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LOCAL share prices closed lower Thursday as investors locked in
profits after the US Federal Reserve warned of possible recession in
the world’s largest economy, dealers said.
They said Federal Reserve Chairman Ben
Bernanke’s warning that a US recession was possible had sparked
caution, but news that a major casino project was being planned in
Manila provided buying support.
The composite index lost 13.50 points to
3,034.81.
The all-share index was down 2.55 points or 0.1
percent at 1,858.65.
There were 52 decliners and 43 advancers, while
48 were steady.
Volume totaled 1.42 billion shares valued at
P3.0 billion. The peso traded at 41.50 to the US dollar.
Wall Street closed slightly lower on Wednesday
after Bernanke said the US economy may contract in the first half,
suggesting the world’s biggest economy is already in recession.
“Markets have been pricing in a US recession,
that’s why the negative reaction to Bernanke’s warning was
muted,” said Lawrence de Leon, an analyst at Accord Capital
Equities.
“The question now is whether this recession is
going to be shallow and less painful or a long one and will require
additional aggressive measures from the Fed,” de Leon said.
“While recession concerns persist, global
markets are also worried about inflation,” he said.
Philippine Long Distance Telephone Co., the
country’s biggest company by market value, was down 0.4 percent at
P2,800.
Food and drinks conglomerate San Miguel
Corp.’s A-shares, reserved for Filipinos, fell 4.4 percent to P44.
Its B-shares, which have no ownership restriction, were steady at
P47.
-- AFP
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