Roundup: Philippine market falls on profit-taking

The bellwether Philippine Stock Exchange index dipped by 1.06 percent or 31.18 points to end at 2, 888.72 while the all share index tumbled by 0.97 percent or 18.03 points to finish at 1,823.90.

Only one of the six subindices rallied, with the financial sector being the biggest loser, shedding 2.12 percent or 18.03 points to close at 1,832.90. Mining and oil shares went up by 2.83 percent or 220.17 points to close at 7,997.49.

Trading volume was below the average as 932 million shares valued at 3.65 billion pesos (77.69 million U.S. dollars) changed hands. Foreign investors were net buyers at 104 million pesos (2. 21 million U.S. dollars).

Losers led gainers by 55 to 42 as 62 were unchanged.

"The local equities market fell as the lack of strong positive leads dragged down investors' sentiments. Confidence also dwindled as the Dow Jones industrial average retreated after surging past the 10,000 psychological mark last week," local brokerage AB Capital Securities, Inc. said in its daily stock market comment.

The U.S. market closed down on Wednesday as blue chip-heavy Dow Jones industrial average lost 0.5 percent or 50.71 points to 10, 041.48. Likewise, the Standard and Poor's 500 index and technology- heavy the Nasdaq composite index also went down.

"The is the case with local composite index, which is having a hard time after going beyong the 3,000 psychological resistance mark," the brokerage house said.

The Philippine market had fluctuated within a tight range for almost three months before it broke above the 2,900 resistance level two weeks ago -- the highest level the main index has touched since April 2008.

"We could see more selling on some index related issues [ especially those] that will be taken out from the main index. The negative sentiments, as shown by the bearish market breadth, will be exacerbated by the bellwether's break below the 2,900 support," AB Capital said.

In a statement sent to reporters on Thursday, the bourse said The Philippine Stock Exchange, Inc., Consunji-led DMCI Holdings Inc. and Security Bank Corporation will join the main index next month, replacing property firm Vista Land and Lifescapes, Inc., Rizal Commercial Banking Corp. and ABS-CBN Broadcasting Corporation.

Claire Quiray of local brokerage Regina Capital Development Corp. said in an interview that the problem is that there is no positive news significant enough to motivate investors to enter. As such, she said investors will likely see aggressive movement only in selected issues with corporate developments while others will base their decisions on technicals.

"The good thing is investors are not out of the market; they are just at the sidelines waiting to the good opportunity to enter again," Quiray said.

Most stocks in the 30-company index has again closed lower.

Philippines' three largest banks were all in the red, while the country's largest property developer Ayala Land, Inc. stayed at 11. 25 pesos (0.23 U.S. dollar) apiece.

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