Local shares closed lower on Monday as investors reacted to new developments in the government investigations into “ghost” infrastructure projects.
The benchmark PSEi fell 47.27 points or 0.77 percent to settle at 6,101.86, while the broader All Shares dropped 9.93 points or 0.27 percent to 3,682.78.
Market breadth was negative, with losers outnumbering gainers 107 to 87, while 52 stocks remained unchanged.
A total of 2.7 billion shares valued at P5.7 billion were traded. Foreign investors were net sellers, offloading P340.8 million in shares.
Seth Pangan, a trader at Diversified Securities Inc., noted traders engaged in profit taking after contractors revealed the names of various government officials, including House Speaker Martin Romualdez and Rep. Zaldy Co, as being allegedly involved in anomalous infrastructure projects.
The contractors, Cezarah Rowena and Pacifico Discaya II, submitted a sworn affidavit during a Senate Blue Ribbon Committee hearing on Monday morning, detailing how they allegedly paid “advance commissions” to secure flood-control project contracts from different government personalities.
The sell-off ended the PSEi’s two-day rise from the previous week. Sector performance was mixed, with industrials leading gainers, up 0.95 percent, while banks suffered the biggest loss, down 1.28 percent.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors have started focusing on the upcoming official July labor figures, due out on Wednesday, September 10.
