Co., which fell P5 to P840. Filinvest Land fell six centavos to P1.24, and Belle rose six centavos, or 8.1 percent, to 80 centavos.

Philippine Seven Corp., the local franchisee of the 7-Eleven convenience store chain, made up 10.4 percent of trade as its price fall 10 centavos to P6.40 after the company crossed last week a 50.4-percent block in favor of new controlling owner President Chain Store Corp., PEC’s counterpart in Taiwan.

President Chain has put up a tender offer to the remaining PSC shareholders for the previously agreed price of P8.30 per share as stated under the Securities Regulation Code. The tender offer shares will be lodged under a newly-formed subsidiary President Chain (Labuan) Holdings Ltd. incorporated in Malaysia.

On the other hand, among the heavyweight stocks that made gains were Globe Telecom’s Philippine Deposit Receipts (PDRs). Fairmont Holdings, Equitable PCI Bank, Ayala Corp., Ayala Land, Manulife and SM Prime Holdings.