Shares advance on upbeat earnings expectations

By Maiki Oreta, ABS-CBN News

Posted at Aug 02 2010 01:01 PM | Updated as of Aug 03 2010 01:41 AM

MANILA, Philippines - Share prices at the local bourse advance on Monday despite Wall Street's lackluster performance last Friday.

Traders said the market was able to breach its immediate resistance level of 3,450 because of gains in other regional bourses.

One trader said: "Investors are positioning in issues that are expected to release upbeat earnings in the coming days."

At the close fo the session, the key Philippine Stock Exchange index was up 0.8% or 28 points to 3,455.

The broader all-share index rose 0.7% or 15 points to 2,198.

All subindices finished in green, led by the property sector, which added 2%.

Overall, market breadth was positive as gainers beat losers, 77 to 49, while 33 issues were unchanged.

However, market participation was thin as value turnover came in at a scant P2.6 billion.

PhilWeb Corp. was the most actively traded stock by value, soaring 9.3% to P14.76.

Second most active was Philippine Long Distance Telephone Co., which picked up 0.4% to P2,430. PLDT tracked the 1.4% rise in its American Depositary Receipts last Friday. The company is set to release its earnings results on Tuesday.

Third most active was Alliance Global Inc. It added 3.3% to P5.94 on net foreign buying.

Meanwhile, Jollibee Foods Corp. and Bank of the Philippine Islands reached new highs on Monday.

Jollibee traded at an all-time high of P80 but eventually closed with a gain of just 2.3% to P79.25. The fast food giant is expected to report strong financial results next week, after company officials noted that second quarter sales were stronger than what was recorded in the earlier quarter.

BPI traded at a 32-month high of P46.10 following a 17% rise in its net income during the second quarter of the year. However, the stock succumbed to profit taking, closing lower by 0.3% to P45.95.