Bourse slides on profit-taking

MANILA, Philippines (Xinhua) - Lacking incentive to entice more investors to place their money in the stock market, the local equities closed today's session in the negative.

The bellwether Philippine Stock Exchange index lost 0.05 percent or 3.15 points to 6,343.25, while the broader all-share index retreated by 0.11 percent or 4.14 points to 3,864.86.

Trading volume reached 539 million shares worth P6.52 billion ($149.76 million) with 74 stocks declining, 61 advancing and 50 were unchanged.

Of the six counters, only the holding firm sector bucked the trend.

"Although buyers have surfaced in time to stave off a drop below 6,200 last week, lifting the equities remains heavy as rallies are soon enough capped by profit-taking," analyst Justino Calaycay of Accord Capital Equities Corp. said.

The analyst said not even the positive outcome of trading sessions in neighboring Asian countries and China's decision to implement broad-based reforms could prevent profit-taking among investors.

"Local shares joined the cheer but continued to meet stiff resistance from sellers, capping the advance and even threatening to send the measure back in the red. Deep into the afternoon session, the bulls finally caved in to the pressure, allowing the bears to take the day," Calaycay said.

The composite index in fact went up to as high as 6,386.62 or 40 points higher from Friday's close before profit takers dominated the session. The bellwether touched an intra-day low of 6,324.24 on Monday.

In the meantime, Calaycay said investors will closely monitor the pronouncements of the United States Federal Reserve for the stimulus program.

"Markets will be listening closely for hints on QE3 moving forward," he said.

Stocks in the 30-company index closed mixed. Among those that rallied were Ayala Land, Inc., the Bank of Philippine Islands and Ayala Corp.