Index nears 4-month high on Dow rally, tax report

Share prices closed up 1.14 percent yesterday, pushing the main index to near four-month highs as investors cheered further gains on Wall Street, dealers said.

News that Philippine tax collection targets were exceeded last month, along with encouraging results of the government’s latest debt swap offer also spurred buyers, they said.

The composite index rose 27.05 points to 2,406.48 after trading between 2,379.43 and 2,408.54. This was its best finish since May 17 when it settled at 2,463.57 just before global markets fell sharply on concerns about the outlook for inflation and interest rates.

The broader all-shares index rose 12.68 points to 1,484.83.

Gainers led losers 63 to 32, with 45 stocks unchanged.

Turnover was 3.1 billion shares worth P1.3 billion.

"Investors took their cue from overseas markets and the latest positive news on the government’s fiscal performance," said Astro del Castillo of First Grade Holdings.

He said window-dressing activities may have also begun with the third quarter about to end.

Most of the equities markets in Asia moved higher this morning after US stocks rallied overnight even as oil prices ended their seven-day decline.

Taxes collected last month surpassed the target of P68.8 billion by about a billion pesos, a finance official said.

Philippine Long Distance Telephone Co. (PLDT) rose P30 to P2,050.

Bank of the Philippine Islands gained P1.50 to P55.50 and parent Ayala Corp. added P5 to P460.

San Miguel A-shares ended flat at P65, while its B-shares fell 50 centavos to P71.

"The money train is here to stay, as investors continue to flock into the market," said First Grade Holdings managing director Astro del Castillo.

"The continuous flow of positive news, such as the strong revenue collection, goes to show that the government continues to reap the fruits of its fiscal reforms," he added.

On Wednesday, a finance official said the Bureau of Internal Revenue, which accounts for around two-thirds of total government revenue, has exceeded its tax-collection target for August — the fourth month this year that it has surpassed its goal.

Other active stocks included Pilipino Telephone, or Piltel, up 4.7 percent to P4.45 on the mobile phone operator’s strong cash flow, which has enabled it to prepay its debt, analysts said. Piltel is also set to undergo capital restructuring to wipe out its deficit and eventually enable it to pay dividends, they added.

Ayala group stocks also advanced. Ayala Corp. rose 1.1 percent to P460, while affiliate Bank of the Philippine Islands was up 2.8 percent at P55.50. Manila Water gained 1.1 percent to P9.10, while Globe Telecom rose one percent to P1,035. – AFP, AP