PSEi slides, closes below 6,200

The local stock barometer fell below the 6,200 mark on Thursday as liquidity remained tight especially with the ongoing P55.89-billion initial public offering (IPO) of food manufacturer Monde Nissin.

The Philippine Stock Exchange Inc. (PSEi) shed 48.07 points, or 0.77 percent, to close at 6,197.64.

“The PSEi fell once more on renewed demand concerns as coronavirus cases in Asia rise and on fears that rising inflation might lead the US Federal Reserve to raise interest rates, which could limit economic growth,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.

IPOs also tend to suck up liquidity in the stock market. In the case of Monde Nissin, this offering is the largest ever seen stock market debut in the Philippines.

Foreign selling adds pressure

The market was weighed down most by holding firms, which lost 1.33 percent, while the financial, industrial, services and property counters all lost less than 1 percent.

The mining/oil counter added 1.59 percent.

Value turnover for the day amounted to P5.52 billion. About P731.23 million in foreign selling added pressure to the market.

Despite the PSEi’s decline, there were 101 advancers that outnumbered 90 decliners, while 50 stocks were unchanged.

SM Investments, SM Prime and Aboitiz weighed down the index, all declining by over 2 percent.

Ayala Corp. and BPI both fell by more than 1 percent

BDO, JG Summit and ICTSI slipped by less than 1 percent.

Outside the PSEi, one of the notable decliners was third telco player Dito, which slid by 4.98 percent. It was the day’s most actively traded company.

The PSEi’s decline was tempered by the gains of Ayala Land, Metro Pacific and Megaworld, which all added more than 2 percent.

Fast-food giant Jollibee racked up 1.14 percent, while Metrobank inched up by 0.44 percent.

Notable gainers outside the PSEi included Converge and Century Pacific Food, which rose by 2.36 percent and 4.55 percent, respectively. —DORIS DUMLAO-ABADILLA