Rise in European equities boosts Philippine stocks

MANILA, Philippines (Xinhua) - The Philippine stock market got a boost from the European equities, sending the Philippine stock market to rally today.

The bellwether Philippine Stock Exchange index gained 0.22 percent or 15.71 points to 7,113.22, while the broader all-share index added 0.14 percent or 6.18 points to 4,377.97.

Trading volume reached 1.08 billion shares worth P9.46 billion ($225.58 million) with 91 stocks advancing, 67 declining, and 46 unchanged.

Of the six counters, only the holding firm and the services sector bucked the trend.

"Gains in carmakers and technology companies carried markets in Europe staving off an extended slump that would have sapped confidence even more than it already has," analyst Justino Calaycay of Accord Capital Equities Corp. said.

The analyst said developments in the merger and acquisition front provided some excitement to the region.

Calaycay noted that investors are already reeling off over concerns on China's manufacturing, which has already slowed down, and expectations the U.S. Federal Reserve may scale back easing.

Calaycay said the local equities' performance on Tuesday underscored the tough challenge facing global investors.

The analyst said investors are turning to liquidating their positions should any negative news turn up.

"It is in this context that both the rational and emotional triggers to trading and investing decisions meet a dilemma," Calaycay said.

Stocks in the 30-company index closed mixed. Among those that rallied were Ayala Corp., Banco de Oro Unibank, Inc., and heavyweight Philippine Long Distance Telephone Co.  

In other corporate news, the Philippine National Bank (PNB), one of the country's biggest commercial banks, expects that its income will grow by 15 percent per year over the next five years.

PNB President Omar Byron Mier said in a briefing that the bank plans to expand its loan portfolio by around 18 percent in the next five years.

Mier said large companies account for 70 percent of the bank's total loan portfolio, while small and medium enterprises, consumers, and the government account for the remaining 30 percent.

"We want to get the other sectors to contribute bigger shares. We want the three to account for 50 percent and large corporations to remain a main driver," he said.