PSEi: Newest IPOs disappoint investors

The first week of October’s uncertainty was driven by the poor performance of the latest Initial Public Offerings to enter the Philippine stock market, says local stockbroker Hernan Segovia of Summit Securities. ASIA SENTINEL
The first week of October’s uncertainty was driven by the poor performance of the latest Initial Public Offerings to enter the Philippine stock market, says local stockbroker Hernan Segovia of Summit Securities. ASIA SENTINEL

THE FIRST week of October saw the Philippine Stock Exchange Index (PSEi) hovering between 7,600 to 7,700 points before finally closing on a high note at 7, 849.94 points.

According to local stockbroker Hernan Segovia of Summit Securities, the first week’s uncertainty was driven by the poor performance of the latest IPOs (Initial Public Offerings) to enter the Philippine stock market.

“Last week, again, the market just shrugged off Hong Kong protests, United States and China trade wars and other political noise. The two important things right now are the IPOs – Axelum and AllHome.”

AllHome is under the Manny Villar Group, and Axelum processes coconut products. Both companies were first approved by the Philippine Stock Exchange a few months back, but their performance in recent months has caused investors to abandon them.

“It’s quite disappointing that their prices succumbed to selling. So now investors are shying away from the next IPO,” Segovia said. He added that’s because of the sell-off from the latest IPOs, investors now have liquid capital to put into “blue chip stocks,” many of which have been ignored in recent months.

“So, I think the market have a lot of cash to get into blue chip stocks and also the peso have improved much last week,” Segovia added, further reiterating his expectations that the PSEi will have a positive 4th quarter./PN

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