PSEi in new high on financial-sector boost

Published on Wednesday, 21 November 2012 21:23

Written by Miguel R. Camus / Reporter

Philippine stocks touched a new high on Wednesday once again led by gains in the financial sector.

The benchmark Philippine Stock Exchange index (PSEi) added 0.61 percent to 5,534.18 on Wednesday, breaking the previous day’s high of 5,500.58. This is the 27th time the benchmark measure—one of best performing in the region this year—hit a record high.

The Senate also approved the so-called sin-tax bill, which will raise excise taxes on cigarettes and alcohol. Government officials said the bill, which now goes to the bicameral conference committee, could increase the government’s revenue by another P40 billion and help the Philippines attain investment-grade rating.

As mentioned, the financial subindex, up 1.72 percent, led gains among subcounters as excitement spread over a prospective merger between Ayala-led Bank of the Philippine Islands and Lucio Tan’s Philippine National Bank and Allied Bank (See banner story).

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These banks went on voluntary trading halt. BPI owner Ayala Corp. was up 4.90 percent to P487.80 per share and was among the session’s most actively traded issues. Henry Sy’s BDO Unibank Inc., the country’s largest lender and rival of BPI, also gained 1.32 percent to P69.20 per share.

All other subcounters ended positive, except for the industrial and property sectors, which dipped 0.16 percent and 0.21 percent, respectively.

Foreign buying also surged on Wednesday as San Miguel Corp. completed a block sale of 25 million of its shares in San Miguel Pure Foods Co. Inc. that were sold at a steep discount to P240 per share mainly to offshore investors. Purefoods dropped by the maximum daily limit of 50 percent to P340 per share.

Total foreign buying jumped almost three times from the previous session to P8.5 billion, translating to a net gain of P6 billion on Wednesday.  Accordingly, volumes rose with about P14.9 billion worth of shares changing hands.

Most emerging market stocks dropped on Wednesday, after European policy-makers failed to reach a decision on Greek aid, Bloomberg News reported.

“The deadlock over the aid package highlights the fragile situation in Greece and Europe,” Jonathan Ravelas, chief market strategist at BDO Unibank Inc., said by phone. “This setback in Europe is creating uncertainty in the markets.” 

(With Bloomberg News)