Philippine bourse extends winning streak on Monday

The Philippine stock market extended its winning streak on Monday following the release of positive U.S. economic data. The bellwether Philippine Stock Exchange index added 0.35 percent, or 23.49 points, to 6,766.46, while the broader all-share index rose by 0.07 percent, or 2.67 points, to 4,071.63. Trading volume reached 1.66 billion shares worth 4.8 billion pesos (107.83 million U.S. dollars) with 89 stocks advancing, 81 declining and 47 unchanged. Of the six counters, only the mining and oil sector bucked the trend. "Much of the bullishness was attributed to expectations over U. S. corporate earnings and non-farm payrolls -- data which were released long after markets in the region had closed," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment. Calaycay said U.S. unemployment fell to 6.3 percent from 6.7 percent, a "huge" improvement in light of the weak start for the year induced by inclement weather. He said, however, that the drop in unemployment rate was accompanied by the shrinkage in the labor force. Likewise, brokerage 2TradeAsia.com said increased liquidity in the system and expectations of improved first quarter earnings from select index-based stocks will continue to drive up interest in the local equities. The brokerage advises investors to exercise caution for possible selling pressure that might come out as the index nears the 6,800 level. It said, however, that the local equities might continue with its upward thrust, as the bourse is seen breaching the latest high at 6,815 before it is pushed into a correction. Stocks in the 30-company index were mostly up. These include heavyweight Philippine Long Distance Telephone Co., SM Investments Corp. and Ayala Land, Inc.