Today’s Stock Buzz- August 8, 2009

Prices dive as investors continue pocketing gains

Without any leads to spur buying, investors again pocketed profits on Friday, sending share prices down.

The benchmark Philippine Stock Exchange index slipped by 2.04% or 58.23 points to 2,782.98, while the all-shares index declined by 1.56% or 28.17 points to 1,771.12.

A total of 5.22 billion shares worth P2.84 billion were traded, with net foreign buying at P89 million. Decliners led advancers 80 to 40 while 46 stocks did not move.

“The market experienced a major correction after rallying so much in the past. But this should be seen as something healthy since this would give investors a chance to enter,” Jeng T. Calma of A&A Securities, Inc. said.

She said stocks might rally again but it is hard to say when considering now is the “ghost” month of August, when stocks normally slump. She advised investors not to do heavy buying but to instead accumulate stocks slowly.

Ms. Calma, however, said it is unlikely the market would go below 2,700 since there is a strong support at this level as shown by the market’s past behavior.

US stocks, meanwhile, closed lower on Thursday night — giving no clues to investors — ahead of the release of employment data for July.

The Dow Jones industrial average lost 0.27% or 24.71 points to 9,256.26, while the Standard & Poor’s 500 index declined by 0.56% or 5.64 points to 997.08. The Nasdaq composite index slid by 1% or 19.89 points to 1,973.16.

At home, the service sector dipped by 3.18% or 46 points to 1,400.45, while holding firms declined by 2.39% or 36.79 points to 1,497.28.

Industrial shares lost 2.37% or 102.40 points to 4,212.52, while financial shares was down by 1.87% or 11.43 points to 599.02.

Property stocks slipped by 0.13% or 1.28 points to 975.56.

Mining and oil stocks, on the other hand, climbed by 6.72% or 480.89 points to 7,630.86.

Blue chips closed mixed, with the Manila Electric Co. tumbling by 4.47% or P11 to P235 and index heavyweight Philippine Long Distance Telephone Co. dipping by 4.11% or P105 to P2,445.

The Bank of the Philippine Islands lost 2.17% or a peso to P45.

Metropolitan Bank & Trust Co. and Andrew Tan-led Megaworld Corp. did not move at P39 and P1.34 per share, respectively.

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