News: Index gains amid solid corporate earnings -
20 Oct 2007
Share pricesadvanced yesterday amid solid third-quarter corporate earnings reports, led by ABS-CBN Broadcasting Corp.
The 30-company Philippine Stock Exchange Index rose 48.63 points, or 1.3 percent, at 3,819.75, extending Thursday’s 0.3 percent gain.
“We’ve seen a glimpse of how some companies performed in the third quarter, and the so-far positive results give us confidence that other companies will also do well,” said First Grade Holdings managing director Astro del Castillo.
ABS-CBN led the rise, surging 8.2 percent to P33 after reporting its third-quarter net profit nearly tripled on higher advertising revenues.
Philippine Long Distance Telephone Co. (PLDT) climbed 2.8 percent to P3,110, in line with its American depository receipts’ overnight advance. Property developer Megaworld Corp. jumped 5.9 percent at P4.50, and Ayala Land Inc. inched up 1.5 percent to P17.
Gainers outnumbered decliners 57 to 53, with 56 stocks unchanged. Some analysts said the market may consolidate next week as investors are keenly watching local political developments.
President Arroyo is facing a new challenge with the reported rift between her and House Speaker Jose de Venecia Jr., her strongest ally in the past nine years.
Analysts believe that Mrs. Arroyo has survived past attempts to unseat her with the unconditional backing of de Venecia.
“If the rift is substantiated, it may make the Presidency very vulnerable,” said Vistan of AB Capital. PLDT set the pace among the gainers, adding P85 or 2.8 percent to P3,110.
PLDT said earlier this month that its mobile phone units, Smart Communications and Pilipino Telephone Corp., had about 28.3 million subscribers at the end of September, up more than one million from 27.1 million at the end of June.
ABS-CBN edged up P2.50 or 8.2 percent to P33. The company reported Thursday that its net profit in the first nine months doubled from a year earlier to P1.1 billion, surpassing its full-year target of P1 billion.
The results reflected gains in advertisements and its subscription-based business. ABS-CBN is now projecting net profit to rise to as much as P1.4 billion for the whole year, or almost double what it earned in 2006. — AP