(UPDATE) Bourse continues downward trek on conflict in Iraq

MANILA, Philippines (Xinhua) - The Philippine stock market continued its downward trek today as conflict in Iraq occupies investors' minds.   

The bellwether Philippine Stock Exchange index fell by 0.79 percent, or 53.52 points, to 6,704.93, while the broader all-share index lost 0.68 percent, or 27.66 points, to 4,030.14.

Trading volume reached 1.57 billion shares worth P7.69 billion ($174.97 million) with 131 stocks declining, 53 advancing, and 35 were unchanged.

All six counters were down.

"Investors' collective mind remains wrapped on the intensifying conflict in Iraq," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

On Monday night, U.S. stocks showed little conviction and ended the session flat, while Atlantic, European shares retreated.

Calaycay, however, added that despite all the rising pessimism over the short term, the longer term view on the Philippine economy remains rather bullish.

While the surprise 5.7 percent gross domestic product for the first quarter raised some questions on sustaining last year's growth trajectory, the Standard and Poor's continues to be confident of the Philippines.

For now, the analyst said investors will be watching the next move of the local central bank as far as interest rates are concerned, although bets on keeping interest rates level have gained.

Stocks in the 30-company were mostly down. These include heavyweight Philippine Long Distance Telephone Co., Ayala Land, Inc., and Banco de Oro Unibank, Inc.