Philippines shares drop

Philippines share prices closed 0.52 percent lower on Wednesday, extending losses as investors preferred to cash out of the market given persistent political concerns and high crude oil prices, dealers said. They said selective bargain-hunting limited the downside, with some still confident the Philippines has enough economic positives to merit attention, especially recent government efforts to resolve a chronic fiscal deficit.
The Philippine Stock Exchange composite index lost 10.08 points to 1,945.12, the low for the day and off a high of 1,956.25. Turnover was 160.2 million shares worth 1.29 billion pesos (23.1 million dollars).
The broader all-shares index gained 0.18 points to 1,187.20.
Losers outnumbered gainers 40 to 23, while 56 stocks ended unchanged.
The political fallout of President Gloria Arroyo's admission that she improperly called an election official during the May 2004 vote, triggering threats of an impeachment complaint against her, and soaring oil prices were foremost on the minds of investors.
"Given the circumstances we are facing it will be hard to see where the market will go," said Ron Rodrigo of Accord Capital Equities.
"But one thing is for sure, whenever there s an unusual event that affects the market negatively as is happening now, it is the best time to accumulate since most of the prices are at a discount," he added.
Arroyo's opponents accuse her of election cheating. She has apologised for a "lapse in judgement" in calling the official but denied she tried to influence the outcome of the polls.
Astro del Castillo of First Grade Holdings said the market is in a consolidation mode, with politics and higher oil prices weighing on sentiment. "The actions of the president are moves to end this controversy, a step towards mending fences," del Castillo said.
Philippine Long Distance Telephone was the most active stock, closing down five pesos to 1,635. Ayala Land fell 20 centavos to 7.90 pesos, while parent Ayala Corp shed 2.50 pesos to 322.50.
Globe Telecom advanced five pesos to 805.
San Miguel Corp B shares, available to local and foreign investors, fell 1.50 pesos to 9.250. San Miguel A, limited to local investors, was unchanged at 58.50 pesos.