SHARE PRICES continued their decline yesterday as the market followed Wall Street’s fall due to worries about the US credit crisis.

Investors were not making aggressive moves as they await government announcement of third-quarter economic growth on Thursday, dealers said.

The benchmark Philippine Stock Exchange index (PSEi) lost 0.37% or 13.1 points to close at 3,524.19, off the day’s low of 3,506.95. The broader all-share index also fell by 0.4% or 8.58 points to 2,148.27.

Trading volume reached 8.07 billion shares worth P61.44 billion. Losers beat gainers 70 to 32, while 55 stocks were unchanged.

Jose Vistan, of AB Capital Securities said the local bourse had tracked Wall Street’s 240-point decline overnight, but managed to limit its losses in anticipation of better growth data.

"We did relatively well given the big drop in the US market and more bad news about its credit sector. What kept the market afloat was that investors were looking forward to the gross domestic product numbers, which are expected to be better," he said.

Mr. Vistan said the government appeared optimistic of meeting its 7% growth target this year. "If the figures are better than expected, it could spark a rally. But for now, we will continue to follow the lead of the US market," he said.

Grace Cerdenia of online brokerage 2TradeAsia said the market had tracked the Dow Jones, but movement was limited.

She said all Asian markets fell as a result of US market’s on and off recovery due to concerns about the effects of the credit crunch.

Ms. Cerdenia said investors might have already factored in the growth figures after the central bank said the country’s economic situation is different from the US.

"I see that there could be gradual bargain hunting as the PSEi settles at the 3,500 level. We’ll take our cue from the US and regional markets," she said.

"The market was flat. The market’s fall started with the sentiment from the US, so we just followed. But I believe this is still part of a medium-term consolidation," said Harry Liu of Summit Securities. He said he expects a rally in local equities since the market is already at its oversold level. He placed support at 3,450 and 3,500 and resistance at 3,650.

Almost all sectors declined at yesterday’s trading. The mining and oil index went down by 0.68% or 56.7 points to 8,330.66, while holding firms slid by 1.46% or 29.63 points to 1,999.34. Property shares also lost 0.71% or 11.32 points to 1,582.84, while the financial index gave up 0.8% or 6.9 points to 851.84.

Bucking the trend, the service index added 0.31% or 5.63 points to 1,802.76, while industrial stocks finished 0.02% or 0.85 point higher at 4,059.33.

Top-traded eTelecare Global Solutions, Inc. was 4.76% or P22.50 weaker at P450, while property developer Ayala Land, Inc. shed 1.59% or 25 centavos to P15.50. Lopez-controlled Manila Electric Co. went down by 0.71% or 50 centavos to P69.50, while Andrew Tan-led holding firm Alliance Global Group, Inc. shed 1.82% or 10 centavos to P5.40.

Meanwhile, index heavyweight Philippine Long Distance Telephone Co. rose by 0.17% or P5 to P3,010, while rival Globe Telecom, Inc. advanced by 1.35% or P20 to P1,500.

A shares of conglomerate San Miguel Corp. lost 3.41% or P1.50 to P45.50, while First Philippine Holdings Corp. lost 3.28% or P2 to P63. Metropolitan Bank and Trust Co. and GEOGRACE Resources Philippines, Inc. were flat at P54.50 and P1.86, respectively.

[Business World Online]