Axelum listing fails to prop up market

It was a lackluster day at the stock market yesterday even as the day saw the second initial public offering for the year, that of Axelum Resources Corp.

The benchmark Philippine Stock Exchange index finished at 7,683.22, down 21.38 points or 0.27 percent.

Likewise, the broader All Shares gauge slipped 9.43 points or 0.20 percent to end at 4,666.17.

The sectors were a mixed bag with the financials, holding firms and industrial ending in the red. On the other hand, the mining and oil, property and services indexes finished in the green.

Total value turnover reached P5.839 billion, reflecting the lackluster mood in the market. Breadth was negative, 97 to 86 while 57 issues were unchanged.

All eyes were on Axelum, traders said.

Axelum made its debut in the stock market yesterday with a share sale of P4 billion.

Its share price fell below the offer price fo P5 per share at the end of the trading session to P4.69 per share but officials said they were pleased with the result due to the strong subscription from a number of funds, both domestic and overseas as well as individual investors.

The IPO attracted a broad spectrum of investors, from retail to pension and retirement funds, insurance companies, trust funds, banks and a number of private corporations, as well as foreign funds, the company said.

“It was a quiet day for the PSEi as all eyes were on Axelum’s extremely poor debut, as the stock had fallen by as much as 16 percent at its intraday low of 4.19, before only being bought up at the close to end at 4.69. The index ended 21.38 points down at 7,683.22,” said Gabriel Perez of Papa Securities.