MANILA, Philippines -- Shares may open lower Friday, tracking Wall Street's weakness with credit market concerns and record oil prices fuelling nervousness about the US economy.

President Gloria Arroyo's hasty pardon on Thursday of former President Joseph Estrada a month after he was sentenced to life in prison on corruption charges will likely add to the cautious tone, with interest also sapped by the shortened trading next week.

Manila's financial markets will be closed on Oct. 29, Nov. 1 and Nov. 2 for public holidays. There will be trading on Oct. 30 and 31.

On Thursday, Manila's composite index ended up 4.31 points or 0.1 percent at 3,767.78.

Analysts said the latest political development may disappoint investors who had wanted the government to address corruption.

"It's a disappointment, but I think it won't have an immediate impact on the market. At the end of the day, if the pardon will lead to more (political) stability, well and good," said Francisco Liboro, president of PCCI Securities.

"I don't think it came as a surprise. I think the market's initial reaction will be muted," said Jose Vistan, research director at AB Capital Securities.

Investors have learned to ignore negative political developments in this Southeast Asian country, whose image has been tarnished by corruption scandals and political upheavals in the last five decades.

The Philippine Stock Exchange's main index hit a fresh record early this month and the peso has climbed to seven-year highs against the dollar.

"The market has always been focused on the economy and it shouldn't be distracted by this (political setback)" Liboro said. "I think it won't impact much on the market. There won't be a big selloff."

Investors are likely to shift focus on second-liners and select mining stocks, especially with prices of base metals rallying on renewed supply concerns.

Gold prices jumped as oil rallied and the US dollar sank on expectations that the Federal Reserve will cut its federal funds target rate on Oct. 31. The most-active December gold surged $5.40 to $771.00 an ounce on the New York Mercantile Exchange.

($1 = P44.04)