Philippines share prices closed 0.9 percent lower on Friday amid political tension at home and following US Federal Reserve Chairman Ben Bernanke's gloomy assessment of the US economy, dealers said.
They said sentiment was hurt as opposition groups called for a street protest in the financial district of Makati later in the day to press for President Gloria Arroyo's ouster over a corruption scandal. The composite index lost 28.75 points at 3,182.85. The broader all-share index fell 12.38 points to 1,942.66. There were 52 decliners and 32 advancers, while 55 were steady.
Volume reached 680.4 million shares worth 3.0 billion pesos (73.3 million dollars). The peso traded at 40.939 to the dollar. "There is no reason for the market to go up. The political uncertainty is dominating trading," said Rommel Macapagal of Westlink Global Equities.
"We've seen our market go into the opposite direction (Thursday) ... that could go on if these anti-government rallies escalate," he said. Dealers also cited the US stocks downturn after Bernanke warned of more mortgage-related losses at banks. "It is this fundamental news that will certainly spook regional investors who view a US economic slowdown as critical to sustaining expansion in Asian economies," said Francisco Liboro of PCCI Securities.
Philippine Long Distance Telephone fell 55 pesos to 2,935. Globe Telecom lost 20 pesos at 1,550. Ayala Corp gained 2.50 at 457.50 while Ayala Land ended flat at 12.50. San Miguel A fell one peso to 51 while its B shares were down 50 centavos at 51.50 pesos.