Shares up on window dressing, increased buying

PHILIPPINE SHARES rose further on Thursday on month-end window dressing and as buying activity was boosted by increased liquidity following changes to the composition of the main index.

The Philippine Stock Exchange index (PSEi) went up by 10.84 points or 0.17% to end at 6,385.52 on Thursday, while the broader all shares index rose by 6.33 points or 0.18% to 3,419.21.

“It’s been a remarkable run for the local market so far as it posted its sixth straight day of gains on the strength of a mix of window dressing, technical buying, and institutional portfolio adjustments,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

The removal of the Aboitiz Power Corp. (AP) and Metro Pacific Investments Corp. (MPIC) from the main index resulted in excess liquidity, which boosted activity in the market, Mr. Colet added.

Effective Tuesday, Bloomberry Resorts Corp. and Century Pacific Food, Inc. became part of the PSEi, replacing MPIC and AP.

The local bourse continued to climb on “bargain hunting and as investors recalibrated their portfolios following the PSEi’s off-cycle rebalancing,”

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The market was boosted by investors redeploying proceeds from the MPIC tender offer, China Bank Securities Corp. Research Associate Lance U. Soledad likewise said in an e-mail.

Last week, MPIC told the local bourse that its tender offer had closed, with the cross date on Sept. 26 and settlement date on Sept. 28.

In July, MPIC said the tender offer price went up to P5.20 per share from P4.63 per share initially offered by the consortium, which is backed by First Pacific Co. Ltd., GT Capital Holdings, Inc., and Mitsui & Co. Ltd.

Sectoral indices were split on Thursday. Services rose by 17.47 points or 1.15% to 1,534.29; holding firms climbed by 24.04 points or 0.39% to 6,082.15; and mining and oil went up by 19.90 points or 0.18% to 10,526.57.

Meanwhile, property dropped by 5.96 points or 0.22% to 2,631.79; financials declined by 2.31 points or 0.12% to 1,862.55; and industrials went down by 3.93 points or 0.04% to 9,038.76.

Value turnover decreased to P5.17 billion on Thursday with 777.99 million shares changing hands from the P6.73 billion with 764.54 million shares seen on Wednesday.

Advancers outnumbered decliners, 113 versus 76, while 59 shares closed unchanged.

Net foreign buying stood at P194.03 million on Thursday versus the P301.32 million in net selling seen on Wednesday.

For Friday, Mr. Limlingan said investors will take their cue from US gross domestic product and housing data that were set to be released overnight.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

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