Stocks cheer liberalization law, higher subsidy for the poor
Philippine shares were mostly higher on Tuesday after President Duterte increased subsidies for poor households pummeled by higher inflation.
The benchmark Philippine Stock Exchange index rose by 0.75 percent or 52.34 points to 7,008.94, while the broader all-shares index added 0.49 percent, or 18.16 points.
Mr. Duterte on Monday evening directed the Department of Finance to increase monthly cash subsidy to indigent Filipinos from P200 to P500 to help low-income families cope with the rising cost of goods and fuel.
At the same, the President signed a law that would increase foreign investments in telecommunications and transportation.
The signing of Republic Act No. 11659 amends the 85-year-old Public Service Act and would allow foreigners to own up to 100 percent of previously restricted industries, thus liberalizing greater portions of the Philippine economy.
Large banks gained, pushing up the financial subsector by 2.08 percent. Services, holding firms and property also rose while the industrial and mining and oil subindices fell.
A total of 1.12 billion shares valued at P6.67 billion changed hands while foreign sellers edged out buyers by P838.5 million on Tuesday.
Decliners also outnumbered advancers, 81 to 77, while 60 companies closed unchanged.
SM Investments Corp. was the most actively traded company on Tuesday as it gained 0.23 percent to P882 per share.
It was followed by International Container Terminal Services Inc., up 3.45 percent to P227.80; Jollibee Foods Corp., down 3.30 percent to P205; Manila Electric Co., up 3.01 percent to P369.80; and Monde Nissin Corp., down 1.61 percent to P13.48 per share.
Other heavy movers were: Ayala Corp., flat at P777; SM Prime Holdings Inc., up 0.51 percent to P39.05; Ayala Land Inc., up 0.72 percent to P34.95; BDO Unibank Inc., up 3.41 percent to P130.40; and Aboitiz Equity Ventures Inc., down 0.87 percent to P57 per share. —Miguel R. Camus INQ
