telecommunications in the Philippines

MANILA, Philippines – Share prices on Friday closed slightly lower as investors turned bearish owing to a number of bad news, analysts said.

The bellwether 30-company Philippine Stock Exchange index slid 6.18 points, or 0.3316 percent, to 1,857.34 while the broader all-share index dropped 6 points, or 0.4965 percent, to 1,202.41.

The negative market sentiment was reflected by the number of issues which retreated. Losers dominated gainers, 54 to 25, while 35 stocks were unchanged.

Four of the six sectors slipped, led by the 1.4152-percent fall by Financials and 1.1366-percent decline by 3,261.75. Holding Firms and Services also ended lower.

Industrial and Property, meanwhile, gained 1.2833 percent and 0.5444 percent, respectively.

Volume traded was lower with 716.48-million stocks worth P1.239 billion changing hands.

Analysts said signs of deeper and wider impact of the global turmoil to the Philippine economy spooked fund managers.

American semiconductor giant Intel Corp. has announced that it will be closing its Cavite plant, which employs about 1,800 workers, within the year.

The National Economic and Development Authority has also projected that the Philippine economy likely posted a sluggish growth of 3.6 percent to 4.4 percent in the last three months of the year. For the full year of 2008, NEDA said the Philippines' gross domestic product likely grew by 4.2 percent to 4.5 percent, lower by three percentage points than the 7.2-percent expansion in 2007, a three-decade high for the Philippines.

"There was negative sentiment with news of layoff and a weakening economy," said Jose Vistan, AB Capital Securities research chief.

He added that the local bourse continued to follow the lead of other markets. Asian markets were trading lower while Wall Street suffered over a 100-point decline as economic data indicated a further deteriorating US economy.

However, Vistan said that while some fund managers were selling some stocks, other traders were accumulating.

"There are still technical support for Dow Jones and the local bourse, which are at current levels," he added.

East zone concessionaire Manila Water Co. Inc., the top-traded stock for the day, leaped P1 or 10.5263 percent to P10.50.

Telecommunications giant Philippine Long Distance Telephone Co. dropped P10 or 0.4831 percent to P2,060 while rival Globe Telecom Inc. lost P5 or 0.641 percent at P775.

Ayala Corp., one of the country's largest business groups, tumbled P6 or 2.8708 percent to P203.

Bank of the Philippine Islands, one of the country's top lenders, shed P0.50 or 1.3333 percent at P37.