The benchmark Philippine Stock Exchange Index (PSEi) on Wednesday dropped sharply ahead of the release of the third quarter economic growth number today and as corporate earnings came in mixed.
Shedding gains from the previous day’s rally, the PSEi lost 2.32 percent or 190.80 points to 8,025.88 while the broader all-shares index was down 1.7 percent or 83 points to 4,804.36.
Negative sentiments prevailed as all subsectors closed in the red.
The biggest decline came from the property sector, mainly due to property giant Ayala Land Inc.’s 4.08-percent fall. ALI earlier said profit in the nine months through September 2019 rose 12 percent while revenues increased 2 percent.
Other large companies that reported stronger earnings such SM Investments Corp. and SM Prime Holdings also suffered declines on Wednesday. Metro Pacific Investments Corp., whose net income dropped 5 percent during the nine-month period, lost 4 percent on Wednesday.
Trading volume was relatively light as 595.8 million shares valued at P5.89 billion changed hands yesterday. There were 109 losers versus 74 gainers while 49 companies closed unchanged.
ALI was the most actively traded stock on Wednesday as it sank 4.08 percent to P47 per share.
It was followed by Bloomberry Resorts Corp., up 2.08 percent to P10.82; Ayala Corp, down 1.71 percent to P862 and SM Prime Holdings, down 4.43 percent to P38.80.
“We have just witnessed the massive selling pressure that always came as the PSEi got above 8,000,” Chris Mangun, research head at stock brokerage firm AAA Equities, said in a report on Wednesday.
“Even foreign investors took profits today after constant inflows in the last two weeks. If the 8,000 key-level does not hold in the next few days, all bets are off and the rally is over,” he added.