THE benchmark PSEi recovered from more than a 1 percent morning fall and closed Friday with a marginal 0.01 percent loss, after investors took profit ahead of the initial public offerings (IPO) of Eagle Cement Corp. and Cebu Landmasters Inc.
“It is purely a technical correction, and possible withdrawals for the forthcoming IPOs,” Summit Securities, Inc. President Harry Liu said in a text message.
The PSEi dipped 0.01 percent or 0.87 points to 7,815.53 at the closing bell. The wider All Shares declined by 0.19 percent or 8.62 points to close at 4,648.26.
Eagle Equities President Joseph Roxas said investors sold stock positions in favor of IPO shares.
The Philippine Stock Exchange approved on Wednesday the IPO applications of Eagle Cement and property developer Cebu Landmasters.
Eagle Cement is offering 500 million primary shares at P15 per share, with an overallotment option of 75 million shares. Cebu Landmasters, on the other hand, will be offering a total of 505 million shares, both primary and secondary shares, at P5 per share.
The offer period of Eagle Cement is from May 16 to 22, Cebu Landmasters has set an offering period of May 19 to 26.
Marita Limlingan, president of Regina Capital Corp., noted the telecommunications sector set the mood as “telco earnings are below expectation, therefore their market price have been downgraded. This pulled overall market sentiment.”
COL Financial Research Head April Tan and IB Gimenez Securities Research Head Joylin Telagen noted the earnings results were a disappointment.
“As it starts to trickle in, though it’s mixed, unexpected earnings declines lead investors to cash in on gains. Earnings of Universal Robina Corp. declined due to the challenges it faced in the branded consumer group,” Telagen said.
Most sectoral indices—Property, Industrial, Mining and Oil, and Holding Firms—were in the red. Financials and Services posted gains.
The biggest losers were Universal Robina Corp. (-2.99 percent), Semirara Mining and Power Corp. (-2.03 percent), Globe Telecom Inc. (-1.07 percent) and AyalaLand Inc. (-1.02 percent).