Shares retreat 39 pts on another selling spree

The market index dropped to an 18-month low yesterday, triggered by a selling spree in most of the blue-chip issues as investors remain cautious ahead of an impending interest rate hike in the US.

The 30-company composite index plunged by 39.34 points or 2.4 percent to end at 1553.34, as all counters; commercial-industrial, oil banks and financial services, mining and property retreated.

Setting aside the P8.725-billion block sale of over 71 million Bank of Philippine Islands (BPI) shares bought by the Development Bank of Singapore (DBS), total paper trade thinned down once more below the P300-million level -- considered as a critical benchmark.

As this developed the PSE had warned of a further fall in the stockmarket due to a new SEC policy that requires brokers and investors to put up deposits as collateral when their stock purchases fall in price.

Declining issues swamped gainers, 84 to 14, while 34 issues were unchanged.

With no hard push coming from speculative stocks, the market's attention was focused on solid stocks such as PLDT, San Miguel, ABS-CBN, Metrobank, Meralco, Globe, SM Prime and BPI all of which succumbed to lower prices.

Third-tier stock Dizon Copper-Silver Mines Inc. was the most actively moving stock, gaining 50 percent yesterday after leading the losers with a 33-percent decline the previous day. DCSMI corporate secretary Francis Gustillo explained this may have been caused by the declaration of a bank holiday by Urban Bank where they own an eight-percent equity.

"The management of DCMSI assures the Exchange and the investing public that the Urban Bank incident is just a minor debacle andDCSMI continues to be stable and in good financial position," he said. DCSMI shares closed higher at P7.50 yesterday.

Air Philippine International Corp. also moved up 12.5 percent to 45 centavos on news that the Gatchalian group has decided to pull out its 25-percent equity investment in the Lucio Tan-controlled Air Philippines, the country's second largest air carrier.

First Abacus Financial Holdings Corp. led the losers, falling down 40 percent to 39 centavos although it's management wrote the PSE that it was not aware of any information that may have affected the value and trading of FAF securities.

Manila Jockey Club shed off 15 percent to P856 following its stockholders meeting finalizing the increase in its corporate stock from P100 million to P1 billion. The capital infusion will be used for the purchase of a computer totalizator system and the construction of a nationwide off-track betting stations farmed out toAutralian Gaming and Wagering Pty. Ltd. and TAB Philippines Inc. respectively.