Stocks hit new high, players happy with benign inflation

Philippine share prices hit new record high on Thursday following government's report that inflation continued to be contained in June, an indication that the economy may be able to sustain its robust performance in the year's first quarter, analysts said. The 30-company Philippine Stock Exchange index soared 70.66 points or 1.89 percent to 3,802.32. The all share index jumped by 37.26 points to 1.5537 percent to 2,435.43. Ron Rodrigo, Unicapital Securities research chief, said the stock market's performance only reflected the Philippines' "strong economy." "The economy is strong, the inflation is benign and there's also some bargain-hunting (after the correction on Wednesday).The main factor on hitting the new record high is a lower consumer price index which shows that the management team of the administration is trying their best to manage well the inflation," he said. Rodrigo added that the inflation's slower growth shows that the "economy is geared for a follow-through performance as showed by the trading today." "We expect the market to continue to hit new high given that the economy is seen to continue its good performance," he said. Gainers crushed losers 93 to 32 while 47 stocks remained steady. Volume traded reached 3.59 billion valued at P5.29 billion. Developer Ayala Land Inc. rose P0.25 or 1.41 percent to P18. Mining exploration company Geograce Resources Philippines Inc. gained P0.20 or 7.27 percent at P2.95. Metropolitan Bank & Trust Co., the country's largest lender in terms of assets, closed the session higher by P1.50 or 2.11 percent at P72.50. Holding company Aboitiz Equity Ventures Inc. climbed P0.30 or 3.41 percent to P9.10. Telecommunications giant Philippine Long Distance and Telephone Co. gained P30 or 1.12 percent at P2,720. - Cheryl Arcibal, GMANews.TV