Jollibee Foods Corp., the nation’s biggest fast-food company, fell the most in two weeks in Manila trading on speculation a recent rally was excessive.
The stock sank 2.6 percent to 77.90 pesos at the 12 p.m. close of trading, snapping a five-day, 8.8 percent rally that pushed the share price yesterday above its 30-day moving average.
“Jollibee has gone up sharply, making it ripe for investors to sell the stock and make short-term gains,” said James Lago, an analyst at Manila-based PCCI Securities Brokers Corp. “The stock is also overvalued relative to the market.”
Jollibee trades at 25.4 times estimated earnings, compared with the benchmark Philippine Stock Exchange Index’s 12.5 times. The stock declined both times it closed above the 30-day average in January. The five-day rally was the longest since a seven-day streak in December.
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