LOCAL EQUITIES were down on Thursday, weighed down by banking stocks that recently announced plans to conduct stock rights offerings (SRO).

The main index dropped 0.31% or 28.25 points to finish at 8,820.74 yesterday.

The broader all-shares index likewise lost 0.1 or 5.6 points to close at 5,115.87.

“(T)he market is due for correction, but there is nothing to worry about as these are buying opportunities for both local and foreign investors. In the morning session we saw major banks like MBT (Metropolitan Bank & Trust Co.) and BPI (Bank of the Philippine Islands) down on the disclosures of their stock rights offerings to raise cash,” Eagle Equities, Inc. Research Head Christopher John Mangun said in a text message. 

Metrobank was the most active stock of the day, shedding 0.51% to close P98.20 apiece, followed by stocks in Bank of the Philippine Islands which in turn rose 0.44% to P115 apiece.

“There was some concern as the rights offerings were said to be priced below market value,” Mr. Mangun said.

Regina Capital Development Corp. Managing Director Luis A. Limlingan meanwhile noted that the SRO announcements prompted investors to go on profit taking on Thursday.

“The (Philippine Stock Exchange index) has been making several attempts to breach 8,900 but the announcement of the MBT SRO became the impetus for profit taking. Along with BPI, this caused some selling momentum to continue. Their holding units also were sold down after the announcement,” Mr. Limlingan said in a mobile phone message.

International markets defied the local barometer’s performance, as Wednesday saw the Dow Jones Industrial Average (DJIA) soar above the 26,000-mark for the first time, fuelled by positive sentiment for economic and earnings growth of listed firms. The DJIA picked up 1.25% or 322.79 points to finish at 26,115.65.

The S&P 500 index also inched up 0.94% or 26.14 points to 2,802.56, while the Nasdaq Composite Index jumped 1.03% or 74.60 points to 7,298.28.

Back home, most sectoral counters ended the day on a negative note, with the mining and oil sub-index losing the most at 0.89% or 108.76 points to 12,026.41. Financials followed with a 0.72% decrease or 16.2 points to 2,231.10; holding firms dropped 0.66% or 60.05 points to 9,035.59; and industrials slipped 0.02% or 2.84 points to 11,806.88.

Services, meanwhile, gained 0.38% or 6.29 points to 1,645.04 and property posted an 0.18% or 7.61-point uptick to 4,039.91.

The market saw 113 names advance versus the 103 that declined, while 54 issues were flat.

A total of 1.14 billion issues switched hands for a value turnover of P9.98 billion, slightly higher than the P9.64 billion booked on Wednesday.

Foreign investors continued their buying streak, as net purchases were recorded at P383.38 million, although this is down from Wednesday’s P1.26-billion inflow. — Arra B. Francia

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