PSEi drops as China proposes online gambling ban
By Arra B. Francia, Senior Reporter
SHARES continued to fall on Thursday as property stocks tumbled following China’s statement against all forms of online gambling in the country.
The bellwether Philippine Stock Exchange index (PSEi) dropped 0.48% or 38.08 points to 7,848.83. The broader all-shares index likewise shed 0.54% or 25.93 points to 4,757.15.
“The main index ended lower today due to the massive losses in the property sector which dragged the whole market lower,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Thursday.
China’s Foreign Ministry Spokesman Geng Shuang said in a speech that he hopes “the Philippines will go further and ban all online gambling.” This comes after an earlier statement against online gambling operations in the country because of the hundreds of million of yuan supposedly illegally flowing out of its economy.
Online gambling firms, locally known as Philippine Offshore Gaming Operators (POGOs), have been on the rise in Metro Manila since President Rodrigo R. Duterte’s warmer relations with China. POGOs have been a major driver for the country’s office sector in 2018, said to have offset the slowdown of outsourcing companies’ expansion last year.
The property counter was the biggest loser out of six sectoral indices yesterday, plunging 1.78% or 73.28 points to 4,034.69.
Megaworld Corp., Robinsons Land Corp., SM Prime Holdings, Inc., and Ayala Land, Inc. were part of the 20 most actively traded stocks of the day, losing 8.51%, 2.63%, 1.96%, and 0.71%, respectively.
Holding firms also went down 0.89% or 69.28 points to 7,713.65 while services slipped 0.03% or 0.51 point to 1,579.12.
Those in positive territory were led by the mining and oil counter, which rose 0.92% or 75.81 points to 8,270.93. Financials went up 0.63% or 11.41 points to 1,813.80, while industrials added 0.49% or 54.53 points to 10,974.80.
Some 2.10 billion issues valued at P9.92 billion switched hands, higher than Tuesday’s P5.42 billion.
Decliners outweighed advancers, 129 to 75, while 44 names were unchanged.
Net foreign outflows rose to P435.01 million from the previous session’s P351.72 million.
Overseas, Regina Capital Development Corp. Head of Sales Luis A. Limlingan noted how investors looked at the minutes from the Federal Open Market Committee’s (FOMC) latest meeting.
“There were also mixed views from the FOMC minutes, and some concerns when Powell speaks later at Jackson Hole. Fed minutes showed FOMC officials argued over whether to lower rates and by how much at last month’s meeting,” Mr. Limlingan said in a mobile phone message.
