PSEi sinks by 2% in morning trade led by AC, SM Prime

Share prices on the Philippine Stock Exchange (PSE) plunged during the morning session Wednesday, led by heavyweights SM Prime Holdings Corp. and companies related to the holding firm Ayala Corp.

The benchmark PSEi was down 160.53 points or 2.00 percent at 8,852.89 by the noon recess. The broader All Shares was down 72.80 points or 1.52 percent at 4,715.82.

The plunge was led by Ayala Corp. (AC), the holding company of the Ayala Group of Companies, said Aniceto Pangan, equities trader at Diversified Securities Inc.

“The PSEi declined this morning, brought about by news of the private placement on Ayala Corporation, as Mitsubishi Corp. sold 13.0 million shares of Ayala Corp. through a private placement last night at P900 per share, a 7.83 percent discount,” said Christopher San Pedro, equities trader at  Unicapital Securities Inc.

The Ayala group has interests in real estate and hotels, financial services, telecommunications, and infrastructure, among other businesses.

On top of that, another PSEi heavyweight, SM Prime Holdings Inc., added to the selling pressure, San Pedro noted. “The news on the recommendation of the DILG Secretary Año to scrap the Manila Bay reclamation projects also contributed to the decline of index heavyweight SMPH.”

“Para sa akin, ‘di na dapat matuloy ang reclamation [projects sa Manila Bay]. Lalo lang darami ang tao, ang mga establishment ... lalong mababarhan ang tubig. Paano ‘yung cleanup kung dadagdagan mo ang problema?,” Año said.

It was not a formal recommendation of DILG chief Eduardo Año, but market players took it as an opportunity to sell, market sources said.
 
SM Prime Holdings Inc. declined by P2.35 or 5.91 percent to P37.40 per share, from the previous close of P39.75 on Tuesday. SMPH accounts for 8.82 percent of the PSEi.

AC lost P46.00 or 4.74 percent to P924.50 at the close of the morning session. AC accounts for 6.60 percent of the PSEi.

Shares of Ayala Land Inc. fell by P1.35 or 3 percent to P43.65. BPI was down P0.85 or 0.91 percent at P92.9. Globe telecom was down P38.00 or 1.82 percent at P2,048.00.

Japanese firm Mitsubshi Corp. sold some 13 million shares of Ayala Corp. at P900 per share, a discount of 7.83 percent.

“They sold 13 million shares at a price of P900 per share. The price yesterday was around P970.50, so it’s undergoing correction right now …” Pangan noted.

Ayala Land Inc., accounts for 8.85 percent of the PSEi, while Bank of the Philippine Islands accounts for 5.29 percent, and Globe for 1.58 percent. —VDS, GMA News