Shares close 0.14 percent higher due to market sentiment

MANILA (AFP) - Philippine shares closed 0.14 percent higher Wednesday as market heavyweight Philippine Long Distance Telephone snapped a two-day slide to boost market sentiment, dealers said.

The composite index finished up 5.12 points at 3,734.80, after moving in a narrow range of 3,723.86 to 3,746.53.

The all-share index rose 7.22 points to 2,414.70.

There were 73 gainers and 35 losers, while 65 stocks were unchanged.

Turnover reached 3.8 billion shares worth 4.5 billion pesos (99.40 million dollars).

Investors were reluctant to build positions decisively, channeling their funds instead into buying into the initial public offering by broadcaster GMA Network.

Jose Vistan of AB Capital Securities said: "The liquidity drain resulting from a series of stock offerings this month made investors hesitant to trade."

He said domestic political concerns and the fact that the market has not corrected substantially after hitting new highs recently had also discouraged investors from making decisive moves.

Vistan said some investors were worried about what might happen after a court trying former President Joseph Estrada on corruption charges delivers its verdict in the next few weeks. Estrada still has a large following.

Shares in Philippine Long Distance Telephone or PLDT closed five pesos higher at 2,705, tracking the gains Tuesday in its New York-listed American depositary receipts.

Shares in Ayala Corp. rose five pesos to 565.

Manila Electric or Meralco gave up early gains, with the A shares closing flat at 103 pesos and its B shares retreating one peso to 103.

San Miguel A fell one peso to 74 while San Miguel B was steady at 82.50 pesos.