PSEi gains on selective buying

The local stock barometer firmed up at the end of a rough trading day on Friday, supported by selective buying of large-cap stocks.

The main-share Philippine Stock Exchange index added 21.88 points or 0.26 percent to close at 8,365.11, reversing early losses.

“Philippine markets kept to bargain hunting despite the light trading value due to the (US) Thanksgiving holidays,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.

Overnight, the US stock market was closed due to the Thanksgiving holiday.

The PSEi was shored up by the financial and property counters, which gained 0.74 percent and 0.85 percent, respectively, while the industrial and holding firm counters also firmed up.

On the other hand, the mining/oil and services counters slipped.

Value turnover for the day amounted to P9.11 billion.

Despite the PSEi’s gain, market breadth was negative. There were 102 decliners that edged out 87 advancers while 52 stocks were unchanged.

The day’s upswing was mostly supported by local investors while foreigners were in a net selling position amounting to P461.28 million.

The PSEi was led higher by property giant Ayala Land Inc., which gained 3.73 percent and was the day’s most actively traded stock.

BPI, which raised P12.2 billion from a landmark offering of term deposit notes, advanced by 2.77 percent.

SM Investments and Jollibee also both gained by over 1 percent while SM Prime, URC and Metrobank contributed more modest gains.

Outside of PSEi stocks, notable gainers included Harbor Star, which surged by 26.37 percent. The company announced on Friday the acquisition of a 60 percent stake in Astronergy Development Gensan Inc. (ADGI).

ADGI has permits, licenses and entitlements to operate a 25-megawatt (MW) solar power plant in General Santos that is expandable to 75MW. The company has an existing government-approved power purchase agreement with South Cotobato II Electric Cooperative Inc. The construction of the initial 25MW solar power plant will be completed by the second quarter of 2018.

Another notable non-PSEi gainer was MRC Allied, which gained 11.69 percent. This company is diversifying into renewable energy.