Index Closes With Tiny Gain On Gfis’ Bargain Hunting

The market ended yesterday with a modest gain from last-minute bargain hunting in blue chips by government financial institutions, traders said.

The 30-company Philippine Stock Exchange Index rose 0.16 point to 1,488.95, adding in Thursday’s 10.37-point, or 0.7 percent, rise. The index was down by as much as 1.4 percent early in the session.

"We think it’s government buying, probably ahead of the Saturday prayer rally," said Diversified Securities President Jose Ricardo Garcia.

The broader All-Shares index, meanwhile, fell 6.65 points or 0.89 percent as shares of non-index blue-chips Manulife and Sun Life succumed to profit-taking, mainly as a result of the peso’s recovery.

Although the market steadied in the end, investor sentiment remained largely hinged on the progress of the impeachment move against President Estrada in Congress, along with the growing clamor for him to resign.

Last Monday alone, the stock market went on a fieldday as share prices posted record gains, with investors betting on the President’s downfall following the defections and resignations of key political allies over the extended All Saints Day holiday.

But as indications of Estrada steadfast pronouncement that he would rather face impeachment proceedings than take a "graceful exit" became more evident, the market euphoria soon tapered off and gave rise to a wave of profit taking in the ensuing sessions, tempered only by the suspected buying by government financial institutions (GFIs) thru the foreign brokerage houses.

Among the blue-chip gainers yesterday was San Miguel,which reported a significant 24-percent jump in net income to P5 billion in nine months, sustaining a healthy bottomline due to improvement in cost management, marketing and distribution strategies.

SMC’s A shares rose by P1.50 to P52.50 while its B shares also finished at P52.50, unchanged from the previous day.

Other advancers were Meralco B, up P60 centavos to P47.50; Meralco A, up P2.50 to P49.50; Ayala Land, up 20 centavos to P5.10; ABS-CBN PDRs, up P1.50 to P50.50; and Filinvest Land, up four centavos to P1.34.

Leading the decliners was PLDT, which dropped P30 to P845. Trades in the telecom giant made up a dominant 30 percent of the total P857,315 million turnover.

There were 113 issues traded with mixed results as gainers slightly edged losers, 39 to 35 and another 39 stocks ending flat.