Just yesterday Metrobank’s stocks drops 4.3% dragging the Philippines stock exchange momentum during the early trading period but eventually closing at a Photo finish of a 1.08% gain. Now what happened? A certain Metrobank V.P. for corporate affair was entrapped and captured by the National Bureau of Investigation (NBI) for accusations of siphoning bank funds amounting to at least 900 million to 2.5 billion pesos thru fraudulent accounts. This incidence triggered a massive sell off of Metrobank shares, eventually dragging GTCAP to about 2.85% as well.
As a megabank, I believe it reach an attractive and affordable price tag and P/E ratio as compared to the rest of the megabanks thus I would reiterate a BUY on this stock with buy bellow price 90 pesos per share. I believe this selling is brought about by market sentiments and not a fundamental setback hence MTB will bounce back in the mid and long term. I would also recommend GTCAP best below price of 1,250.00 pesos per share.
Investing long term is taking advantage of short term market sentiments like this for long term gains. Let us be patient with the market and contrarian regarding market sentiments against fundamentally established companies.
Good Luck with your investing