PSEi ends week in the red anew

MANILA, Philippines — The local stock market closed the week lower again yesterday, bucking the trend in most Asian markets that followed Wall Street higher on hopes Washington will provide more aid to the struggling US economy.

The Philippine Stock Exchange index (PSEi) ended at 5,931.61, down 11.05 points or 0.18 percent from Thursday’s close.

On the other hand, the broader All Shares index finished in the green at 3,563.85, slightly up 0.20 point or 0.006 percent.

Stock prices have been volatile since mid-September as investors swing between optimism about possible development of a coronavirus vaccine and unease that markets recovered too fast and shares are too expensive.

“The on-and-off nature of the fiscal stimulus discussion in the US hardly inspires lasting confidence,” said Mizuho Bank in a report. “Uncertainty around the presidential election on  Nov. 3  will likely persist not only through to polling day but possibly after.”

Total value turnover stood at P5.628 billion. Market breadth was positive, 119 to 76, while 43 issues were unchanged.

Some traders said investors are staying on the sidelines now as they may be recalibrating their portfolio ahead of the upcoming initial public offering of Converge ICT valued at P16.80 per share or P29 billion.

At this size, this would be the largest IPO in the history of the local stock market and the largest telecom IPO in Southeast Asia.

Converge ICT is targeting to list on Oct. 26 after an offer period which would commence on Oct. 12.

It would be the second market debut this year following the blockbuster IPO of Injap Sia II’s grocery chain operator MerryMart Corp.