PSEi gains as investors snap up blue chips

MANILA, Philippines–Philippine stocks surged on Wednesday as investors parked their funds in index heavyweights, helping bolster their share price.

The benchmark Philippine Stock Exchange index (PSEi) rose 1.15 percent, or 83.67 points, to 7,355.29. The broader all-shares index was also up 0.85 percent, or 36.49 points, to 4,340.62.

Data from the PSE showed that a total of 2.3 billion shares valued at P11.37 billion changed hands.

Megaworld Corp. led the list of most actively traded stocks as it gained 8.82 percent to P4.95 a share. This was followed by Philippine Long Distance Telephone Co. (up 0.06 percent to P3,270), Alliance Global Group Inc. (up 3.41 percent to P25.80), Ayala Land Inc. (up 4.05 percent to P34.65) ad SM Prime Holdings (up 3.04 percent to P18.32).

A total of 110 companies gained while 71 closed lower and 48 firms closed unchanged.

“Some of those [gainers] like Megaworld and AGI have been laggards,” Jose Mari Lacson, head of research at stockbrokerage firm Campos Lanuza and Co., said in an interview.

He added that with the fourth quarter approaching, investors were now looking toward prospects in 2015.

“Stocks today are becoming sexier because of expectations for 2015 earnings,” Lacson said. “You can say that 75 percent of the information in 2014 has been discounted already.”

He noted, however, that challenges were expected in the first semester of the coming year as investors and consumers would “feel the bite” of a looming power crisis.

The second half, when election-related activity would come into full swing, would improve sentiments, Lacson said.

Meanwhile, data from the PSE showed that only the services sub-sector closed in the red as it dipped 0.10 percent. Gainers among sub-indices included property and financials, up 3.6 percent and 1.12 percent, respectively.–Miguel R. Camus