Stocks slide 1.34% on profit taking in blue chips

Share prices shrugged off a strong performance by Wall Street overnight and closed 1.34 percent lower yesterday on profit-taking in blue chips after recent gains, dealers said.

They said the market could continue to consolidate in the next few sessions and will likely bounce back when other blue-chip companies unveil quarterly results next week.

The composite index shed 37.46 points to 2,755.28 having traded between 2,743.43 and 2,792.74.

The broader all-share index fell 10.05 points to 1,699.23.

Losers outnumbered gainers 65 to 40 while 54 were unchanged. Turnover was 1.59 billion shares valued at P2.19 billion.

"We saw a lot of profit-taking which was expected given that the technical correction was put off for several trading sessions already," said Joseph Roxas of Eagle Equities Inc.

"We’ve been saying that the market should take a breather after the previous week’s gains and that is what is happening."

He added: "The market has already discounted this week’s earnings results and investors are waiting for fresh catalysts to take the market upward again."

"This a healthy retreat for the market," said Allan Yu, who helps manage $2.4 billion at Metropolitan Bank & Trust Co. "Share prices have gone up quite rapidly and this decline gives other investors a chance to come in.’’

Megaworld Corp. had its biggest drop in more than a year after announcing plans to sell new shares, equivalent to a third of the company, at a discount.

PLDT, which accounts for 31 percent of the stock benchmark index, fell P60, or 2.4 percent, to P2,420, having surged 13 percent in the past three weeks. PLDT said it had its biggest quarterly profit, boosted by one-off items such as currency gains from a strong peso.

"PLDT’s earnings weren’t disappointing nor were they really spectacular, so we are seeing some weakness in the stock,’’ Yu said. "The stock has still a long way to go from here to meet its promise of raising its dividend payment.’’

Ayala Land Inc., the country’s largest builder, declined 25 centavos, or 1.6 percent, to P15. The stock has gained 52 percent this year compared with a 32-percent climb in the nation’s main stock index.

"This is an expected development considering the sharp run in share prices recently,’’ said Mark Canizares, analyst at CitisecOnline.com Inc.

Megaworld, the largest Philippine builder of residential and office towers, lost 22 centavos, or 9.2 percent, to P2.16, its biggest decline since July 5, 2005.

Megaworld will sell stockholders 7.37 billion shares at a discount of as much as 50 percent to the closing price on the pricing date, the company said. The company plans to sell shares in the first quarter of 2007 and use the proceeds to accelerate its expansion. It will sell the shares at a ratio of one share for every two shares held. – AFP