Index inches up on last-minute bargain hunting

Share prices inched up 0.2 percent Thursday on last-minute bargain hunting but sentiment remained weighed down by President Joseph Estrada’s corruption trial, brokers said.

The 30-company Philippine Stock Exchange Index ended up 3.67 points, or 0.3 percent, at 1,398.87, following its 2.95-point loss Wednesday.

Turnover reached 150.5 million shares worth P570 million from Wednesday’s 216.50 million shares worth P440.47 million.

Uncertainties surrounding the impeachment trial of President Joseph Estrada on corruption charges and its outcome have discouraged investors from infusing more liquidity into Manila shares, traders said.

Estrada has been charged with bribery, graft, betrayal of public trust and violating the constitution.

"It was very, very lackluster trading," said Diversified Securities President Jose Ricardo Garcia.

"Investors are pretty much resigned to the fact that there won’t be much market movement. For the rest of the year, it will be pretty much status quo," said Garcia.

The bribery charge is the centerpiece of the prosecution’s case and hinges on accusations by Governor Luis Singson, that he channeled some P400-million gambling payoffs to President Estrada. Singson has also accused the President of pocketing P130 million in tobacco tax kickbacks.

Brokers said sentiment was largely driven by political developments on the local front and that the resolution of the fiercely-contested US presidency did not affect trading.

Astro del Castillo of A and A Securities attributed the day’s slight uptick to "bargain hunting at the end of the day" which could be "window dressing by government financial institutions."

"There’s also slow accumulation from foreigners," Del Castillo added.

Gainers led decliners 29 to 14, while 45 issues were unchanged. Philippine Long Distance Telephone Co. shed P5 to P795 while both A and B shares of Manila Electric Co. remained steady at P44 and P44.50.