Stocks of Andrew tan, Lucio Co and Aboitizes are widely expected to be the casualties in the upcoming rebalancing of the MSCI Philippines Index.
In its report, COL Financial said the market speculation is Tan’s Megaworld, along with Aboitiz Power and Co’s Puregold, “will either have their weightings reduced or be removed completely from the MSCI index once the index is rebalanced this May.”
The MSCI Philippine Index, which is rebalanced twice a year, has 20 stocks picked based on their market cap. The index stocks represent 85 percent of the country’s stock market.
Year to date, MEG is down 25 percent to P3.07, AP is off 13 percent to P23.30, and PGOLD lost 17 percent to P34.05.
Abacus Securities said it wouldn’t be surprised if the weights of MEG, AP and PGOLD were slashed because “simply put, the PSEi has underperformed the rest of emerging markets.”
The MSCI Philippines Index is down 10.79 percent, worse than the PSE Index which is down 9.76 percent year to date. In contrast, the MSCI Emerging Markets Index is up 4.8 percent and the MSCI ACWI Investable Market Index (IMI) is up 9.7 percent.