Philippines shares soften

Philippines share prices closed easier in sluggish trade on Monday, dropping 0.15 percent as investors consolidated positions in the absence of fresh leads, dealers said.
They said the tone continued cautious given prevailing political concerns sparked by opposition efforts to oust President Gloria Arroyo over allegations she cheated in last year's presidential polls.
The composite index fell 2.86 points to 1,949.42 after trading in a narrow six-point range. Turnover was 279.15 million shares worth 663.3 million pesos (11.89 milion dollars).
The broader all-shares index retreated 2.29 points to 1,181.87.
Losers led gainers 45 to 19, with 39 stocks unchanged.
"In the absence of fresh market-moving news, the market will likely continue in consolidation mode," said Astro del Castillo of First Grade Holdings.
Dealers said the impact of recent dividend announcements on trading had faded quickly as political and security concerns remained.
Investors were likewise awaiting the fate of the new expanded value-added tax law, a crucial government revenue measure.
It was supposed to have come into force in July but has been held up by legal challenges.
The market will probably trade in a range of 1,925-1,970 points, with the prospect of further central bank interest rate increases also weighing on the market, said Jonathan Ravelas of Banco de Oro Universal Bank.
The central bank is expected to raise benchmark overnight rates again after two increases this year given increasing domestic liquidity and to keep the interest rate differential between Philippine and US assets.
Top-traded Bank of the Philippine Islands ended down one peso to 52.50.
Philippine Long Distance Telephone rose five pesos to 1,665.
SM Investments fell two pesos to 217 while unit SM Prime Holdings was unchanged at 7.30 pesos.
Globe Telecom advanced five pesos to 735, while parent Ayala Corp was unchanged at 292.50 pesos. Ayala Land was steady at 8.60 pesos. San Miguel B, available to all investors, was up 50 centavos to 92 pesos. San Miguel A, limited to local investors, was down 50 centavos to 65 pesos.