PRESS DIGEST - Philippine newspapers - June 24

MANILA, June 24 (Reuters) - These are the leading stories in Manila newspapers on Wednesday. Reuters has not verified these stories.

- Health Secretary Francisco Duque declared a "low level" community outbreak of the influenza A(H1N1) in certain parts of Metro Manila, as the number of confirmed cases neared the 500 mark. (PHILIPPINE DAILY INQUIRER, THE PHILIPPINE STAR)

- Government lawyers asked the Supreme Court to allow the state to sell its 24 percent stake in San Miguel Corp (SMC.PS) to cut losses due to a drop in share prices. (PHILIPPINE DAILY INQUIRER, THE PHILIPPINE STAR, MALAYA, BUSINESSWORLD)

- Senators raised questions over the eligibility and capability of Smartmatic International-Total Information Management Corp, the joint venture that has won the poll automation contract. (THE PHILIPPINE STAR)

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BUSINESS

- Domestic trade transactions, or the flow of commodities through land, water and air transport systems nationwide, dropped 18.9 percent in the first quarter from a year earlier, government data showed. (BUSINESSWORLD, THE MANILA TIMES, MANILA STANDARD TODAY)

- The Philippine central bank said it has entered into discussions with Japan for the possibility of opening a new bilateral currency swap agreement that would supplement the Chiang Mai Initiative. (THE PHILIPPINE STAR)

- Philippine banks have not been aggressive in lowering lending rates despite the series of interest rate cuts implemented by the central bank, opting to remain cautious because of the global economic slowdown, the central bank said. (ALL PAPERS)

($1 = 48.47 Philippine pesos)

(Reporting by Karen Lema)