MANILA, Philippines - A global investment research firm’s recomposition of preferred stocks and profit taking snapped the five-day winning streak of the local bourse.
The Philippine Stock Exchange index (PSEi) declined 1.10 percent or 81.26 points to 7,310.94, just a day after the bellwether index closed at the record high of 7,392.20.
The broader all shares index sank 1.2 percent or 54.61 points to 4,512.47.
“The market’s losses were brought about by the announcement about therealignment of the MSCI indices,†said Joseph Roxas, president of brokerage firm Eagle Equities Inc.
Roxas said former favorites suffered from selldowns given the removal from the influential index.
The Morgan Stanley Capital International (MSCI) index recalibrated its list of preferred stocks, adding D&L Industries, EEI, RFM, Pepsi-Cola and San Miguel Pure Foods while removing GT Capital, Megaworld, Puregold, Robinsons Land and Security Bank.
The MSCI Global Standard Indices also welcomed Pangilinan-led Metro Pacific Investments Corp. (MPIC) that replaced diversified conglomerate San Miguel Corp. effective May 31.
“I see the main benefit of inclusion in the indices as attracting further investor following for the company,†said MPIC chairman Manuel V. Pangilinan.
“I would like to think that our equity placing in January this year, which has boosted the daily trading liquidity in our shares, played a part in our inclusion in the indices,†said MPIC president and CEO Jose Ma. K. Lim.