Index ends slightly up as market consolidates

Share prices closed 0.1 percent higher yesterday as the market consolidated with bargain-hunters snapping up small capitalized stocks, dealers said.

They said that after steady gains took the market to nine-year highs, it was only natural for investors to pause for breath and there is nothing to suggest any change in the strong underlying sentiment.

The composite index added 3.28 points at 2,817.84 after trading between 2,805.42 and 2,822.42.

The broader all-shares index gained 5.5 points at 1,759.49.

Gainers outnumbered losers 70 to 40 with 49 stocks unchanged.

Volume was 4.6 billion shares worth P3 billion.

"The market is going through a healthy correction mode," said Astro del Castillo of First Grade Holdings Inc.

Del Castillo said second- and third-liners were the main focus as investors were reluctant to buy blue chips which they still consider overbought after recent sharp gains.

"Foreign funds were hardly there. They were probably waiting for more positive news," said Joseph Roxas of Eagle Equities Inc.

"But we will soon be on their radar screens again. We haven’t hit our all-time high yet and being the laggard in the region, there is still room to catch up," Roxas said.

The day’s winners include Magnum Holdings which jumped P1.25 to P3.75.

Among blue chips, Philippine Long Distance Telephone Co. (PLDT) fell P10 to P2,500 while top-traded Metropolitan Bank and Trust Co. was down 50 centavos at P49.

Property developer Ayala Land was steady at P14.50.

San Miguel Corp.’s A-shares ended flat at P65 while its B-shares rose 50 centavos to P74.

The food and beverage giant said it is still in negotiations to sell its entire 65-percent stake in the local bottler of Coca-Cola to the Coca-Cola Co. of the United States despite newspaper reports saying the deal has been finalized.

"This is a good thing because they’re following their program and equity holders are not being made to pay for it,’’ said Jose Antonio Alitagtag, an analyst at Philippine Equity Partners Inc. in Manila. "Creditors look happy to lend. They have achievements to show, they’ve done a lot since 1997,’’ when they won the concession.

Manila Water’s parent, Ayala Corp., rose P5, or one percent, to P492.50.

Class B shares of San Miguel Corp., which allow overseas investors to invest in the country’s biggest food and beverage company, rose 50 centavos, or 0.7 percent, to P74. – AFP