Shares drop as investors shift tack

By Luzi Ann Javier

Bloomberg

PHILIPPINE stocks fell for a second day, led by Ayala Corp., as investors shift to cheaper stocks on speculation that a rally in the main index has peaked. "Investors are cashing in on the past weeks' gains," said Miguel Cervantes, an analyst at 2TradeAsia.com in Manila. "It's more profitable to buy cheaper stocks because any small fluctuation in the price could mean a bigger gain." The Philippine Stock Exchange index dropped 48.71 points, or 1.4 percent, to 3331.29 at the close. The measure rose to 3447.60 on February 23, its highest since February 1997. Decliners outnumbered gainers 98 to 42, while 31 were unchanged in the broader market. Ayala Corp., the fourth-largest Philippine company by market value, fell P25, or 4 percent, to P605 after having risen 6 percent this year. Ayala Land Inc., a unit of Ayala Corp., fell 50 centavos, or 2.9 percent, to P16.50. It has risen 8 percent this year. Among smaller stocks, Geograce Resources Philippines Inc., which last year sold its cotton and health-care business to move into mining, rose 4 centavos, or 2.2 percent, to P1.88, after a newspaper reported that it will sell shares in the US and Australia before March next year, while a unit with gold and copper mining claims will hold a first public share sale this year. "When small stocks like Geograce move up, you're getting a bigger gain," Cervantes said. "That's why it's more profitable to bet on these stocks." Among other declining stocks, Benpres Holdings Corp., which owns the largest Philippine power retailer, dropped 15 centavos, or 3.6 percent to P4. The stock has gained 81 percent this year, compared with a 12-percent advance in the main index.  Aboitiz falls ABOITIZ Equity Ventures Inc., which has interests in shipping, banking and power, lost 30 centavos, or 3.4 percent, to P8.50. The stock has risen 18 percent this year. Philippine Long Distance Telephone Co., the nation's biggest company by market value, dropped P55, or 2.1 percent, to P2,550. International Container Terminal Services Inc., the largest Philippine port operator, gained P2, or 7 percent, to P30.50, after UBS Securities Philippines Inc. raised its recommendation on the stock to "buy 2" from "reduce 2." International Container and the government have agreed on terms for running a new terminal in Subic Bay port, the company said Monday.

 

http://www.businessmirror.com.ph/02282007/companies01.html 

 

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