Phl shares end flat as concern over US debt woes lingers

MANILA, Philippines(Xinhua) - The Philippine stock market fell short of closing at the 6,400 level despite the buying that marked the last minutes of the trading.

The bellwether Philippine stock market gained 0.04 percent or 2. 83 points to close at 6,390.48 today, while the broader all- share index rose by 0.31 percent or 12.04 points to 3,854.36.

Trading volume reached 1.88 billion shares worth P8.34 billion ($193.23 million) with 75 stocks advancing, 59 declining, and 53 were unchanged.

Of the six counters, only the industrial and the services sectors bucked the trend.

"The composite index showed it can easily regain the 6,300 handle, even making an attempt at 6,400 absent fears over external events," analyst Justino Calaycay of Accord Capital Equities Corp. said.

The optimism, he said, came from the fact that the Philippines is undoubtedly in good shape after its recent credit rating upgrades. The drop in share prices, Calaycay said, has opened the door for buying opportunities, particularly as the country head into the second quarter earnings cycle.

"The latest issue that now hold sentiments hostage is the shutdown of the US government and, more importantly, the prospect of a default by the world's largest economy on its obligations if legislators fails to rise above partisanship and craft an extension of the debt ceiling," Calaycay said.

The US government has until October 17, to do so and the index has already lost nearly 5 percent of its value since this issue started to grab financial headlines although it has already recovered 3.2 percent of what it lost.

"After Oct. 17, there is another Federal Reserve meeting on October 29 and 30 that could potentially lend yet another round of volatility to the markets," Calaycay said.

Stocks in the 30-company index closed mixed. Among those sold down were Universal Robina Corp., Ayala Corp., and SM Investments Corp.