Stock market surges 2.2 percent to 2-month high

MANILA, Philippines (AP) - Philippine shares surged to a two-month high Tuesday, propelled by Wall Street's rally overnight and expectation the Philippine central bank will cut key rates.

The 30-company Philippine Stock Exchange Index rose 79.27 points, or 2.2 percent, to 3,677.19 _ its highest close since July 24.

The market has risen 12 percent since mid-September, breaking several resistance levels.

"This is in anticipation of a central bank rate cut," said Unicapital Securities research head Ron Rodrigo, referring to a rate-setting meeting Thursday. "We may continue to rise given the overall positive outlook, although there will be investors who will take this as a selling opportunity."

Ayala Corp., the Philippines' largest conglomerate, climbed 5.5 percent to 580 pesos after announcing that it will issue up to 7 billion pesos (US$159 million; ?111 million) worth of bonds to refinance debts.

Metropolitan Bank & Trust Co., the country's largest lender, was up 2.7 percent at 57.50 pesos.

Philippine Long Distance Telephone Co. inched up 1.2 percent at 2,940 pesos after touching a new record high of 2,970 pesos, following hefty gains of its American depository receipts Monday. Rival Globe Telecom Inc. rose 4.1 percent to 1,520 pesos after briefly hitting a record high 1,535 pesos.

Gainers outnumbered losers 90 to 36, while 51 stocks ended unchanged.