Block sale of Converge shares pulls PSEi down | Inquirer Business

Block sale of Converge shares pulls PSEi down

/ 05:14 AM November 20, 2021

The Philippine Stock Exchange Index (PSEi) was dragged lower on Friday by heavy foreign selling while investors moved on from the Bangko Sentral ng Pilipinas’ (BSP) anticipated decision to keep the key interest rate at a record low.

By the closing bell, the PSEi shed 0.26 percent, or 18.77 points, to 7,280.57 while the broader all-shares index was down 1.41 percent, or 55.59 points, to 3,878.11.

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The PSEi was weighed down by selling at Converge ICT Solutions after its No. 2 stockholder, Coherent Cloud Investments BV, sold more shares, according to Bloomberg News.

Data from the Philippine Stock Exchange (PSE) showed block sales of Converge totaling 420 million shares at P30 each or a total of P12.6 billion. The shares were sold at a 7.12-percent discount to the previous day’s close.

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MSCI eligible

According to Adrian Yu of stock broker COL Financial Group Inc., the share sale would widen Converge’s public ownership profile and make it eligible for inclusion in the closely followed MSCI Index.

Late Thursday, the BSP kept the key rate unchanged at 2 percent.

BSP Governor Benjamin Diokno said the decision was appropriate given the “manageable inflation environment.”

Data from the PSE showed property and services closing positive while mining and oil, financials, holding firms and industrial companies finished lower on Friday.

A total of 2.1 billion shares valued at P22.1 billion were traded. Losers outpaced gainers, 127 to 66, while 49 companies closed unchanged.

Converge ICT was the most actively traded on Friday as it dropped 3.25 percent to P31.25 per share.

It was followed by The Keepers Holdings Inc., down 86.82 percent to P1.69; Monde Nissin Corp., up 1.35 percent to P18.08; Globe Telecom, up 5.52 percent to P3,630; and Synergy Grid & Development Philippines Inc., down 4.42 percent to P14.70 per share.

Other active stocks were BDO Unibank Inc., down 1.88 percent to P125.60; AC Energy Corp., down 1.83 percent to P11.82; International Container Terminal Services Inc., down 2.02 percent to P189; Metropolitan Bank & Trust Co., down 1.38 percent to P50.10; and Universal Robina Corp., up 0.91 percent to P132.50 per share.

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TAGS: Converge, Philippine Stock Exchange index (PSEi), Stock Market
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