PSEi claws way back to 6,600
The local stock barometer clawed its way back to the 6,600 level after a heavy beating in early trade on Monday as investors picked up selected large-cap stocks.
The main-share Philippine Stock Exchange index (PSEi) added 63.15 points, or 0.97 percent, to close at 6,607.78, led by DMCI whose shares rose by 4 percent after announcing a generous dividend policy.
DMCI declared a total of P6.37 billion in regular and special cash dividends, representing 97 percent of its consolidated core net income in 2020. Shareholders on record as of April 15 are entitled to a regular cash dividend of 13 centavos per share and a special cash dividend of 35 centavos per share to be paid on April 26.
The total annual dividend of 48 centavos reflects a cash dividend yield of 8.8 percent based on DMCI’s March 26 closing price. The 97-percent dividend payout ratio is the second highest level in 10 years for DMCI, which has an existing policy to distribute at least 25 percent of the preceding year’s consolidated core net income to shareholders.
Overall, the local market was led higher by the property counter, which advanced by 2.21 percent, while the financial counter rose by 1.36 percent.
The holding firm and services counter all added less than 1 percent.
On the other hand, the industrial and mining/oil counters added less than 1 percent.
Article continues after this advertisement“The market proved its resiliency as it ended higher despite starting the day with a substantial loss. The tightening of quarantine restrictions caused some panic selling at the open, however, buyers were quick to come in and pick up shares at cheaper prices,” said Christopher Mangun, head of research at AAA Equities. “The optimism may be coming from the government’s commitment to the economy’s recovery despite the recent setback. Gains were led by large-cap property issues and holdings firms rather than the quarantine outperformers that led the market last week.”
Article continues after this advertisementDespite the gains, Mangun said the local stock market was not out of the woods yet as the main index was coming up against resistance at 6,600-6,700. “We may see it give back some gains in the coming days,” he said.
Value turnover for the day amounted to P7.27 billion. There was a marginal net foreign buying of P30.42 million.
Despite the PSEi’s gain, market breadth was positive. There were 116 decliners that outnumbered 97 advancers, while 44 stocks were unchanged.
SM Prime and Ayala Corp. rose by nearly 3 percent, while BPI added 2.55 percent.
Ayala Land, Metrobank and PLDT all gained over 1 percent, while BDO and Jollibee added less than 1 percent.
Outside the PSEi, notable gainers included GMA Network, which soared by 19.65 percent, while Semirara added 2.26 percent.
On the other hand, SM Investments and URC both fell by 1 percent, while ICTSI and Puregold both lost less than 1 percent.
