Philippine shares slightly higher in mid-session, but investors still cautious

Philippine shares slightly higher in mid-session, but investors still cautious

	Published : Wed, 18 Jul 2007 04:18 By : Agencies Print this Story

MANILA (Thomson Financial) - Philippine shares were slightly higher in the middle of the session Wednesday, as investors cautiously filtered back into market after its two-day decline, while preparing to switch their funds into upcoming initial public offerings.

At 10.47 am here (0247 GMT), the 29-company composite index was up 14.19 points or 0.42 percent at 3,745.52.

The broader all-share index had added 7.63 points or 0.32 percent at 2,415.11.

Of the 159 stocks traded, 65 had advanced, 33 had retreated and 62 were flat.

Lawrence de Leon, an analyst at Accord Capital Equities, said: 'The market is just moving sideways, with no heavy selling and buying. The market is still trying to absorb the series of IPOs and getting ready for coming offerings.'

Ron Rodrigo, head of research head at Unicapital Securities, said that although recent IPOs had sapped liquidity, he expected investors to take more decisive positions when the bigger offerings, such as those of broadcaster GMA Network Inc and Philippine National Bank, took place this month.

'Investors who have already cashed-out profits from recent gains will be channeling these funds into the IPOs, while the enthusiasm being shown by foreign fund managers on the new offerings, along with the continued appreciation of the peso, will see the market coming back strongly in the next sessions,' said Rodrigo.

The day's early gainers included property developer Ayala Land's stock, which went up 25 centavos or 1.39 percent to 18.25 pesos, and shares in its parent, conglomerate Ayala Corp, which gained 5.00 pesos at 565.00 pesos.

Market leader Philippine Long Distance Telephone Co edged up 5.00 pesos or 0.18 percent to 2,705.00.

Manila Electric Co (Meralco) rose after First Philippine Holdings announced that it had entered into a deal to buy another 6.6 percent of the power distributor for 8.3 billion pesos. Meralco's A-shares, which are limited to Filipino investors, added 2.00 pesos or 1.94 percent at 105.00 pesos, while its B-shares, which are available to Filipinos and foreigners alike, gained 1.00 peso or 0.96 percent at 105.00 peos. First Philippine Holdings added 50 centavos or 0.56 percent at 89.00 pesos.

(1 US dollar = 45.26 pesos)

rocel.felix@thomson.com

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