Index ends flat on continued lack of fresh leads

Share prices closed flat yesterday, with investors finding no fresh leads after modest losses earlier this week sparked by concerns over North Korea’s nuclear test, dealers said.

They said losses in index heavyweight Philippine Long Distance Telephone Co. (PLDT) offset gains in Ayala Land Inc.

The composite index fell 1.71 points to 2,527.27 after moving in a narrow range between 2,521.89 and 2,531.71.

The broader all-share index fell 1.34 points to 1,554.60.

Decliners narrowly led gainers 43 to 42 with 57 unchanged.

Turnover was 1.27 billion shares valued at P3.47 billion.

The Philippine peso traded at 50.078 to the dollar.

"The market consolidated in the absence of catalysts, with investors largely focused on the lower-liners," said Rommel Macapagal of Westlink Global Equities.

PLDT, the most briskly traded stock, fell P15 to P2,175.

Leading property developer Ayala Land Inc. rose 25 centavos to P13.75.

Manila Electric Co. (Meralco) A-shares, exclusive to Filipinos, jumped P2 to P24 while its B-shares, open to foreign investors, rose one to P32.

Food and beverage firm San Miguel Corp.’s A-shares advanced 50 centavos to P66 while its B-shares fell P1 to P75.

"Slower growth means lower consumer spending," said James Lago, an analyst at Westlink Global Equities Inc. in Manila. "It means fewer people drinking beer and going to the malls."

SM Prime Holdings, the country’s largest shopping-mall operator, lost 20 centavos, or 2.3 percent to P8.40.

Economic expansion may slow to 5.3 percent next year, compared with a government forecast of at least 5.7 percent, as slowing global demand hurts export growth, BusinessWorld reported yesterday, citing the Congressional Planning and Budget Office. The report also said the El Niño weather phenomenon could next year cause a drought, capping gains in the agricultural industry.

"This is a concern’’ for investors, Lago said.

Losses in the market were pared after the central bank said foreign investment rose.

Net foreign direct investments rose to $158 million in July from $45 million a year earlier, helping more than double inflows for the first seven months, the central bank said yesterday.

"That’s one piece of good news that prevented a bigger drop in share prices,’’ Lago said. – AFP