MANILA, Philippines—The local stock market defied the upbeat global markets on Wednesday, spooked by a Supreme Court ruling that questioned foreign equity ownership in index heavyweight PLDT.
The main-share Philippine Stock Exchange index shed 40.64 points or 0.94 percent to finish at 4,249.35. Apart from jitters over PLDT, dealers said month-end “squaring” of books likewise contributed to the decline as some investors’ pocketed gains.
First Pacific-led PLDT tumbled by P76 or 3.12 percent to close at 2,324 per share after the Supreme Court issued a ruling against the group of businessman Manuel V. Pangilinan on a petition alleging non-compliance with the 40-percent foreign equity ceiling in the telephone company.
Metro Pacific Investments, the local infrastructure arm of the First Pacific group, also saw its shares decline by 1.9 percent.
EDC, Aboitiz Power, ICTSI, DMCI, FLI, Ayala Corp., Lepanto B also traded in the red. Non-index stocks Leisure & Resorts also fell in heavy volume.
Value turnover amounted to P5.15 billion. There were 40 advancers, which were overwhelmed by 74 decliners, while 47 stocks were unchanged.
Among the day’s gainers were SM Investments, Philex, AGI, San Miguel, Metrobank and BPI. Anglo-Philippine was likewise up in heavy trade.
Overnight, the closely watched Dow Jones Industrial Index rallied for the second straight day, gaining 145.13 points or 1.21 percent to 12,188.69. Investors across the globe took heart from news that the Greek debt restructuring plan was gaining support from international creditors.
“While important details are still missing, our simulations suggest that a ‘top-up’ in official loans from the IMF (International Monetary Fund) and the EU (European Union) in a Euro 30-65 billion range would be enough to fund Greece until 2014 under fairly conservative assumptions,” said French investment bank Credit Agricole CIB.
The French proposal makes German approval of a second set of loans to Greece more likely, ultimately, Credit Agricole added.