052607: Shares close lower on profit-taking

May 25, 2007
Updated 15:46:29 (Mla time)

Xinhua Financial News Service

(UPDATE) MANILA, Philippines -- Share prices closed lower as investors locked in profits after Wall Street's slump overnight, but gains in Philippine Long Distance Telephone Co. helped the market cut losses, dealers said.

Investors also exercised caution amid recent comments by former US Federal Reserve chairman Alan Greenspan that China's rapidly rising stocks may eventually fall sharply, possibly taking with them the rest of the global equity market, they said.

At the close, the 30-company composite index was down 29.01 points or 0.84 percent at 3,441.76, after moving between 3,426.82 and 3,470.77. It dropped 0.2 percent from the previous week.

The broader all-share index fell 15.10 points or 0.68 percent to 2,212.32.

Losers outnumbered gainers 68 to 44, while 52 stocks were unchanged.

A total of 3.6 billion shares worth P5.5 billion changed hands.

"The selling pressure is very evident. That's a given after the week-and-half long rally and with the index hitting record levels," said Lawrence de Leon, an analyst at Accord Capital Equities, referring to the market's seven-day rise up to Tuesday that brought the composite index to all-time highs.

Dealers said while the economic outlook remains positive, sentiment in the coming sessions may turn bearish amid jitters over the stability of Asian bourses.

"China, in particular, is doing very well but anything that goes up too fast too soon is prone to corrections," said Rommel Macapagal, chairman of Westlink Global Equities.

"The same is true for the local market. We have gone up so steeply, so you can expect investors to be playing it safe for a while before firming up their positions again," he added.

PLDT, the most actively traded stock, added P15 or 0.60 percent to P2,505.

Other gainers include JG Summit Holdings Inc. which rose P0.50 or 4.17 percent to P12.50, SM Prime Holdings Inc. which inched up P0.25 or 2.04 percent to P12.50, and First Gen Corp., up P1.50 or 2.54 percent to P60.50.

Leading decliners was conglomerate Ayala Corp., which shed P15 or 2.88 percent to P505.

Ayala Corp.'s banking arm, Bank of the Philippine Islands, fell P1.50 or 2.14 percent to P68.50, while its property subsidiary, Ayala Land Inc., slipped P0.25 or 1.61 percent to P15.25.

Property developer Megaworld Corp. was down P0.15 or 3.75 percent at P3.85.

Food and beverage conglomerate San Miguel Corp.'s A-shares lost P1.50 or 2.17 percent to P67.50 and its B-shares fell P1.50 or 1.91 percent to P77.

http://services.inquirer.net/express/07/05/26/html_output/xmlhtml/20070525-67940-xml.html