Market ends three-day drop on Wall St gains

Share prices closed 1.56 percent higher yesterday, lifted by the upturn on Wall Street overnight after stronger-than-expected US third quarter growth figures, dealers said.

The market ended a three-day decline, with many blue chips advancing, led by Philippine Long Distance Telephone Co. (PLDT), they said.

The composite index was up 42.90 points at 2,788.46 after trading between 2,788.78 and 2,746.04.

The broader all-share index rose 24.67 points to 1,744.28.

Gainers beat losers 76 to 30 with 50 stocks unchanged.

Turnover totalled 1.79 billion shares worth P3.32 billion.

"After digesting (Tuesday’s) bad news (of slower-than-expected local economic growth figures), investors bought stocks that are expected to sustain their earnings growth," said Astro del Castillo of First Grade Holdings.

The government said Wednesday that economic growth in the third quarter was a disappointing 4.8-percent year-on-year, compared with forecasts for 5.2 percent.

"The sell-offs in recent sessions created a buying opportunity and, technically, the market also found strong support near the the 2,700-point level," said Gomer Tan of Regina Capital Development Corp.

Top-traded PLDT rose P60 to P2,460.

San Miguel Corp. A shares rose P1 to P66 but its B shares were unchanged at P74.

"The market’s three-day correction was too sharp," said James Lago, head of research at Manila-based Westlink Global Equities Inc. "The drop brought down valuations of some stocks to more attractive levels.’’

Filinvest Land, the country’s largest builder of affordable homes, gained two centavos, or 1.3 percent, to P1.62, its first advance in 11 sessions. The builder said it posted a third-quarter profit of P326 million, the highest since at least 1999, according to Bloomberg data.

The benchmark yesterday lost 1.2 percent after the government said economic growth slowed to a five-year low as high fuel costs dented consumer spending and exports growth weakened.

Ayala Corp. jumped P15, or 3.1 percent, to P497.50, its biggest gain since October. The stock has risen 1.5 percent this month, its fifth straight monthly gain.

Bank of the Philippine Islands (BPI) gained 50 centavos, or 0.8 percent, to P62, after posting Wednesday its biggest loss since August.

Separately, Megaworld Corp., advanced four centavos, or 1.9 percent, to P2.18, paring this month’s loss to 6.8 percent. Security Bank Corp. rose P1, or 1.6 percent, to P64, bringing this month’s gain to 4.9 percent, its fifth straight month of gains. – AFP