Philippine stock index jumps 6 percent (AP)

Monday, November 24th, 2008 | Finance News

MANILA, Philippines – Philippine shares jumped Tuesday, led by banks as investors cheered the U.S. government's bailout of troubled banking giant Citigroup.

The Philippine Stock Exchange index surged 108.56 points, or 6 percent, to 1,908.18, extending Monday's 1.9 percent rise. The index lost 10.7 percent last week.

Investors who reacted to Citigroup's troubles by selling shares in local banks like Rizal Commercial Banking Corp., Metropolitan Bank and Trust Company and Banco De Oro Unibank Inc. were now buying back at bargain prices, traders said.

Ayala Corp., the country's largest conglomerate, rose 7.9 percent to 191 pesos. Its unit Bank of the Philippine Islands surged 9.3 percent to 41 pesos, and rival Metrobank was up 7.7 percent at 24.25 pesos.

Philippine Long Distance Telephone Co. was higher by 6.5 percent at 2,275 pesos, in line with the overnight advance of its American depository receipts in New York.

Property developer Megaworld Corp. bucked the trend, shedding 3.7 percent to 0.51 peso on concern that the prolonged global financial crisis may hurt the local real estate sector.

Gainers outnumbered decliners 77 to 26, while 24 issues were unchanged.