Market eases ahead of House vote on impeachment complaints

Share prices closed 0.89 percent lower yesterday as investors marked time ahead of a congressional vote on ending impeachment complaints against President Arroyo, dealers said.

They said the upcoming vote and a planned protest march against Mrs. Arroyo today led by former president Corazon Aquino kept the issue of political stability to the fore.

Concerns over the impact of higher oil prices on economic growth and delays in the collection of a new expanded value-added tax (EVAT) law also weighed on sentiment.

The composite index lost 17.36 points to 1,929.02, off a low of 1,920.38. Turnover reached 632.1 million shares worth P1.48 billion.

The broader all-shares index retreated 8.20 points to 1,173.36.

Losers led gainers 47 to 21, with 42 stocks unchanged.

The market closed shortly before the House of Representatives began discussion on a committee ruling last week that threw out all three outstanding impeachment complaints against Mrs. Arroyo, who had been accused of election fraud.

Former Philippines president Corazon Aquino announced yesterday that she would lead an opposition protest march to the House today.

"Investors are taking the view it would be better to stay out of the market given this political uncertainty. There’s also a lack of fresh incentives on the economic front," said Jonathan Ravelas of Banco de Oro Universal Bank.

Concerns over the impact of high oil prices on the economy and the delay in the implementation of the new EVAT law were also hanging over sentiment, dealers added.

The Supreme Court ruled last week that the statute was constitutional but refused to lift a temporary injunction against it pending appeals by the opposition legislators who had challenged the law.

"The market has been very volatile in recent sessions and strong rallies are not likely to be sustained given these concerns," Citiseconline.com analyst Mark Alan Canizares said.

Philippine Long Distance Telephone Co. (PLDT) fell P25 to P1,590.

Top-traded Lepanto Consolidated Mining A, limited to local investors, ended unchanged at 35 centavos. Lepanto B, available to foreign investors, added one centavo to 37 centavos.

SM Investments fell P2 to P208 while unit SM Prime Holdings gained 10 centavos to P7.10.

Ayala Land retreated 10 centavos to P7.70 and parent Ayala Corp. was down P2.50 to P295. – AFP