Stocks dragged by JG Summit dive

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The Philippine stock market finished Thursday’s trade lower, dragged by the steep dive in JG Summit Holdings Inc which was triggered by the company’s highly discounted top-up placement of shares to raise funds, although no particular allotments have been determined.

The Gokongwei-led conglomerate has raised P8.9 billion from an overnight top-up shares placement, selling 145.65 million common shares at P61 per share. The price reflects a 12.7 percent discount from the stock’s last traded price.

“The pullback was mainly due to JG Summit’s top-up placement at P61 each. JG Summit’s 11.16 percent decline at the close translates to about 43.67 points pull on the PSEi,” said Joyce Anne Ramos, AB Capital Securities Inc. analyst.

The Philippine Stock Exchange index (PSEi) slipped 0.77 percent or 57.79 points to 7,416.31, while the All Shares index dropped 0.73 percent or 31.88 points to 4,336.24.


JG Summit slumped P7.8 to close at P62.10, down from its previous finish of P69.90.

Only the Industrial subindex gained in Thursday’s trade — up 0.12 percent.

The local market failed to track gains on the US markets overnight: the Dow Jones Industrial Average was up 39.05 points, the S&P 500 gained 9.57 points and Nasdaq added 12.57 points.

Other active decliners were Metropolitan Bank and Trust Co., Ayala Land Inc., Ayala Corp., Universal Robina Corp. and SM Investments Corp., while top gainers were GT Capital Holdings Inc., Energy Development Corp., First Gen Corp. and Philippine Long Distance Telephone Co.

Trade volume totaled 4.06 billion, valued at P19.8 billion. Losers outnumbered gainers 106 to 65, while 48 issues finished unchanged.

Looking ahead, Ramos said support and resistance levels will remain at 7,400 points and 7,500 points, respectively, with corrections expected in between following recent record-highs set during the initial days of the new year.

On Wednesday, the bellwether PSEi set a new intraday high of 7,531.94, breaking the previous record of 7,350.41 hit on January 14. The market ended Wednesday’s trade with pared gains for the PSEi of 0.29 percent or 21.29 points at 7,474.10, while the All Shares inched up 0.05 percent or 1.99 points to 4,368.12.

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