PSEi slightly up, earnings season ends

LOCAL stocks slightly gained on Monday, overcoming a rough start, as investors priced in the final stream of second quarter domestic corporate earnings results.

The main-share Philippine Stock Exchange index added 4.31 points or 0.05 percent to close at 7,960.17, led mostly by the property counter. The local stock barometer also tracked mostly firmer regional markets.

The property sub-index rose by 1.16 percent while the holding firms, services and mining/oil counters ended marginally higher. The financial and industrial indices both slipped.

Value turnover for the day amounted to P10.42 billion.

Despite the PSEi’s gain, market breadth was negative, as buyers focused mostly on large-cap stocks. There were 87 advancers which were outnumbered by 108 decliners while 49 stocks were unchanged.

LTG led the PSEi higher with its 4.87 percent. The conglomerate led by tycoon Lucio Tan reported a 28 percent year-on-year increase in net profit in the first six months to P4.56 billion on higher earnings across its banking, tobacco, liquor and property businesses. The first semester performance exceeded consensus estimates.

ICTSI gained 2.87 percent while MPI, SM Prime, ALI and Semirara rose by 1.13 percent, respectively.

GTCAP, AC, PLDT and JG Summit also contributed to the PSEi’s gains.

Outside of the PSEi, investors picked up shares of Security Bank (+3.08 percent) and Cirtek (+3.28 percent).

Meanwhile, URC fell by 4.2 percent while Metrobank, URC and BDO all declined by over 2 percent. Megaworld slipped by 1.94 percent.

Outside of the PSEi, the notable decliners were Alterra (-9.92 percent) and Cemex (-2.37 percent).

Alterra announced a buy-in deal with an investor group that plans to infuse a business process outsourcing (BPO) business into the company.

For its part, Cemex’s first semester net profit of P43.6 million fell below expectations.