Shares close 0.10 percent lower due to fears over US subprime

MANILA (AFP) - Philippine share prices closed 0.10 percent lower on Tuesday amid continuing concerns over US subprime mortgages which have raised fears of a credit crunch in the financial markets, dealers said.

They said the index initially gained 17.1 points in early trading but this was later reversed amid concerns about the magnitude of the subprime problem.

The composite index fell 3.47 points to 3,263.56 after trading between 3,284.13 to 3,257.36 points.

The all-share index fell 9.20 points to 2,088.15.

There were 85 decliners and 34 gainers, while 52 stocks were unchanged on volume of 2.2 billion shares worth 3.3 billion pesos (72.3 million dollars).

The local currency traded at 45.643 to the dollar.

"A lot of investors are just sitting on the bench and awaiting new developments in major markets. Clearly the nervousness is still there, despite the concerted moves by major central banks to inject more liquidity into their banking systems," said Lawrence de Leon of Accord Capital Equities.

"But there are signs that the selling pressure has begun to taper off and we expect buying support to emerge again at 3,200 points," he said.

Banking stocks were a key drag, with shares in Metropolitan Bank and Trust, the nation's biggest lender by assets, down 2.50 pesos to 55.50.

Bank of the Philippine Islands fell 50 centavos to 60.50 pesos and Banco de Oro retreated two pesos to 56 pesos.

Bucking the trend in the broader market, Ayala Corp. rose 7.50 pesos to 457.50. The conglomerate said Monday its first-half net profit rose 57 percent from a year earlier to 11.5 billion pesos, helped by strong gains in its core businesses such as banking, telecommunications and property.

Globe Telecom jumped 50 to 1,350 after Globe president Gerardo Ablaza said Monday the company has raised its capital expenditure budget for this year to 400 million dollars from 350 million dollars.
Philippine Long Distance Telephone rose 10 to 2,580.

San Miguel saw its A and B shares remain unchanged at 68 and 70 respectively.