PSEi dragged down by PLDT, Aboitiz

by Warren de Guzman, ANC

Posted at Mar 13 2014 05:40 PM | Updated as of Mar 14 2014 01:40 AM

MANILA, Philippines - Philippine shares fell for a second day dragged by Manny Pangilinan's Philippine Long Distance Telephone Co., the Aboitiz Group and Lucio Tan's holding company LT Group.

The Philippine Stock Exchange index fell 0.51% to close at 6,429.79.

PLDT fell as much as four percent in the morning before settling for a two percent decline at the close, as investors assured of a P116 cash dividend sold the stock to take advantage of other upcoming cash payouts.

Aboitiz Equity Ventures and Aboitiz Power are down after reporting significant declines in profit last year due to lower power sales. Aboitiz Power accounts for over 70 percent of Aboitiz Equity's group earnings.

Shares in the LT Group meanwhile declined a second day, falling four percent in Thursday trade, after gaining 11 percent in just a week, since its inclusion in a Footsy index was announced. The Footsy indices are used as investment guides by fund managers.

Bucking the day's losses were gaming stocks. One analyst said investors are betting Philippine casinos did very well to start the year. He warned though that their 2013 results might not be too encouraging.

Big gainers include Lawrence Ho's Melco Crown Philippines, the Sy Group's Belle corporation and Leisure and Resorts World. These companies are partners in the billion dollar City of Dreams Manila, set to open in Pagcor's Entertainment City within the year.

Enrique Razon's Bloomberry Resorts, owner of the Solaire Casino, and Andrew Tan's Travellers International also did well. Tan's Megaworld, developer of the Newport City where Travellers' Resort World Manila is located, also enjoyed gains.

Meanwhile, the peso finished stronger at P44.55 against the US dollar.