The largest initial public offer of shares in the Philippines would be conducted by Robinson's Retail Holdings Inc. It held back its Manila debut because of issues from the devastation resulting from Super Typhoon Haiyan's effect on the fastest growing economy from Southeast Asia.
The company has interests in supermarkets, department stores and hotels, had declined by 2.6% to PHP56.50 at market close, after receiving USD621 million from its investors. The Philippine Stock Exchange Index declined by 1.4%, the highest in six weeks.
According to Robinsons Senior Vice President Bach Johann Sebastian, "Negative sentiment is hanging over the market. We expect the share price to improve as the company expands and delivers on its promise." He made the remarks at the close of the bourse today.
One of the causes for the decline is the devastation wreaked by the Typhoon Haiyan with the death toll estimated to reach 10,000 individuals, as it flattened buildings and unleashed flooding in its wake. According to Bloomberg Industries Senior Analyst Jonathan Adams, citing Kinetic Analysis Corp, the economic impact may top USD14 billion.
Amongst the purchasers of the Robinson's shares were money managers from Metropolitan Bank & Trust Co and Rizal Commercial Banking Corp. The expectations set was the increase of household purchases for the country's population of 106 million would increase.
In an interview with Metropolitan Bank & Trust Co's Chief Investment Officer Allan Yu, "The stock wasn't spared by the impact of the typhoon. The bank is the third largest money manager in the country with a portfolio worth USD8.7 billion. Because of the stock value retreat, Yu confirmed he is considering adding on to the bank's holdings.
As for BDO Unibank Inc's Ravelas, many consumer companies may receive a boost from purchases that are tied to the current relief efforts for the victims of the recent calamities in the country.
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