Index tumbles 11 pts as market starts to consolidate

Shares fell yesterday as investors took profits after the market’s recent gains. Philippine Long Distance Telephone Co., or PLDT, led the decline. The benchmark 30-company Philippine Stock Exchange Index fell 11.54 points, or 0.5 percent, to 2,231.68, after rising 0.2 percent Tuesday.

"Coming from a low of 2,049.95 on June 28, we’re now up by close to nine percent. So given that, the market was bound to consolidate," said AB Capital Securities analyst Erwin Balita.

Balita said he remains cautiously optimistic over the market’s prospects, given recent economic news, which showed inflation still at manageable levels and exports growing at double-digit rate.

Weighing heavily on the index, PLDT lost 0.8 percent at P1,950 in step with the 1.7 percent loss by the company’s American Depositary Receipts in New York Tuesday. The stock also fell on profit-taking after rising during the previous session on the company’s announcement it has completed the acquisition of call center operator SPI Technologies.

Other stocks that weighed on the market were Bank of the Philippine Islands, off two percent at P48.50 and SM Prime, lower by 2.6 percent at P7.60.

Limiting the market’s loss, Ayala Land gained 2.1 percent at P12.25 on 15.65 million shares traded, making it the most actively traded stock. Philex Mining A and B each rose 1.3 percent to close at P4 and P4.05 respectively on higher world metal prices.

Decliners led gainers 37 to 28, while 61 stocks were unchanged.

The government said exports grew 17.3 percent year-on-year in May and were up 16 percent for the first five months of the year, compared with the government’s full-year growth forecast of eight percent.

"Exports have been a positive surprise this year but we are not yet convinced the strength is a new trend," ING regional economist Tim Condon in a note to clients.

Geo-political concerns arising from North Korea’s missile tests last week and Tuesday’s deadly rail bombings in India dampened investor sentiment, dealers said.

Higher oil prices were also a concern because they add to inflation and could slow economic growth, they added.

"The market is consolidating, with a negative bias, partly because of geo-politics and crude," said Jose Vistan of AB Capital Securities.

PLDT led the market’s fall, ending down P15 to P1,950.

Bank of the Philippine Islands shed a peso to P48.50.

SM Prime Holdings fell 20 centavos to P7.60, while its parent, SM Investments, retreated two pesos to P210.

Ayala Land gained 25 centavos to P12.25 while parent Ayala Corp., was steady at P400. – AP, AFP