PHL shares edge higher in moderately active trading

(Updated 2:57 p.m.) Philippines shares rose in moderately active trading Tuesday, driven by positioning ahead of the third quarter corporate results. The main Philippine Stock Exchange index advanced 41.44 points or 0.9864 percent to close at 4,242.52. “The market’s upside drive is the optimism on the third quarter report, with [players] positioning ahead of that," said Jonathan Ravelas, market strategist of BDO Universal Bank. More than 4.806 billion shares valued at P18.732 billion changed hands. Tuesday's volume and value reflected special block sales of 68 million shares of Manila Electric Co. worth P15.136 billion at P245 a piece, and 328,780 shares of Semirara Mining worth P209.95 million at P213 per share. “The market is still bullish enough, [the only thing is that the main index] should stay above the 4,250 resistance level, accompanied by strong trading volume," Ravelas said. Gainers led decliners 93 to 54 with 29 issues unchanged. Many players remained on the sidelines, waiting for a clearer resolution of the euro debt crisis, Ravelas noted. “So we have a muted uptrend," he said. According to a Reuters report, European Union finance ministers will meet on Wednesday, ahead of a leaders meeting later in the day, in an attempt to finalize a plan to fight the euro zone's sovereign debt crisis. "Europe is nearing agreement on bank recapitalization and on how to leverage a rescue fund to try to stop bond market contagion, but sharp differences remain over the size of losses private holders of Greek government bonds will have to accept," the report said. Still, Ravelas asserted that investors are now approaching the Philippine market from “a trading perspective because of the third quarter results." — KBK, GMA News