Traders Disappointed by Absence of Key Economic Policies
Traders in the Philippines reacted with disappointment to President Marcos’ fourth State of the Nation Address (SONA), which largely failed to address key economic topics that investors were eager to hear. The market’s negative sentiment was immediate and clear, as the Philippine Stock Exchange Index (PSEi) dropped by 0.85% or 54.33 points, ending Tuesday’s trading session at 6,325.42. The broader All Shares Index also saw a decline, slipping by 0.35% or 13.41 points to 3,780.08. This downturn was further exacerbated by foreign investors, who pulled out a net total of P429.15 million from the market. Japhet Tantiangco of Philstocks Financial Inc. noted that the market was let down by the President’s failure to provide clarity on crucial issues such as online gaming regulations, trade relations with the United States, and proposed fiscal reforms. Instead of focusing on these topics, the speech largely centered on criticizing public officials for their lack of progress on flood control initiatives. This significant disconnect between the expectations of the investment community and the political messaging delivered in the SONA directly weighed on market sentiment.
Mixed Performance as Selective Trading Prevails
Despite the overall market decline, trading activity remained robust, with a total of 1.04 billion shares valued at P6.86 billion changing hands. However, the performance of individual stocks was mixed, reflecting a cautious and selective buying approach from investors. The most actively traded stock of the day was DigiPlus Interactive Corp., which defied the broader market trend and surged by an impressive 11.06%, closing the session at P35.65. This performance stood in sharp contrast to that of other major players, who experienced declines. For instance, International Container Terminal Services Inc. fell by 4.08% to P447, and BDO Unibank Inc. edged down 0.34% to P148.50. Other notable companies also saw losses, including Ayala Land Inc., which slipped 1.95% to P25.20, and Bank of the Philippine Islands, which was down 0.82% to P121 per share. This divergence in stock performance indicates that investors were scrutinizing individual company fundamentals rather than following a broad, market-wide trend.
Market Breadth Reflects Widespread Selling Pressure
The mixed performance of individual stocks did not mask the widespread selling pressure that affected the market as a whole. The overall market breadth was decidedly negative, with a significant imbalance between the number of declining and gaining stocks. A total of 117 stocks experienced declines, while only 70 managed to post gains. Additionally, 62 firms ended the trading session unchanged, further highlighting the prevailing sense of caution and a lack of clear direction. Several other notable companies also contributed to the day’s losses, including SM Investments Corp., which declined by 1.43% to P830, and Bloomberry Resorts Corp., which saw a steep plunge of 8.99% to P4.15. Jollibee Foods Corp. also dipped by 0.82% to P219. On the other hand, a few companies managed to buck the trend and post gains, such as Manila Electric Co., which rose by 0.94% to P538.50, and SM Prime Holdings Inc., which climbed 1.09% to P23.25. The broad-based decline in stock prices across various sectors underscores the market’s collective disappointment and its unfavorable reaction to the lack of policy guidance from the President’s address.
