Philippines share prices closed 0.30 percent lower on Tuesday as investors locked-in profits after the key index returned to its highest level in almost 10 years, dealers said.
They said blue chips Philippine Long Distance Telephone (PLDT) and Ayala Land led decliners as market participants opted to wait for the release of corporate earnings before buying more shares. The composite index fell 9.93 points to 3,271.97 after trading between 3,265.15 and 3,308.58 points. There were 6.2 billion shares traded worth 1.0 billion pesos (20.5 million dollars).
Losers outnumbered gainers 66 to 39, while 54 stocks ended unchanged. The broader all-share index was down 2.83 points at 2,061.18. The local currency traded at 48.602 to the dollar. "The market is consolidating," said Chelsea Dipasupil of RCBC Securities. "It's a healthy correction since some stocks are already overbought after the recent run-ups."
Lawrence de Leon, an analyst at Accord Capital Equities, said that after a six-day rally, investors decided to cash in on their gains. "The correction could continue in the next few sessions, especially as investors await more corporate results," he said.
But dealers believe the market's uptrend remains intact, backed by hopes the economy will continue expanding this year amid low interest rates and tame inflation. "In fact what pushed the market in earlier trade was the spate of good economic news," said Joseph Roxas of Eagle Equities. PLDT closed down five pesos at 2,560 while its rival Globe Telecom lost five to 1,405.
Ayala Land, which reported Monday net profit last year rose seven percent from 2005, gave up 25 centavos to settle at 17.25 pesos. San Miguel saw its A shares remain unchanged at 64 pesos but its B shares rose two to 78.50.
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