PSEi plunges at noon break on JG Summit's stock price drop

Philippine share prices plunged during the morning session on Thursday as conglomerate JG Summit's (JGS) stock price dropped over 9 percent.

"The drop was led by JGS which accounted for 51 points of the drop this morning," Lexter Azurin, head of research at Unicapital Securities Inc., told GMA News Online.

JGS's last trade price is P82.95 a piece, down 8.25 points or 9.05 percent from P91.20 on Wednesday.

"Private placement caused JGS stock price to drop. The overnight share sale by John Gokongwei," said Alexander Tiu, senior equity analyst at AB Capital Securities Inc.

A report by Reuters said Gokongwei is planning to sell up to $220 million worth of shares, and is offering 120 million shares at an indicative price range of P82.10 to P85.75, equivalent to a 10 percent discount.

As of posting time, JGS didn't disclose to whom or what firm did the founder of the company sold his shares.

John Gokongwei Jr. is the founder of and chairman emeritus of JGS, a holding company with interests in food, agro-industrial and commodities, real estate and hotel, air transportation, banking and petrochemicals.

The main PSEi fell 97.37 points or 1.30 percent to 7,366.58 at recess. The broader All Shares dropped 41.73 points or 0.94 percent at 4,415.58. —KBK, GMA News