Philippine Stocks: Aboitiz, Cebu Air, Jollibee, JG Summit
Shares of the following companies had unusual moves in Philippine trading. Stock symbols are in parentheses, and prices are as of the noon close in Manila.
The Philippine Stock Exchange Index rose 0.8 percent to 3,766.73, the steepest gain since Feb. 17. The measure fell 3 percent this month, its first back-to-back monthly loss since January 2009.
Aboitiz Equity Ventures Inc. (AEV PM), which has investments in power and banks, surged 18 percent to 47 pesos, the highest close since it began trading in November 1994. The stock will be added to the MSCI Philippines Index at the end of the day, the index compiler said in a statement Feb. 10.
Cebu Air Inc. (CEB PM), the nation’s biggest budget carrier, jumped 6 percent to 81.90 pesos, the steepest gain since Nov. 9, after JG Summit Holdings Inc. (JGS PM) said it bought 653,940 shares of the airline on Feb. 25 when the stock slumped to a record low. JG Summit, which owns the company that controls the airline, increased 2.1 percent to 19.60 pesos.
Jollibee Foods Corp. (JFC PM), the nation’s largest fastfood company, sank 5.5 percent to 68.05 pesos, the lowest level since June 18, on concern the stock’s valuation relative to earnings is expensive given the rising cost of raw materials. Jollibee trades at 23 times reported earnings, compared with a multiple of 12 for the Philippine Stock Exchange Index.
“Investors are becoming more conservative in valuing the stock because of the negative outlook toward the operating environment facing Jollibee,” said Alvin Arogo, analyst at Manila-based DBP-Daiwa SB Capital Markets.
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