Philippine stocks closed a shade lower on Monday on worries about possible protests and threats of violence by the opposition as Congress starts its official vote count for president and vice president.
Traders said most investors opted to stay out of the market until they get clearer signs that the vote count of the May 10 elections will proceed smoothly and without delay.
Concerns over world oil prices and a possible US interest rate hike also dampened market sentiment.
The Philippine stock index edged down 3.05 points or 0.21 percent to 1,481.91 points.
Mall developer SM Prime Holdings Inc slid 1.67 percent, or 10 centavos, to 5.90 pesos.
"There is still anxiety over the elections," said Teresa Lee-Jahrling, trader at Tower Securities. "It's the start of the national canvass so investors would like to stay out of the market, that's why volume is so thin."
Turnover fell to 519.8 million pesos ($9.3 million) against Friday's 736.1 million pesos. Losers and gainers were almost in equilibrium, 22 to 21, with 24 issues unchanged.
Congress will meet in a joint session later on Monday and convene as the national board of canvassers to count the votes for president and vice president. The body is expected to approve canvassing rules and start the vote tally on Tuesday, two weeks after the actual elections.
But the opposition said it has planned big protests outside the Congress building as it accused the ruling party of cheating in the elections. The unofficial vote count by a poll watchdog showed President Gloria Macapagal Arroyo leading by a slim margin over opposition candidate, movie actor Fernando Poe. Astro del Castillo, managing director at First Grade Holdings, said there are fears the allegations of poll cheating may delay the proclamation of the country's new president.
Traders said the market will likely stay in a narrow range for the rest of the week as investors continue to be distracted by local political developments and the inflationary impact of higher oil prices.
The country's largest telecoms firm, Philippine Long Distance Telephone Co gained five pesos to 1,005 pesos. The stock accounted for nearly two-thirds of total trade.
Second ranked telco, Globe Telecom Inc, lost five pesos, or 0.62 percent, to 805 pesos.
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