Shares close 0.7 percent lower due to Wall Street's weakness

MANILA (AFP) - Philippine share prices closed 0.7 percent lower Friday as Wall Street's weakness prompted investors to lock in recent gains ahead of a long weekend, dealers said.

The composite index gave up 22.21 points to 3,206.94, off the day's low of 3,199.78.

Philippine financial markets will be closed on Monday for a public holiday.

The broader all-share index fell 12.08 points to 2,052.44.

Out of 161 stocks traded, 81 declined, 34 advanced, while 46 stocks ended flat. A total of 1.7 billion shares worth 3.5 billion pesos (74.88 million dollars) changed hands.

"Just when calm is coming back into the market, investor confidence dipped again," said Ron Rodrigo of Unicapital Securities.

He said comments made by the head of Countrywide Financial, the largest mortgage lender in the United States, that a housing slump could trigger a recession in the world's biggest economy, revived investor jitters.

"It just shows that we have to proceed with caution, we are not yet out of the woods," said Rodrigo.

"Recent initiatives by subprime companies to clean up their act, along with the support of central banks were taken positively by the market," said Lawrence de Leon of Accord Capital Equities.

"But it doesn't mean that the problems have been swept away in just one go," he added.

The day's biggest decliners include Ayala Corp. which lost 7.50 pesos to 450.

Its lending arm, Bank of the Philippine Islands, slipped two pesos to 58.

SM Investments gave up five pesos to 347.50.

Philippine Long Distance Telephone shed five pesos to 2,540 pesos.

San Miguel shares rose 50 centavos each after the food and beverage firm announced plans to expand brewing in Vietnam and possibly venture into Cambodia.

San Miguel A ended at 62.50 pesos while San Miguel B finished at 64 pesos.

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