photo from pse.com.ph
MANILA, Philippines — Local stocks trekked higher for the fifth straight session on Thursday as investors correctly anticipated that the Philippines would bag an investment grade rating from a second global credit watcher.
After a sluggish opening following an overnight slump in Wall Street, the main-share Philippine Stock Exchange index added 22.43 points or 0.32 percent to close at 7,093.42. The index hit an intraday high of 7,108.28 – close to the all-time peak of 7,120.48 last hit on April 22 – as investors bet on another investment grade rating.
Dealers said the index moved higher close to the end of the session in anticipation that the second investment grading rating would come soon. This offset the “sell in May-go away” syndrome that crept early in the session.
But it was not until after the close of trading hours that the upgrade by S&P was confirmed as the rating firm issued a sovereign credit rating of BBB-, revising its old rating of BB+.
The day’s biggest index gainers were ICTSI (+1.63 percent), Belle (+1.23 percent), JG Summit (+0.84 percent), Bloomberry (+0.83 percent) and RLC (+0.78 percent). MWC, Meralco, FGen and Globe Telecom also contributed to the day’s gains.
Gaming stocks firmed up on Thursday after a heavy beating taken in the last few days over a looming change in tax regime from a 5-percent franchise tax on gross gaming revenues to a 30-percent tax on net income.
Meanwhile, the index laggers were EDC (-2.46 percent), ALI (-2 percent) and SM Prime (-1.1 percent). Philex, BDO, Metrobank, MPI, Petron, Jollibee, FGEN and AC also ended lower.
By counter, gains by the services sub-counter (+1.47 percent) alongside those of the financial, industrial and holding firm counters made up for the decline in mining/oil and property counters.
Value turnover amounted to P8.6 billion. There were 103 advancers that edged out 68 decliners while 36 were unchanged.