The local stock barometer slumped below 8,200 on Wednesday as investors scrutinized fast-food giant Jollibee’s $350-million deal to buy US-based The Coffee Bean & Tea Leaf (CBTL).
The main-share Philippine Stock Exchange index (PSEi) lost 89.97 points, or 1.09 percent, to close at 8,161.49. Elsewhere in the region, trading sentiment was mixed.
For the first time in eight days, foreigners turned net sellers, resulting in a net outflow of P542 million.
At the local market, Jollibee was the day’s most actively traded company, declining by 7.99 percent on news of the CBTL acquisition. The deal expanded Jollibee’s international footprint but is also feared to constrain the company’s earnings moving forward.
“The market may be questioning the wisdom of the acquisition, maybe not the valuation, but more if it’s going to be a drag on earnings,” said one analyst at a local fund management firm.
By counter, the financial and industrial sectors declined, while the holding firm, mining/oil and property counters also slipped.
Only the services counter firmed up at a very modest pace.
Value turnover for the day amounted to P6.44 billion. There were 125 decliners that edged out 73 advancers, while 57 stocks were unchanged.
BDO and PLDT both declined by more than 2 percent, while SM Investments, Metrobank, JG Summit, Megaworld and Aboitiz Power all lost over 1 percent.
Ayala Land, Ayala Corp., SM Prime and BPI also slipped.
One notable decliner outside the PSEi was Phinma Energy, which slid by 8.03 percent.
On the other hand, URC bucked the day’s downturn with its 1.24-percent gain.
Despite yesterday’s decline, the PSEi was still trading 20 percent higher from the low of 6,790.50, the level at which the main index bottomed out.