Lack of fresh leads continues to hound market

Share prices closed 0.37 percent lower yesterday, extending a correction for a second session in the absence of fresh leads, dealers said.

The composite index shed 10.92 points to 2,940.16. It traded between 2,955.29 and a low of 2,938.62.

The broader all-share index was down 3.66 points to 1,840.34.

There were 55 gainers and 49 losers while 57 stocks ended unchanged. Volume was 2.9 billion shares valued at P3.1 billion.

"The market is just continuing its consolidation phase, especially with no fresh news to really spark a rally. Investors opted to stay on the sidelines and wait for fresher leads," said Jasper Jimenez at Banco de Oro Securities.

Dealers said select stocks bore the brunt of the selling pressure given their recent advances as investors resorted to second and third line issues.

Analysts said the market will likely remain in consolidation during the next session within a range of 2,950-3000.

"The market traditionally consolidates in January as it takes a breather from the fourth quarter rally," they said.

The Philippine Long Distance Telephone Co. (PLDT) led yesterday’s decliners, closing P50 or 2.04 percent to P2,400 after its ADRs fell 0.11 cents to $49.34 on the NYSE overnight.

Its rival Globe Telecom Inc retreated P35 or 2.85 percent to P1,195.

Property developer Megaworld Corp. dipped 0.06 or 2.44 percent to P2.40. Food and drinks firm San Miguel Corp.’s B shares gained P1.50 or 2.03 percent to P75.50 while its A shares held steady at P63.50.

Power distributor Manila Electric Co.’s A shares were steady at P55.50 but its B shares fell 0.50 centavos or 0.89 percent to P55.50.

Among the smaller cap issues, gainers included International Container Terminal Services Inc (ICTSI), which rose P2.25 or 10.34 percent to P24.

ICTSI was briefly suspended yesterday as the stock exchange sought details of its joint venture contract with Yantai Port Group Co. Ltd.

ICTSI said it will buy 60 percent of Yantai Gangtong Container Terminal Co. Ltd., which manages the Yantai Gangtong port in the eastern Chinese province of Shandong.

It said it signed a joint venture agreement with Yantai Port Group Co. Ltd. and SDIC Communications Co., each of which will keep 20 percent of Yantai Gangtong Container Terminal. – AFP