Market continues to drop on profit-taking, Wall St losses

Market continues to drop on profit-taking, Wall St losses

The Philippine Star 01/14/2006
http://www.philstar.com/philstar/NEWS200601140703.htm

Philippine share prices closed 0.48 percent lower yesterday as investors took profits following losses overnight on Wall Street, dealers said.

They said the market looks overbought following its recent rise to a 10-month high, leaving stocks susceptible to profit-taking.

The composite index fell 10.38 points to 2,148.27 after trading between 2,142.26 and 2,159.12. Volume was 947.12 million shares worth P1.039 billion ($19.8 million).

Losers just led gains 40 to 39, with 43 stocks unchanged.

The peso was at 52.455 to the dollar as of mid-day.

"We’re seeing some pockets of profit-taking which is only normal since the market has been trading higher since the start of the week," said Oliver Plana of Asiasec Equities.

"This is more of a technical correction than a consolidation phase. The market continues to move higher despite some pauses along the way. It’s not locked in a range," said Mark Alan Canizares of Citiseconline.com.

Top-traded Philippine Long Distance Telephone ended steady at P1,845.

Globe Telecom fell P15 to P750 while parent Ayala Corp. shed P5 to 335.

San Miguel saw both its A and B shares fall 50 centavos to P64 and 88 pesos respectively.

Banco de Oro declined on speculation its offer to merge with Equitable PCI Bank will be scuttled after a government fund said it received a higher offer for its Equitable shares.

SM Prime Holdings Inc. rose after its parent company, SM Investments Corp, said it will build a convention center and an office tower next to its unit’s Mall of Asia in Manila, which could attract more customers.

Banco de Oro, a lender owned by the nation’s richest tycoon, Henry Sy, fell 50 centavos, or 1.4 percent, to P35.50, after jumping to a record P37 on Jan. 10. Government Service Insurance System President Winston Garcia said the fund has received an offer for its 12.2-percent stake in Equitable, which last week received a merger offer from Banco de Oro through a share swap.

Equitable PCI Bank, the nation’s third-largest lender by assets, fell P2, or 3.1 percent, to P63, snapping a three-day 5.7-percent climb that took it to its highest since Nov. 22, 2000.

Shares worth P1.04 billion were traded, 3.4 percent less than the six-month daily average.

Separately, SM Prime, the nation’s largest shopping mall operator, rose 10 centavos, or 1.3 percent, to P7.80, paring this week’s loss to 2.5 percent. Its parent, SM Investments, said yesterday the P2.4-billion project will be completed by mid-2007. SM Investments was unchanged at P240. – AP