Rising for the third straight session but at a more cautious pace as the market moves closer to all-time highs, the main-share Philippine Stock Exchange index added a modest 2.91 points or 0.04 percent to close at 7,028.35 on Monday.
Selective buying, however, propped up the index as valuation concerns reemerged amid a liquidity-driven rally. Dealers said the index was attempting to build a base above 7,000.
Value turnover was relatively thin at P7.45 billion as the index neared historical highs. The record peak for both closing and intra-day trade is at 7,120.48 that was hit on April 22.
The financial, industrial, services and property counters kept the index in positive territory, compensating for the slack in the holding firm and mining/oil counters. There were 83 advancers versus 76 decliners in the market.
The day’s index gainers were utilities Globe (+3.68 percent) and Meralco (+3.54 percent), followed by ALI, Metrobank, Petron, BPI, PLDT, Semirara and DMCI.
On the other hand, the index laggers were Bloomberry (-5.35 percent), Belle (-4.56 percent) and AGI (-3.6 percent) were battered by concerns on a new tax ruling withdrawing Philippine Amusement Gaming Corp.’s income tax exemption.
As many blue chips hit high valuations relative to projected earnings, the market scouted for opportunities in non-index stocks. LTG (+2.9 percent) and BHI (+2.23 percent) rose in heavy volume.
LTG recently completed a landmark $920-million re-IPO (initial public offering) while BHI is expected to close a property deal with Ayala Land Inc. involving some of its landbank, including part of the 3,000-hectare beachfront property Puerto Azul complex that BHI and controlling stockholder JP Guilds were trying to unlock values from.