Manila Electric Co. (MER) fell the most in four months in Philippine trading after the nation’s largest power retailer was removed by MSCI Inc. (MSCI:US) from a benchmark index.
The stock sank 3.9 percent to 250 pesos as of 2:32 p.m. in Manila, bound for the sharpest loss since July 9. The shares were the biggest percentage losers in the benchmark Philippine Stock Exchange Index (PCOMP), which fell 0.8 percent.
Manila Electric will be deleted from the MSCI Philippines Index at the close of trading on Nov. 30, the index compiler said in a Nov. 14 statement. Manila Electric has a 2.15 percent weighting in the 30-company Philippine Stock Exchange Index.
“Investors who track the MSCI Index have no choice but to adjust their holdings accordingly,” said George Ching, analyst at Manila-based stock brokerage COL Financial Group Inc.
Trading volume of Manila Electric shares today was about 250 percent of the three-month daily average, data from the stock exchange show.
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