Philippine stocks extend losses amid thin trade

MANILA, Philippines (Xinhua) - The stock market extended its losses today as investors recheck the valuation of the local stocks.

The bellwether Philippine Stock Exchange index dived by 1.21 percent or 81.85 points and closed at 6,694.71. The broader all- share index slipped by 0.73 percent or 30.77 points to 4,183.30.

Trading volume reached 1.85 billion shares worth P10.78 billion ($265.38 million) with 98 stocks declining, 53 advancing, and 46 unchanged.

Of the six counters, only the industrial sector bucked the trend.

"The composite index declined for the fourth consecutive session as it sank back to the 6,600 level over concerns on the stocks expensive valuation," brokerage DBP-Daiwa Securities, Inc. said in its daily market wrap.

The brokerage said the Philippine composite index is already trading at 21.45x earnings. The sell-off came even if some companies reported decent 2012 earnings.

Online brokerage 2TradeAsia.com said the absence of inspiring news locally and overseas sent investors to the sidelines.

"With the latest deceleration in turnover, buyers have more time to wait for repositioning, while reviewing entry targets in select shares," 2TradeAsia.com said.

The brokerage advises investors to keep a tab for sudden momentum spikes as the barometers start to consolidate.

Most of the stocks that were sold down belong to the basket of 30-company index.

Among these issues were Ayala Corp., heavyweight Philippine Long Distance Telephone Co. and Ayala Land, Inc.

In other corporate news, Cebu Air Inc., operator of budget carrier Cebu Pacific, said its net income for 2012 declined 1.5 percent on year to P3.57 billion ($87.97 million) on back of higher fuel expenses.

Fuel cost offset the gains in revenue, which in 2012 increased 11.7 percent on year to P37.90 billion ($933.96 million).

The 11.1 percent growth in passenger volume to 13.3 million boosted last year's revenues.