Index eases as market continues to consolidate

Share prices closed 0.3 percent lower yesterday on profit taking, dealers said.

The composite index shed 10.51 points at 3,824.20, off the day’s low of 3,786.66. A total of 2.3 billion shares worth P3.8 billion changed hands.

Gainers outnumbered losers 61 to 46, while 65 stocks were flat.

“Some investors consider the current price levels as good entry points as they anticipate the index to test recent highs as soon as next week,” said Lawrence de Leon at Accord Capital Equities.

“There is more good news than bad news going around right now so overall sentiment remains positive. The market is also historically strong during the fourth quarter so we’ll likely see more gains,” he said.

The holiday-shortened week ended with the key index posting a 1.3-percent gain from last week. There will be no trading Friday due to a public holiday.

Gomer Tan at Regina Capital Development Corp., said the key index hovered around the 3,800-point level as investors continued to consolidate their positions after the recent rallies that brought the index to a record high on Monday.

“Any further run-ups in the absence of any consolidation could open up the market to even steeper declines later on,” added PCCI Securities president Francisco Liboro.

“We are confident though that the economic expansion is still on track and this should translate to sustained robustness in corporate earnings growth.”

He said confirmation of solid earnings growth and sustained economic expansion in the third quarter could fuel another major rally for the Philippine index past the 4,000-point level.

Most of the third quarter earnings will come in between the last week of this month and the second week of November, while the GDP data for the third quarter will not be released until Nov. 29.

Philippine Long Distance Telephone Co. (PLDT), the country’s biggest company by market value, was down P45 at P3,090.

Ayala Corp. finished P5 higher at P590, rebounding from a low of P570.

Metrobank, the country’s biggest bank in terms of assets, advanced P1 at P66.50.

San Miguel Corp.’s class A shares fell 50 centavos to P61. The food and beverage group’s B shares retreated 50 centavos to P62. — AFP