Shares close flat as investors wait for Arroyo's address

MANILA (AFP) - Philippine share prices closed flat in thin trade Monday as investors stayed on the sidelines ahead of President Gloria Arroyo's annual state of the nation address to Congress, dealers said.

An initial public offering from broadcaster GMA Network and the follow-on offering of Philippine National Bank remained in focus, sapping liquidity, they added.

The composite index slipped 0.49 points at 3,737.79 and the all-share index dropped 2.54 points to 2,419.38.

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

Turnover was 4.0 billion shares worth 3.1 billion pesos (69 million dollars).

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

"At the same time, the ongoing stock offerings continue to drain market liquidity."

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

Philippine Long Distance Telephone fell five pesos to 2,685 pesos, extending a correction after it hit record highs recently.

SM Prime Holdings retreated 50 centavos to 12.75 pesos.
Ayala Land, the country's largest property developer, rose 25 centavos to 18.25 pesos.

San Miguel A was unchanged at 74 pesos while San Miguel B fell 50 centavos to 82 pesos.