Index continues slide on mounting political, economic woes

Stocks closed mixed yesterday in robust trading as bottom picking in blue chips took over, largely ignoring the mounting clamor from all political fronts for President Estrada’s ouster and more telltale signs of a sagging economy.

The main index, however, tumbled 6.71 points or 0.53 percent to end at 1,256.96, pulled down by losses in heavyweight stocks Meralco B, Metrobank, San Miguel Corp. and Ayala Corp.

But on a broader scale, the All-shares index rose 4.37 points or 0.67 percent to 657.09 as the number of advancing stocks more than doubled from Wednesday, led by gains in Canadian Insurers Sun Life and Manulife.

The Phisix actually opened on a downhill trek but soon managed to inch up by mid-session to partially recover lost ground. Advancers trailed decliners, 32 to 42 while 29 issues were unchanged.

The sub-indices likewise ended in different directions with the commercial-industrial and mining sectors in the red; the financial and property counters in positive territory; and the oil index unmoved.

Traders were also healthier with a turnover of P1.0496 billion, almost doubled from the previous day, with Meralco B, San Miguel B, Alliance Global and PLDT leading the most active list.

Save for Meralco B, which lost P2 to P42.50, the top traded stocks closed unchanged. Among the blue chip gainers, meanwhile, were Sun Life and Manulife, advancing by P35 and P10, respectively to P955 and P1,080.

Lopez-owned Benpres Holdings Corp. gained 20 centavos or 8.33 percent to P2.60 as its parent firm Lopez Inc. disclosed it has acquired the right to purchase 91 percent of the outstanding capital stock of dormant mining firm City Resources, paving the way for the planned backdoor entry or one of its affiliates or new ventures.

Gaming stocks BW Resources and Leisure and Resorts World Corp. likewise bounced back from a selloff triggered by the jueteng controversy, winning back their share prices by 14.5 percent and 9.76 percent, respectively. Leisure and Resorts World (formerly Atlas Fertilizer finished at 45 centavos while BW (now known as Fairmont Holdings) closed at 87 centavos.

On the other hand, among the losers were power utility Meralco B, banking giant Metrobank, food and beverage conglomerate San Miguel and electronics maker Music Corp.

San Miguel A shares slipped P1 to P45. It was reported that the Cojuangco-controlled firm was seeking lower tariff on raw materials for its flagship beer products as it was being put at a cost disadvantage against foreign brewers.