Philippine Shares Slip on Profit-Taking

Philippine shares declined Monday as investors locked in profits from last week's gains.

The 30-company Philippine Stock Exchange Index dropped 11.65 points, or 0.4 percent, at 3,234.16, after rising 1.6 percent Friday.

The profit-taking may have been stoked by a renewed concern over a possible rate hike by the U.S. Federal Reserve, said BPI Securities assistant vice president Spencer Yap.

Philippine financial markets will be watching closely Federal Reserve Chairman Ben Bernanke's testimony later this week. Any change in U.S. interest rates may impact local interest and exchange rates.

Philippine Long Distance Telephone Co. was the most active, off 1.2 percent at 2,520 pesos following the 0.3 percent loss in the company's American depository receipts in New York.

The PLDT also lost on concerns over 2006 earnings, after its rival Globe Telecom Inc. last week reported lower-than-expected 2006 gains.

Globe was down 0.4 percent at 1,355 pesos.

Filinvest Land shed 3.3 percent at 1.76 pesos on profit-taking after the housing concern's successful listing last week to cap a recent share offer.

Decliners led advancers 56 to 50, while 54 stocks were unchanged.

The peso weakened in line with the U.S. dollar's broad strength after Federal Reserve officials hinted of possible rate hikes.

The dollar closed at 48.365 pesos, up from 48.305 pesos Friday.

AP