Philippine stocks shed 33 points on profit-taking
MANILA, Philippines—Local stocks pulled back from all-time highs Tuesday as investors pocketed gains while many regional players were still on a holiday break after the Lunar year turnover.
The main-share Philippine Stock Exchange index lost 33.55 points, or 0.71 percent, to close at 4,714.35 as heavy selling sent all counters to negative territory.
“Most other parts of the region are still on vacation so foreign buying (of index stocks) is not as strong. This may last for a few days. Besides, it’s really time to take a breather after so many days of run-up,” said Eagle Equities president Joseph Roxas.
Value turnover was extraordinary at P17.23 billion due to the cross-sale of P7.56 billion worth of Petron shares unloaded by the company’s retirement fund and the cross of Digitel shares acquired by PLDT after a tender offer to minority shareholders. There was P5.51 billion in net foreign buying largely due to the sale of the shares of Petron, which is not part of the PSEi basket, to overseas buyers.
“Overall, we are excited about the market’s prospects for 2012, which is supported by the Philippines’ growth story and the recovery staged by Western markets,” PSE president and chief executive Hans B. Sicat said.
There were 78 advancers, which were overshadowed by 89 decliners, while 36 stocks were unchanged.
The index was weighed down by profit-taking on PLDT, Metrobank, AGI, MPI, Petron, Ayala, ICTSI, Philex and Aboitiz Equity Ventures. Lepanto-B and Nickel Asia were also in the red.
Banking stocks BDO and BPI helped curb the PSEi’s decline. Lepanto-A (open only to local investors) also gained ground. First Holdings and GMA-Philippine depositary receipts also traded higher on heavy volume on merger-and-acquisition plays.
First Holdings unlocked more value out of its remaining interest in Meralco by selling 2.66 percent to the First Pacific group while keeping one board seat even if its interest has gone down to 3.9 percent. Its shares went up by 1.9 percent to P63.20 per share.
GMA Holdings surged by 10.2 percent to P8.10 per share while direct GMA7 shares likewise rallied by 10.71 percent to P8.06 on persistent rumors that the group of Manuel V. Pangilinan is bidding for control of this broadcasting giant.
Originally posted: 5:31 pm | Tuesday, January 24th, 2012
