Stocks extend losses on continued profit taking

MANILA, Philippines (Xinhua) - Profit taking further pulled down the stock market today even after making a rally to the 7,200 level.

The bellwether Philippine Stock Exchange index fell by 0.34 percent or 24.56 points to 7,146.12. The broader all-share index dipped by 0.41 percent or 18.26 points 4,461.69.

Trading volume reached 5.66 billion shares worth P6.69 billion ($163.72 million) with 112 stocks declining, 67 advancing, while 35 were unchanged.

Online brokerage 2TradeAsia.com said in its daily stock market comment that the market attempted to cross the 7,200, as local players reposition their portfolio for long-term prospects.

"Rallies came from traditional favorite sectors such as property, holdings and banks," the online brokerage said.

2TradeAsia.com however said corrections were inevitable as most would take profits, following a gap-up to 7,190 last May 2.

Tuesday's correction was felt even after the Philippine government reported that inflation during the month of April was slower than the previous month. April inflation rose by 2.6 percent.  

"The local bourse finished 24.53 points lower, falling for the second consecutive session as it traded on even thinner volume," DBP-Daiwa Securities, Inc. said.

Stocks in the 30-company index closed mixed. Among those that rallied were Ayala Corp., heavyweight Philippine Long Distance Telephone Co. (PLDT), and Alliance Global Group, Inc.

Telecom giant PLDT's net income in the first quarter plunged 8 percent on year to P9.2 billion ($225.13 million). This is due to lower foreign exchange and derivative gains and the retroactive effect of the adoption of revised Philippine Accounting Standard (PAS).

As a result of the revised PAS, PLDT reversed P1.3 billion ($31.82 million)  of Manpower Reduction Program expenses accrued in the fourth quarter of 2012 and recognized P791 million ($19.36 millions) of those expenses in the first quarter of 2013, based on actual offer letters accepted by employees.

EBITDA margin for the period was at 51 percent a level similar to the same period last year, but an improvement over the last three quarters of 2012.

Consolidated service revenues for the first three months of 2013 was stable at P40 billion ($978.83 million), reflecting the effect of steady wireless and fixed line revenues.