Profit-taking, dry spell concerns drag down index

MANILA, Philippines - Local share prices went down yesterday on profit-taking with the index dipping anew below the psychological 3,000 level and bucking a slight gain on Wall Street overnight.

The Philippine Stock Exchange index lost 0.62 percent or 21.41 points to 2,978.53.

Analysts also attributed the drop to investor concerns about the effects of a prolonged dry spell on agricultural output.

But analysts expect the composite index to move up in the coming days given positive sentiment abroad.

Trading was also thin on the local front, with 1.05 billion stocks worth P2.32 billion changing hands. Losers beat gainers 68 to 41, while 53 stocks were unchanged.

Mining and oil stocks lost 2.45 percent or 246.97 points to at 9,820.12, while industrial firms went down by 1.44 percent or 66.72 points to 4,550.77.

Service stocks also dropped by 0.52 percent or 7.84 points to 1,490.98, while holding firms slid by 0.16 percent or 2.72 points to 1,707.23. Financial stocks likewise lost 0.16 percent or 0.98 point to 628.14.

Property companies bucked the trend, gaining 0.18 percent or 1.83 points to 1,024.08.

On Wednesday, the Dow Jones industrial average was flat, gained 0.4 percent or 40 points. The S&P 500 index was also steady, adding 0.5 percent or five points, while the NASDAQ composite edged up by 0.6 percent or 12 points.

Meanwhile, oil prices rose above $79 a barrel Thursday as news of stronger regional manufacturing and other upbeat economic reports offset concerns about unemployment.

Benchmark crude for March delivery added $1.73 to settle at $79.06 a barrel on the New York Mercantile Exchange. That’s the highest settlement for oil in more than a month.

Oil prices have been rising this week with further signs of economic growth. One day after the government reported gains in industrial production and home construction, the Philadelphia Federal Reserve said manufacturing is improving. Its manufacturing index rose to 17.6 in February from 15.2 in January. — AP