Philippine stocks fall for 2nd day

MANILA, Philippines—Most local stock prices dipped for a second day on Thursday, tracking lackluster regional equity markets ahead of a crucial European Central Bank meet.

The main-share Philippine Stock Exchange index shed 5.32 points, or 0.1 percent, to close at 5,293.40.

The local index was weighed down most by the mining/oil and property counters.

Turnover amounted to P5.5 billion. There were 75 advancers, which were edged out by 94 decliners, while 45 stocks were unchanged.

The PSEi’s decline was led by ALI (-2.44 percent) while AGI, SMIC, Metrobank, PLDT and DMCI also fell. Another notable decliner was ABSCBN-PDRs (-5 percent).

But while investors were mostly locking up gains from blue chips, they have channeled money to selected index issues like BDO (+1.19 percent), BPI (+0.81 percent), AC (+0.24 percent) and URC (+0.25 percent).

The day’s notable gainers, however, were non-index stocks that have benefited from positive stories recently.

The day’s stellar performer remained Tanduay as the market started recomputing for its fair valuation on news that all major businesses of the Lucio Tan group will be folded into this vehicle. Shares of Tanduay, the most actively traded stock, surged by 49.8 percent to finish at P11.46 per share. Some analysts have valued Tanduay at P16 to P18.4 per share given the infusion of a P200-billion asset pool alongside up to P60 billion in liabilities into the company.

Other notable performers were Security Bank (+4.54 percent), Pepsi Philippines (+4.59 percent), East West Bank (+3.28 percent) and Puregold (+1.31 percent), which all offered strong growth stories.

Metropolitan Bank said in its daily note that after US equities declined on Wednesday—as the US Federal Reserve stopped short on offering new measures to stimulate the economy—focus would now be turned to the ECB meeting.

“Investors are expecting a detailed plan to bring down the borrowing costs of Italy and Spain,” Metrobank said, noting that a sluggish trading was expected ahead of the ECB meeting.

“The positive catalyst would still be the second-quarter earnings results,” Metrobank said.