Greece stalemate keeps stock prices flat

PHILIPPINE share prices on Wednesday closed flat as investors stayed on the sidelines awaiting further developments in Greece.

At the Philippine Stock Exchange, the composite index slid 3.46 points or 0.07 percent to 4,772.47, while the broader all-shares slipped 1.03 points or 0.03 percent to 3,234.97.

The six subindices also closed mixed with the market dragged by the losses in the mining and oil, holdings firms and property counters. The financials, industrial and services counters posted modest gains.

Decliners beat advancers, 81 to 72, while 45 stocks were unchanged. A total of 4.98 billion stocks worth P6.87 billion changed hands.

“The local market traced a similar path the Dow took overnight, spending most of the session in the red but rallying enough in the latter part to end the day flat,” said Jun Calaycay of Accord Capital Equities Corp.

Market sentiment was further boosted by China’s vow to continue investing in euro zone government debt despite the recent downgrades of six zone economies’ credit ratings and the negative outlook for Paris and London, Calaycay added.

Overnight, the Dow Jones industrial average rose by 4.24 points or 0.03 percent to 12,878.28 after a meeting of European finance officials to discuss Greece’s second international bailout was called off, coupled with disappointing retail sales.

But investors became hopeful that the Greek debt problem will be re-

solved following reports that Athens expressed willingness to commit spending cuts and reforms as demanded by international lenders in exchange for a financial lifeline to avoid a default.

The local market will most likely continue to track the movements of global bourses with corporate stories providing a source of trading direction, Calaycay said.

“However, encouraged by the movement Wednesday, specifically the validation of the 4750-support, the weaker trades on the decline and the late recovery off the intraday low, we may expect buyers to begin stepping into equities, hunting for fundamental bargains,” he added.