Share prices retract as telco bidding hangs

MANILA, Philippines — The stock market is back in the red again with investors still digesting the results of the third telco bidding, especially with controversies hounding the outcome.

In particular, losing bidders are questioning the process, while lawmakers also raised questions on the track record of the consortium led by Dennis Uy and China Telecom.

Shares of the existing duopoly continue to slide with PLDT shares down 4.98 percent to P1,220 and Globe down 5.21 percent to P1,728.

The benchmark Philippine Stock Exchange index lost 66.89 points, or 0.95 percent, to end at 6,968.82, while the broader All Shares gauge shed 19.99 points or 0.46 percent.

The sectoral indices were also battered.

However, market breadth was positive, 105 to 84 in favor of advancing stocks, while 53 issues were unchanged.

Total value turnover reached P5.95 billion.

Commenting on yesterday’s trading session, Astro del Castillo of First Grade Finance Inc. said developments in the telco industry continue to dictate the pace of the market.

“Selling pressure in PLDT and Globe weighed down the PSE. Some funds were seen transferring to ISM, which closed 7.94 percent higher and Now Corp., which rose 24.49 percent,” Del Castillo said.

He advised investors to start  accumulating select stocks again if the index continues to hover below the 7,000 mark.