Shares up as Duterte changes tone on water firms
By Denise A. Valdez, Reporter
THE PHILIPPINE market emerged as one of Asia’s best performers on Tuesday as the main index bounced back on the president’s apology to listed water concessionaires.
The 30-member Philippine Stock Exchange index (PSEi) gained 99.58 points or 1.78% to close at 5,671.67 yesterday. The broader all shares index also added 38.68 points or 1.14% to 3,424.98.
“Positive comments from President Duterte in his speech (Monday night) toward several business leaders improved the general sentiment and increased optimism, pushing the PSEi higher today,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail yesterday.
“(Tuesday’s) gains wiped out almost all its losses from (Monday). Investors cheered the renewed cooperation between government and the private sector which overshadowed concerns of geopolitical tensions abroad,” he added.
President Rodrigo R. Duterte apologized to the Zobel brothers and Manuel V. Pangilinan on Monday as he said the coronavirus disease 2019 (COVID-19) pandemic has humbled him.
He also said he is “ready to talk” and “will be reasonable,” alluding to the government’s rift with Manila Water Co., Inc. and Maynilad Water Services, Inc. regarding their water contracts.
Manila Water is under Ayala Corp. (AC), while Maynilad is majority owned by Metro Pacific Investments Corp. (MPIC), listed companies led by the Zobels and Mr. Pangilinan, respectively.
Following Mr. Duterte’s remarks, shares in AC, MPIC and Manila Water surged on Tuesday, ending the session belonging to the market’s top five gainers with a growth of 14.73%, 13.55% and 12.05%, respectively.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said the movement of AC and MPIC stocks were “above 20-day moving average volumes showing that there’s conviction in the rally of these stocks.”
Most sectoral indices closed in green territory on Tuesday: holding firms jumped 177.29 points or 3.29% to 5,560.85; industrials rose 154.23 points or 2.11% to 7,454; property gained 38.95 points or 1.35% to 2,912.92; financials picked up 3.45 points or 0.29% to 1,167.49; and mining and oil added 2.18 points or 0.04% to 4,625.57.
The sole declining index was services, which fell 1.17 point or 0.08% to 1,350.48.
Value turnover stood at P6.43 billion with 619.49 million issues switching hands, up from P5.11 billion the day prior. Advancers beat decliners, 118 against 74, while 38 names ended unchanged.
Foreign investors snapped their 33-day selling streak, with the market recording a net foreign buying of P86.52 million yesterday. “It is not much but it ends more than 20 days of consecutive net selling,” Mr. Mangun said. “We may see the main index move higher in the following days and test resistance at 5,850-6,000.”
