Index plunges ahead of GDP performance report

Traders said a host of factors affected yesterday’s performance including anticipation of third quarter economic performance which may be slower-than-expected.
Edd Gumban

MANILA, Philippines — The benchmark Philippine Stock Exchange index plunged 146.18 points, or 2.03 percent, to settle at 7,033.93 as did the broader All Shares gauge which retreated by 73.16 points to close at 4,298.92.

Traders said a host of factors affected yesterday’s performance including anticipation of third quarter economic performance which may be slower-than-expected.

The sectoral indices also declined except for the mining and oil.

As expected, market breadth was negative, 165 to 38, while 41 issues were left unchanged.

Total value turnover reached P46.5 billion, which included the block sale of San Miguel Food and Beverage Inc.’s follow-on offering, the offer period of which ran from Oct. 29 to Nov. 6. SMFB had targeted to raise P39 billion.

 Commenting on yesterday’s performance, Christopher Mangun of Eagle Equities said the main index closed lower again as most investors focused on trading second-liners in anticipation of the third telco bidding documents submission.

Yesterday’s much-anticipated third telco bidding, however, turned out to be a one-horse race with Dennis Uy’s Udenna emerging as the lone qualified bidder.

Nevertheless, Globe and PLDT shares took major hits yesterday, which was expected as investors moved to companies that would challenge the current duopoly.

Moving forward, the western markets’ performance after the recent US elections would likely signal the market’s direction.

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