050407: Stocks end sideways as investors cash in gains

The Philippine Star 05/04/2007

Share prices closed flat yesterday as investors cashed in on early gains and adopted a cautious stance ahead of the upcoming May 14 mid-term elections, dealers said.

The composite index slipped 0.46 points to 3,271.53 after trading between 3,263.49 and 3,293.35.

The broader all-share index fell 2.14 points to 2,079.56.

Gainers and losers were even at 48 each, with 61 stocks unchanged.

Turnover was 5.8 billion shares worth P3.9 billion.

"Investors were very tentative. They bought stocks in early trade when the market was moving up but were also quick to take profits when it became apparent that the market could not get out of the 3,300 points range," said Rommel Macapagal of Westlink Global Equities.

He said investors also opted to wait for the release next week of corporate results for the three months to March from the likes of San Miguel, Philippine Long Distance Telephone (PLDT), Globe Telecom and Ayala Corp.

Macapagal said the approaching mid-term elections weighed on sentiment.

"While the elections are generally seen to be peaceful, investors were still reluctant and would rather play safe, avoiding unexpected negative developments," he added.

The government has stepped up security measures ahead of the May 14 polls when Filipinos will elect 12 senators, over 200 congressmen and thousands for local government positions, amid rising election-related violence.

Banking stocks led the market’s decline on speculation inflation rose at a faster pace in April.

"A rise in inflation will create pressure on interest rates and the cost of doing business,’’ said Astro del Castillo, managing director of First Grade Holding Inc., a financial management and advisory company. "It is a good time to lighten your load in equities.’’

Limiting declines, energy and consumer stocks rose on speculation demand for electricity and consumer spending will rise after the government said economic growth will accelerate in the next three years and Texas Instrument Inc. said it will invest $1 billion in the country.

Consumer prices in April probably rose 2.4 percent from a year earlier, according to the median estimate of 13 economists surveyed by Bloomberg News, accelerating from a seven-year low of 2.2 percent in March. — AFP

 

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