050307: Share prices close flat on last-minute profit-taking

The Philippine Star 05/03/2007

Share prices closed flat yesterday as last-minute profit-taking in blue chips offset gains in the broader market, dealers said.

Investors turned cautious in the absence of fresh leads and did not sustain the early buy interest, with important elections for Congress due later this month a major concern.

The Philippine Stock Exchange composite index rose 1.26 points at 3,271.99 after trading between 3,270.92 and 3,308.46.

The broader all-share index rose 2.98 points to 2,081.70.

Gains led declines 52 to 43 with 63 stocks unchanged.

Volume was 4.59 billion shares worth P3.99 billion.

"We opened stronger on bargain-hunting interest, which immediately fizzled out as investors decided to lock in profits quickly given the lack of exciting leads," said Lawrence de Leon of Accord Capital Equities.

"This also reflects cautiousness in the market with the mid-term congressional elections now less than two weeks away," De Leon said.

Filipinos will elect a new batch of 12 senators, over 200 congressmen and thousands for local government positions during the May 14 polls.

Despite the mild advance, it was the first time in three trading days that the index lauded in positive territory.

"The strong earnings that are coming out are driving up the market,’’ said Ron Rodrigo, head of research at Unicapital Inc. "Strong earnings is a validation the economy is expanding.’’

The drop in global oil prices in the previous two days supports expectations that corporate earnings and consumer spending could grow further this year, according to Rodrigo.

"Lower oil prices are good for the economy and corporate earnings,’’ Rodrigo said, adding that he expects net income of Philippine companies to grow at least 15 percent this year on a minimum 20-percent expansion in sales.

Top-traded Philippine Long Distance Telephone closed unchanged at P2,540 after rising to an intraday high of P2,560.

Conglomerate Ayala Corp fell P5 to P595 while unit Bank of the Philippine Islands retreated P1 to P63.50.

Fastfood chain Jollibee Foods Corp. advanced P2 to P51.50 while property developer Megaworld Corp. rose 0.10 to P3.35.

Food and beverage firm San Miguel Corp.’s A- and B-shares were steady at P64.50 and P73, respectively. — AFP

 

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