Philippines stocks ended slightly lower on Monday as investors took profits on firms that reported stronger-than-expected third quarter profits such as telecom giant PLDT and property leader Ayala Land Inc.
Persistent worries of a credit downgrade if legislators fail to approve new revenue measures being proposed by the administration of President Gloria Macapagal Arroyo dampened sentiment, traders said.
The main index slipped 5.36 points or 0.29 percent to 1,812.16 points.
The market is up 26 percent so far this year.
Philippine Long Distance Telephone Co, the day's top traded issue accounting for 26 percent of the total turnover, slid 10 pesos to 1,390 pesos.
Ayala Land lost 20 centavos or 2.82 percent to 6.90 pesos.
Oliver Plana, research head at Asiasec Equities Inc, attributed the losses of PLDT and Ayala Land to profit-taking.
"The market's activity for the rest of the week will be dictated by reports of third-quarter earnings of other firms, including other property issues," said Plana.
Major firms expected to report earnings this week include oil refiner Petron Corp, mall leader SM Prime Holdings Inc, and energy holdings firm First Philippine Holdings.
Astro del Castillo, managing director at investment firm First Grade Holdings, said some investors have adopted a cautious stance on concerns legislators may not pass this year new tax measures sought by the government to cut its budget deficit.
The lower house approved last month a bill raising taxes on alcohol and tobacco by 20 percent, but local media said some senators want a smaller increase.
The bill is one of eight new-revenue measures being proposed by the administration of President Gloria Macapagal Arroyo to generate at least 80 billion pesos and reduce the government's budget deficit.
Value turnover fell to 838.45 million pesos ($14.89 million) from 1.06 billion pesos on Friday, as losers beat gainers 40 to 34.
Traders said they expected the main index to move within a 25-point band this week, with support pegged at 1,800 points.
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