The Philippine Stock Exchange index (PSEi) climbed to a 2-month high as investors hoped the government would further relax coronavirus restrictions and further open up the economy.

The PSEi went up by 1.55% to 6,112 on Tuesday, October 20.

Twenty of the 30-member PSEi gained value, 8 slightly lost, while 2 stayed flat.

“Conviction was seen in Tuesday’s trading with net value turnover reaching P8 billion, above the year-to-date average of P5.9 billion,” said Japhet Tantiangco of Philstocks.

Net foreign selling, however, continued on Tuesday, posting P718 million. Outflows have been running for 28 straight days, averaging P727.4 million.

Overall, gainers trumped losers, 112 to 98, while 46 were unchanged.

Jollibee was the most actively traded stock on Tuesday, with 3.9 million stocks valued at P660 million changing hands.

The fast-food giant gained 9%, on the same day it announced that it increased its stake in Michelin-starred dim sum restaurant Tim Ho Wan.

Optimism, however, seems to come mainly from management itself, as its affiliate, Hyper Dynamic Corporation, has been buying Jollibee shares since September.

Hyper Dynamic holds at least 275 million Jollibee shares.

Bank of the Philippine Islands (3.1%), BDO Unibank (2%), GT Capital (6%), and Ayala Land (5%) were also among the most actively traded.

Mining and oil snapped gains, losing 4.6%. Manny Pangilinan’s PXP Energy lost 11.2%.

Roberto Ongpin’s Atok-Big Wedge was the biggest loser, falling sharply by 21.7%.

PXP Energy and Atok-Big Wedge’s sharp declines come after their huge leaps amid news that the government lifted the moratorium on oil exploration in the West Philippine Sea.

Both companies, so far, have not disclosed anything substantial regarding the development.

Corporate news

Security Bank – Thailand’s Bank of Ayudhya completed all requirements to acquire 50% of SB Finance Company, Security Bank’s consumer finance subsidiary. 

Shares of Security Bank went up by 1.2%.

PH Resorts – The Dennis Uy-led company gained over 28.7% ahead of its follow-on offering set for October 21 to 26.

Minimum subscription is at 10,000 shares at a discounted price of P1.68 apiece. Listing date will be November 5.

PH Resorts will use the funds raised for its luxury resort and casino in Cebu.

The PSE has placed PH Resorts on voluntary trading suspension from October 21 to November 4 in view of the follow-on offer.

AllHome – Manny Villar’s AllHome said its total network now stands at 47.

It identified 2 more stores to open in 2020.

“These new AllHome stores will be built closer to residential communities as more and more consumers deem it a priority to lessen movement and shop closer to home,” Villar said. – Rappler.com