Index dips after Wall St’s lackluster performance

Share prices closed 0.3 percent lower yesterday as investors locked in gains after Wall Street’s lackluster performance overnight, dealers said.

They said gains in index leader Philippine Long Distance Telephone Co. (PLDT) and mining stocks trimmed losses in the broader market.

The composite index finished down 9.40 points at 3,672.22 off a low of 3,658.41. Volume amounted to 6.8 billion shares worth P4.6 billion.

There were 63 decliners and 50 advancers, while 42 stocks were flat.

The broader all-share index fell 10.83 points to 2,248.02.

The local currency was trading at 43.068 to the dollar.

“We saw a lot of play in mining and oil stocks but there was no clear trend in the blue chips. Investors took a cautious stance ahead of the central bank’s meeting,” said Nestor Aguila of DA Market Securities.

The Bangko Sentral ng Pilipinas (BSP) is largely expected to trim its benchmark rates by 25 basis points later Thursday, the third time it would reduce rates this year, with economists hoping the move will temper the peso’s continued appreciation against the greenback.

“Another rate cut might boost investor confidence but the movement of overseas markets will remain as the major catalyst,” said Claire Quiray of Accord Capital Equities.

Wall Street ended a choppy session in negative territory Wednesday as investors continued to worry about the credit crisis and rising oil prices.

Investors were discouraged by news that HSBC Holdings may need to write down a further $3.4 billion from its US business during the three months to September because of exposure to subprime loans, after writing down billions earlier in the year.

Splash Corp., maker of personal care products, which made an initial public offering at a price of P8.98, failed to stir enthusiasm with trading as low as P8.40 before closing at P8.50.

Mining sector leader Philex Mining rose 20 centavos to P10.

PLDT, the nation’s biggest company by market value, rose P20 to P3,050, tracking gains in its New York-traded American Depositary Receipts.

Ayala Land was down 50 centavos at P16 while Bank of the Philippine Islands fell P1.50 to P66.50.

Food and beverage group San Miguel’s A-shares rose 50 centavos to P53 but its B-shares were steady at P54. — AFP