PSE index rises on IPO news, easing US-Iran woes
PHILIPPINE STOCKS closed higher on Monday, returning above the 6,100 line, as easing geopolitical concerns and news of planned listings lifted investors’ mood.
The Philippine Stock Exchange index (PSEi) jumped by 1% or 61.17 points to close at 6,133.41, while the broader all shares index went up by 0.67% or 22.61 points to end at 3,352.96.
“The PSEi ended higher as market sentiment improved following fresh initial public offering (IPO) developments. Investors showed renewed optimism as they monitored new market opportunities and corporate activities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
VITRO, Inc., the data center arm of PLDT Inc., has filed for what could become the country’s first digital infrastructure real estate investment trust IPO, seeking to raise up to P24.2 billion.
Separately, Mynt, Inc., the operator of e-wallet giant GCash, filed a registration statement with the Securities and Exchange Commission and an application with the Philippine Stock Exchange for a planned listing in the fourth quarter. It said the offer could raise as much as P92.3 billion.
“The local market extended its rise as the US and Iran immediately agreed to halt their military force exchange and resume talks after tensions rose over the weekend,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
Iran and the United States agreed to halt recent hostilities in the Gulf and renew talks regarding their dispute over the Strait of Hormuz, a US official said on Sunday, raising hopes of saving an interim peace deal that was under pressure from days of tit-for-tat strikes, Reuters reported.
A return to diplomacy would follow several days of strikes and counterstrikes since an Iranian projectile hit a cargo vessel in the Strait of Hormuz on Thursday, with both the US and Iran accusing the other of breaking an interim ceasefire that was agreed to on June 17.
Four out of six sector indices closed higher on Monday. Financials rose by 1.85% or 34.60 points to 1,901.69; holding firms increased by 1.14% or 50.22 points to 4,434.37; services went up by 0.92% or 29.35 points to 3,200.98; and industrials climbed by 0.64% or 53.23 points to 8,374.95.
Meanwhile, mining and oil fell by 1.53% or 219.71 points to 14,141.74, and property dropped by 0.25% or 4.84 points to 1,884.70.
Advancers beat decliners, 96 to 75, while 70 names were unchanged.
“Globe Telecom, Inc. was the day’s index leader, jumping 6.94% to P1,925. This comes amid GCash parent Mynt’s planned IPO. Semirara Mining and Power Corp. was the main index laggard, falling 3.96% to P23.05,” Mr. Tantiangco said.
Value turnover went down to P5.18 billion on Monday with 861.45 million shares traded from the P8.52 billion with 808.34 million issues on Friday.
Net foreign buying was at P311.20 million, a turnaround from P481.57 million in net selling in the previous session. — Alexandria Grace C. Magno
