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Philippines share prices closed 4.1 percent lower on Wednesday as markets around the world plunged on continued worries about problems in US credit markets, dealers said. The composite index closed 133.22 points lower at 3,130.34. It was the fourth straight day of index falls, hitting its lowest closing level since March 21.
The broader all-share index fell 80.30 points or 3.8 percent to 2,088.15. Of the 158 stocks traded, 131 declined, six advanced and 21 ended flat. Volume was thin, with 2.6 billion shares worth 4.0 billion pesos (86.7 million dollars) changing hands.
The local currency traded at 46.134 to the dollar. Analysts said investors had been shaken again when Wall Street plunged for a fourth consecutive session on problems in the US subprime mortgage market and on disappointing forecasts by major US retailers Home Depot and Wal-Mart.
"Home Depot and Wal-Mart forecasts are bearish. This is a reflection of weakening consumer confidence and is partly due to the drop in US stocks and continued worries over the subprime sector," said Jose Vistan of AB Capital Securities.
Vistan said investors here were in a panicky mood and had sought safety elsewhere. Market leader Philippine Long Distance Telephone Co led the day's major decliners, losing 115 pesos to 2,465.
Conglomerate Ayala Corp's stock fell 25 to 432.50. Shares in its property unit, Ayala Land, were down 50 centavos at 14.25 pesos. SM Investments Corp slipped 25 pesos or 6.9 percent to 332.50.
Shares in the country's three biggest banks were among the day's biggest losers. Metropolitan Bank and Trust Co shed 2.50 at 53, Bank of the Philippine Islands was down 1.50 at 59 and Banco de Oro-EPCI dipped one to 55. San Miguel Corp saw its A shares fall by two to 66 while its B shares slipped 1.50 to 68.50.

Copyright Agence France-Presse, 2007

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