(UPDATE) Stocks fall on profit-taking

MANILA, Philippines (Xinhua) - The stock market slashed much of what it gained the previous day as investors took cue to book their gains after the index breached the 7,000 level.

The bellwether Philippine Stock Exchange index lost 0.72 percent or 50.58 points to 6,948.52, while the broader all-share index slipped by 0.53 percent or 22.11 points to 4,158.21.

Trading volume reached 2.52 billion shares worth P6.28 billion ($144.45 million) with 116 stocks declining, 64 advancing, and 45 closing unchanged.

All six counters were down, led by the mining and oil sector.

Brokerage 2TradeAsia.com said the market might heed for clues overseas, apart from favorable gross international reserves and latest Treasury Bill results at home.

Analyst Justino Calaycay of Accord Capital Equities Corp. said although the index eventually settled below the 7,000-line, the breather it took is mainly temporary.

"The strong positive breadth suggests momentum is intact and the 7,000 level reached may be revisited, if not surpassed in the coming days," Calaycay said.

2TradeAsia.com said any rise past the 7,000 might be liquidity- driven.

"It would be timely to consider cashing-in on rallies and wait for gauges to firm-up a new solid base," it advises.

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