PSE Index Posts Bigger Decline

The Philippine Stock Exchange index today posted a bigger decline on the third day of its downward trend as investors shied away from the market on the continuing volatility in energy prices as a result of the ongoing Ukraine crisis to close at 6,532.30 points, down by 103.56 points or 1.56 percent.

Photo Insert: The Philippine Stock Exchange (PSE) Index, May 12, 2022

Value turnover was about half of the average volume at P3.301 billion as investors opted to stay on the sidelines with the global energy crunch and the rise in food prices that has bedeviled the US and other countries in respect of the inflation spiral that has resulted in the increase in the US Fed rate and the upcoming rate rises in other countries designed to battle the inflation spikes that has hit the US at a high 8.5 percent and the Philippines at a high 4.9 percent.

With analysts predicting higher interest rate hikes, with the Bangko Sentral seen to raise rates by June following the US' half-point increase in rates, investors are seen to be selective in their share purchases. There were 70 losers against 128 gainers and 48 unchanged. The gainers were limited to second liners but with small volumes.

The top gainer was I-Remit with a 12.66 percent rise on trades of P13,350, followed by Euro Med which went up by 8.91 percent on trades of P33,100, and then Seafront, with trades of just P2,690 and a gain of 7.6 percent.

Pessimism has entered the market with the index's opening at 6,633.68 points which was its highest point and closing at its lowest point with four of its sub-indices in big declines: financials down by 2.28 percent, industrials by 1.36 percent, services by 1.007 percent and property by 2.75 percent.

Only the holding firms and the mining and oil indices posted small losses at 0.33 percent and 0.24 percent respectively.

Ayala Land, which emerged as the most active stock with trades of P407 million went down by 3.43 percent as it lost P1.05 to P29.55 while SM Prime lost 1.61 percent closing at P33.70, down by 55 centavos.

BDO Unibank was up by P1.60 to P130.60, PLDT by P22 to P1,907, and market bellwether SM Investments up by P6 to P831. Semirara Mining also gained 65 centavos to P28.85 while Monde went up by 4 centavos to P13.38.

Among the losers were AC Energy which closed 3.32 percent lower to P6.69, a decline of 23 centavos, ICTSI, down by P2.60 to P215.40, Security Bank, down P3.10 to P95.45, a loss of 3.15 percent, Jollibee, down 20 centavos to P217, Dito CME, down 35 centavos to P5.827, Globe, down P26 to P2,362, Ayala Corp, down P2 to P702, and Metrobank, down 10 centavos to P51.85.

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