Stock market up 0.71% on EDC, FGEN lift

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Share prices rose on Friday with the benchmark index back at the 7,900 level, with an analyst attributing the rise to news that Lopez-led First Gen Corp. was selling a stake in unit Energy Development Corp.

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The bellwether index added 56.16 points or 0.71 percent to close at 7,932.82. The broader All Shares climbed 19.81 points or 0.42 percent to 4,734.38.

“The market was up … mainly due to EDC and FGEN and its tender offer,” COL Financial chief technical analyst Juanis Barredo said.

On Thursday, First Gen announced that a group on investors was planning to acquire up to 31 percent of EDC’s common shares for P14 billion.

Philippine Renewable Energy Holdings Corp. has agreed to purchase 6.6 billion common shares up to a maximum of 8.9 billion, equivalent to 23.5 percent to 31.7 percent of the EDC’s total outstanding shares.

The bidder has proposed to pay P7.25 apiece to EDC shareholders or 22.3 percent premium to the corporation’s weighted average market price of P5.93 per share over the last 30 days.

COL Financial’s Barredo said other companies had helped picked up the market, including Aboitiz Equity Ventures (up 3.38 percent), Ayala Corp. (1.85 percent), and SM Prime Holdings (1.19 percent).

“Inflation was a little higher suggesting good consumer demand. We saw advances in which helped pick the index up, [but]our index is still below major resistance of 8,136 and still needs to break over this barrier to return into an uptrend,” Barredo added.

Investors, Summit Securities Inc. President Harry Liu said, remain in wait-and-see mode.

Nearly all market indices were in the green on Friday, except mining and oil that fell by 0.10 percent.
Over 945 million shares changed hands, valued at P6.3 billion.

Decliners outnumbered advancers, 101 to 93, with 50 issues unchanged.

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