(UPDATE) Bourse closes lower on lack of leads overseas

MANILA, Philippines (Xinhua) - With lack of leads overseas, the Philippine stock market was all in the red today although bargain hunters managed to temper the losses.

The bellwether Philippine Stock Exchange index lost 0.07 percent, or 4.94 points to 6,869.94, while the broader all-share index retreated by 0.10 percent, or 4.20 points to 4,115.79.

Trading volume reached 908 million shares worth P8.11 billion ($186.95 million) with 88 stocks declining, 69 advancing, and 65 unchanged.

Three of the six counters bucked the trend.

"With U.S. and Europe equities sliding overnight, investors found no reason to cheer and sustain Monday's advance into a second day," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

The local index opened two points lower, briefly crossed the positive territory by a slim margin before giving in to the selling pressure.

Calaycay noted that U.S. stocks retreated on Monday ahead of the release of corporate results and on an overhang of concerns over the tensions in the Ukraine, Israel, and Iraq.

The Dow Jones industrial average index lost 48.45 points on Monday.

"Expectations of a technical correction, with both major indices trading at near record levels, have tempered optimism over earnings and the economy," Calaycay said.

The analyst said the local equities will continue to trade inside a narrow band, test the 6,900 level while confidently holding support at 6,770 and 6,880 level.

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