Mad rush for GCash: Globe rockets to new all-time high, market cap nears P400B
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Mad rush for GCash: Globe rockets to new all-time high, market cap nears P400B

The Ayala-controlled Globe Telecom (GLO) ruled the Philippine Stock Exchange as it posted double-digit gains for the second straight day.

GLO rose 13.38 percent to a new all-time high of P2,948 (intraday high of P2,994) on P1.614 billion worth of trades (net foreign buying of P592 million).

RELATED STORY: GCash smash: Globe shoots up 14%, nears all-time high

GLO’s previous historic high was P2,704 in May 2015.

COL Financial research chief April Tan said the mad rush for GLO continued for the second straight day after a foreign broker raised its target price after increasing its fair value estimate on GCash (GLO owns 40 percent of Mynt which owns the wildly popular e-wallet).

GLO’s explosion was contagious as PLDT (TEL) and Converge joined the sector’s rally.

The three index heavyweights accounted for 40 percent of total turnover Thursday.

Abacus research head Nicky Franco had tabbed GLO a buy as early as two weeks ago (when it was still trading at P1,950) because Mynt was “mispriced” compared to Indonesia’s leading e-wallet OVO.

Franco reckoned GCash could easily reach $2 billion or double unicorn status it decided to do an initial public offering this year.

He said the decision of management led by president and CEO Ernest Cu to prioritize expansion over profitability could enable Mynt to fetch a higher valuation.

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