PSEi up for 5th straight session; selective buying, Moody’s credit rating cited
MANILA, Philippines — The local stock barometer gained for the fifth straight session on Monday, bucking the regional downturn, buoyed by selective buying and the country’s recent investment grade rating from Moody’s.
The main-share Philippine Stock Exchange index added 52.73 points or 0.83 percent to close at 6,443.21.
Eagle Equities president Joseph Roxas said local equities were getting a boost from the rating upgrade from Moody’s, which has made the Philippine sovereign investment grade based on the metrics of all three major global rating firms.
Value turnover stood at a modest P6.18 billion. There were 90 advancers which beat 51 decliners while 44 stocks were unchanged.
“Market was relatively thinly traded with action on locals picking up URC (+1.37 percent) which was sold at a 6.5 percent discount last Friday,” said Ricky Liboro, director of BPI Securities.
“Consumer plays remain a favorite and picking up URC at a bargain was an easy choice,” Liboro said, noting that URC – the day’s most actively traded stock – accounted for P1.1 billion of the day’s volume.
Meanwhile, the focus has shifted from US Federal Reserve’s tapering to debt ceiling debates as Washington temporarily shut down operations amid a budget deadlock.
“Likelihood of us tapering this month not to happen as focus would be on resolution to the US budget and debt ceiling. *There’s) likelihood of foreign fund flows to emerging markets,” Liboro said.
The day’s biggest PSEi gainer was SMIC (+3.65 percent) while Philex, RLC and SM Prime all advanced by over 2 percent. SMC, AC, JG Summit, DMCI and ALI rose by over 1 percent.
JG Summit last week struck a deal to buy SMC’s remaining 27 percent stake in Meralco for P72 billion. On Friday, it raised P12 billion from the sale of shares in URC.
