Shares of BDO, Dennis Uy firms sink after debt default mess
The benchmark Philippine Stock Exchange index (PSEi) closed lower on Monday while BDO Unibank Inc. was sold down after it issued a default notice on a company controlled by Davao-based tycoon Dennis Uy.
The PSEi lost 0.86 percent, or 53.86 points, to 6,209.53. The broader All Shares index shed 0.63 percent, or 21.29 points, to 3,359.77.
BDO was the heaviest traded company as it sank over 4.6 percent.
The lender said on Monday it served a default notice on Uy’s Clark Global City Corp., raising worries on the financial health of Uy’s business group, which aggressively expanded over the past six years while its debts swelled.
Uy’s holding company, Udenna Corp., said it had not defaulted on any bank loans in connection with missed lease payments in the Clark Global City project to government-run Clark International Airport Corp. Udenna said the amount of about P174 million was fully paid on Monday.
Shares of Uy listed companies declined on Monday, but losses were pared by the session’s close.
Uy’s Chelsea Logistics Holdings Corp. plummeted 11.81 percent to P1.12 per share, telecommunications unit DITO CME Holdings lost 3.43 percent to P3.94 per share, Phoenix Petroleum Philippines Inc. went down 10.94 percent to P8.71 per share while Philippine Resorts Group Holdings dropped 2.5 percent to P0.78 per share.
Meanwhile, a total of 517.71 million shares valued at P4.3 billion changed hands on Monday.
As noted above, BDO led the list of actively traded stocks as it retreated 4.62 percent to P115.60 per share.
It was followed by Ayala Land Inc., down 3.61 percent to P24; PLDT Inc., down 3.65 percent to P1,611; SM Investments Corp., up 0.13 percent to P789; and International Container Terminal Services Inc., down 1.2 percent to P180.50 per share.
Emperador Inc. rose 0.32 percent to P18.90; Ayala Corp., down 1.32 percent to P600; SM Prime Holdings Inc., up 3.47 percent to P37.25; Converge ICT Solutions Inc., down 2.44 percent to P20; and Semirara Mining and Power Corp., down 1.11 percent to P40 per share.
Overall, there were 114 losers against 61 advancers while 47 companies closed unchanged, data from the PSE showed. INQ
