Index eases as investors turn cautious

MANILA, Philippines - Philippine stocks eased yesterday as investors stayed on the sidelines ahead of the traditional ghost month of August.

The Philippine Stock Exchange index slightly fell 0.04 percent or 2.77 points to 6,864.82, while the broader all shares index gained 0.05 percent or 2.13 points to 4,112.56.

Investors turned cautious on stocks amid the start of the Chinese ghost season and the vacation season for many global fund managers. August is the weakest month for the stock market.

Positive leads were absent, with Wall Street closing mixed on Wednesday despite an improvement in the US economy.

The Dow Jones industrial average slipped 0.19 percent or 31.75 points to 16,880.36, while the broader Standard & Poor’s 500 index rose 0.01 percent or 0.12 point to 1,970.07.

The US Federal Reserve cut its monthly bond purchases by another $10 billion to $25 billion while keeping interest rates low as expected. In the second quarter, the US economy expanded by four percent, higher than the three-percent consensus.

Locally, most counters were in the positive territory, led by mining and oil that climbed 0.66 percent or 108.86 points to 16,718.73. But the service sector bucked the trend as it shed 0.53 percent or 11.13 points to 2,099.88.

Turnover value declined to P7.47 billion from P8.24 billion on Wednesday. But advancers outpaced losers, 93 to 82, while 51 stocks did not change.

Most active issues closed in the red, led by index heavyweight PLDT (-0.65 percent) while Universal Robina Corp. (-0.31 percent) and SM Prime Holdings Inc. (-1.67 percent) likewise ended lower. But Ayala Corp. (+0.77 percent), Ayala Land Inc. (+0.48 percent) and Metrobank (+0.82 percent) finished higher yesterday.