Stocks continue to retreat on investors' caution

MANILA, Philippines (Xinhua) - The stock market retreated further today as investors stay at bay ahead of the release of Chinese major economic policies.

The bellwether Philippine Stock Exchange index dived by 2.14 percent or 126.21 points to 5,762.53, while the broader all-share index shed 1.91 percent or 68.90 points to 3,539.48.

Trading volume reached 1 billion shares worth P9.41 billion ($212.92 million) with 120 stocks declining, 36 advancing, and 36 remaining unchanged.

"Institutional investors' attention might be sidelined by results from China's economic meeting, specifically on policies that will be implemented next year," 2TradeAsia.com said in its daily stock market comment.

China's annual Central Economic Work Conference, which opened in Beijing on Dec. 10, will review the state of the economy in 2013 and discuss economic targets and likely reforms for 2014.

The brokerage said investors are mostly on "technical trading mode," in the absence of significant macro catalysts that prod fund managers in injecting extra funds in the region.

At present, 2TradeAsia.com said investors seem to be focused on developed markets, particularly the United States and Europe, where economic data improvement has taken hold.

Stocks in the 30-company index were all down. These issues include heavyweight Philippine Long Distance Telephone Co., Ayala Corp., and Ayala Land, Inc.