By Francisco Alcuaz Jr.
Feb. 24 (Bloomberg) -- Manila Electric Co. fell the most in four months in Manila trading on concern recent gains are lagging behind earnings growth at the Philippines’ largest power retailer.
Shares of the utility dropped 11 percent to 79 pesos at the noon close of trading on the Philippine Stock Exchange, its biggest loss since Oct. 10. Parent First Philippine Holdings Corp. slumped 6.8 percent to 20.50 pesos, the most since Oct. 27.
Manila Electric climbed 54 percent in the month through Feb. 20 on speculation First Philippine Holdings and San Miguel Corp., its two biggest shareholders, were accumulating shares to retain or take control of the company. The key stock index rose 3 percent during the period.
“It’s not really supported by fundamentals,” said Laura Dy Liacco, an analyst at ATR-KimEng Securities Inc. in Manila. “Other power companies are trading at single-digit price- earnings ratios.”
Manila Electric has a price-to-earnings ratio of 25 times, according to data compiled by Bloomberg. The main Philippine Stock Exchange Index is trading at 9.7 times earnings.
To contact the reporter on this story: Francisco Alcuaz Jr. in Manila at falcuaz@bloomberg.net
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