SHARE prices fell last week following economic growth downgrades of the Philippines to 2.9 percent from SandP Global and to 3.3 percent by the Asian Development Bank. The lingering post-FTSE foreign selling in Ayala Corp. and SM Investments Corp. also weighed on the market.
The benchmark Philippine Stock Exchange (PSE) index fell 29.94 points to close at 5,825.97 points.
The main index also reached its lowest for the year on Thursday, closing at 5,730.02 points before paring down its losses the next day.
Volume for the week remained low, with average value of P5.75 billion, with foreign investors, who cornered 46 percent of the trades, were net sellers at P816.32 million.
Most of the sub-indices ended on the red, led by the broader All Shares index that fell 31.59 points to close at 3,246.21 points. The Financials index declined 9.24 to 1,811.39 while the Industrial index retreated 205.19 to 7,597.74. The Holding Firms index rose 5.87 to 4,143.01 while the Property index shed 37.63 to 1,760.37. The Services index was up 28.44 to3,192.41 and the Mining and Oil index plunged 1,259.40 to 20,600.79.
For the week, losers outnumbered gainers 138 to 83, and 26 shares were unchanged.
The top gainers were LFM Properties Corp., Pacifica Holdings Inc., Oriental Petroleum and Minerals Corp. A and B shares, Supercity Realty Development Corp., Ionics Inc., Alliance Select Foods International Inc. and Seafront Resources Corp.
The top losers, meanwhile, were Harbor Star Shipping Services Inc., Metro Alliance Holdings and Equities Corp., PAL Holdings Inc., Semirara Mining and Power Corp., Geograce Resources Philippines Inc., ABS-CBN Corp. and Prime Media Holdings Inc.
This week
SHARE prices may go up this week, but mainly on bargain hunting.
Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said that while current levels are considered bargains and fundamentals remain intact, the bearish case remains strong as other markets move unfavorably against local equities, while overall macroeconomic conditions remain discouraging.
Tantiangco also noted that both Washington and Tehran have shown last week that they are holding their respective grounds but at the same time expressed willingness to return to the negotiation table.
However, he said that, ultimately, the situation between the US and Iran remains uncertain leaving oil prices at elevated levels. The benchmark Brent crude remains above the $100 per barrel mark, Tantiangco noted.
Broker 2TradeAsia said eyes will be on Bangko Sentral ng Pilipinas September inflation outlook and on the US Federal Reserve, especially with the latest payrolls print. Consensus is building for possible 25 basis points rate hike before year-end, according to the broker.
‘Underweighting risk assets is warranted, as cash/short-dated fixed income, which essentially pay money to wait, are significantly more compelling,’ said 2TradeAsia.
The broker advised to tilt toward US dollar earners like ports and infra, and toward large-cap banks, where higher rates support margins.
2TradeAsia said that, for now, brace for potential range tightness in the 5,500- to 6,000 points zone of the main index.
Stock picks
BROKER RCBC Securities Inc. gave an ‘overweight’ rating on the country’s Philippine water players West Zone concessionaire Maynilad Water Services Inc. (PSE: MYNLD) and East Zone concessionaire Manila Water Co. Inc. (PSE: MWC).
The broker said that the country’s water sector is poised for steady, defensive growth this year, driven by aggressive capital deployment in water security and infrastructure.
‘Volume growth across both concessions will be catalyzed by capacity expansion, specifically Maynilad’s ongoing NRW (non-revenue water) recovery program and Manila Water’s commissioning of major treatment facilities (Wawa, East Bay), effectively translating enhanced raw water availability into sustained billed volume gains,’ RCBC Securities said.
MYNLD closed at P17 apiece, while MWC were last traded at P33.50 apiece.
Meanwhile, RCBC Securities maintained its ‘hold’ rating on the stock of Semirara Mining and Power Corp. (PSE: SCC), after the government issued an advisory formally terminating the 2026 coal bid round under the ‘Philippine Conventional Energy Contracting Program,’ directly impacting the auction for Semirara Island.
By citing continuing water seepage as a primary justification for the cancellation, the government has placed the site’s escalating hydrological and geological risks under a spotlight.
‘This puts pressure on SCC to commit substantial capital toward dewatering, safety and environmental compliance, driving up long-term opex (operational expense) while the government simultaneously seeks a larger revenue share,’ it said.
SCC closed last Friday at P15.28 apiece.