PSEi down 0.58%; top gainers affiliated with Marcos kin

Philippine share prices closed lower on Tuesday, following the decline in regional markets and the release of unofficial results of the national elections indicating a victory for Ferdinand “Bongbong” Marcos Jr.

This developed as shares of firms affiliated with Marcos became the top gainers  on Tuesday.

The main PSEi declined by 38.97 points or 0.58% to 6,720.93, the lowest in nine months. It was down as low as 6,547.44 during the trading session, but losses were pared down.

The broader All Shares index slipped by 37.08 points or 1.02% to 3,584.62.

Tuesday’s fall is in line with the performance of regional markets, with most showing a drop amid the latest inflation and economic growth figures.

“Philippine shares slid, although at a small drop compared to the rest of the region, as investors became concerned about the possibility of stagflation, with the main focus this week, the CPI report on Wednesday,” Regina Capital Development Corp. Head of Sales Luis Limlingan said in a mobile message.

First Grade Finance Inc. Managing Director Astro del Castillo noted that the decline is due to a mix of factors, including the decline in most markets due to inflationary concerns.

“(Investors are looking at) higher interest rates and inflation both overseas and here. In the United States the possible weakness in the economy, one of the biggest in the world, is also raising more red flags,” Del Castillo told GMA News Online.

“There’s a possibility also that some investors who are politically sensitive also sold their positions,” he added.

Partial and unofficial results of the Eleksyon 2022 show that Marcos is leading the presidential race with 31.002 million votes, followed by Vice President Maria Leonor “Leni” Robredo with 14.780 million votes with 97.97% of returns processed.

All major component indexes closed lower on Tuesday, except for Holdings Firms which posted a slight increase of 0.43%.

“It seems like some investors opted to position on companies affiliated to the leading candidate as evidenced in the uptick in the holding firms sector,” del Castillo said.

Tuesday’s main gainer was Prime Media Holdings Inc. (PRIM) which soared by 38.89% or 56 cents to P2.00 apiece.

PRIM, founded by Marcos' cousin and Leyte Representative Martin Romualdez in May 2021 inked a swap agreement with shareholders of Philippine Collective Media Corp.  for a “viable and operational enterprise.”

This was followed by PFTC Redevelopment Corp. which climbed 32.02% or P10.55 to P43.50 apiece. The company has tobacco operations in Candon, Ilocos Sur.

PhilWeb Corporation was the third top advancer, jumping by 96 centavos or 30.97% to P4.06 apiece. PhilWeb Chairman and Chief Executive Officer Gregorio Ma. Araneta III is the husband of Marcos' sister Irene.

Araneta Properties Inc. — also with Araneta as chairman and chief executive — was the fourth top gainer up by 40 cents or 30.77% to P1.70 apiece.

Completing the top five advancers is Bright Kindle Resources & investments Inc. which climbed by 24 cents of 12.18% to P2.21 apiece.

Over 3.169 billion shares, valued at P23.188 billion, changed hands. Decliners led advancers, 169 to 52, and 34 issues were unchanged.

Data from the PSE also showed that more foreign investors exited positions than bought more holdings.

Foreign funds bought P3.281 billion of shares during the session and sold P4.363 billion for a net selling position of P1.081 billion.—NB, GMA News