Philippines share prices closed 0.5 percent lower on Friday as investors took profits amid fresh concerns about the health of the US economy and surging oil prices, dealers said. The Philippine Stock Exchange composite index fell 18.65 points to 3,423.73 after moving between 3,402.98 and 3,442.38.
The broader all-share index shed 12.86 points at 2,143.53. Mining stocks bucked the downtrend, extending their rally for a third straight day on hopes earnings will improve on record prices of precious metals. Decliners outnumbered gainers 59 to 51, while 49 stocks ended flat.
Volume amounted to 2.8 billion shares worth 3.3 billion pesos (72.6 million dollars.) "The market took a breather after the strong run-up earlier this week, while foreign fund managers are focused on the testimony of Ben Bernanke," said Grace Cerdenia of 2TradeAsia.
Bernanke, the US Federal Reserve chairman, warned Thursday of further foreclosures and delinquencies in the subprime mortgage market. His comments helped drive the Dow Jones Industrial Average down 0.4 percent. Analysts said the market was not particularly worried about domestic concerns.
"There are bigger concerns such as the possibility of a bigger slowdown in the US, and higher oil prices which could derail the projected full-year economic growth," said Astro del Castillo of First Grade Holdings. "There was a natural correction after the rallies this week. Investors unloaded blue chips and shifted to second- and third-liners," said Rommel Macapagal of Westlink Global Equities Inc.
Index leader Philippine Long Distance Telephone dropped 30 pesos to 2,800. Its arch-rival Globe Telecom Inc fell 20 pesos to 1,380. Conglomerate SM Investments Corp shed 15 pesos to 360. Power distributor Manila Electric Co lost 2.50 pesos to 82.50. Among mining counters, Philex Mining was up 40 centavos at 7.40 pesos. San Miguel Corp's A shares rose 50 centavos to 61 pesos, while its B shares slipped 50 centavos to 61 pesos. The peso traded at 45.448 to the dollar.