PHILIPPINE SHARES declined on Tuesday due to last-minute selling and as investors stayed cautious on lingering geopolitical uncertainty and corporates’ earnings outlook.
The Philippine Stock Exchange index (PSEi) dropped by 0.17% or 10.87 points to close at 6,304.03, while the broader all shares index went down by 0.24% or 8.33 points to end at 3,427.04.
“The local bourse ended lower as late-session selling emerged, with investors tracking weakness across regional markets. Sentiment remained cautious amid broad-based declines in neighboring markets. The market closed lower as investors continued to monitor market developments, especially with more earnings results coming in,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Last-minute profit taking sent the local bourse lower, with investors still worried over the uncertainties between the US and Iran,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
The PSEi opened Tuesday’s trading at 6,290.44, lower than Monday’s close of 6,314.90. Still, it rose to a high of 6,349.35 intraday, while its low was at 6,283.09.
Meanwhile, President Donald J. Trump said on Monday the United States was having “good talks” with Iran and there was a chance of a deal, but he warned that US strikes would resume if the negotiations failed to deliver, Reuters reported.
Most sectoral indices closed higher. Mining and oil rose by 0.5% or 80.03 points to 16,084.05; financials increased by 0.35% or 6.80 points to 1,928.69; services went up by 0.17% or 6.08 points to 3,435.91; and holding firms inched up by 0.01% or 0.51 point to 4,422.37.
Meanwhile, industrials dropped by 1.23% or 104.52 points to 8,339.43, and property went down by 0.73% or 14.09 points to 1,909.94.
Decliners beat advancers, 89 to 78, while 68 names were unchanged.
“Converge ICT Solutions, Inc. was the day’s index leader, climbing 3.47% to P10.72 on the back of bargain hunting. Manila Electric Co. (Meralco) was the main index laggard, falling 4.66% to P562 following ßPresident Ferdinand R. Marcos, Jr.’s proposal to remove system loss charges for consumers,” Mr. Tantiangco said.
Meralco said it is willing to take part in discussions on proposed amendments to the Electric Power Industry Reform Act, adding that it has kept its system loss well below the Energy Regulatory Commission’s 6.5% cap.
Value turnover increased to P6.67 billion on Tuesday with 790.17 million shares traded from the P4.81 billion with 448.08 million issues that changed hands on Monday.
Net foreign buying was at P115.12 million versus P196.45 million in net selling in the previous session.
Meralco’s controlling shareholder Beacon Electric Asset Holdings, Inc. is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Alexandria Grace C. Magno
