RP shares flat as players see more rate increases

MANILA, Philippines - Philippine share prices on Friday ended flat following the decision of the Bangko Sentral ng Pilipinas (BSP) to hike lending rates to tame rising consumer prices. Investors based their position on expectations that the BSP will further lift rates to control inflation, analysts said. The 30-company Philippine Stock Exchange index dropped 4.10 points or 0.1713 percent to 2,389.52 while the all-share index gained 0.95 points or 0.0627 percent at 1,516.83. Losers edged out gainers 41 to 40 while 50 stocks were unchanged. Volume traded reached 1.472 billion valued at P2 billion. Astro del Castillo, First Grade Holdings managing director, said although investors found relief in stabilizing oil prices, the BSP’s move to hike rates by 50 basis points drew off funds from the equities market. “(Thursday’s) increased in rates siphoned liquidity from the market," he said. Lawrence de Leon, Accord Capital trader, said the rally in Wall Street lifted local sentiments but early gains on Friday’s sessions were erased on expectations of more rate hike from the BSP before the year ends. “The market rally in the US helped boost local sentiment early in the session but it was later taken over by sellers expecting more future rate hikes by the BSP," de Leon said. The Dow Jones industrial average rose more than 200 points on Thursday following oil 's fall to $130-a-barrel level. On Friday, property giant Ayala Land Inc. slid P0.30 or 3.4091 percent to P8.50. Telecommunications giant Philippine Long Distance Telephone Co. rose P10 or 0.4175 percent to P2,405. Metropolitan Bank & Trust Co., the country's largest lender in terms of assets, plunged P1 or 3.1746 percent to P30.50. Globe Telecom Inc., the country's second-largest telecommunications company, leaped P15 or 1.5 percent to P1,015. Ayala Corp., the country's largest business group, surged P2.50 or 0.9804 percent to P257.50. - GMANews.TV