PH shares slide back to 7,800

The local stock barometer slid back to the 7,800 level yesterday as US Federal Reserve chair Janet Yellen’s dovish remarks boosted appetite for assets from the West at the expense of some emerging markets like the Philippines.

The main-share Philippine Stock Exchange index (PSEi) lost 50.95 points or 0.64 percent to close at 7,885.90.

For the week, the local index ended flat compared to last week’s finish of 7,889.33.

“The Dow on Thursday closed at a record for the 24th time in 2017, as gains in the financial sector helped the broader market book modest gains ahead of a roster of corporate results from the U.S.’s biggest banks. With the perception that the economy is stronger and that a rate hike will be delayed, there was a flight to quality to less riskier asset classes,” said Luis Gerardo Limlingan, managing director at stock brokerage Regina Capital Development.

This was after Yellen, on her second day of testimony on Capitol Hill, reiterated dovish comments that appeared to bolster investor confidence, Limlingan noted.

At the local market, except for the services counter, all counters slipped yesterday.

The most battered was the property counter, which fell by 1.13 percent.

Value turnover for the day amounted to P7.48 billion.

Foreign investors were net sellers amounting to P779.53 million.

There were 104 decliners that edged out 94 advancers while 54 stocks were unchanged.

The PSEi was weighed down most by Metrobank, which declined by 2.44 percent, while SM Prime and Ayala Corp. both slipped by over 1 percent.

BDO, SM Investments, Ayala Land, Semirara, BPI, Security Bank and URC all declined.

Outside the PSEi, notable decliners included GERI (-8.15 percent) and Wilcon (-2.25 percent) as the recent run-up attracted profit-taking.

On the other hand, LTG gained 7.45 percent as the assets of key rival Mighty Corp. have been put up for sale to cover tax liabilities.

It was earlier reported that Japan Tobacco will acquire the beleaguered cigarette-maker for P45 billion.

Telecom giant PLDT was up by 1.18 percent while Meralco and EDC also firmed up.

Outside the PSEi, other notable gainers included Gotianun-led firms East West Bank and Filinvest Land Inc.

Stock pundits are betting on the entry of a foreign strategic investor in East West Bank similar to the route taken by Security Bank.