Philippine stocks fell to their lowest level in nearly five weeks on Tuesday on profit-taking after the government said it exceeded its first-half budget deficit target.
The main index dropped 11.26 points or 0.73 percent to 1,533.0 points, led down by leading telecom firm Philippine Long Distance Telephone Co (PLDT) and second-largest lender Bank of the Philippine Islands.
The Philippines said it breached its budget shortfall target in the first half of 2004, although the 0.6 percent overshoot was smaller than expected as the government reined in spending in June.
Finance Secretary Juanita Amatong told Reuters in a telephone interview the closely watched gap between spending and revenues reached 80.1 billion pesos ($1.43 billion) in the first six months of the year, versus the target of 79.6 billion. the finance minister said on Tuesday.
Value turnover fell to 294.2 million pesos ($5.26 million) from Monday's 325.16 million pesos, as losers beat gainers 40 to 31.
PLDT, a quarter owned by Hong Kong's First Pacific Co Ltd, was the session's most active stock. It fell 1.27 percent or 15 pesos to 1,165 pesos.
BPI, 35 percent owned by conglomerate Ayala Corp, finished 2.41 percent or 1 peso lower at 40.50 pesos.
Globe Telecom Inc, the country's second-largest phone firm, fell 1.26 percent or 10 pesos to 785 pesos.
The country's largest power retailer Manila Electric Company (Meralco) beat the downtrend on news that it was seeking another rise in power rates.
Meralco said in a statement that it was applying for a 5.2 percent rate increase to meet higher costs.
Though revenue-neutral for Meralco since the company is just seeking to pass on additional costs demanded by state-owned power generator National Power Corp (Napocor), investors cheered the news.
Meralco A shares restricted to Filipinos jumped 1.43 percent or 25 centavos to 17.75 pesos. Meralco-B, open to foreigners, rose 1.79 percent or 50 centavos to 28.50 pesos.
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