Modest bargain-hunting gives market slight boost

Share prices closed 0.23 percent higher yesterday on modest bargain-hunting after a sharp two-day fall sparked by political concerns and record oil prices, dealers said.

They said, however, that the gains would likely be shortlived in the face of possible political instability sparked by allegations of vote rigging and corruption against President Gloria Arroyo and members of her family.

How the economy fares under the pressure of record oil prices is a long-term issue which could easily derail economic policy.

The Philippine Stock Exchange (PSE) composite index rose 4.53 points to 1,958.62, having traded between 1,951.83 and 1,961.45. Volume was 532 million shares worth P817 million.

Gainers beat losers 37 to 14, with 63 stocks unchanged.

"The concern really is oil prices on a global perspective. On the domestic side, it continues to be politics," said Nestor Aguila of DA Market Securities.

He said the investor outlook on the Philippines has turned less optimistic and that the trading orientation is short-term in light of recent political developments.

"As far as corporate earnings are concerned, we’re still intact," Aguila added.

President Arroyo is beset with accusations she rigged last year’s polls and that her son and brother-in-law had accepted bribes from illegal gambling operators.

Congress is holding public inquiries into the allegations, adding to the already volatile political situation amid persistent reports of coup threats.

Philippine Long Distance Telephone Co. (PLDT) was the most active stock, adding five to P1,615.

Ayala Corp. rose P2.50 to P332.50.

Philippine National Bank (PNB) was up P1 to P43 while Equitable PCI Bank was up 50 centavos to P49.50 .

A shares of San Miguel, limited to Filipino investors, were unchanged at P59, while San Miguel B, available to foreign investors, ended steady at P92.

Political concerns gripping the country remain a concern, said DA Market Securities President Nestor Aguila.

Congressional hearings started Tuesday on alleged wiretapped conversations between President Gloria Macapagal Arroyo and an election official on plans to rig last year’s election. Arroyo said she will comment on the wiretapped recordings at the "appropriate time," even as her office insisted they were illegally acquired and doctored.

"There’s still uncertainty with all these events happening, and it’s pressuring the market," said Aguila. "Investors are very cautious. We’re not taking in too many shares, since we may not be able to unload them when things turn against us." – AFP, AP