Monde Nissin takes a battering; PSEi ends rally

Philippine shares retreated on Thursday after a four-day winning streak as investors booked profits while index company Monde Nissin Corp. plunged after members of the European Union issued a health warning over some of the firm’s products.

The benchmark Philippine Stock Exchange index (PSEi) lost 1.44 percent, or 92.69 points, to 6,352.32 while the broader All Shares index sank 1.09 percent, or 37.51 points, to 3,405.39.

“Traders cashed in [at] the Philippine market after successive sessions in the green,” said Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development.

He said investors also turned more risk-averse following the release of the minutes of the US Federal Open Market Committee’s meeting in June.

“Fed officials reiterated a tough stance against inflation, saying another 50-basis point or 75-basis point move would ‘likely be appropriate’ at the July 26-27 meeting,” Limlingnan said.

Monde Nissin, meanwhile, was roiled by news that the governments of France, Ireland and Malta had issued health safety warnings after discovering a harmful chemical in the company’s Lucky Me! instant noodle products. Monde shares fell over 7 percent on Thursday.

The company said in a separate statement that “traces” of the chemical ethylene oxide may show up in sauces and seasonings, adding this was a “commonly used treatment” in preparing certain raw materials.

A total of 708.5 million shares valued at P4.7 billion changed hands while foreigners switched back to selling after dumping a net amount of P662.86 million.

Ayala Land Inc. was the most actively traded on Thursday as it dropped 2.79 percent to P26.15 per share.

It was followed by International Container Terminal Services, Inc., down 4.17 percent to P186.20; BDO Unibank Inc., down 2.68 percent to P116.30; Monde Nissin, down 7.22 percent to P13.22; and PLDT Inc., down 3.7 percent to P1,693 per share.

Ayala Corp. was up 0.62 percent to P654, followed by SM Investments Corp., up 0.6 percent to P844.

Overall, there were 103 losers against 68 advancers while 51 companies closed unchanged, PSE data showed.

—Miguel R. Camus