Shares close slightly lower as profit-taking emerges

INQ7 MONEY - BREAKING NEWS

August 01, 2006
Updated 13:15:59 (Mla time)

Xinhua Financial News Service

(UPDATE) SHARE prices closed slightly lower, shrugging off early gains, as investors moved to take profits after the composite index had risen to its best level in nearly three months, dealers said.

The composite index ended down 2.51 points or 0.10 percent lower at 2,388.33, after trading between 2,383.68 and 2,409.98.

The broader all-shares index retreated 2.75 points to 1,468.69.

Decliners outnumbered advancers 61 to 26, while 54 stocks were unchanged.

Volume was heavy at 2.57 billion shares worth 1.8 billion pesos, with much of the interest in companies that have reported strong second quarter earnings, or are expected to do so, dealers said.

Dealers said the strong first-half showing of most blue chips and expectations that other companies would follow suit have enticed investors to accumulate stocks recently. However, some of them decided to cash in gains Tuesday.

"There was follow-through buying (early on) driven by the strong fundamentals of most blue chips," First Grade Holdings Inc. managing director Astro del Castillo said. He added that fears of another US Federal Reserve rate hike at its meeting next week appear to have eased for now, enticing investors back into equities markets.

"The profit reports we've seen so far indicate that external shocks (such as high oil prices) have not really impacted on earnings (in the second quarter)," CitisecOnline.com analyst Mark Canizares noted.

While the mood remains broadly upbeat, some investors decided to take a breather, and moved to cash in gains just ahead of the close, pushing the market down slightly.

Globe Telecom Inc. rose 30 pesos or 3.06 percent to 1,010 pesos on 59,080 shares after reporting that its first-half net profit rose 37 percent year-on-year to 5.8 billion pesos after subscribers to its mobile phone service grew and costs dropped.

The country's second largest telecoms firm also declared a semi-annual cash dividend of 30 pesos per share to shareholders on record as of August 17, payable on September 12.

Its rival Philippine Long Distance Telephone Co. (PLDT) advanced 20 pesos or 0.97 percent to 2,090 on 181,580 shares ahead of its second quarter earnings to be announced on August 8.

Bank of the Philippine Islands (BPI) succumbed to profit-taking after earlier gains to end 0.50 pesos lower at 53.50 pesos.

Conglomerate Ayala Corp., the parent of Globe and BPI, rose 7.50 pesos to 432.50.

Property developer Megaworld Corp. advanced 0.02 pesos to 1.50 pesos after announcing that it had raised 100 million dollars from an offshore offering of five-year bonds. Proceeds will be used to fund its 25-hectare mixed-use Newport City project, which is expected to be completed by 2008.

(One dollar = 51.60 pesos)

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