Index tumbles 12 pts on profit-taking in select issues

Share prices closed 0.55 percent lower yesterday on profit-taking after recent gains took the benchmark index to its highest level in nearly seven years, dealers said.

However, they said the light volumes suggest investors were just taking a breather and may buy back into the market after a brief technical correction.

The composite index fell 12.18 points at 2,195.95 after trading between 2,188.34 and 2,207.99. Volume was 951.26 million shares worth P845.97 million. Losers led gainers 61 to 31, with 50 stocks unchanged.

The all-shares index fell 5.01 points to 1,056.46.

"A number of stocks were already trading near overbought levels and investors took this as a cue to take profits," said Nestor Aguila of DA Market Securities.

"This very healthy correction may extend for one or two more days after which people are expected to buy back into the market," he said.

Sentiment remains positive given the lull in political tensions and upbeat economic and corporate prospects, Aguila said.

However, they also see caution ahead of the US Federal Reserve meeting Tuesday when another quarter point hike in interest rates to 4.75 percent is expected. The key issue will be any hint on the prospect for more increases.

Philippine Long Distance Telephone Co. Inc., the most actively traded stock, ended steady at P1,880.

Conglomerate Ayala Corp. was down P2.50 at P362.50 while unit Bank of the Philippine Islands fell P1 to P62.50.

Empire East Land Holdings Inc., which will become part of the key index starting April 3, advanced four centavos to 69 centavos.

Food and beverage firm San Miguel Corp.’s A shares were steady at P60.50 but its B shares rose 50 centavos to P82.

Stocks also declined after Standard & Poor’s warned that continued postponements of the sale of the nation’s power assets may prevent the country from getting a better debt rating or outlook.

Ayala Corp., owner of the nation’s biggest developer and No. 2 banking and phone companies, fell P2.50, or 0.7 percent, to P362.50. Filinvest Land Inc., the nation’s biggest builder of low-cost homes, fell six centavos, or 4.4 percent, to P1.30.

Agost Benard, a Standard & Poor’s analyst, said on Saturday that a failure to sell state-owned power generation and transmission assets would "somehow hamper any potential credit or outlook upgrade."

The S&P statement "is a good excuse for investors to take a break from the market," said Mark Canizares, analyst at Manila-based CitisecOnline. "The market was looking forward to an improvement in the nation’s debt rating this year." – AFP