Roundup: Lopez-related issues push up Philippine market Thursday

The bellwether Philippine Stock Exchange index went up by 1.26
percent or 36.88 points to 2,944.51, while the all share index
rallied by 1.09 percent or 19.93 points to 1,846.71.

Trading was above average where some 2.53 billion shares
valuing 4.15 billion pesos (87.12 million U.S. dollars) were
exchanged. Foreign investors however were net sellers at 296
million pesos (6.21 million U.S. dollars).

All six subindices closed higher, led by the property counters
which rose by 2.34 percent or 24.20 points to 1,055.58.

Market breadth was surprisingly positive with 62 stocks
rallying and 49 issues slipping. A total of 62 shares were
unchanged.

"Local trading performance was again highlighted by the
activity in Lopez-related stocks, pushing the main index higher
and bucking the trend of the U.S. market's intra-day reversal,"
research analyst Danielo Picache of local brokerage Papa
Securities Corp. said in his daily stock market comment.

Picache said the said issues also prevented the local market
from mimicking the performance of the Asian markets, most of which
were trading in the red despite the U.S. Federal Reserve's
optimistic pronouncement about the recovery of the U.S. economy.

Two of the Lopez issues were among the market's top gainers and
were among the top three most actively traded stocks. Shares of
its holding company First Philippine Holdings Corp. jumped by 6.42
percent to close at 58 pesos (1.21 U.S. dollars).

Likewise, parent Benpres Holdings Corp. added 7.89 percent to
finish at 4.10 pesos (0.08 U.S. dollar) per share. The Lopezes is
one of the Philippines' most influential families and has recently
grabbed the headlines when it sold its shares in crown jewel
Manila Electric Co. (Meralco), Philippines' largest power
distributor.

Investors have been buying the Lopez issues in anticipation of
the huge cash that it will generate from the sale of its remaining
13.4 percent stake in the power distributor after the son of the
country's richest man Henry Sy, Jr. offered to buy it at 300 pesos
(6.29 U.S. dollars) apiece, above its 221 pesos (4.63 U.S.
dollars) closing price on Thursday.

Sy will be pitting against the local unit of Hong Kong-based
First Pacific Co. Ltd.--Metro Pacific Investment Corp.--which was
already closed to buying half of the Lopez's stake in Meralco
prior to Sy's offer.

But while occasional corporate developments will move the
market, Picache said he still believes that the market's sentiment
is still heavily reliant on news coming from the world's major
economies to provide indications that the global financial crisis
is definitely behind now.

"Now that other countries are withdrawing their economic
stimulus measures, it only holds that there is indeed a recovery
underway," Picache said.

"In the Philippines, however, confidence has yet to be restored
once again only if earnings results show better-than-expected
figures until next year. So far, the results already released by
locally listed firms show positive growth, although, I think this
is already taken accounted for since last year's figures have a
relatively low base," he added.

Stocks in the 30-company index closed higher with heavyweight
Philippine Long Distance Telephone Co. gaining 0.19 percent to 2,
555 pesos (53.64 U.S. dollars).

"Bargain hunting would still be present... Less the buying
interest into Lopez stocks, we continue to await any major trend
reversal that would signal bullishness among investors with
regards to the general market," Picache said.

"For now, there are already selective stocks that are subject
to slow accumulation as their charts reflect a firming up of the
base indicated by double bottom patterns and bullish divergences."

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