Shares decline 0.6 percent as investors cash in on gains

Shares decline 0.6 percent as investors cash in on gains
03/27 2:22:30 PM

MANILA (AP) - Shares declined Monday as investors cashed in on recent gains and exercised caution over the prospect of further U.S. interest rate hikes.

The benchmark 30-company Philippine Stock Exchange index declined 12.18 points, or 0.6 percent, to 2,195.95, after rising 0.7 percent Friday.

"It's time to take profit as the market rose for most of the last two weeks," said James Lago, an analyst at Westlink Global Equities. The market rose about 5 percent in the previous two weeks.

Dealers said some investors were cautious over the possibility that U.S. interest rates may continue to rise. Higher U.S. interest rates tend to pressure up domestic interest rates, in turn damping interest in local stocks.

Blue chip Ayala Corp., among the most actively traded issues, ended down 0.7 percent at 362.50 pesos, while its unit Bank of the Philippine Islands retreated 1.6 percent to 62.50 pesos.

Philippine Long Distance Telephone Co. was unchanged at 1,880 pesos.

Aboitiz Equity Ventures also remained unchanged at 51 pesos, even after the company disclosed that its 2005 net profit rose 29 percent on year to 3.16 billion pesos (US$62 million) on improved contributions from most of the investment holding company's businesses.

Property developer Megaworld was unchanged at 1.52 pesos as investors waited for more indications whether the company's net profit forecast is attainable.

The company's chairman, Andrew Tan, told reporters at the weekend that Megaworld's net profit should rise around 30 percent this year and revenue increase 25 percent as new projects are launched to meet demand from overseas Filipino workers and the outsourcing industry.

 

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