SM Prime, the largest Philippine shopping mall operator, jumped 11 percent to 11.10 pesos as of 10:43 a.m. local time, reversing yesterday’s 12 percent loss. SM Investments Corp. surged 6.9 percent to 518.50 pesos, after falling 7.7 percent.
Yesterday’s “sell-off was triggered by a portfolio realignment as the changes in the MSCI Philippines Index took effect,” said Alex Pomento, an analyst at Macquarie Group Ltd. “The decline wasn’t warranted because these are some of your steadiest companies in terms of earnings and cashflows.”
Alliance Global Group Inc., part owner of Manila’s biggest casino, and Aboitiz Power Corp. were added to the MSCI Philippines Index yesterday, raising the number of companies in the gauge to 14 from 12.
Profit at Manila-based SM Prime is forecast to reach a record 7.74 billion pesos ($177 million) this year, according to the median of 10 analyst estimates compiled by Bloomberg. Net income at SM Investments will likely reach an all-time high of 18.12 billion pesos based on the median of eight analyst forecasts.
To contact the editor responsible for this story: Darren Boey at email@example.com