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Tuesday, October 26, 1999
 
AC ( 10/26/1999 : AFX )
Ayala Corp share prices were off lows on technical factors after the stock fell sharply beginning yesterday over the prospect of higher interest rates, dealers said. At 10:34 am, Ayala Corp was unchanged at 8.70 pesos after a low of 8.20 on 5.2 mln shares. The composite index was down 0.54 points at 1,919.12 on 297.6 mln shares worth 1.2 bln pesos. An analyst from a local brokerage said Ayala Corp managed to pull out of its lows due to technical factors. "It had been going down since yesterday," the analyst said, noting that he expects the stock to sustain its recovery. Orion-Squire Capital analyst Rodel Domdom said Ayala Corp was earlier pressured down by continued foreign selling. He said market sentiment was adversely affected by the prospect of higher interest rates amid rising inflation. "I think investors were reacting to the rise in interest rates, particularly Treasury bill rates at yesterday's auction," he said. He said another factor that pulled down the share price was the expected decline in third quarter results. "Most corporate earnings are headed downward," he said, noting that Ayala Corp is not an exception. Securities 2000 analyst Erwin Balita said Ayala Corp was moving in line with the overall market. "There's nothing wrong with Ayala Corp. Investors have factored in that there will be not much change in corporate earnings. Everybody is expecting flat growth for the third quarter," Balita said, noting that investors were liquidating their position in many blue chips. He said the expected rise in interest rate is generally viewed to hurt most businesses, fuelling the selling pressure.
- posted by StockMarket @ 4:12 PM


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