Index eases 5 pts as investors cash in gains

Shares dipped yesterday as investors pocketed gains from this week’s rally ahead of the central bank’s meeting to decide whether to cut interest rates.

The 30-company Philippine Stock Exchange dropped 4.61 points, or 0.1 percent, at 3,572.90, after advancing 8.7 percent in six out of the past seven sessions.

“In early trade, we saw buying interests being sustained as investors window-dress their third quarter portfolios. But towards the close, some felt it was time to lock in gains,” said Unicapital Securities research head Ron Rodrigo.

He anticipated profit-taking will continue over the next week, ahead of the central bank’s rate-setting meeting on Thursday.

The broader all-share index rose 3.91 points or 0.2 percent to 2,226.71. Gainers narrowly beat decliners 56 to 54, while 55 stocks were flat.

A total of 4.3 billion shares worth P5.6 billion were traded.

“We have a mild pullback and it was due to healthy profit-taking in PLDT,” said Nestor Aguila, president of DA Market Securities.

“But I think there’s a possibility that we may revisit previous highs in the coming days, as the US markets now present half a cup of optimism,” he said.

US stocks closed higher Thursday as investors set aside concerns over the continued fallout from the US subprime crisis and bet that further rate cuts by the Fed are on the way.

Ron Rodrigo, research head at Unicapital Securities, said other blue chips were supported by fund managers sprucing up portfolios on the last trading day of the third quarter and speculation that the central bank will cut key interest rates when it meets on Oct. 4.

Ayala Corp., the country’s third-biggest company by market value, rose P15 or 2.8 percent to P550.

Metropolitan Bank & Trust Co. led gains in the financial sector, closing P1  or 1.8 percent higher at P56. Select mining stocks were also in favor, led by Geograce Resources which jumped 18 centavos or 8.3 percent to P2.36 as gold traded around 28-year highs.

Conglomerate Alliance Global Group Inc. was the most active, surging five percent at P5.20.

Property developer Megaworld Corp. jumped three percent at P3.45, while Metropolitan Bank & Trust Co. rose 1.8 percent at P56.

Philippine Long Distance Telephone Co. (PLDT) succumbed to profit-taking from record highs, falling one percent at P2,910. — AP