Philippine stocks close flat ahead of presidential address

Philippine stocks close flat ahead of presidential address - UPDATE

	Published : Mon, 23 Jul 2007 06:24 By : Agencies Print this Story

MANILA (Thomson Financial) - Philippine share prices closed flat after thin trading Monday, with investors staying on the sidelines before President Gloria Arroyo delivers her annual address to Congress later in the day, and following the substantial pullback on Wall Street Friday.

The initial public offering of broadcaster GMA Network Inc and the follow-on offering of Philippine National Bank remained in focus, sapping liquidity.

The composite index ended 0.49 point lower at 3,737.79.

The all-share index dropped 2.54 points or 0.1 percent to 2,419.38.

There were 64 decliners and 47 advancers, while 63 stocks were unchanged.

A total of 4.0 billion shares worth 3.1 billion pesos changed hands.

Lawrence de Leon, an analyst at Accord Capital Equities, said: 'The market looks a bit tired and President Arroyo's [state-of-the-nation address] later today gave investors an excuse to stay on the sidelines.'

He said: 'At the same time, the ongoing stock offerings continue to drain market liquidity.'

Arroyo's speech is expected to highlight the achievements of her administration in the past 12 months, but de Leon said investors were more interested in knowing what she intends to do in the remaining three years of her term.

Shares in Philippine Long Distance Telephone Co, the country's biggest company by market value, fell 5.00 pesos or 0.2 percent to 2,685.00 pesos, extending a correction after it hit record highs recently.

Mall operator SM Prime Holdings' stock retreated 50 centavos or 3.8 percent to 12.75 pesos.

Shares in Ayala Land, the country's largest property developer, rose 25 centavos or 1.4 percent to 18.25 pesos.

(1 US dollar = 44.95 pesos)

enrico.delacruz@thomson.com

ed/jm

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Philippine stocks close flat ahead of presidential address - UPDATE