Shares Tumble 8 Pts Amid Political Uncertainty

Stocks slid lower yesterday on thin trading as market players stayed on the sidelines while awaiting developments on President Estrada’s impeachment trial and the spate of protest rallies spearheaded by the opposition.

The 30-company main index fell for the third straight session, losing 8.02 points or 0.56 percent to 1,434.25 but the broader All-Shares index managed to inch up 14.84 points or 2.13 percent to 712.85 due to the pull by Canadian insurance giants Sun Life and Manulife.

Trade turnover dropped to P450.044 million from P600 million last Friday as investors limited their exposure on account of the poor market condition, hobbled largely by the struggle for survival by the Estrada administration.

Except for the oil sector which finished slightly higher, all counters closed in the red. Individual stocks, however, ended mixed with 30 advancers, 32 decliners and 32 unchanged issues.

While the general market sentiment was steadily trending down, there was, again, a noticeable upsurge in buying activities shortly before the close of trading, which some attribute to buying orders from the government financial institutions (GFIs).

Eagle Equities president Joey Roxas said the GFIs have been figuring prominently in the equities market "because they are the only ones left."

"It could be that while their exposure would amount to the same level, their share in the total transactions have been increasing since the volume of trades has been dropping," he said.

Interestingly, the bulk of trades was in Equitable PCI Bank, which staged an upset of sorts when the then mid-sized Equitable Bank – helped along by the GFIs – beat out banking heavyweights in last year’s bidding for PCI Bank. With 20.3 percent of aggregate turnover, Equitable shares closed steady at P62, following its disclosure that it has reached an agreement with HSBC Ltd. to sell 100-percent equity stake in PCIB Savings Bank for approximately P1.1 billion or $22 million.

"The approximate purchase price is based on a price formula set forth in the agreement and is subject to further adjustment depending on the resolution on certain valuation issues. The sale is expected to be completed by the end of this year," Equitable PCI said in a statement.