Market declines for 3rd day on typhoon impact

Shares slid for a third day yesterday on lingering concerns over the economic costs wrought by last week’s typhoon.

The benchmark 30-company Philippine Stock Exchange Index fell 35.68 points at 2,486.82, bringing the total index loss to 2.7 percent since Monday. The index dropped 0.8 percent Tuesday.

Philippine Long Distance Telephone Co. (PLDT) was the most actively traded stock, down 2.3 percent at P2,165 following the one-percent loss in the company’s American depository receipts in New York overnight.

Food company Universal Robina rose 7.9 percent at P20.50 on gains from a secondary stock offer of property concern Robinsons Land, which includes shares held by Robina.

Wealth Securities said the devastation from typhoon Milenyo, which hit the northern Philippines on Thursday, should not define the long-term outlook of badly hit Philippine companies, including utility and telecommunication firms.

Lepanto Consolidated Mining Co. and Philex Mining Corp., the nation’s biggest gold and copper producers, fell as copper tumbled to a three-month low.

"The market went up so fast that some investors are selling because they’re happy with their gains," said Marvin Fausto, who helps manage about $1.8 billion at Equitable PCI Bank in Manila. The index "is where it should be at the end of the year," he said.

Bank of the Philippine Islands, its second biggest lender by assets, declined P1.50, or 2.5 percent, to P57.50. Its shares rose 21 percent in the three months to Sept. 30.

"Most front-liners had significant run-ups," said Lamberto Santos, chairman of AB Capital Securities Inc. in Manila. Investors "want to protect their gains."

Lepanto declined one centavo, or 4.2 percent, to 23 centavos. Philex dropped 15 centavos, or 4.1 percent, to P3.55. Copper slid 2.4 percent yesterday on the London Metal Exchange. It slumped 4.3 percent in New York, the most since Aug. 11.

"Investors took profits given apprehensions about the economic impact of the recent typhoon, and possibly because they want to raise money for those public offerings," Summit Securities president Harry Liu said.

Manila Mining Corp. has extended its stock rights offer by two days up to Friday because of the shortened trading week last week triggered by the bad weather and power outages.

Property firm Robinsons Land Corp will list tomorrow an additional 450 million common shares following its public offering to international and local investors.

Liu sees the market’s next support level at 2,450 points. – AP