First Philippine, Manila Electric Shares Fall on Fuel Prices

By Francisco Alcuaz Jr.

Aug. 14 (Bloomberg) -- First Philippine Holdings Corp., the nation's largest non-state power producer, fell the most in two weeks on speculation higher fuel prices will cap profit.

First Philippine shares dropped 4.4 percent to 32.50 pesos (72 cents) at 10:57 a.m. on the Philippine Stock Exchange, its biggest decline since July 31.

Crude oil rose for a second day in New York after yesterday gaining 2.6 percent, the most since July 30. It climbed 0.8 percent to trade at $116.87 a barrel at 11:23 a.m. Manila time. Coal derivatives rose as much as 2.5 percent yesterday in London trading as the fuel followed other energy commodities higher.

Manila Electric Co., a First Philippine unit and the nation's biggest power retailer, fell 3.4 percent to 57.50 pesos, the most in almost a month. Manila Electric needs regulatory approval to raise rates after an increase in fuel prices.

To contact the reporter on this story: Francisco Alcuaz Jr. in Manila at falcuaz@bloomberg.net