Index edges up as market consolidates on bargain hunting

Share prices closed little changed yesterday as the market consolidated with some light bargain hunting in blue chips offset by declines in the broader market, dealers said.

They said the market would consolidate, after recent volatility that saw the main index rising to its highest point in nearly seven years early this month, and then falling sharply last week to where it was before the rally.

The composite index ended up 1.96 points at 2,357.98 after trading between 2,352.41 and 2,360.38, on volume of 6.39 billion shares worth P1.47 billion.

Losers outnumbered gainers 77 to 25, while 39 stocks were unchanged.

The broader all-shares index gained 1.20 points at 1,469.57.

"It is tempting for bargain-hunters to come out at this point. But we don’t expect buying to turn aggressive right away," said Astro del Castillo of First Grade Holdings Inc.

The prospect of further increases in US interest rates have prompted foreign fund managers to re-align their portfolios in favor of more dollar-denominated assets, consequently weighing on the peso and prompting the interest rates on government securities to rise.

Dealers said this has also led to worries that local interest rates would eventually rise, in turn dampening domestic consumption and economic growth.

Philippine Long Distance Telephone Co. was top-traded, ending P35 at P2,020.

Rival Globe Telecom fell P5 to P915, erasing gains it had made earlier.

International Container Terminal Services advanced 25 centavos to P13.50 after it announced that it had purchased 95 percent of Indonesian port operator PT Makassar Terminal Services for $5.6 million.

Conglomerate Ayala Corp. gained P5 at P425 on bargain-hunting, while unit Ayala Land ended steady at P13.50.

Another of its unit, Bank of the Philippine Islands, was down P1 at P62.50.

San Miguel A shares were steady at P63.50 while B shares inched 50 centavos higher at P81.

"The market has been in need of a consolidation, and this may continue for some time," said PCCI Securities president Francisco Liboro.

He said that the anticipated weakness in the market was technical in nature and had nothing to do with the country’s fundamentals, which remained generally favorable.

Another active stock was International Container Terminal, which rose 1.9 percent to P13.50, after it announced that its Singapore unit acquired control of an Indonesian port company.

Ayala Corp. gained 1.2 percent at P425 on bargain hunting. – AFP, AP