PH stocks mirror global weakness

The local stock barometer slipped on Wednesday, tracking heightened risk aversion across global markets.

The main-share Philippine Stock Exchange index (PSEi) shed 37.49 points, or 0.51 percent to close at 7,265.45.

Across the globe, investors also shied away from equities due to fresh trade war jitters alongside doubts on the commitment of the Organization of the Petroleum Exporting Countries to curb output.

The excitement over the state visit of China president Xi Jinping to the Philippines also fizzled out as investors now sought to scrutinize details of newly signed deals.

On the proposed joint oil exploration framework, for instance, the euphoria died down for lack of any tangible roadmap.

“It’s just a nice way of saying—let’s talk about it,” said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.

At the same time, any agreement on oil exploration is seen at risk of facing stiff opposition from critics.

The market was weighed down most by the mining/oil counter, which fell by 5.04 percent. The financial, holding firm, services and property indices also declined.

Only the industrial counter gained by a modest 0.27 percent.

Total value turnover amounted to P7.06 billion.

There were 127 decliners that overwhelmed 64 advancers while 48 stocks were unchanged.

Outside of PSEi stocks, companies affiliated with Davao-based businessman Dennis Uy succumbed to profit-taking. ISM, the day’s most actively traded company, plunged by 18.6 percent, while PXP tumbled by 14.87 percent. Chelsea Logistics slid by 8 percent.

In the case of PXP, Roxas said the decline was likely due to disappointment on the lack of clarity on the Philippine-China cooperation framework on oil and gas exploration.

On ISM and Chelsea’s decline, after the group successfully bagged the right to be the country’s third telecom provider, Roxas said the market was now looking at how fast the telecom consortium could roll out investments. “It’s now time to get down to business. That means, spending will have to start,” he said.

On the PSEi, among the biggest decliners was Globe Telecom, which lost 4.29 percent.

Leading conglomerate SM Investments lost 2.13 percent, while GT Capital, Ayala Corp. and BDO all declined by more than 1 percent.

Ayala Land, Metro Pacific and Security Bank also slipped.

Outside the PSEi, another notable decliner was MacroAsia, which gave up 11.59 percent.

On the other hand, Jollibee and Meralco bucked the day’s downturn, both rising by over 1 percent. Metrobank, BPI and PLDT also firmed up.