PSEi slips on PLDT’s lower income

MANILA, Philippines – The stock market closed lower yesterday, dragged down by index heavyweight Philippine Long Distance Telephone Co. (PLDT) which reported a 33 percent decline in first half income to P12.5 billion.

The benchmark Philippine Stock Exchange index shed 32.03 points or 0.39 percent to end at 8,037.78, while while the broader All Shares index slumped 30.79 points or 0.64 percent to finish at 4,761.17.

Among the different sectors, only the financials index closed in positive territory, gaining 21.09 points or 1.14 percent to finish at 1,860.60.

On the other hand, the rest of the counters closed lower in negative territory.

Total volume turnover reached P7.25 billion as advancers edged out decliners, 104 to 101 with 44 stocks unchanged.

PLDT recorded losses for its investment in Germany-based Rocket Internet and its earnings from its mobile phone, data and landline businesses were little changed.

Luis Limlingan, managing director at Regina Capital said PLDT, which accounts for roughly 5.8 percent of the index as of the August 2 close, declined 8.15 percent.

PLDT closed at P1,962 apiece yesterday.

Investors’ anticipation of the ghost month also added to the negative sentiment.

“Similarly, other companies fell in anticipation of the ghost month which officially starts tomorrow, while investors weighed reports outlining the details of the Japan stimulus package. In addition, many remained on the sidelines as they await the release of the Bank of England’s decision,” Limlingan said.