Philippines stocks fell on Friday, after four straight days of gains, as concern over rising inflation spurred profit-taking in select blue chips including leading phone firm PLDT and number two Globe Telecom Inc.
Analysts said players were worried over the possible impact of rising oil prices on consumer prices and company profits. Philippine Long Distance Telephone Co (PLDT), the country's largest telecom group, dropped 10 pesos or 0.78 percent to 1,270 pesos.
Globe Telecom, which is jointly owned by conglomerate Ayala Corp and Singapore Telecommunications, dipped five pesos to 905 pesos.
The main index finished 3.85 points or 0.24 percent lower at 1,590.63 points. Value turnover fell to 502.04 million pesos ($9.02 million) from Thursday's 681.8 million pesos. Losers beat gainers 30 to 28 and there were 56 stocks unchanged.
Monetary officials said this week there was still room to keep overnight interest rates steady this year.
But Central Bank Governor Rafael Buenaventura has said the central bank may raise interest rates next year with average inflation seen exceeding the government target of 4.0-5.0 percent.
The central bank has not touched its benchmark rates since a cut of 25 basis points in July 2003 that matched a similar move by the US Federal Reserve.
The bank's overnight borrowing rate is 6.75 percent and its lending rate is 9.0 percent.
Analysts expect the market to further drop next week as it shakes off recent gains. "The market will move sideways with a bearish tone.
The next major support we are looking at is 1,550," said AB Capital economic analyst Jose Vistan.
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