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MANILA, Philippines—Local stocks opened strongly on Wednesday but the main index struggled—but failed—to stay afloat 7,000 while investors reassessed recent gains.
The main-share Philippine Stock Exchange index dipped by 9.67 points or 0.14 percent to close at 6,972.69. This marked the second day of decline after Monday’s rally to an all-time high past 7,100.
The day’s biggest laggers were Globe Telecom (-4.49 percent) as well as gaming stocks Bloomberry (-3.46 percent) and AGI (-3.43 percent).
Expectations of a $500 million public offering by AGI affiliate Travellers International—a partnership with the Genting group of Malaysia—were seen to have prompted profit-taking among some AGI investors looking for a pure gaming play. Some have shifted to Belle, which reported a hefty increase in first quarter profit due to the start of rental payments by Melco Crown for the Belle Grande facility.
MPI, JG Summit, Megaworld, ALI, BPI and RLC also weighed down the index.
On the other hand, the PSEi’s decline was tempered by the gains eked out by SM Prime (+3.98 percent), Jollibee (+3.49 percent), URC (+2.1 percent), Belle (+2.05 percent), Meralco (+1.98 percent), AEC (+1.73 percent), AC (+1.63 percent), Semirara (+1.27 percent). ICTSI and SMIC also closed higher.
Value turnover swelled to P27 billion, buoyed by a $377-million equity placement in Melco Crown. There were 65 advancers which were overwhelmed by 109 decliners while 36 stocks were unchanged.
Luz Lorenzo, head of research at Maybank ATR Kim Eng Securities, said the index had reached her company’s full-year target of 7,000. “We will wait for first quarter earnings results before changing (our view),” she said.