PSE Index Stays In The Red As It Is Hit With Foreign Selling

The Philippine Stock Exchange (PSE) index declined Wednesday due to foreign selling after more than 20 trading days of net foreign buying.

The Philippine Stock Exchange (PSE) Index, October 9, 2024

This resulted in all the sub-indices dropping, with the index closing at its lowest level of 7,424.15 points, down by 112.73 points or 1.50 percent.

Analysts noted that the index is undergoing a correction phase following a more than 20 percent increase that signaled the start of a bull run. Traders remain optimistic, expecting the market to surge forward to a projected level of 7,800 points, or even 8,000 points, by the first week of next year.

Most blue-chip stocks declined, with eight of the top 10 traded stocks posting losses, except for Jollibee Foods, which bucked the trend, and Ayala Land, which remained unchanged.

Financials were down by 1.68%, with BDO Unibank emerging as the most active stock, posting P628 million in trades and dropping by 2.35 percent to P157.80, a loss of P3.80.

ICTSI, with P519 million in trades, also declined, dropping by P8.20 to P429.80. Industrials lost 0.70 percent, holding firms declined by 1.77 percent, services dropped by 1.64 percent, mining and oil decreased by 1.70 percent, and the property sector was down by 0.54 percent.

For the first time since the index's rise to its resistance level of 7,500 points, foreign investors were net sellers, with net foreign selling amounting to P402 million.

Foreign buying totaled P1.914 billion, while foreign selling reached P2.317 billion. The total value turnover was P5.3 billion, with 72 gainers, 122 losers, and 64 shares unchanged.

Market bellwether SM Investments led the losers, dropping by P23 to P975.

Other notable decliners included Bank of PI, JG Summit, SM Prime, AbaCore, Aboitiz Equity, Citicore RT, Megaworld, Belle Corp., Bloomberry, DigiPlus, Robinsons Retail, and Wilcon Depot.

In the losers column, as well, were Cosco Capital, Alliance Global, Globe Telecom, PLDT, Puregold, Boulevard Holdings, Petron, Meralco, Manila Water, Security Bank, PNB, Metrobank, ACEN Corp, Aboitiz Power, First Gen, Semirara Mining, Synergy Grid, D&L Industries, Figaro Coffee, Monde Nissin, and CEMEX Holdings.

The gainers were PhilSeven, MREIT, Victorias Milling, Keeper Holdings, Fruitas, Shakey's Pizza, Roxas and Co., Megawide, Robinsons Land, Shang Properties, Haus Talk, SPNEC, Alternergy, Emperador, and AREIT.

Meanwhile, those unchanged included Ayala Land, Union Bank, Citicore RE, SMC Food and Beverage, Vitarich, Century Property, Filinvest Land, GMA 7, and Philweb.