Market continues to fall on bleak economic prospects

Share prices fell yesterday for a fifth straight day to a new two-year low, dragged down by uncertainty over the country’s economic prospects as international donors began withholding loans because of its failure to meet fiscal targets, traders said.

The composite index lost 5.73 points or 0.45 percent to 1251.23 while the broader All-Shares index gave up 2.56 points or 0.39 percent to 654.52 as trading turned from lackluster to gloomy due to a widespread power outage that forced some offices, even government institutions, to suspend work by noon.

The heaviest losers were gaming issues led by on-line bingo proponent Fairmont Holdings (formerly BW Resources), the mall-based bingo operator Leisure and Resorts World Corp., jai-alai franchisee Belle Corp. and horseracing company Philippine Racing Corp.

The selloff in gaming stocks was triggered by President Estrada’s order to terminate all gaming licenses by the Philippine Amusement and Gaming Corp. (Pagcor) except for the anchor casino business, and eventually turn over Pagcor’s operations to the private sector.

Fairmont, which is now reflected as FAIR at the PSE’s ticker board, wiped off 29 centavos or 33.33 percent from its Thursday’s price to finish at an all-time low of 58 centavos. Aside from endangering its flagship on-line bingo business, the company stands to lose from Pagcor’s privatization since the gaming agency has committed to be its anchor tenant and relocate its headquarters at Fairmont’s soon-to-be completed Sheraton Marina Complex along Roxas Boulevard.

Leisure and Resorts, symbolized as FER at the bourse, retreated 15 percent to 38 centavos; PRC dropped by 13 percent to P2; while Belle slid to 64 centavos.

There were 39 decliners yesterday, including blue chip stocks Meralco B, San Miguel B, SM Prime, Equitable PCI Bank and Sun Life of Canada.

But a handful of advancers, at 26, made their mark as foreign brokers surprisingly remained net buyers for the third consecutive day. Analysts said the foreign fund managers could have been attracted to the cheaper valuations of local stocks but others were saying the foreigners could also be squaring their positions to cover up for their short-selling last week.

Among those that headed north include PLDT (up P5 to P755); ABS-CBN’s PDRs (unchanged to P36.50); Benpres Holdings (up five centavos to P2.65); Metrobank (up P1 to P167); and Manulife (up P10 to P1,090).

Technology stock Music Corp. was likewise a major gainer, adding 30 centavos or 11 percent to P3 as the company prepares plans to tap funds abroad through a separate listing in a foreign bourse, possibly in Singapore or at the US Nasdaq.