Philippine stocks rise further Tuesday

MANILA, Philippines—Local stocks continued to rise on Tuesday in the aftermath of a pro-bailout Greek vote but follow-through buying was muted as elsewhere across the region, as investors are next turning jittery over Spain.

The main-share Philippine Stock Exchange index added 31.2 points, or 0.62 percent, to close at 5,081.61.

Advancers narrowly edged out decliners 79-73 while 47 stocks were unchanged. Value turnover was light at P4.43 billion.

Services gained (+1.13 percent) alongside slim gains by the industrial, holding firms and property counters.  On the other hand, the financial and mining/oil counters swung to negative territory.

In a research note, Metropolitan Bank & Trust Co. said the relief rally was likely to be short-lived as attention shifts back from Greece to Spain. It noted a backdrop of mixed US equities trading on Monday, with both the S&P and Nasdaq up in the green while the Dow sank into the red.

“Spain’s borrowing costs soared to a post euro-era high, closing at 7.14 percent, raising concerns over Spain’s need for more bailout funds for its banks,” Metrobank said.

“Markets will be monitoring the G20 summit for more support (if any) for a tighter union,” the bank said.

On the local front, Metrobank said the domestic bourse would likely move flat with a downward bias as investors might take a wait-and-see stance as they look at Europe for more direction.

On Tuesday, the PSEi’s gains were supported by firmer prices of AGI, BDO, AC, FGen, ICTSI, PLDT, AEV, AP, SMIC, Megaworld, ALI and JG Summit. FPH also moved higher.

On the other hand, volatile Calata slid by 12.36 percent. In a forum on Monday, PSE president Hans Sicat said the PSE had noticed the stock’s recent movement and affirmed that surveillance unit Capital Markets Integrity Corp. has been looking at it.

Share prices of EDC, DMCI and SM Prime also declined on Tuesday.