GSIS goes on buying spree of blue chips

MANILA, Philippines – Armed with P45 billion in investible funds, the Government Service Insurance System (GSIS), the state-owned pension fund, has embarked on a buying spree of select blue chips the past several weeks after unloading the bulk of its investments last year and in 2007.

GSIS president and general manager Winston Garcia said the agency is very liquid and can invest as much as P45 billion to again build up its investment portfolio in the local stock market.

Garcia said the agency is looking at lucrative stocks including Philex Mining Corp., San Miguel Corp. and even all the companies owned by the Lopez Group, the family which was once touted as his nemesis.

“All companies of the Lopez Group are good investments. They’re making so much money now and also because they have pared down their debts,” he said.

Garcia said the idea is to accumulate stocks and sell these again at a premium, which can happen next year just before the 2010 elections.

“We have no emotional attachments to our investment. We can sell it once the price is good,” he said.

Traders said Garcia may be building up his stock market holdings in anticipation of the future corporate battles between Manuel Pangilinan of Philippine Long Distance Telephone Co. and Ramon Ang of San Miguel Corp.

For instance, Pangilinan chairs Philex Mining, a listed copper and gold firm, but there are speculations that Ang may also target Philex by buying the shares of the Social Security System (SSS).

Shares of Philex rose to P13.25 per share yesterday from P12.75 on Wednesday.

Garcia did not want to reveal how much investments he plans to make in the market this year and which specific companies but he said that his usual practice is to sell it again at a premium.

“We don’t want to telegraph our moves because we don’t want an artificial increase in prices but definitely, we will be building up our portfolio,” Garcia said.

He said the bottom line is to generate more funds for GSIS’ roughly 1.5 million members.

“What’s important is to grow the money of our members,” he said.

In October last year, GSIS sold its shares in Meralco to San Miguel for P30 billion or at a premium of roughly P12 billion. –Iris C. Gonzales (The Philippine Star)