swerteplay Record-high gov’t debt spooks investors

INQUIRER FILES

MANILA, Philippines — The local bourse slid further again on Wednesday as investors absorbed news that government debt soared to a new record high.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) dipped by 0.74 percent, or 48.66 points, to 6,496.72.

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Likewise, the broader All Shares Index shed 0.02 percent, or 0.84 points, to close at 3,749.85.

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READ: New high: Gov’t debt topped P16 trillion in November

A total of 921.71 million shares worth P4.69 billion changed hands, stock exchange data showed. Foreigners opted to sell their shares, with foreign outflows totaling P501.44 million.

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Japhet Tantiangco, research head at Philstocks Financial Inc., said that traders were discouraged by the government’s total outstanding debt reaching a record P16.09 trillion in November.

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Only mining and oil firms registered gains, while the conglomerates saw the steepest decline due to dips in index heavyweights SM Investments Corp. (down 1.4 percent to P880.50) and Ayala Corp. (down 2.89 percent to P587.50).

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BDO Unibank Inc. was the top-traded stock as it rose by 1.03 percent to P147 each, followed by Metropolitan Bank and Trust Co., down 1.06 percent to P74.50; Bank of the Philippine Islands, down 1.95 percent to P120.60; International Container Terminal Services Inc., down 0.75 percent to P397; and SM Investments.

Other actively traded stocks were Jollibee Foods Corp., up 1.14 percent to P267; SM Prime Holdings Inc., down 2.43 percent to P24.10; DigiPlus Interactive Corp., down 8.77 percent to P26; Ayala Corp., down 2.89 percent to P587.50; and Globe Telecom Inc., up 5.02 percent to P2,300 each.

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Gainers outnumbered losers, 110 to 106, while 44 companies closed unchanged, stock exchange data also showed.

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Auction results showed that the Bureau of the Treasury made a full award of P15 billion in reissued T-bonds, which have a remaining life of six years and nine months.

“You’re just traumatized when you have these losses. At some point, you’re just glad you’re alive,” said Don Hornstein, an insurance law expert at the University of North Carolina. “And thenswerteplay, you have to turn to the business side of this. It’s tough.”