PSE Index Tapers Off

The Philippine Stock Exchange (PSE) index today tapered off below its milestone level, closing at 6,472.97 points, down by 34.81 or 0.53 percent as local investors made lower bets due to the August ghost month phenomenon.

Photo Insert: The Philippine Stock Exchange (PSE) Index, August 8, 2023

As the peso drops to P56 to the US dollar, it accentuates the continued economic uncertainty buffeting the global economy with the Ukraine crisis now about to envelop the grain industry, as well as affect oil prices.

Local participation in the market accounted for just P300 million out of the total trade of P4.57 billion, a fourth less than the average as the problems of minority shareholders in Holcim, which has been suspended, continue to unravel.

Brokers have written to the management of the Philippine Stock Exchange to lift the suspension on the trading of Holcim shares to allow for a smooth tender offer process.

The sticky issue has given rise to complaints from brokers that the PSE is punishing the small shareholders and is seen as a step back for the exchange's program to involve more companies to list their shares.

Net foreign selling reached P165 million on foreign buying of P2.04 billion and foreign selling of P2.21 billion with Ayala Land emerging as the most active stock with trades of P666 million, of which net foreign buying amounted to P285 million, nudging its shares to P29.40, up by 70 centavos.

Metro Pacific was the second most active with P400 million as it gained 7 centavos to P4.97 although it hit a year-high of P5, and the third most active was ICTSI which had P288 million in trades as it rose by 80 centavos to P208.80.

Market bellwether SM Investments lost P6.50 to P895 with net foreign selling of P71 million out of its P248 million in trades.

There was also net foreign selling in the banking sector with BDO Unibank accounting for P10 million in net foreign selling out of its P247 million in trades as it closed unchanged at P141, while Bank of PI had a hefty net foreign selling of P135 million out of its P233 million in trades as it closed P3.20 lower or down by 2.75 percent to P113.20.

Security Bank closed at P82.25 with net foreign selling of P3.9 million out of its P6 million in trades.

Industrials and services went up by 0.07 percent and 0.54 percent respectively while the financials lost 0.91 percent, holding firms down by 0.94 percent, property down by 0.12 percent, and mining and oil down by 0.002 percent.

There were 72 gainers, 91 losers, and 66 shares unchanged.

Among the losers were Ayala Corp, down P11.50 to P612.50, Universal Robina, down 40 centavos to P124 even with P27 million in net foreign buying out of its trades of P180 million, and SM Prime, down by 55 centavos to P32.70.

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