BDO, SM Investments Surge to Records in Late Philippine Trading
BDO jumped 8 percent, while SM Investments climbed 3.4 percent in the last five minutes of trading. BDO and SM Investments were the two biggest contributors to a gain in the benchmark Philippine Stock Exchange Index (PCOMP), which rose 1.6 percent to an all-time high of 6,721.45 at the close.
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. “Some fund managers push key stocks they are overweight on to boost their performance,” Pomento said by phone.
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. Philippine Stock Exchange President Hans Sicat couldn’t be reached at his office for comment.
Trading volume in SM Investments and BDO shares today was more than double the three-month daily average, according to data compiled by Bloomberg.
To contact the reporter on this story: Ian Sayson in Manila at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com