Manila stocks ended a touch lower on Monday as the market largely shrugged off better-than-expected economic growth data, still concerned that high inflation may cut second-half growth and dent corporate profits.
The Philippine stock index slipped 1.63 points, or 0.1 percent, to end at 1,580.41 points after trading in a tight range of less than 10 points during the session.
"Technically, we were expecting a consolidation which is what you're seeing right now," said Elena Ponceca, research head at Unicapital Securities Inc.
Gross domestic product grew 6.2 percent in the year through the second quarter, beating government and economists' estimates. But quarterly growth slowed to its lowest since the third quarter of 2002 and analysts said the economy would probably cool in the second half as it feels the impact of record high oil prices and the government's precarious fiscal position.
"As far as the GDP data is concerned, most market players have discounted the second quarter data already," Ponceca said.
"You are seeing (the) cost of services increasing with spiralling oil prices abroad, which could affect the manufacturing sector," Ponceca said, adding the market may correct to the 1,525 level before buyers resurface.
Turnover slowed to 400 million pesos ($7.1 million) from 1.01 billion on Friday.
Despite the slide in the main index, gainers beat losers 40 to 32, with 39 issues unchanged, indicating mixed sentiment in the market.
Dominant phone firm Philippine Long Distance Telephone Co added 5 pesos, or 0.4 percent, to 1,265 pesos, helped by a small 0.71 percent gain on Friday in its shares traded in New York.
Engineering and construction firm DMCI Holdings Inc corrected from heady gains recently to slip 1.92 percent, or 4 centavos, to 2.04 pesos.
Before Monday's fall, the stock had soared 144 percent since the start of the month on expectations its mining subsidiary would benefit from government policy on supporting mining investments.
Union Cement Corp gained 5.66 percent, or 12 centavos, to 2.24 pesos on expectations that demand for the firm's cement products would rise with problems at its rival Solid Cement.
The government is holding quality tests of Solid's cement products after it ordered the company to stop selling its products due to poor quality.
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