PSE Index Bombs Out

The Philippine Stock Exchange (PSE) index experienced significant losses today, with all sub-indices posting declines.

The Philippine Stock Exchange (PSE) Index, July 25, 2024

The number of losing stocks doubled that of gainers, with foreign investors emerging as net buyers.

This downturn is attributed to President Marcos' announcement regarding the termination of the Philippine Offshore Gaming Operations (POGO), which is expected to impact property firms heavily invested in this sector.

The PSE index closed at a milestone low of 6,670.27 points, a loss of 82.85 points or 1.23 percent, as it also feels the effects of the surprising dip of tech stocks on Wall Street.

Market bellwether SM Investments led the 121 losing stocks, more than double the gainers at 59, with 54 shares unchanged. Trading value was also muted at P3.98 billion, reflecting a 30 percent decline.

The mining and oil index registered the biggest loss at 3.78 percent, followed by property at 1.98 percent. Other sectors also saw declines: financials down by 0.89 percent, holding firms by 1.09 percent, services by 1.39 percent, and industrial by 0.43 percent.

Universal Robina saw a rise, increasing by 40 centavos to P117.90, one of the three listed shares that posted gains among the top 10 most active stocks, led by the losing ICTSI.

The other two gainers were Bloomberry, up by 26 centavos to P8.78, and Digiplus, up by 60 centavos to P15.50.

Foreign buying amounted to P1.72 billion, against foreign selling of P1.92 billion, resulting in net foreign selling of P205 million. Investors weighed the impact of the President's State of the Nation Address (SONA), which included the unexpected announcement to cease POGO operations by year-end.

This pronouncement, not included in the advanced version of the speech, called for the wind-down of POGO activities. The termination of POGO operations negatively affected companies like DoubleDragon and its Real Estate Investment Trust.

The government's total revenue loss is estimated at about 1 percent, compounded by the impact on ancillary businesses such as leased spaces and additional business from condo rentals.

Notable losers included Jollibee Foods, Bank of the Philippine Islands (BPI), Ayala Land, SM Prime, Robinsons Land, PNB, Apex Mining, Ayala Corp, Monde Nissin, Roxas and Co, D&L Industries, Century Pacific Food, SPNEC, and Cosco Capital.

Also in the red were Abacore, DMCI Holdings, San Miguel, Semirara Mining, Synergy Grid, ABS-CBN, GMA-7, Converge, Wilcon Depot, Dito CME, Puregold, Robinsons Retail, SSI Group, Nickel Asia, OceanaGold, Atlas Mining, Philex Mining, Haus Talk, Emperador, Megawide, and NexGen Energy, the latest IPO.

Among the gainers were Bloomberry, DigiPlus, Universal Robina, Alternergy, Manila Water, Meralco, GT Capital, Phil. Seven, and Citicore REIT, while those unchanged included China Bank, Security Bank, Union Bank, AgriNurture, Aboitiz Power Corp, Ginebra, Figaro Coffee, and Philippine Airlines (PAL).