Stocks decline on bad news

MANILA, Philippines (Xinhua) - After showing some resiliency during the past sessions, the stock market today gave way to profit takers on lack of positive leads.

The bellwether Philippine Stock Exchange index lost 0.43 percent or 32.51 points to 7,452.81, while the broader all-share index shed 0.42 percent or 18.48 points to 4,366.13.

Trading volume reached 2.74 billion shares worth P10.08 billion ($225.50 million) with 106 stocks declining, 78 advancing and 41 were unchanged.

All six counters were down.

Analyst Justino Calaycay of Accord Capital Equities Corp. attributed Tuesday's drop to a string of negative news that might have rocked investors.

"A possible source of concern for the global picture emerged after the International Monetary Fund, citing 'strong and complex cross currents' pared its global growth forecasts by the most in three years," he said.

It likewise voiced fear of potential capital flight out of emerging markets once the Federal Reserve begins to raise US interest rates.

Meanwhile, China just released its fourth quarter economic growth, which hit 7.3 percent, just behind the 7.5 percent goal.

This was the slowest pace for the world's second largest economy since 1990.

"The sensitivity to what is happening around and outside our borders is nonetheless the major influence that plays into the decision making of investors," Calaycay said.

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