Philippines share prices closed 0.81 percent lower on Tuesday on a pick up in political tensions and higher-than-expected inflation in November, dealers said.
They said concern was raised over the appearance in Congress on Wednesday of former elections commissioner Virgilio Garcillano who the opposition accuses of conniving with President Gloria Arroyo to steal last year's election.
The Philippine Stock Exchange composite index fell 17.15 points to 2,099.15 after trading between 2,086.77 and 2,116.30.
Volumes reached 473.2 million shares worth 1.06 billion pesos (19.67 million dollars.) Losers outnumbered gainers 56 to 18 and 52 stocks were unchanged.
The broader all-shares index fell 8.84 points to 1,270.32.
The Philippine peso traded at 53.962 to the dollar at mid-day.
"Garcillano's re-emergence could see political noise once again build up," J.P. Morgan said in a note to clients, warning that "the president's political support has diminished over the course of the past few months and there is growing sense that this erosion is expected to continue."
Investors were also worried about the announcement by the National Statistics Office that the consumer price index rose 7.1 percent year-on-year in November, exceeding forecasts of the central bank.
"High inflation also raises fears of a looming interest rate increase, which is a dampener for the equities market because this would mean higher borrowing rates and limited expansion for companies," said Jonathan Ravelas of Banco de Oro Universal Bank.
Most actively-traded Philippine Long Distance Telephone Co fell 10 pesos to 1,765 pesos.
SM Investments Corp was down one peso at 245 pesos while unit Banco de Oro Universal Bank retreated 50 centavos to 33.50 pesos.
San Miguel Corp A shares, limited to local investors, was unchanged at 64.50 pesos while its B shares, which are available to foreigners, fell 2.50 to 85.50 pesos.
Comments
Comments are closed.