Stocks of the Ayala family and Salim-Metro Pacific Group surged by 14 percent a day after President Rodrigo Duterte made peace with them, five months after insulting and threatening to take over their respective water utilities.
Ayala Corp. jumped 15 percent to P642.50 on May 5 from P560 the day before. Metro Pacific Investments Corp. climbed 13 percent to P2.85 from P2.51 on May 4.
BDO Capital president Eduardo V. Francisco described the President’s apology as a “positive signal.”
“That actually brightened the market. This shows that if the regulatory environment is positive, the companies will perform well,” said Francisco in an interview with ANC.
In a late night briefing on May 4, Duterte said he hs softened his stance on Ayala and Salim-Metro Pacific after their tremendous generosity in helping feed and ease the pain of millions of Filipinos during the lockdown.
“Naubos na yung pagka-suplado ko, the COVID humbled me with the kind of response you gave. It’s a humbling experience also for me, baka kailangan mo rin sila balang araw….Yung mga masakit kong salita to the Ayalas and si (Manny) Pangilinan, I apologize for the hurting words,” said Duterte.