Fresh Duterte threats pull down PH shares by 2.2%
The benchmark Philippine Stock Exchange Index (PSEi) fell on Monday, dragged lower by large companies that President Duterte threatened anew.
By the closing bell, the PSEi was down 2.2 percent, or 169.98 points, to 7,552.60 while the broader all-shares index lost 1.69 percent, or 76.92 points, to 4,474.27.
Following fresh threats to take over the businesses of Metro Manila’s water concessionaires, Ayala Corp.’s Manila Water Co. Inc. and Maynilad Water Services Inc., Malacañang also announced a review of a long-term Quezon City land deal of property giant Ayala Land Inc.
Ayala Land, one of the country’s largest companies, was the most actively traded on Monday as it sank 7 percent to P40.50 per share.
“The PSEi was Asia’s worst performer today with four Ayala companies ending up on our top losers as the government has expressed the intent to probe other businesses owned by the conglomerate,” Chris Mangun, research head at stock brokerage firm AAA Equities, said on Monday.
Traders said fears of rising regulatory risk spread to other equities.
All subsectors were down. Property was the leading loser, down 3.88 percent, followed by holding firms, down 2.2 percent; mining and oil, down 1.21 percent; industrial, down 1.17 percent; and financials, down 1.15 percent.
A total of 913.65 million shares valued at P6.27 billion changed hands on Monday.
According to Mangun, foreigners were net sellers to the tune of P512.9 million.
“The strategy is to look for opportunities in companies that do not correlate with the PSEi’s movement,” he added.
After Ayala Land, the most actively traded was SM Prime Holdings, which dropped 2.33 percent to P39.75 per share. It was followed by International Container Terminal Services Inc., up 0.15 percent to P132.9; Megworld Corp., up 2.79 percent to P4.42; SM Investments Corp., down 2.37 percent to P1,030; and Ayala Corp., down 6.6 percent to P750 per share. INQ
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.