Bourse closes lower despite positive inflation report

MANILA, Philippines (Xinhua) - The Philippine stock market retreated further today even after a positive inflation report.

The bellwether Philippine Stock Exchange index lost 0.95 percent or 69.29 points to 7,230.56, while the broader all-share index retreated by 0.88 percent or 37.90 points to 4,250.

Trading volume reached 2.07 billion shares worth P10.08 billion ($226.36 million) with 125 stocks declining, 46 advancing, and 55 unchanged.

All six counters were up.

"Further weakness might be seen for now, unless fresh leads occur overseas," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

Investors generally took their cue from the market's reception to November inflation headline, plus progression of preparedness and contingencies for the super typhoon's anticipated entry.

However, the news was not enough. Thus, even after the government reported that inflation slows to a one-year low in November, investors still took the opportunity to book their gains.

Consumer price index slipped to 3.7 percent in November from 4. 3 percent last October.

"Seize on weakness to buy and continue to trade a range," Calaycay said.

Stocks in the 30-company index were mostly down. These include heavyweight Philippine Long Distance Telephone Co., Bloomberry Resorts Corp., and SM Investments Corp.