Alliance Global Inc. (#AGI) Buy-back program worth PHP5B shares over a 2 year period that started Sept 20th have added to the positive sentiments for the company as it added about a little over 680,000 shares more from the recent day. Likewise, it has been made clear of Emperador's buy back program which started in 2013 over a two year period for the company. Other business units of AGI has made good with their respective target revenue earnings the first half of the year at 39% YOY to PHP10.1B driven by its property and food business.
Share buy-backs are quite common in the market place as companies boards at times see that their respective share prices remain undervalued. It the case of PLDT's (#TEL Shares) recent buy back program is to provide the company executives as part of their incentives program. There will be a continuing effort of buy back programs with other companies in the coming years which in one way or the other do affect company share prices as they are announced and implemented in the course of the period covered.
Price adjustments are made and thus affect the flow of activity in the market once it is even announced. This reports and recent activity have increased market volatility especially once the major benchmark of the PSEI would carry a new or delisted company component in the PSE Index as it draws and make necessary adjustments on their respective weighted average and distribution among industry sector categories.
Thus these changes are made clear by the Philippine Stock Exchange announcement that serves the best interest of the investing public for local or foreign direct investments engaged with these companies being publicly traded worldwide. A very good move for the entire Philippine economy.
The last minute rally from the pm session has again proved to be placing the PSEI back to positive territory as it closed the day of Sept 27, 2017 above 8221 level.
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