The Philippine Star 09/09/2006
Share prices closed 1.13 percent lower yesterday, snapping a six-day rally, with further losses on Wall Street overnight prompting investors to take profits, dealers said.
Losses in blue chips, led by Philippine Long Distance Telephone Co. (PLDT), weighed on the main index but sustained interest in SM Investments Corp. and Megaworld Corp. helped limit the downside, they said.
The composite index was down 27.21 points at the day’s low of 2,378.04, after touching a high of 2,406.61. The index gained 2.1 percent for the week.
Volume was 2.1 billion shares worth P2.08 billion.
The broader all-shares index fell 11.98 points to 1,477.53.
Losers led gains 79 to 18, with 56 stocks unchanged.
"Stocks succumbed to profit-taking, with Wall Street’s losses undermining sentiment," said Ron Rodrigo of Unicapital Securities Inc.
"At the same time, technical indicators point to the market’s overbought condition."
Rommel Macapagal of Westlink Global Equities said the pullback was also triggered by a further warning from the stock exchange about price manipulation in the market.
"There was panic selling because of that warning and the lower liners got hit," Macapagal said.
Earlier this week the exchange issued a notice advising the public to exercise prudence after a number of listed companies, mostly second- and third-liners, breached their trading limits in the past two months.
The exchange queried these firms and most of them said they were not aware of any material information that might have caused the increases in the price of their shares and volumes traded.
Banco de Oro Universal Bank, the most actively traded stock, rose 50 centavos to P39 and parent SM Investments advanced P2 to P230.
Food and beverage giant San Miguel Corp.’s A-shares were steady at P65 and its B-shares were also flat at P71.
Ayala Corp., the country’s largest holding company, fell P10, or 2.1 percent, to P467.50, having surged 10 percent in the past six days to a seven-year high.
The stock’s 14-day relative strength index, a ratio based on changes in its share price over a two-week period, climbed to 78 yesterday. A reading over 70 signals to some investors that the stock is set to decline.
Bank of the Philippine Islands, declined P1.50, or 2.6 percent, to P55.50, snapping a 9.6 percent, six-day advance. SM Prime Holdings Inc., the nation’s largest shopping mall operator, fell 20 centavos, or 2.5 percent, to P7.90, its biggest drop in three weeks.
The main stock index yesterday advanced to its highest close since May 17 on expectations that inflation will ease. – AFP
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