MONEY - BREAKING NEWS
January 08, 2007
Updated 13:03:09 (Mla time)
(UPDATE) SHARE prices closed lower on consolidation with extended profit-taking in select stocks led by Philippine Long Distance Telephone Co. and Ayala Corp., dealers said.
They said Wall Street's weak performance Friday further dampened sentiment, with investors also keeping track of other markets in the region amid fresh concerns of a contracting US economy this year.
The composite index declined 44.07 points or 1.47 percent to close at 2,952.32, off a high of 2,996.39 and a low of 2,945.99 .
The broader all-share index slipped 20.54 points to 1,846.31.
Market breadth was negative with losers outnumbering gainers 83 to 36, while 42 stocks ended unchanged.
Volume turnover totaled 3.0 billion shares worth P2.1 billion.
"Investors feel smug about breaking the 3,000 level last week; they believe some stocks have already reached their full value and decided to sell, and there appears to be no clear signs of a slowdown in selling at this point," said Lawrence de Leon, analyst at Accord Capital Equities Inc.
He said trading losses spurred by heavy selling in blue chips in early trade were cushioned by buying in select second and third liners in late trading.
The sell-off is expected to continue over the short-term as the market is still in a consolidation phase, dealers said.
They added there are also worries that export-driven economies in the region, such as the Philippines, face bleak prospects as far as their exports to the US is concerned following recent economic data indicating signs of a slowdown there this year.
"While the market has already factored in recent news of a possible contraction of the US economy, this continues to haunt investors," said de Leon.
Other analysts, however, believe the market is just revving up for an eventual breakout into the 3,000 level again.
"The market is just building a base as it challenges the 3,000 mark again to bring this up possibly to the 3,400 level in the first half of the year," said Gomer Tan, vice president for marketing at Regina Capital Development Corp.
PLDT led decliners, falling P55 or 2.20 percent to P2,450 while its unit, Pilipino Telephone Corp., also shed P0.10 or 1.45 percent to P6.80.
Rival Globe Telecom edged down P10 or 0.79 percent to P1,250.
Conglomerate Ayala Corp. declined P5 or 0.89 percent to P555, while its unit property firm Ayala Land Inc. also slipped 0.25 or 1.59 percent to P15.50.
Food and beverage firm San Miguel Corp. retreated. Its A shares, restricted to Filipino investors fell P0.50 or 0.78 percent to P64, and its B shares, open to foreign investors, slipped P0.50 or 0.67 percent to P74.50.
Power distributor Manila Electric Co's A shares were down P1.50 or 2.26 percent to P57, while its B shares lost P1 or 1.69 percent to P58.
Select second liners were higher. Megaworld Corp. unit Empire East Land Holdings gained P0.06 or 10.53 percent to P0.63 while Transpacific Broadband Group Intʼl Inc. also advanced P0.15 or 5.08 percent to P3.10.
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