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President Rodrigo Roa Duterte ROBINSON NIÑAL JR./ PRESIDENTIAL PHOTO
The local stock barometer outperformed regional markets on Tuesday as Pres. Rodrigo Duterte’s peace offer to Ayala and Metro Pacific groups eased concerns about the regulatory risk that swept through local stocks even before the COVID pandemic- 19.
Led by the double-digit rebound of conglomerates Ayala Corp. (AC) and Metro Pacific Investments Corp. (MPIC), the Philippine Stock Exchange Index (PSEi) accumulated 99.58 points or 1.79 percent to close at 5,671.67.
The most quoted company of the day was AC, which gained 14.73 percent, while MPIC recovered at 13.55 percent.
“Ayala Corp. and Metro Pacific reacted positively to the President’s friendly gesture last night. It was taken as a catalyst for a reversal of sentiment for these firms, which were the target of the president’s tirade recently, “said José Vistan, chief of research at local brokerage AB Capital Securities.
“Having the government and companies potentially now working on the same page is an advantage for the market. It lowers market risk premiums and hopefully improves the ease of doing business in the future, “Vistan said.
Outside of PSEi, Manila Water, led by Ayala, was a notable winner, up 12.05 percent.
“We saw surprising foreign inflows today with P86.52 million in net purchases. It’s not much, but it ends more than 20 days of consecutive net sales, “said Christopher Mangun, head of research at AAA Equities.
“Positive comments from President Duterte in his speech last night to various business leaders improved overall sentiment and increased optimism, pushing the PSEi higher today … Investors applauded the renewed cooperation between the government and the private sector that overshadowed the concerns of geopolitical tensions abroad, “he said. said.
Before the COVID-19 pandemic, Duterte launched a series of outrages against MPIC’s Manila Water and Maynilad, leading to the cancellation of these companies’ 15-year contract extension beyond 2022.
On Monday night, Mr. Duterte apologized to the Zobel brothers and the president of the MPIC, Manuel V. Pangilinan, for the “hurtful” words previously issued against these tycoons. The president also thanked them for helping the country during this state of national public health emergency.
The holding accountant accumulated 3.29 percent, boosted by earnings from AC and MPIC, while the industrial accountant added 2.11 percent.
The property accountant was up 1.36 percent, while financial and mining / oil accountants added less than 1 percent.
The service counter finished slightly lower.
The value rotation for the day amounted to P6.43 billion. There were 118 forwards overcoming 74 declines, while 38 stocks remained unchanged.
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