MANILA (AFP) - Share prices closed 1.47 percent lower, continuing to consolidate after recent gains with investors taking profits in select blue chips, dealers said.
Wall Street's weak performance Friday further dampened sentiment, with investors also keeping track of other markets in the region amid fresh concerns of a contracting US economy this year, they said.
The composite index lost 44.07 points at 2,952.32. It traded between 2,996.39 and 2,945.99.
The broader all-share index slipped 20.54 points to 1,846.31.
Losers outpaced gainers 83 to 36, while 42 stocks ended unchanged.
Volume turnover totaled 3.0 billion shares worth 2.1 billion pesos (42.8 million dollars).
"Investors feel smug about breaking the 3,000 level last week; they believe some stocks have already reached their full value and decided to sell, and there appears to be no clear signs of a slowdown in selling at this point," said Lawrence de Leon of Accord Capital Equities Inc.
He said trading losses spurred by heavy selling in blue chips in early trade were cushioned by buying in select second and third liners in late trading.
The sell-off is expected to continue over the short-term as the market is still in a consolidation phase, dealers said.
There were also worries that a weakening of the US economy could adversely affect export-driven economies in the region, like the Philippines, they said.
"While the market has already factored in recent news of a possible contraction of the US economy, this continues to haunt investors," said de Leon.
Other analysts, however, believe the market is just revving up for an eventual breakout into the 3,000 level again.
"The market is just building a base as it challenges the 3,000 mark again to bring this up possibly to the 3,400 level in the first half of the year," said Gomer Tan at Regina Capital Development Corp.
Philippine Long Distance Telephone led the decliners, falling 55.00 pesos to 2,450.00 while its unit, Pilipino Telephone Corp shed 10.00 centavos to 6.80 pesos.
Rival Globe Telecom edged down 10.00 pesos 1,250.00.
Conglomerate Ayala Corp declined 5.00 to 555.00, while its unit property firm Ayala Land Inc also slipped 25.00 centavos to 15.50 pesos.
Food and beverage firm San Miguel Corp retreated. Its A shares, restricted to Filipino investors fell 50.00 centavos to 64.00 pesos, and its B shares, open to foreign investors, slipped 50.00 centavos to 74.50 pesos.
Power distributor Manila Electric Co's A shares were down 1.50 pesos to 57.00 pesos, while its B shares lost 1.00 peso at 58.00.
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