Tuesday, March 28, 2006
Shares fall for 2nd day as investors lock in profits (2:10 p.m.)
MANILA -- Shares declined for a second day Tuesday as investors locked in profits after last week's gains propelled the index to a nearly seven-year high.
The benchmark 30-company Philippine Stock Exchange Index fell 9.16 points, or 0.4 percent, to 2,186.79, after shedding 0.6 percent Monday. On Friday, the index rose to its best close in nearly seven years, hitting 2,208.13.
"This is part of the correction that we've anticipated, especially after the index hit the psychological mark of 2,200 last week," said AB Capital Securities analyst Erwin Balita. "Investors are also cautious ahead of the Fed meeting."
While financial markets have more or less discounted another 25-basis-point US interest rate increase at the end of the Federal Reserve policy meeting Tuesday, there was uncertainty over how it will affect US monetary policy, traders said.
Stocks that contributed heavily to the index loss were Ayala Land, off 2.3 percent at P10.75, and Bank of the Philippine Islands, lower by 0.8 percent at P62 on continued profit-taking.
Limiting the market loss were Philex A, which rose 7.1 percent to P2.55, and Philex B, which was higher by 4.5 percent at P2.55.
The mining concern said Monday its board approved the declassification of the company's stocks into common shares. A shares are exclusive to Filipino investors, while B shares are open to local and foreign investors.
Analysts said the declassification should boost the stock's liquidity and increase investor interest in Philex.
Philippine Long Distance Telephone Co. rose 1.1 percent to P1,900, after its American depositary receipts rose 0.8 percent.
PLDT Chairman Manuel Pangilinan was also cited in local newspapers Tuesday as saying that earnings prospects of the country's largest telecommunications group look positive this year.
PhilWeb rose 18 percent to P0.026, possibly on speculation that negotiation for the sale of some of the shares of the information technology concern to PLDT unit, ePLDT, will eventually push through. (AP)
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