Hello and goodbye, 7,000: Converge, First Gen endure selldown

The stock barometer pulled back sharply on Thursday as investors pocketed gains from fiber internet company Converge and priced in the upcoming exit of First Gen from the main index.

Weighed down by about P1.5 billion in net foreign selling, the main-share Philippine Stock Exchange index (PSEi) fell by 106.15 points, or 1.5 percent, to close at 6,951.30.

The services and holding firm counters were the biggest losers, falling by 3.13 percent and 2.2 percent, respectively.

The mining/oil counter lost 1.66 percent, while the industrial and property counters slipped by less than 1 percent.

On the other hand, the financial counter added 0.93 percent.

Value turnover for the day amounted to P13.17 billion.

There were 137 decliners that overwhelmed 62 advancers, while 46 companies were unchanged.

The PSEi was weighed down most by the selldown on Converge, which lost 14.77 percent, while First Gen tumbled by 8 percent following the surprise announcement of its removal from the PSEi effective Oct. 11.

Converge has run up sharply since listing on the stock market and then later joining the PSEi basket. Pundits said some investors locked in their gains from the firm’s rich valuation.

—DORIS DUMLAO-ABADILLA
Read more...