PH equities retreat as US posts 2nd quarter of negative growth

Philippine shares pulled back on Friday as wary investors booked gains after the US economy contracted for a second consecutive quarter.

The benchmark Philippine Stock Exchange index (PSEi) sank 0.99 percent, or 63.33 points, to 6,315.93 while the broader All Shares index shed 0.76 percent, or 26.14 points, to 3,398.82.

“Philippine shares were sold to close the month after successive bargain hunting session, as they became wary of the negative US [gross domestic product] reading,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Friday.

Furthermore, the PSEi was weighed down by Manila Electric Co.’s (Meralco) 7-percent drop after its shares were unloaded at a discount by conglomerate JG Summit Holdings.

Trading value jumped to P18.04 billion on Friday after JG Summit completed a block sale of 36 million Meralco shares worth P12.38 billion, data from the PSE showed.

Metro Pacific Investment Corp. said on Friday it bought 22.54 million Meralco shares. Another P1.97 billion in net foreign buying was recorded during the session.

Holding firms were lower by 2.38 percent, followed by industrial, down 1.96 percent; mining and oil, down 0.21 percent; and property, down 0.07 percent. Services and financials rose 0.63 percent and 0.39 percent, respectively.

Ayala Land Inc. was the top traded stock during the session as it rose 1 percent to P25.25 per share.

It was followed by Meralco, down 7.1 percent to P340; SM Prime Holdings Inc., down 0.27 percent to P36.60; SM Investments Corp., down 3.06 percent to P775.50; and Converge ICT Solutions Inc., down 3.55 percent to P19 per share.

Overall, there were 116 losers against 74 advancers while 50 companies closed unchanged.

—Miguel R. Camus