(UPDATE) Wait-and-see mood drags down Phl stocks

MANILA, Philippines (Xinhua) - The Philippine stock market continued to trade sideways today in what analysts attributed to the "ghost month" effect.

The bellwether Philippine Stock Exchange index lost 0.04 percent or 2.77 points to 6,864.82, while the broader all-share index managed to keep its 0.05 percent or 2.13 points gain and settled at 4,112.56.

Trading volume reached 653 million shares with P7.46 billion ($171.59 million) with 93 stocks advancing, 82 declining, and 51 unchanged.

Except for the service sector, all others managed to end higher.

"The market continue to trade sideways with the month-end season, although some fund managers might opt to unwind part of their portfolio holdings in time for the 'ghost month'," 2TradeAsia.com said.

The brokerage added that some foreign fund managers have also opted to stay at the sidelines, following the US Federal Reserve 's latest tapering plan and lack of clear hints as to when interest rates will be adjusted.

Moreover, investors are waiting for the announcement of the local central bank regarding the country's interest rates.

The Philippine central bank today has increased key interest rates by 25 basis points, the first time in more than a year and a half.

The move was meant to avert inflation risks next year, it said.

Stocks in the 30-company index closed mixed. Among those sold down were heavyweight Philippine Long Distance Telephone Co., SM Investments Corp., and the Bank of Philippine Islands.