PSE Index Plunges

The Philippine Stock Exchange (PSE) index plunged as it ended the week puncturing for the second time its new support level aggravated by the issues on the tender process in Holcim Cement that hit minority shareholders.

Photo Insert: The Philippine Stock Exchange (PSE) Index, August 18, 2023

The market declined by 74.7 points or 1.17 percent to 6,290.27 points, way below its support level of 6,330 points, in trading that saw blue chips rise to high price points before closing lower than Thursday's levels.

Local investors accounted for just P200 million in trades, about 40 percent lower than in previous trading days, a revelation of the disaffection hitting small shareholders and sympathizers, who are aghast at the way they have to be paid for their tendered shares done outside the trading platform of the Philippine Stock Exchange.

Also contributing to the seeming lack of interest is the fact that shareholders of the Philippine National Bank have not yet been granted their property dividends of PNB Holdings that were supposed to be listed by way of introduction.

The delay has led to liquidity concerns from PNB shareholders who were still unable to cash in their property dividends.

As a result, the local market is now destined for the doldrums, according to market analysts, especially with economic headwinds such as a spike in inflation due to the rise in gas prices and the looming increase in rice prices following the suspension of exports from India that has similarly affected Vietnam, a rice supplier for the country,

Save for the mining and oil index which gained by 0.24 percent, all the sub-indices posted big losses with financials bearing the brunt of the declining shareholder interest as it went down by 1.82 percent on lower share prices of BDO Unibank, Bank of PI, and Metrobank.

The aforementioned respectively went down by P3.80 to P138.20 or 2.68 percent, P2.30 to P111.10 or 2.03 percent lower, and 20 centavos to P56.95. Industrials dropped by 1.32 percent, holding firms by 0.22 percent, property by 1.01 percent, and services by 1.04 percent.

Net foreign selling amounted to P566 million on foreign selling of P2.62 billion and foreign buying of P2.06 buying with value turnover amounting to P4.4 billion with 66 gainers, 104 losers, and 57 shares unchanged.

The market, though opened higher with the blue chips hitting high prices until the sell-down that saw stocks lower at the close. BDO rose to a high of P141.40, BPI to P113.30, and Metrobank to P57.05.

All the other decliners also rose in the opening minutes before the closing minutes.

The stocks that saw price rises or were unchanged had net foreign buying, such as in the cases of Bloomberry, up by 24 centavos to P11 with net foreign buys of P1.8 million out of P37 million in trades, Meralco, which rose to P350 up by P2 with P21 million in net foreign buy, Metro Pacific, up by 1 centavo to P5.05 on trades of P107 million with net foreign buys of P51 million.

Semirara Mining was unchanged at P32 on trades of P50 million, of which P13 million were net foreign buys.

Market bellwether SM Investments went down by 50 centavos to P860 though it had a high of P869.90 with net foreign selling of P46 million of its P148 million trades, Ayala Land also lost by a similar 50 centavos to P29.50 with net foreign selling of P31 million out of its total of P413 million, and SM Prime declined by 30 centavos to P30 with net foreign selling of P48 million out of its P305 million total.

PLDT was another stock in the red as it went down by P13 to P1,215 despite a high of P1,237, while Security Bank declined by P1.30 to P79.50 with net foreign selling of P8 million out of P33 million in trades.

The other losers were Globe Telecom, down by P26 to P1,884, ACEN Corp, down 2 centavos to P5.24, Ayala REIT, down 10 centavos to P33.90, ICTSI, down P2 to P213.60, Ayala Corp, down P3 to P590, Monde Nissin, down by 38 centavos to P6.45, JG Summit, down by P1.15 to P38.05, Wilcon Depot, down by P1.30 to P21.60, and Aboitiz Power, down by P1.10 to P34.50.

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