Stocks fall sharply as investors await results of impeachment move

Stocks tumbled yesterday on lack of an expected follow-through buying by the government financial institutions (GFIs), as fidgety investors returned to the sidelines as they await the progress of the impeachment move against President Estrada in Congress.

The 30-company composite index dropped 33.01 points or 2.22 percent to 1455.94 while the broader All-Shares barometer slipped by a marginal 0.28 percent to 739.54 due to the pullback in Canadian insurance giants Sun Life and Manulife.

The negative mood prevailed in practically all sub-sectors, with only the mining counter ending flat, as only 90 issues were traded during the day.

Decliners swamped gainers, 55 to 12, with the remaining 24 stocks unchanged. Value turnover likewise thinned down to P694.740 million, from P857.661 million last Friday.

The regional Factors also weighted down on local stocks. The Dow Jones Industrial and tech-heavy Nasdaq indices tumbled last Friday over the uncertainty in the outcome of the US Presidential elections, dragging down with them the markets in Asia including the Philippines.

In addition, the planned nationwide strike today by a wide latitude of groups seeking the oustex of President Estrada further dampened market sentiment, as even trading is expected to grind to a half.

Although the trading halt is not sanctioned by PSE officials, they are not going against it either. Reportedly, sympathetic brokers participating in the strike will take a forced 15-minute break in trading – from 11:30 to 11:45 this morning – when deals are usually at their peak.

Too, the stream of mostly disappointing corporate earnings reports as of the third quarter has hammered even blue chips stocks, most of which either went further in the red or stayed flat.

Telecom giant PLDT, which reported an 82- percent reduction in its nine-month profits, was the heaviest traded stock cornering 35.1 percent of total transactions. However, its price fell P30 to P815.

The First Pacific-controlled company yesterday said there are ongoing exploratory talks between PLDT and the local exchange carrier (LEC) or landline business of Bayentel, its counterpart from the Lopez group for a "potential business collaboration," along with their respective cable TV operators Home Cable and Sky Cable.

But PLDT denied it or any of its companies hold any investment in GMA Network, the rival media station of ABS-CBN, hence discounting any three-way merger discussions that would allegedly spawn the biggest media and telecoms network in the country.

Shares of ABS-CBN, one of the few firms whose net earnings posted double-digit gains this year, went down 50 centavos to P51 while its EDR issue slid P1 to P49.50.