• Telecom deal energizes stocks

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    THREE factors, two of them external, gave the Philippine stock market new energy and pushed the Philippine Stock Exchange Index (PSEi) up 99.19 points or 1.34 percent to close at 7, 500.79, and lifted the broader All Shares 46.35 points (1.05 percent) to fish at 4, 479.17.

    The key factor that boosted trading on the local burse was the country’s two telecom giants—the Philippine Long Distance Telephone Co (PLDT) and Globe Telecom Inc—acquiring for P70B the 700-megahertz frequency spectrum that San Miguel Corp held.

    Victor Benavidez, the general manager of Alakor Securities Corp., attributed the deal that PLDT and Globe concluded with SMC as a key factor support the market. “The big boards are the ones getting stronger. I think the deal with PLDT and Globe boosts confidence in the market, it is a building process for the whole market. Thus, the market translated the deal into improved prices,” Benavidez said.

    TEL gained 2.37 percent and closed at P1, 945 apiece, while GLO advanced by 166 percent to end the trading day at P2, 450 a share. SMC, however, dipped by 2.74 percent and was last traded at P79.75 apiece.

    Also energizing the local market as well as on markets in Southeast Asia was the news that manufacturing in China expanded for the third consecutive months. At the same time, investors have also become skeptical about the interest rates in the United States rising this month or in July and dampening the mood of the market.

    According to Jonathan Latuja, “mixed economic data in the US amid higher consumer spending but unexpectedly lower consumer confidence and declines in Chicago manufacturing made investors rethink the US economy’s strength to withstand a Fed rate hike.”

    Total turnover was P8.17 billion with winners prevailing over losers, 104 to 73, while 56 issues remained unchanged.

    All sub-indices concluded the day with higher prices, except for the mining and oil sector which shed half a percent, while property firms enjoyed the highest increase with 1.70 percent, followed by the services sector where TEL and GLO belonged with 1.54 percent.

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