PSE Index In Free-Fall

The Philippine Stock Exchange (PSE) index experienced a free-fall on Tuesday, marking another milestone down as losers outnumbered gainers by a factor of three.

The Philippine Stock Exchange (PSE) Index, April 16, 2024

This continued foreign selling from investors surpassed a billion for the first time, causing the index to close at its lowest point of the day, 6,404.97 points, down by 157.46 points or 2.40 percent.

This marks the fifth consecutive trading day that the index has closed at a lower milestone level. Geopolitical tensions in the Middle East, coupled with a lack of catalyst on the local front, contributed to a sell-off that affected previously favored stocks.

For instance, SP New Energy Corp closed below its IPO price at 93 centavos, down by 5 centavos from its IPO of P1 per share.

Market bellwether SM Investments also suffered, declining by P25 to P932, well below its peak price of just over P1,000.

All sub-indices were in the red, with losers outnumbering gainers by more than three times. Services posted the biggest loss with a 3.27 percent decline, followed by industrial with a 2.74 percent drop, and holding firms, which lost 2.42 percent.

Financials lost 1.64 percent, mining and oil by 1.36 percent, and property by 1.59 percent.

The value turnover amounted to P6.99 billion, with foreign buying reaching P3.063 billion against foreign selling of P4.251 billion, resulting in a net foreign selling of P1.187 billion. Some stocks were transacted in block trades at prices much higher than their closing prices.

For example, Bloom closed at P10, down by 46 centavos, but had block sales done at higher prices. Similarly, BDO Unibank had block sales priced significantly above the closing price.

Among the losers were Security Bank, ACEN Corp, Alternergy, Aboitiz Power, Basic Energy, First Gen, Meralco, Manila Water, Synergy Grid, and many others.

Gainers included First Holdings, Aboitiz Equity, Keppel Properties, and others, while some stocks remained unchanged. The sell-off also affected the Top 10 most active stocks, all of which declined.