Stocks slip ahead of ‘ghost month’

Most local stocks slipped Tuesday, weighed down by sluggish regional markets, the selldown in telecom giant PLDT and profit-taking ahead of the so-called “ghost” month.

The main-share Philippine Stock Exchange index (PSEi) fell by 32.03 points or 0.4 percent to close at 8,037.78.

The index was weighed down by the services counter, which tumbled by 3.23 percent due to the 8.15-percent fall in PLDT. The telco accounts for around 5.8 percent of the PSEi.

“The PSEi was dragged by disappointing results from PLDT as profit fell 33 percent in the second quarter as the nation’s largest phone carrier booked losses for its investment in Germany-based Rocket Internet SE and as earnings from its mobile-phone, data and landline businesses were little changed,” said Luis Gerardo Limlingan, managing director at local stockbrokerage Regina Capital Development.

“Similarly, other companies fell in anticipation of the ghost month, which officially starts (Wednesday) while investors weighed reports outlining the details of the Japan stimulus package. In addition, many remained on the sidelines as they await the release of the Bank of England’s decision, wherein many are expecting a rate cute in its meeting later in the week. Lastly, oil explorers slid on lower crude prices,” Limlingan said.

Total value turnover for the day amounted to P7.25 billion. Despite the overall PSEi decline, there were slightly more advancers (104) than decliners (101) as investors scouted for buying opportunities outside the large-cap stocks. Doris Dumlao-Abadilla