Philippine shares closed mixed on Tuesday as investors took positions on both sides of the market to prepare to pick up companies poised to benefit from the Duterte administration’s economic policies and dump those bound to lag behind.
The bellwether index firmed 0.11 percent or 9.08 points to finish at 7,971.72. The broader All Shares dipped 0.11 percent or 5.34 points to finish at 4,753.33.
“The Philippine stock index managed to close a bit on the upside post SONA (state of the nation address) on Monday, positioning ahead of the sectors that will benefit most, and selling those that may be left behind the administrations platform,” Regina Capital Development Corp. (RCDC) said in a note.
Summit Securities Inc. President Harry Liu sees the market consolidating, with some of listed shares recovering after the SONA while waiting for new catalysts.
“For me, the SONA just showed the investing public still shows confidence in the leadership of President Rodrigo Duterte and his forthcoming programs for the economy,” he said.
Market indices were mixed. Property rose 0.73 percent, holding firms gained 0.09 percent and services inched up 0.06 percent. In the red were industrials, down 0.36 percent, mining and oil down 0.61 percent and financials down 0.73 percent.
Nickel Asia Corp. was the biggest decliner, losing 8.11 percent, while Metro Pacific Investments Corp. rallied 2.09 percent.
“Most mining companies were trading in negative territory, which was a reaction to Duterte’s statement to clean up their act. Shares such as Global Ferronickel Holdings, Nickel Asia Corp. and Manila Mining Corp. dropped between -5 percent and -8 percent during the morning trade. The perceived increased taxes that the administration wants levied on these firms would be a big pinch to their overall bottom line,” RCDC said.
“Based on the reaction of the market as of lunch break, it seems that investors are still weighing the sectors that President Duterte would like to prioritize in the next few years. There haven’t been major changes in each sector as generally, shares have been trading flat post SONA. There is some speculation regarding mining, however, without any concrete directive, we are seeing the Philippine Mining and Oil Index slide just a few percentage points for now,” it added.
Losers outnumbered gainers, 142 to 65, while 46 issues finished unchanged.