RP stocks tumble; investors play it safe ahead of Holy Week break

Local share prices plunged on Wednesday — the last trading day of the week and the quarter — with investors playing it safe as the Holy Week break starts tomorrow. “We are heading off into a vacation, and we’re the only ones to do that. All the other markets will be open. So to be on the safe side, investors decided to let their shares stay liquid," analyst Justino B. Calaycay Jr. of Accord Capital Equities said. The Philippine Stock Exchange index tumbled by 1.26 percent or 40.37 points to 3,161.8, with five of the six subindices dropping. Analysts said the stock market had performed generally well in the first quarter, but they had mixed views about the next one. “The first quarter was very good for the stock market. It actually closed at 3,161 a while ago, which was quite high already," analyst Joseph Roxas of Eagle Equities said. Roxas added, however, that the market might stay flat or drop in the initial months of the second quarter. “I am not very optimistic about the stock market’s performance come April. The Internal Revenue bureau will be collecting taxes, and the market is usually quiet during that time," Roxas said, adding that some investors might extend their vacation next week. But Calaycay said first-quarter optimism might be carried over to the next three months. “The first quarter has been fairly good for the stock market. Companies were definitely in a much better shape this year than in the same period last year, so expect an optimistic start in the second quarter," Calaycay said. But the election period might lead to a flat market performance. Roxas also noted that the release of companies’ first-quarter earnings reports, due around mid-May, might also affect investor optimism. Trading was brisk, with 1.2 billion stocks worth P4.19 billion changing hands. Steady stocks outnumbered losers and gainers at 68. There were 55 decliners and 47 advancers. The broader all-share index lost 0.86 percent or 17.17 points to 1,979.42. Five of the six subindices dropped, led by property stocks, which dove by 2.09 percent or 24.64 points to 1152.14. Service stocks likewise closed 1.65 percent or 24.31 points lower at 1448.52, followed by industrial stocks, which dropped by 1.33 percent or 65.84 points to 4,900. Holding firms shed 0.74 percent or 14.66 points to 1971.54, while financial stocks lost 0.59 percent or 4.04 points to 679.77. Mining and oil stocks bucked the trend, adding 0.75 percent or 69.1 points to 9331.52. Prime Gaming Philippines Inc. the day’s biggest gainer, added 23.46 percent to P25, while A stocks of Imperial Resources, Inc., the biggest loser, went down by a fifth at P8. Blue chips posted losses, led by Philippine Long Distance Telephone Co., the most traded stock, losing P55 to P2,420. Ayala Land, Inc. likewise shed 50 centavos to P13.50, while power giant Manila Electric Co. lost P6 to P176. — NPA, GMANews.TV