Profit-taking, Wall St losses drag down market

Share prices closed 0.24 percent lower yesterday as investors continued to take profit on recent gains following Wall Street’s losses overnight and indications US interest rates will rise further, dealers said.

The composite index shed 5.21 points to 2,181.58. It moved between 2,174.67 and 2,190.43.

The broader all-shares index fell 6.61 points to 1,057.65.

Losers outnumbered gainers 53 to 32, and 46 stocks closed flat.

Volume was 1.512 billion shares worth P1.191 billion.

Citiseconline analyst Mark Alan Canizares said he considers prices of some blue chips still expensive following sharp gains last week, although others that have fallen in the past two sessions have started to recover.

"But the overall trend of the market is still up. These are just normal corrections along the way," Canizares said.

Online brokerage firm 2TradeAsia.com said indications from the Federal Reserve that it would further tighten rates in the months ahead weighed on investor sentiment because this may eventually prompt the Philippine central bank to follow suit.

But for now, with inflation likely to ease in the second half and the peso still strong, Bangko Sentral ng Pilipinas (BSP) Amando Tetangco Jr. said he did not see any compelling reason to hike interest rates despite the Fed’s quarter-percentage point increase.

The central bank has left its benchmark overnight interest rates unchanged for the fifth straight month in March, after raising them by a total of 75 basis points last year. It will hold its next policy meeting on April 6.

Philippine Long Distance Telephone Co. (PLDT), the most actively traded stock, closed down P10 to P1,890.

Bank of the Philippine Islands gained 50 centavos to P62.50 after retreating in the past two days. Its parent Ayala Corp. added P2.50 to 355 while sister company Ayala Land Inc. was steady at P10.75.

Metro Pacific Corp. fell seven centavos to 28 centavos when it resumed trading after a one-day suspension, with sentiment on the stock hurt by the company’s restructuring plan, dealers said.

The company said it will implement a reorganization and recapitalization plan that involves the creation of a new company, the delisting of Metro Pacific from the stock exchange and a rights issue to raise fresh capital.

Manila Electric Co. A shares, exclusive to Filipino investors, closed flat at P13 while Meralco B, open to foreigners, gained 50 centavos to P20.

San Miguel A shares were steady at P60.50, and San Miguel B unchanged at P81.50. – AFP