PSE Index Bogged Down By Volatile Trade

The Philippine Stock Exchange (PSE) index experienced a minor decline in volatile trading Friday, closing at 6,618.69 points, down by 9.51 points or 0.14 percent.

The Philippine Stock Exchange (PSE) Index, May 17, 2024

Despite the dip, the index maintained its position within milestone levels. The day’s trading volume was significantly higher than usual, reaching PHP 19.4 billion, primarily driven by a substantial block sale of Ayala Corporation's remaining 23.6 percent stake in Manila Water to tycoon Enrique Razon, valued at PHP 12.94 billion.

Ayala's divestment is part of its broader PHP 50 billion monetization program aimed at reducing debt.

This strategic move resulted in a gain for Ayala Corporation but a loss for Manila Water. The PSE index fluctuated throughout the day, peaking at 6,649.61 points and dipping to a low of 6,578.26 points.

Sectoral performance was mixed, with financials down by 0.43 percent, services dropping by 1.60 percent, while industrial, holding firms, mining and oil, and property sectors saw gains of 0.08 percent, 0.04 percent, 0.46 percent, and 1.39 percent, respectively.

In terms of market activity, there were 93 gainers, 91 losers, and 67 unchanged shares. Notably, Globe Telecom reached a new high of PHP 2,000, breaking out from its previous range of PHP 1,800-1,850.

Market bellwether SM Investments, along with San Miguel, GT Capital, and LT Group, posted losses.

Gainers included Oceana Gold, DigiPlus, Puregold, Nickel Asia, SM Prime, Ayala Land, Jollibee Foods, Meralco, Petron, Century Pacific Food, Roxas and Company, Emperador, Megawide, Aboitiz Equity, Alliance Global, Ayala REIT, Robinsons Land, Cebu Air, PAL, Bloomberry, ABS-CBN, GMA-7, and Double Dragon.

Conversely, the losers were led by ICTSI, Bank of the Philippine Islands, Atlas Mining, Apex Mining, Belle Corporation, Semirara Mining, Synergy Grid, Abacore, Universal Robina, Philex Mining, Philodrill, PNB, ACEN Corporation, First Gen, and San Miguel Food and Beverage.

Shares that remained unchanged included Aboitiz Power, Basic Energy, SPNEC, Axelum, D&L Industries, Figaro Coffee, Cemex Holdings, and Wilcon Depot.

Foreign investors were net buyers with purchases amounting to PHP 3.391 billion against sales of PHP 3.360 billion, resulting in a net inflow of PHP 31.2 million.

Analysts remain optimistic about the market’s potential upside, citing a projected decline in interest rates by the Bangko Sentral ng Pilipinas (BSP) in light of controlled inflation figures from the US Federal Reserve.