Index dips as profit-taking in PLDT offsets gains in other stocks

Share prices closed little changed Friday as profit-taking in market leader Philippine Long Distance Telephone Co. (PLDT) offset gains in other stocks, dealers said.

The market moved without any clear direction in the absence of fresh leads and because of prevailing political uncertainties, they said.

The composite index fell 1.87 points to 1,953.14 after trading between 1,950.97 and 1,959.71. Volume was 330.5 million shares worth P1.52 billion.

The all-shares index fell 0.55 points to 1,184.28.

Market breadth was positive with 35 gainers against 26 losers and 51 stocks unchanged.

"The market is still being hounded by the country’s political problems," said Astro del Castillo of First Grade Holdings.

He was referring to President Gloria Arroyo’s continuing struggle with opposition forces who are seeking to oust her on allegations of election fraud and other supposed anomalies.

Ayala Land, the most actively traded stock, closed up 20 centavos at P8.90. Parent company Ayala Corp. rose P7.50 to P292.50.

PLDT retreated P20 to P1,680 after its New York-listed shares fell overnight.

San Miguel’s A shares, exclusive to Filipinos, were steady at P65 but its B shares, which are available to all investors, rose 50 centavos to P91.50.

Bacnotan Consolidated Industries Inc, another briskly traded stock today, surged 0.40 centavos or 4.21 percent to P9.90, backed by cross transactions.

First Philippine Holdings Corp. advanced P2.50 to P44, but SM Investments Inc. fell P2 to P216.

First Grade’s del Castillo said there may be a fresh wave of buying next week as investors snap up shares ahead of third-quarter results. "I think there will more positioning next week since the earnings reporting season is just around the corner, and given indications that some of the big companies were able to sustain earnings growth."

"There’s really no hurry for investors to buy up the market. In the past sessions, investors just slowly accumulated stocks, probably ahead of third quarter corporate results, and possibly on hopes of a year-end rally and the implementation of the expanded value added tax law," said Westlink Global Equities Chairman Rommel Macapagal.

Macapagal said opposition calls for President Arroyo to step down also have sidelined investors.

Mrs. Arroyo’s opponents have been staging daily rallies demanding her resignation on vote-rigging and corruption allegations. – AFP, AP