Market succumbs to negative news at home and abroad

Share prices declined for a second session yesterday as the market succumbed to the pressure of bad news at home and overseas.

The benchmark 30-company Philippine Stock Exchange Index fell 16.37 points, or 0.8 percent, to 2,109.08, adding to Wednesday’s 1.3 percent loss.

"Investors are taking their cue from US markets. And of course, the fact that oil prices have gone up dampened market sentiment as well," said BPI Securities senior manager Roberto Cano.

On Wednesday, the Dow Jones Industrial Average lost 0.4 percent, while the Nasdaq Composite Index retreated one percent.

Political and security concerns also may have played a role in the market’s retreat, traders said.

On Tuesday, four jailed leaders of a 2003 mutiny escaped from an army camp in Manila, fanning rumors of a possible coup. This came shortly after the political opposition announced it will revive the impeachment case filed last year against President Arroyo.

Weighing on the index were blue chips Philippine Long Distance Telephone Co., off 0.3 percent at P1,800, in step with the 1.4 percent loss suffered by the company’s American depositary receipts in New York Wednesday.

Cement maker Holcim was down 4.4 percent at P4.35, following P29.16 million worth of cross sales.

Several stocks managed to outperform the market, among them, Paxys, which climbed 5.8 percent to 7.30 pesos on strong earnings prospects for the country’s only listed call center operator.

Company Director Manuel Lozano said Wednesday that Paxys met, and may even have exceeded, its net profit target for 2005 of P270 million to P300 million.

All sectoral indicators retreated. Decliners led gainers 47 to 27, while 57 stocks were unchanged.

"The rising geo-political risks in Iran and Nigeria have put pressure on oil prices, raising concerns that inflation might escalate again," said Jonathan Ravelas of Banco de Oro Universal Bank.

"Recent negative developments have triggered nervousness among market players and they came at a time when the market was due for a correction," said Lawrence de Leon of Accord Capital Equities.

Equitable PCI Bank led the decline, ending down P2.50 at P62.

Top-traded Banco de Oro ended steady at P36.

Globe Telecom retreated P5 to P725.

San Miguel A shares, limited to Filipino investors, were down 50 centavos at P63.50 while San Miguel B shares, available to Filipino and foreign investors alike, ended unchanged at P87.50. – AP, AFP