Philippine bourse closes lower on lack of positive leads

The Philippine stock market opened the week lower on lack of positive leads. The bellwether Philippine Stock Exchange index dived by 2.95 percent or 188.01 points to 6,191.80, while the broader all-share index retreated by 2.16 percent or 83.02 points to 3,758.23. Trading volume reached 2.04 billion shares worth 36.37 billion pesos (835.41 million U.S. dollars) with 109 stocks declining, 35 advancing, and 37 were unchanged. Of the six counters, only the services sector bucked the trend. "Friday's closing trades across global markets left investors wanting for positive leads beyond possible window-dressing," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment. Asian markets were mixed, Europe slipped by a margin, and U.S. stocks fell as the budget and the debt extensions remained in the balance. "Beyond these externalities, local investors have also set aside the improving picture of the domestic economy and earnings momentum of listed firms," Calaycay said. The analyst noted the market's hesitation to make a stronger commitment to equities is not unreasonable given the uncertainties globally. Fiscal concerns in the U.S., he said, is hounding investors especially the prospect of a shutdown of some federal agencies. Nevertheless, Calaycay said the latest drop of the market can open invitation for a possible fourth quarter surge. Stocks in the 30-company index went down. These issues include Ayala Corp., Ayala Land, Inc., and Alliance Global Group, Inc.