Philippine Stocks: Aboitiz, JG Summit, Jollibee, SM Prime
The Philippine Stock Exchange Index increased 1.2 percent to 4,002.88 at the 12 p.m. close in Manila, ending a six-day losing streak.
Aboitiz Equity Ventures Inc. (AEV PM), which has investments in banks and power companies, climbed 2.8 percent to 38.05 pesos. The company said it agreed to sell its 77.2 percent stake in shipping unit Aboitiz Transport System Corp. (ATS PM) for $81.1 million. Aboitiz Transport advanced 5 percent to 1.90 pesos, the highest since Nov. 23.
JG Summit Holdings Inc. (JGS PM), which has investments in property, airlines and food manufacturing, advanced 5.1 percent to 22.60 pesos, snapping a six-day, 19 percent loss. The company will start building a $500 million naphtha cracker plant in January, Philippine Star reported, citing Board of Investments managing head Cristino Panlilio. JG Summit President Lance Gokongwei couldn’t be reached in his office for comment.
Jollibee Foods Corp. (JFC PM), the nation’s biggest fast- food company, climbed 2.6 percent to 80 pesos, the steepest advance since Nov. 19. The company said Mang Inasal Philippines Inc., a restaurant chain it acquired, posted a 151.7 million peso ($3.47 million) six-month profit.
SM Prime Holdings Inc. (SMPH PM), the largest Philippine shopping mall operator, gained 11 percent to 11.08 pesos after tumbling 12 percent yesterday as two companies were added to the MSCI Philippines Index. SM Investments Corp. (SM PM), parent of SM Prime, rose 5.2 percent to 510 pesos, rebounding from yesterday’s 7.7 percent loss.
Yesterday’s “sell-off was triggered by a portfolio realignment as the changes in the MSCI Philippines Index took effect,” said Alex Pomento, an analyst at Macquarie Group Ltd. “The decline wasn’t warranted because these are some of your steadiest companies in terms of earnings and cashflows.”
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