Shares close lower on continued profit-taking

Manila Times

Wednesday, November 16, 2005

 

Shares close lower on continued profit-taking

 

PHILIPPINE share prices closed lower Tuesday on continued profit-taking after recent sustained gains, dealers said.

 

They said the market continued to consolidate but sentiment was positive, as political tensions have eased and the government has pushed through its expanded value-added tax, a key measure to help remedy a chronic budget deficit.

 

The Philippine Stock Exchange composite index was down 0.40 percent to 8.31 points at 2,063.74 after trading between 2,059.86 and 2,076.52.  Volume was two billion shares worth P472 million ($8.63 million).  The broader all-shares index retreated 4.41 points to 1,251.77.

 

The Philippine peso was at 54.69 to the dollar in mid-day trade.

 

Dealers said they expect the market to remain in consolidation mode in the next few days with most share prices still deemed overbought after the main index rallied to its best level in eight months last week.

 

"Investors are taking a breather since the market is still overbought, but overall sentiment remains bullish," said Astro del Castillo of First Grade Holdings.

 

The modest downturn Tuesday shows that many investors remain confident the market still has further upside once the consolidation is over, he said.

 

Grace Cerdenia, 2TradeAsia.com research head, said there was interest in small caps with positive earnings outlook as investors shifted some funds out of the more expensive blue chips.

--AFP