Philippines shares back-pedalled on Tuesday after strong gains in the previous session, but traders said the market still has a tailwind from foreign buying and forecasts of good corporate profits for the rest of the year.
Trading was extended for 30 minutes from the scheduled 12:10 pm (0410 GMT) close after a computer glitch delayed the opening of the session. The market, usually open at 9:30 am (0130 GMT), started trading at 10:10 am.
The main stock index lost 18.25 points, or 0.99 percent, to end at 1,833.35, a day after the market hit its highest level since February 2000. Second-ranked telecom firm Globe Telecom was among the market's big losers, falling 2.98 percent or 35 pesos to 1,140 pesos.
The index is up 27.11 percent so far this year, making it one of the region's tops performing bourses.
Turnover narrowed to 1.24 billion pesos ($22 million) from 1.66 billion pesos on Monday. Losers outpaced gainers, 48 to 34, with 45 issues unchanged.
Plana said foreign buyers had returned to the market in recent weeks on hopes that the new government of President Gloria Macapagal Arroyo will pursue much-needed economic reforms and cut the country's chronic budget deficit.
"They are giving the government a chance to address the fiscal situation," Plana said. "Recent government announcements in addressing the fiscal problem have been quite firm." Dominant phone firm Philippine Long Distance Telephone Co closed at 1,470 pesos, up 0.34 percent or five pesos.
Some investors took profits after the stock hit a high of 1,500 pesos in mid-session, traders said. Second-ranked lender Bank of the Philippine Islands (BPI) slid 50 centavos or 1.04 percent to 47.50 pesos. The bank said in a statement it was not pursuing a plan to bid for a stake in Bank Permeate of Indonesia since its consortium was not chosen to proceed beyond the first phase of the privatisation.
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