MANILA, Philippines - The stock market ended virtually flat yesterday with the main composite index closing 0.60- point lower at 3,077.18.
Analysts said losses on Monday and Friday sandwiched three straight days of gains for the stock exchange with the main index managing to post a gain of 24.50 points or 0.80 percent for the first trading week of 2010 despite limited leads from abroad, AB Capital Securities said in its online report.
AB Capital Securities said strong selling greeted the market on the first trading day of the year.
‘’However, investors started to pick up on select stocks, both blue chips and speculative issues. Trading activity was below par compared to last year as an average of 1.38 billion shares amounting to P2.32 billion changed hands each day,’’ AB Capital analyst Prince Anthony Yeung said yesterday.
MRC Allied Industries, Inc. stole the spotlight during the week as the stocks was up and down. MRC started the week strong on speculation that Lucio Tan Jr. was buying a huge stake in the company. MRC initially issued a statement denying the rumors but admitted the next day that Lucio Tan Jr. was looking to infuse P3.3 billion worth of assets, which would give him majority control of the listed company. Even before MRC admitted the involvement of Lucio Tan Jr., the stocks had been bought up by investors. The stock reached a 52-week high of P0.88 before retreating on Friday to a close of P0.62, significantly higher than its 2009 closing price of P0.36.
Blue chips that were strong for the week include stocks in PLDT (P2,695), Globe (P95), and San Miguel (P72 )and SMCB P71.50). Despite ongoing negotiations with the National Telecommunications Commission regarding the pulse billing, both telco stocks were stronger throughout the week and helped push the PSEi to its gain.