Stocks sustain uptrend as buying spree resumes

MANILA, Philippines — The local stock market continued to move up yesterday as investors resumed their buying spree, traders said.

The benchmark Philippine Stock Exchange  index or PSEi  finished at 7,080.62, up 71.06 points or 1.01 percent, while the broader All Shares gauge rose 22.42 points or 0.53 percent to close at 4,222.09.

All the other gauges went up as well, led by holding firms and property.

Total value turnover reached P8.8 billion. Market breadth was negative, 116 to 108, while 39 issues were unchanged.

“The PSEi continued higher as it drew momentum from the big move that we saw in the previous session. It started the day slightly lower but then a pickup in buying pressure pushed prices higher. Blue chip property and holding firms continue to lead the market’s gains. We may start to see it move sideways in the coming trading sessions as enthusiasm wears off,” said Chris Mangun of AAA Southeast Equities.

In terms of specific issues, Cebu Landmasters Inc. said its board of directors approved the issuance of stock dividends amounting to 122 percent of its current outstanding shares. This represents 1.9 billion common stocks to be issued from the company’s unrestricted retained earnings as of Sept. 30.

“This move allows us to increase the equity capital base of the company without the need for raising cash from current shareholders,” said Grant Cheng, the firm’s chief financial officer.