As investors remain on the sidelines, stock index falls below 8,000

The benchmark Philippine Stock Exchange Index (PSEi) fell below 8,000 on Wednesday as volume remained anemic while big conglomerates reported mixed earnings.

The PSEi ended the session down 0.81 percent, or 64.87 points, to 7,947.47 while the broader all-shares index went down 0.52 percent, or 24.73 points, to 4,763.89.

Investors again stayed on the sidelines despite a string of financial releases as the third quarter earnings season comes to a close this week.

Large companies such as LT Group Inc. and Ayala Corp. posted higher earnings while DMCI Holdings declined on lower power sales and construction revenues from delayed infrastructure projects—a closely followed segment by investors.

Among subsectors, only mining and oil ended positive with a 0.47-percent gain.

Losers were led by industrial firms, whose subindex lost 1.05 percent, followed by financials, down 0.85 percent  and holding firms, down 0.82 percent.

Foreign activity also weighed on the market. Foreigners were net sellers to the tune of P720.69 million on Wednesday, data from the PSE showed.

As noted, volume was weak yesterday with 1.17 billion shares valued at P4.63 billion changing hands. Losers outnumbered gainers 105 to 73 while 59 companies closed unchanged.

Ayala Corp. was the most actively traded on Wednesday as it lost 1.9 percent to P824 per share.

It was followed by Ayala Land Inc., up 0.97 percent to P46.95; Jollibee Foods Corp., down 2.09 percent to P213.20; SM Prime Holdings Inc., down 1.88 percent to P39.15; and BDO Unibank Inc., down 0.7 percent to P155.30 per share.