PSEi plunges as investors dump stocks

MANILA, Philippines — Stock market investors dumped their shares yesterday in a massive sell-off the morning after Monday’s elections as they digested the implications of a Ferdinand Marcos Jr. presidency after early counting put the late dictator’s son and namesake more than 15 million votes ahead of his closest rival.

Traders said investors are waiting to hear Marcos Jr.’s economic programs as well as his plans for a more aggressive COVID response.

“Investors would be closely monitoring the elections if it would be clean, honest, credible and peaceful, as an important first step of democracy. The next step would be to evaluate the incoming president’s platforms and reforms for the first 100 days, especially the members of the Cabinet or economic team,” said Michael Ricafort of Yuchengco-owned Rizal Commercial Banking Corp.

Key success factors for the new Philippine president would be to have a competent economic team, stronger institutions and a more effective response against COVID, Ricafort said.

The initial election results resulted in a sea of red at the stock market yesterday with the benchmark Philippine Stock Exchange Composite index (PSEi) closing at 6,720.93, down 38.97 points or 0.58 percent.

The PSEi managed to pare losses by the end of the trading session after opening 1.89 percent lower at 6,632.35.

The broader All Shares index slipped 37.08 points or 1.02 percent to finish at 3,584.62.

Companies associated with businessman Gregorio Ma. Araneta III, the brother-in-law of Marcos Jr., however, saw their shares rally yesterday.

PhilWeb rallied by 30.97 to close at P4.06 per share while Araneta Properties rallied by 30.77 percent to close at P1.70 per share. Both companies are chaired by Araneta.

The sectoral gauges likewise were mostly red except for holding firms, which gained 0.43 percent.

Total value turnover reached P23.188 billion and market breadth was negative, 169 to 52 while 34 issues were unchanged.

Yesterday’s active stocks were also mostly in the red with SM Prime Holdings leading the roster with a decline of 1,99 percent to close at P34.50 per share.

The rest are Razon-led ICTSI which lost 0.18 percent to close at P219.80 per share; BPI, down 0.42 percent to close at P94 per share; SM Investments Corp., down 0.06 percent to finish at P845 per share; and telco giant PLDT which lost 2.22 percent to close at P1,848 per share.

Also on the list are Semirara Mining & Power Corp. which was down 4.24 percent to finish at P27.10 per share; Ayala Land Inc., down 3.08 percent to close at P31.50 per share; Converge, down 5.32 percent to close at P27.60 per share and Nickel Asia which spiraled down to P6.60 per share, losing 14.51 percent.