PSE INDEX IN SCARY DROP

The Philippine Stock Exchange (PSE) index had a scary decline today but was able to bounce back to close at 6,728.55 points up by 9.37 points or 0.14 percent on bargain hunting.

But, the tell-tale sign of a liquidity crunch was noticeable with the lower value turnover due to the Double Dragon REIT IPO which sopped the market of P1.3 billion.

Net foreign selling amounted to P602 million, which is almost a tenth of the value turnover of P6.87 billion, with blue chips in differing price behaviors as gainers were ahead of losers, 108 to 99, with 60 shares unchanged.

Foreign buying amounted to P1.507 billion while foreign selling reached P2.173 billion. Bank of PI had foreign selling of P173 million as it closed lower by P1.30 to P80.20.

BDO Unibank, even with foreign selling of P69 million, rose by 90 centavos to P105.90. Metrobank, however, even with foreign buying of P48 million, posted a 45-centavo loss to P47.75.

The financials, together with the services and mining sector were down while the industrials, holding firms, and property posted gains with Dito CME emerging again as the top draw with P1.62 billion in trades, as it posted an 88 centavos gain to P11.38.

Premiere Horizon was unchanged at P2.45, while fellow second liner, Apollo Global lost P0.005 to P0.203, with respective trades of P305 million and P302 million.

Market bellwether SM Investments went up by P4 to P1,034, while market darling MerryMart declined by a centavo to close at P5.19 in trading that saw the PSE index going down below its 6,700 support price.

Technical analysis of the market's performance sees a possible drop-down should the support price be pierced.

Property developer SM Prime went down by 15 centavos to P36.40, while food giant Jollibee Foods gained a peso to P181.90 with foreign buying of P25 million.

The decline in the value turnover was attributed to the deadline for payment of those who availed themselves of DD REIT which was priced at P2.25, its higher price range.

The company which took out P1.3 billion from the market had set an IPO date of March 23. The REITs have just recently resonated after more than 10 years of the approval of the law setting its entry into the stock market.

The issue on taxability allowed the REITs to grow as the dividend payouts of 90 percent to be given to shareholders are allowed to be deducted from taxable income, making it tax-free.

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