Index continues to surge on positive economic prospects

Share prices closed 0.78 percent higher yesterday on continued optimism over upcoming quarterly corporate results and improved economic prospects, dealers said.

They said the positive momentum took the index above the psychological barrier of 2,600 points.

The composite index rose 20.26 points to 2,617.41 after moving between 2,620.95 and 2,602.54.

It was the index’s highest close since July 5, 1999 when it ended at 2,621.67 points.

The broader all-share index rose 10.67 points to 1,608.74.

Gainers led losers 76 to 28 with 61 unchanged.

Turnover totalled 1.63 billion shares worth P2.38 billion.

"The momentum carried us above the 2,600-point level and this positive sentiment may spill over to next week," said Rommel Macapagal of Westlink Global Equities.

"There is anticipation over the release of corporate third-quarter results later this month. The record-breaking close of Wall Street also lifted the index," he added.

"Clearly there is momentum and money is flowing into the market, particularly in companies that are expected to report strong earnings for the third quarter," said Mark Alan Canizares of CitisecOnline.

Philippine Long Distance Telephone Co. (PLDT), the most briskly traded stock, rose P20 to close at P2,285.

Ayala Corp. fell P7.50 to P485.

"Some investors might have switched profits from Ayala Corp. to buy laggard issues," Macapagal said.

Banco de Oro Universal Bank advanced 50 centavos to P41.50 and Bank of the Philippine Islands was up P2.50 at P58.50.

Food and beverage firm San Miguel Corp.’s A and B shares were steady at P66.50 and P73.50, respectively.

PLDT, which plans to boost its dividend payout to 70 percent of profit in 2007 from 60 percent this year, closed the week 3.9 percent higher. Bank of the Philippine Islands, which said yesterday it will pay a record P2.7 billion ($54 million) special dividend this year, is up 3.5 percent this week.

Separately, First Gen added 50 centavos, or one percent, to P52.50. Company Vice Chairman Peter Garrucho said yesterday after trading closed that First Gen is interested in Mirant’s power plants. First Philippine Holdings Corp., which owns First Gen, gained 50 centavos, or one percent, to 51.

JG Summit Holdings Inc. added 40 centavos, or 5.3 percent, to P7.90, a five month high. Cebu Air Inc., the company’s wholly owned airline, said earlier this week that its domestic market share has overtaken that of bigger rival Philippine Airlines Inc. The airline also said that it may add 10 more jets to its fleet next year. – AFP