MANILA, Philippines?Local stocks extended their gains on follow-through buying on Thursday as investor sentiment remained buoyant on the heels of consolidation in the telecom sector.
Despite some profit-taking on index heavyweight PLDT, the main-share Philippine Stock Exchange index added 31.40 points or 0.78 percent to close at 4,055.14.
PLDT, which announced on Tuesday a deal to take over majority of Gokongwei-led Digitel, pulled back by 1.36 percent to P2,324 per share on Thursday. Some investors pocketed gains from PLDT after the 15.72 percent rally in the previous session.
Globe Telecom continued to rise, gaining by 5.82 percent to P891 per share, as PLDT's challenger sees some windfall from the PLDT-Digitel deal.
In an internal memo, Globe management told employees to brace for stiffer competition but also saw some opportunity. "PLDT is seen to carry the cost of bringing rationality back to the market by paying for this acquisition and... Globe is seen to benefit from it as profitability remains in a more stable and consolidated market,? the memo said.
Meanwhile, global rating firm Moody's sees the deal with Digitel as having no impact on its rating on PLDT.
All the counters were up on Thursday except for the services sub-index, which was weighed down by the profit-taking on PLDT which accounted for about 15 percent of the PSEi.
The financial, mining/oil, industrial and property counters were all up by over 1 percent.
Value turnover amounted to P6.3 billion. There were about three stocks that advanced for every single issuer that declined.
Other stocks that gained for the day were Aboitiz Equity Ventures, Cebu Air, Aboitiz Power, AGI, First Gen, Ayala Land, Meralco, Ayala Corp., SM Investments, EDC, Megaworld, Metrobank, FPH, Banco de Oro, BPI and Atlas Mining.
Apart from PLDT, investors also traded Digitel and DMCI with caution.
Digitel slipped by 1.28 percent to P1.54 per share, or lower than the P1.60 price at which PLDT will offer to buy out minority shareholders under the tender offer triggered by its takeover deal.