PHILIPPINE share prices closed higher on Wednesday, boosted by a strong debut by the Villar-led Golden Have Memorial Park Inc. and supported further by a recovery in the US, European, and regional markets from the initial Brexit shock.
The benchmark Philippine Stock Exchange Index (PSEi) gained 1.72 percent or 131.84 points to close at 7,798.53, while the broader All Shares added 2.18 percent or 99.53 points to settle at 4,666.81.
Victor Benavidez, general manager of Alakor Securities Corp., said domestic stock market investors have realized the country would be little affected by the Brexit, given the Philippines’ relatively small trade and investment exposure to the United Kingdom.
“This rally shows that the Philippines is not dependent on the possible negative impact of Brexit,” Benavidez said.
Benavidez pointed out that the Villar Group’s Golden Haven Memorial Park Inc.’s debut on the main board also boosted the local bourse, and was a signal that companies that intend to go public may now take advantage of favorable market conditions.
Golden Haven debuted at P11 per share and closed at its day’s high of P15.74, a gain of P5.24 or 49.9 percent on volume of just more than 36 million shares. The stock was offered at an IPO price of P10.50.
“The next to debut is Cemex, which is very big. I think the market is getting its confidence back,” Benavidez added.
Cemex, a unit of Mexico’s Cemex SAB De CV, seeks to raise P39.74 billion by selling 2.33 billion shares to at an indicative price of P17 apiece.
The multinational Cemex is a building materials company and is present in more than 50 countries.
Of the IPO shares, P10.36 billion will be sold to the domestic market and P24.19 billion to foreign investors.
The IPO is poised to be one of the biggest fund raising activities in the country via the PSE.
Total value turn over Wednesday was average at P7.5 billion, with winners outpacing losers 66 to 28, and 48 issues unchanged.
All sub-indices closed in positive territory led by the holding firms with a 1.93-percent gain.