Philippine shares traded higher on Monday as investors snapped up financials and market debutante DoubleDragon Properties, sending the benchmark index to its highest close in more than five months.
Investors largely ignored the widespread correction on Wall Street on Friday, choosing to focus instead on selected corporate news.
“The local market started the week on a positive tone, brushing off a triple-digit, more than 1.0 percent slide in US stocks Friday and defying its peers in the wider Asian region. The DoubleDragon debut may have changed the IPO narrative over the recent years,” said Justino Calaycay, analyst at Accord Capital Equities Corp.
DoubleDragon’s listing on the Philippine Stock Exchange on Monday stirred up buying interest, with the stock opening P2.40 per share from its initial public offering price of P2 each. The stock closed at P3 per share, 50 percent higher than its offer price.
The Philippine Stock Exchange index (PSEi) settled at 6,614.40, up 53.20 points or 0.81 percent, while the wider all shares rose 20.13 points or 0.51 percent to 3,969.40.
The last time the market closed above the 6,600-level was on October 23, 2013 when the benchmark index ended at 6,635.11.
“Share prices jumped off the opening bell and slowly inched towards the 6,600 [mark], breaching the line half an hour before the noon recess, and spent the rest of the way parrying the bears’ threat to pull it under,” Calaycay said.
“The bulls did give up some ground since peaking intra-day at 6,617.29, but attracted sufficient support to keep close above 6,600 for the first time since October 23 last year—and it’s highest in nearly six months,” he added.
Majority of the sectoral indices registered gains except for mining and oil, down 57.23 points or 0.39 percent at 14,722.30, and property, down 1.15 points, or 0.04 percent at 2,610.47.
Financials were in demand, up 30.36 points or 1.98 percent to end at 1,563.64, followed by holding firms, which rose 35.46 points, or 0.60 percent to 5,996.01, while industrials advanced 57.56 points, or 0.57 percent to 10,099.98.
A total of 726 million shares changed hands on Monday, valued at P6.9 billion. Gainers topped losers, 87 to 77.
Some of the top gainers were newly listed DoubleDragon Properties, Corp. whose price surged by 50 percent to P3 per share; Bank of the Philippine Islands, which went up by 4.49 percent to P92 per share; BDO Unibank Inc., whose share price increased 1.46 percent to P87 apiece; Metropolitan Bank and Trust Co., which climbed 2.34 percent to P80.85 per share; and International Container Terminal Services Inc., which went up 2.04 percent to P110.00 per share.