PSEi down 1.1% on profit-taking, MSCI realignment

The PSEi shed more than 1 percent after three consecutive trading days of record highs as blue chip issues succumbed to profit-taking on the MSCI realignment.

 

"It's just profit-taking. Investors just needed a rest," Astro del Castillo, managing director of First Grade Holdings Inc., said in a text message to GMA News Online

 

"Market was down 81 points as blue chip issues like Metrobank, Megaworld, AGI, ALI, PLDT, Ayala Corp., and BDO, succumb to profit-taking," Manny Cruz, analyst at Asiasec Equities Corp., told GMA News Online.

 

"This is due to the MSCI realignment of portfolio. Most issues deleted were index issues which experienced sharp sell off," he added.

 

The benchmark PSEi shed 81.26 points or 1.1 percent to 7,310.94.

 

The broader all shares index dropped by 54.61 points or 1.20 percent to 4,512.47.

 

All subindices were in the negative territory, led by mining and oil and industrial.

 

More than 2.43 billion shares valued at P11.47 billion were traded. Decliners overwhelmed advancers 137 to 44 while 34 issues were unchanged.

 

On Wednesday, MSCI announced the results of the May 2013 Semi Annual Index Review for the MSCI Equity Indices, which will take effect on May 31, 2013.

 

For the Philippines, Metro Pacific Investments Corporation replaced San Miguel Corporation on the MSCI Global Standard Indices.

 

For the MSCI Global Small Cap Indices, Megaworld Corporation, Robinsons Land Corporation GT Capital Holdings Inc., Puregold Price Club Inc., and Security Bank Corporation were deleted and were replaced by D&L Industries, EEI Corporation, Pepsi-Cola Products Philippines Inc., RFM Corporation and San Miguel Purefoods Company Inc.

 

Cruz said there was no specific criteria as to the addition and deletion of stocks in the MSCI Equity Indices.

 

"[Those removed did] not necessarily underperform. It could be because these issues sharply rose this year that's why they were compelled to remove them. It depends on their call if an issue has reached the target," he said.

 

Those issues added were "quite liquid" and had their own growth story, Cruz noted. — VS, GMA News