Index declines as market enters consolidation phase

Share prices closed 0.28 percent lower yesterday, continuing to slip back as investors took profits on recent gains, dealers said.

They said the market has entered a consolidation phase, with investors adjusting positions ahead of the Easter holiday break next week.

The composite index shed 6.18 points to 2,189.77 after trading between 2,189.22 and 2,197.27. Volume was 1.13 billion shares worth P939.57 million. Losers beat gainers 55 to 23, with 62 stocks unchanged.

The all-shares index fell 1.65 points to 1,069.36.

While the Easter break is still several days away, "the mood this time of the year is to take cash and stay on the sidelines," said Rommel Macapagal of Westlink Global Equities.

Philippine markets will be closed on April 13 and 14 for the Easter holidays. Trading will resume on April 17.

Accord Capital Equities analyst Lawrence de Leon said that the market was "looking for a more stable base before resuming its upward trek.

"The overall sentiment is still positive," he said.

Bank of the Philippine Islands, the most actively traded stock, was down 50 centavos at P62.

Philippine Long Distance Telephone Co. (PLDT) was steady at P1,925. San Miguel Corp.’s A- and B-shares were unchanged at P60.50 and P81, respectively.

Manila Electric Co. (Meralco) rose on speculation its move to allow power plants other than it suppliers to sell directly to its large customers may boost earnings as electricity use increases.

Equitable PCI Bank fell P2 or 2.7 percent, to P73.

The stock on March 24 rose to its highest close since Feb. 11, 2000, on claims by its third-largest shareholder that an investor wants to buy out the owners of the bank. No formal offer has been made since the shareholder, the Government Service Insurance System, disclosed the information on March 17.

Banco de Oro, which has a standing offer to merge with Equitable PCI, rose P1 or 2.9 percent, to P35, its biggest gain in a month. Banco de Oro, which together with parent SM Investments Corp. owns 34 percent stake of Equitable, has offered to swap 1.6 of its shares for each Equitable share.

Meralco Class A shares, which are reserved for Filipinos, rose 25 centavos, or 1.9 percent, to P13.50. Its Class B shares, which have no ownership restrictions, added 50 centavos, or 2.4 percent, to P21.

The government said over the weekend that it accepted an offer by Meralco to allow its customers who use one megawatt a month to buy their own power, including from state- owned power plants which can sell at cheaper rates. The offer comes ahead of the government’s plan to allow power plants other than Meralco’s suppliers to sell directly to the utility’s customers. – AFP