PSEi down as investors see risks in ABS-CBN stop order, dismal Q1 GDP

Share prices on the Philippine Stock Exchange ended on a weak note Wednesday as market players cashed in on gains amid caution over the release of first quarter economic performance figures and regulatory risks involving the broadcast stop order against ABS-CBN.

The benchmark PSEi lost 32.40 points or 0.57% to 5,639.27 at the closing bell. The broader All Shares shed 8.93 points or 0.26% to 3,416.05.

“Profit taking got the best of the local market today amid the heightened regulatory risks following the National Telecommunications Commission’s cease and desist order against ABS-CBN Corporation and the latter’s compliance thereafter,” Philstocks Financial equity analyst Japhet Tantiangco said.

The PSE suspended trading of ABS-CBN Corp.’s shares following the National Telecommunications Commission’s order for the company to stop broadcast operations. 

“At the same time, investors are also anticipating dismal first quarter 2020 GDP (gross domestic product) figures to be released tomorrow amid the adverse economic effects of COVID-19 and the consequent enhanced community quarantine in Mainland Luzon in the latter half of March 2020,” Tantiangco said.

The Philippine Statistics Authority is set to announce the country’s GDP print for the first three months of the year on Thursday, May 7.

Foreign transactions reverted to net outflows at P969.47 million, which weighed further on selling pressure.

More than 561.475 million shares valued at P6.049 billion, changed hands. Decliners led advancers, 126 to 69, and 36 issues were unchanged.

“We saw another failed attempt of taking 5,700 which proves to be a strong resistance. Moving forward, in the short run, if we are still unable to take this level, the market could fall back to its 5,300 support,” Tantiangco said. — RSJ, GMA News