Share prices close lower

PROFIT-TAKING during yesterday’s trade caused most share prices to decline as credit rating downgrades in Europe dampened regional sentiment.

The main-share Philippine Stock Exchange index shed 34.91 points or 0.76 percent to finish at 4,578.92 on thin trade, pulling back for the second straight session

after charting new peaks last week.

The start of Supreme Court Chief Justice Renato Corona’s impeachment trial hardly affected the local market, which tracked the cautious trend across the region.

“It is difficult to see sentiment improving this week, with risk aversion set to remain elevated as euro zone leaders attempt to restore confidence,” investment bank Credit Agricole CIB said in its daily market outlook. “S&P (Standard & Poor’s) rating action was partly expected, but the timing of the announcement and the selective approach among euro zone countries were a bit surprising.”

S&P recently lowered the longterm ratings on Cyprus, Italy, Por- age growth of close to 5 percent. tugal and Spain by two notches, P3.9 billion. There were 67 adGoldman Sachs said the and the long-term ratings on Ausvancers against 91 decliners, growth rate of N-11 countries tria, France, Malta, Slovakia and while 51 stocks were unchanged. and BRICS could accelerate furSlovenia, by a notch. The PSEI was weighed down ther in the decade to 2020, driv

Manny Cruz of Asiasec Equiby profit-taking on PLDT, BDO, ing much of the global econoties, said my.investors worried Metrobank, RLC, SMIC, AC, more about the credit downMegaworld and BPI. For 2012, the investment grades in Europe since this Apart from Semirara, other bank expects the global econocould adversely affect an upPSEI stocks that bucked the my to grow by 3.4 percent. Over coming bond offer by France. day’s downturn were DMCI, the next eight years, the growth

At the local market, the propEDC and Meralco. rate may average at 4.3 percent erty counter, which had perFund manager Gus Cosio, over the next years, led by the formed well in previous sespresident of First Metro Asset N-11 nations and BRICS. sions, succumbed most to profManagement Inc. said the start “Average growth rates sugit-taking, sliding by 1.8 percent. of the impeachment proceedgest that global growth is likely

Only the mining/oil counter ings against Corona could be a to be much stronger in the curwas buoyant as its index rose by “fly in the ointment.” rent decade, at 4.3 percent, 1.18 percent. Investors loaded “While this could go on with than in the past 30 years. This is up on shares of Manila Mining A very little effect on the capital due to the impetus from the (open only to local investors) markets, political issues tend to BRIC economies and the other and B (open to all investors), blind side market participants growth markets,” Goldman Semirara and Lepanto A and B. from time to time,” Cosio said. Sachs said.

Value turnover was light at