Shares close lower, led by telcos Xinhua Financial News Service
November 14, 2006
(UPDATE) SHARE prices closed lower for the second straight day as investors continued to pocket recent gains, with Philippine Long Distance Telephone Co. and Globe Telecom Inc. among the biggest losers after they hit record highs last week, dealers said.
But advances in conglomerate SM Investments Corp. and Philex Mining Corp. helped the key index recover from the day's lows and trim losses at the close.
The 30-company composite index ended down 20.13 points or 0.71 percent at 2,801.79, after moving between 2,788.33 and 2,822.71.
The broader all-share index fell 6.76 points to 1,726.93.
Losers and gainers were matched at 48 each, while 60 stocks were unchanged.
A total of 3.45 billion shares changed hands worth P2.45 billion.
"The market is overbought, so it's not surprising to see investors taking profits even if the overall sentiment remains bullish," Unicapital Securities Inc. analyst Ron Rodrigo said.
"With the third-quarter results of most blue chips already out, the market is in consolidation mode and looking for fresh leads."
Top-traded PLDT fell P70.00 or 2.78 percent to P2,450.00 on volume of 183,150 shares. Rival Globe Telecom retreated P35.00 or 2.64 percent to P1,290.00.
SM Investments extended its rally, gaining another P12.50 or 4.20 percent to a record high of P310.00 on 152,250 shares. The conglomerate expects to exceed its full-year net profit target of P9.5 billion after its nine-month earnings grew 38 percent to P7.5 billion.
Meralco's A-shares, ownership of which is limited to Filipinos, rose P1.50 or 5.26 percent to P30.00 on 436,900 shares. Its B-shares, which does not have ownership restrictions, jumped P2.50 or 7.69 percent to P35.00 on 1.45 million shares.
The power distributor released a statement during trading hours saying it had signed an underwriting agreement for the issuance of seven-year notes worth P12 billion on Dec. 14, proceeds of which will refinance debt and fund working capital.
Philex Mining edged up P0.10 or 2.27 percent to P4.50 after the company declared a cash dividend of P0.07 per share.
Food and beverage firm San Miguel Corp.'s A-shares were steady at P65.00, while its B-shares fell P0.50 to P73.00.
