PSE DOWN A BIT IN LETHARGIC TRADE

The Philippine Stock Exchange was down a bit today closing  8.13 points or 0.13 percent to 6,068.78 points in lethargic trade as investors took a wait-and-see stance resulting in just P5.764 billion in total value turnover with decliners overwhelming gainers, 104-73 with 62 shares unchanged.

Bargain hunters pushed up the index at the close after it flirted with a below-6,000 point milestone level as it hit a low of 6,012.14 points as foreign investors continued their selling pressure on account of the unabated increase in COVID-19 patients and the looming economic whiplash for the country.

Foreign selling amounted to P2.575 billion as against foreign buying of P2.0868 for a net foreign selling of P488 million with Ayala REIT (AREIT) transacting P145 million in sales attributed to foreign investors. The issue, which had an IPO late last week, debuted below its P27 price though it was the most active stock finishing with a P1.85 increase from Friday to close at P25.95.

Areit benefitted from the company’s disclosure of a two-step dividend amounting to 51 centavos to payable on September 15. It also disclosed to the PSE today that it is registering a P15 billion bond flotation.

JG Summit also posted a gain of P2.70 to close at P64.00 following its disclosure of a five percent stock dividend which will be up for approval in a special stockholders’ meeting set October 20 and to be done remotely.

Also subject of foreign selling were GT Cap with P14 milion; PureGold, P83 million; Semirara Mining, P31 million; Metrobank, P12 million and San Miguel Food and Beverage, P12 million.

SM Investments had foreign buying of P166 million, which was the subject of a cross sale, meaning that a broker did the buying and selling transaction. The other shares that were bought by foreigners include Alliance Global, P30 million; PLDT, P18 million; First Gen, P7 million and SM Prime, P7 million.

The property and holding subsectors posted gains while the services, financials, mining and oil and industrial sub sectors posted losses.

Telco stocks PLDT and Globe Telecom posted respective losses of P2 and P18 to close at P1,348 and P2,118 while Dito posted a gain of 14 centavos to P3.24.

The prevailing negative sentiment from foreign investors stem from the projections by economists that the country may contract higher than the government target after the 16.6 percent GDP decline in the second quarter, considered a huge drop.