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Friday, April 28, 2006
Shares decline on worries over May Day rallies (7:25 p.m.)
MANILA -- Shares declined Friday on profit taking triggered mainly by security concerns ahead of May Day rallies.
The benchmark 30-company Philippine Stock Exchange Index fell 10.86 points, or 0.5 percent, to 2,270.53. The index rose 2.2 percent in the past two sessions, including Thursday's 1.5 percent advance to 2,281.39, its best finish in nearly seven years.
"There was a little pullback after the market reached a new seven-year high Thursday. Mostly, investors were taking profit and waiting on the sidelines ahead of the long weekend," said Westlink Global Equities Chairman Rommel Macapagal.
Financial markets will be closed Monday for the May 1 holiday, and many in financial markets are jittery over rumors that opponents of President Gloria Macapagal-Arroyo plan to take advantage of the street rallies that traditionally mark May Day.
The police responded to potential security threats by placing its entire force in metropolitan Manila on heightened alert.
Blue chip Ayala Land contributed much to the index decline with a 6 percent loss to P11.75.
Philippine Long Distance Telephone Co., however, hit a new record high of 2,050 pesos, before closing at P2,045, up 0.5 percent. Traders said the stock recovered from a weak opening caused by cross sales worth P092.32 million.
Macapagal said positive overseas developments may have helped stave off further market losses Friday, citing Thursday's testimony by US Federal Reserve Chairman Ben Bernanke, who hinted that monetary authorities may take a break from the ongoing interest rate hike campaign.
Other active stocks included Philex A, which rose 1.3 percent to P4, and Philex B, higher by 5.1 percent at P4.10 on the mining concern's rosy earnings prospects bared at the company's analysts briefing Thursday.
The peso weakened Friday as banks bought US dollars ahead of the May Day rallies, traders said.
The dollar closed at P51.785 on the Philippine Dealing System, down from P51.730 Thursday. (AP)
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