Index retreats 28.85 pts on across-the-board selling

Share prices closed 1.34 percent lower yesterday on across-the-board selling prompted by a fresh spike in oil prices and Wall Street’s losses overnight, dealers said.

Massive losses in Tokyo generally unsettled the region, with investors there anxious about a probe into Internet company Livedoor.

The composite index gave up 28.85 points to 2,125.45 after trading between 2,117.61 and 2,154.30. Turnover was 2.68 billion shares worth P2.34 billion, about of a third of which were sold in cross transactions.

The all-shares index fell 19.28 points to 999.76.

Losers led gainers 57 to 21, with 52 stocks unchanged.

Dealers said the escape from military prison overnight Tuesday of four officers on trial for a failed 2003 military mutiny also unnerved investors.

"We’ve moved alongside other markets in Asia, which have turned negative as they tracked Wall Street’s weakness overnight," said Mark Alan Canizares of Citiseconline.com.

US stocks slumped overnight Tuesday on a fresh spike in oil prices to their highest level since late September and after disappointing results from Intel and IBM.

Dealers also noted that many key local companies with large capitalizations have reached overly rich valuations following the market’s rally to a 10-month high last week, leaving them ripe for correction.

"Today’s pullback is more of a correction. The index needs to consolidate before testing the (recent high of) 2,172," said Gomer Tan of Regina Capital Development.

Tan said a renewed spike in oil prices to September levels has re-ignited worries about higher inflation and consequently lower consumer spending.

Philippine Long Distance Telephone led decliners, ending down P45 to P1,805. Rival Globe Telecom was top-traded, down P20 to P730.

Bank of the Philippine Islands fell P2 to P56.50 while Metropolitan Bank and Trust lost P1 to P32.

Ayala Corp. declined P10 to 327.50, while unit Ayala Land was steady at P10.25.

San Miguel A and B shares were both unchanged at P64 and P87.50 respectively.

Massive losses in Tokyo generally unsettled the region, with investors there anxious about a probe into Internet company Livedoor. – AFP