Positive sentiment over fiscal stimulus talks in the United States continued to spill over to the local stock market, with the Philippine Stock Exchange index (PSEi) rising to the 6,300 level.

The PSEi is on its 4th day in the green, gaining 1.05% on Thursday, October 22, which, so far, places the local bourse ahead of other stock markets in the world for this week.

“The PSEi continued its strong run-up on continued stimulus noise with [Nancy] Pelosi indicating progress on a deal. Nancy Pelosi and Steve Mnuchin may be close to a stimulus deal. The House speaker said she ‘has a prospect for an agreement’ with the treasury secretary, but it may not come together in time to pass before the November 3 election,” said Luis Limlingan of Regina Capital.

Net foreign buying stood at P214 million.

Most sub-indices continued to gain value, except for services and financials shedding 0.4% and 0.8%, respectively.

However, 13 or almost half of the blue chips were in the red, led by Ayala-led Bank of the Philippine Islands, as it lost 3.7% after reporting a 33.7% earnings drop in the 3rd quarter amid rising bad loans.

Its sister company, Ayala Land, was still the most actively traded stock on Thursday, gaining over 3%.

More than 1.276 billion shares valued at P9.8 billion changed hands. Decliners led advancers, 112 to 100, while 43 were unchanged.

Corporate news

Belle Corporation – The company reported a 96% drop in earnings in the first 9 months of 2020, posting only P93 million from the P2.56 billion it earned in 2019.

Consolidated revenues were down by 50% to P2.91 billion due to low tourist arrivals amid the coronavirus pandemic. (READ: No-touch faucets, rapid tests: Big business adjusts to coronavirus)

Belle’s primary growth driver, its share in the gaming revenues at City of Dreams Manila, declined by 86%, from P2.38 billion in the first 9 months of 2019 to P325 million in the first 9 months of 2020, as gaming operations were either suspended or substantially limited from mid-March through September.

Pacific Online Systems Corporation, which leases online betting equipment to the Philippine Charity Sweepstakes Office for lottery and keno operations, saw its revenues fall by 71% to P221 million from P766 million. Belle’s subsidiary, Premium Leisure Corporation, owns 50.1% of Pacific Online.

Cebu Landmasters – The property developer posted P10.5 billion in reservation sales in the first 9 months of the year, representing a 14% increase.

The company said it is set to surpass its 2019 sales performance despite the coronavirus pandemic.

“Demand for CLI (Cebu Landmasters Incorporated) housing has remained strong despite the pandemic. And, we attribute this to our focus in meeting the needs of our buyers in each of the 15 key VisMin cities we serve in terms of product, service, and pricing, and making use of our wide sales and construction networks throughout the region,” CLI executive vice president and chief operating officer Franco Soberano said.

With an average price of P2.6 million per unit, Cebu Landmasters has sold 4,000 units to date, making it the largest residential developer in the Visayas and Mindanao.

Global Ferronickel – It is set to construct its $5-million rebar steel rolling plant in Mariveles, Bataan, in the 1st quarter of 2021.

Once commercial operations are underway in 2022, the facility is estimated to have an annual output of 600,000 tons of steel bars.

“We would have wanted to begin construction this year but it has been delayed due to the pandemic, specifically the imposed travel restrictions as some of our technical experts are based abroad,” said Global Ferronickel president Dante Bravo. – Rappler.com