Index ends almost flat as market consolidates

Shares ended little changed yesterday as investors locked in gains from a previous session.

The benchmark 30-company Philippine Stock Exchange Index fell 0.84 points at 2,560.22, after soaring three percent Thursday.

"The market staged a huge jump yesterday (Thursday), so there was a bit of profit-taking," said Eagle Equities President Joseph Roxas.

Traders credited favorable September inflation data, the prospect of lower Central Bank interest rates, easing concerns over the economic costs of last week’s typhoon and an upbeat fiscal and economic outlook for the Philippines.

Profit-takers focused on Philippine Long Distance Telephone Co. (PLDT), the most actively traded stock, down two percent to P2,180.

Property concern Robinsons Land shed 3.6 percent at P13.50.

Among gainers, Ayala Corp. was up 4.8 percent at P495.

Advancers led gainers 64 to 49, while 45 stocks were unchanged.

Philex Mining Corp., the nation’s biggest gold and copper producer, rose after gold prices climbed from a three-month low.

The index climbed three percent Thursday, its biggest jump since July 20, after the government said inflation slowed more than expected in September. The measure added 0.1 percent this week, extending a five-week, 12-percent advance.

Thursday’s rise was "irrational exuberance due to inflation," said James Lago, an analyst and Westlink Global Equities Inc. in Manila. The jump "was just too fast."

SM Prime, the nation’s largest shopping mall company, fell 10 centavos, or 1.2 percent, to P8.60, paring gains this week to 2.4 percent.

Robinsons Land Corp., the nation’s second-largest developer, declined 50 centavos, or 3.6 percent, to P13.50.

Philex Mining Corp. rose five centavos, or 1.4 percent, to P3.65. Gold rose on speculation recovering commodity prices will increase the metal’s appeal as a hedge against inflation. Copper gained on speculation economic growth in Europe and China will boost demand.

The market has done well in recent weeks to chalk up gains above strong resistance at 2,500 points and while there may be some periodic profit-taking the prospect is for more upside, they said.

For the week to Oct. 6, the composite index rose 3.51 points or 0.13 percent to 2,560.22 points in volatile and heavy trade.

Average daily turnover rose to 4.11 billion shares worth P7.3 billion from 1.81 billion shares worth P2.05 billion in the previous week.

"Our view is still bullish. There might be corrections along the way but the trend is still pointing up," said Mark Alan Canizares of Citiseconline.

Investors may use the upturn to briefly take profits, he added. – AP, AFP