Stocks down on BSP watch, Semirara’s plunge

PHILIPPINE STOCKS closed lower on Monday as investors looked ahead to the Bangko Sentral ng Pilipinas’ (BSP) policy meeting, with declines in share prices of Semirara Mining and Power Corp. (SMPC) and its parent DMCI Holdings, Inc. (DMCI) due to the reported non-renewal of the former’s coal contract also weighing on sentiment.

The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.25% or 16.03 points to close at 6,368.55, while the broader all-share index decreased 0.92% or 32.97 points to end at 3,527.29.

“Investors took a cautious stance while waiting for the Bangko Sentral ng Pilipinas’ policy decision, which will be up this week,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“Trading was tepid with net value turnover at P4.22 billion, lower than the year-to-date average of P6.35 billion. This comes as many investors choose to stay on the sidelines while waiting for catalysts,” he said.

All 16 analysts in a BusinessWorld poll expect the Monetary Board to deliver a sixth straight 25-basis-point (bp) cut at its first meeting for the year on Thursday (Feb. 19) to bring the policy rate to 4.25%.

The BSP has lowered benchmark borrowing costs by a total of 200 bps since its easing cycle began in August 2024.

“The local market was dragged by the steep losses from SCC and DMC after the Department of Justice denied SCC’s plea to extend its mine operating contract in Semirara Island beyond the 50-year legal limit. Although, SCC could still join Department of Energy’s contract auctioning alongside other interested parties,” AP Securities, Inc. said in a market note, referring to the ticker symbols of SMPC and DMCI.

Energy Secretary Sharon S. Garin said the contract to mine on Semirara Island will be auctioned off as SMPC’s bid to extend its term by 13 years beyond the 2027 expiration was thumbed down.

SMPC was the day’s worst index performer as its shares plunged by P7.10 or 21.39% to P26.10 each. DMCI shares also dropped by P1.58 or 14.66% to P9.20 apiece.

Most sectoral indices ended lower. Industrials dropped by 0.89% or 81.80 points to 9,088.76; mining and oil retreated by 0.8% or 144.63 points to 17,854.77; property went down by 0.65% or 14.28 points to 2,171.41; holding firms decreased by 0.20% or 10.52 points to 5,051.61; and services declined by 0.15% or 4.23 points to 2,648.36.

Financials was the lone gainer, rising by 0.13% or 2.78 points to 2,137.59.

Market breadth was negative, with 140 decliners against 79 advancers, while 51 names closed unchanged.

Value turnover went down to P5.28 billion with 1.04 billion shares traded from the P8.37 billion with 984.77 million issues that changed hands on Friday.

Net foreign selling decreased to P90.80 million from P451.64 million.

Philippine financial markets are closed on Tuesday (Feb. 17) for the Lunar New Year holiday. — A.G.C. Magno