PSEi flat after off-target Q3 earnings

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The benchmark stock exchange index ended a three-day run and finished little changed on Wednesday, with some stocks posting slight losses as lower-than-expected third-quarter corporate earnings results prompted investors to cash in on an earlier rally.

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Despite gaining throughout most of the day, the Philippine Stock Exchange index (PSEi) slipped at the end of the session by 0.09 percent or 6.17 points to close at 7,269.49, while the All Shares index likewise dipped by 0.03 percent or 1.34 points to 4,274.71.

“The PSEi stayed in the green for much of the session but the weight of mixed results from the region fell heavily on the shoulders of investors as the earnings season, itself a relative disappointment, unwound,” Justino Calaycay Jr. of Accord Capital Equities Corp. said.

Asian markets were mixed on Wednesday with the Japanese yen depreciating on Prime Minister Shinzo Abe’s call for a snap election by mid-December.

“The election is seen to serve as a referendum for ‘Abenomics’—an ambitious economic recovery platform that appears to have failed after Japan reported it entered a recession in third quarter,” Calaycay said.

Calaycay also said that the market “have adverted to a test of the 7,300 line” as the index gained as much as 23.53 points “before caving in into selling pressure.”

“Earnings have not been able to provide the much-needed lift as they have come out a mixed-bag peppered with huge disappointments from market leaders,” Calaycay said.

“DMCI came out with its numbers and it joined the list of ‘failures’,” he added.

He said that the index towards year-end will focus more on macroeconomic factors such as the release of third quarter gross domestic product (GDP) results on November 27, as well as external market factors.

Sectoral indices were mixed, with two losers and four gainers. Subindices that gained were financials, up 0.45 percent or 7.77 points at 1,724.08; industrials rose by 0.13 percent or 14.92 points to 11,715.28; services inched up 0.06 percent or 1.18 points to 2,141.87; and mining and oil went up 0.30 percent or 45.81 points to 15,536.33.

The two losers were holding firms, down 0.31 percent or 19.42 points to 6,320.24, and property, slipping 0.09 percent or 2.73 points to 2,890.28.

The top 10 most active companies composed of three losers and seven gainers. Active losers were PLDT, First Gen Corp., and Vista Land and Lifescapes Inc., while some of the gainers were Megaworld Corp., Jollibee Foods Corp., Security Bank Corp, and Puregold Price Club Inc.

Total volume amounted to 2.57 billion shares, valued at P7.9 billion. Decliners were up versus advancers, 98 to 84, while the unchanged was at 42 issues.

On Tuesday, the bellwether index gained 45.94 points or 0.64 percent to 7,275.66, while the wider All Shares index added 21.11 points or 0.50 percent to 4,276.05.

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