Share prices ended higher yesterday as investors took to overseas leads to trade the market.
During trade, shares jumped 3 percent in their biggest intraday gain since January 2019, driven by utilities after reports said President Duterte was willing to meet and talk with two Metro Manila water firms to settle a government dispute over water contracts.
Ayala Corp, Manila Water Co’s biggest shareholder and index heavyweight, jumped 6 percent, while DMCI Holdings, a major shareholder of Maynilad Water Services, gained nearly 3 percent.
Richard Laneda, a research analyst at COL Financial Group, attributed the gains to the reports and bargain-hunting by some investors.
Last year, the water regulator had cancelled the extension of concession deals with Manila Water Coand Maynilad Water, the country’s two largest utilities, on pressure from Duterte.
The Philippine Stock Exchange index (PSEi) was up 34.88 points or by 0.55 percent to 6,353.26.
The broader all shares index was up 20.21 points or by 0.53 percent to 3,808.73.
Gainers edged losers 107 to 84 with 48 stocks unchanged. Trading turnover reached P6.62 billion.
The peso closed at 50.55 to the dollar, down from 50.50 on Tuesday.
The currency opened at 50.50, hit a high of 50.465 and a low of 50.56. Trading turnover reached $934 million.
“Local shares rose on Wednesday on appetite for risk-assets at low valuations despite ongoing concerns over the COVID-19 (corona virus diseases 2019) outbreak,” said stock broker SB Equities Inc.
The stock broker said the market tracked the US market in its latest close.
Luis Limlingan, managing director at Regina Capital Development Corp., said the market “started strong but ended on a weak note.”
Limlingan said this follows as investors “weighed the prospects of fiscal stimulus to curb slower economic growth stemming from the coronavirus outbreak.”
Most actively traded SM Investments Corp. was steady at P900. Ayala Land Inc. was up P1.10 to P38.20. BDO Unibank Inc. was down P3 to P136. SM Prime Holdings Inc. was down P0.70 to P34.80. International Container Terminal Services Inc. was down P1.95 to P90.50. Ayala Corp. was up P30.50 to P640.50. Metro Pacific Investments Corp. was steady at P3.50. Universal Robina Corp. was up P2.50 to P120. Bank of the Philippine Islands was up P1.30 to P72.80.
