Courtesy resignations send PSEi toward 6,300

Philippine shares tumbled dangerously close to the 6,300 barrier on Thursday as investors took caution over President Marcos’ order for the courtesy resignation of his Cabinet officials.

By the end of the session, the main share Philippine Stock Exchange Index (PSEi) had slipped by 1.1 percent, or 69.98 points, to close at 6,305.57.

Likewise, the broader All Shares Index shed 0.8 percent, or 29.76 points, to 3,708.18.

A total of 572.35 million shares worth P6.4 billion changed hands, stock exchange data showed.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said traders became more anxious after Mr. Marcos called on his Cabinet appointees to resign right before the market opened.

According to Limlingan, investors were already worried over the Philippines’ balance of payments swinging to a deficit in April, and the President’s latest restructuring move fanned the flames.

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Wendy Estacio-Cruz, research head at Unicapital Securities Inc., said Mr. Marcos’ directive would most likely be perceived as “political instability given uncertainties.”

Property firms had the steepest decline as both Ayala Land Inc. (ALI) and SM Prime Holdings Inc. closed lower.

Bank of the Philippine Islands was the most actively traded stock as it shed 0.51 percent to P136, followed by Metropolitan Bank and Trust Co., down 3.12 percent to P72.95; International Container Terminal Services Inc., down 0.05 percent to P400; BDO Unibank Inc., up 0.32 percent to P158.50; and ALI, down 1.74 percent to P22.60; Universal Robina Corp., down 3.58 percent to P83.50; and Emperador Inc., up 1.02 percent to P13.80