Index retreats on lack of fresh leads

MANILA, Philippines – Share prices declined yesterday due to the absence of fresh leads as investors continued to digest the P70 billion transaction involving San Miguel Corp., Philippine Long Distance Telephone Co. and Globe, analysts said.

The benchmark Philippine Stock Exchange index declined 62.74 points, or 0.84 percent, to end at 7,401.60, while the broader All Shares index declined 26.99 points, or 0.61 percent, to close at 4,432.82.

Analysts said despite the general uptrend in Asian stocks, the local market ended in negative territory as investors continued to digest the P70 billion transaction involving San Miguel Corp., telecommunications giants PLDT  and Globe.

SMC sold its telecommunications assets to the two telco giants for P70 billion, pushing the shares of the two companies higher.

Under the deal, PLDT and Globe purchased 50 percent each of the equity interest of SMC’s telecommunication business which is held by Vega Telecom Inc.

Vega owns an equity stake in listed SMC unit Liberty Telecoms Holdings Inc. as well as in various companies including Bell Telecommunication Philippines Inc., Eastern Telecommunications Philippines Inc., Cobaltpoint Telecommunications Inc. (formerly Extelcom), Tori Spectrum Telecommunications Inc. (formerly wi-Tribe) and Hi-Frequency Telecommunication Inc.

Value turnover reached P32.80 billion with foreign buying reaching P25.71 billion and foreign selling hitting P23.40 billion.