Foreign selling drags PSEi below 7,900 territory
THE main index failed to sustain its hold above the 7,900 — a level it stuck to for over a week — after foreign investors dumped over P1 billion of shares amid jitters over the direction of US interest rates.
Joseph Y. Roxas, president of Eagle Equities, Inc., said the market was having difficulty pushing for a rally.
“There might be a pullback first,” he said.
The Philippine Stock Exchange index (PSEi) declined by 69.05 points or 0.87% to 7,866.13, while the broader all- shares index slipped by 36.31 points or 0.77% to 4,662.63.
Miko A. Sayo, a trader at Angping & Associates Securities, Inc., blamed the decline to foreign selling. He expects the next support at 7,750. Early in the week, he was “cautiously bullish” as the market appeared to be holding on above 7,900. The PSEi stayed above the 7,900- mark for nine days after rising past 8,000 for two days.
Foreign investors sold P5.76 billion worth of shares and bought far less at P4.27 billion, resulting in a net selling of P1.49 billion, or more than three times Tuesday’s P464.51 million.
The total value of trading increased to P9.97 billion, up nearly 46% from P6.85 billion previously.
Five stocks lost for every two that rallied or 136- 55, while 48 issues finished unchanged.
The mining and oil index was the only sector that finished in the green as it gained 38.92 points or 0.37% to 10,651.66. Global Ferronickel Holdings, Inc. was among the top gainers.
Industrial stocks recorded the biggest drop at 165.43 points or 1.38% to 11,831.36.
PhilWeb Corp. shares surged by 17.39% to close at P5.40 each. The listed gaming company wrote a letter to the Philippine Amusement and Gaming Corp. (PAGCOR), presenting its business plan that is based on a proprietary software developed by the company that allows a lotto bettor to text his chosen number to PhilWeb or PAGCOR servers via Smart mobile phones. PhilWeb placed the potential revenue from the proposal, called PAGCOR text bonanza, at P50 billion to P100 billion a year.
Universal Robina Corp., Ayala Land, Inc., Security Bank Corp., Robinsons Retail Holdings, Inc. and Megaworld Corp. were the most active stocks.
Losing the most on Wednesday’s session were Leisure & Resorts World Corp., Bloomberry Resorts Corp., Pryce Corp., SOCResources, Inc. and Makati Finance Corp.
Before yesterday’s session, 2TradeAsia. com was expecting some gains, which it said might be offset “by the growing concerns ahead of the Jackson Hole symposium on Friday as investors will be taking their cue from any hints on what will be the decision on the Fed’s next meeting on September. Immediate support 7,890, resistance 8,000.”