The local stock barometer firmed up Monday on the back of selective buying mostly triggered by a telecommunication asset buyout deal that reinforced the duopoly in the local market.
The Philippine Stock Exchange index (PSEi) gained 52.66 points or 0.71 percent to close at 7,464.34, led by index stocks PLDT, Globe and SMC, which benefited from SMC’s decision to sell all its telecom assets to the top two players.
The deal drove PLDT and Globe higher by 9.13 percent and 5.8 percent, respectively, as it eliminated prospects of a strong third player making inroads into the local market. The seller SMC also surged 5.58 percent as it would receive around P52 billion in equity alongside the transfer of all obligations to the buyers.
Apart from this telco deal, PLDT also benefited from a separate deal to sell 25 percent of its stake in Beacon Electric–the First Pacific group’s holding firm for Meralco shares–to sister firm MPIC.
JG Summit, a strategic investor in PLDT, also gained 0.54 percent while MPIC rose 1 percent. Doris Dumlao-Abadilla