Philippines stock market loses 2% due to index rebalancing
Funds managers are realigning portfolios ahead of the rebalancing on Monday.
The addition of Puregold Price Club to the Philippines’ benchmark index on Monday will reduce weightings of other index members to accommodate the addition. SM Investments is the biggest capitalization stock in the index, now accounting for 10% of total weight. Forced sales of SM pushed the stock down by 9.2% in afternoon trading yesterday. SM reported revenues up 9% in 2016 and profits up 8% yesterday.