Manila stocks dip after three-day rise

Philippine stocks ended lower on Monday after a three-day rise last week as investors locked in profits in the absence of fresh leads, analysts said.
Telecom leader PLDT and dominant power retailer Manila Electric Company led the market decline.
Philippine Long Distance Telephone Company (PLDT), the country's largest phone firm, shed 1.08 percent or 10 pesos to 920 pesos.
B shares in Manila Electric Company (Meralco), which are open to foreigners, fell 8.2 percent or 2.5 pesos to 28 pesos. Its A-shares, which are restricted to Filipinos, dropped 3.9 percent or 75 centavos to 18.50 pesos.
"This is just a technical correction. The market was up for the past three days and there was no catalyst to inspire more buying," said Oliver Plana, research head at Asiasec Equities.
The main index ended 19.16 points lower at 1,431.67 points. The market is down 0.74 percent so far this year.
Value turnover dropped 40 percent to 371.75 million pesos ($6.60 million) from Friday's 617.2 million pesos.
Losers beat gainers 31 to 25 and there were 43 stocks unchanged.
"Unless there is a significant development, the market will probably move in a tight range in the next session," said Plana, who saw the market's support level at 1,420 and resistance at 1,480.
Analysts said interest was still focused on telecom stocks given the huge revenue potential driven by an anticipated flood of calls and text messages around May 10 national elections.
"We expect PLDT to sustain its sharp growth in revenues and profit this year, pulled by its banner mobile unit Smart Communications," Plana said.
"Its smaller mobile unit Piltel is a turnaround story too. PLDT is focused on fixing its debt condition. A possible merger with Smart would be the bonus."
PLDT said last week it was considering using debt issued by Smart Communications to restructure $403 million of international borrowings by Pilipino Telephone Corp (Piltel).
Piltel, 45-percent owned by PLDT and the country's third largest mobile firm, closed 1.14 percent or two centavos lower at 1.74 pesos.
Globe Telecom Inc, the country's second-largest phone firm and PLDT's chief rival, finished five pesos lower at 845 pesos.