PSEi moves up as investors anticipate NCR’s reopening
Shares of Lopez-led First Gen Corp. sizzled at the local stock market on Wednesday following a tender offer at a premium price made by a unit of American private equity firm KKR.
First Gen outperformed the main-share Philippine Stock Exchange index (PSEi), which added 26.95 points or 0.49 percent to close at 5,523.78.
The Singapore-based unit of KKR, Valorous Asia Holdings Pte. Ltd., offered to acquire for investment purposes at least 6 percent to as much as 9 percent of First Gen’s shares at the price of P22.50 per share. This represented a 35.05 percent premium over the three-month volume-weighted average price (VWAP) of First Gen, and a 19.23 percent premium over the six-month VWAP.
First Gen’s shares surged by 14.15 percent to close at P20.25 per share on Wednesday, moving closer to the tender offer price. This gave the company a market capitalization of P63.8 billion.
Elsewhere in the region, trading sentiment was mixed. At the local market, traders are anticipating the reopening of the National Capital Region (NCR) after a two-month lockdown prompted by the coronavirus pandemic.
Most investors have already anticipated the shift to general community quarantine after May, which means more restrictions will be relaxed, local stock brokerage Papa Securities said.
The local stock market was led higher by the mining/oil counter, which rose by 2.95 percent, and the industrial counter which added 1.53 percent.
The financial and holding firm counters also gained ground.
On the other hand, the services and property counters both slipped.
Value turnover for the day amounted to P5.48 billion.
There were 99 advancers that edged out 78 decliners, while 47 stocks were unchanged.
Metro Pacific also contributed to the PSEi’s gains, rising by 5.77 percent. Ayala Corp. added 3.21 percent.
Fast-food giant Jollibee recouped 2.52 percent after the previous day’s selldown.
SM Prime, BDO, Universal Robina, Security Bank and Metrobank all rose by over 1 percent, while Meralco added 0.36 percent.
On the other hand, Ayala Land fell by 2.17 percent, while GT Capital and Globe Telecom both slipped by over 1 percent.
SM Investments, PLDT, Puregold, ICTSI and JG Summit all dipped. —DORIS DUMLAO-ABADILLA
