Weak PLDT performance dampens index

MANILA, Philippines - Philippine share prices sagged on Tuesday as index heavyweight Philippine Long Distance Telephone Co. dragged the benchmark index down with its unexpectedly-low third quarter earnings.

The Philippine Stock Exchange index (PSEi) plunged 1.24 percent or 90.84 points to end at 7,222.01, while the broader all shares index tumbled 0.98 percent or 42.04 points at 4,244.30.

It was a disappointing performance for the PSEi following Monday’s return above the 7,300 level for the first time in over a month. Analysts were expecting the bellwether index to ride high on the momentum on Tuesday.

Joyce Ramos, analyst at AB Capital Securities Inc., said PLDT’s earnings result immediately made its impact to the local market upon its release in the afternoon. Prior to that, Ramos said the market’s morning trading was still healthy.

PLDT’s share prices fell 3.49 percent after it suffered a 14-percent net income decline in the third quarter.

Ramos said the drop was unexpected for most investors, which is why the outcome was immediately felt in local share prices.

All counters finished in the red, led by the services firms which plummeted by 2.07 percent or 46.32 points. PLDT’s weight to the services counter accounts to about 48 percent.

Market breadth was negative as decliners crushed advancers, 128 to 57, while 42 stocks were unchanged. Turnover value stood at P8.51 billion.