The slower January inflation rate and the prospects of a new round of interest rate cuts pushed local share prices higher on Wednesday, sending the main index back above the 4,800 psychological resistance level.

The sub-4% January inflation has strengthen the likelihood of another rate cut in the coming weeks and the release of healthy 4Q11 corporate earnings should support the market’s current rally. Moreover, reports of a near-resolution to the ongoing debt crisis in Greece may provide added lift to already rising prices. Investors are advised to hold on to current positions as the index re-tests another record high.

Rizal Commercial Banking Corp. (RCB)
reported a net income of PhP5.0 billion in 2011, up 18% from 2010 in higher non-interest income and service fees and commissions. Non-interest income grew by 15% to PhP7.1bn in the year. Interest income meanwhile dipped by 1% to PhP10.7bn in 2011. Consolidated resources expanded by 8.1% to PhP345.8bn while its capital base went up 25% to PhP40.5bn on earnings and investments. RCB’s non-performing loans (NPL) ratio in 2011 dipped to 1.47% from 3.1% a year before while its capital adequacy ratio (CAR) stood at 19.3%, way above the BSP minimum level of 10%. Hold.

Phoenix Petroleum Phils., Inc. (PNX) said it made a net income of PhP510 million in 2011, up 19% from the PhP427m it recorded in 2010, on higher revenues. Consolidated revenues for the year jumped to PhP27.5bn, or 86% higher from the PhP14.8bn in 2010, due mainly to a 52% increase in sales volume and a 22% increase in the average selling price of fuel. Its network of petrol stations expanded, opening a total of 59 stations in 2011 to a total of 220. This, and the increase in sales from commercial customers, saw its market share grow to 5.3% in 2011 from 3.2% a year earlier. Hold.

source : PSE, Philstock