Share prices on Tuesday declined as investors stayed on the sidelines on lack of positive leads, analysts said.

The 30-company Philippine Stock Exchange index dropped 7.01 points or 0.2569 percent to 2,721.52 while the all-share index slipped 3.98 points or 0.237 percent to 1,675.47.

Losers trounced gainers 72 to 26 while 48 stocks were unchanged.

Volume traded reached 807.252 million valued at P2.162 billion.

Lawrence de Leon, Accord Capital trader, said the local bourse is still “consolidating despite the sharp gains made by Dow Jones overnight.”

Dow Jones jumped by nearly 300 points overnight on optimism that the ailing US financial sector will soon recover.

“Investors are waiting for positive developments especially following the statement from the National Economic and Development Authority that economic growth this year may only be between 5 percent and 5.5 percent,” he said.

Socioeconomic Planning Secretary Ralph Recto on Monday said he expects the Development Budget Coordination Committee to further slash growth rates target of 5.5 percent to 6.4 percent owing to the US economy’s weakness.

De Leon added that with consumer prices continuing to rise, monetary officials are also expected to further raise interest rates.

“With the Christmas season approaching, inflation will further climb and may force the BSP to jack up rates to curb higher prices of goods and services,” he added.

On Tuesday, Telecommunications giant Philippine Long Distance Telephone Co. rose P35 or 1.2704 percent to P2,755.

Philex Mining Corp., the country’s largest miner, slid P0.10 or 1.3333 percent to P7.40.

Developer Megaworld Corp. dipped P0.04 or 2.5641 percent to P1.56.

Globe Telecom Inc., the country’s second-largest telecommunications company, tumbled P20 or 1.8265 percent to P1,075.

Source