Market continues to drop on security concerns, rising oil prices

Share prices closed 0.43 percent yesterday as domestic security concerns, rising crude oil prices and a weaker Wall Street drove investors out of the local market, dealers said.

They said rumors of a plot against the government continue to circulate, and dealers expect the political noise to intensify as the country marks the 20th anniversary of the bloodless revolt that toppled Ferdinand Marcos.

The composite index dropped 8.93 points to 2,067.88, after trading between 2,060.78 and 2,076.81. Turnover was 436.69 million shares worth P1.21 billion ($23.4 million).

However, gainers outnumbered losers 44 to 36, while 54 stocks were unchanged.

The all-shares index fell 0.35 point to 996.44.

"Everybody seems to have taken a cautious stance. Lingering political and security concerns have cooled down the market," said Jonathan Ravelas of Banco de Oro.

On-line brokerage 2TradeAsia.com said Filipino and institutional investors are keeping a close eye on political developments here and on trends in oil prices and the US markets.

Overnight, oil prices rose on concern that more violence in Nigeria will further reduce supply, while share prices on Wall Street ended lower.

Top-traded Bank of the Philippine Islands fell 50 centavos to P58.50.

Philippine Long Distance Telephone fell P10 to P1,745.

SM Investments was up P2 to P215 while unit SM Prime Holdings gained 10 centavos to P7.

Ayala Land was down 25 centavos to P10.50, while parent Ayala Corp fell P2.50 to P330.

San Miguel A-shares, limited to Filipino investors, fell a peso to P60. San Miguel B-shares, available to Filipinos and foreigners alike, retreated P1.50 to P79.50.

Equitable, the nation’s third-largest lender by assets, yesterday elected Corazon de la Paz as its new chairman, replacing Ferdinand Romualdez. De La Paz runs a state-pension fund that owns 29 percent of Equitable and is expected to be more amenable to Banco de Oro’s offer to combine with Equitable.

Banco de Oro fell P1, or 2.9 percent, to P34, its first decline in five days. Equitable, which is partly owned by Banco de Oro, rose 50 centavos, or 0.8 percent, to P64.50 rebounding from a loss of as much as 0.8 percent.

"The shareholders want a higher price for their Equitable shares,’’ said April Lee-Tan, head of research at Citiseconline.com in Manila. She said there is concern among Banco de Oro shareholders that the lender may agree to a higher price. – AFP