PHILIPPINE equities prices dropped for the second consecutive trading day on Wednesday, as investors rebalanced portfolios after a change in the composition of the main index.
The PSEi lost 69.05 points or 0.87 percent to close at 7,866.13, while the broader All Shares lost 36.31 points or 0.77 percent to end at 4,662.63.
The Philippine Stock Exchange has adjusted the composition of the PSEi and the sectoral indices, causing a sell-off in Bloomberry Resorts Corp.—down 13.53 percent or P5.37 at P6.21 per share.
Bloomberry was removed from the top 30 stocks that make up the PSEi, and was replaced by Security Bank Corp. Security Bank shares gained P5.20 or 2.44 percent to close at P218.40 per share.
“Bloomberry declined by 13.53 percent due to the possible changes in tax fees for gaming companies, and being replaced by Security Bank on the PSEi effective September 12,” equities analyst Nisha Alicer of DA Market Securities Inc. said in a text message to The Manila Times.
“Also index members Universal Robina Corp. and JG Summit Holdings were also dragged by news on sweetened beverages facing excise tax by January 2017, with a yearly 4 percent increase,” she said.
The balancing of portfolios also caused a sell-off in snack food maker Universal Robina, after the Cabinet-level Development Budget Coordination Committee proposed before Congress to impose an excise tax on unhealthy food.
Shares of Universal Robina lost as much as 2.55 percent or P4.70 to P179.50 at the closing bell.
Some 1.50 billion shares were traded, valued at P9.96 billion. Losers outpaced gainers, 136 to 55, while 48 issues were unchanged.
“Post-first half 2016 earnings and ahead of [Fed Chair Janet] Yellen’s speech on Friday, investors are in a cautious mood. If we fall in the recent low of 7,850, we can test next support at 7,650 to 7,350. The Philippines is surely in an opportunity for investors to buy on dips,” Alicer noted.
On Tuesday, the PSEI declined by 0.58 percent or 46.03 points to 7,935.18, while the All Shares lost 0.51 percent or 24.07 points at 4,698.94.