Shares of BDO Unibank Inc., the Philippines' largest bank, and parent SM Investments Corp. spiked in the last five minutes of trading in Manila, driving both stocks to records.
BDO ended the day with an 8 percent jump, while SM Investments climbed 3.4 percent. BDO and SM Investments were the two biggest contributors to the benchmark Philippine Stock Exchange Index's 1.6 percent advance today. The gauge closed at an all-time high of 6,721.45.
End-of-month re-balancing by fund managers to book higher net asset values may have caused sharp gains in both stocks, according to Alex Pomento, Manila-based strategist at Macquarie Group Ltd. Philippine Stock Exchange President Hans Sicat couldn’t be reached at his office for comment.
“Some fund managers push key stocks they are overweight on to boost their performance,” Pomento said by phone today.
BDO President Nestor Tan said in a mobile-phone text message that he isn’t aware of any reason for the price surge. The shares may have climbed because of “new demand” generated by a two-day investors conference held by UBS AG in Manila, SM Investments Senior Vice President Cora Guidote said.
Trading volume in SM Investments and BDO shares today was more than double the three-month daily average, according to data compiled by Bloomberg.