Share prices ended lower Wednesday as risk aversion hit investors before the US Fed concludes its meeting.
The peso closed down.
At yesterday’s trade, newly-listed real estate investment trust Vista REIT Inc. (VREIT) closed unchanged in its maiden trading day at P1.75 per share.
The Philippine Stock Exchange index (PSEi) was down 155.11 points to 6,319.42, a 2.4 percent drop.
The broader all shares index was down 61.35 points to 3,409.70, a 1.77 percent.
Losers edged gainers 137 to 40 with 53 stocks unchanged. Trading turnover reached P11.03 billion.
The peso closed at 53.435 to the dollar, down from 53.25 on Tuesday.
The currency opened at 53.30, an intraday high, and hit a low of 53.47. Trading turnover reached $1.16 billion.
Asian currencies were mixed on Wednesday and held tight ranges as investors awaited a potentially aggressive interest rate hike from the US Federal Reserve later in the day.
The Indonesian rupiah, Philippine peso, South Korean won and the Thai baht weakened between 0.1 percent and 0.4 percent, while the Singapore dollar and Malaysian ringgit each rose 0.1 percent.
“Philippine shares fell ahead of the Fed’s decision later tonight, while carrying the negative sentiment from last night’s US performance,” said Luis Limlingan, managing director at Regina Capital and Development Corp.
The rate-setting Federal Open Market Committee will conclude its two-day meeting on Wednesday.
Limlingan said the market is betting on a 75-basis point rate hike, the biggest increase since 1994, according to the CME Group’s FedWatch tool.
Most actively traded SM Prime Holdings Inc. was down P0.70 to P36.50. International Container Terminal Services Inc. was down P5 to P190. Universal Robina Corp. was down P6 to P94. Converge ICT Solutions Inc. was down P0.80 to P21.35. Vista REIT Inc. was steady at P1.75. Ayala Land Inc. was down P1.25 to P28.10. Semirara Mining and Power Corp. was down P0.50 to P34. SM Investments Corp. was down P35 to P795. BDO Unibank Inc. was down P3.10 to P121.30. Ayala Corp. was down P12 to P630.
Meanwhile, VREIT’s share sale raised for VREIT P6.4 billion, the proceeds of which will be used by the sponsors to invest in 12 high-rise and medium-rise mixed-used condominium projects and 5 mixed-use developments.
VREIT sold to the public 3.66 billion shares held by mother company and REIT sponsors Masterpiece Asia Properties, Inc., Manuela Corp., Vista Residences, Inc., Crown Asia Properties Inc., and Communities Pampanga Inc. – all Villar-led companies.
VREIT is the 7th REIT to list since the PSE held its first REIT listing in August 2022.
“The six REITS that have listed so far in the PSE in the last 22 months have generated solid enough returns that I no longer view REITS as an alternative class but as a core asset class,” said Ramon Monzon, PSE president.
Monzon said that since then, REITs have raised P90 billion through the stock market, “proving that the REIT is a successful platform for capital raising.”
This is the sixth listed company of the Villar family.
Monzon noted that among the listed REITs, VREIT currently offers the highest dividend yield at an estimated 8.25 percent for this year and 8.99 percent for 2023. Ruelle Castro
