The Philippine Stock Exchange Index (PCOMP) fell 1.3 percent to 4,758.57, snapping a three-day rally that drove the gauge yesterday to a record close. The measure posted its sharpest loss since Nov. 10 today, trimming this week’s gain to 1.7 percent.
Cebu Air Inc. (CEB) , the nation’s largest budget carrier, climbed 4.8 percent to 71.25 pesos, the highest close since Nov. 22, after CLSA Asia-Pacific Markets analyst Leo Venezuela reiterated his “conviction buy” rating on the stock.
Cebu Air shares may extend gains this year, driven by “several catalysts,” including faster passenger growth, a plan to begin long-haul flights and the nation’s improving tourism industry, Venezuela wrote in a report dated Feb. 2. The stock will reach 91 pesos in 12 months, he wrote.
IP E-Game Ventures Inc. (EG) , a Manila-based online games publisher, advanced 1.5 percent to 20 centavos, the sharpest gain since Jan. 24. The company will expand into entertainment, hotel and leisure-related ventures, Philippine Star reported, citing President Enrique Gonzales. Gonzales couldn’t be reached for comment in his office.
JG Summit Holdings Inc. (JGS PM), owner of Cebu Air, sank 11 percent to 25.25 pesos, the sharpest loss since November 2008. The company said its affiliates sold 215 million shares in a private placement at 25 pesos each, a 12 percent discount to yesterday’s 28.50-peso closing price.
SM Investments Corp. (SM) , holding company of Philippine billionaire Henry Sy, slid from a record, falling 3.8 percent to 651 pesos. The stock posted its sharpest loss since Oct. 3 after the company sold $250 million of convertible bonds and a technical indicator reached a level that some traders use as a signal to sell.
A three-day, 11 percent advance drove the shares to the highest close yesterday since the stock began trading in March 2005. The rally pushed the 14-day relative strength index to 77 yesterday, the highest since September 2010, above the level of 70 that some investors view as a sign that a security is poised to decline.
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