By Janina C. Lim, Reporter
THE MAIN INDEX opened the week on a positive note amid a recovery in banking stocks and news that the new real estate investment trusts (REIT) rules will be out in the first half of the year.
The bellwether Philippine Stock Exchange index (PSEi) rose 1.51% or 120.05 points to 8,024.14. The broader all-shares index also climbed 1.19% or 56.45 points to 4,786.60.
“I think the recovery of the banks from Friday’s sell-off somehow helped the index to go from negative in the morning session to positive in the afternoon session but the news about SEC’s issuance of the revised guidelines on REIT within this semester could be the bigger reason that urged investors especially the foreigners to do a last-minute buying spree of property stocks that propelled our index above 8,000 level today,” said Jervin S. de Celis, Timson Securities, Inc. trader, in a mobile phone message on Monday.
A top official from the Securities and Exchange Commission expressed confidence of releasing within the semester the revised guidelines for REITs, which are listed firms that own and operate income-generating real estate assets.
As for the banks that reported loan exposures to Hanjin Heavy Industries and Construction Philippines’ declaration of bankruptcy last week, Rizal Commercial Banking Corp. saw the highest rebound, closing Monday with a 2.84% rise to P27.15 apiece.
Metropolitan Bank & Trust Co. went up 2.63% to P80 each; Bank of the Philippine Islands gained 2.11% to P91.90 each; and BDO Unibank, Inc. edged up 0.3% to P131.60 apiece.
For Regina Capital Development Corp. Managing Director Luis A Limlingan, developments at the United States central bank and in the US-China trade talks also pushed the PSEi upward.
“Part of this stemmed from a dovish message from the chairman of the Federal Reserve and amid renewed hopes that trade talks between the US and China will deliver a near-term deal,” Mr. Limlingan said in a mobile message yesterday.
All subindices climbed on Monday. Industrials led the charge, climbing 2.14% or 245.99 points to 11,732.67; holding firms went up 1.62% or 127.90 points to 8,011.47; financials rose 1.39% or 24.74 points to 1,797.06; property expanded 1.28% or 50.65 points to 3,994.77; services edged up 0.16% or 2.48 points to 1,544.63; mining and oil advanced 0.11% or 10.03 points to 8,752.21.
Advancers outnumbered decliners, 125 to 80, as 42 issues were unchanged.
Turnover on Monday amounted to P6.80 billion as 1.13 billion switched hands, lower than the P8.50 billion worth traded on Friday.
Foreigners continued to purchase shares, with net buying yesterday totaling P985.89 million, surging from the previous session’s net inflow worth P228.90 million.
By Janina C. Lim, Reporter