Market dips on profit-taking, signs of another BSP rate hike

Share prices closed 0.3 percent lower yesterday as investors continued to take most profits on fresh political concerns and signs the Bangko Sentral ng Pilipinas (BSP) may raise key interest rates, dealers said.

Gains in market heavyweight Philippine Long Distance Telephone Co. (PLDT) limited the downturn, with the stock in focus on hopes the company will report strong third quarter results.

The Philippine Stock Exchange composite index fell 5.91 points to 1,970.19 after trading between 1,965.81 and 1,978.29. Volume was 493.2 million shares worth P1.28 billion.

The all-shares index fell 3.41 points to 1,195.40.

Losers led gainers 37 to 20, with 57 stocks unchanged.

"It seems the market is trying to go against a concrete wall in light of renewed political uncertainties and the prospect of rising interest rates," said Jonathan Ravelas of Banco de Oro Universal Bank.

"Investors are not really shaken by political developments but they keep an eye on what’s happening," said Rommel Macapagal of Westlink Global Equities.

On Wednesday, a Marine Corps general was relieved and faces court martial after he defied President Arroyo’s orders to speak before a Senate committee where he alleged that Arroyo cheated in the May, 2004 elections.

Mrs. Arroyo has denied opposition allegations of election fraud.

Food and beverage giant San Miguel Corp.’s A shares were flat at P66 while its B shares fell 50 centavos to P93.50.

Banco de Oro was down 50 centavos at P30.50 while Semirara Mining fell two pesos toP 25.50 after cutting its full-year earnings forecast.

Jollibee Foods Corp. closed steady at P37.

The benchmark 30-company Philippine Stock Exchange Index ended down 5.91 points, or 0.3 percent, at 1,970.19, adding to Wednesday’s 0.4 percent loss.

"The market just moved sideways due to lack of fresh news. Political noise also continues to crop up, keeping investors on their toes," said BPI Securities senior manager Roberto Cano.

Capping the market’s loss was blue chip Philippine Long Distance Telephone Co., which was the most actively traded stock with a gain of 0.3 percent at P1,695, in step with the 0.9 percent advance made by the company’s American depositary receipts in New York Wednesday.

Also closing higher was Manila Water, up 3.2 percent at P6.40, on talk there may be progress in the water utility concern’s plan to clinch the water concession of Maynilad Water, which is undergoing rehabilitation. – AFP, AP