A recent surge in global equity markets pushed local share prices higher on Monday, sending the main index above a key resistance level once again. The PSEi benchmark index rose 34.48 points, or 0.83% higher from Friday, to close at 4,201.08 on increased trading volume. Total value turnover went up to PhP4.5bn, or 67% higher from the last session’s figure, but a shade below this year’s daily average value turnover of PhP4.7bn, as investors took advantage of rising optimism in the market. Overall market sentiment however was less rosy as decliners outnumbered advancers 77 to 75 with 28 issues remaining unchanged. Sectoral averages ended the session in the positive led by Services and Mining & Oil related stocks.

Greenery Holdings, Inc. (GREEN) said it has approved the initiative to negotiate for the acquisition of Isabela Alcogas Corp., an ethanol producer in Misamis Occidental. It also agreed to team with China’s Tianjin Tianbao Investment for the development and funding of renewable energy projects in the country. Neutral.

Philippine Long Distance Telephone (TEL) confirmed that it intends to keep the Sun Cellular brand and its unlimited-type of mobile services once the TEL deal to acquire Digital Telecommunications (DGTL) is finalized. It has been reported that the teleom regulators (NTC) might require that Sun’s unlimited-services be maintained in order to protect public interest. Buy on weakness for TEL. Neutral for DGTL.

Petron Corp. (PCOR) reported a net income of PhP1.56bn in 3Q11, 14% lower from the same period last year. Sales volume for the quarter decreased by 7% due to weaker demand following the series on oil price hikes this year. For the nine-month period ending September, PCOR posted a net income of PhP7.6bn from revenues of more than PhP201.0bn. While PCOR’s 3Q income growth has slowed, its still on track to meet its forecast earnings of PhP8.9bn. Details of its quarterly earnings to follow. Buy on weakness.

Metro Pacific Investments Inc. (MPI) has entered into an agreement with its affiliate, Medical Doctors, Inc., to acquire 100% of Colinas Verdes Hospital Managers Corp (CVHMC). Colinas Verdes, which is a subsidiary of Medical Doctors, has a lease agreement with Philippine Realty Corp. (PRC) to operate the Cardinal Santos Medical Center in San Juan. MPI will buy CVHMC from MDI for PhP300m including its debt to PRC. The deal will enable MDI to focus on the upgrade of its main hospital Makati Medical Center while clearing the way for the expansion of hospitals under CVHMC. MPI’s Hospital Group also include Our Lady of Lourdes in Manila, Riverside Medical in Bacolod City and Davao Doctors Hospital in Mindanao. Long-term Buy.

Most of the traders currently plays on sideways, anticipating that due to this coming long weekend... there will be a slight shakes or correction. All are ready awaiting to catch another falling knives. Price resistance break-out also speculated, if that could happen, we can have a Merrier Christmas on next two months.

Good Luck, Kabayan.

Angat Pinoy!