(UPDATE) Bourse closes lower on profit taking

MANILA, Philippines (Xinhua) - The stock market snapped a three-day rally today after investors booked their gains on lack of positive leads.

The bellwether Philippine Stock Exchange index lost 0.53 percent or 38.09 points to 7,116.13, while the broader all-share index slipped by 0.44 percent or 18.46 points to 4,199.83.

Trading volume reached 7.61 billion shares worth P6.06 billion ($135.20 million) with 97 stocks declining, 72 advancing, and 44 remaining unchanged.

Three of the six counters retreated. These were the financials, holding firms, and the property sectors.

Analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment that the local equities' performance on Thursday simply mirrored that of its neighboring peers.

"The composite index headed south form the get-go, mirroring the movements of its peers in the region, eventually pulling marginally below the critical psychological mark before rising above it at the close," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

Asian markets were generally lower but managed to trim losses as Japanese bonds yields dropped to negative and the yen weakened.

US stocks also closed lower, dragged by a fall in energy shares as oil prices continued to slide.

"On a slight positive note, China's PMI rose in October, producing a counterargument to the feared slowdown in the world's second largest economy," he said.

Despite Thursday's correction and last weeks's generally negative volatility, Calaycay said the market remains on an upward bias.

"We see the market as attempting to strike the perfect balance between domestic and external influences," Calaycay said.

Stocks in the 30-company index closed mixed. Among those sold down were Ayala Corp. and Ayala Land, Inc. On the other hand, investors picked up shares of heavyweight Philippine Long Distance Telephone Co. and Universal Robina Corp.