PHL stocks fall prey to profit-taking, Meralco sell-off

Shares prices on the Philippine Stock Exchange sagged a few minutes after the opening bell Friday as investors decided to pocket profits from a two-day climb and index heavyweight Manila Electric Company (Meralco) plunged nearly 7 percent on a bad news sell-off.

 

The main PSEi lost 42.31 points or 0.64 percent to 6,606.04 as of 10:26 a.m.

 

"Some investors are taking profits especially from yesterday's gain as they are risk averse," Joanna Capiral, analyst at Papa Securities Corp., told GMA News Online.

 

Market players also dumped Meralco shares on news that diversified conglomerate—one of the power utility's institutional investors—was about to unload its Meralco stocks, Capiral noted. 

 

"The index is weighed down by Meralco, which was down by over 6 percent, on news that San Miguel Corp. will sell its stake in the power distribution firm at P270 to P280 apiece, about 7.5 to 10 percent discount," she said.

 

Meralco shares plunged by 7.47 percent to P279.80 apiece—as of 10:42 a.m.—from P302.40 when it closed on Thursday.

 

In a June 4 disclosure, SMC said it was looking at alternatives to a possible disposition of its 32.8 percent stake in Meralco. — VS, GMA News