Index eases as investors continue to take profits

Share prices closed 0.71 percent lower yesterday as investors again took profits after the index hit nine-year highs last week, dealers said.

They said Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom were among the biggest losers after they hit record highs last week but advances in conglomerate SM Investments and Philex Mining helped the key index recover from the day’s lows and trim losses at the close.

The composite index closed down 20.13 points at 2,801.79 after moving between 2,788.33 and 2,822.71.

The broader all-share index fell 6.76 points to 1,726.93.

Losers and gainers were matched at 48 each with 60 unchanged.

A total of 3.45 billion shares changed hands worth P2.45 billion.

"The market is overbought, so it’s not surprising to see investors taking profits even if the overall sentiment remains bullish," said Ron Rodrigo of Unicapital Securities.

"With the third-quarter results of most blue chips already out, the market is in consolidation mode and looking for fresh leads."

Top-traded PLDT fell P70 to P2,450 while Globe Telecom retreated P35 to P1,290.

Philex Mining edged up 10 centavos to P4.50 after the company declared a cash dividend.

San Miguel A-shares were steady at P65 while its B-shares fell 50 centavos to P73.

"The market is taking a breather," said Gilbert Lopez, an analyst at Macquarie Securities Ltd. in Manila. While third- quarter earnings were "in line or above expectations, the market has run up a lot.’’

Limiting declines, SM Investments Corp. rose P12.50, or 4.2 percent, to P310. Billionaire Henry Sy’s holding company said nine-month profit climbed 38 percent amid increased earnings at its units.

"I think more than half the earnings reports have already come out so there are less drivers for the market to go up, and I think some investors are using this as an excuse to take profit," said AB Capital Securities research director Jose Vistan.

Jollibee Foods Corp., the country’s biggest fast-food company, rose P1, or 2.4 percent, to P42. Profit climbed 61 percent in the third quarter and expenses increased at their slowest pace this year, the company said yesterday.

Meralco’s A-shares, ownership of which is limited to Filipinos, rose P1.50 or 5.26 percent to P30 on 436,900 shares. Its B-shares, which does not have ownership restrictions, jumped P2.50 or 7.69 percent to P35 on 1.45 million shares. The power distributor released a statement during trading hours saying it has signed an underwriting agreement for the issuance of seven-year notes worth P12 billion. – AFP