PHILIPPINE STOCK EXCHANGE IN EUPHORIC RISE ON DUTERTE APOLOGY
The stock market surged today with a euphoric rise on the implications to business of President Duterte’s apology pushing the index upward until profit taking stalled its subdued surge to close at 5,671.67 points up 1.79 percent.
Both Manila Water (up 12.05 % to P11.72) and Metro Pacific, (up 13.85% to P2.85 ) benefitted from the market’s optimistic sentiment opening at a much higher share from their yesterday’s closing price much like the other shares.
MWC and MPI earlier bore the brunt of the President’s outbursts before, tumbling down to new lows with the MWC going below its IPO price of P6 before as investors greeted the apology with total trade of P6.43 billion.
But Ayala Corp benefitted the most with a huge 14.73 percent rise to close at P642.50 per share on total transactions of P939.89 billion which is 14 percent of the total trade. AC opened up by P16 immediately and went to as high as P647.50 before market punters cashed in their gains.
Diversified Securities’ Jose Ricardo Garcia said at the opening bell, investors had a mad rush for stocks, especially those deemed to benefit from the impact of the apology as gainers outpaced losers, 118 to 74 with 38 unchanged .
Even Ayala Land gained P1.40 at the close with its share price at P33.20 on total trade of P461.29 million. It opened 20 centavos higher to P32 per share, hit a high of P33.35 before investors took in their profits.
Many of the share prices opened higher , went up some more before the sell-down in the last 30 minutes which saw total trade at almost P2 billion worth of shares.
The apology of Duterte was deemed significant in the light of the country’s attempt to woo manufacturing plants that would get out of China because of the looming trade war between USA and China.
Duterte made the heartfelt apology as he praised the businessmen for the huge help they are in tis pandemic challenge and even invited the Ayala brothers and Manny Pangilinan to discuss the legal issues on the water contracts.
"We have always believed in building a strong partnership between the private and public sectors in addressing our country's problems and in investing in the country to create jobs and improve the lives of Filipinos," the Zobels said.
For his part, Pangilinan tweeted shortly after Duterte’s speech that " our group is fully committed to being a partner of government in addressing the heartbreaking moments of COVID-19 on our people, in building a better tomorrow for them. “