Share prices on Thursday took a nosedive as fund managers issued a “sell” rating on Philippine stocks, now considered among the most expensive in the world.
The main index fell by as much as 129 points before recovering to close at 6,694.71 points, down 81.85 points, or 1.21 percent.
The broader all-shares index was down 0.73 percent. Among the subindices, services lost the most, shedding 2.04 percent. Industrials was the only counter that gained by a mere 0.01 percent.
The sell-off for the fourth straight day came as more institutional investors booked profits from previous rallies that pushed the main index to record highs several times this year.
“The latest was HSBC,” said one fund manager, referring to investment houses that have put “sell” ratings on Philippine stocks.
Shares of conglomerate Ayala Corp. were the most traded. The stock lost 1.61 percent. SM Investments Corp. and Philippine Long Distance Telephone Co. were also big losers, shedding 2.09 percent and 3.64 percent, respectively.
But Universal Robina Corp. bucked the trend, gaining 4.92 percent.—Paolo Montecillo