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LOCAL shares prices closed lower Wednesday amid fresh concerns about
problems in the US home loans market which pushed Wall Street down
sharply overnight, dealers said.
The US worries have overshadowed the positive
outlook for the Philippine economy, they said.
The Philippine Stock Exchange composite index
fell 74.75 points at 3,426.45 after trading between 3,501.20 and
3,422.10 points. This was its weakest finish since May 30 when it
had settled at 3,398.55.
The all-share index fell 46.61 points or 2.1
percent to 2,222.35.
Declines led gains 105 to 23, with 43 stocks
unchanged.
Volume was 3.2 billion shares worth P11.7
billion.
Volume was boosted by large transaction in
Philippine National Bank (PNB), which resumed trading Wednesday
after a follow-on stock offer.
The peso was at 45.563 to the dollar.
“The problem is the deteriorating sub-prime
mortgage sector in the US. It looks like investors view it as just
the tip of the iceberg,” said Jose Vistan of AB Capital
Securities.
He said given the current nervousness in major
markets, “most investors here have decided to take a more cautious
stance and wait for things to clear up before coming back.”
PNB, the most actively traded stock, fell P6 to
P59.
“It’s a case of bad timing but this is only
a temporary setback. PNB is a turnaround story, its growth is coming
from ground zero,” Vistan said.
Market leader Philippine Long Distance Telephone
retreated P75 to a two-month low of P2,520.
Among other big losers were conglomerate Ayala
Corp., down P15 at P515, and unit Bank of the Philippine Islands,
down P2.50 at P63.
--AFP
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