PSEi down 0.27 percent as investors turn to second-liner stocks

The local stock barometer slipped on Friday as investors veered away from blue chips and scouted for trading opportunities in companies with smaller market capitalization.

The main-share Philippine Stock Exchange index (PSEi) shed 20.87 points or 0.27 percent to close at 7,776.77, while trading sentiment across the region was mixed.

The decline was led by the mining/oil counter, which fell by 1.73 percent. The industrial, holding firm, services and property counters also slipped.

Only the financial counter gained (+0.92 percent).

Value turnover for the day amounted to P6.8 billion. Domestic investors pared their equities holdings while foreign investors were net buyers, resulting in a net inflow of P465.66 million.

Despite the PSEi’s decline, market breadth was positive as investors turned to second-liner stock plays. There were 101 advancers that outnumbered 89 decliners while 47 companies were unchanged.

The PSEi was dragged down by GT Capital, Globe Telecom, URC and JG Summit, which all lost over 2 percent.

Ayala Land, ICTSI, Metro Pacific and RLC all fell by over 1 percent. Security Bank slipped by 0.53 percent.

Outside of the PSEi, Manila Water fell by 2.3 percent on continued uncertainties on the fate of its water distribution concession.

On the other hand, BPI rose by 1.76 percent, while SM Investments, BDO, Ayala Corp. and PLDT all inched up.

Notable gainers outside the PSEi included leading convenience store operator Philippine Seven Corp., which rose by 5.26 percent.

Electronics manufacturer Cirtek rose by 4.03 percent. Shares of this company has been rising in relatively heavy volume in the last few days.

The extraordinary trading on Cirtek is attributed to an upcoming issuance of commercial paper. “It indicates that the company has income. Also, there may be some window-dressing to be able to sell (securities),” one stock market dealer said.

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