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Friday, November 05, 2004
RP shares down on security, inflation concerns (2:51 p.m.)
MANILA -- Philippine shares closed slightly lower Friday, with investors spooked by security concerns following grenade attacks at the offices of two of the country's largest oil companies.
The 30-company Philippine Stock Exchange Index ended down 2.69 points, or 0.2 percent, at 1,817.52, adding to Thursday's 0.4 percent loss. Decliners led gainers 42 to 36, while 48 stocks were unchanged.
"Basically, the attacks made the market nervous," said First Grade Holdings' managing director Astro del Castillo.
The October inflation data released shortly before the market opened also partly contributed to the market's tepid performance, though traders said the spike in consumer prices during the month was already expected.
The National Statistics Office reported that consumer prices in November rose 7.1 percent year-on-year, its fastest expansion in five years, due to rising oil prices.
"The higher inflation was already expected, but still it was bad news," del Castillo said. "Our worries moving forward would be the inflationary effect of high oil prices on corporate results."
AB Capital Securities' research director Jose Vistan said that while markets overseas are bullish, the Philippine market remains on tenterhooks as investors await the outcome of pending tax bills meant to address the government's fiscal problems and ensure the country won't suffer another credit ratings downgrade.(AP) |
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