Philippines share prices closed 0.90 percent lower on Tuesday amid extended profit-taking on recent gains and a lack of fresh leads to drive the market higher, dealers said. They said although Wall Street and the Japanese market reacted calmly to North Korea's first-ever nuclear test, investors remained wary over the geopolitical tensions which could follow.
The composite index fell 22.94 points to 2,528.98 after trading between 2,518.87 and 2,551.92. The broader all-share index fell 11.31 points to 1,555.94. Losers led gainers 43 to 40, with 56 stocks unchanged. Volume was 737.1 million shares worth 2.304 billion pesos (45.9 million dollars. The Philippine peso was at 50.128 to the dollar.
"Investors took a cautious stance and the market is also undergoing a correction which we expect to continue in the next few days," said Harry Liu, of Summit Securities. Liu said the tensions arising from North Korea's nuclear weapons test also weighed on market sentiment but it was more of a knee-jerk reaction. "The market is more concerned about seeking a support level that will encourage investors to come in again," noted Liu.
The long-term outlook is bright given the Philippines' firm economic fundamentals, said Lawrence de Leon of Accord Capital Equities. Top-traded Philippine Long Distance Telephone was down 10 pesos at 2,190. Conglomerate Ayala Corp fell 10 pesos to 482.50 while unit Globe Telecom Inc was down 50 pesos at 1,095. Food and beverage firm San Miguel Corp's A-shares were steady at 65.50 pesos while its B-shares fell 50 centavos to 76 pesos.
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