RP stock index recovers, rises above 3,000 points

Local share prices recovered from two straight sessions of decline last week, rising again above the 3,000 psychological level in line with Wall Street's Friday rally after investors found good news in the Federal Reserve's decision to begin dismantling emergency lending measures for banks. The Philippine Stock Exchange index went up by 1.24 percent or 37.06 points to 3,015.59 in thin trade, where less than a billion stocks worth P2.22 billion changed hands. Brokerage 2TradeAsia expects stock buyers to seek guidance at the start of the week, specifically how foreign fund mangers will react to the Fed's latest move to raise its discount rate for banks. "Frail reactions within Asia’s waters might be muted, however, as investors pay more attention to corporate earnings recovery prospects for the year," it added. Funds flowing within the region, 2TradeAsia said, would likely gain ground, which should limit the volatility in the foreign exchange market. "Monitor volume build-up. Trade [within] a range and position on weakness. Immediate support is 2,950, resistance at 3,010." The Dow Jones industrial average rose for a fourth day on Friday, edging up by 9 points to post its best week in more than three months. US stocks initially fell in response to the Fed's announcement late on Thursday that it was raising the rate it charges banks for emergency loans, known as the discount rate. They turned higher in late morning trade as investors saw the Fed's move as a vote of confidence that the financial system was recovering and that banks did not need as much support. On the local front, gainers beat losers 64 to 25, while 63 stocks were steady. Subindices gained across the board, led by property stocks' 2.71-percent or 27.12-point rise to 1,028.37. Services also advanced by 1.37 percent or 20.27 points to 1,501.6, while holding firms were up by 0.9 percent or 15.15 points to 1,704.8. The industrial index also inched up by 0.78 percent or 35.19 points to 4,548.37, while financial shares added 0.76 percent or 4.81 points to 640.45. Mining and oil stocks likewise ended 0.27 percent or 26.32 points higher at 9,704.84. Ayala Land, Inc., the most active stock, gained 50 centavos to P11.25, while dominant carrier Philippine Long Distance Telephone Co. was up by P35 to P2,585. Conglomerate Ayala Corp. added P2.50 to P295, while Universal Robina Corp. inched up by 50 centavos to P21. Energy Development Corp. and Robinsons Land Corp. were unchanged at P4.95 and P12.25, respectively. — Norman P. Aquino, GMANews.TV