Philippine stocks fell, with the index posting its worst day in more than two months on speculation interest rates in the US won't be lowered anytime soon. Ayala Land Inc. and Philippine Long Distance Telephone Co (PLDT). led losers.
"The US economy, it appears, is not as weak as most people think,'' said Fitz Aclan, who helps manage the equivalent of $2.04 billion at Banco de Oro. "While that is a positive sign for the US economy that is disappointing for a market that was looking forward to a rate cut.''
Philex Mining Corp. fell after the price of copper declined 11 percent last week in New York, the largest weekly drop since April 2005, according to available Bloomberg data.
The Philippine Stock Exchange Index lost 44.07, or 1.5 percent, to 2952.32 at the close in Manila, its biggest loss since October 17. The measure, which advanced for the fifth- straight week on Friday, lost as much as 1.7 in earlier trading Monday.
US stocks fell the most in a month in New York on Friday after a Labor Department report showed employers added more workers than expected to payrolls in December. The US is the biggest trading partner of the Philippines and its biggest source of overseas workers' remittances, which make up about a tenth of the nation's economy.
PLDT, the nation's second-most profitable company in 2005, fell P55, or 2.2 percent, to P2450, its biggest loss in two weeks. Ayala Land, the nation's most profitable lender, declined 25 centavos, or 1.6 percent, to 15.50 pesos.
The Philippine stock index last year surged 42 percent, its fourth straight year of gains and its biggest annual jump since a 158-percent rally in 1993. The measure trailed only the main stock index in Vietnam and Thailand in Southeast Asia.
"Emerging markets' assets, such as Philippine equities, will be less attractive if the US doesn't implement a rate cut,'' Aclan said. "Until the direction on interest rates is settled, the markets will be sensitive to all data that comes out on the US.''
Filinvest Land Inc., a builder that is arranging the sale of up to 5.4 billion shares, fell 2 centavos, or 1.2 percent, to P1.70. Manila Water, which supplies water to the eastern half of Manila, the capital, lost 40 centavos, or 4.3 percent, to P8.90, its biggest decline in a month. Ayala Corp., the third-largest company by market value, declined P5, or 0.9 percent, to P555, a two-week low.
Separately, Philex Mining, the nation's most profitable copper producer, fell 20 centavos, or 5.1 percent, to P3.75, the lowest since October. The price of copper last week fell to its lowest since April 7, 2006, after sliding 12 percent in three days.
Manila Electric Co.'s Class B shares, equity with no ownership restrictions, fell P1.5 pesos, or 2.6 percent, to P57.
The utility is the Philippines's largest power retailer. The nation's energy regulator said last week after trading closed that it allowed only 20 percent of a fee increase the utility sought to cover power costs in October.
First Philippine Holdings Corp., shareholder at Manila Electric, declined 2 pesos, or 2.9 percent, to 68, its first loss in five days. Benpres Holdings Corp., owner of First Holdings, fell 10 centavos, or 3.7 percent, to P2.60 pesos, after climbing 25 percent last week; its biggest weekly gain since February.
Shares worth P2.19 billion were traded, 11-percent less than the six-month daily average. Losers beat gainers 83 to 36, with 42 stocks unchanged in the broader market. (Bloomberg)
Business Mirror
January 9, 2007
No comments:
Post a Comment