Stocks shed 4 points as investors prefer to stay on the sidelines

Stocks weakened for the seventh consecutive day yesterday as investors continue to stay away from the market on worries over the deepening political crisis, despite a sprinkling of positive indicators on the economic front.

The 30-company composite index opened a notch higher but soon cascaded in the red for most of the trading session, ending 4.42 points or 0.32 percent down to 1,381.83. The broader All-Shares index dropped almost seven points or about one percent to 720.69.

But the negative political sentiment swayed what could have been market-moving economic developments in less critical times. After the release of robust third quarter GNP last week, government is set to come out today with tame inflation figures – with prospects of even outperforming targets for the year – following the reduction in overnight rates by the Bangko Sentral ng Pilipinas (BSP) last Friday.

Not even the anticipated year-end window-dressing by the cash-heavy government financial institutions (GFIs) could give the market a lift as turnover was sliced almost half from last Friday, with only P581.028 million worth of shares changing hands.

Advancers trailed losers, 20 to 31, with a larger number of 41 issues unchanged. All counters, except the property sector, fell.

Leading the most active list for the second straight day was the Philippine Deposit Receipts (PDRs) of Globe Telecom, which cornered 18.15 percent of total trades. The stock, which can be availed of by foreigners in exchange for common shares, racked up a series of orders almost by end-session although its price stood steady at P660.

Despite the Ayala-owned telecom unit’s present problems with the National Telecommunications Commission on its cellular phone operations, Globe’s common shares were also heavily traded, ending fixed at P650.

Gaming stocks, which have strung up losses over the past weeks as a result of the jueteng controversy involving President Estrada made a turnaround this time as bargain hunters zeroed in on them.

Among the top gainers were bingo operators Fairmont Holdings and Leisure and Resorts World, as well as jai-alai franchise Belle Corp. Fairmont moved up 11 percent or 14 centavos to P1.42 after it debunked a report a group of investors plan to hold off about P5 billion in equity investments into the company until after the resolution of the gambling scandal in Malacañang.

Belle, meanwhile, rose five centavos to P0.71 after it said the stoppage of jai-alai activities by the Supreme Court "will have no effect on Belle’s financial condition since jai-alai is basically a start-up operation, having commenced during the third quarter of 1999."

"Belle has not derived income or cash flow from its jai-alai-related activities since the start of such operations through the third quarter of 2000," a company statement said. Belle has several property projects to its name, including the controversial Tagaytay Highlands.