PSE IN HUGE DROP
The Philippine Stock Exchange (PSE) suffered a huge decline today with the bank stocks bearing the brunt of the big sell-down as the country grapples with the mounting fear from the business community following the Congressional thumb down of the attempt of TV giant ABS-CBN for a new franchise.
Save for one, all the actively traded stocks, 20 in all, closed lower and were in negative territory for much of the trading resulting in a 156.30 point or 2.53 percent decline to 6,016.51 points with the value turnover at P7.28 billion.
Losers were more than three times higher than the gainers, 166 to 48 shares with 32 issues unchanged as the full impact of the untimely closure of the broadcast giant reverberated In the offices of stockbrokerage houses who had to field calls from distraught investors on the state of the market.
The banking stocks suffered the most while even GMA 7, which is supposed to benefit from the non-transmission of ABS CBN also retreated losing 41 centavos to close at P5.77 on a lower value turnover of P32.07 million.
BDO Unibank, Bank of PI, Metrobank, Security Bank and RCBC posted losses as the news of Senator Imee Marcos proposal for a vehicle to bur the problematic loans of the banking system sank in among investors.
Senator Marcos, citing the Bankers Association of the Philippines’ data said that non performing loans of the banking system could hit 20 percent from five percent due to the Covid 19 pandemic which ravaged many businesses, many of which had loan exposures from banks.
Market darling Merry Mart closed 14 centavos lower to P2.51, one of the top 20 most active stocks which finished in negative territory. Only SM Prime rose by 10 centavos to P31.70 , the top gainer, with total trade of P773 million.
All 19 others of the most active stocks fell by the wayside as the continuing surge in the coronavirus and the looming lockdown in some Metro Manila places converged on the negative sentiment that the closure of the ABS CBN foisted on the investment community.
SM Investments lost P24, Ayala Land, down P1.50; PLDT and Globe Telecom respectively losing P8 and P56. The other losers were Metro Pacific which declined by 19 centavos, JG Summit by 90 centavos, Jollibee by P3.80, Universal Robina by P5.50, ICTSI by P3.55, Dito, by P11 centavos, Meralco by P8.20 and Altus Property by 10 centavos.