Philippines share prices closed flat on Friday as the market consolidated ahead of the weekend, dealers said. However select stocks led by Banco De Oro Universal Bank, which announced that it was acquiring a substantial stake in rival Equitable PCI Bank, advanced. The Philippine Stock Exchange composite-index fell 2.40 points to 1,975.60 after trading between 1,972.41 and 1,981.69.
Turnover reached 453 million shares worth 1.45 billion pesos (25.92 million dollars). The broader all-shares index advanced 2.84 points to 1,194.25. Losers outnumbered gainers 42 to 29, with 58 stocks unchanged.
"At the end of the day, investor attention has now turned to whether the Supreme Court will lift its suspension on the (value-added tax) law. Political concerns have (deterred) numbed some investors," said James Lago of Westlink Global Equities Inc.
"Investors may be taking advantage of higher prices to cash in their gains on fears that the political uncertainty ahead may weaken the economic prospects for the rest of the year," BPI Securities said in a note to clients. The opposition is mounting an impeachment case to oust President Gloria Arroyo on allegations of election fraud and of links to illegal gambling gangs.
The Supreme Court's suspension last month of a vital expanded VAT needed to control the budget deficit, has also weighed on investor confidence.
SM Investments, the top-traded stock, gained six pesos to 222. SM Investments is the parent company of Banco de Oro which agreed to buy a 24.76 percent stake in Equitable PCI Bank.
Equitable PCI Bank was the market's top gainer, rising 4.50 pesos to 54.50 while Banco de Oro rose two pesos to 32.
"This could pave the way for the merger of the two banks, resulting in a stronger and strongly capitalised bank," said Jose Vistan of AB Capital Securities.
Philippine Long Distance Telephone closed up 10 pesos at 1,635. San Miguel A shares, limited to Filipino investors, were unchanged at 69.50 pesos while San Miguel B shares, available to foreign investors, were also steady at 100 pesos.