PSEi climbs to 7,900 as EDC sizzles

The local stock barometer rebounded to the 7,900 level on Friday led by geothermal power producer Energy Development Corp. which attracted a new investor group.

The main-share Philippine Stock Exchange index added 56.16 points or 0.71 percent to close at 7,932.82 on selective buying of large-cap stocks. Elsewhere in the region, stock markets traded with mixed sentiment ahead of the US payrolls data report.

Lopez-led EDC sizzled on Friday along with its parent firm First Gen on news that a consortium of investors that includes a unit of Singaporean sovereign wealth fund GIC had offered to buy up to 31.7 percent of the company for up to $1.3 billion. The new investor group is looking to buy 6.6 billion to 8.9 billion common shares of EDC, mostly from minority shareholders, at P7.25 pesos per share or a premium to market price. A tender offer will run from Aug. 10 until Sept. 18.

EDC was the most actively traded company for the day, rising 15.97 percent to close at P6.90 per share on a value turnover of over P1 billion. First Gen also gained 6.13 percent.

By segment, the industrial sector gained 1.21 percent while the financial, holding firm, services and property counters all firmed up. Only the mining/oil counter slipped.

Total value turnover amounted to P6.36 billion. There was a modest net foreign buying of P18 million.

Despite the PSEi’s gain, market breadth was negative. There were 101 decliners that outnumbered 93 advancers while 50 stocks were unchanged.

AEV also gained 3.38 percent while SM Prime, Ayala Corp. and PLDT all rose by over 1 percent.

Ayala Land, BDO, Meralco and Semirara also contributed to the day’s gains.

Outside the PSEi, one notable gainer was Vitarich, which rose by 9.65 percent in relatively heavy volume.

On the other hand, ICTSI, URC and Globe all fell by over 1 percent while Jollibee, Puregold and SM Investments slipped.