Philippine shares outlook - Lower as credit concerns resurface

Philippine shares outlook - Lower as credit concerns resurface

	Published : Thu, 25 Oct 2007 01:53 By : Agencies Print this Story

MANILA (Thomson Financial) - Philippine shares may open weaker on Thursday as investors turn cautious after the market's

two-day advance, with credit concerns resurfacing and weighing on global markets.

Wall Street and European markets ended lower overnight following a bigger-than-expected writedown at Merrill Lynch because of its exposure to the US subprime mortgage market and a sharp drop in US existing home sales

However, Wall Street closed off intraday lows amid hopes for a cut in the Federal Reserve's

discount rate ahead of its policy meeting next week.

Manila's composite index finished up 66.30 points or 1.8 percent at 3,763.47 on Wednesday.

Investors are likely to be tentative ahead of the public holidays next week. Philippine markets will be open for only two days - Oct 30 and 31.

'Some profit-taking may ensue, as we retest the 3,800 level. The shorter trading week next week may see investors sidelined,' BPI Securities said in a note.

Stocks to watch are Philippine Long Distance Telephone (PLDT), property developer Ayala Land and broadcaster GMA Network.

PLDT reaffirmed Wednesday its guidance for 2007 core earnings, which it lifted in July to 34 billion pesos from 32 billion pesos previously, with its mobile phone subscriber base expected to continue growing.

Ayala Land, which advanced for two straight days following Monday's selloff, rejected

Wednesday police suggestions that an accidental gas explosion led to last week's deadly blast that killed 11 people at one of its shopping malls.

GMA Network reported a 7 percent increase in third-quarter net profit on higher revenue from advertisements and its subscription business abroad.

(1 US dollar = 44.28 pesos)

enrico.delacruz@thomson.com

ed/ms

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.