Philippines share prices closed 0.72 percent higher on Monday, extending gains to a third day, with the financials in focus on hopes for consolidation in the banking sector, dealers said. They said that with the market at near record highs, there was some profit-taking in the smaller stocks.
The composite index advanced 26.45 points to 3,691.68, near the day's peak of 3,697.55. The broader all-share index bounced back in late trade to edge up 3.66 points or 0.15 percent to 2,364.81.
Decliners led gainers 114 to 31, with 26 stocks unchanged. Turnover was 4.4 billion shares worth 4.6 billion pesos (100 million dollars). "Financial issues led gains with talk of more mergers," said Gomer Tan of Regina Capital Development Corp.
He said the completion of the consolidation between Equitable PCI Bank Inc and Banco de Oro Universal Bank in particular encouraged buying. "News of a possible merger between Philippine National Bank and Allied Bank means building a stronger financial base and this makes investors bullish about the banking sector," added Tan. Elsewhere, smaller stocks were hit by profit-taking as investors cashed in on recent gains to prepare for forthcoming public offerings, said Lawrence de Leon of Accord Capital Equities.
"Favored second- and third-line issues that went up fast recently experienced selloffs," he said. In the banks, Bank of the Philippine Islands rose 3.50 pesos to 72 pesos. Banco de Oro-EPCI Inc added two pesos at 71.50 pesos while Metropolitan Bank and Trust Co closed one peso higher at 72.50 pesos. Philippine Long Distance Telephone was unchanged at 2,650 pesos. San Miguel Corp A shares shed two pesos at 73.50 pesos while its B shares closed unchanged at 82 pesos.
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