053007: Shares close lower on profit-taking, China slump

May 30, 2007
Updated 13:12:08 (Mla time)

Xinhua Financial News Service

MANILA, Philippines -- Share prices ended lower as investors cashed in on recent gains, with the selling pressure intensifying towards the close as a slump in Chinese markets prompted by an increase in stamp duty on stock trades there weighed on other Asian bourses, dealers said.

The 30-company composite index finished down 54.07 points or 1.57 percent at 3,398.55, off the day's low of 3,394.61. It hit a high of 3,458.60.

The broader all-share index fell 33.71 points or 1.52 percent to 2,179.59.

There were 96 decliners and 23 advancers, while 53 stocks were unchanged.

A total of 5.3 billion shares worth 5.1 billion pesos changed hands.

"Technically, the market is still overbought," said Gomer Tan, vice president for marketing at Regina Capital Development Corp.

He said investors also took the safe side after China's latest move to curb the rapid rise in its stock market.

China's cabinet approved a tripling in the stamp tax on stock trades to 0.3 percent of the transaction value, effective today, in a bid to cool its equity market.

Rommel Macapagal, chairman of Westlink Global Equities, said the Philippine market is now looking for a strong support level after failing to sustain its recent record-breaking run.

Some analysts expect buyers to resurface if the composite index manages to stay around the 3,400 level.

Ayala Land Inc, the most actively traded stock, fell 0.25 peso to 15.00.

Trading in shares of the property developer was briefly suspended earlier Wednesday following a newspaper report that it was looking at robust growth in sales at one of its residential projects.

Philippine Long Distance Telephone Co retreated 70.00 pesos to 2,470.00.

Conglomerate Ayala Corp bucked the trend, gaining 5.00 pesos to close at 520.00.

Food and beverage firm San Miguel Corp's A and B shares were steady at 65.50 and 76.00 pesos, respectively.

 

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