PH shares rise for 2nd straight day

Posted at 09/02/14 6:08 PM

MANILA, Philippines - Philippine shares rose a second day, led by two Gokongwei and two Lopez stocks, while Asia was mixed.

The main index closed 0.33 percent up at 7,106.56 on Tuesday.

The Gokongweis' JG Summit and Cebu Pacific rose 1.9 percent and 1.4 percent respectively.

The Lopez Group's First Philippine Holdings and First Gen were also up by 3 percent and 2.3 percent respectively.

Ayala Corp rose as its board approved a plan to raise P15 billion by selling preferred shares. The plan had been approved by its Excom last month.

Century Properties gained 1.6 percent as it listed the P2.7 billion in bonds it sold last week, and said it was open to talks with controversial Japanese gambling tycoon Kazuo Okada over the deal the latter cancelled.

D&L Industries and Chemrez fell as they released details of D&L's offer to buy out other Chemrez shareholders. They both gained yesterday when they announced the plan.

At the foreign exchange market, the peso weakened, ending at P43.57 against the dollar.

Asia shares mostly up

Meanwhile, Asian markets mostly rose on Tuesday, with Tokyo gaining more than one percent as the yen sank against the dollar, while Shanghai was boosted by hopes China will introduce economy-boosting measures.

With Wall Street closed for the Labor Day weekend investors were given an anemic lead from Europe, where traders were eyeing the standoff between Russia and the West over Ukraine.

Tokyo rallied 1.24 percent, or 192.00 points, to 15,668.60 and Sydney rose 0.51 percent, or 28.67 points, to close at a six-year high of 5,658.5.

Shanghai jumped 1.37 percent, or 30.54 points to 2,266.05. Hong Kong finished almost unchanged, edging down 3.07 points to 24,749.02.

However, Seoul closed 0.79 percent lower, giving up 16.28 points to 2,051.58.

The Nikkei was the stand-out major performer Tuesday as the dollar edged towards the 105 yen level not seen since the start of the year, with analysts suggesting dealers are betting on the Bank of Japan to loosen monetary policy.

A weaker yen boosts Japanese exporters.

Osamu Takashima, chief FX strategist at Citigroup Global Markets Japan, said in a note that recent weakness in the yen suggests dealers "have quietly started factoring in the BoJ's additional monetary easing".

The bank holds a two-day policy meeting this week following a string of weak data, with its policymakers facing calls to unveil new economy-boosting measures which would tend to weigh on the yen.

Against that the US Federal Reserve is being urged in some quarters to raise interest rates -- which lift the dollar -- as the world's number one economy gets back on track.

In Asian trade the dollar was at 104.82 yen, against 104.27 yen in European trade. The yen also eased to 137.65 to the euro from 136.94 in Europe.

However, the euro dipped to $1.3129 from $1.3133, with expectations increasing that the European Central Bank will announce policies at a meeting this week to fight off deflation in the troubled bloc. - With reports from ANC and Agence France-Presse