Share prices resume drop as Greece, poll worries linger

MANILA, Philippines - The local stock market slid to another loss yesterday as lingering doubts about Europe and the upcoming national elections continue to weigh on investor sentiment, traders said.

“There is too much uncertainty surrounding the two for the main index to suddenly reverse (Wednesday’s) misfortunes. The situation in Europe remains tenuous as Greece may not be the last country that needs rescuing. Locally, there are now questions as to whether the elections can push through in and if it will be automated,” said Prince Anthony Yeung, an analyst at AB Capital Securities, in an online report.

But he pointed out that the mood, however, was relatively more calm than the rapid selling seen last Wednesday.

The 30-company benchmark Philippine Stock Exchange index (PSEi) shed 9.02 points or 0.28 percent to close at 3,167.83.

Trading activity was thinner although block sales involving blue chips PLDT and Metrobank put total value traded at P7.63 billion.

“The looming elections, and all its questions, still had a strong grip on the market. Other issues that were relevant include the debt problems of Greece, as well as the recomposition of the PSEi,” Yeung added.

DMCI Holdings, First Gen Corp. and The Philippine Stock Exchange) were all lower yesterday. Effective May 11, the first trading day after the elections, the three will no longer be part of the main index. Taking their places will be China Banking Corp., ABS-CBN Broadcasting Corp. (and Metro Pacific Investments Corp. As expected the three that will be removed from the index were lower and the three that will replace them outperformed the market.

Yeung said while inflation stayed benign in April, which will allow the central bank to keep interest rates low until towards the end of the year, some first quarter corporate figures have been disappointing.