RP stocks rise on lower oil prices
Stocks closed higher Monday as the recent pullback in oil prices provided investors “temporary” relief, but gains were capped amid persistent worries over the health of the United States economy and rising inflation.
The broader all-share index gained 14.13 points or 0.93 percent at 1,530.96.
Gainers outpaced losers, 55 to 32, with 52 stocks unchanged.
A total of 860.7 million shares worth P1.5 billion were traded.
“Last week saw a significant correction or drop in oil prices. This buoyed local and overseas markets. Although, this may be temporary as oil prices are likely to go up again,” said Joseph Roxas, president of Eagle Equities.
Light, sweet crude for August delivery fell 41 cents Friday to settle at $128.88 on the New York Mercantile Exchange, after hovering above $147 levels in the week ago. In early Asian trade, it rose 82 cents to $129.70 a barrel.
Inflation, largely pushed by skyrocketing oil and food prices, is running at 14-year highs. It hit 11.4 percent in June and is expected to peak above 12 percent this year.
On Thursday, the central bank raised its interest rates by half a percentage point, tightening policy for a second month in a row, to combat inflation.
Roxas said today’s low turnover reflects that the only few players left in the market were trading with extreme caution. “Most of them have gone out already,” he said.
Investors are keeping a wary eye over more corporate results from big US financial firms this week. Among them are Bank of America and Wachovia Corp. Also on tap are profit reports from Apple, Yahoo and Boeing.
The Dow ralled 3.6 percent on Friday, bouncing back from four weeks of heavy losses. The Federal Reserve’s move to give open credit to mortgage finance giants Fannie Mae and Freddie Mac, which were on the verge of collapse, somehow helped eased market concerns.
“It remains to be seen if the US rally would be sustained, given that more quarterly losses are expected from companies. Wall Street will also likely correct after Friday’s rally,” Roxas noted.
Index heavyweight Philippine Long Distance Telephone Co. rose P10.00 or 0.42 percent to P2,415.00.
Ayala Corp. jumped P10.00 or 3.9 percent to P267.50. Its units also ended in positive territory.
Property giant Ayala Land Inc. edged up P0.10 or 1.2 percent to P8.60 while Bank of the Philippine Islands climbed P1.00 or 2.6 percent to P39.00. Globe Telecom, the most actively traded issue, advanced P20.00 or 1.97 percent to P1,035.00.
Metropolitan Bank and Trust Co., the nation’s biggest lender, soared P1.50 or 4.9 percent to P32.00.
Source: ABS-CBN News Online, http://www.abs-cbnnews.com/storypage.aspx?StoryId=125873, July 22, 2008
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