Philippines share prices closed little changed on Tuesday as investors stayed on the sidelines due to renewed political concerns while others took profits after a week-long advance, dealers said.
They said political concerns had flared up again after a staffer of a former aide of President Gloria Arroyo claimed the president had secretly met with election officials to win the May, 2004 elections.
The Philippine Stock Exchange composite index rose 2.16 points to 1,985.09 after trading between 1,978.00 and 1,989.24.
Volume amounted to 222.55 million shares worth 698.5 million pesos (12.4 million dollars.)
The broader all-shares index gained 0.27 point to 1,193.12.
Losers slightly edged out gainers 37 to 35, while 46 stocks ended unchanged.
"The market is going through a consolidation period, and the mood was dreary as political worries weighed on the market," said Ron Rodrigo of Accord Capital Equities.
He said that most shares are now deemed overvalued following last week's strong gains. "Investors are taking a breather.
They are adopting a wait-and-see stance," due to the political developments, said Nina Tinio of Unicapital Securities Inc.
She predicted that the market will likely trade lower for most of the week after coming off a five-week high last Friday.
Arroyo has been battered in recent weeks by opposition charges that she cheated to win the May, 2004 elections, leading to a widespread clamour for her to leave office.
Philippine Long Distance Telephone Co (PLDT) was the most active stock, closing down 5.00 pesos at 1,615 pesos.
Ayala Land Inc gained 10 centavos to 8.20 pesos while parent Ayala Corp fell 2.50 pesos to 3.10 pesos. Ayala unit Bank of the Philippine Islands ended unchanged at 50 pesos.
Metropolitan Bank and Trust Co gained 50 centavos to 28 pesos.
San Miguel Corp A shares, limited to Filipino investors, was unchanged at 69.50 pesos while San Miguel Corp B shares, available to foreigners, ended steady at 100 pesos.