Telcos fly on aborted SMC-Telstra deal | Inquirer Business

Telcos fly on aborted SMC-Telstra deal

/ 01:19 AM March 15, 2016

The local stock barometer retested the 7,100 mark on Monday as telco stocks rallied on news that a prospective alliance between Telstra of Australia and San Miguel Corp. (SMC) had been called off.

The Philippine Stock Exchange index added 14.25 points or 0.2 percent to close at a four-month high of 7,112.89. This was the best level attained by the index since closing at 7,118.20 on Nov. 6 last year.

Upbeat global markets also supported local investor sentiment.

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Value turnover stood at P8.39 billion.

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Large caps led the day’s gain as 90 advancers were slightly outnumbered by 94 decliners, while 34 stocks were unchanged.

The services counter surged by 5 percent led by telco stocks. PLDT surged by 11.56 percent while Globe rallied by 7.91 percent. They were the two most actively traded stocks on Monday.

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It was reported late Sunday that Telstra would no longer invest in a venture with SMC. Such an alliance to create a formidable third player was earlier seen as a threat to the two leading players.

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PLDT spokesperson Ramon Isberto said: “I’ve been asked if this latest development changes PLDT’s strategy? The short answer is: No, it doesn’t. First, press reports say SMC will push through with its plans to launch a mobile service on its own. Second, our chair and CEO, Mr. Manuel V. Pangilinan, has said that our plans for 2016 already take into account the entry of a new player. Third, as we stated in the past, with or without a new player, we are vigorously pursuing our digital pivot strategy which involves a broad range of initiatives.”

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For its part, SMC said despite the aborted partnership with Telstra, it would “pursue the launch of its telecommunications network, inclusive of its high-speed Internet service, as scheduled, and is considering other joint venture opportunities.”

Outside of PSEi stocks, other notable gainers were DoubleDragon (+5.51 percent) and Puregold (+1.76 percent). Doris Dumlao-Abadilla

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TAGS: barometer, deal, San Miguel Corp., SMC, Stock, telcos, Telstra

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