(UPDATE) Stocks close lower on limited optimism

MANILA, Philippines (Xinhua) - Shares closed 0.03 percent lower today after investors booked the gains they made the past days.

The benchmark Philippine Stock Exchange index lost 1.91 points to 7,204.11, although the all-share index managed to buck the trend by adding 3.9 points or 0.09 percent to 4,256.89.

Trading volume reached 1.75 billion shares worth P11.77 billion ($269.8 million).

There were 76 gainers, 99 losers while 52 stocks closed flat.

"The prospects of a ceasefire in Ukraine temporarily takes off the table one risk factor that has bothered markets for quite some time," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

Calaycay, however, pointed out that the failure of the U.S. stocks to hold on to gains which pushed it to fresh record highs left investors with lesser reasons to keep buying local stocks.

While August inflation provided another leg for the market to stand on, profit-taking however took precedence, snapping the PSEi 's three-day run, he said.

Fortunately for the Philippine market, he said, the underlying macro-fundamentals remain strong and if investors opt to focus on this, all will be well.

"Of course, lingering fears of an oncoming correction may limit optimism over the short-term, but optimism won't be going away for long," he said.

Stocks in the 30-company index closed mixed. Investors bought heavyweight Philippine Long Distance Telephone Co., Alliance Global Group, Inc., and Security Bank, Corp. but sold down Metropolitan Bank and Trust Co., SM Investments Corp. and Meagworld Corp.