Index tumbles as investors continue to take profits

Share prices closed 0.63 percent weaker yesterday as investors continued to grab profits from recent gains, dealers said.

The composite index was down 23.58 points to 3,729.68, off the day’s low of 3,705.92. The all-share index fell 12.80 points or 0.53 percent to 2,407.48.

Losers outpaced gainers, 91 to 31, while 63 shares were unchanged.

A total of 4.3 billion shares worth P4.7 billion changed hands.

“Investors continued to cash in their gains in preparation for the next round of IPOs,” said Astro del Castillo of First Grade Holdings Inc.

“Technically the market also needs to correct, after hitting a new record high last week,” he said.

Aboitiz Power Corp., the most actively traded stock, fell 30 centavos to P5.50.

Analysts said Aboitiz Power’s lackluster debut on Monday would make investors more circumspect about the valuations of other companies offering their shares to the public.

Among the upcoming offerings, GMA Television’s IPO has attracted strong foreign investor interest, prompting the company to price its offering at P8.50 per share, the top end of its indicative price range.

Philippine National Bank also begins its international roadshow this week for a follow-on offering, while property developer Vista Land Lifescapes Inc. has also scheduled a stock offering before the end of this month.

Market heavyweight Philippine Long Distance Telephone Co. (PLDT) was down P5 at P2,700.

Ayala Land Inc., the nation’s biggest property developer, recovered in late trade after early losses and closed 25 centavos higher at P18.

Bank of the Philippine Islands was down P2 at P69.50, but mall operator SM Prime Holdings Inc. rose 50 centavos to P13.50.

San Miguel A shares were down P1.50 at P75 while San Miguel B was down  50 centavos at P82.50.

Aboitiz Power Corp., which debuted Monday, plunged 5.2 percent at P5.50.

“Investors got stuck in Aboitiz Power and have to look at other sources of funds to be able to participate in the public offerings. Bottom line is learn to balance valuation with greed and fear,” said DA Market Securities President Nestor Aguila.

Conglomerate Ayala Corp. fell 2.6 percent to P560, Bank of the Philippine Islands declined 2.8 percent at P69.50, and Manila Electric Co. B shares - open to local and foreign investors - slipped 2.8 percent at P104. — AFP, AP