Index eases 35 pts as market continues to consolidate

Share prices closed 1.14 percent lower yesterday as the market consolidated amid persistent concerns over the outlook for global equity markets after the past week’s turmoil, dealers said.

Investors also took a step back and opted to wait for the outcome of the central bank’s policy meeting later in the day.

Most expect the monetary authorities to trim the key overnight rate by 25 basis points after last month’s inflation data came in much lower than expected.

The composite index fell 34.89 points to 3,028.37, after trading between 3,017.31 and 3,063.72.

The broader all-share index declined 12.54 points to 1,950.96.

Losers outnumbered gainers 77 to 32 with 44 stocks unchanged.

Turnover was 9.9 billion shares worth P4 billion.

Dealers said while there was a big bounce on Wednesday, investors were still struggling to make sense of last week’s global equity meltdown and are mostly looking at leads from Wall Street which slipped overnight Wednesday.

"The market is in a consolidation phase but investors have not completely got over the psychological trauma of last week," said Grace Cerdenia of online brokerage firm 2TradeAsia.

"There is really no other variable to alter the fundamentals; it is mostly external factors that are affecting the market’s behavior that’s why some fund managers are also now going back to the books and looking at valuations," Cerdenia added.

"I think most investors are just waiting for the dust to settle before positioning again," said Jasper Jimenez of BDO Securities Corp.

"The market will retest the 2,900 level. It has to find a strong support level where it could consolidate anew and eventually go up from there," he added.

Top-traded Philippine Long Distance Telephone Co. (PLDT) lost P70 to P2,300.

Ayala Corp. shed P5 to P550 while its property arm Ayala Land fell 25 centavos to P15.75.

Manila Electric A shares rose P2.50 to P67.50 and its B shares gained P2 to P68.

San Miguel A was steady at P62.50 while its B shares were down P1.50 at P70.

"Philippine stocks are already expensive compared with those in other Asian markets," James Lago of Westlink Global Equities said. "Foreign funds are probably moving their money to other markets that are cheaper." — AFP