The Philippine Stock Exchange Index (PCOMP) rose 1.6 percent to 5,016.30, closing at a record. The gauge has climbed 2.5 percent this week, its fifth straight week of gains.
Builders, banks: Ayala Land Inc. (ALI) , the nation’s largest developer, increased 5.1 percent to 21 pesos. Bank of the Philippine Islands (BPI PM), the nation’s third-largest lender by assets, gained 2.9 percent to 72 pesos. The shares rose after the central bank cut interest rates yesterday for a second straight meeting.
“The main reason for the rate cut is to usher in economic growth,” said Jonathan Ravelas, a market strategist at BDO Unibank Inc. “Much lower interest rates would encourage consumers to borrow to fund home purchases and companies to expand their businesses.”
Aboitiz Equity Ventures Inc. (AEV) , which has investments in power plants, electricity retailers and banks, rose 3.3 percent to 49.90 pesos. The company said it will pay a cash dividend of 1.58 pesos a share.
GMA Network Inc. (GMA7) (GMA7 PM), a broadcasting company, advanced 3.3 percent to 10 pesos. Philippine Long Distance Telephone Co. Chairman Manuel Pangilinan said his group is “interested to take a look” at the company. It isn’t in talks to acquire GMA, he said.
Metro Pacific Investments Corp. (MPI) , which has investments in water, power and health care, gained 2.5 percent to 3.63 pesos. The company said profit rose 76 percent to 5.06 billion pesos ($119 million) last year. Consolidated revenue increased 19 percent to 22.07 billion pesos, Metro Pacific said in a statement. It declared a dividend of 1.50 centavos a share.
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