Foreigners resort to selling stocks as PH recovery dims

The benchmark Philippine Stock Exchange Index (PSEi) fell lower on Friday as foreigners unloaded shares given the country’s murky economy outlook. The PSEi lost 0.8 percent, or 55.58 points, to 6,912.85 while the broader all-shares index dipped by 0.64 percent, or 27.69 points, to 4,295.84.

Pulling the stock market lower was foreign selling amounting to almost P813 million, data from the PSE showed.

On Thursday, the Japan Center for Economic Research (JCER) cut the 2021 growth forecast for the Philippines to 3.2 percent from 5.1 percent last June, citing the impact of the COVID-19 lockdowns on economic recovery prospects. The JCER said “the strict lockdowns extended in some of the countries in response to the Delta variant infection will prevent the [region’s] economy from clearly recovering for some time to come.”

BDO Unibank Inc. chief strategist Jonathan Ravelas said the 7,000 level remained a near-term ceiling for the PSEi.

“The market could still attempt the 7,000 levels in the near term. Failure to test said levels could trigger profit taking and retest the 6,700 levels,” Ravelas said in a note to investors on Friday. The financial subsector was the sole gainer on Friday as it rose 0.69 percent. Losers were led by services, down 2.18 percent, followed by mining and oil, down 1.7 percent, and property, down 1.17 percent.

A total of 1.8 billion shares valued at P15.2 billion changed hands on Friday as the session’s activity was mainly driven by foreign investors.

Decliners outnumbered advancers, 119 to 74, while 52 companies closed unchanged.

Converge ICT Solutions Inc. was the most actively traded on Friday as it dropped 2.82 percent to P34.50 per share.

It was followed by AC Energy Corp., down 1.15 percent to P10.36; Monde Nissin Corp., up 2.85 percent to P19.50; Globe Telecom, down 6.25 percent to P3,000; and International Container Terminal Services, up 1.57 percent to P188 per share.

Other actively traded companies were Ayala Land Inc., up 0.6 percent to P33.50; Aboitiz Power Corp., up 3.32 percent to P32.65; PLDT Inc., down 2.65 percent to P1,472; and SM Prime Holdings Inc., down 2.51 percent to P33 per share.