Philippines share prices closed little changed on Thursday, holding at eight-month highs despite some profit-taking after recent sustained gains, dealers said.
The market has rallied in recent days after the government finally implemented a long-delayed expanded value-added tax (VAT) which most economists say is needed to avoid a looming fiscal crisis.
The Philippine Stock Exchange composite index rose 1.84 points to 2,099.14 after trading between 2,089.10 and 2,125.90 points. Volume was 972 million shares worth 1.34 billion pesos (24.53 million dollars.). Gainers led losers 49 to 39, with 41 stocks unchanged. The all-shares index rose 3.38 points to 1,268.77.
The Philippine peso was at 54.709 to the dollar as of mid-day.
"Profit-taking has set in, which is expected given the strong gains over the past few days," said Lawrence de Leon of Accord Capital Equities Inc.
However the pause on Thursday does not mean that the rally has come to an end as investors are still encouraged by upbeat third quarter earnings as well as the recent passage of the expanded VAT.
Additionally, with the VAT law, the market will be looking for a potential upgrading of sovereign rating outlooks in coming months, dealers said.
Bank of the Philippine Islands, the most actively traded stock, was up 50 centavos at 61 pesos.
Philippine Long Distance Telephone added five pesos at 1,835 pesos.
Manila Electric Co's B shares, available to local and foreign investors, fell 50 centavos to 22 pesos while its A shares, exclusive to locals, retreated 25 centavos to 14.50 pesos.
San Miguel Corp's B shares were down 50 centavos at 89.50 pesos while its A shares were steady at 65 pesos.
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