Stocks up on yearend buying

Most local stocks firmed up for the sixth straight session Friday, aided by yearend window-dressing and favorable news on the US economy.

The main-share Philippine Stock Exchange index added 1.78 points or 0.04 percent to finish at 4,372.24, staying afloat even as some blue chips succumbed to profit-taking. For the week, the local stock barometer crept higher by 67.3 points or 1.6 percent.

All counters traded in positive territory except for services. Value turnover amounted to P8.3 billion, including P4.7 billion in block transaction as ISM Communications led by former trade minister Roberto Ongpin completed the takeover of a controlling stake in Philippine Bank of Communications.

There were 94 gainers that outnumbered 63 decliners while 43 stocks were unchanged. Foreign buying exceeded foreign selling by P262 million, helping push the index higher.

Among the blue chips that aided the main index were Banco de Oro, SM Investments, Semirara, DMCI, Aboitiz Power, Ayala Corp. and BPI.  Among the non-index stocks that traded higher in heavy trade were Puregold, APC and Lepanto.

Two stocks affiliated with the group of businessman William Gatchalian were among the day’s top gainer. Philippine Estates Corp. (PHES) and Wellex Industries (WIN) surged 18.09 percent and 16.67 percent, respectively, on expectations that they could benefit from the prospective development of the group’s 60-hectare Plastic City in Valenzuela.

Both PHES and WIN said they were not involved in talks with the prospective investor Ayala Land Inc. But they did not rule out a potential involvement in the future. In case they will be part of the project, they said they would “make a disclosure in an appropriate time.”

On the other hand, the PSEi’s gains for the day were tempered by profit-taking on ALI, AEV, EDC, PLDT, AGI, Megaworld, Metro Pacific Investment, Metrobank, URC and First Gen. Doris C. Dumlao