US home loan woes continue to affect local market
Share prices closed two percent lower yesterday, giving up early gains amid persistent concerns about the impact of
The composite index lost 67.43 points to 3,359.02, its lowest finish since May 10, when it settled at 3,342.21.
The index peaked at 3,467.59 before profit-taking emerged.
The all-share index fell 48.67 points to 2.173.68.
There were 132 decliners and only 14 gainers, while 23 stocks were unchanged.
A total of 5.6 billion shares worth P7.6 billion changed hands.
“The main concern is how serious the subprime mortgage market problem in the
“You can also blame seasonal factors. We have entered the traditionally lean month of August, which means less liquidity in the market,” Rodrigo added.
Gomer Tan of Regina Capital Development Corp. said investors were rattled after the composite index fell below the major support level of 3,400 points about an hour before the market closed.
“There was panic selling shortly after the index fell below 3,400,” he said.
Philippine Long Distance Telephone Co. (PLDT), ended unchanged at P2,520.
San Miguel A fell P1.50 to P68 while its B shares ended 50 centavos lower at P71.
“People are skeptical about Wall Street’s rise last night. They’re selling now, thinking it will be down again tonight,” said Eagle Equities President Joseph Roxas.
Jonathan Ravelas, market strategist at Banco de Oro Universal Bank, said investors took advantage of a technical rebound early in the session to capitalize on their gains from July, when the market hit record highs.
Philippine National Bank was top traded, down 2.5 percent at P57 on heavy volume. Trading on the shares of the country ’s fifth largest bank resumed Wednesday following a recent secondar y offering.
Bank of the Philippine Islands slipped 3.2 percent at P61 while Banco de Oro Universal Bank fell 5.3 percent to P63.— AFP, AP
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