Philippine stocks decline on cautious trading

MANILA, Philippines—Most local stocks declined on Monday on thin trade, bringing the index further below 4,300, as the market’s pre-holiday consolidation continued.

The main-share Philippine Stock Exchange index shed 16.16 points, or 0.38 percent, to finish at 4,276.34.

Trading started in positive territory, taking cue from the strong rally on Wall Street on Friday, but ended in the red as investors lacked incentive to go into the market in a big way.

The day’s decline was led by the holding firms and property counters, which respectively dipped by 1.2 percent and 0.93 percent.

Value turnover was scant at P3.64 billion. There were 63 advancers, which were beaten by 94 decliners, while 43 stocks were unchanged.

The day’s decline was led by Megaworld, ALI, SM Investments, AGI, EDC, SMC, Globe and DMCI. There was likewise profit-taking on Lepanto A (for local investors) and LR, while PLDT and ICTSI were unchanged.

“The market is likely to thin further as the week progresses and the holidays approach, with ranges likely to dominate,” investment bank Credit Agricole CIB said.

Credit Agricole said the EU summit deal to tighten fiscal reforms would lead to a significant deepening in economic and fiscal integration, but it remained to be seen, as of Monday, whether it could solve the current crisis.