PSEi dips ahead of crucial EU meet

https://www2.pse.com.ph/ photo

MANILA, Philippines—Local stocks returned to the doldrums on Wednesday, ending a two-day bounce, as regional markets turned cautious ahead of a crucial European Union leaders’ meeting meant to contain the fiscal contagion.

The main-share Philippine Stock Exchange index lost 29.9 points, or 0.6 percent, to close at 4,928.53, reflecting sluggish trading across regional markets.

Most of the counters were down, especially the mining/oil sub-index, which tumbled by 1.16 percent. Only the financial counter ended in the green.

Value turnover amounted to P5.44 billion. There were 48 advancers, which were overwhelmed by 106 decliners, while 35 stocks were unchanged.

The index was weighed down by the price declines in SMIC, PLDT, Metrobank, Semirara, Ayala Corp., AGI, ALI, SM Prime and SMC. Security Bank shares likewise dipped.

On the other hand, the PSEi’s losses were tempered by the gains of DMCI, First Gen, Aboitiz Power, BDO and RLC. Other non-PSEi stocks that bucked the day’s downturn were FPH, GMA Holdings and GMA Network.

Stock market debutante Calata Corp. shares closed 2.67 percent higher at P7.70 per share, overcoming jitters that weighed down its newly listed shares in early trade.

European Union leaders were expected to meet on Wednesday to work on a proposal from newly elected French president Francois Hollande for the EU to issue regional bonds underwritten by member states.

“Global markets are at a crossroad,” said Banco de Oro Unibank chief strategist Jonathan Ravelas. “Developed markets and regional markets are off the highs on fears from the euro (zone). Fundamentals remain constructive but charts signal volatility.”