Absence of market-moving news dampens stocks

Philippine stocks closed virtually flat yesterday following a mixed bag of US and European economic reports and as oil prices rose to a new nine-month high.

The main Philippine Stock Exchange index was little changed, down less than half a point to close at 4,893.

A total of 14.17 billion shares valued at P9.64 billion changed hands during the morning and afternoon sessions.

Decliners led advancers 111 to 59, with 39 issues closing unchanged.

Crude climbed above $108 a barrel and the dollar weakened against the euro but rose against the yen.

According to an associate of Summit Securities Inc., the market was like a roller coaster ride, with the PSEI opening on a strong note before a wave of selling came, followed by another wave of buying near the close.

“There was profit- taking, but investors bought up the market toward the closing, said Mark Angeles, head of research at First Metro Securities Brokerage Corp.

Friday’s trading was marked by speculation in selected issues, according to Summit and First Metro.

In other markets in Asia, Japan’s Nikkei 225 climbed 0.2 percent to 9,647.38 and South Korea’s Kospi added 0.4 percent to 2,015.93. But Hong Kong’s Hang Seng rose 25.87 points to 21,406.90.

Australia’s S&P/ASX 200 was 0.4 percent higher at 4,303.90 and mainland China’s Shanghai Composite Index was up 0.3 percent to 2,417.15. Some markets swung back and forth between positive and negative territory in early trading.

Asian investors were cautious even after US stocks climbed following a report that said jobless aid applications fell to a four-year low helped.

Offsetting the optimism was a European Commission forecast that the combined economies of the 17 nations that use the euro would shrink in 2012, raising concerns that austerity programs are holding back growth.