Philippine stocks fall, taking cue from Wall Street correction

MANILA, Philippines—The local stocks index swung back to negative territory on Wednesday as investors took their cue from an overnight correction in Wall Street while quarter-end local window-dressing activities were muted.

The main-share Philippine Stock Exchange index closed 10.44 points, or 0.21 percent, lower at 5,067.66 in mixed trade.

“We should not expect widespread window dressing this time.  Prices are already high.  There’s no need for window-dressing except in certain cases,” said Joseph Roxas, president of Eagle Equities Inc.

The market was weighed down by the industrial, holding firm, property and mining/oil counters. On the other hand, overall losses were tempered by the modest gain eked out by the financial and services.

Value turnover amounted to P6.74 billion. There were 78 advancers, which were beaten by 88 decliners, while 40 stocks were unchanged.

AGI, AC, BPI, Megaworld, SM Prime and Cebu Air contributed to the PSEi’s decline.

Puregold and GMA Holdings also ended in the red.  Investors traded Puregold with caution after the company announced its acquisition of upscale S&R Membership Shopping at a price, which some believed to be costly.

On the other hand, PLDT, SMIC, Aboitiz Power, JG Summit, RLC, Globe Telecom and ICTSI curbed the PSEi’s losses. Cebu Holdings, Nickel Asia, Security Bank and Petron also traded higher in heavy volume.

Cebu Holdings shares went up by 1.57 percent to P8.41 per share after Ayala Land Inc. said it’s comfortable with its 47.35 percent stake in the property developer and open to raise its stake if there’s an opportunity. ALI, however, said it’s not necessarily aiming for a majority stake in the company.

Nickel Asia shares went up by 7.8 percent to P33.20 after it reported a 129 percent rise in 2011 net profit to P3.54 billion. The nickel miner benefited from higher ore output from four operating mines alongside lofty nickel prices.

Overnight, the Dow Jones industrial index pulled back by 43.9 points, or 0.33 percent, to 13,197.73.  A dip in US consumer confidence index added to the sluggish trading in Wall Street overnight.