Index ends flat as market continues to consolidate

Share prices closed flat yesterday as the market consolidated after recent gains, dealers said.

After trading mostly in negative territory, the composite index ended 0.77 points up at 2,843.31 after trading between 2,833.88 and 2,848.37.

The broader all-share index rose 3.47 points to 1,762.96.

Gainers narrowly beat losers 55 to 51 with 51 unchanged. A total of 2.85 billion shares changed hands worth P2.46 billion.

"Since there are no fresh leads that will further perk up interest, the tendency is for the market to consolidate," said Ron Rodrigo of Unicapital Securities.

"We also expect a correction in the near term because the market remains overbought despite its recent pullbacks."

He said the government’s economic growth estimate for the third quarter, announced earlier yesterday, hardly influenced trading as it was in line with market expectations.

The country’s gross domestic product likely grew by 5.2-5.8 percent year-on-year in the July-September quarter, supported by strong exports and sustained growth in farm output, with brisk remittances from Filipinos working abroad boosting domestic demand, according to Dennis Arroyo, director for planning and policy at the National Economic and Development Authority (NEDA).

Ayala Land added 25 centavos to close at P15.25, but unit Bank of the Philippine Islands fell 50 centavos to P63.50.

Philippine Long Distance Telephone Co. (PLDT) rose P5 to 2,480.

San Miguel A and B shares were unchanged at 65 and 73, respectively.

Aboitiz Equity Ventures, which has interest in energy generation, rose 1.6 percent at P6.20.

"Interest rates are falling, so funds are seeking other areas of investments that would give higher yields, and the obvious answer to that would be equities," said Citiseconline investment analyst Mark Alan Canizares.

The government posted Thursday a January-October budget deficit of P56.3 billion – well below the P125 billion ceiling for the whole of 2006. — AFP, AP