Stocks down in light trade

Local stocks dipped in light trading yesterday as many investors chose to cash in ahead of the long Lenten break while others prepared for upcoming initial public offerings (IPOs).

The main-share Philippine Stock Exchange index gave up 17.56 points or 0.35 percent to close at 5,038.92 during the last trading day before the Holy Week break. For this shortened trading week, the index was down 1.3 percent.

The local stock market will resume trading on April 10.

Value turnover was at P3.7 billion, or less than half the average daily value traded in the first quarter of the year.

The market was weighed down by the financial, property, services and mining/oil counters while the industrial and holding firm sub-indices managed to firm up.

There were 82 advancers against 68 decliners while 51 stocks were unchanged.

Dealers said some investors were pocketing gains from the previous run-up ahead of the long weekend while some were raising funds to buy shares of upcoming IPOs. Two companies, GT Capital Holdings and East West Bank, are selling shares to the public this April. GT Capital’s domestic IPO will start next week at a price of P455 each or 13 times the profit that the company is likely to make this year. At least 30 percent of GT Capital’s P21.6-billion IPO is earmarked for the local market.

Among the stocks that contributed to the PSEi’s decline were BDO, Ayala, Metrobank, PLDT, Metro Pacific, ALI, AGI, Aboitiz Power, BPI and URC. Other stocks like Cebu Holdings, Security Bank and NiHao also fell in heavy trade.

On the other hand, SMIC, ICTSI, AEV and DMCI gained ground.  Petron was likewise up.

SMC and Petron gained 0.8 percent and 1.14 percent, respectively, after it was announced that a much-awaited deal for SMC to buy into Philippine Airlines was signed. The deal also included a substantial stake in affiliate budget carrier Air Philippines.