(UPDATE) RP shares close 2.5 percent lower


Posted at Jun 11 2008 01:43 PM | Updated as of Jun 11 2008 09:43 PM

Agence France Presse

MANILA - Philippine share prices closed down 2.5 percent Wednesday on continued concerns about inflation and weakness in the US economy, dealers said.

The composite index fell 66.67 points to 2,579.28 points. The all-share index fell 1.67 percent to 1,639.08 points.

Only 23 stocks advanced compared to 87 decliners and 44 unchanged. Turnover fell to 2.797 billion pesos (62.87 million dollars) compared to 4.25 billion pesos in the previous trading day.

The local currency traded at 44.482 to the dollar.

"Inflation is still a major concern even though oil prices have fallen slightly," said Rommel Macapagal of Westlink Global Equities Inc.

"The past few weeks, we have been looking for directions and the direction we got was the big drop on Friday in the US market," he said.

"The next support level is 2,550. Hopefully some bargain hunting could come in and lift us above the 2,600 level," he said.

Telecom giant Philippine Long Distance Telephone Co. fell 4.1 percent to 2,335 pesos. Top conglomerate Ayala Corp. dropped 4.9 percent to 290 pesos. Bank of the Philippine Islands fell 1.01 percent to 49 pesos.

San Miguel Corp. saw its A shares, available only to Filipinos, fall 2.4 percent to 40.50 pesos while its B shares, which are available to foreigners, were unchanged at 41 pesos.