Index ends virtually flat due to bargain-hunting

Share prices closed virtually flat yesterday in mixed trade, finishing the week on a steadier note, dealers said.

They said sentiment was mixed, with investors nervous about the latest political developments but at the same time bullish about the long-term prospects for the economy and the government’s fiscal performance.

The composite index slipped 0.83 points to 2,108.25 after trading between 2,101.57 and 2,112.79. Volume was 3.13 billion shares worth P1.13 billion.

However, gainers beat losers 47 to 27, with 49 stocks unchanged.

The all-shares index fell 1.31 points to 995.54.

"The political noise, rumors about new attempts to destabilize the government and the spikes in oil prices this week somehow affected investor sentiment," said Astro del Castillo of First Grade Holdings.

"But most analysts are maintaining their positive outlook on the economy," said Del Castillo.

There have been fears of a new destabilization plot against President Arroyo after the escape from a military prison Tuesday of four officers accused of taking part in a short-lived mutiny against her in 2003.

However, the bargain-hunting could also be an indication that some investors are positioning themselves before the release of 2005 corporate results, Del Castillo added.

"Investors expect a generally strong set of 2005 earnings reports and are also positive about earnings prospects this year," he said.

Philippine Long Distance Telephone Co. (PLDT) was the most actively traded stock, closing P15 lower at P1,785.

Bank of the Philippine Islands fell 50 centavos to P55.50, while Metropolitan Bank and Trust was down P1 at P30. First Philippine Holdings rose P1 to P53.

San Miguel A shares rose 50 centavos to P64, while its B shares were steady at P87.50.

"The fact that we closed flat indicates support at this level is strong, and that the market may be able to thwart more selling pressure next week," said PCCI Securities President Francisco Liboro. "The market is taking all the negative noise in stride. Investors are trading based on what they’re hearing, but, there are still good stories in the market."

The most actively traded issues were PLDT, which lost 0.8 percent to P1,785, Bank of the Philippine Islands, down 0.9 percent at P55.50, and Metropolitan Bank, off 3.2 percent at P30.

Offsetting the losses was bargain hunting in Globe Telecom, up 2.1 percent at P740, and First Holdings, higher by 1.9 percent at P53. – AFP, AP