Philippines stocks decline

Philippines stocks fell for the seventh straight session on Friday led by telecomm leader PLDT on lingering worries over a likely corporate and sovereign debt downgrade by credit rating agencies. Analysts said investors also took profits ahead of a long weekend as the government declared next on Monday a public holiday to mark the end of the holy Muslim month of Ramazan.
Financial markets will resume trading on November 16. Philippine Long Distance Telephone Co (PLDT), a quarter owned by Hong Kong's First Pacific Co Ltd, fell 2.64 percent or 35 pesos to 1,290 pesos.
It was the most active stock and accounted for 40 percent of total trade. Second-ranked Globe Telecom Inc fell 1.52 percent or 15 pesos to 970 pesos. "PLDT tracked the drop in its American Depository Receipts which are traded in New York. Local players followed the cautious position of foreign investors given the warning from Moody's on a possible downgrade of sovereign debt and of companies like PLDT and Globe," said AB Capital analyst Jose Vistan.
Moody's Investors Service on Tuesday placed PLDT and Globe on review for a possible downgrade, in line with its move to put Philippine sovereign debt on notice for a ratings cut on doubts over the government's ability to rein in its fiscal deficit.
The main index ended 1.26 percent or 22.28 points lower at 1,742.81 points. The market has climbed 21 percent so far this year. Value turnover was thin at 880.4 million pesos ($15.6 million) as losers beat gainers 52 to 16.
For the market to rebound towards the end of the year, analysts said players were hoping for the passage of reform bills in Congress, which will help the government raise revenues to cut its budget deficit.
Philippine lawmakers were rushing to draft a compromise version of the proposed taxes on cigarettes and alcohol.
Senator Ralph Recto said the committee on ways and means would endorse a bigger revenue target of more than 7-14 billion pesos in combined income from the proposed revenue measure, higher than the estimated yield from the House-approved version of a 20-percent tax hike plus 3-percent increase for the next two years.