PSE Index Crumbles; Misses 6,400-Point Resistance

The Philippine Stock Exchange (PSE) index experienced a significant decline today, putting an end to its bullish sentiment.

The Philippine Stock Exchange (PSE) Index, September 29, 2023

The index dropped by 64.28 points, representing a 1.01 percent decrease, with a closing figure of 6,357.66 points. It was unable to breach the 6,400-point resistance level, which had been anticipated for a Christmas rally.

Market sentiments were influenced by various stock inclusions and exclusions.

Nickel Asia, which replaced Union Bank of the Philippines in the PSE index due to the reclassification of the Social Security System's holdings in the bank, saw a remarkable 13.33 percent increase, closing at P6.12, up by 72 centavos.

In contrast, Union Bank experienced an 8.77 percent decline, closing at P64.50, a loss of P6.20. The reclassification of SSS's holdings as non-public led to a decrease in its public float.

The surge in Nickel Asia boosted the mining and oil index, resulting in a 3.11 percent increase, making it the only sub-index to gain.

Meanwhile, Union Bank's decline contributed to a 0.10 percent loss in the financial sector, despite the rise in BDO Unibank, which was the most active stock at P926 million, with a 50-centavo increase to P141.90, and the gain in Bank of the Philippine Islands (BPI), which increased by one peso to P112.

Aboitiz Power was the second most active, with trades worth P476 million, but it declined by 6.16 percent to P33.50, down by P2.20. Union Bank ranked third in terms of activity, with trades totaling 471 million.

The value turnover for the day exceeded the average, reaching P13.09 billion, with 99 gainers, 92 losers, and 66 unchanged shares.

The index was down by 27.86 points at 6,357.66 during the market recess, but share prices fluctuated toward the close, rising and then falling.

For example, ACEN Corp ended the day with a 3.35 percent decline at P4.91 after reaching a high of P5.20. JG Summit reached a high of P39.50 before closing at P38.10, down by 90 centavos.

Other notable losses for the day included Semirara Mining, which declined by 55 centavos to P34.90, despite reaching a high of P35.45, and Emperador, which lost 25 centavos after peaking at P21.10.

Additional decliners were Bloomberry, down by 66 centavos or 6.13 percent to P10.10 following the announcement of a share sale, market bellwether SM Investments, down by P3 to P843.50, Universal Robina, down by 90 centavos to P118.90, ICTSI, down by 80 centavos to P207.20, and SM Prime, down by 70 centavos to P30.30.

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