Philippine stocks rise on favorable developments in Europe

MANILA, Philippines—Local stocks surged Monday as investors were encouraged by developments in Europe, where Greece and Italy moved closer to implementing reforms needed to address fiscal woes.

The main-share Philippine Stock Exchange index gained 43.91 points, or 1 percent, to finish at 4,356.87.

Value turnover at the local bourse was unusually heavy at P17.96 billion compared with about P4 billion in previous days.  This was due to a P14.5-billion cross-transaction on PLDT shares, representing a portion of JG Summit shares sold to an affiliate of First Pacific group.  Part of the deal when JG Summit ceded control of Digitel in favor of PLDT was that part of the Gokongweis’ shares in PLDT will be bought by the First Pacific group for cash.

There were 100 advancers, which overwhelmed 48 decliners, while 35 stocks were unchanged.

Even outside of the block, PLDT was the most actively traded stock as stock prices moved closer to the P2,500 price that JG Summit was paid for in exchange for Digitel.

PLDT shares were up by 0.9 percent to P2,440 per share.

Other stocks that gained in heavy volume were SMC, ALI, Security Bank, AGI, Metro Pacific, EDC, Nihao, Globe, BDO, Metrobank, Belle, Philex, URC, Apex Mining A (open to local investors) and Lodestar.

On the other hand, Megaworld, ICTSI and Cebu Air traded lower.

Outside of the PLDT cross, there was P499 million in net foreign buying for the day.

Sentiment was buoyant as Italy’s Lower House recently passed much-awaited belt-tightening measures while Greece named a new Prime Minister to head a new coalition government.