NOW finds spotlight in humdrum market

The local stock barometer edged higher on Monday in line with mostly firmer regional markets.

Outside the main index, the share price of NOW Corp. surged by 19 percent in relatively heavy volume after its telecom arm obtained from the National Telecommunications Commission an extension of authority to install, operate and maintain a telecommunications network.

NOW was the second most actively traded company for the day.

The main-share Philippine Stock Exchange index (PSEi) added 26.65 points, or 0.34 percent, to close at 7,960.12 on selective buying of large-cap stocks.

Christopher Mangun, head of research at AAA Equities, noted equities markets moved higher despite weak data on Chinese exports for August. “Investors are focused on more stimulus from governments to support the slowdown in global economic growth,” he said.

Mangun noted the PSEi, for its part, started the week right at its support of 7,920. It ended with minor gains for the fourth straight session.

“However, extremely low trading volumes mean investors are really on the sidelines. If we don’t see it go to 8,000 soon, then we might see it come back all the way down to its strong support at 7,730,” Mangun said.

The gains were led by the financial counter, which rose by 1.08 percent, while the industrial, property and services counters also gained. —DORIS DUMLAO-ABADILLA