Manila stocks little changed on political nerves

The Philippine stock market closed almost unchanged on Monday, with investors taking profits on some blue chips as they eyed nervously an attempt by the opposition to unify ahead of May 10 national elections.
Traders said players turned cautious following reports that deposed President Joseph Estrada would try to convince actor Fernando Poe Jr and Senator Panfilo Lacson to unify and come up with one opposition candidate for the May presidential elections.
The business sector generally favours a second term for President Gloria Macapagal Arroyo, a trained economist, as the best way to ensure economic reforms.
"There was profit-taking, with uncertainties fuelled by reports of a unification in the opposition," said Jose Vistan, analyst at AB Capital Securities Inc.
"There are also domestic peace and order concerns after the attack at the Shell office," he said.
Suspected members of a leftist militant group fired a grenade at the Manila headquarters of oil firm Pilipinas Shell Petroleum Corp on Sunday and sprayed the building with bullets.
No one was injured from the attack, police and company officials said.
The Philippine stock index inched down 0.63 point or 0.04 percent to 1,497.48 points, leaving the market up 3.82 percent so far this year.
Turnover climbed to 451.7 million pesos ($8.09 million pesos) against 317.10 million pesos on Friday.
Losers were in a two-to-one majority.
Vistan said there was still some room for a downward correction, but that good first-quarter profits should then fuel another rally.
Strong resistance was seen at the 1,500 level, with support at 1,450 points.
Philippine Long Distance Telephone Co, the country's dominant phone firm, gained 15 pesos or 1.44 percent to 1,060 pesos. The stock accounted for nearly 40 percent of the market's trading volume.
Manila Electric Co's B shares open to foreign investors slipped 3.57 percent or one peso to 27 pesos. Its A shares open to all investors gained 1.35 percent or 25 centavos to 18.75 pesos.
The company, the country's largest power distributor, said it plans to raise $600 million by converting unsecured loans into bonds.
It will use the proceeds to fund capital projects from 2004 to 2006, refinance long-term unsecured loans and convert unsecured short-term debt to long-term secured debt.