PH stocks nosedive on ‘sell’ rating

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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

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  • http://www.facebook.com/profile.php?id=100001049117994 Ronnel Roy

    Stock market is cyclical and basically its daily movement is nothing but short-term irrational sentiment; over the long-term, if the macro and micro fundamentals are good the market is rational and would move according to its true value. Right now, its just profit taking as market greed is the prevailing sentiment…but overall, we are still in a Bull Market.

  • Don Dee

    Lol, Ang bilis ng mga kampon ni Smeagol mag celebrate ng mag downturn ang stock index ah! And ironically, these are the same people who would dismiss stocks as merely “stocks” when the trend is the opposite. Haynaku, mga CRAB heads talaga. You should all be PROUD of yourselves. You are the lowest of the low — world record achievement. Pero teka muna ha, paki check nga kung ano ang “low” na ito? Ano ang index ngayon? Is it still far higher than in the entire term of Smeagol? You people ever heard of the term “profit taking”? Wag kayong mag alala, kung merong up meron din down. You will have more to “celebrate”, in the future. Ganun talaga ang stocks. Umaakyat, bumababa. Pero bottomline, the stocks are still higher now than it was during the entire illegal term of your idol.

  • OFW_Investor

    A sell rating means these same people intends to buy the shares in the market. its a classic page from their playbook. Money is made in the market by buying and owning outstanding companies for a long period of time. In the stock market, dont look in the score (prices) take a closer look in the game ( the buisness) did Purefoods sell a lot of chciken yesterday and today? what changed? not much.

  • anne_203

    No, this is just how things are in the stock market. Herding behavior in markets, push stock prices up when the market is generally optimistic, and then when they feel they’ve reached a certain threshold for profits vis-a-vis risk, they think its time to sell. Our local companies, however, need to make sure their fundamentals and growth prospects are okay over the long term so that they do not lose their value. Panics ebb and flow, but firm value will hold and recover over time if fundamentals are steady. The time to buy is when stocks are low, and sell them when they are high enough to meet your own expectations.

    • FernandoBusi

      If we are to align with regional P/E we should see a 30-40% drop.

    • ARIKUTIK

      If everybody buys when the stocks are low then who will buy when the stocks reached expectations. How will the stock price rise, if everyone buys when it’s low. What a Donkhead consultant. Stock market is gambling moron and you bet when the stake is high. The one with trillion game money wins sucking the pennies of little gamblers.

      • http://www.facebook.com/profile.php?id=100001049117994 Ronnel Roy

        Stock Market is gambling? LOL!! You better start reading financial books and upgrade your Financial IQ before opening your mouth… Your post becomes a good example of the bad name you just mentioned.

  • http://pulse.yahoo.com/_Q3QGG5QHBLRMZTIYWUFURY6J2E Night

    THIS IS GMA’S FAULT

    • FernandoBusi

      yeah waiting for Penoy to make that announcement. LOL

  • Weder-Weder Lang

    This is Doris Dumlao’s fault again. She’s not cheering hard enough for the PSEi.

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