Trendy telco stocks power PSEi’s climb to 6,800

The Philippine Stock Exchange Index (PSEi) surged higher on Wednesday as large telecommunications stocks flew, pushing the benchmark measure past the 6,800 mark.

By the closing bell, the PSEi was up 2.15 percent, or 143.33 points, to 6,822.15 while the broader all-shares index rose 1.29 percent, or 53.63 points, to 4,198.51.

Index heavyweights PLDT Inc. and Globe Telecom jumped 7.8 percent and 14.04 percent, respectively.

Both companies had previously announced aggressive network investment plans as demand for fast internet services was on the rise during the COVID-19 pandemic.

The companies also lifted the services subsector by 3.51 percent on Wednesday.

The property and holding company subindices also gained about 2.4 percent each while mining and oil was the only loser with a 0.12-percent decline.

Strong foreign buying also propped up the market despite latest government data showing high daily infections of COVID-19, clouding expectations for economic recovery.

On Wednesday, foreigners were net buyers to the tune of P815 million.

According to data from the PSE, there were 1.8 billion shares valued at P6.48 billion that changed hands. Gainers outnumbered losers, 95 to 93, while 51 companies closed unchanged.

Globe was the most traded stock during the session as its price reached P2,600 per share.

COL Financial Group chief equity strategist April Lee Tan said on Twitter this was near its record high of P2,720 per share in June 2015.

Stock brokers told the Inquirer the buying was spurred by Globe’s potential plans for GCash, its fast-growing mobile wallet venture with Chinese billionaire Jack Ma that recorded a profitable month in June.

Other actively traded names were PLDT Inc., up 7.8 percent to P1,345; Converge ICT Solutions Inc., down 1 percent to P29.70; Ayala Land Inc., up 0.89 percent to P34; and Ayala Corp., up 3.64 percent to P741 per share.