Stocks rose Monday, after the government announced it took control of most of Marawi City and following gains in the US and Europe amid fresh economic data showing the world’s largest economy posted stronger growth in the first quarter than first reported.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 18 points, or 0.2 percent, to close at 7,886.03, as three of the six major sectors advanced.
The heavier index, representing all shares, also picked up 10 points, or 0.2 percent, to settle at 4,700.14, on a value turnover of P8.6 billion. Advancers matched losers at 95 apiece, while 54 issues were unchanged.
Twelve of the 20 most active stocks ended in the green, led by hotel operator Waterfront Philippines Inc. which surged 28.4 percent to P0.86 and oil refiner Pilipinas Shell Petroleum Corp. which gained 2.8 percent to P66.
Newly listed Eagle Cement Corp. rose 2 percent on its debut at the PSE to close at P15.30 Monday from its initial public offering price of P15.
Eagle Cement chairman Ramon Ang said in an interview following the listing ceremony he expected the company’s market share to increase to 25 percent from the current 14 percent by building up production capacity.
“We should be around 25-percent market share in two to three years. By next year, we will also be number one in terms of capacity,” Ang told reporters.
Eagle Cement said from current production capacity of 5.1 million metric tons in Bulacan province, it was expecting to increase output to 7.1 million MT by early next year with the completion of a new production line.
Using proceeds from the IPO, it will also build a cement plant in southern Cebu with an initial capacity of 2 million MT.
Ang said the Cebu plant would have limestone reserves bigger than those of Bulacan facility. This means that the capacity of the Cebu plant could be expanded to keep up with significant increase in demand, he said.
Ang said Eagle Cement also continued to offer the most affordable price to consumers because of its efficient operations.
He said even with the influx of imported cement from China, Vietnam and neighboring countries, Eagle Cement would still be able to compete.
Eagle Cement president John Paul Ang said the company likely sustained a growth in the “high-teens” in the first quarter, from the fourth quarter.
Eagle Cement is the second company to conduct an IPO this year.
Meanwhile, Asian stocks were mixed amid low trading volume Monday, while the dollar held to a narrow range as investors weighed the latest comments from Federal Reserve officials on interest rates and the economy.
European stocks were little changed while South Korea’s Kospi index reversed an early gain, falling for the first time in seven sessions. The pound rose, while the rand reversed a rally after South African President Jacob Zuma survived a bid by some members of the African National Congress’s top leadership to order his removal from office.
A six-week surge in global equities pushed stocks to a record high as investors bet global economic growth can withstand higher US interest rates as soon as next month. While stocks have recovered from worries surrounding the prospects for President Donald Trump’s reform policies, 10-year Treasuries are on course for a fourth monthly advance amid concern inflation is lagging expectations.
“The U.S. economy is about as close to the Fed’s dual mandate goals as we’ve ever been,” Federal Reserve Bank of San Francisco President John Williams said in Singapore on Monday. “With the attainment of our dual mandate goals close at hand, it’s more important than ever for monetary policy to work toward what I like to call a ‘Goldilocks economy’ -– an economy that doesn’t run too hot or too cold.” With Bloomberg, AFP
