Market saves cash for eagerly awaited first REIT listing

The local stock barometer edged higher on Monday but trading volume was extraordinarily thin as some investors conserved cash for the upcoming initial public offering (IPO) of the country’s first real estate investment trust (REIT).

The main-share Philippine Stock Exchange index (PSEi) rose by 61.95 points, or 1.02 percent, to close at 6,150.70.

The property counter led the PSEi higher, rising by 2.08 percent. The industrial counter added 1.21 percent, while the holding firm and services counters both gained less than 1 percent.The mining/oil counter fell by 1.3 percent, while the financial counter lost 0.09 percent.

Value turnover stood at only P3.11 billion, barely half the average daily turnover of P6.6 billion this year.

“It seems that some investors are waiting for REIT,” said Joseph Roxas, president of Eagle Equities.

The PSE recently approved the IPO of as much as P15.1 billion planned by Ayala Land-sponsored AREIT Inc., the first REIT to list.The final offer price will be determined on July 22 after the company’s book building process. The offering will run from July 27 to Aug. 3.

REIT is a corporation that primarily invests in income-generating real estate such as office spaces, shopping malls, serviced apartments, hotels, hospitals and warehouses. It gives investors an opportunity to invest directly in the finished projects. Developers, on the other hand, can use this structure to recycle capital for further property development and expansion initiatives.There were 109 advancers that edged out 75 decliners while 52 stocks were unchanged. There was marginal net foreign selling worth P47.63 million.

ALI was the day’s most actively traded counter, rising by 3.94 percent. —Doris Dumlao-Abadilla INQ