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Cebu Air plunges 38% after trading error by local broker

Updated

By Bloomberg

Shares of the Philippines’ largest budget carrier plunged by a record, wiping out 21.3 billion pesos ($415 million) in market value, after a local broker made a trading error.

(MANILA BULLETIN FILE PHOTO)

(MANILA BULLETIN FILE PHOTO)

Cebu Air Inc. slumped 38% in the last few minutes of trading and the volume of shares changing hands was below the three-month average.

The order happened during the Philippine Stock Exchange’s no-cancel period at the end of the day.

“It was a trader error,” a representative at Quality Investment & Securities Corp., which executed the trade, said by phone.

“Our brokerage wasn’t meaning to sell Cebu Air shares.” Cebu Air CEO Lance Gokongwei said earlier in a text message that the share price drop was likely a fat-finger trade.

“Price should recover tomorrow [Wednesday],” he said.

A spokesperson for the Philippine Stock Exchange declined to comment. Cebu Air, which last month ordered 31 Airbus SE aircraft worth $6.8 billion to meet its goal to have an all-new fleet in five years, will likely nearly double its profit this year, according to analyst estimates compiled by

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