Shares close 2.0 percent lower due to US home loan concerns

MANILA (AFP) - Philippine share prices closed 2.0 lower Thursday, giving up early gains amid persistent concerns about the impact of US home loan problems on the global credit market, dealers said.

The composite index lost 67.43 points to 3,359.02, its lowest finish since May 10, when it settled at 3,342.21.

The index peaked at 3,467.59 before profit-taking emerged.

The all-share index fell 48.67 points to 2.173.68.

There were 132 decliners and only 14 gainers, while 23 stocks were unchanged.

A total of 5.6 billion shares worth 7.6 billion pesos (166.26 million dollars) changed hands.

"The main concern is how serious the subprime mortgage market problem in the US is, and the domino effect it might have on other markets," said Ron Rodrigo of Unicapital Securities.

"You can also blame seasonal factors. We have entered the traditionally lean month of August, which means less liquidity in the market," Rodrigo added.

Gomer Tan of Regina Capital Development Corp. said investors were rattled after the composite index fell below the major support level of 3,400 points about an hour before the market closed.

"There was panic selling shortly after the index fell below 3,400," he said.

Philippine Long Distance Telephone, or PLDT, ended unchanged at 2,520 pesos.

Philippine National Bank, the most actively traded stock, fell 1.50 to 57.50.

Ayala Land dropped 75 centavos to 15.75 pesos, and parent Ayala Corp. was down 15 pesos to 500.

San Miguel A fell 1.50 to 68 while its B shares ended 50 centavos lower at 71 pesos.