PSEi slumps on disappointing Q1 results

THE LOCAL stock barometer returned to the doldrums on Thursday, weighed down by conglomerate Alliance Global Group Inc.’s decline following disappointing first quarter results.

The Philippine Stock Exchange index lost 46.55 points or 0.59 percent to close at 7,835.38.

The decline was led by the services, mining/oil and property counters which all slumped by over 1 percent.

Value turnover for the day amounted to P7.76 billion. There were over three times as many decliners (134) as there were advancers (44) while 49 stocks were unchanged.

Companies which reported disappointing first quarter results were the most battered for the day.

AGI led the market’s decline, ending 7.2 percent lower in heavy volume. It was the most actively traded company for the day. AGI reported a year-on-year decline of 11.8 percent in first quarter earnings to P3.5 billion.

Bloomberry, which earlier reported larger-than-expected net loss for first quarter, also slumped by 4.8 percent.

Globe fell by 2.26 percent on profit-taking. Its shares have been rising in previous days due to strong first quarter earnings.

ALI and SM Prime both declined by over 1 percent while GTCAP, EDC. PLDT, AP, Jollibee, Meralco and Ayala also faltered.

Outside of PSEi stocks, Nickel Asia fell by 3.08 percent.

On the other hand, banking stocks BDO, BPI and Metrobank firmed up. The closely-watched US Federal Reserve meeting minutes suggested that many officials deem it premature to hike interest rates in June, which did not take the markets by surprise.

“This (US Fed minutes) should cap any PSEi bounce and US dollar strength. This along with bad first quarter earnings could (result in) more sell-offs,” said Banco de Oro Unibank chief strategist Jonathan Ravelas.

Conglomerate DMCI also ended higher.

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