PHILIPPINE DAILY INQUIRER - May 4, 2009

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Stocks rise on good profit reports

MANILA, Philippines—The local stock market sprang back vibrantly from a long weekend break, supported by relatively buoyant first-quarter local corporate results and the bullish sentiment across Asian equities.

The main-share Philippine Stock Exchange index yesterday rose 1.62 percent to 2,137.62 despite the sell down on index heavyweights PLDT and Ayala Land.

The financial counter, boosted by an initial stream of rosy profit reports from banks as well as a surprise downtrend in loan delinquency, led the stock index higher with its 3.87-percent rise. The index for holding firms was also up 2.57 percent.

Only the property index traded in the red by 0.468 percent due to selling in Ayala Land.

“The results are not as bad as expected and some are really good, so the market is adjusting stock price valuation,” said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.

He said the companies which had to write off large trading losses last year would now start booking gains.

Roxas said the local market also benefited from the sharp rally in the region especially Taiwan, China and Hong Kong, which were up 6 percent, 2.3 percent and 4.2 percent, respectively.