Wednesday, August 09, 2006

Shares seen lower on profit-taking

INQ7 MONEY - BREAKING NEWS

August 02, 2006
Updated 08:47:10 (Mla time)
Cecille Yap
Xinhua Financial News Service

SHARE prices are expected to open lower, as investors take further profits in the wake of the market's run-up to its best level in nearly three months Monday, dealers said.

They said Wall Street's weak performance and higher crude oil prices overnight are also expected to weigh on sentiment here.

On Tuesday, the composite index ended down 2.51 points or 0.10 percent at 2,388.33 as profit-taking emerged late in the day to trim early gains.

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 as investors targeted large cap firms that have reported robust June quarter earnings, or are set to do so soon.

Overnight Wall Street fell after a key inflation indicator the PCE index, recorded its strongest level in 11 years in June and as the Institute of Supply Management's July reading exceeded market expectations.

The surprisingly strong data, allied to a fresh spike in oil prices, reignited fears that the Fed will continue to hike its key target rate for an 18th consecutive time at its policy meeting next week.

"Today's trade may see an anticipated correction. The market is certainly ripe for one," BPI Securities told clients in a note. It sees near term support for the main index at 2,300 points.

http://services.inq7.net/express/06/08/02/html_output/xmlhtml/20060802-13003-xml.html

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