Stocks advance on Golden Haven IPO, oil’s gain

LOCAL EQUITIES rebounded near the 7,800 mark on Wednesday, as this year’s first initial public offering (IPO) boosted trading amid the recovery in markets abroad.

The barometer Philippine Stock Exchange index ( PSEi) gained 131.84 points or 1.72% to close at its intraday high of 7,798.53. The broader all-shares index also climbed by 99.53 points or 2.17% to 4,666.81.

“Most of the day was concentrated on the IPO that was listed [on Wednesday],” Eagle Securities, Inc. President Joseph Y. Roxas said in a telephone interview.

Golden Haven Memorial Park, Inc., the death-care business of billionaire Manuel B. Villar, debut on the local bourse on Wednesday. The stock reached its ceiling price of P15.74 each, as investor demand pushed it 49.9% higher from its listing price of P10.50.

The upbeat trading of Golden Haven shares helped increase the market’s total value turnover to P7.56 billion from P5.14 billion, with more than 1.16 billion shares exchanging hands.

Foreign investors were net buyers at P389.95 million, reversing their net selling position of P147.85 million on Tuesday.

“The recovery in the Wall Street and optimism in the new administration pushed shares higher,” BDO Unibank, Inc. Chief Market Strategist Jonathan L. Ravelas further noted.

The rebound in global oil prices after the United Kingdom’s (UK) vote to leave the European Union ( EU) also boosted local stocks, Luis A. Limlingan, business development head at Regina Capital Development Corp., said in a separate interview.

“Locally, I think window dressing has started as the second quarter closes and, of course, President [ Rodrigo R. Duterte] will be sworn in [Thursday],” Mr. Limlingan added.

All counters ended in the green. Services posted biggest gain of 31.64 points or 1.95% to close at 1,647.83.

Holding firms, meanwhile, rose by 145.26 points or 1.93% to 7,657.35; industrials by 172.52 points or 1.46% to 11,928.37; property by 34.27 points or 1.01% to 3,404.45; mining and oil by 58.34 points or 0.52% to 11,179.45; and financials by 8.66 points or 0.49% to 1,744.97.

Advancers trumped decliners, 128 to 66, while 48 stocks ended flat.

Moving forward, investors will take direction from several developments such as the jobless claims and home sales reports from the US, Mr. Limlingan noted.

“It’s a tough call because we haven’t had this level for sometime. There’s also a overhang from the ‘Brexit,’” he added.

Southeast Asian stock markets rallied on Wednesday as the immediate impact of Britain’s vote to leave the European Union began to wane and investors wagered central banks would have to ride to the rescue with additional stimulus measures.

Aiding sentiment was data showing the US economy grew at a 1.1% annualized rate in the first quarter, rather than the 0.8% pace reported last month. —