Stocks close weaker as traders turn to US markets

MANILA, Philippines — The stock market closed the week on a sour note behind recent developments in the US political landscape.

The Philippine Stock Exchange index fell 0.97 percent or 77.26 points to finish at 7,819.22 on Friday.

The broader All Shares index likewise lost 0.85 percent or 40.53 points to settle at 4,728.81.

“Shares slid as traders monitored the latest trade developments and assessed a whistle-blower complaint against President Donald Trump that was released,” said Regina Capital’s Luis Limlingan.

Limlingan said positive statement on China-US trade talk, however, was able to limit losses in the overnight markets.

Local counters were covered in red, with mining and oil being the biggest casualty with a 2.62 percent or 241-point drop. Holding and property counters fell by more than one percent each.

Net foreign selling amounted to P464 million.

Market breadth was negative as decliners pummeled advancers, 133 to 57, while 43 stocks did not change. Value turnover stood at P5.93 billion.

“While we remain a buy on the index, we’ve been flagging the past few days that we would prefer to wait near its recent lows at the 7,620 level. With a lack of catalysts in the local scene in the near-term, movement could likely be dictated by US market movement and foreign flows,” Gabriel Perez of Papa Securities said.

source: philstar.com

With stocks on free fall, blue-chip firms say buyback not on the table

MANILA - As the stock market plummets, a number of blue-chip firms today said they are unlikely to buy back their shares, prodding the investing public to instead take positions, as economic fundamentals remain intact.

"As a company, we should let the market dictate the price be it consumer product, housing or the stock exchange. This correction is good so we can avoid a bigger problem," Jose Sio, SM Investments Corp chief financial officer, said during a forum jointly organized by ING and the Economic Journalists Association of the Philippines (EJAP).

"What's wrong with our company? Nothing. What's wrong with our finances? Nothing. So why worry?" Sio said.

Likewise, Ayala Corp is not contemplating on any share buyback, its managing director Eric Francia said, adding that it was not company policy to "influence the share price."

"We will focus on investments versus buy-back, so no immediate plan to buy back our shares," Francia said.

He said the conglomerate implemented a share repurchase program four years ago because there were limited investment opportunities back then.

"The value was also really low at least from where we sit. We had excess capital, so given those three conditions we did some buy-back," Francia said.

In the same forum, Ysmael Baysa, Jollibee Foods Corp (JFC) chief financial officer, said the market's downtrend is still "healthy" and not "catastrophic."

"We are not looking at buying back shares and this is a good time for investors to also get into the market and buy Jollibee shares," Baysa said, noting that JFC was the second best-performing stock in the Philippines as of yesterday.

"I know there are a lot of influence in our shares and I think companies are waiting for opportunities to get in to buy JFC shares of stock so we look forward to that. I think this is a good time to make investments," Baysa said.

Jollibee today shed 3.14 to P154 each, while SM dropped 7.45 percent to P634 per share. AC fell 3.47 percent to P500 apiece.

The benchmark index on Wednesday wiped out its year-to-date gains to close at its weakest level for the year. The PSE index plunged 178.93 points or 3.02 percent to finish at 5,738.06 amid a global selloff triggered by mounting political tensions in Syria.

source: interaksyon.com

PSE among best stock markets in 2012

MANILA, Philippines - The Philippine Stock Exchange ranked third globally among top performing bourses last year in terms of domestic market capitalization, PSE reported on Tuesday.

Citing a report from the World Federation of Exchanges, the local bourse said that it was only outpaced by the stock exchanges in Turkey and Thailand after posting a 38.9 percent expansion in 2012. WFE is composed of 50 bourses all over the world.

“Ranking among the top markets around the world is a feat which I think all Filipinos can be proud of as we are pitted against the best of the best markets in these global rankings. This is a testament to what we have been saying that the Philippines is now indeed in the global radar for investments and these numbers prove our worth as a viable investment destination,” PSE President and Chief Executive Officer Hans Sicat said.

The report likewise noted that the PSE ranked third after the Saudi Stock Exchange and the Bermuda Stock Exchange after posting a 25.3-percent growth in the value trading turnover. It also placed fourth in terms of trades growth and fifth in terms of broad market index growth.

In 2011, PSE also ranked first in the growth of its broad market index, third in domestic market capitalization and fourth in trading turnover among 51 stock exchanges. PSE added that among the top performing stock markets in 2011, it was the only one which figured in the best performing markets list by posting growth across all growth metrics.

“For two consecutive years, our stock market has been recognized among the fastest growing markets. This just shows that our growth has been sustainable particularly as it founded on the increased economic activity in the country. We are excited about the outlook in 2013 as we also undertake new programs and introduce new products in our stock market to keep the growth momentum in the coming years,” Sicat added.

source: philstar.com