Philippines stocks resume climb

MANILA, Philippines—The local stock index resumed its upswing Wednesday, re-testing recent record highs, as investors were emboldened by a recently concluded second bailout package for Greece.

The main-share Philippine Stock Exchange index recovered 33.35 points, or 0.68 percent, to finish at 4,934.29. It hit an intra-day peak of 4,955.61, breaching the all-time high closing level of 4,943.84 but without topping the record intra-day high of 4,966.94 seen last Monday.

“I think it’s more on the Greek bailout,” said Jose Mari Lacson, head of research at Campos, Lanuza & Co. “Investors continue to be bullish and are ignoring rising valuations.”

“Market sentiment is very bullish. [There are] lots of money looking for better albeit risky returns,” said Manny Lisbona, deputy chief of PNB Securities.

All counters rebounded from the previous day’s profit-taking but the holding firm sub-index gained the most with its 1.2-percent rise.

Value turnover amounted to P9.11 billion. There were 108 advancers that overwhelmed 64 decliners while 37 stocks were unchanged.

The main index was led higher by Megaworld, Ayala land, DMCI, Alliance Global, URC and PLDT. Other non-index stocks also gained in heavy volume like PSE, Philodrill, GMA Holdings, Puregold, Dizon and Oriental Peninsula.

The demutualized PSE surged 28 percent to P455 a share and was the third-most actively traded company in the market. Dealers said this could either be a play on either good dividends given the robust equities markets last year or a play on prospective merger and acquisition given an international trend of consolidation among bourses.

On the other hand, the PSEi’s advance was tempered by the decline of Metrobank, SM Investments, BDO, EDC, Globe and Cebu Air. There was likewise profit-taking on Security Bank.

A second bailout package finalized by the European Union for debt-strapped Greece worth $173 billion eliminated risks of default.