Philippine shares end lower Monday


  • Business
  • Monday, 14 Jul 2003

MANILA, Philippines (AP) - Philippine shares ended lower Monday, extending their correction after a recent rally, with investors selling San Miguel on an anti-graft court ruling that could have an impact over control of the company. 

Blue-chip Philippine Long Distance Telephone also succumbed to profit-taking after its American depositary receipts retreated in New York Friday. 

The 30-company Philippine Stock Exchange Index fell 14.44 points, or 1.1 percent, to 1,256.33, extending its retreat to a fourth straight day after breaching the 1,300 level early last week. 

The broader All Shares Index also slipped 6.05 points to 732.54. 

Losers beat gainers 44 to 15, with 32 issues unchanged. 

San Miguel led losers after an anti-graft court ruling Friday awarded to the government the disputed control of United Coconut Planters Bank, the administrator of an investment fund that owns a 27 percent stake in San Miguel. 

San Miguel's A shares, which are exclusive to Filipinos, lost 3.7 percent to close at 52 pesos, while its widely traded B shares ended 3.2 percent lower at 60 pesos. 

"The concern over San Miguel is adding to the selling pressure,'' Joey Roxas, president of Eagle Equities Inc., told Dow Jones Newswires. 

"The government has a track record of not running enterprises well, while Chairman Eduardo Cojuangco has run San Miguel well. 

You take away someone who has done well and you see investors fleeing from the stock,'' Roxas added. 

PLDT's shares headed south to reflect a nearly 2 percent decline Friday in its depositary receipts. PLDT shares closed 2.7 percent lower at 540 pesos. 

Analysts believe the market will continue its retreat, although buying is expected to emerge as the main index approaches 1,200. - AP

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