PSEi inches up as selling pressure eases

The local stock barometer firmed up on Wednesday but liquidity further dried up with the ongoing initial public offering (IPO) of the country’s first real estate investment trust (REIT) company.

The main-share Philippine Stock Exchange index (PSEi) added 39.16 points or 0.66 percent to close at 5,966.27 on selected buying of large cap stocks. Elsewhere in the region, trading sentiment was mixed.

Value turnover was dismal at P3.57 billion—less than half of the usual daily turnover—as liquidity was sapped by the P12.3 billion IPO of Ayala Land-backed AREIT Inc. The IPO started on July 27 and would run until Aug.3.

Joseph Roxas, president of local stock brokerage Eagle Equities, said that since this was a large IPO, it had an effect on the market.

“But the market went up at the close because of expectations that the general community quarantine will continue in August and more businesses will be allowed to open,” Roxas said.

Previously, there were concerns that the government might restore tougher lockdown protocols due to the continued surge in coronavirus cases.

“The PSEi managed to end with gains for a second day in a row as we see diminished selling pressure,” AAA Equities head of research Christopher Mangun said.

However, he noted that most investors were still on the sidelines, as evident in low trading volumes.

“The easing of restrictions of local businesses have given optimism to investors but most remain cautious,” Mangun said.

The market was boosted mostly by the financial and industrial counters, while holding firm, services and property counters also gained.

On the other hand, the mining/oil counter declined by 1.48 percent.

Despite the PSEi’s gain, market breadth was negative. There were 103 decliners that edged out 74 advancers, while 47 stocks were unchanged. There was minimal net foreign selling worth P86.74 million.

The PSEi was perked up by the gains of property develo­pers RLC and ALI, which rose by 5.96 percent and 3.58 percent, respectively.

URC also gained 3.84 percent, while Puregold rose by nearly 3 percent. Semirara advanced by 2 percent.

Jollibee and BDO both added over 1 percent, while Ayala Corp., Bloomberry and RRHI all gained less than 1 percent.

One notable gainer outside the PSEi was newly listed MerryMart, which advanced by 6.58 percent.

On the other hand, SM Prime lost 1.93 percent, while PLDT, JG Summit and AGI all slipped by less than 1 percent.

Outside the PSEi, notable decliners included Nickel Asia, Dito CME and Century Pacific, which went down by 5.84 percent, 3.27 percent and 0.14 percent, respectively. —DORIS DUMLAO-ABADILLA