PSEi weakens at start of earnings season

The local stock barometer weakened for a second day in a row on Wednesday as investors digested fresh leads from the fourth quarter local corporate earnings reporting season.

The main-share Philippine Stock Exchange index shed 27.82 points or 0.38 percent to close at 7,234.82.

Elsewhere in the region, stocks markets were mostly sluggish as investors were jittery over the new policies of US president Donald Trump. They are likewise cautious over the upcoming presidential elections in France this April 23.

The PSEi was dragged down most by the services and property counters, which both fell by over 1 percent while the financial and industrial counters likewise slipped.

On the other hand, the holding firm and mining/oil indices ended slightly higher.

Total value turnover for the day amounted to P6.48 billion. There was net foreign selling amounting to P222 million.

There were 99 decliners that edged out 93 advancers while 46 stocks were unchanged.

Investors dumped shares of PLDT, which fell by 3.27 percent after rival Globe Telecom released its 2016 corporate results.

Globe’s core profit rose by 6 percent to P16 billion while revenues were up 6 percent to P120 billion. Globe also announced a $750-million capital spending program this year and said its fourth quarter revenues may have exceeded PLDT’s.

Shares of Globe rose by 2.94 percent on Wednesday.

Meanwhile, Metrobank also weighed down the PSEi with its 2.64 percent drop. It was the day’s most actively traded stock.

Ayala Land, URC and SM Prime all slipped by over 1 percent while BDO, Security Bank, BPI, AEV and JG Summit also declined.

Outside the PSEi, one notable decliner was Basic Energy which slid by 6.67 percent.

ON the other hand, aside from Globe, Metro Pacific and SM Investments gained over 1 percent while GT Capital and Megaworld likewise both gained.

One steep gainer outside the PSEi was Philrealty, which surged by 20.27 percent in relatively heavy volume. The property developer officially graduated from court-assisted corporate rehabilitation recently.

Juan Barredo, COL Financial chief technical analyst, said in a recent briefing that the PSEi could find short-term support at 7,123 to 7,024. If the PSEi breaches the major upside barrier at 7,402, he said the main index could rally towards the 7,700 to 8,100 levels within the year.

“There will be countless opportunities for investors to move in and out of the market,” Barredo said.