Heavy foreign selling drags PSEi down

Most local stocks fell sharply on Tuesday as foreign funds dumped equities ahead of the MSCI rebalancing but local pundits found solace in a fresh “fourth telco” play.

The main-share Philippine Stock Exchange index (PSEi) slid by 142.03 points or 1.8 percent to close at 7,747.38, underperforming most markets in the region as net foreign selling was hefty at P1.58 billion.

While incumbent telecom players fell alongside other large-cap stocks, Easycall and Now Corp. both surged by nearly 50 percent.

Now confirmed reports about a collaboration with Singapore-based HyalRoute Group in preparation for its pivot toward the 5G era of telecommunication.
The prospects of a fourth telco play excited some investors.

Value turnover for the day was heavy at P13.47 billion. There were 124 decliners that edged out 88 advancers, while 39 stocks were unchanged.

“More than half a dozen blue chips ended with losses of more than 2 percent which obliterated the gains that we saw last week. However, it did end the day right around its 7,750 support level. There is the possibility that we might see a bounce (Wednesday) but in case we don’t, the next support level is at 7,630,” said AAA Equities head of research Christopher Mangun.

The financial, holding firm, services and property counters all tumbled by over 1 percent while the industrial counter also slipped.

The mining/oil counter gained 1.46 percent.

The PSEi was weighed down most by Aboitiz Power, which shed 4.86 percent, while Ayala land, JG Summit and BPI all lost over 3 percent.

PLDT, AEV and Metro Pacific all fell by over 2 percent.

SM Investments, BDO, Ayala Corp., URC, Metrobank, GT Capital and Globe Telecom all lost over 1 percent. SM Prime and ICTSI also slipped.

Outside the PSEi basket, one notable decliner was newly-listed KPPI, which lost 15.6 percent. There was profit-taking after the company’s stellar rise since its stock market debut that was driven by speculation of Sogo hotel chain backdoor-listing.

Megaworld bucked the day’s downturn, gaining a modest 0.21 percent. Shares of Megaworld had fallen since the Philippines and China announced a crackdown on online gaming, but the property developer said it was capping its exposure to this sector. —DORIS DUMLAO-ABADILLA