Index tumbles 38 pts on Dow’s sharp retreat overnight

Share prices closed 1.36 percent lower yesterday with Wall Street’s sharp retreat overnight providing an excuse to take profits, dealers said.

However, they said the market’s decline was healthy and buyers could resurface should the gross domestic product (GDP) data for the three months to September, due out Wednesday, spring a positive surprise.

The composite index fell 38.42 points to 2,779.14, after moving between 2,758.78 and 2,812.14.

The broader all-share index fell 21.68 points to 1,738.20.

Losers overwhelmed gainers 85 to 18 with 51 unchanged. Turnover totalled 2.23 billion shares worth P2.58 billion.

"It’s just a normal correction that provides investors with a fresh buying opportunity," Ron Rodrigo of Unicapital Securities said.

"Any positive surprises from tomorrow’s GDP report may encourage bargain-hunters to come in."

Dennis Arroyo, director for planning and policy at the government’s economic planning ministry, said last week that annual economic growth for the third quarter was likely to come in at between 5.2 and 5.8 percent, supported by better farm output.

He added that the economy would likely sustain the growth momentum in the last three months of the year amid strong exports and brisk remittances from Filipinos working abroad which fuel domestic demand.

Rodrigo said the market may see further corrections along the way.

"But we’re optimistic that the market will continue to be on the upside and we expect another push before the year ends given the bullish outlook for the economy," he added.

Among the day’s losers include property developer Megaworld, the most actively traded stock, which fell six centavos to P2.06.

Philippine Long Distance Telephone Co. (PLDT) was down P60 to P2,445.

San Miguel A was unchanged at P65, but its B shares fell 50 centavos to P74.

International Container Terminal Services Inc., the country’s largest non-government owned port operator, declined 50 centavos, or 2.5 percent, to P19.25. SM Prime Holdings Inc., fell 20 centavos, or two percent, to P9.70.

Yesterday’s loss cut the country’s main stock index rise this year to 33 percent, the third-largest gainer in Southeast Asia. "The pullback yesterday may just be what the doctor ordered considering how far share prices have gone up already," Jonathan Ravelas, strategist at Banco de Oro, said. ``The market is a bit stretched.’’

Benpres Holdings Corp. fell two centavos, or 1.1 percent, to P1.80 after the company said it intends to transfer its 49-percent stake in First Philippine Infrastructure Development Corp. to City Resources Philippines Corp. – AFP