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PHILIPPINE share prices closed lower on Tuesday amid
continuing concerns over US subprime mortgages which have raised
fears of a credit crunch in the financial markets, dealers said.
They said the index initially
gained 17.1 points in early trading but this was later reversed amid
concerns about the magnitude of the subprime problem.
The composite index fell 3.47
points to 3,263.56 after trading between 3,284.13 to 3,257.36
points. The all-share index fell 9.20 points to 2,088.15. There were
85 decliners and 34 gainers, while 52 stocks were unchanged on
volume of 2.2 billion shares worth P3.3 billion. The local currency
traded at 45.643 to the dollar.
“A lot of investors are just
sitting on the bench and awaiting new developments in major markets.
Clearly the nervousness is still there, despite the concerted moves
by major central banks to inject more liquidity into their banking
systems,” said Lawrence de Leon of Accord Capital Equities.
“But there are signs that the
selling pressure has begun to taper off and we expect buying support
to emerge again at 3,200 points,” he said.
Banking stocks were a key drag,
with shares in Metropolitan Bank and Trust, the nation’s biggest
lender by assets, down P2.50 to P55.50. Bank of the Philippine
Islands fell 50 centavos to P60.50 and Banco de Oro retreated P2 to
P56.
Bucking the trend in the broader
market, Ayala Corp. rose P7.50 to P457.50. The conglomerate said
Monday its first-half net profit rose 57 percent from a year earlier
to P11.5 billion, helped by strong gains in its core businesses such
as banking, telecommunications and property.
Globe Telecom jumped P50 to
P1,350 after Globe president Gerardo Ablaza said Monday the company
has raised its capital expenditure budget for this year to $400
million from $350 million. Philippine Long Distance Telephone Co.
rose P10 to P2,580.
San Miguel saw its A and B shares
remain unchanged at P68 and P70 respectively.
--AFP
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