TODAY'S BUSINESS HEADLINES

Telcos say networks still up despite heavy rains, flooding in Metro Manila 19-Sep-14, 4:48 PM | Darwin G. Amojelar, InterAksyon.com

Premium Leisure suspends trading, begins roadshow for share sale 19-Sep-14, 2:39 PM | Krista Angela M. Montealegre, InterAksyon.com

GT Capital's power sector arm turns on new Cebu plant ahead of schedule 19-Sep-14, 2:24 PM | Euan Paulo C. Añonuevo, InterAksyon.com

Parts of Meralco franchise area, Luzon cut off from power by 'Mario' 19-Sep-14, 1:12 PM | Euan Paulo C. Añonuevo, InterAksyon.com

Torrential rains spawned by 'Mario' shutter PH financial markets 19-Sep-14, 12:27 PM | Krista Angela M. Montealegre, InterAksyon.com

BDO selloff pulls down stock market

InterAksyon.com means BUSINESS

MANILA, Philippines - A selloff of Banco De Oro Unibank (BDO) shares dragged down the stock market on Tuesday.

The Philippine Stock Exchange index lost 54.8 points or 1.06 percent to 5,056.48. Losers outnumbered gainers, 91 to 75, with 44 stocks unchanged. Trading value reached P5.28 billion as 3.48 billion stocks changed hands.

The financial and holding firm indices were the biggest losers, shedding two and 1.31 percent, respectively.

BDO led the bleeders, shedding 6.95 percent to P60.95 a share. The selloff was triggered by its plan to boost its capital through the sale of additional shares in  a rights offering of three new shares for every share held by a stockholder.

The country's biggest lender in assets intends to raise $1 billion to head off the central bank's shift to stricter capital requirements under Basel 3.

 “It seems like investors had concerns on the dilution of their ownership given BDO’s plan to conduct a rights offer,” said Freya Natividad, investment analyst at 2TradeAsia.com.

Besides BDO, the impending market debut of GT Capital Holdings Inc. also may have led foreign money to pull out of the market to take positions in the private holding firm of Metrobank's George S.K. Ty.

GT Capital will being its initial public offering on April 10, the first for the year, with the company pricing its shares at P455 apiece.

"There may probably be some bargain hunting on Wednesday. Investors are hoping that when we get back after the Easter, the market will be more active," said Joey Roxas of Eagle Securities.

“If there are quick drops tomorrow, I think people will buy,” he said.