June 30 Philippine Stock Market Review

On PGMA’s inauguration as the 14th President of the Philippines, the Phisix or the country’s major stock market bellwether fell 6.95 points or .44%.

While others may opt to oversimplify today’s market activities to exogenous factors, like the much awaited decision by the US Federal Reserve to raise its Fed rates later today, or internal events like the yesterday’s dispersal of the rallyists or die-hard supporters of vanquished presidential candidate action movie icon Fernando Poe Jr., looking closely, the 30-company Phisix slipped mostly due to foreign selling of Globe Telecom and Metrobank shares.

Of the eight major market heavyweights, the advances in property issues Ayala Land (+1.75%) and SM Primeholdings (+1.66%) failed to counterbalance the hefty declines in Globe Telecoms (-2.95%) and Metrobank shares (-3.57%) which practically weighed on the general market sentiment, as evidenced by declining issues dominating advancing issues 34 to 20. The other key index heavyweights closed unchanged.

Volume was light to moderate at P 493 million with foreign trades accounting for 68.29% of the aggregate output. Overseas money recorded a net positive inflow of P 30.784 million with the thrusts of buying limited to companies such as PLDT, Bank of the Philippine Islands, Ayala Land, Sunlife, Empire East and First Philippine Holdings. Aside from Globe and Metrobank, which registered the major foreign outflows for today, Petron (-1.61%)and Jollibee Foods (-2.04%) likewise succumbed to profit taking from overseas investors.

By industry basis, the commercial and industrial, banking and finance, and the oil index closed lower, while the mining, property, and the ALL index recorded slight gains for the day.

Incidentally, the rise of the ALL shares index was mainly due to gains in Sunlife which as of today's close accounts for 23.46% of the All share index, while its competitior the Manulife Financial accounts for 43.46%. Combined these two Canadian insurance titans represent 66.92% of the All shares index. The All share index, which supposedly function to reflect the broad market has been skewed towards the two insurance giants. The PSE should be replace the ALL-share index to MFC-SLF index instead.