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Philippine stocks tumble on profit-taking, foreign ownership concerns

/ 06:57 PM December 10, 2012

Photo from PSE

MANILA, Philippines—Local stocks tumbled on Monday due to profit-taking and concerns on foreign ownership regulations in the country.

The main-share Philippine Stock Exchange index shed 36.66 points, or 0.63 percent, to close at 5,757.54, pulling back from last week’s all-time highs.

“I guess there was already profit-taking from the high,” said Jose Mari Lacson, head of research at Campos Lanuza & Co.

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The Makati Business Club also warned that some P383 billion worth of stocks would have to be unloaded by foreign investors if the Securities and Exchange Commission were to prescribe a 60-40 percent local-foreign ownership ratio on all classes of shares.  This is as a result of an earlier ruling on the foreign ownership of index heavyweight PLDT.

PLDT, the most valuable stock in the market with a single largest weight of 12.59 percent on the PSEi, fell by 1.06 percent.  BDO also dropped by 2.41 percent.

Other large-cap stocks that dropped sharply on Monday were AEV (-3.47 percent), Megaworld (-2.87 percent), RLC (-2.39 percent), MWC (-1.84 percent), Globe (-1.49 percent), URC (-1.29 percent), Belle (-1. percent) and MPI (-0.88 percent).

On the other hand, the index stocks that bucked the day’s downturn were Metrobank (+1.48 percent), ALI (+1.02 percent) and AP (+1.08 percent).

MIH was up by 2.67 percent in heavy trade on news that Melco is taking over the company as a prospective backdoor listing vehicle for its Philippine gaming interests.

Value turnover amounted to P5.89 billion. There were 67 advancers, which were overwhelmed by 96 decliners while 49 stocks were unchanged.

TAGS: foreign direct investments, foreign ownership, Markets and Exchanges, Philippine Stock Exchange, Philippines, Stock Activity, Stock Market, stocks
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