Stocks down 1.14%

The local stock index returned to the doldrums Friday as investors squared off ahead of a long weekend break and the sluggish sentiment in the region.

The main-share Philippine Stock Exchange index shed 59.49 points or 1.14 percent to close at 5,143.35, likewise weighed down by an overnight discounted equity placement by blue chip SMIC.

The holding firm and property counters contributed most to the index decline, respectively falling by 2.3 percent and 1.89 percent.

The index decliners were led by SMIC, which tumbled by 5.37 percent or P40 to close at P705 a share. This was after the company placed out $150 million shares at P700 each through an overnight top-up placement.

SMIC has the second-biggest weight on the PSEi at 8.6 percent, after PLDT’s 14.85 percent.

Value turnover amounted to P10.57 billion. There were 44 advancers, which were overwhelmed by 114 decliners, while 36 stocks were unchanged.

“I think it is more a combination of seasonality, long weekend and rebalancing out of expensive stocks,” said First Metro Asset Management president Gus Cosio.

On SMIC, Cosio noted that there was follow-through buying by those who were not able to fill their demand and those who did not get any shares from the overnight offering.

Aside from SMIC, AC (-2.09 percent), ALI (-2.5 percent), AGI (-1.05 percent), URC (-2.12 percent), Megaworld (-3 percent), Cebu Air (-2.23 percent), SM Prime (-1.45 percent) and RLC (-2.37 percent) also weighed down the index. Other index stocks that contributed to the decline were Metrobank, DMCI, BDO, SMC and AEV. Among non-index stocks, ABS PDRs, Security Bank and FPH closed lower.

On the other hand, the PSEi’s decline was tempered by a 0.73-percent gain by index heavyweight PLDT.

Across the region, stock markets were mostly lower on global growth concerns. The market also tempered hopes of further monetary easing by the US Federal Reserve. Doris C. Dumlao