Philippines share prices closed little changed on Tuesday, supported by bargain-hunting after a sharp five-day downturn on political concerns sparked by allegations of vote rigging and corruption against President Gloria Arroyo, dealers said. They said there was some profit-taking just before the close, which trimmed early gains, clearly reflecting that most investors remain wary of the volatile political situation.
The Philippine Stock Exchange composite index rose 1.35 points to 1.817.02 after hitting a high of 1,831.49 and a low of 1,810.91. Volume was 424.54 million shares worth 2.21 billion pesos (39.37 million dollars).
The broader all-shares index gained 4.13 points to 1,122.31.
Gainers led losers 49 to 22, with 36 stocks unchanged.
The bargain-hunting interest was "mostly because stocks have become cheap," said Mark Alan Canizares of Citiseconline.com.
Arroyo is facing increasing efforts by the opposition to unseat her over alleged cheating in last year's elections. In addition, the Supreme Court on Friday suspended a crucial value-added tax (VAT) law, a key element of the president's policy.
"Some investors initially thought that the court order against the VAT was just part of politics," said James Lago of Westlink Global Equities.
"However, judging from how the Supreme Court has ruled in previous business and economic issues, they are now becoming more convinced that the restraining order against the VAT is for real and that the issue will likely drag on," Lago remarked.
SM Investments was the most active stock and closed up six pesos at 255.
Second top-traded, Philippine Long Distance Telephone fell 15 pesos to 1,525.
Ayala Land gained 20 centavos to 7.10 pesos while its parent Ayala Corp shed 10 pesos to 277.50.
First Philippine Holdings rose two pesos to 38.50.
San Miguel A shares, limited to local buyers, gained 50 centavos to 59.50 pesos while San Miguel B shares, available to foreign investors, advanced 50 centavos to 92 pesos.
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