Stocks fall 3 pts as investors eye Estrada’s trial

Share prices tumbled yesterday in listless trading as investors exercised caution as the impeachment trial of President Estrada unfolds, traders said.

The 30-company Philippine Stock Exchange Index slipped 2.95 points, or 0.2 percent, to 1,395.20 after gaining 4.44 points, or 0.3 percent, Tuesday.

Turnover volume fell to 216.50 million from Tuesday’s 284.43 million on shares worth P440.47 million.

Weighing on the index was blue chip Ayala Corp., which fell 10 centavos to P7.10.

Decliners led gainers 39 to 21, while 35 issues were unchanged.

BPI Securities Assistant Vice President Spencer Yap said many investors have opted to stay away from the market until the conclusion of the impeachment trial.

"Investors don’t really know what’s going to happen at the end of the trial, so they just want to get over that hump first before committing more funds to the market," he said.

Estrada is facing an impeachment trial on charges of bribery, graft, betrayal of public trust and violating the Constitution.

The bribery charge hinges on allegations by Governor Luis Singson that he channeled more than P400 million in payoffs from illegal gambling to President Estrada.

Yap said as the impeachment trial unfolds, investors prefer to keep their market positions short and take advantage of volatility to reap short-term gains.

Window-dressing by some fund managers closing their books for 2000 could boost Manila shares toward the end of the year, he said.

"But the rise is going to be temporary," he added.

Other active stocks included Fairmont Holdings, which fell eight centavos to P1.06. Benpres slipped five centavos to P2.65, while Metropolitan Bank gained P2 to end at P170.

"Everything is wait-and-see," Enrique Santa Ana of Vickers Ballas Securities Philippines said. "I think the market is waiting to see whether there is something explosive from the Singson testimony."

"Tomorrow’s (today’s) market will depend on developments in the impeachment trial later today," Santa Ana said.

Benpres Holdings Corp. was down five centavos at P2.65 while Manila Electric Co. B shares shed 50 centavos at P44.50. Its A shares were down P1 at P44.