Oil price drop boost prices

Businessworld reports the benchmark Philippine Stock Exchange gained 2.19% or 52.96 points to 2,462.94 while the all-share index edged up by 1.90% or 29.17 points to 1,557.91.

Turnover jumped to P2.15 billion from P1.5 billion on Tuesday, with most investors betting on blue chips, said Jason G. Lagrimas of 2TradeAsia.com.

Advancers swept decliners 69 to 29 while 42 were unchanged.

"The market reacted to the Dow Jones’s performance on Tuesday along with the drop in crude prices and the strengthening of the peso," said Jeng T. Calma of A&A Securities, Inc.

The two analysts noted investors bought select stocks, mainly blue chips, after these hit bargain prices.

"Blue chips led the improvement [yesterday] and this was a good sign. Investors picked up undervalued stocks," Mr. Lagrimas said.

Ms. Calma added now is the right time for long-term investors to accumulate stocks.

Light, sweet crude for August delivery dropped $3.09, closing at $127.95 a barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average went up by 1.18% or 135.16 points to 11,602.50 while the Standard & Poor’s 500 Index gained 1.35% or 17 points to 1,277.00. The Nasdaq Composite Index was also up by 1.07% or 24.43 points to 2,303.96.

"The signs were very encouraging. Investors were already positioning themselves in the market although they are still cautious," Mr. Lagrimas said.

The financial sector climbed by 3.29% or 20.45 points to 641.20 while holding firms gained 2.99% or 38.15 points to 1,311.45.

The property sector rose by 2.86% or 22.85 points to 819.76 while industrial firms edged up by 2.43% or 71.94 points to 3,023.24.

The mining and oil sector gained 1.51% or 99.03 points to 6,627.27.

The service sector, however, lost 0.13% or 1.82 points to 1,392.65.

Among yesterday’s major gainers were Metropolitan Bank and Trust Co., which climbed by 9.37% or P3 to P35, and property developer Megaworld Corp., which rose by 9.83% or P0.12 to P1.34.

Lopez-led Manila Electric Co. jumped by 6.66% or P3.50 to P56.

Real estate developer Robinsons Land Corp. rose by 4.76% or P0.30 to P6.60, as did Ayala Land, Inc., by 3.44% or P0.30 to P9.

Filinvest Land, Inc. gained 2.66% or two centavos to P0.77.

Banks were also among yesterday’s gainers. Banco de Oro Unibank, Inc. moved up by 5.40% or P2 to P39 while the Bank of the Philippine Islands climbed by 3.84% or P1.50 to P40.50.

Ayala Corp. went up by 3.80% or P10 to P272.50.

San Miguel Corp. A shares, restricted to domestic investors, rose by 3.65% or P1.50 to P42.50 while its B shares, open to all investors, gained 3.61% or P1.50 to P43.

Index heavyweight Philippine Long Distance Co., however, shed 0.62% or P15 to P2,395.

Despite yesterday’s encouraging performance, Irving I. Ackerman of I. Ackerman & Co. said the worst is not yet over.

"Subprime and financial issues still hound US and this might affect the performance of the market. The US government is undoubtedly helping ease the woes but these problems are far from being solved," Mr. Ackerman said.