US shutdown trims main index gains

The local stock barometer on Tuesday firmed up as investors picked up large-cap stocks that were battered in the last five days. However, concerns over Washington shutdown trimmed main index gains at close.

Ending a five-day decline, the Philippine Stock Exchange index recouped 6.04 points or 0.1 percent to close at 6,197.84 in mixed trade. This was after climbing by 52.6 points or 0.85 percent in morning trade.

Jose Mari Lacson, head of research at stock brokerage Campos Lanuza & Co., said investors picked up shares that were sold down in previous day, such as JG Summit (+2.98 percent).

On Monday, JG Summit fell by 1.74 percent on concerns over the valuation of a 27-percent stake in Meralco that the Gokongwei company had agreed to buy from SMC. At a valuation of P72 billion for the block or about P236 per share, JG Summit was said to have bagged the deal at a good price.  On Tuesday, JG Summit was the biggest PSEi gainer.

ICTSI and EDC also contributed to the day’s PSEi bounce by gaining more than 2 percent while Megaworld, Bloomberry, Semirara, AP, AEV, Petron and RLC rose by more than 1 percent.

Outside the main index, Meralco gained by 3.15 percent to close at P295 per share as JG Summit’s entry removed the overhang from a divesting stockholder (SMC).

Across the region, markets were likewise mostly higher as investors digested the shutdown of the US government, which is deemed temporary.  Nevertheless, concerns linger over the US fiscal deadlock.

There were 84 decliners  and 57 gainers Tuesday.  Value turnover amounted to P7.88 billion.

The biggest index decliners were MWC and URC which fell by more than 2 percent while DMCI, BDO, AC, FGEN, Philex and SMIC slipped by more than 1 percent.  AGI and Globe Telecom also closed lower. Doris C. Dumlao