Philippine shares close 0.6 per cent lower

Philippine share prices closed 0.6 per cent lower on Monday as investors stayed on the sidelines amid deepening domestic political concerns, dealers said.

Renewed calls for President Gloria Arroyo to step down amid corruption allegations involving her husband and some allies is causing some unease within the market, they said.

The composite index fell 19.60 points to 3,163.25, after moving between 3,159.71 and 3,182.85. Volume reached 988.4 million shares worth 1.8 billion pesos (45 million dollars).

There were 43 advancers and 44 decliners, while 57 were unchanged. The broader all-share index lost 9.02 points to 1,933.64. The peso traded at 40.70 to the dollar. “Friday’s rally was an eye opener for investors,” said Conrado Bate of CitisecOnline, referring to the anti-government rally where more than 3,000 people trooped to Makati, the country’s financial district, to demand the resignation of Arroyo.

“The kind of momentum stirred by the recent expose is now the focus of most investors,” said Bate.

Francisco Liboro of PCCI Securities said Wall Street’s mixed performance on Friday also failed to provide any real direction to regional markets.

“Recent market volatility will remain as investors will continue to look for telltale signs of the US economy’s health in forthcoming indicators.”

Philippine Long Distance Telephone shed 15 pesos to 2,920. Ayala Corp lost five at 452.50. San Miguel was unchanged at 51 for A shares and 51.50 for B shares.