Property prompts PH stocks’ recovery from Ukraine shock

The benchmark Philippine Stock Exchange index (PSEi) jumped nearly 100 points on Monday as property giants rallied and investors took cues from Wall Street’s strong finish last week while more Western nations joined sanctions against Russia following its invasion of Ukraine.

By the closing bell, the PSEi rose 1.37 percent, or 98.78 points, to 7,311.01 while the broader all-shares index surged 1.20 percent, or 46.24 points, to 3,889.09.

Money flowed into major real estate developers such as Ayala Land Inc. and SM Prime Holdings as bets were placed on the US Federal Reserve pursuing less aggressive monetary tightening measures because of the Russia-Ukraine conflict.

This pushed the property subsector higher by over 4 percent, followed by mining and oil, up 2.77 percent, industrial, up 2.43 percent, holding firms, up 0.72 percent, and financials, up 0.11 percent. Services dropped 0.12 percent on the weaker performance of Globe Telecom and Converge ICT Solutions Inc.

PSE data showed 2.11 billion shares valued at P11.61 billion changing hands, while foreigners were net buyers to the tune of P202.74 million.

There were 108 advancers against 79 losers, while 49 companies closed unchanged.

Despite near-term volatility, Security Bank’s Trust and Asset Management Group provided a rosy outlook for the PSEi, which it said would recover to 8,000 by the end of the year as the economy reopens.

“We are optimistic that for 2022, the equities market will outperform the fixed income market, through cheap valuations, a strong domestic bid, and the return of foreign flows,” said Basil Jason Go, Security Banks’ head of equities at the trust and asset management group.

“We are looking at a strong rebound for the equities market and the possibility of double-digit returns,” he added.

SM Prime was the top traded stock during the session as it jumped 4.74 percent to P39.80 per share.

It was followed by BDO Unibank Inc., down 0.69 percent to P129.20; Ayala Land Inc., up 4.84 percent to P39; Bank of the Philippine Islands, up 2.04 percent to P100; and Globe Telecom, down 4.82 percent to P2,568 per share.

It was followed by Monde Nissin Corp., up 11.62 percent to P16.52; SM Investments Corp., up 2.41 percent to P892; International Container Terminal Services Inc., up 0.29 percent to P210.60; Metropolitan Bank & Trust Co., down 4.03 percent to P57.10; and Converge, down 3.53 percent to P26 per share. INQ